Laguna Hills City Council
June 28, 2022

House will use the funds to provide for the salaries and benefits of outreach workers, support staff, and client services such as transportation assistance.

The purpose of this program is to conduct outreach and engagement with the goal of placing homeless or unsheltered individuals residing or encountered in Laguna Hills into housing. Outreach workers from Mercy House partner with law enforcement, City staff, and local non-profits to conduct field surveys, provide case management services, and provide rehoming services designed to return homeless individuals to a place of residence when possible. Mercy House staff conduct field visits in conjunction with the OC Sheriff’s Department for safety purposes and track the number of individuals receiving outreach services and assistance. A detailed list of Mercy House’s outreach services scope of work is provided in Exhibit A to Attachment A. Mercy House will be operating in the south SPA and providing similar homeless outreach program services next fiscal year to the cities of Laguna Niguel, Lake Forest, Mission Viejo, Rancho Santa Margarita, and San Juan Capistrano. Staff is supportive of Mercy House’s regional outreach program, which helps the City address the community's outreach services need.

FISCAL IMPACT:

The total not-to-exceed cost to fund part-time outreach homelessness services for the next fiscal year is $59,861. There are no anticipated funds from County of Orange to offset some of this cost at this time. Staff established a budget of $26,130 in FY 2022/2023 for Mercy House’s services which factored in funding assistance from the County of Orange.

A budget amendment is required to fund the cost of providing continued, uninterrupted homeless outreach services through Mercy House for FY 2022/2023 in the total amount of $59,861.

ATTACHMENTS:
• Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers

4.11 Packet Pg. 264
1694076.1
1 CONSULTING SERVICES AGREEMENT
Mercy House Living Centers
(Homeless Outreach Services FY 2022-2023)
THIS CONSULTING SERVICES AGREEMENT (hereinafter “Agreement”) is made and entered into, to be effective this 1st day of July 2022, by and between the CITY OF LAGUNA HILLS, a municipal corporation organized and existing under the laws of the State of California (hereinafter referred to as “City”), and MERCY HOUSE LIVING CENTERS, a California nonprofit public benefit corporation, with its principal place of business located at P.O. Box 1905, Santa Ana, California 92702 (hereinafter referred to as “Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and are hereinafter collectively referred to as the “Parties.”

RECITALS
A. City has determined that there is a need to continue to retain the services of a qualified consultant that specializes in providing housing and comprehensive supportive services for a variety of homeless populations by implementing a regional, coordinated approach to implementing homeless outreach services in an effort to end the cycle of homelessness for those who enter their system of care and by providing homeless outreach consulting services to public entities (the “Project”).

B. Consultant has submitted to City a written proposal, dated June 14, 2022, to provide continued, uninterrupted homeless outreach services to City for the Project, pursuant to the terms of this Agreement.

C. Consultant represents and maintains that it is uniquely qualified by virtue of its experience, training, education, reputation, and expertise to provide these services to City for the Project and has agreed to provide such services as provided herein. City does not have the personnel, technical expertise, or experience able to perform the work and services contracted for herein.

D. City desires to retain Consultant to provide such homeless outreach services for the Project.

NOW, THEREFORE, in consideration of the promises and mutual obligations, covenants, and conditions contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. SERVICES OF CONSULTANT

1.1 Scope of Services and Standard of Performance. In compliance with all terms and conditions of this Agreement, Consultant agrees to provide and perform homeless outreach services for the Project as described and as set forth in Consultant’s Proposal/Scope of Work,

ATTACHMENT A

4.11.a
Packet Pg. 265 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
2 dated June 14, 2022, which is attached hereto as Exhibit “A” and is incorporated herein by reference (hereinafter referred to as the “Scope of Services,” the “Services” or “Work”). As a material inducement to the City entering into this Agreement, Consultant acknowledges and understands that the Services and Work contracted for under this Agreement require specialized skills and abilities and that, consistent with this understanding, Consultant’s Services and Work shall be performed in a skillful and competent manner and shall be held to a standard of quality and workmanship prevalent in the industry for such Services and Work and with the standards recognized as being employed by professionals in the same discipline in the State of California.

Consultant represents and warrants that it is skilled in the professional discipline necessary to perform the Services and Work and that it holds the necessary skills and abilities to satisfy the standard of work as set forth in this Agreement. Consultant represents and warrants that it and all of its employees, subconsultants and subcontractors providing any Work or Services under this Agreement shall have sufficient skill and experience to perform the Work or Services assigned to them. All Services and Work shall be completed to the reasonable satisfaction of the City.

1.2 Contract Documents. The Agreement between the Parties shall consist of the following: (1) this Agreement; and, (2) the Consultant’s signed, original June 14, 2022 cover letter and proposal/scope of services submitted to the City (“Consultant’s Proposal”), which shall all be referred to collectively hereinafter as the “Contract Documents.” The Consultant’s Proposal, attached hereto as Exhibit “A,” is hereby incorporated by reference and is made a part of this Agreement. All provisions of the Contract Documents shall be binding on the Parties.

Should any conflict or inconsistency exist in the Contract Documents, the conflict or inconsistency shall be resolved by applying the provisions in the highest priority document, which shall be determined in the following order of priority: (1st) the terms of this Agreement; and, (2nd) the provisions of the Consultant’s Proposal.

1.3 Compliance with Law. Consultant shall comply at all times during the term of this Agreement with all applicable federal, state, and local laws, statutes, and ordinances and all lawful orders, rules, and regulations promulgated thereunder, including without limitation all applicable fair labor standards and Cal/OSHA requirements. Consultant shall keep itself fully informed of and in compliance with all local, state, and federal laws, rules, and regulations in any manner affecting the performance of the Work and Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with performing the Work and Services. If Consultant performs any Work or Services in violation of such laws, rules, and regulations, Consultant shall be solely responsible for all penalties and costs arising therefrom. Consultant shall defend, indemnify, and hold City, its officials, officers, employees, agents and volunteers, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules, or regulations.

1.4 Licenses, Permits, Fees, and Assessments. Prior to performing any Services or Work hereunder Consultant shall obtain all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession and perform the Work and Services required by this Agreement. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement

ATTACHMENT A

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Packet Pg. 266 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
3 and any extension, any license, permit, qualification, or approval that is legally required for Consultant to perform the Work and Services under this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant's performance of the Work and Services required by this Agreement, and shall defend, indemnify, and hold the City, its officials, officers, employees, agents and volunteers, free and harmless from and against any claim or liability arising out of any failure or alleged failure to obtain such license, permits, and approvals of whatever nature that are legally required to perform the Work or Services.

1.5 Familiarity with Work. By executing this Agreement, Consultant represents and warrants that it (a) has thoroughly investigated and considered the Scope of Work or Services to be performed, (b) has carefully considered how the Services should be performed and has carefully examined the location or locations at or with respect to where such Services or Work is to be performed, and (c) fully understands the facilities, difficulties, and restrictions attending performance of the Services under this Agreement.

1.6 Care of Work. Consultant shall adopt reasonable methods during the term of the Agreement to furnish continuous protection to the Work and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Work by the City, except such losses or damages as may be caused by City's own negligence.

1.7 Further Responsibilities of Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement.

1.8 Additional Services. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services (Exhibit “A”) or make changes by altering, adding to, or deducting from such Work. No such extra work may be undertaken unless a written order is first given by the City to the Consultant, incorporating therein any adjustment in (i) the Maximum Contract Amount, as defined below, and/or (ii) the time to perform this Agreement, which adjustments are subject to the written approval of the Consultant. It is expressly understood by Consultant that the provisions of this section shall not apply to the Work and Services specifically set forth in the Scope of Services or reasonably contemplated therein, regardless of whether the time or materials required to complete any Work or Service identified in the Scope of Services exceeds any time or material amounts or estimates provided therein.

1.9 Non-Exclusive Agreement. Consultant acknowledges that City may enter into agreements with other contractors, consultants, or vendors for services similar to the services that are the subject of this Agreement. Consultant further acknowledges that City may have its own employees perform services similar to the services that are the subject of this Agreement.

ATTACHMENT A

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Packet Pg. 267 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
4 2. COMPENSATION

2.1 Maximum Contract Amount. For the Services and Work rendered pursuant to this Agreement, Consultant shall be compensated by City for the services performed, including authorized reimbursements, in accordance with the payment schedule set forth in the Schedule of Compensation/Fees, which is attached hereto as Exhibit “A” and is incorporated herein by reference, but not exceeding Fifty-Nine Thousand Eight Hundred Sixty-One Dollars ($59,861)(hereinafter referred to as the "Maximum Contract Amount"), except as may be provided pursuant to Section 1.8 above. The method of compensation shall be as set forth in Exhibit “A”. Compensation for necessary expenditures for reproduction costs, telephone expenses, and transportation expenses must be approved in advance by the Contract Officer designated pursuant to Section 4.2 and will only be approved if such expenses are also specified in the Schedule of Compensation/Fees. The maximum amount of City’s payment obligation under this Agreement is the amount specified in this section.

2.2. Method of Payment. Unless some other method of payment is specified in the Schedule of Compensation/Fees (Exhibit “A”), in any month in which Consultant wishes to receive payment, no later than the tenth (10th) working day of such month, Consultant shall submit to the City, in a form approved by the City’s Finance Director, an invoice for services rendered prior to the date of the invoice. Such requests shall be based upon the amount and value of the services performed by Consultant and accompanied by such reporting data including an itemized breakdown of all costs incurred and tasks performed during the period covered by the invoice, as may be required by the City. City shall use reasonable efforts to make payments to Consultant within forty-five (45) days after receipt of the invoice or a soon thereafter as is reasonably practical.

2.3 Changes in Scope. In the event any change or changes in the Scope of Services is requested by the City, the Parties shall execute a written amendment to this Agreement, setting forth with particularity all terms of such amendment, including, but not limited to, any additional professional fees. An amendment may be entered into: (a) to provide for revisions or modifications to documents or other work product or work when documents or other work product or work is required by the enactment or revision of law subsequent to the preparation of any documents, other work product, or work; and/or (b) to provide for additional services not included in this Agreement or not customarily furnished in accordance with generally accepted practice in Consultant’s profession.

2.4 Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefore by the Laguna Hills City Council for each fiscal year covered by the Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the City.

3. SCHEDULE OF PERFORMANCE

3.1 Time of Essence. Time is of the essence in the performance of this Agreement.

The time for completion of the services to be performed by Consultant is an essential condition of this Agreement. Consultant shall prosecute regularly and diligently the Work of this Agreement according to the agreed upon Schedule of Performance.

ATTACHMENT A

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Packet Pg. 268 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
5 3.2 Schedule of Performance. Consultant shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the Schedule of Performance, which is attached hereto as Exhibit “A” and is incorporated herein by reference. When requested by Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer; however, the City shall not be obligated to grant such an extension.

3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant (financial inability excepted), including, but not limited to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, pandemics, quarantine restrictions, riots, strikes, freight embargoes, wars, and/or acts of any governmental agency, including the City, if Consultant, within ten (10) days of the commencement of such delay, notifies the City Manager in writing of the causes of the delay. The City Manager shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the judgment of the City Manager such delay is justified. The City Manager's determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant's sole remedy being extension of the Agreement pursuant to this section.

3.4 Term. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall continue in full force and effect for a period of one year, commencing on July 1, 2022, and ending on June 30, 2023, unless extended by mutual written agreement of the Parties.

4. COORDINATION OF WORK

4.1 Representative of Consultant. The following principal of Consultant is hereby designated as being the principal and representative of Consultant authorized to act in its behalf with respect to the Services to be performed under this Agreement and make all decisions in connection therewith: Larry Haynes, Executive Director. It is expressly understood that the experience, knowledge, education, capability, expertise, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the Work or Services performed hereunder. The foregoing principal may not be changed by Consultant without prior written approval of the Contract Officer.

4.2 Contract Officer. The Contract Officer shall be such person as may be designated by the City Manager of City, and is subject to change by the City Manager. It shall be the Consultant's responsibility to ensure that the Contract Officer is kept fully informed of the progress of the performance of the Services, and the Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer

ATTACHMENT A

4.11.a
Packet Pg. 269 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
6 shall have authority to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

4.3 Prohibition Against Subcontracting or Assignments. The experience, knowledge, capability, expertise, and reputation of Consultant, its principals and employees, were a substantial inducement for City to enter into this Agreement. Therefore, Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, voluntarily or by operation of law, without the prior written consent of City.

Consultant shall not contract with any other entity to perform the Services required without prior written consent of City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to City for the acts and omissions of its subcontractor(s) in the same manner as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the Work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant.

4.4 Independent Contractor.

A. The legal relationship between the Parties is that of an independent contractor, and nothing herein shall be deemed to make Consultant a City employee. During the performance of this Agreement, Consultant and its officers, employees, and agents shall act in an independent capacity and shall not act as City officers or employees. Consultant will determine the means, methods and details of performing the Sevices subject to the requirements of this Agreement. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City nor any of its officials, officers, employees, agents or volunteers shall have control over the conduct of Consultant or any of its officers, employees, or agents, except as set forth in this Agreement. Consultant, its officers, employees or agents, shall not maintain a permanent office or fixed business location at City’s offices. City shall have no voice in the selection, discharge, supervision, or control of Consultant’s officers, employees, representatives or agents or in fixing their number, compensation, or hours of service. Consultant shall pay all wages, salaries, and other amounts due its employees in connection with the performance of Services under this Agreement and shall be responsible for all reports and obligations respecting them, including but not limited to social security income tax withholding, unemployment compensation, workers’ compensation, and other similar matters. City shall not in any way or for any purpose be deemed to be a partner of Consultant in its business or otherwise a joint venturer or a member of any joint enterprise with Consultant.

B. Consultant shall not incur or have the power to incur any debt, obligation, or liability against City, or bind City in any manner.

C. No City benefits shall be available to Consultant, its officers, employees, or agents, in connection with the performance of any Work or Services under this Agreement.

Except for professional fees paid to Consultant as provided for in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for the performance of any Work or Services under this Agreement. City shall not be liable for compensation or indemnification to

ATTACHMENT A

4.11.a
Packet Pg. 270 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
7 Consultant, its officers, employees, or agents, for injury or sickness arising out of performing any Work or Services hereunder. If for any reason any court or governmental agency determines that the City has financial obligations, other than pursuant to Section 2 and Subsection 1.8 herein, of any nature relating to salary, taxes, or benefits of Consultant’s officers, employees, representatives, agents, or subconsultants or subcontractors, Consultant shall defend, indemnify, and hold harmless City from and against all such financial obligations.

4.5 PERS Eligibility Indemnification.

A. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing any Work or Services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employee Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

B. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing any Work or Services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

5. INSURANCE

5.1 Compliance with Insurance Requirements. Consultant shall obtain, maintain, and keep in full force and effect during the term of this Agreement, at its sole cost and expense, and in a form and content satisfactory to City, all insurance required under this section.

Consultant shall not commence any Work or Services under this Agreement unless and until it has provided evidence satisfactory to City that it has secured all insurance required under this section. If Consultant’s existing insurance policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.

5.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement, and without limiting the indemnity provisions set forth in this Agreement, Consultant shall obtain and maintain in full force and effect during the term of this Agreement, including any extension thereof, the following policies of insurance:

A. Commercial General Liability Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Commercial General Liability Insurance written on an occurrence basis with limits of at least one million dollars ($1,000,000.00) per occurrence, two million dollars ($2,000,000.00) in the general aggregate, and one million dollars ($1,000,000.00) for products and completed operations.

ATTACHMENT A

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Packet Pg. 271 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
8 Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement.

B. Automobile Liability Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Automobile Liability Insurance written on a per occurrence basis with limits of at least one million dollars ($1,000,000.00) combined limit for each occurrence covering bodily injury and property damage. The policy shall specifically include coverage for owned, non-owned, leased, and hired automobiles.

C. Workers’ Compensation Insurance. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Workers’ Compensation Insurance in at least the minimum statutory amounts, and in compliance with all other statutory requirements, as required by the State of California. Consultant agrees to waive and obtain endorsements from its workers’ compensation insurer waiving all subrogation rights under its workers’ compensation insurance policy against the City, its officials, officers, employees, agents and volunteers, and to require each of its subconsultants and subcontractors, if any, to do likewise under their workers’ compensation insurance policies. Consultant shall obtain and maintain, in full force and effect throughout the term of this Agreement, a policy of Employer’s Liability Insurance written on a per occurrence basis with limits of at least one million dollars ($1,000,000.00) per accident for bodily injury or disease.

5.3 Acceptability of Insurers. Insurance required by this section shall be issued by a licensed company authorized to transact business in the state by the Department of Insurance for the State of California with a current rating of A-:VII or better (if an admitted carrier), or a current rating of A:X or better (if offered by a non-admitted insurer listed on the State of California List of Approved Surplus Lines Insurers (LASLI), by the latest edition of A.M. Best’s Key Rating Guide, except that the City will accept workers’ compensation insurance from the State Compensation Fund. In the event the City determines that the Work or Services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the City. Consultant shall immediately substitute any insurer whose A.M. Best rating drops below the levels specified herein.

5.4 Insurance Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for written approval. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:

A. The policy or policies of insurance required by this section for Commercial General Liability and Automobile Liability Insurance shall be endorsed to provide the following:

ATTACHMENT A

4.11.a
Packet Pg. 272 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
9 1. Additional Insured: The City, its officials, officers, employees, agents and volunteers, shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement; and

2. Additional Insured Endorsements: Additional insured endorsements shall not (1) be restricted to “ongoing operations”, (2) exclude “contractual liability”, (3) restrict coverage to “sole” liability of Consultant, or (4) contain any other exclusions contrary to the Agreement; and, the coverage shall contain no special limitations on the scope of protection afforded to additional insureds.

3. Notice: The policy or policies of insurance required by this section for Commercial General Liability and Automobile Liability Insurance shall be endorsed to state that coverage shall not be suspended, voided, cancelled, or modified, or reduced in coverage or in limits, except after thirty (30) days prior written notice by First Class U.S. Mail, postage-prepaid, has been provided to the City. Notwithstanding the foregoing, if coverage is to be suspended, voided, or cancelled because of Consultant’s failure to pay the insurance premium, the notice provided to City shall be by ten (10) days prior written notice.

B. For all policies of Commercial General Liability Insurance, Consultant shall provide endorsements for ongoing operations and completed operations to effectuate this requirement.

5.5 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City in advance and shall protect the City, its officials, officers, employees, agents and volunteers, in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or selfinsured retention.

5.6 Primary and Non-Contributing Insurance. All policies of Commercial General Liability Insurance and Automobile Liability Insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents or volunteers, shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

5.7 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability Insurance shall contain or be endorsed to waive subrogation against the City, its officials, officers, employees, agents and volunteers, or shall specifically allow Consultant or others providing insurance evidence in compliance with the requirements set forth in this section to waive their right to recovery prior to a loss. Consultant hereby agrees to waive its own right of recovery against the City, its officials, officers, employees, agents and volunteers, and Consultant hereby agrees to require similar written express waivers and insurance clauses from each of its subconsultants or subcontractors.

5.8 Evidence of Coverage. Concurrently with the execution of the Agreement, Consultant shall deliver certificates of insurance together with original endorsements affecting each of the insurance policies required by this section. Required insurance policies shall not be

ATTACHMENT A

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Packet Pg. 273 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
10 in compliance if they include any limiting provision or endorsement that has not been submitted to the City for written approval. The certificates of insurance and original endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. Consultant shall promptly furnish, at City’s request, copies of actual policies including all declaration pages, endorsements, exclusions and any other policy documents City requires to verify coverage.

5.9 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this section are not intended as a limitation on coverage, limits, or other requirements, or a waiver of any coverage normally provided by any insurance. Nothing in this section shall be construed as limiting in any way the indemnification provision contained in this Agreement, or the extent to which Consultant may be held responsible for payments of damages to persons or property.

5.10 Enforcement of Agreement (Non-Estoppel). Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of any noncompliance with any of the insurance requirements set forth in this section imposes no additional obligation on the City nor does it waive any rights hereunder.

5.11 Insurance for Subconsultants. Consultant shall either: (1) include all subconsultants or subcontractors engaged in any Work or Services for Consultant relating to this Agreement as additional named insureds under the Consultant’s insurance policies; or (2) Consultant shall be responsible for causing its subconsultants or subcontractors to procure and maintain the appropriate insurance in compliance with the terms of the insurance requirements set forth in this section, including adding the City, its officials, officers, employees, agents and volunteers, as additional insureds to their respective policies. All policies of Commercial General Liability Insurance provided by Consultant’s subconsultants or subcontractors performing any Work or Services related to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers, as additional insureds. Consultant shall not allow any subconsultant or subcontractor to commence any Work or Services relating to this Agreement unless and until it has provided evidence satisfactory to City that the subconsultant or subcontractor has secured all insurance required under this section.

5.12 Other Insurance Requirements. The following terms and conditions shall apply to the insurance policies required of Consultant pursuant to this Agreement:

A. Consultant shall provide immediate written notice to City if (1) any of the insurance policies required herein are terminated, cancelled or suspended, (2) the limits of any of the insurance coverages required herein are reduced, or (3) the deductible or self-insured retention is increased.

ATTACHMENT A

4.11.a
Packet Pg. 274 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) 1694076.1
11 B. All insurance coverage and limits provided by Consultant and available or applicable to this Agreement are intended to apply to each insured, including additional insureds, against whom a claim is made or suit is brought to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations shall limit the application of such insurance coverage.

C. None of the insurance coverages required herein will be in compliance with the requirements of this section if they include any limiting endorsement which substantially impairs the coverages set forth herein (e.g., elimination of contractual liability or reduction of discovery period), unless the endorsement has first been submitted to the City and approved in writing.

D. Certificates of insurance will not be accepted in lieu of required endorsements, and submittal of certificates without required endorsements may delay commencement of the Project. It is Consultant’s obligation to ensure timely compliance with all insurance submittal requirements as provided herein.

E. Consultant agrees to ensure that subconsultants and subcontractors, if any, and any other parties involved with the Project who are brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage required of Consultant.

Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section.

Consultant agrees that upon request, all agreements with subcontractors and others engaged in the Project will be submitted to the City for review.

F. Consultant agrees to provide immediate written notice to City of any claim, demand or loss against Consultant arising out of the Work or Services performed under this Agreement and for any other claim, demand or loss which may reduce the insurance available to pay claims, demands or losses arising out of this Agreement.

6. INDEMNIFICATION
To the fullest extent permitted by law, Consultant shall defend (at Consultant’s sole cost and expense with legal counsel reasonably acceptable to City), indemnify, protect, and hold harmless City, its officials, officers, employees, agents and volunteers (collectively the “Indemnified Parties”), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses including legal costs and attorney fees (collectively “Claims”), including but not limited to Claims arising from injuries to or death of persons (Consultant’s employees included), for damage to property, including property owned by City, or from any violation of any federal, state, or local law or ordinance, which Claims arise out of, pertain to, or are related to Consultant’s performance under this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit Consultant’s indemnification obligation or other liability hereunder.

ATTACHMENT A

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12 7. REPORTS AND RECORDS

7.1 Accounting Records. Consultant shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement.

Consultant shall keep such books and records as shall be necessary to properly perform the Services required by this Agreement and to enable the Contract Officer to evaluate the performance of such Services. The Contract Officer shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

7.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the Services required by this Agreement as the Contract Officer shall require.

7.3 Ownership of Documents. All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be promptly delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of the documents and materials hereunder.

7.4 Release of Documents. All drawings, specifications, reports, records, documents, and other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer. All information gained by Consultant in the performance of this Agreement shall be considered confidential and shall not be released by Consultant without City’s prior written authorization.

7.5 Audit and Inspection of Records. After receipt of reasonable notice and during the regular business hours of City, Consultant shall provide City, or other agents of City, such access to Consultant’s books, records, payroll documents, and facilities as City deems necessary to examine, copy, audit, and inspect all accounting books, records, work data, documents, and activities directly related to Consultant’s performance under this Agreement. Consultant shall maintain such books, records, data, and documents in accordance with generally accepted accounting principles and shall clearly identify and make such items readily accessible to such parties during the term of this Agreement and for a period of three (3) years from the date of final payment by City hereunder.

8. ENFORCEMENT OF AGREEMENT

8.1 California Law and Venue. This Agreement shall be construed and interpreted both as to validity and as to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Orange, State of California, or any other appropriate court in such County, and Consultant covenants and agrees

ATTACHMENT A

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13 to submit to the personal jurisdiction of such court in the event of such action.

8.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Parties.

Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting Party, shall not be employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.

8.3 Termination. City may terminate this Agreement for any reason, with or without cause, upon giving Consultant thirty (30) days written notice. Upon such notice, City shall pay Consultant for Services performed through the date of termination. Upon receipt of such notice, Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. Thereafter, Consultant shall have no further claims against the City under this Agreement. Upon termination of the Agreement pursuant to this section, Consultant shall submit to the City an invoice for work and services performed prior to the date of termination. In addition, Consultant reserves the right to terminate this Agreement at any time upon sixty (60) days written notice to the City, except that where termination is due to material default by the City, the period of notice may be such shorter time as the Consultant may determine.

8.4 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. Any waiver by the Parties of any default or breach of any covenant, condition, or term contained in this Agreement, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by the Parties to require exact, full, and complete compliance with any of the covenants, conditions, or terms contained in this Agreement be construed as changing the terms of this Agreement in any manner or preventing the Parties from enforcing the full provisions hereof.

8.5 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

8.6 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.

8.7 Attorneys’ Fees. In the event any dispute between the Parties with respect to this Agreement results in litigation or any non-judicial proceeding, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to recover from the non-prevailing Party all reasonable costs and expenses, including but not limited to reasonable attorneys’ fees,

ATTACHMENT A

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14 expert witness fees, court costs and all fees, costs, and expenses incurred in any appeal or in collection of any judgment entered in such proceeding. To the extent authorized by law, in the event of a dismissal by the plaintiff or petitioner of the litigation or non-judicial proceeding within thirty (30) days of the date set for trial or hearing, the other Party shall be deemed to be the prevailing Party in such litigation or proceeding.

9. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

9.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by the City or for any amount which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

9.2 Conflict of Interest. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his or her financial interest or the financial interest of any corporation, partnership, or association in which they are, directly or indirectly, interested in violation of any state statute or regulation. Consultant represents and warrants that it has not paid or given and will not pay or give any third party any money or other consideration in exchange for obtaining this Agreement.

9.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of race, disability, medical condition, religion, color, sex, sexual orientation, age, marital status, ancestry, or national origin. Consultant shall ensure that applicants are employed, and that employees are treated during their employment, without regard to their race, disability, medical condition, religion, color, sex, sexual orientation, age, marital status, ancestry, or national origin. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

10. MISCELLANEOUS PROVISIONS

10.1 Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered, sent by registered or certified mail, postage prepaid, return receipt requested, or delivered or sent by facsimile with attached evidence of completed transmission, and shall be deemed received upon the earlier of (i) the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) five (5) business days after the date of posting by the United States Post Office if by mail; or (iii) when sent if given by facsimile. Notices or other communications shall be addressed as follows:

ATTACHMENT A

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15 To City: City of Laguna Hills
Attention: City Manager
24035 El Toro Road
Laguna Hills, California 92653
Telephone: (949) 707-2600
Facsimile: (949) 707-2633

To Consultant: Mercy House Living Centers
Attention: Larry Haynes, Executive Director
P.O. Box 1905
Santa Ana, California 92702
Telephone: (714) 836-7188
Facsimile: (714) 836-7901

10.2 Entire Agreement. This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, arrangements, agreements, representations, and understandings, if any, made by or among the Parties with respect to the subject matter hereof.

No amendments or other modifications of this Agreement shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees.

10.3 Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be determined to be invalid by a final judgment or decree of a court of competent jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the reminder of that provision, or the remaining provisions of this Agreement unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

10.4 Successors in Interest. This Agreement shall be binding upon and inure to the benefit of the Parties’ successors and assignees.

10.5 Third Party Beneficiary. Nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party hereto.

10.6 Recitals. The above-referenced Recitals are hereby incorporated into the Agreement as though fully set forth herein and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.

10.7 Corporate Authority. Each of the undersigned represents and warrants that (i) the Party for which he/she is executing this Agreement is duly authorized and existing, (ii) he/she is duly authorized to execute and deliver this Agreement on behalf of the Party for which he/she is signing, (iii) by so executing this Agreement, the Party for which he/she is signing is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not

ATTACHMENT A

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16 violate any provision of any other Agreement to which the Party for which he/she is signing is bound.

10.8 Labor Code Requirements.

A. Prevailing Wages. Consultant is aware of the requirements of California labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Work or Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Work or Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

The foregoing indemnity shall survive termination of this Agreement.

B. DIR Registration. If the Work or Services are being performed as part of an applicable "public works" or "maintenance" project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations ("DIR"). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Contractor's sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. [SIGNATURES ON NEXT PAGE]

ATTACHMENT A

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17 IN WITNESS WHEREOF, the Parties have executed and entered into this Agreement as of the date first written above.
“CITY”
City of Laguna Hills,
a California municipal corporation

DAVE WHEELER,
Mayor
ATTEST:
(SEAL)

MELISSA AU-YEUNG,
Deputy City Manager/City Clerk
APPROVED AS TO FORM:

GREGORY E. SIMONIAN,
City Attorney
“CONSULTANT”
Mercy House Living Centers,
a California nonprofit public benefit
corporation
By:

LARRY HAYNES, President
By:

PATTI LONG, Chief Financial Officer

ATTACHMENT A

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EXHIBIT “A”
CONSULTANT’S PROPOSAL
DATED: JUNE 14, 2022

INCLUDING,

COVER LETTER,

PROPOSAL/ SCOPE OF SERVICES FOR PROJECT,

SCHEDULE OF PERFORMANCE,
AND

SCHEDULE OF COMPENSATION/ FEES

ATTACHMENT A

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Packet Pg. 282 Attachment: Attachment A - Proposed Consulting Services Agreement with Mercy House Living Centers (2897 : Mercy House) June 14, 2022
Mr. David Reynolds
Deputy City Manager
24035 El Toro Road
Laguna Hills, CA 92653
Dear Mr. Reynolds;
Thank you and the City of Laguna Hills for your ongoing partnership with Mercy House to provide Homeless Outreach Services in the City. Your partnership as part of a regional collaborative effort to address the crisis of homelessness in Orange County’s Southern Planning Area has played a vital role in helping the most vulnerable people in our community.

Mercy House desires to continue providing 20 hours of outreach services in the City, coordinating with City staff and the Police Department. Unfortunately, due to circumstances beyond our control and other funding priorities within the County, financial support from the County for this program is not anticipated to continue at this time.

As a result of no additional funding from the County, we write you today to respectfully request that the City considers investing in the full cost of homeless outreach services by committing $59,860 to execute a 20 hour/week homeless outreach program for fiscal year 22/23.

The funding will be used to provide for the salaries and benefits of an outreach worker, client services and transportation assistance. Mercy House’s proposal for a homeless outreach program for the City of Laguna Hills is enclosed with this letter.

Mercy House has a 30-year history of executing quality homeless services in Orange County and have helped several cities reduce their homeless populations through targeted outreach and engagement strategies. Through our success and innovative approaches, we have earned a reputation as being an authority on homeless issues. We have been contracted as consultants or key advisors with several cities to provide strategies and solutions to homelessness within their respective jurisdictions and have participated in and helped to create several initiatives and Homeless Task Forces. How we differ from other outreach service providers is that while we aim to meet the health and basic needs of the clients we encounter, our goal is simply not to continue to manage their homelessness on the streets. Instead, for the benefit of the clients we serve and to meet the goals of the City through their investment in this program, our attention is focused on providing a pathway to the effective end of homelessness through access to permanent housing opportunities.

With support from the City we hope to help address the growing concern of homelessness in the South

ATTACHMENT A

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Thank you for your consideration.

Sincerely,
Timothy Huynh
Chief Program Officer

ATTACHMENT A

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1694070.1

PROPOSAL FOR HOMELESSNESS SERVICES

FOR THE CITY OF LAGUNA HILLS
(FY 2022-2023)
Mercy House will provide the following to the City of Laguna Hills, for homelessness outreach services:

A. Two Mercy House Outreach Workers (totaling 20 hours per week) to work in the City of Laguna Hills and preform the following tasks.

1. Field Outreach Services
Conduct outreach and engagement in coordination with the Sheriff’s Department, the County of Orange Health Care Agency, neighboring cities, City staff, and other service providers.
a) Outreach shall include at least one field visit per week to all areas of the community identified as having unsheltered persons with the goal of making initial contact or following up on active cases. Additional field visits will be conducted as required or as directed by the City to address concerns, situations, and issues with homelessness.
b) Conduct Vulnerability Index Service Prioritization Decision Assistance Tool (“VISPDAT”) assessments in the field and develop a “By-Name-List” of each unsheltered person found to be residing within the community. c) Develop an accurate field survey of the City’s nighttime population and develop strategies for outreach, case management, and service delivery. d) Update and report field activities to City on a weekly basis and be available to attend meetings to discuss outreach and engagement efforts as requested.

2. Case Management Services
Provide ongoing case management services to assess the condition of each homeless person, develop a housing plan, and coordinate with our agencies to provide assistance.
a) Develop a case management plan for each unsheltered homeless person. Mercy House shall create and keep a file for each case and make the information available to the City upon request.
b) Engage in proactive case management that may include, but is not limited to:
housing programs, substance abuse programs, mental health programs, employment programs, rehoming (diversion) services, or other services deemed appropriate.
c) Coordinate case management services with the County Health Care Agency, emergency shelters, and other nonprofit providers to provide services based on the case management plan for that individual.

ATTACHMENT A

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1694070.1

3. Reporting and Meetings
a) Provide monthly activity reports to the City to include: total number of clients served, new engagements, number of referrals made, number of VI-SPDAT assessments, number of clients who are document ready, number of clients connected with housing or shelter, number of clients provided with diversion services. Reports may modified to include additional information requested by the City of Laguna Hills.
b) Attend monthly case management meetings with the City. c) Attend meetings as requested by City to coordinate program activities with the County of Orange, the Sheriff’s Department, Nonprofit Organizations, and neighboring cities.

B. Outreach Programs

1. Client Services and Transportation Assistance
This program allows for outreach workers to address immediate needs and dynamically respond to opportunities that may expedite a client’s path to housing:
examples of these program expenses may include but are not limited to:  The cost of a birth certificate  Taxi service or Other (Uber/Lyft) to transport to time-sensitive appointments  A short motel stay prior to housing placement  A long-distance bus ticket, train, or other mode of transportation, to connect a homeless resident with an out-of-town housing or employment opportunity or reunite with family members/friends that have housing available to them.

2. Employment
Offer employment services tailored to work with and assist chronically homeless persons.

C. Office/Desk Space
Mercy House is requesting the City to provide office/desk space for the Outreach Team Member when the Outreach Team Member is actively engaged in the 20 hours of homeless outreach services for the City of Laguna Hills.

SCHEDULE OF PERFORMANCE
The services as described above will be provided during Fiscal Year 2022/2023 with an effective date of July 1, 2022, and an end date of June 30, 2023.

PAYMENT SCHEDULE

ATTACHMENT A

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1694070.1
To fund the estimated twenty (20) hours per week of outreach services for this current fiscal year for the City of Laguna Hills, Mercy House is requesting from the City a total not exceed cost of $59,861 as illustrated in the table below. Hours worked per week may be less or more than the estimated 20 hours based on workload.

Mercy House will submit invoices on a monthly basis for hourly time that is billable to the City of Laguna Hills. Billable hours are hours that are being spent in the City of Laguna Hills working on the tasks as outlined in this proposal. Non-billable hours are hours such as sick time, holiday pay or vacation pay. Overhead and indirect costs associated with operating the program, including but not limited to accounting and payroll processing, supplies and management and oversight of salaried staff position will also be included in each monthly invoice.

Manager $ 11,408
Supervisor $ 9,295
Outreach Worker $ 25,350
Program Services and Supplies $ 6,000
Admin $ 7,808
Total Not to Exceed Amount $ 59,861

ATTACHMENT A

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City Council/Planning Agency
Staff Report
DATE: June 28, 2022
TO: Mayor and Council Members
FROM: Melissa Au-Yeung
Deputy City Manager/City Clerk
ISSUE: Designation of Voting Delegate for League of California Cities Annual Conference
RECOMMENDATION: That the City Council appoint the Mayor as the Voting Delegate and appoint the Mayor Pro Tempore as the Voting Delegate Alternate for the League of California Cities Annual Conference.

SUMMARY:

Cal Cities 2022 Annual Conference and Expo is scheduled for Wednesday, September 7, 2022, through Friday, September 9, 2022, in Long Beach. An important part of the Annual Conference is the Annual Business Meeting (during General Assembly) scheduled for Friday, September 9, 2022. At this meeting, Cal Cities membership considers and acts on resolutions that establish Cal Cities policy. The attached Memorandum from Cal Cities describes the process and provides procedures for voting at the Annual Conference.

In order to vote at the Annual Business Meeting, the City Council must designate a Voting Delegate and, if so desired, a Voting Delegate Alternate. The Voting Delegate Form must be returned to Cal Cities no later than Friday, September 2, 2022. Cal Cities by-laws provide that each City is entitled to one vote in matters affecting municipal or Cal Cities policy. At its December 14, 2021 meeting, the City Council reconfirmed the appointment of the Mayor as the Voting Delegate and the Mayor Pro Tempore as the alternate. It is appropriate to appoint Mayor Wheeler as the Voting Delegate and Mayor Pro Tempore Heft as the Voting Delegate Alternate.

4.12 Packet Pg. 288
Voting Delegates for Cal Cities
June 28, 2022

ATTACHMENTS:
• Cal Cities 2022 Voting Delegate Packet

4.12 Packet Pg. 289
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org DATE: June 1, 2022
TO: City Managers and City Clerks
RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference & Expo – September 7-9, 2022 Cal Cities 2022 Annual Conference & Expo is scheduled for September 7-9, 2022 in Long Beach. An important part of the Annual Conference is the Annual Business Meeting (during General Assembly) on Friday, September 9. At this meeting, Cal Cities membership considers and acts on resolutions that establish Cal Cities policy.

In order to vote at the Annual Business Meeting, your city council must designate a voting delegate. Your city may also appoint up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity.

Please complete the attached Voting Delegate form and return it to Cal Cities office no later than Friday, September 2. This will allow us time to establish voting delegate/alternate records prior to the conference.

Please view Cal Cities’ event and meeting policy in advance of the conference. • Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council.

When completing the attached Voting Delegate form, please attach either a copy of the council resolution that reflects the council action taken, or have your city clerk or mayor sign the form affirming that the names provided are those selected by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone. • Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration will open by June 1 on the Cal Cities website. In order to cast a vote, at least one voter must be present at the Business Meeting and in possession of the voting delegate card. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the Voting Delegate Desk. This will enable them to receive the special sticker on their name badges that will admit them into the voting area during the Business Meeting.

Council Action Advised by August 31, 2022

4.12.a
Packet Pg. 290 Attachment: Cal Cities 2022 Voting Delegate Packet (2890 : Voting Delegates for Cal Cities) • Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the Business Meeting, they may not transfer the voting card to another city official. • Seating Protocol during General Assembly. At the Business Meeting, individuals with the voting card will sit in a separate area. Admission to this area will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. If the voting delegate and alternates wish to sit together, they must sign in at the Voting Delegate Desk and obtain the special sticker on their badges.

The Voting Delegate Desk, located in the conference registration area of the Long Beach Convention Center, will be open at the following times: Wednesday, September 7, 8:00 a.m. – 6:00 p.m.; Thursday, September 8, 7:00 a.m. – 4:00 p.m.; and Friday, September 9, 7:30 a.m.–12:30 p.m. The Voting Delegate Desk will also be open at the Business Meeting on Friday, but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for completing the voting delegate and alternate form and returning it to Cal Cities office by Friday, September 2. If you have questions, please call Darla Yacub at (916) 658-8254.

Attachments:
• Annual Conference Voting Procedures
• Voting Delegate/Alternate Form

4.12.a
Packet Pg. 291 Attachment: Cal Cities 2022 Voting Delegate Packet (2890 : Voting Delegates for Cal Cities) 1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org Annual Conference Voting Procedures

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Annual Conference, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the Voting Delegate Form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the Voting Delegate Desk in the conference registration area. Voting delegates and alternates must sign in at the Voting Delegate Desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the Business Meeting.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the Credentials Committee at the Voting Delegate Desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and be registered with the Credentials Committee. The voting card may be transferred freely between the voting delegate and alternates, but may not be transferred to another city official who is neither a voting delegate or alternate.

6. Voting Area at Business Meeting. At the Business Meeting, individuals with a voting card will sit in a designated area. Admission will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate.

7. Resolving Disputes. In case of dispute, the Credentials Committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the Business Meeting.

4.12.a
Packet Pg. 292 Attachment: Cal Cities 2022 Voting Delegate Packet (2890 : Voting Delegates for Cal Cities) CITY:________________________________________
2022 ANNUAL CONFERENCE

VOTING DELEGATE/ALTERNATE FORM
Please complete this form and return it to Cal Cities office by Friday, September 2, 2022. Forms not sent by this deadline may be submitted to the Voting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one voting delegate and up to two alternates.

To vote at the Annual Business Meeting (General Assembly), voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council.

Please note: Voting delegates and alternates will be seated in a separate area at the Annual Business Meeting. Admission to this designated area will be limited to individuals (voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can be obtained only at the Voting Delegate Desk.

1. VOTING DELEGATE
Name:

Title:

2. VOTING DELEGATE - ALTERNATE 3. VOTING DELEGATE - ALTERNATE Name: Name:

Title: Title:

ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGATE AND ALTERNATES OR ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate(s).

Name: ____________________________________ Email_________________________________ Mayor or City Clerk_________________________ Date____________ Phone________________ (circle one) (signature) Please complete and return by Friday, September 2, 2022 to:

Darla Yacub, Assistant to the Administrative Services Director E-mail: [email protected]; Phone: (916) 658-8254

LAGUNA HILLS
Dave Wheeler
Mayor
Janine Heft
Mayor Pro Tempore
Melissa Au-Yeung [email protected]
(949) 707-2621

4.12.a
Packet Pg. 293 Attachment: Cal Cities 2022 Voting Delegate Packet (2890 : Voting Delegates for Cal Cities) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: June 28, 2022
TO: Mayor and Council Members
FROM: Melissa Au-Yeung
Deputy City Manager/City Clerk
ISSUE: Approval of Minutes for June 14, 2022, Regular Meeting RECOMMENDATION: That the Planning Agency approve the Planning Agency Minutes for the June 14, 2022, Regular Meeting.

ATTACHMENTS:
• 220614 PA Minutes

5.3.1 Packet Pg. 294
City of Laguna Hills City Council/Planning Agency Tuesday, June 14, 2022 Regular Meeting Minutes
5 5. PLANNING AGENCY
Mayor Wheeler recessed the City Council Meeting, and acting in capacity as Chair, called the Regular Meeting of the Planning Agency of the City of Laguna Hills, California, to order at 7:13p.m.

5.1. ROLL CALL OF PLANNING AGENCY MEMBERS
Attendee Name Title Status Arrived
Dave Wheeler Chair Present
Janine Heft Vice Chair Present
Don Caskey Agency Member Present
Erica Pezold Agency Member Remote
Don Sedgwick Agency Member Present

5.2. PUBLIC COMMENTS
There were no Planning Agency public comments on non-agendized items.

5.3. APPROVAL OF MINUTES
There were no Planning Agency Minutes to approve.

5.4. ADMINISTRATIVE REPORTS
There were no Planning Agency Administrative Reports.

5.5. PLANNING AGENCY PUBLIC HEARINGS

5.5.1 Conditional Use Permit (CUP) No. USE-0089-2022, a Request by John Ramirez to Establish a Veterinary Clinic, Rise Pet Care, in an Existing 20,000 Square-Foot Tenant Space Located at 24721 Alicia Parkway, Suite A
Community Development Director Longenecker reviewed the information provided in the staff report, provided a PowerPoint presentation, and responded to Agency Member requests for additional information.

Chair Wheeler opened the public hearing.

Project Architect, Niall F. Saunders and Rise Pet Care President/CEO, John Thompson, spoke in favor of the project, responded to Agency Member requests for additional information, and agreed to abide by the project’s conditions of approval.

Chair Wheeler closed the public hearing.

5.3.1.a
Packet Pg. 295 Attachment: 220614 PA Minutes (2906 : Approval of Minutes for June 14, 2022 PARegular Meeting) City of Laguna Hills City Council/Planning Agency Tuesday, June 14, 2022 Regular Meeting Minutes
6 Recommendation: That the Planning Agency: 1) Conduct a public hearing; 2) Find and determine that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of Title 14, Chapter 3 of the California Code of Regulations (Class 1, Existing Facilities); and 3) Adopt Resolution No. PA2022-06-14-1: “A Resolution of the Planning Agency of the City of Laguna Hills, California, approving Conditional Use Permit (CUP) No. USE-0089-2022, a request by John Ramirez, on behalf of Rise Pet Care, to establish a veterinary clinic in an existing 20,000 square-foot tenant space located at 24721 Alicia Parkway, Suite A, including an exemption from the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15301 of Title 14, Chapter 3 of the California Code of Regulations (Class 1, Existing Facilities).” RESULT: APPROVED [UNANIMOUS]
MOVER: Janine Heft, Vice Chair
SECONDER: Erica Pezold, Agency Member
AYES: Dave Wheeler, Chair; Janine Heft, Vice Chair;
Don Caskey, Agency Member; Erica Pezold, Agency
Member; Don Sedgwick, Agency Member

PLANNING AGENCY ADJOURNMENT
Chair Wheeler adjourned the Planning Agency Meeting at 7:29 p.m. and reconvened the City Council Meeting. All Council Members were present in Chamber.

6. CITY COUNCIL PUBLIC HEARINGS

6.1 Residential and Commercial Rate Adjustments Relating to State Mandated (SB 1383) Organic Waste Recycling Requirements and Proposed Amendment No. 2 to Franchise Agreement with CR&R Incorporated
Mayor Wheeler opened the public hearing.

Deputy City Manager/Community Services Director Reynolds reviewed the information provided in the staff report, provided a PowerPoint presentation, and responded to Council Member requests for additional information.

Assistant Clerk Lee provided an oral report on number of written protests received.

5.3.1.a
Packet Pg. 296 Attachment: 220614 PA Minutes (2906 : Approval of Minutes for June 14, 2022 PARegular Meeting) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: June 28, 2022
TO: Chair and Agency Members
FROM: Amber M. Shah P.E.

Acting Public Services Director
ISSUE: Adoption of a Resolution Making Findings of General Plan Consistency for the Proposed 2022/2023 Fiscal Year Capital Improvement Program RECOMMENDATION: That the Planning Agency adopt a Resolution entitled: “A Resolution of the Planning Agency of the City of Laguna Hills, California, finding that the proposed 2022/2023 Fiscal Year Capital Improvement Program conforms with the General Plan of the City of Laguna Hills pursuant to California Government Code Section 65401.”
SUMMARY:

In accordance with Section 65401 of the California Government Code, a Capital Improvement Program (CIP) is required to annually be submitted to the City's Planning Agency for review and determination as to its conformance with the adopted General Plan. Staff has prepared this report outlining the General Plan Goals that support the various Capital Improvement Projects as are included in the next fiscal year budget.

Accordingly, Staff recommends that the Planning Agency make a finding that the 2022/2023 fiscal year projects included in the CIP are in conformance with the General Plan by adopting the proposed Resolution.

BACKGROUND:

California Government Code Section 65401 requires that departments within municipalities responsible for implementing CIP projects prepare and present the following to the Planning Agency: 1) A comprehensive list of the proposed CIPs for the following budget cycle; and 2) A report as to conformity of that plan with the adopted

5.4.1 Packet Pg. 297
General Plan Conformity Report CIP FY 2022/2023
June 28, 2022

General Plan.

The multi-year CIP was adopted by the City Council on June 22, 2021, to include projects in the 2022/2023 fiscal year. The specific projects included in the next fiscal year’s CIP, along with the accompanying General Plan Goals they support, are described below. The identified CIP project numbers correspond to the budget project numbers and categories as listed in Exhibit A of the attached Resolution.

Streets, Signals, and Lighting
The following project meets Mobility Goal M-1 (Provide a safe and efficient local transportation system consistent with the general County standards and the regional system) and Mobility Goal M-2 (Implement improvements that foster improved traffic safety on the circulation system for all drivers, pedestrians, and cyclists). • La Paz Road Widening Project (CIP 184) - Provides for the design of the widening of La Paz Road from McIntyre Street to Cabot Road for improved traffic flow and traffic safety.

Parks
The following project meets Conservation and Open Space Goal COS-2 (Expand and maintain the City's integrated parks, recreation, and trails system to meet the needs of residents of all ages).
• Community Center and Sports Complex Field Renovations (CIP 238) - Provides for the replacement of sports turf at the Community Center and Sports Complex soccer fields as needed to improve the playability of the fields, as well as additional maintenance of the baseball fields at the Community Center and Cabot Park.
• General Park Renovations (CIP 241) – Provides for the replacement of worn equipment, hardscape or landscape as needed for full utilization of the recreation facility.

Flood Control and Water Quality
The following projects meet Conservation and Open Space Goal COS-1 (Manage limited resources so that future generations can enjoy the environmental and scenic wealth this community has to offer).
• NPDES/Water Quality Program (CIP 410) - Provides for water quality evaluations,

5.4.1 Packet Pg. 298
General Plan Conformity Report CIP FY 2022/2023
June 28, 2022

data collection, reporting and improvement initiatives seeking to reduce pollutants within water runoff reaching the storm drain systems, in accordance with the NPDES permits.

Public Facilities
The following projects meet Community Services and Facilities Goal CSF-1 (Establish and maintain a high level of community facilities and services to meet the needs of the community and enhance the quality of life in Laguna Hills) and Conservation and Open Space Goal COS-2 (Expand and maintain the City's integrated parks, recreation, and trails system to meet the needs of residents of all ages). • Community Center Renovation (CIP 513) - Provides for various scheduled maintenance and equipment replacement at the Community Center building. • Sports Complex Renovations (CIP 514) - Provides for various scheduled maintenance and equipment replacement at the Sports Complex.

Staff recommends that the Planning Agency find that the 2022/2023 fiscal year projects included in the CIP are in conformance with the City's General Plan by adoption of the attached Resolution.

CEQA FINDINGS:

The Planning Agency finds that this action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This General Plan conformity determination does not constitute “approval” of any of the listed projects and, for that reason, this action of the Planning Agency is exempt from the requirements of CEQA. All projects listed in the CIP will be reviewed individually pursuant to the requirements in CEQA and the Planning Agency’s review for General Plan consistency does not commit the City to any one of the listed projects. In addition, CEQA Guidelines Section 15378 specifically excludes organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment.

ATTACHMENTS:
• Proposed Resolution - GP CIP Conformity
• Exhibit A to Proposed Resolution - FY 2022/2023 CIP Project Summary • Exhibit B to Proposed Resolution - GP CIP Conformity Findings

5.4.1 Packet Pg. 299
RESOLUTION NO. PA2022-06-28-X

A RESOLUTION OF THE PLANNING AGENCY OF THE

CITY OF LAGUNA HILLS, CALIFORNIA, FINDING THAT
THE PROPOSED 2022/2023 FISCAL YEAR CAPITAL

IMPROVEMENT PROGRAM CONFORMS WITH THE

GENERAL PLAN OF THE CITY OF LAGUNA HILLS

PURSUANT TO CALIFORNIA GOVERNMENT CODE
SECTION 65401
The Planning Agency of the City of Laguna Hills, California, hereby finds, determines, declares, and resolves as follows:

WHEREAS, on December 20, 1991, the City of Laguna Hills was established as a duly organized municipal corporation of the State of California; and WHEREAS, on June 28, 1994, the City of Laguna Hills adopted its General Plan incorporating all State mandated elements; and
WHEREAS, on July 14, 2009, the City of Laguna Hills adopted an update to the Laguna Hills General Plan, which has subsequently been amended from time to time; and
WHEREAS, California Government Code Section 65401 requires the Planning Agency to annually review a comprehensive list of proposed public works projects recommended for planning, initiation, or construction during the ensuing fiscal year, and report to City Council as to conformity of that coordinated program with the City’s General Plan; and
WHEREAS, the City Manager of the City of Laguna Hills has prepared a Six Year Capital Improvement Program Project Summary List and Budget, which identifies proposed 2022/2023 fiscal year public works projects; and WHEREAS, on June 28, 2022, at a regularly scheduled meeting, the Planning Agency reviewed and considered the comprehensive list of 2022/2023 fiscal year public works projects included in the City of Laguna Hills Six Year Capital Improvement Program Project Summary List and Budget, and concluded said review prior to the adoption of this Resolution.

NOW, THEREFORE, THE PLANNING AGENCY OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The foregoing Recitals are true and correct and are incorporated herein by reference.

SECTION 2. Each of the 2022/2023 fiscal year public works projects included in the City of Laguna Hills Six Year Capital Improvement Program Project Summary List and

5.4.1.a
Packet Pg. 300 Attachment: Proposed Resolution - GP CIP Conformity (2904 : General Plan Conformity Report CIP FY 2022/2023) Resolution No. PA2022-06-28-X

Budget, attached hereto as Exhibit “A” and incorporated herein by reference conforms with the City’s General Plan based on the information and findings set forth in Exhibit “B”, attached hereto and incorporated herein by reference.

SECTION 3. The Planning Agency finds that this action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This General Plan conformity determination does not constitute “approval” of any of the listed projects and, for that reason, this action of the Planning Agency is exempt from the requirements of CEQA. All projects listed in the CIP will be reviewed individually pursuant to the requirements in CEQA and the Planning Agency’s review for General Plan consistency does not commit the City to any one of the listed projects. In addition, CEQA guidelines Section 15378 specifically excludes organizational or administrative activities of government that will not result in direct or indirect physical changes in the environment.

SECTION 4. Based on the findings and conclusions set forth above, this Resolution shall serve as the Planning Agency’s report regarding the conformity of the 2022-2023 fiscal year public works projects included in the City of Laguna Hills Six Year Capital Improvement Program Project Summary List and Budget with the City’s adopted General Plan as required by California Government Code Section 65401.

PASSED, APPROVED, AND ADOPTED this 28
th day of June 2022.
____________________________________

DAVE WHEELER, CHAIR
ATTEST:
______________________________________

MELISSA AU-YEUNG, CITY CLERK

5.4.1.a
Packet Pg. 301 Attachment: Proposed Resolution - GP CIP Conformity (2904 : General Plan Conformity Report CIP FY 2022/2023) Resolution No. PA2022-06-28-X

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF LAGUNA HILLS )
I, Melissa Au-Yeung, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. PA2022-06-28-X adopted by the Planning Agency of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 28 th day of June 2022, by the following
vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

MELISSA AU-YEUNG, CITY CLERK

5.4.1.a
Packet Pg. 302 Attachment: Proposed Resolution - GP CIP Conformity (2904 : General Plan Conformity Report CIP FY 2022/2023) 1247283.1
EXHIBIT A
CITY OF LAGUNA HILLS
SIX YEAR CAPITAL IMPROVEMENT PROGRAM
PROJECT SUMMARY LIST AND BUDGET

INCLUDING
2022/2023 FISCAL YEAR PROJECTS

5.4.1.b
Packet Pg. 303 Attachment: Exhibit A to Proposed Resolution - FY 2022/2023 CIP Project Summary (2904 : General Plan Conformity Report CIP FY 2022/2023)

CITY OF LAGUNA HILLS
Six Year Capital Improvement ProgramProject Summary
Project Total Cost Fiscal Year 2021/22 Fiscal Year 2022/23 Fiscal Year 2023/24 Fiscal Year 2024/25 Fiscal Year 2025/26 Fiscal Year 2026/27 Future Street, Signals and Lighting
101 Annual Street Maintenance $ 11,300,000 $ 2,900,000 $ - $ 2,600,000 $ - $ 2,900,000 $ - $ 2,900,000 112 Traffic Signals - 1,000,000 - - - - - 1,000,000139 Cabot Widening - La Paz to Paseo de Valencia 3,500,000 - - - - - - 3,500,000145 Paseo de Valencia Widening 9,000,000 - - - - - - 9,000,000168 Traffic Signal Improvements/Coordination Projects 325,000 100,000 - 75,000 - 75,000 - 75,000170 Access Ramp Construction - Citywide/Transition Plan 4,600,000 - - 100,000 - - - 4,500,000171 La Paz Road Sidewalk Widening 1,500,000 - - - - - - 1,500,000178 South Moulton Pavement Rehabilitation (VIA Lomas to SCL) 2,000,000 - - - - - - 2,000,000181 Oso Parkway Pavement Rehabilitation (Cabot to WCL) 2,000,000 - - - - - - 2,000,000182 Lake Forest Drive Pavement Rehabilitation (ECL to WCL) 2,000,000 - - - - - - 2,000,000183 Avenida Carlota Pavement Rehabilitation (El Toro Rd to Los Alisos Blvd) 1,000,000 - - - - - - 1,000,000184 La Paz Road Widening (McIntyre to Cabot) 2,100,000 - 100,000 - - - - 2,000,000185 Replacement of ISNS & Cameras at all Traffic Signal Locations 375,000 - - 125,000 - 125,000 - 125,000 Sub-Total $ 40,700,000 $ 3,000,000 $ 100,000 $ 2,900,000 $ - $ 3,100,000 $ - $ 31,600,000 Project
No.

IV - 1

5.4.1.b
Packet Pg. 304
Attachment: Exhibit A to Proposed Resolution - FY 2022/2023 CIP Project Summary (2904 : General Plan

CITY OF LAGUNA HILLS
Six Year Capital Improvement ProgramProject Summary
Project Total Cost Fiscal Year 2021/22 Fiscal Year 2022/23 Fiscal Year 2023/24 Fiscal Year 2024/25 Fiscal Year 2025/26 Fiscal Year 2026/27 Project Future No.

Streetscape
301 Alicia Parkway Median Islands Landscape Rehabilitation $ 1,000,000 $ - $ - $ - $ - $ - $ - $ 1,000,000 305 La Paz Median Islands - 3,700,000 - - - - - 3,700,000307 Entry Monuments 750,000 - - - - - - 750,000312 Paseo de Valencia Median Island Rehabilitation 3,500,000 - - - - - - 3,500,000314 Paseo de Valencia Median Islands 2,250,000 - - - - - - 2,250,000315 Rehabilitation of Oso Median Islands 3,000,000 - - - - - - 3,000,000322 Rehabilitation of Moulton Median Island 2,500,000 - - - - - - 2,500,000323 Rehabilitation of Laguna Hills Drive Median Island 900,000 - - - - - - 900,000324 Rehabilitation of La Paz Median Island 1,250,000 - - - - - - 1,250,000325 Ridge Route Median Islands - Santa Vittoria to Moulton Pkwy 2,250,000 - - - - - - 2,250,000326 Laguna Hills Drive Median Islands and North Parkway 750,000 - - - - - - 750,000330 Alicia Pkwy & Paseo de Valencia Street Tree Program 750,000 - - - - - - 750,000331 Synthetic Landscape Turf Median Islands 1,000,000 - - - - - - 1,000,000333 Ridge Route Medians - Moulton Pkwy to Avenida de la Carlota 2,500,000 - - - - - - 2,500,000334 Aliso Hills Drive North Down Slope 1,000,000 - - - - - - 1,000,000335 La Paz Road South Side Slope Renovation 5,500,000 - - - - - - 5,500,000336 Palermo and Taranto Slope Renovation 300,000 - - - - - - 300,000337 San Remo Drive Slope Renovation 800,000 - - - - - - 800,000338 Paseo De Valencia East and West Parkway Renovation 800,000 - - - - - - 800,000339 Paseo de Valencia Southwest Parkway Renovation 650,000 - - - - - - 650,000 Sub-Total $ 35,150,000 $ - $ - $ - $ - $ - $ - $ 35,150,000 IV - 2 5.4.1.b
Packet Pg. 305
Attachment: Exhibit A to Proposed Resolution - FY 2022/2023 CIP Project Summary (2904 : General Plan

CITY OF LAGUNA HILLS
Six Year Capital Improvement ProgramProject Summary
Project Total Cost Fiscal Year 2021/22 Fiscal Year 2022/23 Fiscal Year 2023/24 Fiscal Year 2024/25 Fiscal Year 2025/26 Fiscal Year 2026/27 Project Future No.

Flood Control & Water Quality
403 Storm Drain/Slope Repairs $ 200,000 $ 50,000 $ - $ 50,000 $ - $ 50,000 $ - $ 50,000406 F23 Canada Channel (Veeh Park) 750,000 - - - - - - 750,000407 Aliso Creek Watershed 500,000 - - - - - - 500,000 410 NPDES / Water Quality Program 1,400,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 411 Largo Storm Drain Improvements (secondary outlet) 500,000 - - - - - - 500,000412 Water Quality (2) Improvements 1,000,000 250,000 - 250,000 - 250,000 - 250,000413 Oso Parkway Wetlands 500,000 - - - - - - 500,000 Sub-Total $ 4,850,000 $ 500,000 $ 200,000 $ 500,000 $ 200,000 $ 500,000 $ 200,000 $ 2,750,000 Parks
234 Aliso Hills Park $ 3,000,000 $ - $ - $ - $ - $ - $ - $ 3,000,000237 Park Refurbishment Project 240,000 240,000 - - - - - -238 Community Center and Sports Complex Field Renovations 775,000 50,000 225,000 - 250,000 - 250,000 -241 General Park Renovations 6,550,000 - 300,000 - 350,000 - 400,000 5,500,000243 Restoration of Various Parks 6,500,000 - - 500,000 500,000 500,000 500,000 4,500,000242 Recreation Facilities Needs Assessment 75,000 - - 75,000 - - - - Sub-Total $ 17,140,000 $ 290,000 $ 525,000 $ 575,000 $ 1,100,000 $ 500,000 $ 1,150,000 $ 13,000,000 Public Facilities
505 Civic Center Renovations $ 150,000 $ 50,000 $ - $ - $ - $ - $ - $ 100,000506 Skate Facility Enhancements 400,000 - - - - - - 400,000508 Equipment & Supply Storage Building 600,000 - - - - - - 600,000510 Public Art Program - Civic Center 350,000 - - 350,000 - - - -513 Community Center Renovation 300,000 - 100,000 - 100,000 - 100,000 -514 Sports Complex Renovations 425,000 - 100,000 125,000 100,000 - 100,000 -519 Holiday Pavilion Landscaping 50,000 - - 50,000 - - - -518 Automated License Plate Readers 150,000 - - - 150,000 - - - Sub-Total $ 2,425,000 $ 50,000 $ 200,000 $ 525,000 $ 350,000 $ - $ 200,000 $ 1,100,000 IV - 3 5.4.1.b
Packet Pg. 306
Attachment: Exhibit A to Proposed Resolution - FY 2022/2023 CIP Project Summary (2904 : General Plan

CITY OF LAGUNA HILLS
Six Year Capital Improvement ProgramProject Summary
Project Total Cost Fiscal Year 2021/22 Fiscal Year 2022/23 Fiscal Year 2023/24 Fiscal Year 2024/25 Fiscal Year 2025/26 Fiscal Year 2026/27 Project Future No.

Trails and Open Space
601 Trails Master Plan - Other Projects $ 3,000,000 $ - $ - $ - $ - $ - $ - $ 3,000,000606 Trail Head Plazas - 1,250,000 - - - - - 1,250,000607 Aliso Hills Channel Pedestrian Crossing JO5PO3 500,000 - - - - - - 500,000608 Multi-use Trail - Alicia to La Paz 4,500,000 - - - - - - 4,500,000609 Multi-use Trail - Community Center to Indian Hill 900,000 - - - - - - 900,000610 Loop Trails in Alicia Open Space 500,000 - - - - - - 500,000611 La Paz Multi-use Trail - Alameda to Paseo de Valencia 10,000,000 - - - - - - 10,000,000612 Alicia Pedestrian Bridge at Trail 1,500,000 - - - - - - 1,500,000613 Trail along SJHTC 400,000 - - - - - - 400,000614 Alicia Open Space Landscaping 16,500,000 - - - - - - 16,500,000615 La Paz Open Space Riparian Habitat- Alameda to Paseo de Valencia 12,500,000 - - - - - - 12,500,000616 Aliso Hills Area Open Space 5,000,000 - - - - - - 5,000,000617 Oso Parkway Open Space Landscape 8,500,000 - - - - - - 8,500,000618 Ridge Route Open Space 900,000 - - - - - - 900,000 619 Slope Renovation South of Aliso Creek 900,000 - - - - - - 900,000620 Miscellaneous Landscape Renovations - Various Areas 2,000,000 - - - - - - 2,000,000 621 Recycled Water Conversions 1,000,000 - - - - - - 1,000,000 622 Luna Bonita Slope Renovation 200,000 200,000 - - - - - - Sub-Total $ 70,050,000 $ 200,000 $ - $ - $ - $ - $ - $ 69,850,000 Grand Total $ 170,315,000 $ 4,040,000 $ 1,025,000 $ 4,500,000 $ 1,650,000 $ 4,100,000 $ 1,550,000 $ 153,450,000 IV - 4 5.4.1.b
Packet Pg. 307
Attachment: Exhibit A to Proposed Resolution - FY 2022/2023 CIP Project Summary (2904 : General Plan EXHIBIT B
2022/2023 FISCAL YEAR
CAPITAL IMPROVEMENT PROGRAM PROJECTS
GENERAL PLAN CONFORMITY FINDINGS
Streets, Signals, and Lighting
The following project meets Mobility Goal M‐1 (Provide a safe and efficient local transportation system consistent with the general County standards and the regional system) and Mobility Goal M‐2 (Implement improvements that foster improved traffic safety on the circulation system for all drivers, pedestrians, and cyclists).
 La Paz Road Widening Project (CIP 184) ‐ Provides for the design of the widening of La Paz Road from McIntyre Street to Cabot Road for improved traffic flow and traffic safety.

Parks
The following project meets Conservation and Open Space Goal COS‐2 (Expand and maintain the City's integrated parks, recreation, and trails system to meet the needs of residents of all ages).  Community  Center and Sports  Complex  Field  Renovations  (CIP  238)  ‐  Provides  for  the replacement of sports turf at the Community Center and Sports Complex soccer fields as needed to improve the playability of the fields, as well as additional maintenance of the baseball fields at the Community Center and Cabot Park.  General Park Renovations (CIP 241) – Provides for the replacement of worn equipment, hardscape or landscape as needed for full utilization of the recreation facility.

Flood Control and Water Quality
The following projects meet Conservation and Open Space Goal COS‐1 (Manage limited resources so that future generations can enjoy the environmental and scenic wealth this community has to offer).
 NPDES/Water  Quality  Program  (CIP  410)  ‐  Provides  for  water  quality  evaluations,  data collection, reporting and improvement initiatives seeking to reduce pollutants within water runoff reaching the storm drain systems, in accordance with the NPDES permits.

5.4.1.c
Packet Pg. 308 Attachment: Exhibit B to Proposed Resolution - GP CIP Conformity Findings (2904 : General Plan Conformity Report CIP FY 2022/2023) Exhibit B

Public Facilities
The following projects meet Community Services and Facilities Goal CSF‐1 (Establish and maintain a high level of community facilities and services to meet the needs of the community and enhance the  quality  of life in  Laguna Hills)  and  Conservation  and Open  Space Goal  COS‐2  (Expand  and maintain the City's integrated parks, recreation, and trails system to meet the needs of residents of all ages).
 Community Center Renovation  (CIP 513)  ‐ Provides  for various scheduled maintenance and equipment replacement at the Community Center building.  Sports Complex Renovations (CIP 514) ‐ Provides for various scheduled maintenance and equipment replacement at the Sports Complex.

5.4.1.c
Packet Pg. 309 Attachment: Exhibit B to Proposed Resolution - GP CIP Conformity Findings (2904 : General Plan Conformity Report CIP FY 2022/2023) City of Laguna Hills
City Council/Planning Agency
Staff Report
DATE: June 28, 2022
TO: Mayor and Council Members
FROM: Larry Longenecker
Community Development Director
ISSUE: General Plan Amendment RZNE-0003-2020 for the 2021-2029 Housing Element Update and Safety Element Update
RECOMMENDATION: That the City Council: 1) Conduct a public hearing and 2) Adopt a Resolution entitled: “A Resolution of the City Council of the City of Laguna Hills, California, adopting an addendum to the Laguna Hills General Plan Program Environmental Impact Report, as previously addended, and adopting RZNE-0003-2020, an update to the Laguna Hills General Plan Housing Element for the 2021-2029 planning period and an update to the Laguna Hills General Plan Safety Element, as required by state law.”
SUMMARY:

The state-mandated General Plan Housing Element serves as a policy document to assess the City’s housing characteristics and community needs, and to plan for the existing and projected housing needs of all segments of the community, including new housing units as identified in the state-mandated Regional Housing Needs Assessment (RHNA). The City’s assigned RHNA obligation for the 2021-2029 planning period is 1,985 new housing units. State law requires the Housing Element to include a Housing Plan, with an inventory of housing sites suitable to accommodate the RHNA.

The Housing Element is unique in the level of state involvement in the review process.

Under state law, cities and counties are required to submit their draft housing elements to the State Department of Housing and Community Development (HCD) for review and issuance of findings as to whether, in its opinion, the element complies with state law.

6.1 Packet Pg. 310
2021-2029 Housing Element Update and Safety Element Update June 28, 2022

The City Council considered public review drafts of the Housing Element Update at three regularly scheduled meetings: October 26, 2021, January 11, 2022, and May 24, 2022.

Four public workshops were conducted as part of the City’s outreach efforts, including two workshops with the City Council, on March 26, 2022, and May 3, 2022. At the May 3 public workshop, the City Council reached majority consensus on specific parcels to include in the draft Housing Element housing sites inventory to accommodate the RHNA.

At its regular meeting on May 24, 2022, The City Council directed Staff to prepare the revised draft 2021-2029 Housing Element Update for adoption consideration, and directed staff to submit the revised draft Housing Element to HCD for a 60-day review period. Staff submitted the Housing Element to HCD on June 3, 2022, with HCD findings due to the City on or before August 3, 2022. Staff and the City’s consultant, PlaceWorks, believe that the revised Draft Housing Element, provided in Exhibit 3 to Attachment A, addresses all of HCD's findings and Staff anticipates the Housing Element will be found to comply with Housing Element law.

At the May 24, 2022, City Council meeting, the Council also directed Staff to prepare the Safety Element Update for adoption consideration, which is required by new state law to be updated concurrently with Housing Element Updates.

BACKGROUND:

Each city in California is required by state law to maintain a plan for the orderly growth and development of the city, to guide decisions about the use of land and manage the physical, social, and economic changes that occur within a community. This document, called a General Plan, is comprised of several mandatory elements including a Housing Element, the only General Plan Element reviewed by the state for compliance with state law.

Housing Element
The Housing Element is required to identify and analyze existing and projected housing needs, and includes statements of a city’s goals, policies, quantified objectives, and scheduled programs for the preservation, improvement, and development of housing.

A city, in adopting its Housing Element, must consider economic, environmental, and fiscal factors, as well as community goals as set forth in the General Plan, in compliance with California Government Code Section 65580 et seq.

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The Housing Element is required by state law to be updated every eight years consistent with regional housing cycles. The City’s 5th Cycle Housing Element was adopted on October 8, 2013, and covered the 2013-2021 planning period. This report describes the state-mandated 6th Cycle Housing Element Update covering the 2021-2029 planning period, as well as a related, state-mandated update to the City’s Safety Element, discussed below.

A key housing element requirement is identification of the City’s obligation to plan for new housing during the planning period. This is accomplished through a regional process called the Regional Housing Needs Assessment (RHNA). Laguna Hills’ assigned “fair share” of the regional housing need for 5th Cycle planning period was one very-lowand one low-income unit, for a total of two dwelling units. For the new 6th Cycle 2021- 2029 Planning Period the City’s total RHNA is 1,985 new units, distributed within income categories as shown in Table 1, RHNA Obligation by Income Category. It is important to note that the City is not required to construct new housing units; rather, the City must demonstrate it has adequate land capacity and zoning to accommodate the City’s RHNA obligation.

Table 1: RHNA Obligation by Income Category
Income Category 2021-2029 RHNA
Very Low (<50% AMI) 568
Low (51–80% AMI) 353
Moderate (81–120% AMI) 354
Above Moderate (>120% AMI) 710
Total 1,985
Source: SCAG RHNA, 2021
Safety Element
The purpose of a Safety Element of the General Plan is to address existing or anticipated safety hazards that may adversely affect the community. By establishing goals and policies to minimize risk to residents and visitors, the Safety Element sets forth the framework that will inform and guide the regulation of existing and proposed development in hazard-prone areas, promote urban design to ensure safe streets and neighborhoods, and establish methods to ensure safety and organization during emergency situations. Accordingly, this Element specifically covers potential risks associated with seismic and geologic activity, fire, neighborhood safety, hazardous

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materials and waste, nuclear power, flood, stormwater, and climate change. Emergency preparedness planning, such as identifying actions needed to manage crisis situations, is also addressed. Recent legislation, including SB 1241, SB 379, and SB 99, amended Government Code Section 65302 to require that upon subsequent revisions of a city’s Housing Element, after January 1, 2020, a city’s Safety Element shall also be reviewed and updated as necessary.

The draft Safety Element Update was initially considered at the City Council’s regularly scheduled public meeting on January 25, 2022, with comments from City Council regarding coordination with Homeowners Associations in support of local preparedness plans, and an expanded description of the Local Hazard Mitigation Plan.

Public Outreach
Substantial public outreach was conducted for the draft Housing Element Update, as well as the Safety Element Update. In addition to stakeholder interviews and an online survey, multiple public workshops and public City Council meetings were conducted, as follows:
• November 10, 2020: The Housing Element Update process was introduced at this regularly scheduled City Council meeting.
• June 30, 2021: An online workshop was held to provide an overview of the Housing Element Update process and to receive public comments.
• August 5, 2021: A Thursday evening public workshop was held in the Community Center Heritage Room, to review specific Housing Element criteria as mandated by state law, and to receive public comments;
• October 26, 2021: The first public review draft of the Housing Element was considered at this regularly scheduled City Council meeting, and subsequently submitted to HCD for review and comment.
• January 11, 2022: The second public review draft of the Housing Element was considered at this regularly scheduled City Council meeting, including comments received by HCD. The staff report from this meeting is provided as Attachment B to this report.
• March 26, 2022: A Saturday afternoon public workshop with the City Council was held in the City Hall Council Chamber to review the draft Housing Element Update including primarily the housing sites inventory to accommodate the City’s RHNA obligation.

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• May 3, 2022: A Tuesday evening workshop with the City Council was held at the City’s Community Center to further discuss the housing sites inventory. At this workshop the Council reached majority consensus on specific candidate rezone sites to include in the City’s housing sites inventory (see Pages H-179, H-180, and H-185 through H-193 of Exhibit 3 to Attachment A).
• May 24, 2022: The third public review draft of the Housing Element was considered at this regularly scheduled City Council meeting. The staff report from this meeting is provided as Attachment C to this report.

DISCUSSION:

Housing Element
The City’s Housing Element is organized into the following required sections to meet statutory requirements:
• Housing Needs, a detailed analysis of demographic and employment/income trends, housing conditions and affordability, and special housing needs. • Constraints on Housing Production, an examination of potential constraints to housing development including governmental factors such as land use regulations and non-governmental factors such as the cost of land and availability of financing. • Resources, a detailed inventory of land available for housing development and a demonstration of the City’s capacity to meet its Regional Housing Needs Allocation (RHNA), as well as description of administrative and financial resources available to assist with the development, improvement, and preservation of housing in the community.
• Fair-Housing Assessment, new for the 6th cycle Housing Element, Assembly Bill (AB) 686 requires that all housing elements due on or after January 1, 2021, contain an Assessment of Fair Housing (AFH). The AFH analyzes a range of required indicators that fall into the following categories: Patterns of Integration & Segregation, Access to Opportunity, Disproportionate Housing Need/Displacement Risk, Enforcement and Outreach Capacity, and Other Relevant Factors. The AFH includes an analysis of the Housing Element sites inventory, which overlays the sites with the fair housing layers to compare the distribution of sites and their projected affordability with fair housing indicators (income distribution, transit access, etc.). Local jurisdictions are mandated to Affirmatively Further Fair Housing (AFFH), which means “taking meaningful actions, in addition to combating discrimination, that overcome

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patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” State law requires all local jurisdictions to assess patterns both locally and regionally to compare conditions at the local level to the rest of the region. • Housing Plan, a detailed description (quantified, where possible) of accomplishments toward implementing programs from the City’s current Housing Element, as well as an analysis of the continued appropriateness and feasibility of each program for the new planning cycle.
• Appendix A: Implementation Program, a detailed description of the Housing Element specific implementation programs addressing: Neighborhood and Housing Preservation; Housing Availability; Zoning Ordinance Updates; Equal Housing Opportunity; and Implementation and Monitoring.
• Appendix B: Summary of Public Input.
• Appendix C: Owner Interest Letters.

Consultation with HCD
The Housing Element is unique in the level of state involvement in the review process.

Under state law, cities and counties are required to submit their draft housing elements to HCD for review and issuance of findings as to whether, in its opinion, the element complies with state law. A finding of compliance by HCD is referred to as “certification.” Housing Element certification is important in preserving the City’s eligibility for some state grant programs, in maintaining the legal adequacy of the General Plan, and in maintaining the City’s local control of land use decisions.

A draft of the City’s Housing Element Update was initially considered by the City Council on October 26, 2021, and submitted to HCD on November 4, 2022, for a 60-day review and comment period. HCD provided a comment letter to the City dated January 4, 2022 (Attachment D). Staff and the City's Housing Element consultant, PlaceWorks, evaluated HCD's comments and prepared revised drafts of the Housing Element that were considered by City Council at regularly scheduled meetings on January 11, 2022, and May 24, 2022. Specific revisions to the draft Housing Element, to address HCD comments, are detailed in those City Council staff reports, provided as Attachments B and C, respectively, to this report. Staff and the consultant believe that the revised Draft Housing Element, provided in Exhibit 3 to Attachment A, addresses all of HCD's findings and Staff anticipates the Housing Element will be found to comply with Housing Element law.

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At the May 24, 2022, regularly scheduled City Council meeting, the Council directed Staff to submit the revised draft Housing Element Update to HCD and to proceed with public review of the Housing Element Update in preparation for adoption consideration.

On May 27, 2022, the current draft of the Housing Element Update was posted to the City’s website and provided for a 30-day public review period ending June 27, 2022. The revised draft Housing Element was submitted to HCD on June 3, 2022, and all comments received during the 30-day public review period will be transmitted to HCD on June 28, 2022. State law provides a 60-day period for HCD to review the City's revised draft Housing Element, with HCD findings due to the City on or before August 3, 2022.

Safety Element
The proposed Safety Element reflects updated figures and new data, and it incorporates new sections required by legislation enacted since the Safety Element’s comprehensive update in 2009. The revisions are minor in nature, and all are necessary to comply with the SB 1241, SB 379, and SB 99, which requires the Safety Element be updated, as necessary, in conjunction with the Housing Element Update.

Multiple agencies reviewed and provided comments to the draft Safety Element Update including: California Geological Survey; Orange County Fire Authority; and Orange County Sheriff’s Department. City staff comments were provided from both the Community Development and Public Services Departments.

New Legislation
The proposed Safety Element Update is not comprehensive in nature, in that it seeks only to incorporate new information and areas of analysis required by state laws that have been enacted since the City’s Safety Element was last adopted, in 2009. New legislation is described below along with a description of how the proposed Safety Element Update addresses each law:
• Senate Bill 1241 (2012) requires General Plan Safety Elements be updated at the time of a Housing Element update to address the risk of fire. The updated element includes the Orange County Fire Authority’s response time objectives, community education resources on fire safety and a brief discussion on the effects of wildfire smoke. See Pages S-12 and S-13. (Though not required pursuant to this legislation, the Orange County Sheriff’s Department’s response time objectives are also now provided on Page S-17, under the Law Enforcement and Criminal Activities section.)

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• Senate Bill 379 (2015) requires updates to address climate adaptation and resiliency strategies that are locally applicable in conjunction with an update to the Housing Element. Found on pages S-22 to S-25, this is a new section that identifies the following potential climate-related hazards: air quality, drought, extreme heat and warm nights, human health hazards (infectious disease), and extreme storms. Discussion in this section is largely based on a legislativelyrequired Vulnerability Assessment that looks at how populations and assets may be affected by climate change. The Vulnerability Assessment is provided in Appendix A on Pages S-39 to S-42.
• Senate Bill 99 (2019) requires local governments to identify residential developments in hazard areas that do not have at least two evacuation routes (i.e., ingress/egress). As seen in Figure S-10 (Page S-28), there are a total of 24 residential areas that lack at least two evacuation routes. Using Figure S-1 (Page S-5) as a cross-reference, these areas are identified because they are situated in areas susceptible to landslide.
• Assembly Bill 747 (2019) requires cities to identify emergency evacuation routes for a range of emergency scenarios. Evacuation routes are now identified in Figure S-9 (page S-27) and include the following arterial roadways and freeways:

Lake Forest Drive, El Toro Road, Glenwood Drive, Los Alisos Boulevard, Alicia Parkway, La Paz Road, Oso Parkway, Moulton Parkway, Paseo de Valencia, State Route 73, and Interstate 5. (Note: Assembly Bill 747 also requires a city to evaluate the capacity, safety and viability of each of the identified evacuation routes at a future date; this will likely be performed upon the next update of the County’s Local Hazard Mitigation Plan.)
Proposed Amendments to Safety Element Goals and Policies The draft Safety Element’s Goals and Policies section (Pages S-29 to S-36) sets both broad and specific direction to maintain and advance public safety efforts. It should be noted that all recommended new policies reflect best practices from other cities throughout the state as observed by the consultant team that prepared the draft document. The following are proposed new policies to this section:
• Geology and Seismicity
- Policy S-1.3: Require that grading activities be designed, per City standards, to avoid obstructing or impeding the natural flow of stormwaters, causing accelerated erosion, or aggravating any existing flooding condition.

This recommended policy is responsive to SB 379.

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• Urban and Wildland Fire Hazards
- Policy S-2.6: Enforce the California Fire Safe Standards and City’s Building Code and Fire Code to support fire safety in new and existing developments.

Require that new developments demonstrate compliance with local and state standards for fire safety.
- Policy S-2.7: Encourage the use of fuel breaks and vegetation clearance to maintain emergency access on public and private roads.
- Policy S-2.8: Ensure that infrastructure and assets that are essential for public health and safety are hardened against fire hazards and critical community services continue to function during and after a fire hazard event. - Policy S-2.9: Work with OCFA and water providers in the City to ensure adequate water supply and pressure is available to fight fires.

These recommended policies are responsive to SB 1241.
• Law Enforcement
- Policy S-3.3: Continue public education efforts and community outreach, including elementary and secondary school students, about crime and drug prevention measures.

By combining public education and community outreach efforts, this recommended policy would consolidate two existing policies into one. • Flooding and Stormwater Management
- Policy S-6.3: Prohibit new development in flood hazard zones. When not possible, require construction and operation strategies that would minimize the flood damage to new buildings within flood zones.
- Policy S-6.5: Require design and development practices for transportation and utilities infrastructure that would maintain the structural and operational integrity of essential public services during flooding. - Policy S-6.6: When feasible, locate new essential public facilities outside of flood hazard zones, including hospitals and health care facilities, emergency shelters, fire stations, emergency operation centers, and emergency communications facilities.

These policies are responsive to SB 379.
• Climate Change
All goals and policies in this section are new and responsive to SB 379. Please refer to Pages S-33 to S-35.

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• Emergency Preparedness
- Policy S-12.1: Coordinate with local Homeowners Associations, businesses, and surrounding jurisdictions to create public-private partnerships and support the development of local preparedness plans and multijurisdictional cooperation and communication agreements for emergency situations.

This recommended policy is responsive to SB 379.

Proposed Implementation Programs
The proposed Safety Element Update concludes with an implementation plan that identifies 18 general categories of safety issues and proposes implementation programs for all existing and proposed policies. Responsible agencies and potential funding sources are also identified. Please refer to Appendix B on Pages S-43 to S-49. This proposed format is typical in General Plans, elaborates upon the current Safety Element, and is responsive to the aforementioned legislation.

ENVIRONMENTAL REVIEW:

All updates to the City's General Plan are subject to the requirements of the California Environmental Quality Act (CEQA). The City prepared a Program Environmental Impact Report (EIR) for the comprehensive General Plan Update in 2009, State Clearinghouse No. 20080811100. The General Plan EIR was certified by the City Council concurrently with approval of the General Plan Update to the Land Use, Mobility, Conservation and Open Space, Community Services and Facilities, Safety, and Noise Elements on July 14, 2009.

Following review of the proposed 2021-2029 Housing Element Update and Safety Element Update, the City of Laguna Hills, as Lead Agency, has determined that the revisions to both elements are a Project subject to CEQA (Public Resources Code [PRC] Sections 21000 et seq.; California Code of Regulations, Title 14, Sections 15000 et seq.).

Based on review of the project and the General Plan EIR, the City has determined that the proposed Housing Element Update and Safety Element Update would not result in any new significant environmental impacts or a substantial increase in the severity of a previously identified significant impact. An Addendum to the General Plan EIR was prepared to document this conclusion. No further environmental review is required. (Public Resources Code§ 21166; CEQA Guidelines§§ 15162, 15164.) The EIR Addendum is included as Exhibit 2 to Attachment A.

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FISCAL IMPACT:

Failure to adopt a Housing Element Update, as approved by HCD, can lead to adverse financial impacts on the City. The State requires a certified housing element to be eligible for many State housing, transportation, and infrastructure funding grants.

ATTACHMENTS:
• Attachment A - Proposed Resolution including Exhibits 1-4 • Attachment B - January 11, 2022 Staff Report, No Attachments • Attachment C - May 24, 2022 Staff Report, No Attachments • Attachment D - HCD Review Letter, January 4, 2022

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RESOLUTION NO. 2022-06-28-X

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAGUNA HILLS, CALIFORNIA, ADOPTING AN

ADDENDUM TO THE LAGUNA HILLS GENERAL PLAN

PROGRAM ENVIRONMENTAL IMPACT REPORT, AS
PREVIOUSLY ADDENDED, AND ADOPTING RZNE-0003-
2020, AN UPDATE TO THE LAGUNA HILLS GENERAL
PLAN HOUSING ELEMENT FOR THE 2021-2029

PLANNING PERIOD AND AN UPDATE TO THE LAGUNA

HILLS GENERAL PLAN SAFETY ELEMENT, AS

REQUIRED BY STATE LAW
The City Council of the City of Laguna Hills, California, hereby finds, determines, declares, and resolves as follows:

WHEREAS, pursuant to Government Code Section 65300 et seq., cities and counties are required to adopt a comprehensive, long-term General Plan to guide the social, economic, and physical development of their communities; and WHEREAS, Government Code Section 65302(c) mandates that said General Plan include a Housing Element to adequately plan for the City’s existing and projected housing needs, including its share of the regional housing need; and WHEREAS, the City Council of the City of Laguna Hills adopted the Laguna Hills General Plan Update on July 14, 2009 comprehensively updating the Land Use, Mobility, Conservation and Open Space, Community Services and Facilities, Safety, and Noise Elements; and
WHEREAS, the City Council of the City of Laguna Hills certified the Program Environmental Impact Report for the Laguna Hills General Plan Update (State Clearinghouse No. 20080811100) on July 14, 2009 (“General Plan EIR”); and WHEREAS, the City Council of the City of Laguna Hills has since adopted five addenda to the General Plan EIR: (1) 2011 Addendum for the 2011 Urban Village Specific Plan Amendment; (2) 2012 Addendum for the Oakbrook Village Residential Project; (3) 2016 Addendum for the Five Lagunas Project; (4) 2018 Addendum for the Oakbrook Village Project; and (5) 2022 Addendum for the Village at Laguna Hills Project; these addenda are incorporated herein by reference and the phrase “General Plan EIR” throughout means the General Plan EIR as previously addended; and WHEREAS, the California Government Code requires that cities review and update their Housing Elements every eight (8) years, according to a schedule set forth by the State Department of Housing and Community Development (“HCD”); and

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WHEREAS, the City Council of the City of Laguna Hills adopted the 2013-2021 General Plan Housing Element (“5th Cycle Housing Element”) on October 8, 2013; and WHEREAS, the City of Laguna Hills has been assigned an allocation of 1,985 new housing units as its share of the Regional Housing Needs Assessment (“RHNA”) in Southern California; and
WHEREAS, the City proactively engaged the public in the Housing Element Update process by providing a variety of public engagement opportunities including: a community interest list; a dedicated webpage; a community survey; stakeholder interviews; at public workshops on June 3, 2021, August 5, 2021, March 26, 2022, and May 3, 2022; and at City Council meetings on November 10, 2020, October 26, 2021, January 11, 2022, May 24, 2022; and June 28, 2022; and
WHEREAS, in accordance with State law, the City of Laguna Hills prepared a first draft Housing Element Update for the 6th Cycle covering the 2021-2029 planning period; and
WHEREAS, the first draft 2021-2029 Housing Element Update was submitted to HCD on November 4, 2021, for a 60-day review and comment period; and WHEREAS, HCD issued a letter on January 4, 2022, finding that the draft element addresses many statutory requirements; however, revisions would be necessary to comply with State Housing Element Law; and WHEREAS, in accordance with State law, the City of Laguna Hills prepared a revised draft Housing Element Update for the 6th Cycle covering the 2021-2029 planning period, incorporating revisions to address HCD’s January 4, 2021, comments, and in accordance with California Government Code Sections 65580-65589.8; and WHEREAS, the City posted the revised Draft Housing Element Update for a 30- day public review and comment period from May 27, 2022 to June 27, 2022; and WHEREAS, all public comments received during the public comment period were submitted to the California Department of Housing and Community Development; and WHEREAS, in accordance with Government Code Section 65583, the Housing Element (2021-2029) complies with the duty to Affirmatively Further Fair Housing; and WHEREAS, the 2021-2029 Housing Element Update and Safety Element Update comply with the requirements of State law and conform to the purposes, intent and provisions of all the Elements of the City's General Plan; and WHEREAS, the City Council, at its May 24, 2022, regular meeting, directed staff to forward the Draft 2021-2029 Housing Element Update to HCD for a second 60-day review period; and

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WHEREAS, on June 3, 2022, as directed by the City Council and pursuant to Government Code section 65585(b)(1), the City submitted the revised Draft 2021-2029 Housing Element Update to HCD; and
WHEREAS, the City is required to update its General Plan Safety Element upon the next revision of the Housing Element in accordance with Government Code Section 65302; and
WHEREAS, the City has prepared the required update to the General Plan Safety Element, which does not require review by the California Board of Forestry and Fire Protection because no land within the City of Laguna Hills is designated as a Very High Fire Hazard Severity Zone; and
WHEREAS, a notice of the public hearing, describing the project, date, time, and location of hearing was published on June 16, 2022, in the Saddleback Valley News, posted to the City’s website, emailed to a distribution list of interested parties; and mailed to properties located within a 300-foot radius of the any candidate rezone site; a notice of the public hearing, describing the project, date, time, and location of hearing, was physically posted on June 17, 2022, at Laguna Hills City Hall, Laguna Hills Community Center, and Courtyard at La Paz shopping center; and WHEREAS, based on substantial evidence provided in the Housing Element, including the Housing Resources Section and Appendix C (Owner Interest Letters), the City Council finds that the existing uses on the sites identified to accommodate the City’s RHNA do not impede additional residential development during the period covered by the housing element; and
WHEREAS, the City has determined that the Housing and Safety Element Update would not result in any new significant environmental impacts or a substantial increase in the severity of previously identified significant environmental impacts and has therefore prepared an Addendum to the General Plan Environmental Impact Report (EIR) pursuant to Public Resources Code Section 21166 and CEQA Guidelines Sections 15162 and 15164 (the “Addendum to the General Plan EIR”); and WHEREAS, the City Council has considered information and testimony presented by City staff, the City’s Housing Element consultant, community residents and other interested parties at a public hearing held on June 28, 2022.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA HILLS,

CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The foregoing recitals set forth above are true and correct and are incorporated by reference herein.

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SECTION 2. Based upon evidence in the record, the City Council makes the following findings in support of the Housing and Safety Element Update:

1. California State law requires that each city adopt a general plan to describe its long-term goals and its policies and programs to achieve those goals. The Housing Element is a required element that must be updated every eight (8) years, according to a schedule set forth by the State Department of Housing and Community Development.

2. The City’s current General Plan Housing Element, adopted in 2013, reflects the environmental conditions, demographics, growth projections, and legal requirements of that time. The City has prepared a draft update to the General Plan Housing Element to incorporate current conditions, reaffirm community goals, and meet the requirements of State law for the 6th Housing Element cycle covering the Planning Period 2021-2029.

3. The City of Laguna Hills has been assigned an allocation of 1,985 new housing units as its share of the Regional Housing Needs Assessment (“RHNA”) for Southern California. The Housing Element Update includes a housing sites inventory to meet this requirement.

4. Government Code Section 65302 requires that upon the next update of the Housing Element after January 1, 2020, the Safety Element shall be reviewed and updated as necessary to identify residential developments in hazard areas that do not have at least two emergency exits. The Draft Safety Element has been updated to contain the required analysis.

5. In accordance with Government Code Section 65352, the City referred the Draft Housing and Safety Element Update to the required agencies and entities, and provided each with the time required by statute in which to comment.

SECTION 3. In accordance with Section 9-92.080 of the City of Laguna Hills Development Code, the following findings for approving General Plan Amendment No.

RZNE 0003-2020 are made:

1. That the amendment or plan is consistent with the intent of the goals and policies of the General Plan as a whole, and is not inconsistent with any element thereof:

The amendments will replace the current Housing Element with the 2021- 2029 Housing Element Update and replace the current Safety Element with the Safety Element Update, as required by State law. The amendments are internally consistent with the goals and objectives, and policies of the General Plan, including the Land Use Element. The Housing Element Update identifies the availability of adequate sites to accommodate the City’s share of the Regional Housing Need on sites that have been previously identified for

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residential development, including the Urban Village Specific Plan, and anticipated development including Oakbrook Village, the Village at Laguna Hills, and the Via Lomas Planned Community opportunity site, all consistent with the City’s Land Use Element. Candidate rezone sites are identified in the Housing Element Update Housing Program for future General Plan Amendment and Development Code Amendment consideration.

2. That the amendment or plan is necessary to prescribe reasonable controls and standards for affected land uses to insure compatibility and integrity of those uses with other established uses:

The amendments identify issues, strategies, and programs that focus on neighborhood and housing preservation. The amendments will protect and enhance established neighborhoods while helping the City evolve into a more integrated, walkable, and cohesive community with an identifiable center in the Urban Village.

3. That the amendment or plan is necessary to provide reasonable property development rights while protecting environmentally sensitive land uses and species:

The Housing Element Update provides an eight-year housing plan for the City, fulfilling state laws related to housing elements. The Housing Element Update facilitates densities to be balanced by architectural context, with highquality objective design standards, and transit and pedestrian mobility. As proposed, the Housing Element Update policies and programs are focused on promoting mixed-use and workforce housing within close proximity to existing public spaces, transit stops, retail centers, and employment centers. The Housing Element Update also supports residential design that fosters livable and sustainable communities within the framework of the City’s existing built environment, while preserving natural open space areas. Although the Housing Element Update facilitates the development of housing, specific future residential development projects are subject to the development standards and permit processes of the Laguna Hills Development Code and land use policies of the Laguna Hills General Plan. While the Housing Element Update will have no significant effect on the environment as proposed, subsequent rezone efforts and analysis of the potential impacts of specific future residential development projects on the environment and surrounding properties will be performed during the rezone process, including noticed public hearings with the City Council, and as subsequent development plans for future residential development projects are prepared and submitted to the City for review. Accordingly, the proposed Housing Element Update will not adversely affect sensitive land uses on surrounding properties or the surrounding environment, and does not propose to decrease any development rights by altering density, development standards, or use of property.

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The Safety Element Update includes changes to the 2009 Safety Element to comply with subsequent State legislation. The changes provide additional direction and detail which will further protect the community from potential risks associated with seismic and geologic activity, fire, neighborhood safety, hazardous materials and waste, nuclear power, flood, stormwater, and climate change. Emergency preparedness planning, such as identifying actions needed to manage crisis situations, is also addressed. Accordingly, the Safety Element Update will not adversely affect surrounding properties or the surrounding environment.

4. That the plan or amendment is necessary to correct discrepancies in standards or policies within the plan area or land use category:

The amendments are necessary to update the City’s current Housing Element consistent with State housing law, which requires that the Housing Element be updated for the 2021-2029 planning period in the SCAG region. The amendments include updating the City’s Regional Housing Needs Assessment (RHNA) obligation of 1,985 dwelling units the planning period, the demographic and housing characteristics and trends, and housing sites inventory. The Safety Element Update brings that Element into compliance with State legislation enacted since the 2009 Safety Element was adopted, including specific environmental risks and plans to manage crisis situations.

5. That the plan or amendment is necessary to protect the general health, safety, or general welfare of the community as a whole:

The Housing Element Update contains a variety of resources that are available for the development, rehabilitation, and preservation of existing and new housing stock in the City for the purposes of protecting the general health, safety, and general welfare of the community as a whole. Specifically, the Housing Element Update identifies housing programs that assist lowerand moderate-income residents, disadvantaged groups, and those with special housing needs. In addition, regulations established in the Laguna Hills Development Code implement general health, safety and general welfare objectives of the Laguna Hills General Plan. The Housing Element Update identifies issues, strategies, and programs that focus on neighborhood and housing preservation, housing availability, and equal housing opportunity. Preserving the City’s residential neighborhoods and maintaining the City’s housing stock are essential steps to retaining the City’s livability and character. Providing a greater diversity of housing types, such as multifamily apartments, condominiums, townhomes, and senior housing facilities, will allow both younger and older generations of Laguna Hills’ residents to remain in the community. Housing variety will also enable citizens from a wide range of economic levels to live within the City.

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The Safety Element Update includes changes to the 2009 Safety Element to comply with subsequent State legislation. The changes provide additional direction and detail which will further protect the community from potential risks associated with seismic and geologic activity, fire, neighborhood safety, hazardous materials and waste, nuclear power, flood, stormwater, and climate change. Emergency preparedness planning, such as identifying actions needed to manage crisis situations, is also addressed. Accordingly, the Safety Element Update serves to protect the general health, safety, and general welfare of the community.

SECTION 4. The City Council has reviewed and considered the General Plan EIR, as addended, including the impacts and mitigation measures identified therein (Exhibit 1) and the Addendum to the General Plan Final EIR (Exhibit 2). The Addendum to the General Plan EIR reflects the City’s independent judgement and analysis.

Pursuant to "CEQA", the City Council has determined that no additional environmental review is required. (Public Resources Code Section 21166; CEQA Guidelines Sections 15162, 15164.) The City Council hereby adopts the Addendum (Sixth) to the General Plan EIR. The City Council directs staff to post a notice of determination accordingly.

SECTION 5. The City Council hereby adopts the Housing Element Update, attached to this resolution as Exhibit 3, and Safety Element Update attached to this resolution as Exhibit 4. These elements, together with the General Plan Update (adopted on July 14, 2009), all of which are incorporated herein by this reference, shall constitute the General Plan for the City of Laguna Hills.

SECTION 6. In the event the Housing Element and/or Safety Element Update is inconsistent with the provisions of any other resolution, policy, or practice adopted by the City Council prior to the effective date of this resolution, the provisions of this resolution and the Housing Element Update and/or Safety Element Update shall control and shall take precedence.

SECTION 7. This resolution shall take effect on the 31st day following adoption.

SECTION 8. The City Council hereby authorizes and directs the Community Development Director to make minor modifications to the Housing Element Update adopted herein to address subsequent comments provided by the Department of Housing and Community Development (HCD) that are necessary to obtain state certification, provided such modifications are minor and do not constitute a substantial modification, subject to the approval of the City Manager and City Attorney.

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PASSED, APPROVED, AND ADOPTED this 28th day of June, 2022. ____________________________________

DAVE WHEELER, MAYOR
ATTEST:
______________________________________

MELISSA AU-YEUNG, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF LAGUNA HILLS )
I, Melissa Au-Yeung, City Clerk of the City of Laguna Hills, California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Resolution No. 2022-06-28-X adopted by the City Council of the City of Laguna Hills, California, at a Regular Meeting thereof held on the 28th day of June 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(SEAL)
_____________________________________

MELISSA AU-YEUNG, CITY CLERK

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List of Exhibits:

Exhibit 1: General Plan Update Program EIR and Subsequent Addenda Exhibit 2: Addendum (Sixth) to the General Plan EIR
Exhibit 3: 2021-2029 Housing Element Update
Exhibit 4: Safety Element Update

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EXHIBIT 1

GENERAL PLAN UPDATE PROGRAM EIR AND

SUBSEQUENT ADDENDA, ON FILE AT THE CITY
CLERK’S OFFICE AND AVAILABLE ONLINE:

General Plan Update Program EIR
https://www.lagunahillsca.gov/DocumentCenter/View/
3666/GP-UPDATE-PEIR
Program EIR Addendum 1
https://www.lagunahillsca.gov/DocumentCenter/View/
3667/PEIR-ADDENDUM-1
Program EIR Addendum 2
https://www.lagunahillsca.gov/DocumentCenter/View/
3668/PEIR-ADDENDUM-2
Program EIR Addendum 3
https://www.lagunahillsca.gov/DocumentCenter/View/
3669/PEIR-ADDENDUM-3
Program EIR Addendum 4
https://www.lagunahillsca.gov/DocumentCenter/View/
3670/PEIR-ADDENDUM-4
Program EIR Addendum 5
https://www.lagunahillsca.gov/DocumentCenter/View/
5877/Addendum-to-the-City-of-Laguna-Hills-GeneralPlan-Update-EIR-Village-at-Laguna-Hills-Project

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EXHIBIT 2

ADDENDUM (SIXTH) TO THE GENERAL PLAN EIR

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June 2022 | General Plan EIR Addendum

ADDENDUM TO THE GENERAL PLAN EIR
SCH No. 20080811100

FOR THE
2021–2029 HOUSING ELEMENT
AND 2021 SAFETY ELEMENT UPDATE
City of Laguna Hills
Prepared for:

City of Laguna Hills
Larry Longenecker, AICP
Community Development Director
24035 El Toro Road
Laguna Hills, California 92653
949.707.2670
Prepared by:

PlaceWorks
Miles Barker, Project Planner
101 Parkshore Drive, Suite 112
Folsom, California 95630
916.276.0616
[email protected]
www.placeworks.com

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Table of Contents
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Section Page

1. ADDENDUM TO THE ADOPTED GENERAL PLAN EIR............................................................... 1

1.1 BACKGROUND ................................................................................................................................................1

1.2 GENERAL PLAN EIR AND FINDINGS...................................................................................................3

1.3 PROJECT SUMMARY......................................................................................................................................4

2. CEQA ANALYSIS .......................................................................................................................... 29

2.1 ENVIRONMENTAL ANALYSIS – SUBSEQUENT ENVIRONMENTAL REVIEW....................29

2.2 FINDINGS........................................................................................................................................................41 Table Page
TABLE 1-1 SUMMARY OF PROGRAM CHANGES BETWEEN EXISTING HOUSING ELEMENT AND 2021–2029 HOUSING ELEMENT.....................................................................................................6 TABLE 1-2 NEW AND AMENDED SAFETY ELEMENT GOALS AND POLICIES........................................14 Appendices Page
APPENDIX A: UNDERUTILIZED, CANDIDATE REZONE SITES ............................................................................... 43

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1.Addendum to the Adopted General Plan EIR

1.1 BACKGROUND
The proposed 2021–2029 Housing Element and 2021 Safety Element (proposed project) will replace the existing 2014–2021 Housing Element and the existing 2009 Safety Element which serves as the City of Laguna Hills’ (City’s) guiding policy document to meet future projected housing needs for all the City’s economic levels as expressed by the state required regional housing needs assessment (RHNA), and on safety and climate adaptation, respectively. The Housing Element and Safety Element are two of seven elements of the City’s General Plan.

The General Plan is the foundation development policy document for Laguna Hills. It defines the framework by which the physical, economic, and human resources of the city are to be managed and used over time. The General Plan acts to clarify and articulate the intentions of the City with respect to the rights and expectations of the public, property owners, and prospective investors and business interests. The General Plan informs these citizens of the goals, objectives, policies, and standards for development of the city and the responsibilities of all sectors in meeting these. While the General Plan Environmental Impact Report (EIR) did not specifically address the proposed project, the policies in the General Plan address the physical impacts resulting from anticipated development in Laguna Hills.

As policy documents, the Housing Element and Safety Element of the General Plan encourages the provision of affordable housing within the housing development projected within the existing land use designations in the Land Use Element of the General Plan and the implementation of safety and emergency measures in future development, respectively. The proposed project requires future changes to the Land Use Element that will change the allowable land uses to meet the RHNA. However, the selected sites were already designated for intense urban development in the Land Use Element of the existing General Plan, only the types of use will change. The Housing Element and Safety Element do not propose or approve site-specific development. Future development would be subject to applicable City Codes and would be guided by the relevant Housing Element policies. The modifications in the Housing and Safety Elements were mandated by state law, respond to directives from HCD, or eliminate programs where the City has already completed the identified task.

This document serves as the environmental documentation for the City’s proposed 2021–2029 Housing Element and 2021 Safety Element update. This addendum to the City of Laguna Hills’ General Plan EIR, certified in June 2009 (State Clearinghouse Number 20080811100), demonstrates that the proposed project would not trigger any of the conditions described in Public Resources Code Section 21166 or the California Environmental Quality Act (CEQA) Guidelines Section 15162 calling for further environmental review.

1.1.1 Meeting Laguna Hills’ RHNA
California Government Code Section 65584 requires that each city and county plan to accommodate a fair share of the region’s housing construction needs. The Southern California Association of Governments (SCAG) prepares the RHNA for the region based on existing and projected regional trends in population

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growth, household sizes, job accessibility, and transportation access. While the City must plan for and help facilitate the development of 1,985 new homes in the community, it is not obligated to build these units. Because projects often vary in size and density, and to comply with the state No-Net-Loss housing law, the City will create a surplus of sites available to meet the City’s RHNA allocation. As shown in Table 1-1, the City’s surplus unit capacity is 1,381, composed of 924 lower-income units, 51 moderate-income units, and 406 above moderate-income units.

Since Laguna Hills is a built-out community and there are no vacant sites suitable to meet the RHNA, the City must look to underutilized sites. For the Housing Element, underutilized parcels are defined as property that is either developed but could accommodate greater intensity or vacant land that is not currently zoned for residential uses. Three categories of underutilized sites include the following:

1. Underutilized Sites with Anticipated Projects
a. Oakbrook Village
b. The Village at Laguna Hills
c. Planned Community Via Lomas

2. Underutilized Sites, Candidates for Rezoning

3. Underutilized Sites, Village Commercial Zone
To satisfy the lower-income RHNA, the City will identify and rezone selected areas within the first year of the planning period. As identified in Appendix A of this Addendum, candidate rezone sites include properties from North Laguna Hills and Central Laguna Hills. In total, there are 20 properties encompassing approximately

55.57 acres identified for rezoning. Combined, these properties account for 1,452 lower income units.

As shown in Table 1-1, after accounting for anticipated development from ADUs, Oakbrook Village, the Village at Laguna Hills, the Planned Community Via Lomas, and underutilized sites in the VC zone, for the moderate and above moderate-income categories have been met and there is a remaining unaccommodated need of 528 units in the lower-income categories.

Table 1-1 Progress Towards RHNA
Income
Category RHNA

VC Zone
Sites
Anticipated Projects
Anticipated
ADUs
Subtotal
Progress
Towards
RHNA
Remaining
Need
Candidate
Rezone
Sites
RHNA
Surplus Oakbrook
Village
The Village
at Laguna
Hills
Planned
Community
Via Lomas
Lower 921 283 0 100 0 10 393 528 1,452 924
Moderate 354 0 50 350 0 5 405 -51 51
Above
Moderate 710 0 150 713 250 3 1,116 -406 406

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Total 1,985 283 200 1,163 250 18 1,914 528 1,452 1,381
Note: No sites identified in the 6th cycle land inventory for lower income were identified in the 5th or 4th for lower income.

The City does not have land adequately zoned to accommodate the 528 lower-income housing units.

Redevelopment with new mixed-use buildings is anticipated in several areas of the city. New mixed-use developments will likely have apartments and/or condominiums with a range of sizes and price points.

Pursuant to California Government Code Section 65583.2(c), the state equates units per acre with affordability and has established a default density of 30-units per acre for Laguna Hills to demonstrate accommodating lower-income housing. Therefore, at 30-units to the acre the remaining unaccommodated 528 units in the lowerincome category can be accommodated on 17.6 acres once rezoned to allow 30 units per acre. The City is proposing to allow up to 50 units per acre on the rezoned sites to allow for project flexibility in terms of size and density which would reduce the amount of area needed for rezone from 17.6 to 10.6 acres. For the sake of this analysis, it is assumed that the remaining unaccommodated 528 units in the lower-income category will be accommodated by rezoning certain sites in certain zones to allow 50 units per acre.

1.2 GENERAL PLAN EIR AND FINDINGS
The General Plan EIR addresses potentially significant impacts related to aesthetics, air quality, agricultural resources, biological resources, cultural resources, geology, soils, and mineral resources, hazards and hazardous materials, hydrology and water quality, land use and planning, noise, population and housing, public services and utilities, recreation, transportation and circulation, and global climate change.

Policies from the General Plan are identified in the General Plan EIR as reducing significant impacts from development to a less than significant level for the following environmental topic areas:
• Aesthetics – Scenic vistas and scenic resources, and visual character and quality. • Biological Resources – Sensitive vegetation communities, plant species, wetlands, wildlife, and conflicts with local ordinances and policies.
• Geology, Soils, and Mineral Resources – Faulting and seismicity, geology and soils. • Hydrology and Water Quality – Flooding.
• Land Use and Planning – Conflicts with existing land use policies, plans, or regulations. • Noise – Compliance with noise standards, groundborne vibration or noise, permanent ambient noise levels, and temporary or periodic increases in ambient noise levels. • Public Services and Utilities – Solid waste.

The General Plan EIR determined that implementation of the General Plan would result in significant and unavoidable impacts and/or cumulatively considerable significant and unavoidable impacts to the following environmental topics:

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• Air Quality
o Short-term Impacts: Implementation of the General Plan would result in significant shortterm construction-related air quality impacts at both the project and cumulative levels. o Long-term Impacts: The General Plan would result in significant long-term operational air quality impacts at both the project and cumulative levels. o SCAQMD Air Quality Management Plan: The General Plan would result in emissions in excess of thresholds for criteria air pollutants and precursors for which the region is in nonattainment. This would conflict with SCAQMD air quality planning efforts resulting in a significant project-level and cumulative impact.
o Impacts to Sensitive Receptors: With implementation of the General Plan, new or modified sources of toxic air contaminants (TACs) could be placed near existing sensitive receptors, and new sensitive receptors could be developed near existing sources of TACs resulting in a significant project level and cumulative impact.
• Public Services and Utilities
o Water Supply: New development and redevelopment pursuant to the General Plan would result in an increase in residential and nonresidential uses, which would result in the need for additional water supply. Future supply is uncertain, resulting in a significant project-level and cumulative impact.
• Global Climate Change
o Climate Change: The project’s incremental contribution to global climate change would be considered cumulatively significant because it would generate a substantial increase in GHG emissions relative to existing conditions.

The General Plan EIR included extensive mitigation measures designed to address the General Plan’s potentially significant environmental impacts. Those mitigation measures can be found, in full, in the General Plan EIR’s Mitigation Monitoring and Reporting Program.

The City has since adopted five addenda to the General Plan EIR: (1) 2011 Addendum for the 2011 Urban Village Specific Plan Amendment; (2) 2012 Addendum for the Oakbrook Village Residential Project; (3) 2016 Addendum for the Five Lagunas Project; (4) 2018 Addendum for the Oakbrook Village Project; and (5) 2022 Addendum for the Village at Laguna Hills Project. These addenda, including their technical appendices, are incorporated here by reference. The phrase “General Plan EIR” throughout means the General Plan EIR as previously addended.

1.3 PROJECT SUMMARY
CEQA requires the City to evaluate the environmental impacts associated with direct and reasonably foreseeable indirect physical changes to the environment. Most of the goals, policies, and programs from the previous Housing Element and Safety Element are continued through to the proposed 2021–2029 Housing

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Element and 2021 Safety Element. Table 1-2 includes the changes in goals or policies between the existing 2014–2021 Housing Element and the proposed 2021–2029 Housing Element. Modifications to the existing policies are identified in the text following Table 1-2.

Table 1-3 includes the changes in goals or policies between the existing 2009 Safety Element and the proposed 2021 Safety Element. As shown in Table 1-3, underlined text is used to depict additions to the proposed Safety Element and strikethrough text is used to indicate deletions.

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Table 1-2 Summary of Program Changes Between Existing Housing Element and 2021–2029 Housing Element Implementation Programs Progress Continue/Amend/Delete
Specific Implementation Program: Neighborhood and Housing Preservation H-1. Code Enforcement Program
The City of Laguna Hills will enforce building code regulations and abate code violations, nuisances, and existing uses, activities, buildings, or structures that pose a threat to public health, safety, or welfare. Enforcement activities will focus on property maintenance, such as eliminating derelict or abandoned vehicles, outdoor storage, or other situations that may constitute health, safety, or fire hazards.

Responsible Agency: Community Development Funding
Source: General fund
Time Frame: Ongoing
The City’s Code Enforcement staff continues to monitor and address complaints related to property maintenance. Staff investigated hundreds of complaints associated with housing or property maintenance and took appropriate steps to work with the property owner to resolve code violations or referred unresponsive owners to the City Attorney’s office for prosecution and/or issue Administrative Citations. The City’s program is highly effective and results in a 95- percent compliance rate within 30 days of the City receiving a violation. Complaints can be submitted to the City anonymously, which encourages residents to submit them.

Modify and continue as Program H-1. Code
Enforcement Program:

Code enforcement program will require that
owners proactively plan for tenant relocation
during renovations and minimize
displacement.

The code enforcement program will provide
information with a notice of violation,
including available funding programs.

H-2. State Franchise Tax Board Code Enforcement
To promote maintenance of existing rental properties, the City shall work with the California State Franchise Tax Board to enforce provisions of California Revenue and Taxation code Sections 17274 and 24436.5, which prohibit owners of substandard rental housing from claiming depreciation, amortization, mortgage interest, and property tax deductions of state income tax. The City will notify the State Franchise Tax Board if substandard rental housing is identified.

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: Ongoing
The City is not aware of any substandard housing within the community. If such housing is identified, the City will notify the California State Franchise Tax Board.

Continue as Program H-2. State Franchise
Tax Board Code Enforcement.

H-3. Housing Rehabilitation
The City will continue to work with the Orange County Housing and Community Services Department to receive rehabilitation loans and grants for low- and moderate-income homeowners and rental property owners, including senior/disabled households, to maintain housing stock.

Efforts will focus on rehabilitating approximately 148 units in the Aliso Meadows Condominium Development. The rehabilitation loan and grant program will use CDBG funds distributed by the County as appropriate.

The City will publicize the availability of this program in local newspapers, on the City’s website, at the Community Development Department, and in information items at Planning Agency Public Hearings. Modifications for accessibility/universal design are The City was awarded Community Development Block Grant (CDBG) funding in 2014 and 2015 ($80,000 each program year). Those funds were spent rehabilitating Aliso Meadows.

The City did not participate in the CDBG program in Fiscal Year (FY) 16/17, FY 17/18, and FY 18/19 due to staffing/resource limitations.

The City continues to monitor opportunities and will pursue funds as appropriate to further the housing goals of this Housing Element.

Modify and continue as Program H-3.

Housing Rehabilitation.

The City will create a rehabilitation program
that will be available to lower-income
households but also have citywide
applicability.

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Implementation Programs Progress Continue/Amend/Delete
eligible activities under this program (see also Housing Element Implementation Program H-6 and H-17).

Responsible Agency: Community Development
Funding Source: CDBG
Time Frame: Annually by September of each year or as otherwise required by the County CDBG schedule
H-4. At-Risk Units
The City will continue to pursue the extension of affordability controls for 51 units, either in the existing Rancho Moulton housing development or as part of new or redevelopment activities in the Via Lomas area or other areas of the City. The City will annually prepare a “Risk Assessment” report provided by the California Housing Partnership Corporation (CHPC). Projects determined high risk are those most likely to decline continued federal assistance because they currently have rents below market rate(s) and are owned by profit-motivated entities. The City will work with potential purchasers to preserve 51 units in the existing development or in new development by finding an interested non- profit entity and securing funding to acquire and preserve the property. The City will use the California Department of Housing and Community Development (HCD) resources listed on the HCD website, as well as other resources, to locate potential funding sources as needed for the preservation of affordable housing. As needed, the City will work with tenants of at-risk units and provide them with education regarding tenant rights, notification procedures, and conversion procedures. The City will also provide tenants in at-risk projects information from the Orange County Housing Authority regarding Section 8 rental assistance.

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: By January of each year.

The City monitored existing at-risk units and referred prospective tenants to the County of Orange regarding Section 8 housing.

Rancho Moulton apartments continued to participate in the County’s Section 8 rental assistance program, which requires the owner to renew their project-based vouchers annually.

Continue as Program H-4. At-Risk Units.

H-5. Foreclosure Referral Program
Based on current dynamics, the City seeks to address the increased incidence of residents facing foreclosure. The City will provide foreclosure information on the City’s website, and provide resources at the City to refer residents to external agencies to assist in reducing incidents of foreclosures in Laguna Hills.

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: January 2014
As necessary, the City referred people to the County’s foreclosure websites, which provides information regarding foreclosures.

Continue as Program H-5. Foreclosure
Referral Program.

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Implementation Programs Progress Continue/Amend/Delete
Specific Implementation Program: Neighborhood and Housing Preservation H-6. Urban Village Specific Plan Area for Housing Opportunities The City shall inform existing property owners and prospective developers that housing opportunities are available in the Urban Village Specific Plan area. Housing opportunities include market rate housing units and could also include housing for low and moderate income households, families, seniors, and special needs households. City staff will inform prospective developers at time of project application meeting(s).

Additionally, the City will promote the UVSP area on the City’s website and will also promote housing development incentives consistent with Chapter 9-72 of the Zoning Ordinance. The UVSP area will also be promoted through the City’s Economic Development Strategy (see the Land Use Element Implementation Program LU-14).

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: Ongoing; The City will post the information on the website by December 2013 and it will be updated annually.

The City met with multiple developers interested in development within the Urban Village Specific Area (UVSP) that may incorporate housing. Staff provided direction to the developers to a variety of development regulations and density-bonus provisions.

The City is working currently with the applicant, Merlone Geier Partners, on redevelopment of the mall site in the UVSP area. The City met with the owner of the mall site dozens of times since they purchased in 2013. The site was entitled in 2016 for 988 market-rate units. As of April 2021, Merlone Geier Partners is before the City Planning Agency with a request to modify the 2016 approval to increase the housing, and other features of the site, to include 1500 housing units, inclusive of 100-Low and 100-Mod units. This proposal, the Village at Laguna Hills, is still in the Public Hearing process.

Continue as Program H-6. Urban Village
Specific Plan Area for Housing
Opportunities.

H-7. Alicia Gateway for Housing Opportunities
The City shall inform existing property owners and prospective developers that housing opportunities are available in the Alicia Gateway. Housing opportunities could include market rate housing units and could also include housing for low and moderate income households, families, seniors and special needs households. City staff will inform prospective developers at time of project application meeting(s). Additionally, the City will promote Alicia Gateway on the City’s website and will also promote housing development incentives consistent with Chapter 9-72 of the Zoning Ordinance. Alicia Gateway will also be promoted through the City’s Economic Development Strategy (see the Land Use Element Implementation Program LU-14).

Responsible Agency: Community Development
Funding Source: CDBG
Time Frame: The information will be posted on the website by December 2013 and will be updated annually. Additionally, the City participates annually in the ICSC conferences to promote the opportunity areas in the City.

The City met with multiple developers interested in development within the Alicia Gateway neighborhood that may incorporate housing. Staff referred the developers to a variety of development regulations and density-bonus provisions. Staff processed an application for a residential care facility for elderly within the Alicia Gateway neighborhood. As of March 2021, it was under construction and expected to open in the fourth quarter of 2021.

Staff met with Van Daele Development and had developer and neighborhood meetings from 2014 to 2016. At least 10 meetings were held, including with the local neighborhood group. The developer relented to the wishes of the neighborhood group and the owner went in a different direction. Other owners opted to retain existing uses given neighborhood opposition to Van Daele project.

Delete.

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CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
Implementation Programs Progress Continue/Amend/Delete
H-8. Zoning Ordinance Update
The implementation of housing goals, policies, and programs will require updating the City’s Zoning Ordinance. In addition, certain City rules and regulations may constrain the development of housing affordable to low and moderate income households with special needs. To mitigate potential constraints and implement housing goals, policies, and programs, the City will update the following regulations in the Zoning Ordinance:

1. Consolidate and remove duplicitous definitions of manufactured housing and mobile homes and ensure consistency in the Zoning Ordinance, use regulations, and development standards.

2. Reduce the open space requirement in the High Density Residential district;

3. Increase the maximum lot coverage requirement in the Mixed Use district.

4. Transitional and supportive housing will be permitted as a residential use and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone (Government Code Section 65583 (a)(5)).

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: October 2014
Manufactured housing and mobile homes are treated as different land uses in Municipal Code Section 9-10.050, Uses within Zones.

However, they have the same definition in the code. This program will be continued to address this.

The City has not yet reduced the open space requirement in the HighDensity Residential district or increased maximum lot coverage in the Mixed-Use district.

In December 2012, City Council adopted an amendment to the City’s Municipal Code to allow emergency shelters by-right in the mixeduse zone and to allow supportive housing and transitional housing as residential uses in all residential zones.

Modify and continue as Program H-7.

Zoning Ordinance Update to address any
other updates to the Zoning Ordinance
needed to comply with State law.

H-9. Second Units
The City shall continue to implement the Second Unit provisions of the Zoning Ordinance consistent with state law. The City will continue to permit second units by right in all residential zones of the City, requiring only ministerial approval. Residential second units provide a viable option for providing additional housing opportunities which could include affordable housing for lower income seniors, single persons, or small households within existing neighborhoods.

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: Ongoing
The City has updated the Second Unit provisions to comply with the new State Accessory Dwelling Unit (ADU) regulations. Staff will continue to monitor any future updates to ADU law.

Modify and continue as Program H-8.

Accessory Dwelling Units.
“Second Units” will be changed to
“Accessory Dwelling Unit (ADU).” City will
update the Zoning Ordinance to comply with
all recent ADU laws. City will promote ADUs
to property owners.

H-10. CDBG Funding for Shelter for the Homeless
The City shall apply for United States Department of Housing and Urban Development CDBG funds and allocate a portion of such funds to subrecipients who provide shelter for the homeless.

Responsible Agency: Community Development
Funding Source: CDBG
Laguna Hills is a non-entitlement city and therefore relies on the County of Orange to receive and administer CDBG funding on the City’s behalf. The City relied on the County of Orange to coordinate a comprehensive regional Continuum of Care (CoC) strategy that includes the participation of all 34 cities in Orange County, County agencies, the County’s homeless housing and services providers, and other community groups (including non-profit, local governmental Continue as Program H-12. CDBG Funding
for Shelter for the Homeless

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Packet Pg. 344 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDAT E

CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
Implementation Programs Progress Continue/Amend/Delete
Time Frame: Annually by September of each year or as otherwise required by the County CDBG schedule
agencies, faith-based organizations, the homeless and formerly homeless, interested business leaders, schools, and many other stakeholders) to identify the gaps and unmet needs of the County’s homeless. Through cooperative agreement between the City and the County, the County has pursued funding for housing and related social services for the City’s special-needs population.

The City has retained the non-profit service provider Mercy House to help homeless residents obtain services.

H-11. Continuum of Care Funding and Consolidated Plan Participation The City shall continue to participate in the Orange County Consolidated Plan Programs and in the Orange County Continuum of Care local housing planning process to facilitate obtaining funds for affordable housing and related social services for special needs populations. The Continuum of Care local housing and service delivery system focuses on homeless prevention, outreach, and assessment, emergency shelters, transitional housing, supportive services, and permanent supportive housing for homeless individuals and families. The City shall pursue homeless assistance grants through the Continuum. The City will assist public and private nonprofit housing developers in preparation of funding applications for special needs populations.

Responsible Agency: Community Development
Funding Source: CDBG
Time Frame: Annually by September of each year or as otherwise required by the County CDBG schedule.

Laguna Hills is a non-entitlement city and therefore relies on the County of Orange to receive and administer CDBG funding on the City’s behalf. The City relied on the County of Orange to coordinate a comprehensive regional CoC strategy that includes the participation of all 34 cities in Orange County, County agencies, the County’s homeless housing and services providers, and other community groups (including non-profit, local governmental agencies, faithbased organizations, the homeless and formerly homeless, interested business leaders, schools, and many other stakeholders) to identify the gaps and unmet needs of the County’s homeless.

Through cooperative agreement between the City and the County, the County has pursued funding for housing and related social services for the City’s special-needs population.

Modify and continue as Program H-13.

Continuum of Care Funding and
Consolidated Plan Participation.

H-12. Section 8 Rental Assistance
The Orange County Housing Authority currently administers the Section 8 Rental Assistance program on behalf of the City. Currently the program assists renter households in the City of Laguna Hills. Based on future congressional appropriations, the County Housing Authority will apply for additional funding which will enable the Housing Authority to administer additional vouchers for families, seniors, and disabled persons over the Housing Element planning period. The City of Laguna Hills will continue to provide referral services and information to the City’s residents.

Responsible Agency: Community Development
Funding Source: HUD
Time Frame: Ongoing
The City continued to refer interested residents to the Orange County Housing Authority.

Modify and continue as Program H-14.

Section 8 Rental Assistance.

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Packet Pg. 345 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDATE

CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
Implementation Programs Progress Continue/Amend/Delete
H-13. Affordable Housing Developer Partnerships
The City will continue to develop partnerships with mainstream and/or special needs affordable housing developers that could result in set-asides in existing and planned low income housing projects. These partnerships may include incentives (such as expedited processing, fee waivers, and density bonuses) provided by the City to facilitate the setasides for planned low income units and actively cooperating with the owners of existing units to secure appropriate federal funding necessary to maintain existing affordability.

The City will promote lower income housing development incentives on the City’s website, consistent with Chapter 9-72 of the Zoning Ordinance. The City will use HCD’s housing resources website to locate available sites and potential funding sources as needed for the development of affordable housing.

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: Ongoing; The information will be posted on the website by December 2013 and updated annually.

The City met with multiple developers interested in development within the city that might incorporate affordable housing into their projects. Staff referred the developers to a variety of development regulations and density bonus provisions.

The City is working currently with the applicant, Merlone Geier Partners, on redevelopment of the mall site in the UVSP area. The City met with the owner of the mall site dozens of times since purchase in 2013. The site was entitled in 2016 for 988 market-rate units. As of April 2021, a new project for the mall site, the Village at Laguna Hills, is before the Planning Agency to include 1500 units, inclusive of 100-Low and 100-Mod units. The Public Hearing process is ongoing.

Modify and continue as Program H-15.

Affordable Housing Developer
Partnerships.

Specific Implementation Program: Equal Housing Opportunity H-14. Fair Housing Program
The City will continue to maintain services and personnel to receive housing complaints and continue to address or resolve complaints. The City will also continue to refer fair housing complaints to the Fair Housing Council if they cannot be resolved at the City level. The City will also continue to disseminate written literature about fair housing laws, resident rights, and remedies for fair housing complaints The City will ensure that fair housing literature is available in the Community Development Department, on the City’s website, and at the Laguna Hills Technology Library. The City will monitor these sites to ensure timely, accurate information is available.

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: Ongoing; The information will be posted on the website by December 2013 and updated annually.

City staff continued to monitor and respond to housing complaints and referred residents to various agencies that provide fair housing services in Orange County.

The City continued to refer tenants to the Fair Housing Council as needed. Issues were mostly related to the condition of dwellings, which the City investigated through its code enforcement powers.

Where the issues fell outside of the City’s ability to resolve, residents were referred to fair housing for further assistance. The City disseminated written literature, as described in the program.

Modify and continue as Program H-16. Fair
Housing Program to comply with Assembly
Bill 686.

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Packet Pg. 346 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDAT E

CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
Implementation Programs Progress Continue/Amend/Delete
H-15. Universal Design Features in Housing
The City recognizes that all people have varying abilities and that many people will encounter temporary or permanent changes in ability to conduct the tasks necessary for daily living throughout their lives. Universal design features create housing suited for people of all abilities and can allow residents to stay in their homes over their lifetime.

The City will explore programs, an ordinance, and incentives to encourage provision of universal design features in housing. The City will refer to the HCD website for guidelines and a model ordinance consistent with the principles of universal design. The universal design ordinance will address such topics as findings, definitions, scope and application, standards, and enforcement. City staff will encourage prospective developers to provide universal design features at the time of project application meeting(s).

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: October 2014
Staff continued to explore programs and incentives related to universal design in housing.

Update and continue as Program H-17.

Accessibility in Housing.

City will continue to implement Municipal
Code Chapter 9-93, Reasonable
Accommodations for Persons with
Disabilities.

Specific Implementation Program: Implementation and Monitoring H-16. Annual Progress Reports
The City will report annually on progress toward implementation of the Housing Element and residential development activities citywide.

State law requires that each local jurisdiction submit an annual progress report on the implementation of its General Plan. For the Housing Element, the reporting must include the following:

1. Annual building activity by unit type, tenure, affordability level, deed restriction, and financial assistance;

2. Progress in achieving its RHNA;

3. Program-by-program account of implementation status; and

4. Outcome/disposition of development applications identifying location, size, type, and status of residential development proposals for citywide use and for submittal to Center for Demographic Research at California State University and to the California Department of Finance.

Responsible Agency: Community Development
Funding Source: General Fund
Time Frame: Prepare an annual report for submittal to HCD by April 1 of each year in the planning period
The City reported annually on the progress toward the
implementation of the Housing Element through the preparation of Annual Progress Reports (APRs), which included progress on Housing Element programs and residential development activities.

Each year, the APRs were reviewed and approved by the City Council and transmitted to the HCD, as directed by California Government Code Section 65400.

Continue as Program H-18. Annual
Progress Reports.

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Packet Pg. 347 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDATE

CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
Implementation Programs Progress Continue/Amend/Delete
H-17. Housing Issues Monitoring
The City will monitor existing and proposed affordable housing developments in the City.

The City will also monitor legislation, trends, and policy issues related to the development and maintenance of affordable housing in Laguna Hills. Ongoing efforts throughout the planning period include but are not limited to:

1. Monitoring development proposals in the City that could be used to maintain, increase, or enhance affordable housing opportunities;

2. Monitoring and market housing opportunities in the UVSP area, including affordable housing opportunities, through Planning Agency public hearings and project preapplication meetings;

3. Monitoring existing programs designed to preserve assisted housing developments for low income households to determine whether additional actions are needed to protect these developments;

4. Monitoring of mobile home park for conversion to nonresidential use;

5. Attending housing and legislative review conferences;

6. Attending training workshops;

7. Participating in regional planning efforts coordinated by the SCAG; and

8. Interfacing with City agencies and the public.

Responsible Agency: Community Development Funding
Source: General Fund
Time Frame: Ongoing
City staff continued to monitor existing and proposed affordable housing developments in the city, as well as legislation, trends, and policy issues related to the development and maintenance of affordable housing.

The City entitled 1,277 units – 289 moderate-income units built. The City is working currently with the applicant, Merlone Geier Partners, on redevelopment of the mall site in the UVSP area. The City met with the owner of the mall site dozens of times since purchase in 2013. The site was entitled in 2016 for 988 market-rate units. As of April 2021, a revised mall development proposal, Village at Laguna Hills, is pending before the Planning Agency to include 1500 units, inclusive of 100-Low and 100-Mod.. The City retained several consultants to advise on the redevelopment of the mall site from 2019 to 2021.

City staff attended Orange County Housing Summits, California American Planning Association (APA) conferences, League of California Cities Leg. Review Sessions, County of Orange Homeless SPA meetings, OCP-2018, Connect SoCal, SCAG RHNA meetings, South County Working Group (OCTA), local grass roots housing groups (Kennedy Commission & Welcoming Neighbors), Urban Land Institute (ULI), Building Industry Association of Southern California, Orange County Chapter (BIA/OC), and Orange County Housing Finance Trust.

Continue as Program H-19. Housing Issues
Monitoring.

H-20. Local Housing Efforts Coordination
The City shall coordinate local housing efforts with appropriate federal, state, regional, and local government and/or agencies and cooperate in implementation of intergovernmental housing programs to ensure maximum effectiveness in solving local and regional housing problems. The City will submit CDBG applications to assist in preserving existing affordable housing stock.

Responsible Agency: Community Development
Funding Source: CDBG and General Fund
Time Frame: December 2009
The City coordinated local housing efforts with federal, state, regional, and local government agencies and cooperated in implementation of intergovernmental housing programs to ensure maximum effectiveness in solving local and regional housing problems. The City coordinated with Orange County, and other cities in the South Special Planning Area to coordinate response to homelessness in south Orange County. The City applied to HCD and was approved for Senate Bill 2 and LEAP grants for Housing Element preparation and ADU objective standards.

Continue as Program H-20 Local Housing
Efforts Coordination.

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CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
Table 1-3 New and Amended Safety Element Goals and Policies Proposed Goals and Policies
Geology and Seismicity
Policy S-1.1: Investigate specific geologic conditions underlying all new proposed significant development or redevelopment proposals in areas where potential fault rupture, liquefaction, slope instability, ground failure, subsidence, or other geologic hazards are suspected.

Policy S-1.2: Reduce the risk of impacts from geologic and seismic hazards by applying Apply current and proper land use planning, development engineering, building construction, and retrofitting requirements.

Policy S-1.3: Require that grading activities be designed, per City standards, to avoid obstructing or impeding the natural flow of stormwaters, causing accelerated erosion, or aggravating any existing flooding condition.

Urban and Wildland Fire Hazards
Policy S-2.1: Provide a sufficient level of fire protection service to reduce the risk from urban and wildland fires.

Policy S-2.2: Continue to involve the Orange County Fire Authority (OCFA) personnel in the development review process for new development and redevelopment activities.

Policy S-2.3: Continue Work with OCFA Community Educators on public education efforts, including elementary and secondary school students, and training programs about fire hazards and hazard prevention measures. and evacuation routes.

Policy S-2.4: Integrate Continue to work with OCFA to integrate new technologies and fire prevention concepts into the design and construction of new development projects and redevelopment activities.

Policy S-2.5: Reduce Continue to work with OCFA to reduce the risk of wildland fire hazards by requiring fire -resistant landscaping, and incorporate site design and maintenance standards for new development located in areas of high wildfire risk.

Policy S-2.6: Enforce the California Fire Safe Standards and City’s Building Code and Fire Code to support fire safety in new and existing developments. Require that new developments demonstrate compliance with local and state standards for fire safety.

Policy S-2.7: Encourage the use of fuel breaks and vegetation clearance to maintain emergency access on public and private roads.

Policy S-2.8: Ensure that infrastructure and assets that are essential for public health and safety are hardened against fire hazards and critical community services continue to function during and after a fire hazard event.

Policy S-2.9: Work with OCFA and water providers in the city to ensure adequate water supply and pressure is available to fight fires.

Law Enforcement
Policy S-3.1: Provide a sufficient level of law enforcement service to reduce the risk of criminal activity and terrorism.

Policy S-3.2: Continue to involve law enforcement personnel in the development review process for new development and redevelopment activities.

Policy S-3.3: Continue public education efforts and community outreach, including elementary and secondary school students, about crime and drug prevention measures.

Policy S-3.4: Continue community outreach programs and promote community involvement in crime prevention.

Policy S-4.1: Use Integrate appropriate Crime Prevention through Through Environmental Design (CPTED) principles in the design or redevelopment of projects and buildings.

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CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
Proposed Goals and Policies
Hazardous Materials and Nuclear Power Production
Policy S-5.3: Continue to cooperate with the Orange County Fire Authority and Orange County Integrated Waste Management Department to address hazardous materials.

Policy S-5.5: Reduce Coordinate with the risks associated with County, Caltrans, rail line authorities, and other hazardous materials regulating agencies, to identify designated routes for the ground transportation of hazardous materials through Laguna Hills.

Policy S-5.6: Coordinate public education and emergency response activities addressing nuclear power production risks with other local, state, and federal, and State agencies.

Flooding and Stormwater Management
Policy S-6.3: Prohibit new development in flood-hazard zones. When not possible, require construction and operation strategies that would minimize the flood damage to new buildings within flood zones.

Policy S-6.34: Continue to implement National Pollutant Discharge Elimination System (NPDES storm water) stormwater permits issued by the State and Regional Water state and regional water quality control boards.

Policy S-6.5: Require design and development practices for transportation and utilities infrastructure that would maintain the structural and operational integrity of essential public services during flooding.

Policy S-6.6: When feasible, locate new essential public facilities outside of flood hazard zones, including hospitals and health care facilities, emergency shelters, fire stations, emergency operation centers, and emergency communications facilities.

Climate Change - Air Quality
Goal S-7: A resilient community with healthy air quality that minimizes health risk from pollution sources.

Policy S-7.1: Work with the South Coast Air Quality Management District to monitor air pollutants of concern in the city.

Policy S-7.2: Encourage the siting of new developments for sensitive receptors, such as schools, playgrounds, childcare centers, senior services and housing, and health care facilities, away from significant pollution sources.

Policy S-7.3: Support training and workshop opportunities for residents to learn about strategies to promote safe indoor air quality and protect themselves from poor outdoor air quality, such as wildfire smoke.

Policy S-7.4: Prioritize new street tree plantings and increase the tree canopy to reduce community health impacts from exposure to elevated concentrations of diesel, ozone, and PM2.5.

Climate Change - Drought
Goal S-8: A resilient community able to adapt to short-term and long-term drought impacts, including reduced water supply.

Policy S-8.1: Use the most current data to maintain a continuous understanding of drought impacts in Laguna Hills, including natural resources.

Policy S-8.2: Prepare for a reduced, long-term water supply resulting from more frequent and severe drought events, including working with state and regional water providers to implement extensive water conservation measures and ensure sustainable water supplies.

Policy S-8.3: Transition towards less water-intensive landscaping on City-owned properties and encourage native, drought-tolerant, and low-water use landscaping on private properties.

Policy S-8.4: Work with water agencies to ensure that vulnerable populations, including households with financial instability and persons that spend an extended amount of time outdoors have access to safe and affordable water.

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CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
Proposed Goals and Policies
Policy S-8.5: Install water-efficient irrigation at the City’s trees to maintain a thriving urban forest.

Policy S-8.6: Coordinate with water agencies to explore ways to improve and increase storage capacity and generation efficiency.

Climate Change – Extreme Heat and Warm Nights
Goal S-9: A population and community resilient to extreme heat and warm nights.

Policy S-9.1: Provide an equitable distribution of shade structures, trees, and drinking fountains at bus stops, city parks, and other public outdoor spaces.

Policy S-9.2: Weatherize city buildings and adopt standards encouraging private property owners to weatherize buildings to maintain a comfortable and healthy indoor temperature.

Policy S-9.3: Provide an equitable distribution of cooling centers throughout the city where residents and visitors seek relief from extreme heat and establish a temperature threshold for when these facilities open.

Policy S-9.4: Work with electricity providers to maintain access to electricity and prepare for potential brown-outs and black-outs during extreme heat events, to the extent feasible in the city.

Policy S-9.5: Support the restoration of natural habitats that are vulnerable and may be degraded from extreme heat, drought, and extreme storms.

Climate Change – Human Health Hazards
Goal S-10: A community and population safe from vector-borne health hazards.

Policy S-10.1: Continue to collaborate with local and regional partners, such as the Orange County Mosquito and Vector Control District (OCVCD), to reduce vectors within the city.

Policy S-10.2: Distribute informational material for property owners on methods to reduce vectors, such as eliminating standing water and open refuse containers as provided by the OCVCD.

Policy S-10.3: Support the implementation of vector abatement measures in public spaces, including parks and along bicycle paths and sidewalks in a manner that maintains public and environmental health in coordination with OCVCD.

Climate Change – Extreme Storms
Goal S-11: A population and community resilient to extreme storm events.

Policy S-11.1: Collaborate with regional partners to provide messaging to residents and visitors on emerging weather conditions and forecasted extreme weather.

Policy S-11.2: Coordinate with local and regional organizations to provide evacuation assistance and emergency housing to vulnerable populations, which includes, but is not limited to, seniors, persons experiencing homelessness, persons with chronic medical conditions, or persons with limited resources.

Policy S-11.3: Coordinate with local and regional organizations to provide low-cost weatherization programs for households with financial instability.

Policy S-11.4: Work with regional partners to reduce impacts of extreme storm events on public property and critical infrastructure and services.

Policy S-11.5: Ensure the community is prepared during times of power shutoff events.

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CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
Proposed Goals and Policies
Emergency Preparedness
Goal S-712: Maintain a high level of emergency preparedness to limit damage and risks to public health and safety from natural and other disasters.

Policy S-712.1: Coordinate with local Homeowners Associations, businesses, and surrounding jurisdictions to create public-private partnerships and Support support the development of local preparedness plans, and multi-jurisdictional cooperation, and communication agreements for emergency situations.

Policy S-712.2: Educate In coordination with the Orange County Fire Authority and Orange County Sheriff’s Office, educate residents and businesses regarding appropriate actions to safeguard life and property before, during and immediately after emergencies. , in languages appropriate to the demographics of City residents.

Policy S-712.3: Participate in federal, State state, and local hazard preparedness programs and, emergency response education programs, and evacuation plans.

Policy S-12.4: Ensure emergency evacuation routes are clearly identified with adequate signage throughout the city.

Policy S-12.5: Ensure evacuation transportation services are available for populations with limited mobility or populations that lack access to a personal vehicle.

Policy S-12.6: Establish equitably distributed resilience hubs at existing facilities throughout the city that provide safe refuge from hazards and disasters, including, but not limited to, poor air quality, wildfire smoke, flooding, storms, and extreme heat. Facilities should be easily accessible, have a reliable energy supply, and available for all persons.

Policy S-12.7: Incorporate the current Local Hazard Mitigation Plan into this Safety Element by reference, as permitted by California Government Code Section 65302.6 to ensure that emergency response and evacuation routes are accessible throughout the city.

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CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
As shown in Table 1-2 and Table 1-3, the proposed 2021–2029 Housing Element and 2021 Safety Element consolidate many programs and policies from the previous Housing Element and Safety Element to aid in implementation and eliminate redundancy. Except as shown in Table 1-3, all existing Safety Element goals and policies will remain in place. In response to potential impacts of wildfires and climate change, the City is proposing to update its Safety Element to ensure adequate emergency response and preventative measures are in place. These goals and policies will help increase the climate change resiliency of the population, built environment, economy, and natural environment within the city.

The following nine amended programs are included in the proposed 2021–2029 Housing Element (Note: the following programs are modified using underline or strikeout to indicate changes to the amended programs):
 Program H-1. Code Enforcement Program
The City of Laguna Hills (City) will enforce building code regulations and abate code violations, nuisances, and existing uses, activities, buildings, or structures that pose a threat to public health, safety, or welfare.

Enforcement activities will focus on property maintenance, such as eliminating derelict or abandoned vehicles, outdoor storage, or other situations that may constitute health, safety, or fire hazards. The City’s Code Enforcement staff monitor and address complaints related to property maintenance. This City’s program is highly effective and results in a 95-percent compliance rate within 30 days of the City receiving a violation. To minimize the risk of displacement resulting from addressing code enforcement violations, the City will update regulations for code enforcement procedure to require property owners to proactively plan for tenant relocation during renovations. Additionally, the City will develop informational materials to include with violation notices that will educate property owners on available funding programs to assist with rehabilitations (see also Housing Element Implementation Program H-3). The information materials will be provided in multiple languages.
 Program H-3. Housing Rehabilitation
The City will continue to work with the Orange County Housing and Community Services Department to receive rehabilitation loans and grants for low- and moderate-income homeowners and rental property owners, including senior/disabled households, to maintain housing stock. The City’s rehabilitation program will be available to lower- and moderate-income households but have citywide applicability. The program will pay particular attention to the Via Lomas neighborhood. The rehabilitation loan and grant program will use Community Development Block Grant (CDBG) funds distributed by the County as funding becomes available.

Efforts will focus on rehabilitating approximately 148 units in the Aliso Meadows Condominium Development. The rehabilitation loan and grant program will use CDBG funds distributed by the County as appropriate.

The City will continue to work with the private sector and nonprofit agencies and to secure funds and be supportive of developers or sponsors pursuing funds through state and federal programs for rehabilitation of existing lower-income housing units (including mobile homes). The City continues to monitor opportunities and will pursue funds as appropriate to further the housing goals of this Housing Element.

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CITY OF LAGUNA HILLS

1. Addendum to the Adopted General Plan EIR
1690371.1
The City will publicize the availability of this program rehabilitation programs in local newspapers, on the City’s website, at the Community Development Department, in materials accompanying Code Enforcement notice of violations (see Housing Element Implementation Program H-1), and in information items at Planning Agency Public Hearings. Modifications for accessibility/universal design public hearings. Informational materials will be offered in multiple languages to ensure there are eligible activities under this program (see also Housing Element Implementation Program H-6 and H-17) no language barriers to participation.
 H-87. Zoning Ordinance Update
The implementation of housing goals, policies, and programs will require updating the City’s Zoning Ordinance. In addition, certain City rules and regulations may constrain the development of housing affordable to low- and moderate -income households with special needs. To mitigate potential constraints; bring the Zoning Ordinance into compliance with State law; and implement housing goals, policies, and programs, the City will update the following regulations in the Zoning Ordinance:

1. Consolidate and remove duplicitous definitions of manufactured housing and mobile homes and ensure consistency in the Zoning Ordinance, use regulations, and development standards.

2. Reduce the open space requirement in the High Density Residential district;

3. Increase the maximum lot coverage requirement in the Mixed Use district.

1. Density Bonuses. Within two years of Housing Element adoption, pursuant to California Government Code Section 65915 et seq., amend the Zoning Ordinance to update the density bonus ordinance to address recent updates to state law. If additional changes to state law occur during the planning period, the density bonus ordinance will be updated to comply with those changes.

2. Accessory Dwelling Units (ADUs). In 2018, the City adopted an ordinance that amended the Laguna Hills Zoning Ordinance to permit ADUs in accordance with state law. Within two years of Housing Element adoption, the City will amend its adopted ADU ordinance to comply with update to state ADU law with Senate Bill (SB) 2 grant funding (see Housing Element Implementation Program H-9), including parking requirements. Per Government Code Section 65852.150, the City will allow ADUs in all zones where single-family and multifamily housing are allowed. The City will amend all standards in its Municipal Code that are not compliant with Government Code Section 65852.2.

During the planning period, the City will implement the ADU ordinance (see Housing Element Implementation Program H-8) and update it to comply with any new state requirements.

4. 3. Transitional and Supportive Housing. Allow transitional and supportive housing (including transitional and supportive housing will be permitted with seven or more residents) as a residential use and only in all zones allowing residential uses, subject only to those restrictions that apply to other residential dwellings uses of the same type in the same zone (and without any discretionary action.

Additionally, permit supportive housing by-right in any non-residential or mixed-use zone that permits multifamily (Assembly Bill 2162, California Government Code Section 65583 ((c)(3)).

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4. Employee Housing. To encourage employee housing, as needed, the City will establish a)( use category for employee housing as a residential use in the use tables. The Zoning Ordinance will be amended to ensure that permit processing procedures for employee housing do not conflict with Health and Safety Code, Section 17021.5))., which states that employee housing for six or fewer employees should be “deemed a single-family structure with a residential land use designation,” Section 17021.6, which states that for ”employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household … [n]o CUP, zoning variance, or other discretionary zoning clearance shall be required of this employee housing that is not required of any other agricultural activity in the same zone,” and Section 17021.8, which requires ministerial approval of certain farmworker housing projects that meet the criteria in that section.

5. Emergency Shelters. Continue to allow emergency shelters by-right within the Mixed-Use (MXU) district subject to objective development standards without a conditional use permit or other discretionary approval. Amend the regulations for emergency shelters to ensure compliance with Government Code Section 65583(a)(4)), including siting requirements in relationship to schools and other emergency shelters and revise parking requirements for emergency shelters to ensure that parking standards are sufficient to accommodate all staff, provided standards do not require more parking for emergency shelters than other residential or commercial uses within the MXU district. The City will additionally update standards for emergency shelters to allow a greater number of beds. Review the City’s Zoning Ordinance and make revisions, if necessary, to allow low-barrier navigation centers for the homeless per Government Code Sections 65660-65668.

6. Residential Care Facilities. Amend the Development Code to permit residential care facilities regardless of size, in all zones that permit residential uses of the same type, in accordance with state law and the City’s definition of family.

7. Inclusionary Housing Requirements. The City intends to consider implementing inclusionary housing requirements. Considerations may include identifying acceptable methods to provide affordable housing such as: (a) construction of housing on-site, (b) construction of housing off-site, (c) dedication of land for housing, and (d) possibly other similar measures.

8. Manufactured Homes. Manufactured housing and mobile homes are treated as different land uses in Municipal Code Section 9-10.050, Uses within Zones. However, they have the same definition in the code. The City will correct this and ensure compliance with Government Code Section 65852.3 by allowing both manufactured housing and mobile homes in all zones where single-family homes are allowed with the same approval process that is used with single-family homes.

9. Development Standards and Permitting Requirements. The City will evaluate development standards including open space requirements, lot coverage, and heights, as well as permit requirements for multifamily developments. The City will ensure these requirements are not so restrictive that they constrain residential development and update the Municipal Code as needed.

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 H-98. Second Accessory Dwelling Units
As a part of the City’s SB2 program, the City will amend its Accessory Dwelling Unit (ADU) ordinance to comply with recent changes to state law regarding ADUs and create reference information available to property owners listing benefits and opportunities for constructing ADUs (see Housing Element Implementation Program H-9). The City shall continue to implement the Second Unit ADU provisions of the Zoning Ordinance consistent with state law. (see Housing Element Implementation Program H-7).

The City will continue to permit second units ADUs by -right in all residential zones of the City, requiring only ministerial approval. Residential second units provide Per Government Code Section 65852.150, the City will allow ADUs in all zones where single-family and multifamily housing are allowed. The City will amend all standards in its Municipal Code that are not compliant with Government Code Section 65852.2 (see also Program H-7).

The City will promote ADUs to property owners as a viable option for providing additional housing opportunities which that could include affordable housing for lower -income seniors, single persons, or small households within existing neighborhoods. The City will encourage and promote ADUs by providing information on the City’s website about ADU standards and options and informing people at the public counter of ADUs as an option and informing property owners with an existing unpermitted ADU of the option to bring the unit up to code as a legal ADU. The City will monitor ADU production. Halfway through the planning cycle, if the production numbers are not on par with the midpoint of the number of ADUs estimated in Table H-46, the City will adjust its approach to meeting the RHNA.

The City will also make the following efforts to promote ADU development:

1. Research and coordinate with non-profit organizations, builders, and banks regarding funding/assisting with construction costs and connect ADU owners and renters with that information.

This will include encouraging financial institutions to appoint an “ADU Ambassador” who will be the local representative within the financial institution. The City would provide training and educational materials to the ambassadors. The City will maintain a list of ADU Ambassadors and distribute the list to interested homeowners seeking information about finding loans for ADU development.

2. Expand educational efforts to include active property owner outreach. Marketing and promotional materials will be prepared to inform eligible homeowners of new ADU programs as they are adopted and launched. The City will work to identify the types of homeowners most likely to be interested in building an ADU and reach out to them directly.

3. Reach out to local homeowners that have added an ADU to involve them in supporting other homeowners who are considering adding an ADU to their property. Hold a community “ADU Open House” to share ideas and inspire homeowners to build ADUs.

4. Create short flyers and brochures (digital and print). Distribute though social media promotions, direct mailings to property owners, water bill inserts, and the dedicated City webpage.

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5. Establish an ADU point person at the City to serve as a central point of information and a resource for enhancing awareness.

6. The City will explore funding options to create an ADU Forgivable Loan Program.  Program H-1113. Continuum of Care Funding and Consolidated Plan Participation The City shall continue to participate in the Orange County Consolidated Plan Programs and in the Orange County Continuum of Care local housing planning process to facilitate obtaining funds for affordable housing and related social services for special needs populations. The Continuum of Care local housing and service delivery system focuses on homeless prevention, outreach, and assessment, emergency shelters, transitional housing, supportive services, and permanent supportive housing for homeless individuals and families. The City shall pursue homeless assistance grants through the Continuum. The City will assist public and private nonprofit housing developers in preparation of funding applications for special needs populations. The City will conduct outreach to service providers annually to discuss ways the City can assist in the development for lower-income households.
 H-1214. Section 8 Rental Assistance
The Orange County Housing Authority currently administers the Section 8 Rental Assistance program on behalf of the City. Currently the program assists renter households in the City of Laguna Hills. Based on future congressional appropriations, the County Housing Authority will apply for additional funding which will enable the Housing Authority to administer additional vouchers for families, seniors, and disabled persons over the Housing Element planning period.

To promote housing mobility in high-resource neighborhoods Tthe City of Laguna Hills will:

1. continue to pProvide referral services and information to the City’s residents. on housing choice voucher programs, ensuring that all information offered digitally and physically is provided in multiple languages.

2. Coordinate with community-based organizations that serve Laguna Hills’ special-needs populations to reach households that would qualify for housing choice voucher programs.

3. Work with the Housing Authority increase voucher acceptance in areas of higher income to increase opportunities for housing mobility, as identified in the Assessment of Fair Housing.

4. Partner with the Housing Authority to provide biannual training to landlords regarding fair-housing requirements, including the requirement that they accept vouchers, and educate property owners in Moderate Resource Areas, as defined by TCAC higher-income neighborhoods about the benefits of voucher holding-tenants, encouraging them to market available units at their rental properties to voucher holders.

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5. Consider the feasibility of a landlord incentive program for landlords that choose to accept voucher holding tenants. The landlord incentive program could be focused on Low Resource Areas, as defined by TCAC, or neighborhoods that experience higher rates of rental increases.  H-1315. Affordable Housing Developer Partnerships
The City will continue to develop partnerships with mainstream and/or special needs affordable housing developers that could result in set-asides in existing and planned low income housing projects for extremely low-, very low-, and low-income households. These partnerships may include incentives (such as expedited processing, fee waivers, and density bonuses) provided by the City to facilitate the set-asides for planned low income units and actively cooperating with the owners of existing units to secure appropriate federal funding necessary to maintain existing affordability. The City will take subsequent action, as appropriate, to make the development of such units more financially feasible including providing financial incentives, such as reducing, waiving, and/or deferring fees, where feasible, offering fast track/priority processing and permit streamlining, density bonuses, and flexibility in development standards. The City will promote lower income housing development incentives on the City’s website, consistent with Chapter 9-72 of the Zoning Ordinance. The City will use HCD’s housing resources website to locate available sites and potential funding sources as needed for the development of affordable housing. The City will conduct outreach to developers annually to discuss ways the City can assist in the development for lower-income households.

Additionally, the City will amend the Zoning Code to comply with State Density Bonus Law (Program H7).  H-1416. Fair Housing Program
The City will continue to maintain services and personnel to receive housing complaints and continue to address or resolve complaints. The City will also continue to refer fair housing complaints to the Fair Housing Council if they cannot be resolved at the City level.

The City will also continue to disseminate written literature about fair housing laws, resident rights, and remedies for fair housing complaints. The City will ensure that fair housing literature is provided in multiple languages and available in the Community Development Department, on the City’s website, and at the Laguna Hills Technology Library. The City will monitor these sites to ensure timely, accurate information is available.

To further comply with AB 686, the City will implement actions to Affirmatively Furthering Fair Housing (AFFH). The ongoing and additional actions the City will take to address AFFH shall address significant disparities in housing needs and in access to opportunity for all persons regardless of race, color, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, familial status, source of income, or disability, and other characteristic protected by the California Fair Employment and Housing Act (Part 2.8, commencing with Section 12900, of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. In this effort to address fair housing issues identified in the Assessment of Fair Housing of this Housing Element, the City commits to the following:

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1. Develop affirmative marketing targeted at property owners to encourage acceptance of vouchers and/or other rental assistance programs, promoting equal access to government-assisted housing and to promote housing opportunities outside low-resource neighborhoods and neighborhoods along Via Lomas. Additionally, develop affirmative marketing strategies to promote services for persons at-risk of homelessness or experiencing homelessness through partnership with Mercy House, aimed at protecting residents from risk of displacement.

2. Promote accessibility programs focused on improving access to housing, transit, public buildings and facilities, sidewalks, pedestrian crossings, and businesses. Partner with local organizations serving persons with disabilities to implement outreach programs (see Housing Element Implementation Program H-17).

3. Explore policies to protect mobile home parks in low-resource areas in north Laguna Hills, minimizing displacement risk of existing residents.

4. Explore programs and/or partnerships to ensure that a share of the jurisdiction’s purchases of goods and services come from local businesses.

5. Engage with the local school district to explore a program to address school boundaries and access to proficient education, specifically for the Via Lomas neighborhood.

6. Partner with Orange County Housing and Community Services Department and/or local non-profits to consider expanding programs offering first-time homebuyer assistance and prepare educational materials in multiple languages on mortgage lending discrimination.

7. Encourage development of affordable housing that meets the needs of diverse households and family structures, including affordable units with three or more bedrooms, during meetings with prospective developers.
 H-1517.Universal Design Features in Housing Accessibility in Housing The City recognizes that all people have varying abilities and that many people will encounter temporary or permanent changes in ability to conduct the tasks necessary for daily living throughout their lives.

Universal design features create housing suited for people of all abilities and can allow residents to stay in their homes over their lifetime. The City will explore programs, an continue to implement its existing Reasonable Accommodation ordinance, and incentives to encourage provision of universal design features in housing.(Zoning Ordinance Chapter 9-93). The City will refer to the HCD website for guidelines and a model ordinance consistent identify and work with the principles of universal design. The universal design ordinance local organizations that provide assistance to persons with disabilities, including developmental disabilities, to implement an outreach program that informs persons with disabilities and their families about housing and available services. Informational materials can include a brochure that will address such topics as findings, definitions, scope be offered in multiple languages and application, standards, and enforcement. direct people to service information on the City’s website, which will be reviewed annually to make updates as necessary. City staff will encourage prospective developers to provide universal design features in housing developments at the time of project application meeting(s).

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The following four programs are new to the City and are included in the proposed 2021–2029 Housing Element:
 Program H-9. SB2 Grant Program Implementation
As a part of the City’s SB2 program, the City plans to establish objective design standards for residential development in the MXU zoning district in north Laguna Hills to encourage infill residential development.

The City will additionally analyze opportunities to permit multifamily residential in an existing commercial center in north Laguna Hills zoned Community Commercial (CC), which currently does not permit residential uses. The City will hold one or more community workshops to gather community input, including from the developer community. Through establishing objective design standards, the City anticipates reducing the entitlement process by up to six months. The City also plans to use its awarded SB2 grant funding to update its ADU ordinance to comply with state law, as well as create reference information for homeowners about the benefits and opportunities for constructing ADUs.  Program H-10. Permit Streamlining
The City will establish a written policy or procedure and other guidance as appropriate to specify the Senate Bill (SB) 35 (2017) streamlining approval process and standards for eligible projects, as set forth under California Government Code Section 65913.4.
 Program H-11. 2021–2029 Regional Housing Need
To meet state law requirements (California Government Code Sections 65583(c)(1)(A) and 65583(c)(1)(B)) to address the 2021-2029 RHNA and to ensure a sufficient selection of sites are available for higher-density development, the City shall amend the General Plan and the Zoning Codes, as needed, to provide adequate sites for 528 lower-income units on certain sites or in certain zones. The City will increase allowable density on certain sites in the MXU and/or MDR zones and/or allow multifamily uses on certain sites in zones where they are not currently allowed. Sites for lower-income units must allow at least 30 dwelling units per acre. To accommodate the remaining unaccommodated 528 units in the lower-income category by rezoning sites to allow up to 30 units per acre, a minimum of 17.6 acres would need to be rezoned. To accommodate the remaining unaccommodated 528 units in the lower-income category by rezoning sites to allow up to 50 units per acre, a minimum of 10.56 acres would need to be rezoned.

Sites rezoned under this housing element program are subject to the requirements of Section 65583.2(h), including allowing owner-occupied and rental multifamily housing “by right” without discretionary review if 20 percent or more of the units in a project proposed on the site are affordable to those with lower incomes. The sites rezoned to accommodate lower-income RHNA must be able to accommodate a minimum of 16 units per site. At least 50 percent of the very low and low-income housing need shall be accommodated on sites designated/zoned for residential uses only, except that all of the very low- and low-income housing need may be accommodated on sites designated for mixed uses if those sites allow 100-percent residential use and require that residential uses occupy 50 percent of the total floor area of a mixed-use project. The applications can be subject to design review as long as the project does not trigger the California Environmental Quality Act review process. Water, sewer, and dry utilities are either already available at sites that will be rezoned or the City will plan for extensions so that services will be available as

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needed. The City will avoid sites with unmitigable environmental hazards when selecting sites to rezone including, steep slopes (over 30 percent), high liquefaction risk, moderate and severe wildfire risk, Federal Emergency Management Agency (FEMA) 100-year and 500-year flood zones. As a part of this program, the City will evaluate development standards for the rezone sites, including open space requirements, lot coverage, and heights, as well as permit requirements for multifamily developments. The City will ensure these requirements are not so restrictive that they constrain residential development.

See also Program H-21.
 Program H-21. Facilitating Housing on Identified Sites To ensure that housing is developed that is appropriate for identified income categories on identified sites, the City will take the following steps:

1. The City will develop and implement strategies to encourage and facilitate lot consolidation and phasing of residential and mixed-use developments on large sites to make sites more developable for housing. The City will meet with local developers and property owners to discuss development opportunities and incentives for lot consolidation on smaller sites and/or phasing of development on larger sites to accommodate affordable housing units and consider additional incentives brought forth by developers. As developers/owners approach the City with interest in lot consolidation or phased development on larger sites for the development of affordable housing, the City could defer certain fees, allow more height or additional stories, waive lot merger fees for certain small contiguous lots, and provide concurrent/fast tracking of project application reviews to developers who provide affordable housing. The City will also pursue grant funding for parcel assemblage land banking when it is available.

The City shall provide incentives for residential and mixed-use development on the sites in the land inventory, including reductions of development standards where feasible.

2. The City will conduct regular outreach to owners of properties in the land inventory to inform them of regulatory incentives and available funding programs for housing development.

3. The City will conduct outreach to attract and support affordable housing developers in the City, including developers of senior housing, extremely low-income units, and permanent supportive housing for persons with disabilities and developmental disabilities.

4. The City shall create information online and in brochure formats explaining the City’s residential and mixed-use property development standards and make it available on the City’s website and at the City’s permit counter.

5. As residential developments are approved by the City and building permits or final maps have not been obtained, the City will make diligent efforts to contact applicants to learn why units have not been constructed within two years after approval. If these impediments are due to nongovernmental constraints, such as accelerating construction costs, shortages of labor or materials, or rising interest rates, to the extent appropriate and legally possible, the City will seek to identify actions that may help to remove these constraints. In addition, the City will aim to work with stakeholders to identify nongovernmental constraints or other circumstances that may impede the construction of housing in

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Laguna Hills and work collaboratively to find strategies and actions that can eliminate or reduce identified constraints.

6. If this program is not effective, the City will immediately implement alternative strategies such as incorporating feedback from developers on how to better encourage residential development, as well as, considering additional actions the City can take to encourage residential development.

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2. CEQA Analysis

2.1 ENVIRONMENTAL ANALYSIS – SUBSEQUENT ENVIRONMENTAL
REVIEW
Public Resources Code Section 21166 (Subsequent or Supplemental Impact Report; Conditions) provides:

When an environmental impact report has been prepared for a project pursuant to this division, no subsequent or supplemental environmental impact shall be required by the lead agency or by any responsible agency, unless one or more of the following events occurs:
(a) Substantial changes are proposed in the project which will require major revisions of the environmental impact report.
(b) Substantial changes occur with respect to the circumstances under which the project is being undertaken which will require major revisions in the environmental impact report. (c) New information, which was not known and could not have been known at the time the environmental impact report was certified as complete, becomes available.

As further stated in CEQA Guidelines Section 15162 (Subsequent EIRs and Negative Declarations):

When an EIR has been certified or negative declaration adopted for a project, no subsequent EIR shall be prepared for that project unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following:
(1) Substantial changes are proposed in the project which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete or negative declaration was adopted, shows any of the following:
(a) The project will have one or more significant effects not discussed in the previous EIR or negative declaration;
(b) Significant effects previously examined will be substantially more severe than shown in the previous EIR;

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(c) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or (d) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative.

In other words, pursuant to Public Resources Code Section 21166 and Section 15162 of the CEQA Guidelines, the lead agency shall not require a subsequent or supplemental EIR unless the agency determines that the proposed project would result in new significant impacts or a substantial increase in the severity of previously identified significant impacts. This analysis has been prepared pursuant to Public Resources Code Section 21166 and CEQA Guidelines Section 15162.

2.1.1 Affected Environment
The General Plan contains policies related to land use, mobility, conservation and open space, community services and facilities, safety, noise, and housing. The General Plan is largely designed to be self-mitigating by incorporating policies and implementation measures that address and mitigate related environmental impacts, such as zoning codes and design standards.

As previously described in Section 1.2, of this Addendum, the General Plan EIR addresses potentially significant impacts related to aesthetics, air quality, agricultural resources, biological resources, cultural resources, geology, soils, and mineral resources, hazards and hazardous materials, hydrology and water quality, land use and planning, noise, population and housing, public services and utilities, recreation, transportation and circulation, and global climate change. Table 1-2 shows that most of the existing Housing Element policies will remain unchanged with the proposed project. The nine amended programs are either informative or would result in no physical change to the environment. Overall, the programs were modified to comply with state law, respond to directives from HCD, or eliminate programs where the City has already completed the identified task.
 Program H-1 Code Enforcement Program involves informational changes that includes a reference to addressing complaints related to property maintenance, updating regulations for code enforcement procedure, and developing informational materials to include violation notices that will educate property owners on available funding programs to assist with rehabilitations.  Program H-3 Housing Rehabilitation involves informational changes that includes a reference to the City’s rehabilitation program focusing on the Via Lomas neighborhood, using CDBG funds for the rehabilitation loan and grant program, and monitoring opportunities to secure funds and pursuing funds to further the housing goals of the Housing Element.
 Program H-8 Zoning Ordinance Update involves informational changes that includes a reference to bringing the Zoning Ordinance into compliance with State law and updating the following regulations to mitigate potential constraints: density bonuses, ADUs, transitional and supportive housing, employee

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housing, emergency shelters, residential care facilities, inclusionary housing requirements, manufactured homes, and development standards and permitting requirements.  Program H-9 Second Units involves informational changes that includes a reference to amending the City’s ADU ordinance to comply with state law, allowing ADUs in all zones where single-family and multifamily housing are allowed, and promoting ADUs by providing information on the City’s website about ADU standards and options and informing people at the public counter of ADUs as an option and informing property owners with an existing unpermitted ADU of the option to bring the unit up to code as a legal ADU.
 Program H-11 Continuum of Care Funding and Consolidated Plan Participation involves informational changes that includes a reference to the City conducting outreach to service providers annually to discuss ways the City can assist in the development for lower-income households.  Program H-12 Section 8 Rental Assistance involves informational changes that includes a reference to the City taking a series of actions to promote housing mobility in high-resource neighborhoods.  Program H-13 Affordable Housing Developer Partnerships involves informational changes that includes a reference to the City taking action to make the development of low-income units more financially feasible and conducting outreach to developers annually to discuss ways the City can assist in the development for lower-income households.
 Program H-14 Fair Housing Program involves informational changes that includes a reference to implementing a series of actions to AFFH in order to comply with AB 686.  Program H-15 Universal Design Features in Housing involves informational changes that includes a reference to continuing to implement its existing Reasonable Accommodation ordinance and identifying and working with local organizations that provide assistance to persons with disabilities to implement an outreach program that informs persons with disabilities and their families about housing and available services.

These modifications to the existing programs would not result in any reasonably foreseeable physical impacts on the environment. The proposed Housing Element consolidates many programs from the existing Housing Element to aid in implementation and eliminate redundancy.

The four new programs represent changes that would:
 Establish objective design standards for residential development in the MXU zoning district in north Laguna Hills to encourage infill residential development; analyze opportunities to permit multifamily residential in an existing commercial center in north Laguna Hills zoned Community Commercial (CC), which currently does not permit residential uses; and update its ADU ordinance to comply with state law, as well as create reference information for homeowners about the benefits and opportunities for constructing ADUs.

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 Establish a written policy or procedure and other guidance as appropriate to specify the SB 35 (2017) streamlining approval process and standards for eligible projects.  Amend the General Plan and the Zoning Codes, as needed, to provide adequate sites for 528 lower-income units on certain sites or in certain zones; increase allowable density on certain sites in the MXU zone and/or allow multifamily uses on certain sites in zones where they are not currently allowed; and evaluate development standards for the rezone sites, including open space requirements, lot coverage, and heights, as well as permit requirements for multifamily developments.

New development resulting from these programs would occur on land designated for housing under the General Plan. The General Plan shows that the city is mostly built out and there are few vacant sites to accommodate additional housing. Therefore, future changes to the General Plan to accommodate the 1,381 housing units need to occur on properties that already have some existing level of development or have already been designated for urban development. As described in the proposed Housing Element, there are many underutilized sites throughout the city where redevelopment is likely. These underutilized parcels include property that is either developed but could accommodate greater intensity or vacant land that is not currently zoned for residential uses. Three categories of underutilized sites include the following:

4. Underutilized Sites with Anticipated Projects
a. Oakbrook Village
b. The Village at Laguna Hills
c. Planned Community Via Lomas

5. Underutilized Sites, Candidates for Rezoning

6. Underutilized Sites, Village Commercial (VC) Zone

2.1.2 Impact Analysis

1. No substantial changes are proposed in the project and no substantial changes occurred with respect to the circumstances under which the project is undertaken which would require major revisions of the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects.

2. The project will not have one or more significant effects not discussed in the previous EIR.

3. Significant effects previously examined will not be substantially more severe than shown in the previous EIR.

CEQA states that the level of specificity required in CEQA analysis is determined by the nature of the underlying activity. (CEQA Guidelines § 15146.) The analysis for a general plan amendment need not be as specific as the construction projects that might follow. (CEQA Guidelines § 15146(b).) CEQA recognizes that foreseeing the unforeseeable is not possible. (CEQA Guidelines § 15144.)

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2. CEQA Analysis
1690371.1
The proposed Housing Element programs and Safety Element polices are similar to the existing programs and policies of the General Plan. Specifically, the proposed 2021–2029 Housing Element includes nine amended programs and four new programs. The program changes included in the proposed Housing Element are limited to complying with state law or elimination of programs where the City has already completed the identified task. As with the existing Housing Element, these policy changes do not result in the approval of any development project. The policy changes included in the proposed Safety Element also comply with State law by ensuring adequate evacuation routes and helping increase the climate change resiliency of the population, built environment, economy, and natural environment within the City. As with the existing Safety Element, these policy changes do not result in the approval of any development project.

The City’s General Plan provides for housing growth in the city over time. The proposed Housing Element identifies targets for housing at different income levels but does not include development of an unusual type, scale, or location that would not have been evaluated in the General Plan EIR.

The proposed changes to the Zoning Code identified in Table 1-2 represent modification of existing policy to either streamline urban development that is already allowed by the General Plan or make the development code consistent with state law or implement new programs. All the sites that these modified programs would affect are currently developed and have designations that allow for development in the Land Use Element of the General Plan. The proposed project allows for a change in land use from one urban use to another, both of which would allow for complete development of the properties.

The proposed Housing Element identifies several sites (Table H-47, Table H-48A, and Table H-48B) that are intended to accommodate the City’s RHNA. As shown in Table H-47, Underutilized Sites, Anticipated Projects, there are 15 properties that encompass Oakbrook Village, Five Lagunas, and the Planned Community Via Lomas that could potentially accommodate the City’s RHNA. As shown in Table H-48A, Underutilized Sites, VC Zone, there are three properties that could potentially accommodate the City’s RHNA.

As shown in Table H-48B, Underutilized, Candidate Rezone Sites, there are 20 properties that could potentially accommodate the City’s RHNA. The North Laguna Hills sites are zoned for Mixed Use and currently allow for 20 units per acre; the proposed new max density for these sites would allow for 50 units per acre. The Central Laguna Hills sites are zoned for Medium Density Residential and currently allow for 18 units per acre; the proposed new max density for these sites would allow for 50 units per acre.

The proposed Safety Element would ensure compliance with SB 1241 (Government Code 65302(g)(3)), SB 379 (Government Code 65302(g)(4)), and SB 99 (Government Code 65302(g)(5)). The proposed Safety Element project consists of updates to General Plan goals and policies, which by themselves would have no physical effect on the environment.

The General Plan EIR addresses potentially significant impacts related to aesthetics, air quality, agricultural resources, biological resources, cultural resources, geology, soils, and mineral resources, hazards and hazardous materials, hydrology and water quality, land use and planning, noise, population and housing, public services and utilities, recreation, transportation and circulation, and global climate change. As all projects within the City must be consistent with the General Plan, policies identified in the General Plan EIR to reduce physical environmental effects would continue to apply to all future development and would reduce impacts to the same significance level as identified in the General Plan EIR. While the change in

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Packet Pg. 368 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDATE

CITY OF LAGUNA HILLS

2. CEQA Analysis
1690371.1
land use would increase the amount of housing anticipated in these areas, the physical changes to the environment remain unchanged from those evaluated in the General Plan EIR as described below.

All future residential projects that would be implemented under the proposed project would be required to be constructed to conform with Title 9, Zoning and Subdivisions, of the Laguna Hills Municipal Code and the City’s adopted Design Regulations and Standards, as well as all applicable environmental policies and regulations. Future by-right development would still be subject to federal, state, and local policies related to land use, such as the Migratory Bird Treaty Act, wetland conservation, and construction air quality permitting. Moreover, the City maintains a thorough building permit review process that ensures compliance with federal, state, and local regulations, such as dust control, stormwater runoff, and water quality, prior to the issuance of any building permit. The building permit and development review process is independent of the CEQA process and would be unaffected by the change to by-right zoning.

Additionally, prior to issuance of any building permit, a project applicant is required to pay development impact fees, which would address potential impacts to public services and regional transportation. The policies identified in the General Plan EIR to reduce physical environmental effects would continue to apply to future development and would reduce impacts to the same significance level as identified in the General Plan EIR.

Aesthetics
The General Plan EIR concluded that new development and redevelopment pursuant to the General Plan had the potential to significantly impact existing scenic vistas and had the potential to differ in design and scale compared to the immediately adjacent uses. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Agriculture and Forest Resources
There are no agricultural or forest resources within the city. See General Plan EIR, Agriculture & Forest Resources. Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Air Quality
As to future construction consistent with the proposed project, all sites will require grading and other ground disturbing activities, paving, and extension of utilities and other public services, whether developed with commercial or residential land use. That construction, whether commercial or residential would be required to comply with the City’s General Plan policies and ordinances that address potential impacts associated with development such as dust control, noise, odor, etc. The proposed Housing Element would not change this fact.

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Packet Pg. 369 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDATE

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2. CEQA Analysis
1690371.1
Operationally, placing housing near existing and planned commercial development reduces vehicle miles travelled by eliminating or reducing residents’ need to utilize a vehicle for shopping or, potentially, work trips. This furthers a statewide goal of reducing greenhouse gas emissions and reduces potential air quality impacts, among other environmental benefits. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Biological Resources
The City of Laguna Hills is built out and urban. The General Plan EIR identified biological resources within the City and anticipated future development, whether commercial or residential. As indicated in the General Plan EIR, future development will be required to comply with the applicable requirements of federal, state, and local law. These include, among others, the Migratory Bird Treaty Act, the National Pollutant Discharge Elimination System, and the City’s Tree Protection Ordinance. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Cultural Resources
There are no historical built resources in the city. Due to the highly disturbed nature of the identified sites, the potential for discovery of cultural resources or an impact to such resources would not be significant.

Specifically, the General Plan EIR concluded that most development and redevelopment under the General Plan would involve infill and redevelopment of existing areas. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR. Any future development consistent with the proposed project would be subject to all applicable federal, state, and local laws including Public Resources Code Section 5097.98 and Health & Safety Code Sections 7050.5-7055.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Energy
Future development consistent with the proposed project would be subject to the then-applicable federal, state, and local laws regulating energy use and efficiency. They could include, without limitation, Title 24 of the California Code of Regulations, including the Energy Efficiency Standards for Residential and Non6.1.a Packet Pg. 370 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDATE

CITY OF LAGUNA HILLS

2. CEQA Analysis
1690371.1
Residential Buildings. These regulations will ensure that future development is energy efficient. Energy providers within the city include SCE, SDG&E, and the Southern California Gas Company who have indicated that their present facilities are adequate. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Geology / Soils
The General Plan EIR concluded that development may occur in areas of significant geologic hazards such as landslides, debris flows, and expansive soils. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and is already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR. Detailed geologic and/or geotechnical studies will be required and the project-level for projects located in areas identified as susceptible to landslides and expansive soils. Compliance with the recommendations of the geologic and/or geotechnical studies will be made a condition of approval.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Greenhouse Gas Emissions
As to future construction consistent with the proposed project, all sites will require grading and other ground disturbing activities, paving, and extension of utilities and other public services, whether developed with commercial or residential land use. The proposed Housing Element would not change this fact.

Operationally, placing housing near existing and planned commercial development reduces vehicle miles travelled by eliminating or reducing residents’ need to utilize a vehicle for shopping or, potentially, work trips. This furthers a statewide goal of reducing greenhouse gas emissions and reduces potential air quality impacts, among other environmental benefits. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Hazards and Hazardous Materials
During any future construction consistent with the proposed project, potentially hazardous materials would be handled. These materials would include gasoline, diesel fuel, lubricants, and other petroleum-based products used to operate and maintain construction equipment. The transport, use, and disposal of any such hazardous substances would be subject to federal, state, and local requirements. Operationally,

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CITY OF LAGUNA HILL S

2. CEQA Analysis
1690371.1
hazardous materials in limited amounts and concentrations may be utilized consistent with other existing residential uses and subject to applicable federal, state, and local requirements. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Hydrology / Water Quality
Because the City is built out and urbanized, the General Plan EIR anticipated that development and redevelopment would occur in areas that are already developed, including areas that are developed with impervious surfaces. Any future development consistent with the proposed project would be required to comply with all applicable water quality management standards and/or regulations including, without limitation, the applicable requirements of the NPDES construction general permit (including the preparation of a SWPPP), NPDES BMP requirements, and NPDES bio infiltration requirements. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Land Use / Planning
Future development will be required to be consistent with all applicable land use plans, policies, or regulations adopted by the City. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Mineral Resources
There are no areas within the city used for extraction of any mineral resources. See General Plan EIR, Mineral Resources. Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Noise

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Packet Pg. 372 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDATE

CITY OF LAGUNA HILLS

2. CEQA Analysis
1690371.1
Future development consistent with the proposed project would be subject to all applicable General Plan policies and requirements of the Municipal Code. placing housing near existing and planned commercial development reduces vehicle miles travelled by eliminating or reducing residents’ need to utilize a vehicle for shopping or, potentially, work trips. This furthers a statewide goal of reducing greenhouse gas emissions and reduces potential air quality impacts, among other environmental benefits such as noise generated by additional automobile trips. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Population / Housing
While the change in land use would increase the amount of housing anticipated in these areas, the goal of proposed project, as mandated by state law, is to accommodate existing housing demand within the city as identified by HCD and SCAG through the RHNA allocation. The proposed project therefore will not displace existing housing or induce substantial population growth. Further, placing housing near existing and planned commercial development reduces vehicle miles travelled by eliminating or reducing residents’ need to utilize a vehicle for shopping or, potentially, work trips. This furthers a statewide goal of reducing greenhouse gas emissions and reduces potential air quality impacts, among other environmental benefits.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Public Services
The public service impacts associated with the potential population increase that could be associated with new housing include police and fire services, parks, water, and sewer. The water and sewer impacts would be addressed through connection fees as part of the development process. Additional services for police and fire would only result in a physical impact if new facilities were required to meet the growth needs. If additional physical facilities for police and fire are needed this would be determined when the sites are identified and then included in the capital improvement program. Impact fees associated with each unit would be required.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Recreation
The proposed project does not include any specific project or park improvements, nor does the proposed project modify any existing open space land use designations. Construction of new parks and recreational facilities associated with future development consistent with the proposed project would be subject to environmental review under CEQA.

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2. CEQA Analysis
1690371.1
Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Transportation
Placing housing near existing and planned commercial development reduces vehicle miles travelled by eliminating or reducing residents’ need to utilize a vehicle for shopping or, potentially, work trips. This furthers a statewide goal of reducing greenhouse gas emissions and reduces potential air quality impacts, among other environmental benefits. By decreasing overall VMT, the proposed project would potentially improve existing environmental conditions.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Tribal Cultural Resources
Due to the highly disturbed nature of the identified sites, the potential for discovery of cultural resources or an impact to such resources would not be significant. Specifically, the General Plan EIR concluded that most development and redevelopment under the General Plan would involve infill and redevelopment of existing areas. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR. Any future development consistent with the proposed project would be subject to all applicable federal, state, and local laws including Public Resources Code Section 5097.98 and Health & Safety Code Sections 7050.5-7055.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Utilities / Service Systems
The proposed project’s potential water and sewer impacts would be addressed through connection fees as part of the development process. Because urban development was considered at the three locations (i.e., Oakbrook Village, Laguna Hills Mall, and the Planned Community Via Lomas) and already in existence on the VC sites and rezone candidate sites, the potential impacts of development of housing on these sites would be consistent with what was analyzed in the General Plan EIR.

Therefore, the proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Wildfire
The City is urbanized and built-out. No wildland areas or urban/wildland interfaces occur within the city.

The General Plan EIR concluded that new development and redevelopment would be limited to urban areas and would not involve expansion of urban uses onto lands located within or adjacent to wildland fire hazard areas. The proposed project does not change these facts. Therefore, the proposed project would

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Packet Pg. 374 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDATE

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2. CEQA Analysis
1690371.1
not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

Mandatory Findings of Significance
All prior analysis is incorporated here by reference. The proposed project would not result in a new significant impact or a substantial increase in the severity of a previously identified significant impact.

4. No mitigation measures or alternatives previously found not to be feasible would in fact be feasible.

The General Plan anticipated all types of development and construction, including homes. The proposed project continues the expectation of housing constructed throughout the city. In all instances the sites were previously identified for urban development that can include pavement, construction of buildings, generation of stormwater runoff, and use of water and wastewater. The proposed project does not change existing policies in the General Plan, ordinances, regulations, and standards adopted by the City to reduce development impacts to less than significant. Further, the introduction of housing near major transportation corridors, jobs, retail, and services will reduce the need to drive personal vehicles. The reduction of vehicle miles travelled will reduce greenhouse gases from what would be generated with the existing development pattern. As such, the proposed project would not result in new significant impacts or significant impacts substantially more severe than shown in the previous EIR.

The City has not discovered or been made aware of any new information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified pertaining to the mitigation measures or alternatives discussed in the EIR. The proposed project includes policy-level changes that are limited to complying with State law and would not result in physical changes to the environment that were not disclosed in the General Plan EIR. Future residential projects that would be implemented under the proposed project would be required to be constructed to conform with Title 9, Zoning and Subdivisions, of the Laguna Hills Municipal Code and the City’s adopted Design Regulations and Standards, as well as all applicable environmental policies and regulations. In addition, future projects under the proposed project would be subject to applicable mitigation measures from the 2009 General Plan EIR, and as such, the proposed project would not create new impacts or the need for additional mitigation measures.

5. No mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative.

The City has not discovered or been made aware of any new information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified pertaining to the mitigation measures or alternatives discussed in the EIR. The proposed project would have the same significant impacts as the previously certified General Plan EIR, and all associated policies and mitigation measures identified in the General Plan EIR to reduce physical environmental effects would apply to all future development. There would be no new significant impacts

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2. CEQA Analysis
1690371.1
resulting from adoption of the 2021–2029 Housing Element and 2021 Safety Element; therefore, there are no new mitigation measures or alternatives to the proposed project.

2.2 FINDINGS
The foregoing analysis confirms that the proposed project has been evaluated for new significant impacts or a substantial increase in previously identified significant impacts pursuant to Public Resources Code Section 21166 and CEQA Guidelines Section 15162. The determination here is that the 2021–2029 Housing Element and 2021 Safety Element Update does not require major revisions to the 2009 General Plan EIR due to the involvement of new significant environmental impacts or substantial increases in the severity of previously identified significant environmental impacts. The Housing Element and Safety Element Update are policy documents and their adoption would not produce environmental impacts since no actual development is proposed. Therefore, the proposed project recommends changes from one urban use to another, and the development impacts of the uses are addressed by existing policies in the General Plan and the General Plan EIR. Future housing development projects would generally be subject to project-level environmental review.

There are no substantial changes in the circumstances or new information that was not known and could not have been known at the time of the adoption of the General Plan EIR. The proposed project consists entirely of urban land uses consistent with project sites’ existing General Plan land use designation and zoning and represents no change from the physical impacts that were assumed and analyzed by the General Plan EIR.

As a result, and for the reasons explained in this addendum, the project would not cause any new significant environmental impacts or substantially increase the severity of significant environmental impacts disclosed in the General Plan EIR. Thus, the proposed project does not trigger any of the conditions in CEQA Guidelines Section 15162 mandating the preparation of a subsequent EIR, and the appropriate environmental document authorized by CEQA Guidelines Section 15164(b) is an addendum. This EIR addendum has been prepared accordingly.

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Appendix A
Underutilized, Candidate Rezone Sites

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Packet Pg. 377 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element 1690371.1
Map
ID # APN Address
Zoning/
General
Plan
Acres
Minimum
Density
(units/
acre)
Current
Maximum
Density
(units/
acre)
Proposed
Maximum
Density (units/
acre)
Realistic
Capacity
(Percent
Maximum)
Lower
Income
Units
Existing
Uses
Potential for Lot
Consolidation Area
70 58814208 23201 Mill
Creek Dr 3 MXU 1.77 N/A 20 50 0.5 44 Commercial
North
Laguna
Hills
71 58814108 23212 Mill
Creek Dr MXU 1.01 N/A 20 50 0.5 25 Commercial
North
Laguna
Hills
81 58814111
23272 Mill
Creek Dr
330
MXU 1.81 N/A 20 50 0.5 45 Commercial
North
Laguna
Hills
87 58814112
23282 Mill
Creek Dr
100
MXU 1.66 N/A 20 50 0.5 41 Commercial
North
Laguna
Hills
113
58816110 23332 Mill
Creek Dr MXU 0.70 N/A 20 50 0.5 17 Commercial Yes
North
Laguna
Hills
58816109 23382 Mill
Creek Dr MXU 0.71 N/A 20 50 0.5 17 Commercial Yes
North
Laguna
Hills
58816108 23422 Mill
Creek Dr MXU 0.71 N/A 20 50 0.5 17 Commercial Yes
North
Laguna
Hills
58816107 24411 Mill
Creek Dr MXU 0.57 N/A 20 50 0.5 14 Commercial Yes
North
Laguna
Hills
58816106
24411-
24461 Ridge
Route
MXU 0.29 N/A 20 50 0.5 7 Commercial Yes
North
Laguna
Hills

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CITY OF LAGUNA HILLS

2. CEQA Analysis
1690371.1
Map
ID # APN Address
Zoning/
General
Plan
Acres
Minimum
Density
(units/
acre)
Current
Maximum
Density
(units/
acre)
Proposed
Maximum
Density (units/
acre)
Realistic
Capacity
(Percent
Maximum)
Lower
Income
Units
Existing
Uses
Potential for Lot
Consolidation Area
58816113
24411-
24461 Ridge
Route
MXU 12.89 N/A 20 50 0.5 322 Commercial Yes
North
Laguna
Hills
63 58811119 23172 Plaza
Pointe Dr MXU 1.94 N/A 20 50 0.5 48 Commercial
North
Laguna
Hills
90 58811117 23297 S
Pointe Dr MXU 1.93 N/A 20 50 0.5 48 Commercial
North
Laguna
Hills
99 58811113 23342 S
Pointe Dr B MXU 1.69 N/A 20 50 0.5 42 Industrial
North
Laguna
Hills
101 58811108 23402 S
Pointe Dr MXU 0.76 N/A 20 50 0.5 19 Industrial Yes
North
Laguna
Hills
105 58811107 23432 S
Pointe Dr MXU 0.74 N/A 20 50 0.5 18 Industrial Yes
North
Laguna
Hills
103 58811115 23421 S
Pointe Dr MXU 2.58 N/A 20 50 0.5 64 Commercial
North
Laguna
Hills
106 58811116 23441 S
Pointe Dr MXU 1.45 N/A 20 50 0.5 36 Commercial
North
Laguna
Hills
107 58811106 23456 S
Pointe Dr MXU 1.27 N/A 20 50 0.5 31 Industrial
North
Laguna
Hills

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Packet Pg. 379 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing ADDENDUM TO THE GENERAL PLAN EIR FOR THE 2021 – 2029 HOUSING ELEMENT AND 2021 SAFETY ELEMENT UPDATE

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2. CEQA Analysis
1690371.1
Map
ID # APN Address
Zoning/
General
Plan
Acres
Minimum
Density
(units/
acre)
Current
Maximum
Density
(units/
acre)
Proposed
Maximum
Density (units/
acre)
Realistic
Capacity
(Percent
Maximum)
Lower
Income
Units
Existing
Uses
Potential for Lot
Consolidation Area
AV
Apts. 62033102 25211 Stockport St. MDR 10.92 N/A 18 50 1 294 Residential Central
Laguna
Hills
AP
Apts. 62025102 25212 Stockport St. MDR 10.17 N/A 18 50 1 303 Residential Central
Laguna
Hills
Total 55.57 1,452

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1695010.1
EXHIBIT 3
2021-2029 HOUSING ELEMENT UPDATE

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Packet Pg. 381 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element City of
Laguna Hills
2021-2029
Housing Element
Update
Third Revised Public Review Draft
May 2022

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Packet Pg. 382 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element ORANGE COUNTY • BAY A REA • SACRAMENTO • CENTRAL COA ST • LOS ANGELES • INLAND EMPIRE www.placeworks.com
Prepared By: PlaceWorks
101 Parkshore Drive, Suite 200
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t 916.245.7500
City of Laguna Hills
2021-2029 Housing Element Update
Third Review Public Review Draft
May 2022

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Table of Contents
Executive Summary............................................................................................ ES-5 Purpose of the Housing Element ....................................................................ES-5 Regional Housing Needs Assessment ............................................................ES-5 Overview ........................................................................................................ES-5 Public Outreach ..............................................................................................ES-6 Introduction .......................................................................................................... H-8 Purpose and Scope of the Housing Element.................................................... H-9 Relationship to Other General Plan Elements ................................................. H-9 Public Participation ....................................................................................... H-10 Housing Needs..................................................................................................... H-17 Community Profile ........................................................................................ H-17 Population Characteristics............................................................................. H-17 Employment Characteristics.......................................................................... H-20 Housing Characteristics................................................................................. H-24 Special-Needs Populations............................................................................ H-28 Housing Stock Characteristics....................................................................... H-47 Housing Costs and Affordability................................................................... H-51 At-Risk Rental Housing ................................................................................ H-56 Regional Housing Needs Assessment Allocation.......................................... H-65 Constraints on Housing Production.................................................................. H-66 Governmental Constraints............................................................................. H-66 Housing for Persons with Disabilities ........................................................... H-84 Development Fees and Entitlements ............................................................. H-85 On- and Off-Site Improvement Requirements............................................... H-89 Building Codes and Enforcement.................................................................. H-91 Processing and Permit Procedures................................................................. H-91 Measure M..................................................................................................... H-98 Regulatory Concessions and Incentives ...................................................... H-100 Market Constraints ...................................................................................... H-101 Environmental Constraints.......................................................................... H-105 Infrastructure Constraints............................................................................ H-106 Fair-Housing Assessment................................................................................. H-108 Outreach ...................................................................................................... H-108 Assessment of Fair Housing Issues ............................................................. H-111 Sites Inventory............................................................................................. H-145 Contributing Factors.................................................................................... H-170 Housing Resources............................................................................................ H-173 Available Sites for Housing......................................................................... H-173 Financial and Administrative Resources ..................................................... H-196 Energy Conservation ................................................................................... H-206

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Housing Plan ..................................................................................................... H-208 Evaluation of Accomplishments under Adopted Housing Element ............ H-208 2013–2021 Special Housing Needs: Summary of Accomplishments ......... H-208 Goals and Policies of 2021-2029 Housing Element .................................... H-223 Appendix A: Implementation Program.............................................................. A-1 Neighborhood and Housing Preservation........................................................ A-1 Housing Availability ....................................................................................... A-4 Equal Housing Opportunity........................................................................... A-12 Implementation and Monitoring .................................................................... A-14 Quantified Objectives.................................................................................... A-17 Appendix B: Summary of Public Input ...............................................................B-1 Public Outreach ................................................................................................B-1 Online Survey...................................................................................................B-1 In-Person Public Workshop..............................................................................B-3 Tables
Table H-1 Orange County Population Growth, 2010-2020.................................. H-18 Table H-2 Total Population by Age, 2014-2018 .................................................. H-19 Table H-3 Race and Ethnicity, 2014-2018 ........................................................... H-20 Table H-4 Hispanic or Latino Population, 2014-2018 ....................................... H-20 Table H-5 Unemployment Rate, 2018.................................................................. H-21 Table H-6 Employment Profile, 2014-2018 ......................................................... H-22 Table H-7 Average Salary by Occupation, 2020 .................................................. H-23 Table H-8 Household Characteristics, 2014-2018............................................... H-25 Table H-9 Households by Income Group, 2013-2017.......................................... H-26 Table H-10 Overcrowded Households, 2014-2018 .............................................. H-27 Table H-11 Overpayment by Income and Tenure, 2013-2017 ............................. H-28 Table H-12 Senior Households by Age and Tenure, 2014-2018.......................... H-29 Table H-13 Senior Households by Income and Tenure, Laguna Hills, 2012-2016 ....................................................................................... H-30 Table H-14 Female-Headed Family Households, 2014-2018............................... H-32 Table H-15 Disabled Population, 2014-2018 ....................................................... H-33 Table H-16 Employment for Disabled Population, 2014-2018 ............................ H-34 Table H-17 Persons with Disability by Type, 2014-2018 ................................... H-37 Table H-18 Summary of Homeless Estimates, 2019 ............................................ H-41 Table H-19 Sheltered Count and Bed Occupancy, Orange County, 2019 ........... H-41 Table H-20 Housing Inventory Chart, Orange County, 2019.............................. H-42 Table H-21 Major Homeless Facilities/Providers in Orange County .................. H-43 Table H-22 Housing Stock Composition, 2020................................................... H-47 Table H-23 Housing Tenure by Units in Structure, 2014-2018............................ H-48 Table H-24 Vacancy Rates, 2014-2018................................................................ H-49 Table H-25 Housing Units by Year Built, 2014-2018.......................................... H-50 Table H-26 House and Condominium Listings, February 2021 ........................... H-52 Table H-27 Single-Family Detached Homes and Condominium Sales, 2017-2020 ....................................................................................... H-52 Table H-28 Sample Apartment Rental Rates, 2021.............................................. H-53 Table H-29 Summary of Housing Affordability and Availability, 2020 .............. H-56

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Table H-30 Inventory of Assisted Rental Housing, 2021 ..................................... 57-H Table H-31A Rent Subsidies Required................................................................. 59-H Table H-31B Qualified Entities in Orange County, CA ....................................... 60-H Table H-32 Housing Cost Burdens by Income, Tenure, and Household Type, Laguna Hills, 2013-2017................................................................. H-64 Table H-33 Regional Housing Need Allocation................................................... H-65 Table H-34 Residential Land Uses and Zones...................................................... H-67 Table H-35 Basic Standards for Residential Development .................................. H-71 Table H-36 Typical Built Densities...................................................................... H-72 Table H-37 Parking Requirements for Residential Uses ...................................... H-73 Table H-38 Provisions for a Variety of Housing3................................................. H-75 Table H-38 (continued) Provisions for a Variety of Housing3............................. H-76 Table H-39 Accessory Dwelling Units Constructed 2016-2021.......................... H-78 Table H-40 Required Permit for Community Care Facilities (≥ Seven Individuals) ...................................................................... H-81 Table H-41A Planning and Development Fees .................................................... H-87 Table H-41B Comparable Fees (Other Cities)...................................................... H-88 Table H-41C Permit/Development Impact Fees................................................... H-89 Table H-42 Single-Family Construction Cost Estimates (2020) ........................ H-102 Table H-43 Disposition of Home Purchase Loans by Census Tract, 2019......... H-105 Table H-44A Identified RHNA Site Unit Capacity by TCAC/HCD Opportunity Area .......................................................................... H-146 Table H-44B Factors that Contribute to Fair-Housing Issues............................. H-171 Table H-45 Regional Housing Needs Allocation, 2021–2029........................... H-174 Table H-46 Progress Towards RHNA ................................................................ H-175 Table H-47 Anticipated Projects ........................................................................ H-181 Table H-48A Underutilized Sites, VC Zone....................................................... H-184 Table H-48B Underutilized, Candidate Rezone Sites......................................... H-186 Table H-49 Federal, State, and Private Housing Funding Programs................. H-199 Table H-50 Review of Previous Housing Element............................................. H-210 Table H-A1 Quantified Objectives....................................................................... A-18 Figures
Figure H-1 TCAC/HCD Opportunity Areas.................................................... H-112 Figure H-2 Regional R/ECAPs........................................................................ H-116 Figure H-3 Diversity Index (2010).................................................................. H-118 Figure H-4 Diversity Index (2018) .................................................................. H-119 Figure H-5 Racial Demographics (2018)......................................................... H-120 Figure-H-6 Median Household Income (2015-2019) ...................................... H-123 Figure H-7 Percent of Population Linguistically Isolated................................ H-124 Figure H-8 Percent of Population 18 Years and Over Living Alone ............... H-125 Figure H-9 Percentage of Children Living in Single-Parent Female-headed Households (2015-2019)............................................................... H-126 Figure H-10 Population with a Disability (2015-2019)..................................... H-128 Figure H-11 Jobs Proximity Index..................................................................... H-133 Figure H-12 Overpayment by Renters (2015-2019).......................................... H-136 Figure H-13 Overpayment by Owners (2015-2019).......................................... H-137 Figure H-14 Percent of Households Experiencing Overcrowding..................... H-139 Figure H-15 Sites Inventory Analysis by TCAC/HCD Opportunity Areas....... H-147

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Figure H-16 Sites Inventory Analysis by Racial Demographics ....................... H-150 Figure H-17 Sites Inventory Analysis by Diversity Index................................. H-151 Figure H-18 Sites Inventory Analysis by Median Household Income .............. H-154 Figure H-19 Sites Inventory Analysis by Disability Rate.................................. H-156 Figure H-20 Sites Inventory Analysis by Percentage of Children Living in Single-Parent Female Headed Households (2015-2019)............... H-158 Figure H-21 Sites Inventory Analysis by Jobs Proximity Index........................ H-160 Figure H-22 Sites Inventory Analysis by Overpayment by Renters (2015-2019)................................................................................... H-164 Figure H-23 Sites Inventory Analysis by Overpayment by Owners (2015-2019)................................................................................... H-165 Figure H-24 Sites Inventory Analysis by Households Experiencing Overcrowding................................................................................ H-168 Figure H-25 Sites Inventory (1 of 2) ................................................................. H-179 Figure H-26 Sites Inventory (2 of 2) ................................................................. H-180 Charts
Chart 1 Sites Inventory Analysis by Diversity Index (2018) ..................... H-149 Chart 2 Sites Inventory Analysis by Racial/Ethnic Demographic Composition (2018) ...................................................................... H-149 Chart 3 Sites Inventory Analysis by Median Household Income (2015-2019)................................................................................... H-153 Chart 4 Sites Inventory Analysis by Percentage of Population Living with a Disability ............................................................................ H-155 Chart 5 Sites Inventory Analysis by Children in Single-Parent FemaleHeaded Households....................................................................... H-157 Chart 6 Sites Inventory Analysis by Jobs Proximity Index ....................... H-159 Chart 7 Sites Inventory Analysis by TCAC Education Domain Score ...... H-161 Chart 8 Sites Inventory Analysis by Renter Cost Burden .......................... H-163 Chart 9 Sites Inventory Analysis by Rate of Overcrowding ...................... H-167

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Executive Summary
Purpose of the Housing Element
The Housing Element is part of the City of Laguna Hill’s General Plan. The City’s General Plan is a comprehensive long-range planning document that directs the physical development of the city. The core purpose of the Housing Element is to identify and plan for the existing and projected housing needs of all segments of the community, such as seniors, families, workers, and the disabled. The Housing Element describes housing needs and conditions in Laguna Hills and establishes goals, policies, and programs to improve future housing opportunities. The planning period for this Housing Element is October 15, 2021, to October 15, 2029.

Regional Housing Needs Assessment
California Government Code Section 65584 requires that each city and county plan to accommodate a fair share of the region’s housing construction needs. The Southern California Association of Governments (SCAG) prepares the Regional Housing Needs Assessment (RHNA) for the region based on existing and projected regional trends in population growth, household sizes, job accessibility, and transportation access. The City must plan for and help facilitate the development of 1,985 new homes in the community but is not obligated to build these units.

Overview
The Housing Element includes:
• Introduction: Describes the purpose and scope of the Housing Element, relationship to other General Plan element, and public participation.
• Housing Needs: Describes the supply and demand for housing in Laguna Hills.
• Constraints on Housing Production: Provides an analysis of constraints to the maintenance, improvement, or development of housing.
• Fair-Housing Assessment: Analyzes the conditions that historically limited the range of housing choices or limited a person’s access to housing and develops solutions to mitigate or remove such impediments for these persons.
• Housing Resources: Provides an approach for meeting the RHNA throughout the planning period.
• Housing Plan: A summary and evaluation of the previous Housing Element, which covered the 2013-2021 planning period (5th cycle).

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• Appendix A, Implementation Program: Updated programs from the 2013-2021 Housing Element based upon new state legislation. • Appendix B, Summary of Public Input: Identifies common themes expressed by stakeholders and residents through various outreach activities.

Public Outreach
As part of this update, the City conducted outreach activities, including:
• City Council Meeting: November 10, 2020

1. Topic: Introduction to Housing Element Process
• Stakeholder Consultations: January - February 2021
• Online Survey: June 15 - August 15, 2021
• Virtual Public Workshop: June 30, 2021
• In-Person Public Workshop: August 5, 2021
• City Council Meeting: October 26, 2021

2. Topic: Public Review Draft
• City Council Meeting: January 11, 2022

3. Topic: HCD Review Comments
• City Council Workshop March 26, 2022 (rescheduled from February 15)

4. Topic: Candidate Rezone Sites
• City Council Workshop: May 3, 2022

5. Topic: Candidate Rezone Sites
• City Council Meeting: May 24, 2022

6. Topic: Revised Public Review Draft Launch
Housing Needs
• The total population in Laguna Hills was 31,508 in 2020, representing a small increase in population from 2010, when it was 30,270. • The City’s housing stock is primarily detached single-family homes with

23.3 percent of the units being multifamily units, such as apartments and condominiums.
• There is a need for affordable housing in Laguna Hills. Approximately 40 percent of Laguna Hills households are paying more than 30 percent of their income on housing.
• About 54 percent of renter households have lower incomes (80 percent or less of the Area Median Income [AMI], compared with 27.2 percent of owner households).
• Vacancy rates are low (ownership housing is 0.6 percent and rental housing 2.9 percent), indicating a shortage of available housing and high competition, which generally leads to higher housing prices and diminished affordability.

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• Reserved affordable units in Laguna Hills and throughout the region have long waiting lists and vacancies are rare.

Housing Resources
The Housing Resources section provides a strategy to meet the RHNA. Since Laguna Hills is a built-out community, the City must look to underutilized sites to accommodate the RHNA. The land must have appropriate zoning, meaning development standards and regulations that facilitate housing development for all income categories. Density is one of the most important factors that affect the feasibility of housing that is affordable to households with lower incomes. Higher density reduces the land cost for each housing unit, thereby reducing total development cost. “Default” densities that are presumed to be suitable for lower-income housing are set by California statute. For Laguna Hills, like most cities in metropolitan areas, the default density is 30 housing units per acre. To satisfy the lower-income RHNA, the City will identify and rezone selected areas within the first year of the planning period.

Three anticipated projects are included in the strategy to meet the RHNA:
• Additional development at Oakbrook Village,
• Additional development in the Planned Community Via Lomas (PCV) area, and
• The former mall redevelopment project, currently known as the Village at Laguna Hills.

The remaining RHNA will be accommodated on land that the City will identify and rezone within the first year of the planning period. A list of potential candidate sites is provided in the Housing Resources section.

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Introduction
The residents of Laguna Hills take great pride in their city. Preserving the city’s small-town feel by maintaining the existing housing stock and the scale and character of the community is particularly important to the city’s residents. Residents also recognize the importance of providing housing opportunities for all members of the community by providing more diverse housing types. A variety of housing options will enable older and younger generations to remain in the community as well as those of all economic levels and those with special needs. Providing housing opportunities to all, on an equal basis, is important to the community.

Accordingly, this Housing Element identifies issues, strategies, and programs that focus on:

Neighborhood and housing preservation;
Housing availability;
Equal housing opportunity; and
Implementation and monitoring of the Housing Element.

The Laguna Hills Housing Element comprisesthe following major components:
• An analysis of the City’s population, housing, and employment base, and the characteristics of the City’s housing stock to define the nature and extent of unmet housing needs (Housing Needs Assessment). • A review of potential constraints to meeting the City’s identified housing needs (Constraints on Housing Production).
• An evaluation of opportunities that will further the development of new housing (Housing Resources).
• A plan to address the identified housing needs in Laguna Hills by reviewing past accomplishments, establishing goals and policies, and crafting programs that will enable the City to achieve its housing objectives (Housing Plan).
• An assessment of fair housing.

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Purpose and Scope of the Housing
Element
Every California city and county is required to include a housing element in its general plan that establishes housing goals, policies, and programs that respond to community housing conditions and needs. The purpose of this Housing Element is to identify housing opportunities and solutions specific to the housing issues of the City of Laguna Hills.

REGIONAL HOUSING NEEDS ASSESSMENT
State housing element law requires that Southern California Association of Governments (SCAG) determine the amount of housing needed in its region and allocate the need to each community. The allocation of housing need is based on statewide and local projections of population, employment, and housing need. State law requires cities to ensure that adequate sites, public facilities, and services are available to facilitate housing production commensurate with their housing need. Laguna Hills’ Housing Element identifies programs to address its share of the region’s housing need.

HOUSING ELEMENT CYCLE
This Housing Element has been prepared in compliance with the 2021-2029 planning cycle for cities within the SCAG region. The Housing Element covers an eight-year planning period from October 15, 2021–October 15, 2029, and the SCAG Regional Housing Needs Assessment (RHNA) period from June 30, 2021–October 15, 2029.

Relationship to Other General Plan
Elements
The Laguna Hills General Plan includes the following components: (1) Introduction to the General Plan; (2) seven elements, including Land Use, Mobility, Conservation and Open Space, Community Services and Facilities, Safety, Noise, and Housing; and (3) an Implementation Program.

Background information and policy direction presented in one element are also reflected in other General Plan elements. For example, residential development capacities established in the Land Use Element are incorporated into the Housing Element. The City is updating its Safety Element concurrently with this Housing Element.

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This Housing Element builds upon other General Plan Elements and is consistent with the policies and proposals set forth by the General Plan. For example, the Land Use Element identifies use designations at densities that will facilitate the provision of a range of residential housing products for all income groups. The Mobility Element plays a role in the location of residential development in relation to roads, transit, pedestrian, and bicycle facilities. The Noise Element establishes noise levels appropriate for residential uses. Whenever an element in the General Plan is amended, the Housing Element will be reviewed and modified, as necessary, to ensure the continued consistency between elements.

Public Participation
California law requires that local governments make a diligent effort to achieve public participation from all economic segments of the community in the development of the Housing Element. Public participation played an important role in the formulation and refinement of the City’s housing goals and policies and in the development of the housing plan for the City of Laguna Hills. Laguna Hills’ residents had several opportunities to recommend strategies, review, and comment on the Housing Element.

The City’s website details the Housing Element Update process and components.

PUBLIC REVIEW DRAFTS
The first Public Review Draft Housing Element was posted on the City’s website on October 18, 2021, and an announcement of its availability was emailed to stakeholders. The Public Review Draft Housing Element was discussed at City Council meeting that was open to the public on October 26, 2021. The draft was submitted to HCD for the initial 60-day review on November 5, 2021. The City received a call from HCD on December 13, 2021 with preliminary comments on the draft. The City revised the draft in response to those comments and released a revised second Public Review Draft on December 21, 2021. HCD issued a formal Housing Element review letter on January 4, 2022. The City Council discussed HCD’s review letter at a meeting on January 11, 2022. At this meeting, the City Council directed staff to schedule a public workshop to further discuss the Housing Element Update, including a draft inventory of housing sites. Public workshops were conducted on March 26, 2022, and May 3, 2022, including discussion of different housing site scenarios. At the May 3 Workshop, a majority of the City Council reached consensus on specific parcels to include in the City’s housing site inventory and directed staff to prepare a revised third Public Review Draft Housing Element for consideration at the City Council’s regularly scheduled meeting of May 24, 2022.

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A summary of input from the public gained via the following avenues is described herein.
• Stakeholder consultations
• Online community outreach survey
• Letters received
• Workshops and meetings

SUMMARY OF INPUT
The City sought feedback in a variety of ways. Participants, which included residents and other stakeholders, identified and discussed challenges, opportunities, and resources related to housing in Laguna Hills. Comments received through the outreach activities have been considered in the development of the housing plan for the City of Laguna Hills. Public input on the selection of candidate rezone sites at City Council workshops was integral to the development of the sites inventory. Many action items were added to the programs based on input in letters from housing advocates, including greater emphasis on promoting available incentives and permit streamlining for residential development that includes affordable housing, a multifaceted effort to facilitate the production of accessory dwelling units and designing an inclusionary housing program.

Stakeholder Consultations
In January and February 2021, the City reached out to 12 stakeholders representing various public and private sectors and completed eight one-onone consultations. Participants included two building industry experts, two homelessness service providers, and three community-based organizations.

Additionally, the United States Department of Housing and Urban Development’s (HUD’s) Regional Office for Fair Housing and Equal Opportunity provided data on fair housing. The following is a list of stakeholders that the City consulted with.
• Orange County Business Council
• Mercy House
• Kennedy Commission
• Family Assistance Ministries
• Orange County Association of Realtors
• Regional Center of Orange County
• Building Industry Association of Southern California, Orange County chapter
• HUD’s Regional Office for Fair Housing and Equal Opportunity For organizations working with special-needs populations, the biggest barrier for securing decent, affordable housing is the lack of housing supply and assistance to provide the services needed. For developers and housing advocates, the challenge is the lack of incentive to build affordable housing,

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considering the high construction costs, fees, and time required for California Environmental Quality Act (CEQA) compliance and council approval. Stakeholders shared similar sentiment about the lack of political support from government or community to prioritize affordable housing, including the pressures of individuals and groups who express opposition to homeless shelters, affordable housing development, and other housing services in their communities. The Housing Element includes programs that encourage the city to seek partnerships with affordable housing developers to expand housing opportunities in Laguna Hills, including the Urban Village Specific Plan Area (Programs H-6 and H-15). The City also intends to apply for CDBG funding to continue its partnership with Mercy House, a non-profit service provider to individuals and families experiencing homelessness (Program H-12).

Stakeholders identified strategic and innovative opportunities to help accelerate the production of housing. The most common opportunities are establishing partnerships amongst public agencies and community organizations and forming a regional approach to address housing issues.

Developers and housing advocates also mentioned that the reuse of underutilized or vacant properties can serve as new sites for housing development. In terms of promoting an equitable approach for housing, community organizations mentioned inclusive housing policies and programming, and a plan for assisting families living in affordable housing to obtain homeownership or market-rate housing. The Assessment of Fair Housing (AFH) section of this Housing Element includes an analysis of fair housing choice in the city, identifies potential barriers to affordable housing, and sets meaningful actions to promote inclusive housing. These actions are enumerated in Program H-16.

Orange County is a highly desirable place to live. Stakeholders acknowledged that single-family housing is the housing type most in demand but building for all other housing types is needed. Regarding the types of housing density needed, stakeholders offered various perspectives. Community-based organizations stated that all types of housing densities could work. For affordable housing development, developers may need at least 60 units per project to be profitable. In Laguna Hills, the densities that work best for housing and that are desirable is attached housing with 18 to 23 dwelling units per acre (du/ac.), according to a developer. To ensure there is sufficient land available for higher density development to support affordable housing for lower income households, the City will rezone and/or increase the allowable density, as required by state law (California Government Code Sections 65583(c)(1)(A) and 65583(c)(1)(B))(Program H-11).

The COVID-19 pandemic resulted in various challenges and opportunities for stakeholders. Developers first faced a slower production process but have since recovered. Real estate leaders shared about the increase in home sales and housing boom now that employment trends have turned to more flexible and work-from-home opportunities. However, for the most vulnerable residents, the pandemic has increased housing insecurity and exposed the

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existing disparities and systemic issues. Stakeholders working directly with vulnerable populations expect a shift in future discussion about how the City and county will address homelessness and prioritize policy and funding. The City commits to address homelessness and provide services to individuals and families that are at risk of homelessness through Programs H-3, H-4, H12, and H-14.

Online Community Outreach Survey
The City’s Planning Division created a survey for residents of Laguna Hills to determine how the Housing Element should plan for the City’s share of the RHNA. The survey was available from June 15, 2021, to August 15, 2021. See Appendix B: Summary of Public Input for key findings.

Letters Received
Prior to the release of the Public Review Draft Housing Element As of September 21, 2021, the City received four public comments from community representatives addressing current housing issues and providing recommendations for the Housing Element and development plans of the City.
• Kennedy Commission addressed the need to implement diverse community participation and outreach in the Housing Element planning process. Recommendations include community participation at all stages of the planning process, promotion of various levels of engagement, creation of a Housing Element workgroup, and engagement with the most vulnerable community members. (See Appendix B, Summary of Public Input.)
• Providence Community Health Investment encouraged the City Council to enact bold measures to increase the quality and quantity of affordable housing. Based on the results from their local community health needs assessment, the impact of stable housing is valuable for health and wellness. Providence encourages the City to increase affordable housing and leverage existing development opportunities to meet these goals. (Programs H-7, H-8, H-11, H-13, H-15, H-16, H-19, H-20 and H-21)
• Tapestry, a Unitarian Universality Congregation, encouraged the City to consider the housing needs of the homeless and those in the workforce. Tapestry would like the City to implement an inclusionary housing policy that would require 15 percent of units to be reserved as affordable, implement density-bonus incentives, identify sites to repurpose or rezone for housing, ease governmental constraints (streamline process and offer flexibility in development standards), and explore new financial resources for affordable housing. (Programs H-7, H-8, H-11, H-13, H-15, H-16, H-19, H-20 and H-21)

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• A group of concerned organizations on the development and planning of the Village at Laguna Hills (former mall redevelopment) submitted public comment. The organizations, led by the Kennedy Commission, included Tapestry, a Unitarian Universality Congregation, Orange County United Way, People for Housing Orange County, CLUE (Clergy and Laity United for Economic Justice), Homeless Advocacy Team from League of Women Voters of Orange Coast, Welcoming Neighbors Home, Christ Community Church,
Neighborhood Church Laguna Beach, Affordable Housing
Clearinghouse and Interfaith Council of Greater Rancho Santa Margarita. The letter provided recommendations to increase the quality and quantity of attainable housing for those who live and work in Laguna Hills by increasing the number of units for extremely low-income and very low-income, prioritizing the production of all 225 units; increasing the total amount of affordable housing units, and updating the General Plan environmental impact report (EIR) with information on jobs/housing balance. (Programs H-7, H-8, H-11, H-13, H-15, H-16, H19, H-20 and H-21) After the release of the Public Review Draft Housing Element Between the release of the Public Review Draft on October 18, 2021, and May 16, 2022, the City received 16 public comments from community representatives in response to the Public Review Draft Housing Element and City Council Workshops where candidate rezone sites were considered. • Welcoming Neighbors Home submitted letters dated January 20, 2022, February 14, 2022 and May 13, 2022. The letters acknowledge that the City made little progress in facilitating the development of housing affordable to households with lower incomes in the 5th cycle. To remedy this situation and increase affordable housing production in the 6th cycle, Welcoming Neighbor Homes (in consultation with the Kennedy Commission) recommends an inclusionary housing ordinance, affordable, congregational, mixed-use housing overlay zones, an adaptive reuse ordinance, an affordable ADU program, a community land trust, density bonuses (for lower-income households), incentives for affordable housing, a land value recapture, and affordable housing linkage fee.

Welcoming Home Neighbors urges the City to strengthen the potential inclusionary housing policy found in the latest draft of the Housing Element by committing the commission to a feasibility study within one year of the adoption of the housing element. Lastly, due to the No Net Loss Law (Senate Bill (SB) 166 – 2017), Welcome Home Neighbors would like the City to identify a surplus of available sites for lower income housing throughout the City so that all residents will have fair access to shopping, schools, transit, jobs, and other amenities. • Kennedy Commission addressed the addressed the need to implement diverse community participation and outreach in the Housing Element planning process. Additional recommendations include the development of various affordable housing policies and strategies such as inclusionary

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housing, increasing housing density, affordable housing, congregation housing, mixed-use housing overlay, and an affordable ADU program in order to serve lower income households. The Kennedy Commission also recommended the development of a community land trust, an adaptive reuse ordinance, and a program to incentive 100 percent affordable development on city own, private land, and surplus property. • Ahead of a City Council workshop to discuss candidate rezone sites, several residents in the La Paz and Cabot area and community representatives submitted comments to discuss the candidate rezone sites in the La Paz and Cabot area. Most people who submitted comments were concerned that the rezoning sites in this area to allow high density housing would create more traffic in an already congested area, lower property value, generate crime and disturb the community character of this area. In addition, other community members voiced how more vehicles on the street will increase pedestrian accidents especially since this area is a school community. Others thought sites in the La Paz and Cabot area were ideal for a mixed-use overlay zone and wanted the City to include these sites in the housing element inventory and commit to requiring 15 percent of new housing units on these sites to be affordable to lower income households.

Workshops and Meetings
City staff include Spanish speakers who were available for translation at each of these workshops and meetings. No translation was requested. • November 10, 2020, City Council Workshop: A workshop was held at a regularly scheduled City Council meeting where the public had the opportunity to address decision makers directly regarding housing issues, goals, and policies, as well as other general comments and concerns regarding housing. A presentation to the City Council and the public on the RHNA and Housing Element Update process and was provided.

This meeting was advertised in a manner consistent with City policy for public meetings. No public comments were received.
• June 30, 2021, Virtual Workshop: A workshop was held virtually to share information and obtain public input. However, no public comment was received.
• August 2021, Open House: An in-person workshop was held at the Laguna Hills Community Center. See Appendix B: Summary of Public Input for more information.
• October 26, 2021, City Council Meeting: Public Review Draft Launch • January 11, 2022, City Council Meeting: Discuss HCD’s comments on the draft Housing Element
• March 26, 2022, City Council Workshop: Discuss candidate rezone sites (rescheduled from February 15)

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• City Council Workshop, May 3, 2022: Discuss candidate rezone sites • City Council Meeting, May 24, 2022: Discuss third Revised Public Review Draft
• Date TBD, City Council Hearing to Adopt the Housing Element

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Housing Needs
This section of the Housing Element describes the supply and demand for housing in Laguna Hills and is divided into subsections that address the characteristics of population, employment, households, special-needs populations, housing stock, housing cost and affordability, and at-risk rental housing. This analysis provides the basis for developing a successful housing strategy that meets the needs of the community.

Community Profile
The City of Laguna Hills is in the San Joaquin Hills in southern Orange County, approximately 60 miles south of Los Angeles and 70 miles north of San Diego. Laguna Hills is bounded by the cities of Irvine and Lake Forest to the north, Interstate 5 and the cities of Mission Viejo and Lake Forest to the east, the City of Laguna Niguel to the south, and the cities of Aliso Viejo and Laguna Woods to the west.

In 1991, the City of Laguna Hills incorporated with an original land area of 3,325 acres. Two subsequent annexations in 1995 and 2000 have increased the land area of the City to 4,234 acres or 6.6 square miles.

The City is predominantly residential in character and contains a variety of diverse residential neighborhoods, ranging from estate residences to highdensity districts. The City is also home to over 500 businesses and contains a strong commercial base anchored by the Oakbrook Village Shopping Center and MemorialCare Saddleback Medical Center. The Laguna Hills Mall was a shopping mall that is being redeveloped by the owners as The Village at Laguna Hills. The proposed redevelopment includes residences (see Section 5, Housing Resources), a movie theater, a hotel, retail, office space, and parking structures.

Population Characteristics

POPULATION GROWTH TRENDS
According to the California Department of Finance, E-5 Population and Housing Estimates, the population of Laguna Hills was 31,131 in 2015 (Table H-1). In 2020, the most current data available, the total population in Laguna Hills was 31,508, representing a small increase in population from 2015 to 2020. In 2010, the population in the city was 30,270. The overall population growth rate in Laguna Hills was 4.1 percent from 2010 to 2020.

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Only one of the surrounding cities, Laguna Woods, experienced a decline in population from 2010 to 2020. All other nearby cities, including the unincorporated area of Orange County, had a positive population growth rate between 2010 and 2020, similar to Laguna Hills. The population growth rate in Lake Forest, Aliso Viejo, and the unincorporated area of Orange County exceeded that of Laguna Hills during this period.

Table H-1
Orange County Population Growth, 2010-2020
City/Area 2010 2015 2020
Percentage
Change
2010-2020
Laguna Hills 30,270 31,131 31,508 4.1%
Aliso Viejo 47,816 49,496 50,044 4.7%
Mission Viejo 93,174 95,953 94,267 1.2%
Laguna Woods 16,273 16,600 16,243 -0.2%
Laguna Niguel 62,979 64,457 65,316 3.7%
Lake Forest 77,395 79,376 84,711 9.5%
Unincorporated
Orange County 121,160 123,635 128,421 6.0%
Sources: California Department of Finance E-5 Population and Housing Unit Estimates, SCAG Housing Element Data

AGE CHARACTERISTICS
The age distribution of a population is an important factor in evaluating housing and community development needs and determining the direction of future housing development. Typically, each age group has distinct lifestyles, family types and sizes, income, and housing preferences. As people move through each stage of life, housing needs and preferences change. For example, young householders without children will have different housing preferences than middle-aged householders with children or senior householders living alone. Consequently, evaluating the age characteristics of a community is important in determining the housing needs of residents. As illustrated in Table H-2, Laguna Hills has a high percentage of people between the ages 45 and 74. Laguna Hills currently has two housing developments that provide housing explicitly for seniors. The Willows contains 152 ground-level housing units and Meridian contains 396 units with options for independent living, assisted living, and nursing care. Staff processed an application for a residential care facility for the elderly within the Alicia Gateway neighborhood. As of October 2021, it was under construction and expected to open in the fourth quarter of 2021.

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Table H-2
Total Population by Age, 2014-2018
Age Total Percentage of Total
Population
0 to 9 3,373 10.8%
10 to 19 3,739 12.0%
20 to 24 1,821 5.8%
25 to 34 3,522 11.3%
35 to 44 4,244 13.6%
45 to 59 7,064 22.7%
60 to 74 5,422 17.4%
75 to 84 1,186 3.8%
85 and over 814 2.6%
Source: 2014-2018 American Community Survey
Notes: American Community Survey numbers are estimates; there is a variable margin of error for all numbers. Due to rounding, totals may not equal 100%.

RACE/ETHNICITY CHARACTERISTICS
The racial and ethnic composition of a population affects housing needs because of the unique household characteristics of different racial/ethnic groups. These characteristics tend to correlate with other factors, such as family size, housing location choices, and mobility. As shown in Table H-3, the majority (70.0 percent) of the 2018 population in Laguna Hills was White, with Asians making up the next-largest ethnic group (15.0 percent). In Orange County, Whites also made up the majority of the population but constituted a slightly lower proportion (61.7 percent) of the population than in Laguna Hills. As shown in Table H-4, 21.0 percent of residents in Laguna Hills identified as Hispanic or Latino, compared with 34.1 percent of people county-wide.

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Table H-3
Race and Ethnicity, 2014-2018
Race
Laguna Hills Orange County
Number Percentage Number Percentage
White 21,819 70.0% 1,950,902 61.7%
Black or African
American 557 1.8% 54,732 1.7%
American Indian and
Alaska Native 52 0.2% 14,466 0.5%
Asian 4,681 15.0% 635,672 20.1%
Native Hawaiian and
Other Pacific Islander 15 0.0% 9,442 0.3%
Some Other Race 1,986 6.4% 370,679 11.7%
Two or More Races 2,075 6.7% 128,289 4.1%
Total 31,185 100% 3,164,182 100.0%
Source: 2014-2018 American Community Survey
Notes: A portion of each of the race categories may also contain those identifying as Hispanic. See also Table H-4.

Table H-4
Hispanic or Latino Population, 2014-2018
Laguna Hills Orange County
Number Percentage Number Percentage
Total population 31,185 100.0% 3,164,182 100.0%
Hispanic or Latino
(of any race) 6,540 21.0% 1,080,195 34.1%
Not Hispanic or Latino 24,645 79.0% 2,083,987 65.9%
Source: 2014-2018 American Community Survey
Employment Characteristics

OCCUPATION AND LABOR PARTICIPATION
Employment has an important impact on housing needs. Different jobs and income levels determine the type and size of housing that a household can afford. In addition, employment growth within a region typically results in an increase in housing demand.

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According to the American Community Survey (ACS), the unemployment rate in 2018 in Laguna Hills was 3.4 percent, which was similar to the countywide rate of 3.3 percent, and lower than the state-wide rate of 4.2 percent.

Table H-5
Unemployment Rate, 2018
Laguna Hills Orange County California
Unemployment Rate 3.4% 3.3% 4.2%
Source: 2018 American Community Survey
Notes: Data includes the civilian population ages 16 years and over. American Community Survey numbers are estimates; there is a variable margin of error for all numbers.

According to the 2014-2018 American Community Survey, 16,348 Laguna Hills residents were in the civilian labor force. The labor force includes employed and unemployed persons aged 16 years and above. Table H-6 shows groups of occupations and the numbers of Laguna Hills and Orange County residents whose jobs are in these categories. Table H-7 shows average annual salaries by occupational title.

In both Laguna Hills and Orange County, a majority of residents were employed in the fields of professional services, education, social services, business, information, and arts. These categories include some of the highest-paying types of jobs, including those in architecture and engineering ($183,039), management ($139,225), healthcare ($101,125), and legal ($147,030). Approximately a third of the residents of both Laguna Hills and Orange County were employed in the fields of retail, public administration, manufacturing, transportation, and wholesale trade occupations. These categories include some of the lowest-paying types of jobs, including those in food preparation and serving ($32,613), transportation and material moving ($38,010), sales ($51,402), and office support ($47,191). Within Laguna Hills, Saddleback Memorial Medical Center is the largest employer of Laguna Hills residents. The Center for Demographic Research estimates that 1,636 residents work for the hospital, comprising approximately 10 percent of Laguna Hills residents in the civilian labor force based on 2014- 2018 American Community Survey data. Other major employers include Valley Insurance Service, Inc. (approximately 458 employees), Productive Playhouse Inc (approximately 268 employees) and Allied Business Schools, Inc. (approximately 250 employees).

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Table H-6
Employment Profile, 2014-2018
Occupation
Laguna Hills Orange County
Number Percentage Number Percentage
Business, management,
information, and arts
occupations
3,808 23.3% 340,636 21.6%
Retail and public
administration
occupations
2,548 15.6% 209,865 13.3%
Professional services,
education, and social
services occupations
5,782 35.4% 531,713 33.7%
Manufacturing,
transportation, and
wholesale trade
occupations
2,318 14.2% 310,297 19.7%
Agriculture, construction,
and other occupations 1,892 11.6% 185,568 11.8%
Total 16,348 100.0% 1,578,079 100.0%
Source: 2014-2018 American Community Survey
Notes: Data includes the civilian employed population ages 16 years and over. American Community Survey numbers are estimates; there is a variable margin of error for all numbers.

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Table H-7
Average Salary by Occupation, 2020
Major Occupations Average Annual Salary
Architecture and Engineering $183,039
Arts, Design, Entertainment, Sports, and Media $65,620
Building and Grounds Cleaning and Maintenance $35,880
Business and Financial Operations $80,107
Community and Social Services $58,617
Computer and Mathematical $96,051
Construction and Extraction $62,616
Education and Library $72,247
Farming, Fishing, and Forestry $34,876
Food Preparation and Serving Related $32,613
Healthcare Practitioners and Technical $101,125
Installation, Maintenance, and Repair $56,597
Legal $147,030
Life, Physical, and Social Science $84,611
Management $139,225
Office and Administrative Support $47,191
Personal Care and Service $34,724
Production $42,181
Protective Service $57,788
Sales and Related $51,402
Transportation and Material Moving $38,010
All Major Occupations $72,455
All Occupations $61,720
Source: State Employment Development Department, 2020
Notes: Data includes the Anaheim-Santa Ana-Irvine metropolitan statistical area (MSA).

COMMUTE PATTERNS
Commute times can be an important indicator of the jobs-housing balance both within the city and the region. Long commute times can influence residents’ quality of life and the affordability of their cost of living. Low-cost housing that is very far from job centers may have a net effect of being expensive, particularly if low-cost transportation options, such as highfrequency transit, are not available. The majority of employed Laguna Hills residents have a commute time of less than 24 minutes, and the mean commute time is 24.7 minutes. This suggests that while the City should still

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be mindful of future development sites and their proximity to employment centers, most residents do not currently experience long commutes. A notable minority of residents (18.7 percent) have commutes of 35 minutes or more, suggesting that they may work in northern Orange County or the Los Angeles area.

Housing Characteristics

HOUSEHOLD TYPE AND SIZE
Household characteristics are important indicators of the type of housing needed in a community. The United States Census defines a household as all persons who occupy a housing unit, which may include families related by birth, marriage, or adoption, unrelated individuals living together, or individuals living alone. People living in group quarters, such as retirement or convalescent homes, dormitories, or other group living situations, are not considered households. The Census defines a family as a group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together.

In 2018, there were 10,555 households in Laguna Hills (Table H-8). Families constituted 72.7 percent of households in the City, a proportion slightly greater than in Orange County (71.8 percent). Families with children represented 26.5 percent of households in Laguna Hills and 31.5 percent in Orange County. Single-person households represented 19.6 percent of households in Laguna Hills, while there were slightly more single-person households in Orange County (21.1 percent).

Housing needs generally vary by household type. Families are more likely to occupy detached single-family homes than single-person households, particularly in suburban communities like Laguna Hills. However, some families are unable to purchase or rent a detached single-family home and may reside in multifamily apartments, condominiums, or townhome units.

Single-person households, typified by seniors or young adults, tend to reside in apartment units, condominiums, townhomes, or smaller, detached singlefamily homes. The Laguna Hills housing stock (Table H-22) provides a range of unit types. The housing stock comprises 56.7-percent single-family detached units; 17.0 percent single-family attached units; 18.2 percent multifamily units, such as apartments and condominiums; and 3.1 percent mobile homes or other units.

Household size identifies sources of population growth and household overcrowding. A city’s average household size will increase over time if there is a trend toward larger families. In communities where the population is aging, the average household size may decline. The average household size for Laguna Hills in the 2014-2018 period was 2.9, which was slightly lower than Orange County, with an average household size of 3.0.

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Table H-8
Household Characteristics, 2014-2018
Household Type
Orange County Laguna Hills
Number Percent Number Percent
Families 741,721 71.8% 7,670 72.7%
With Children 324,922 31.5% 2,793 26.5%
Single Persons 217,407 21.1% 2,074 19.6%
65 Years and Older 93,044 9.0% 901 8.5%
Non-family 290,652 28.2% 2,885 27.3%
Total Households 1,032,373 100.0% 10,555 100.0%
Average Household Size 3.0 2.9
Average Family Size 3.5 3.4
Source: 2014-2018 American Community Survey

HOUSEHOLD INCOME
The income earned by a household is an important indicator of the household’s ability to acquire adequate housing. While upper-income households have more discretionary income to spend on housing, lowerand moderate-income households are more limited in the range of housing that they can afford. Typically, as household income decreases, the incidence of overpayment and overcrowding increases.

The California Department of Housing and Community Development (HCD) has developed the following income categories:
• Extremely low-income households earn between 0 and 30 percent of the County Area Median Income (AMI), adjusted for household size; • Very low-income households earn between 31 and 50 percent of the County AMI, adjusted for household size;
• Low-income households earn between 51 and 80 percent of the County AMI, adjusted for household size;
• Moderate-income households earn between 81 and 120 percent of the County AMI, adjusted for household size; and
• Above-moderate/upper-income households earn over 120 percent of the County AMI, adjusted for household size.

Similarly, the U.S. Department of Housing and Urban Development (HUD) uses Census data to develop special tabulation by HUD income group and household type. This data set is known as the Comprehensive Housing Availability Strategy (CHAS). The federal CHAS data separates California’s very low-income category into extremely low (0–30 percent AMI) and very low (31–50 percent AMI) incomes and combines California’s moderateincome and upper-income categories.

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CHAS income distributions for Laguna Hills and Orange County are presented in Table H-9. Laguna Hills is generally more affluent, as compared with Orange County as a whole. As seen in Table H-9, 35.1 percent of all households in Laguna Hills and 44.8 percent of all households in Orange County have low, very low, and extremely low-incomes; whereas 64.7 percent of all households in Laguna Hills and 55.2 percent of all households in Orange County have moderate and above-moderate incomes.

According to CHAS data, almost 10 percent of the City’s households from 2013 to 2017 qualified as extremely low income (0–30 percent AMI) and very low income (31–50 percent AMI). During the same time, 15.6 percent of the city’s households qualified as low income (51–80 percent AMI).

About 54 percent of renter households qualified as low income or below, compared with 27.2 percent of owner households. In Orange County, over 44 percent of households were considered low income or below, compared with 35.2 percent of households in the City of Laguna Hills.

During the planning period, the extremely low-income housing need is projected to be 284 units, which is derived from presuming 50 percent of the very low-income housing need (568 units) from the Regional Housing Need Assessment. The housing needs of households with extremely low incomes are discussed in the section below on Special-Needs Populations.

Table H-9
Households by Income Group, 2013-2017
City of Laguna Hills
Income Group Owner
Households
Percentage
of Owner
Households
Renter
Households
Percentage
of Renter
Households
Total
Households
Percentage
of Total
Households
Orange
County
Extremely
Low Income
(0-30% AMI)
470 6.4% 540 17.8% 1,010 9.7% 14.9%
Very Low
Income
(31-50% AMI)
635 8.7% 385 12.7% 1,020 9.8% 12.5%
Low Income
(51-80% AMI) 885 12.1% 735 24.2% 1,620 15.6% 17.4%
Moderate and
Above
(greater than
80% of AMI)
5,330 72.8% 1,380 45.4% 6,710 64.7% 55.2%
Total 7,320 100.0% 3,040 100.0% 10,360 100.0% 100.0%
Source: CHAS Data, 2013-2017.

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OVERCROWDING
An overcrowded household is typically defined as one with more than one person per room, excluding bathrooms, kitchens, hallways, and porches.

According to the U.S. Census, a severely overcrowded household is defined as one with more than 1.5 persons per room. Overcrowding results from either a lack of affordable housing and/or lack of available housing units of adequate size.

According to the American Community Survey estimates (2014-2018), approximately 479 households, or 4.5 percent, of the households in Laguna Hills were living in overcrowded conditions (Table H-10).

About 1.2 percent of households experienced severely overcrowded conditions. The rate of overcrowding in Laguna Hills is significantly lower than the rate in Orange County, which is approximately 9 percent. In both the City of Laguna Hills and county-wide, owner-occupied households experienced overcrowded or severely overcrowded conditions less than renter-occupied households.

Table H-10
Overcrowded Households, 2014-2018
Owner Renter Total Percentage of
Occupied Units
Occupied Units 7,567 2,988 10,555 100.0%
Overcrowded Units 135 344 479 4.5%
Severely Overcrowded
Units 10 120 130 1.2%
Source: 2014-2018 American Community Survey
Notes: American Community Survey numbers are estimates; there is a variable margin of error for all numbers.

OVERPAYMENT
State and federal standards for housing cost burden (overpayment) consider a household as overpaying for housing if it spends more than 30 percent of its gross income on housing. A household spending more than it can afford for housing has less money available for other necessities and emergency expenditures. Very low-income households overpaying for housing are more likely to be at risk of becoming homeless than other households. Renter households overpay for their housing costs more often than owner households because of their typically lower incomes.

Table H-11 shows the number and proportion of households with housing cost burden by income range and tenure. According to CHAS data, 40.7 percent of Laguna Hills households overpaid for housing. Approximately

51.3 percent of renter households and 36.3 percent of owner households in the City use more than 30 percent of their incomes to cover housing costs.

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Not surprisingly, the percentage of households overpaying declines significantly as household income rises above the area median. Across Orange County as a whole, CHAS data indicate that approximately 40.5 percent of households overpaid for housing, which is approximately the same rate as Laguna Hills.

Table H-11
Overpayment by Income and Tenure, 2013-2017
Household
Income
Renter Households Owner Households Total Households
Total Overpaying Percentage
Overpaying Total Overpaying Percentage Overpaying Total Overpaying Percentage Overpaying Extremely
Low Income
(0-30% AMI)
540 435 80.6% 470 400 85.1% 1,010 835 82.7%
Very Low
Income
(31-50%
AMI)
385 355 92.2% 635 480 75.6% 1,020 835 81.9%
Low Income
(51-80%
AMI)
735 605 82.3% 885 650 73.4% 1,620 1,255 77.5%
Moderate
and Above
(greater
than 80% of
AMI)
1,380 165 12.0% 5,330 1130 21.2% 6,710 1,295 19.3%
Total 3,040 1,560 51.3% 7,320 2,660 36.3% 10,360
1 4,220 40.7%
Source: CHAS Data, 2013-2017.
1 Total number of households differs from other sections of the Housing Needs Assessment due to the use of different data sources (CHAS vs. ACS). Differences are typically due to the sample size for a particular category of data and are subject to sampling variability.

Special-Needs Populations
Certain segments of the population may have more difficulty in finding decent, affordable housing due to special needs or circumstances. Special circumstances may be related to one’s employment and income, family characteristics, disability, and household size, among other things. As a result, certain segments of residents in Laguna Hills may experience a higher prevalence of overpayment, overcrowding, or other housing problems.

According to the California Department of Housing and Community Development (HCD) “special needs” groups include senior households, agricultural workers, female-headed households, disabled persons, large households, extremely low-income households, and the homeless.

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SENIOR HOUSEHOLDS
Senior or elderly households are those headed by individuals aged 65 or older. The special needs of the elderly are a function of their often lower or fixed incomes, disabilities or limitations, and dependency needs. There are four main concerns with this group of the population: limited and often fixed incomes, poor health and associated high healthcare costs, mobility limitations and transit dependency, and high costs of housing. In addition, housing for the elderly often requires special attention to design to allow greater access and mobility. Housing within the vicinity of community facilities and public transportation also facilitates mobility of the elderly in the community.

According to the American Community Survey estimates (2014-2018), Laguna Hills had 5,086 individuals aged 65 or older, representing 16.3 percent of the total population. In the same year, Laguna Hills had 2,744 senior households, constituting roughly 26 percent of the city’s total households (Table H-12). Of the senior households, 74.4 percent were owner households, while 25.6 percent were renter households.

Table H-12
Senior Households by Age and Tenure, 2014-2018
Householder
Age
Senior Owner
Households
Senior Renter
Households
Total Senior
Households
Number Percentage Number Percentage Number Percentage
65 - 74
years
1,361 49.6% 308 11.2% 1,669 60.8%
75 - 84
years
528 19.2% 102 3.7% 630 23.0%
85 years
plus 152 5.5% 293 10.7% 445 16.2%
Total 2,041 74.4% 703 25.6% 2,744 100.0%
Source: 2014-2018 American Community Survey, SCAG Housing Element Data According to CHAS data, over 48 percent of all senior households had extremely low, very low, or low incomes (Table H-13). Approximately 73 percent of total senior renter households were of extremely low, very low, or low incomes, compared with 40 percent of total senior owner households.

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Table H-13
Senior Households by Income and Tenure, Laguna Hills, 2012-2016 Income Group
Senior Owner
Households
Senior Renter
Households
Total Senior
Households
Number Percentage Number Percentage Number Percentage
Extremely Low
Income
(0-30% HAMFI)
265 9.3% 210 7.4% 475 16.7%
Very Low Income
(31-50% HAMFI) 260 9.1% 110 3.9% 370 13.0%
Low Income
(51-80% HAMFI) 340 12.0% 190 6.7% 530 18.6%
Moderate and
Above (greater
than 80% of
HAMFI)
1,280 45.0% 190 6.7% 1,470 51.7%
Total 2,145 75.4% 700 24.6% 2,845 100.0%
Source: CHAS Data, 2012-2016, SCAG Housing Element Data Notes: HAMFI refers to Housing Urban Development Area Median Family Income.

California Department of Finance projections indicate that the population aged 65 and over in Orange County may increase from 525,927 in 2020 to 802,158 in 2040, an increase of over 52 percent. By 2050, the senior population is projected to increase to 823,154, a 56.5-percent increase from 2020.

As the number of older people and life expectancies increase, the demand for a variety of senior housing options will also increase. In addition to traditional facilities that offer independent living units, demand for intermediate care and assisted living will also increase, as well as for facilities offering a full range of living arrangements.

Laguna Hills currently has two housing developments that provide housing explicitly for seniors. The Willows contains 152 ground-level housing units and Meridian contains 396 units with options for independent living, assisted living, and nursing care. Staff processed an application for a residential care facility for the elderly within the Alicia Gateway neighborhood. As of October 2021, it was under construction and expected to open in the fourth quarter of 2021. The Housing Element contains programs that will benefit the senior population and provide additional senior housing opportunities (Programs H-3, H-6, H-7, H-8, H-14, H-16, and H-17).

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AGRICULTURAL WORKERS
The special housing needs of farm workers result from their low wages and the seasonal nature of their employment. According to the American Community Survey (2014-2018), less than 1 percent of Laguna Hills residents were employed in farming, forestry, or fishing occupations. Therefore, demand for housing generated by agricultural workers in the city is nominal and could be addressed adequately by overall housing affordability programs in the city and county. The 2017 US Department of Agriculture Census of Farmworkers identifies 1,772 persons employed as agricultural workers in Orange County. Of these workers, 1,106 work less than 150 days per year and are considered seasonal farmworkers. The City’s current Zoning Code does not presently specify regulation of farmworker or employee housing. As part of Program H- 7, the City will amend the Zoning Code to comply with the Employee Housing Act, Health and Safety Code Sections 17000-17062.5, permitting farmworker housing consisting of up to 36 beds in group quarters (farmworker housing complex) or up to 12 dwelling units subject to the same terms applicable to an agricultural use. Additionally, employee housing that serves six or fewer employees shall not be subject to regulations to which other family dwellings of the same type in the same zone are not likewise subject.

FEMALE-HEADED HOUSEHOLDS
Single-parent families with children often require special attention because of their needs for affordable childcare, healthcare, and housing assistance.

Female-headed families with children in particular tend to have lower incomes, thus limiting housing availability for this group. According to the American Community Survey (2014-2018), of the 10,555 family households in Laguna Hills, 1,019 were female-headed family households, or 9.7 percent (Table H-14). In this period, approximately 3.7 percent of all families in Laguna Hills were under the poverty level. It is important to note, however, that only 1.3 percent of female-headed families were under the poverty level.

The Housing Element contains programs that could benefit single-parent, female-headed households. The Housing Element also contains programs targeted to low-income households, which may benefit female-headed households (Programs H-3, H-6, H-7, H-8, H-14, H-16, and H-17).

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Table H-14
Female-Headed Family Households, 2014-2018
Estimate
Percentage
under
Poverty Level
Total Family Households 10,555 3.7%
Total Female-Headed Family Households 1,019 1.3%
Female-Headed Family Households
with Children 125 1.2%
Female-Headed Family Households
with 3 or more Children 106 1.0%
Source: 2014-2018 American Community Survey, SCAG Housing Element Data Notes: American Community Survey numbers are estimates; there is a variable margin of error for all numbers.

PERSONS WITH DISABILITIES
Disability is a physical or mental condition that substantially limits one or more major life activities. Physical disabilities can hinder access to housing units of conventional design, as well as limit the ability to earn adequate income. The American Community Survey defines six types of disabilities:
hearing, vision, cognitive, ambulatory, self-care, and independent living difficulty. A more detailed description of each disability is provided below:
• Hearing difficulty: Deaf or having serious difficulty hearing. • Vision difficulty:Blind or having serious difficulty seeing, evenwhen wearing glasses.
• Cognitive difficulty: Because of a physical, mental, or emotional problem, having difficulty remembering, concentrating, ormaking decisions. • Ambulatory difficulty: Having serious difficulty walking or climbing stairs.
• Self-care difficulty: Having difficulty bathing or dressing. • Independent living difficulty: Because of physical, mental, or emotional problem, having difficulty doing errands alone,such as visiting a doctor’s office or shopping.

The 2014-2018 American Community Survey five-year estimates show approximately 2,508 people, or approximately 8.1 percent of Laguna Hills residents, reported having one or more disabilities (Table H-15). The senior population in Laguna Hills has a higher incidence of disability, with approximately 1,305 individuals, or 4.2 percent, of the population 65 and older reporting a disability.

Physical and mental disabilities can hinder a person’s access to traditionally designed housing units (and other facilities) as well as potentially limit the ability to earn income. The most obvious housing need for persons with disabilities is housing that is adapted to their needs. Most multistory single6.1.a Packet Pg. 415 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element H-33
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family homes are inaccessible to people with mobility and sensory limitations.

Housing may not be adaptable to widened doorways and hallways, access ramps, larger bathrooms, lowered countertops, and other features necessary for accessibility. The cost of retrofitting a home often prohibits homeownership, even for individuals or families who could otherwise afford a home. Furthermore, some providers of basic home-buying services do not have offices or materials that are accessible to people with mobility, visual, or hearing impairments.

Table H-15
Disabled Population, 2014-2018
Estimate % of Total
Population
Total Population (civilian noninstitutionalized) 31,028 100.0% <5 Years with Disability 0 0.0%
5 to 17 years with Disability 169 0.5%
18 to 64 Years with Disability 1,034 3.3%
65 Years + with Disability 1,305 4.2%
Total Population with Disability 2,508 8.1%
Source: 2014-2018 American Community Survey
Notes: American Community Survey numbers are estimates; there is a variable margin of error for all numbers.

Additionally, some disabilities may limit a person’s ability to earn income, or to access higher-income jobs. Of the approximately 1,034 Laguna Hills residents between the ages of 18 and 64 with disabilities, over half (544 residents) are not in the labor force, and an additional 64 are in the labor force but unemployed, for a total of 58.8 percent of residents between the ages of 18 and 64 with disabilities that are either not in the labor force or are in the labor force but unemployed (Table H-16). This highlights the need for a variety of types of accessible housing that is affordable to individuals and households that cannot participate in the labor market.

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Table H-16
Employment for Disabled Population, 2014-2018
Estimate % of Population
Age 18-64
Total Population (Age 16-64) 19,588 100.0%
Employed with Disability 426 2.2%
Unemployed with Disability 64 0.3%
Not in Labor Force with Disability 544 2.8%
Total Population with Disability 1,034 5.3%
Source: 2014-2018 American Community Survey
Notes: American Community Survey numbers are estimates; there is a variable margin of error for all numbers.

As defined by federal law, “developmental disability” means a severe, chronic disability of an individual that:
• Is attributable to a mental or physical impairment or combination of mental and physical impairments;
• Is manifested before the individual attains age 22;
• Is likely to continue indefinitely;
• Results in substantial functional limitations in three or more of the following areas of major life activity: (a) self-care, (b) receptive and expressive language,( c)learning, (d)mobility,( e) self-direction, (f) capacity forindependent living, or(g) economic self-sufficiency; and • Reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated.

The Census does not record developmental disabilities. According to the U.S.

Administration on Developmental Disabilities, an accepted estimate of the percentage of the population that can be defined as developmentally disabled is 1.5 percent. This equated to approximately 473 persons in the City of Laguna Hills with developmental disabilities, based on the California Department of Finance population estimates.

According to the State’s Department of Developmental Services, approximately 230 Laguna Hills residents with developmental disabilities sought services at the Regional Center of Orange County. Almost two-thirds of these individuals are over the age of 18; however, about 37 percent are less than 17 years old.

Many persons with developmental disabilities can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional

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environment where medical attention and physical therapy are provided.

Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of interdependence as an adult.

The State Department of Developmental Services (DDS) currently provides community-based services to approximately 362,000 persons with developmental disabilities and their families through a statewide system of 21 regional centers, four developmental centers, and two community-based facilities. The Regional Center of Orange County (RCOC) is one of 21 regional centers in California that provides point-of-entry services for people with developmental disabilities. The RCOC is a private, nonprofit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families.

Any resident of Orange County who has a developmental disability that originated before age 18 is eligible for services. Services are offered to people with developmental disabilities based on Individual Program Plans and may include adult daycare programs; advocacy;
assessment/consultation; behavior management programs; diagnosis and evaluation; independent living services; infant development programs; information and referrals; mobility training; prenatal diagnosis; residential care; respite care; physical and occupational therapy; transportation; consumer, family vendor training; and vocational training. RCOC also coordinates the state-mandated Early Start program, which provides services for children under age three who have or are at substantial risk of having a developmental disability. According to the RCOC January 2021 Facts and Statistics data, the RCOC currently serves approximately 22,000 individuals.

The Dayle McIntosh Center is a private, nonprofit organization serving Orange County that partners with people with disabilities to address barriers preventing individuals with disabilities from achieving independence and self-sufficiency. The Center is one of over 500 designated centers for independent living in the nation. Most of the staff and board members are individuals with disabilities who have achieved independence themselves.

Although the Center does not own or operate any housing units nor have funds for emergency shelter, programs provided include community transition services, housing assistance, independent living skills for the deaf, independent living skills training, peer counseling, and more. From 2019- 2020, the Center served a total of 804 individuals who received ongoing service delivery and provided resources to an addition 932 contacts.

Vocational Visions, a nonprofit organization in Mission Viejo, has provided services to south Orange County residents with developmental disabilities in partnership with Saddleback Valley Unified School District since 1974 when the program began with 30 clients and a staff of 5. This organization currently has over 500 clients and a staff of over 100 people.

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Vocational Visions has helped thousands of men and women with disabilities obtain employment, further education, and reach both professional and personal goals. Effective treatment increases the level of functioning for many of these clients, thus maximizing their quality of life vocationally, economically, and socially. Services are provided to qualifying persons at no charge.

Vocational Visions is accredited by the Commission on Accreditation of Rehabilitation Facilities (CARF) and is the only family-based program in south Orange County. It offers eight comprehensive programs, including Day Training Activity Program, Health Related Services Program, Emeritus Program, Adult Development Program, Work Activity Program, Vocational Rehabilitation Work Activity Program, Supported Employment, and South County Clubhouse.

As shown in Table H-17, just over half of the total disabled population is 65 years of age or older. In that group, the most common types of disability are ambulatory, independent living difficulty and hearing difficulty. Forty-one percent of the total disabled population is between the ages of 18 and 64.

For this group, the most common types of disability are cognitive, ambulatory and independent living difficulty. People under 18 years of age with a disability make up 6.7 percent of the total disabled population. For this group, the most common type of disability is cognitive.

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Table H-17
Persons with Disability by Type, 2014-2018
Persons with a
Disability
Percentage of
Disabled
Population
Total Disabled Population 2,508 100.0%
Under 18 Years 169 6.7%
With a hearing difficulty 52 2.1%
With a vision difficulty 59 2.4%
With a cognitive difficulty 163 6.5%
With an ambulatory difficulty 52 2.1%
With a self-care difficulty 68 2.7%
18-64 Years 1,034 41.2%
With a hearing difficulty 289 11.5%
With a vision difficulty 277 11.0%
With a cognitive difficulty 631 25.2%
With an ambulatory difficulty 506 20.2%
With a self-care difficulty 393 15.7%
With an independent living difficulty 499 19.9%
65-Plus Years 1,305 52.0%
With a hearing difficulty 468 18.7%
With a vision difficulty 143 5.7%
With a cognitive difficulty 336 13.4%
With an ambulatory difficulty 733 29.2%
With a self-care difficulty 283 11.3%
With an independent living difficulty 547 21.8%
Source: 2014-2018 American Community Survey
Notes: American Community Survey numbers are estimates; there is a variable margin of error for all numbers.

Housing opportunitiesfor disabled persons can be addressed through the provision of affordable, barrier-free housing. In addition to the development of newunits,rehabilitation assistance can be used to make necessary improvements to remove architectural barriers to existing units. The Housing Element contains programstocreate reasonable accommodationsprocedures and educate residents about housing services available to persons with disabilities (H-17), and to continue programs that provide rehabilitation assistance (H-3).

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LARGE HOUSEHOLDS
Large households (with five or more persons) are identified as a group with special housing needs based on the limited availability of adequately sized, affordable housing units. Some large households are lower income, resulting in the overcrowding of smaller dwelling units and, in turn, accelerating unit deterioration. The American Community Survey (2014-2018) estimates that 1,288 households in Laguna Hills have five or more members, representing

12.2 percent of all City households. Among the large households, 58.9 percent were owner households and 41.1 percent were renter households.

Typically, the availability of adequately sized and affordable housing units is an obstacle facing large households. Since only 12.2 percent of Laguna Hills households are large households, Laguna Hills’ housing stock should be adequate to meet the needs of larger households. According to American Community Survey estimates (2014-2018), Laguna Hills had 5,126 two or three-bedroom housing units and another 4,206 housing units with four or more bedrooms. However, lower-income large renter households may have greater difficulty securing adequately sized units than other large renter households.

HOMELESS
According to HUD, a person is considered homeless if he/she is not imprisoned and:
• Lacks a fixed, regular, and adequate nighttime residence; • The primary nighttime residence is a publicly or privately operated shelter designed for temporary living arrangements;
• The primary residence is an institution that provides a temporary residence for individuals that should otherwise be institutionalized; or • The primary residence is a public or private place not designed for or ordinarily used as a regular sleeping accommodation.

The City has retained the nonprofit service provider Mercy House to help homeless individuals and families in Laguna Hills to obtain services and participates in regional efforts to address homelessness issues.

The City of Laguna Hills is part of the Orange County Continuum of Care System. HUD created the Continuum of Care process in 1994 to foster a single, coordinated, comprehensive planning process to create long-term solutions to the problem of homelessness and to serve as an application mechanism to apply for HUD homeless assistance program funds.

Continuum of Care is an umbrella term that covers the planning process involving government agencies, service providers, and advocates in the creation of a plan to assess the needs of homeless people and to devise a plan for delivering housing and services to meet those needs.

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Once a plan is developed, “the Continuum” or “the CoC,” as these planning bodies are called, apply for homeless assistance funds to develop and/or operate transitional housing, supportive services, and permanent housing for homeless people.

Orange County’s Continuum of Care System comprises a network of public, private, faith-based, for-profit, and nonprofit service providers. County agencies, such as the Housing and Community Services Department (HCS), Health Care Agency, Social Services Agency, and other county agencies, provide direct services for the homeless and/or significant resources for agencies serving the homeless. The region’s 34 municipalities also provide substantial resources for services that assist the homeless and those at risk of becoming homeless. A partnership exists between HCS’s Homeless Prevention Programs, 211 (formally known as Info Link Orange County), and OC Partnership (formerly known as Shelter and Hunger Partnership) to conduct community forums to focus on the entire system of care. These forums provide regional and coordinated meetings that focus on all issues relating to the County’s Continuum of Care System. Issues include temporary shelter and affordable housing, healthcare, case management, education, legal issues, transportation, supportive services, legislation, funding, and other related issues. Numerous public/private partnerships and collaboratives have been and continue to be developed and have enabled Orange County to expand the system of care through year-round, regional planning and coordinated efforts to better assist the homeless. When combined, these coordinated efforts decrease fragmentation and strengthen Orange County’s Continuum of Care System.

Table H-18 details the estimate of the homeless population in Orange County. According to the 2019 point-in-time survey (most current available data, as of March 2021), 6,860 persons were found to be homeless in shelters and on the streets in Orange County on January 22, 2019. Of those counted in the survey, 24 unsheltered and 0 sheltered residents were counted in Laguna Hills. According to the South County Street Outreach Program Monthly Report for May 2021 by Mercy House, sixty-one people moved from the streets into permanent housing and 119 people moved from the streets to temporary housing, emergency shelter or institutional care. From October 2019-May 2021 the outreach program served 26 clients, provided 124 services and 27 referrals in the City Laguna Hills. Program services include engagement, completing housing assessments to enter the Coordinated Entry System (CES) connecting individuals to the system of care including physical and mental health services, drug and alcohol rehabilitation, housing and other social services such and General Relief, CALFresh, Medi-Cal and addressing other conditions that may exist.

The South County Street Outreach Program is a regional approach funded by HEAP and City partners to address homelessness. Coordinated by Mercy House, the Outreach Program reported that for the month of November 2020, there was one person who exited the streets to permanent housing and three people exited the streets to temporary housing, emergency shelter, or institutional care. In Laguna Hills, the outreach program has served 19 clients

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to date and provided 63 services and 18 referrals. Program services include engagement, completing housing assessments to enter to Coordinated Entry Systems, connecting individuals to the system of care for physical or mental services, drug and alcohol rehabilitation, housing, and other social services such as General Relief, CAL Fresh, and Medi-Cal. Friendship Shelter is a nonprofit organization that provides year-round shelter and rehabilitation to homeless adults in South Orange County and is focused on finding the most appropriate permanent housing solution for each individual. According to the organization’s data analyst, Connor Stephenson, Friendship Shelter has a capacity for 91 beds in permanent supportive housing throughout south Orange County, largely funded by HUD. Friendship Shelter also has two emergency shelters in Laguna Beach with total capacity for 75 beds. The emergency shelters are funded by various sources, such as the City of Laguna Beach, County funding, private foundations, ESG (Emergency Solutions Grant), and a contract with Mission Hospital for six beds for their homeless discharges.

The COVID-19 pandemic intensified conditions for people experiencing homelessness. Friendship Shelter participated in Project Toolbelt, a program to house people experiencing homelessness during the pandemic and into hotels or other permanent housing. Since March 2020, there have been 143 individuals enrolled, according to the organization’s data analyst, Connor Stephenson. Of the total enrollees, 35 individuals have ended their episode of homelessness and 64 are currently active in the program.

Family Assistance Ministries (FAM) is a faith-based charitable nonprofit organization assisting the homeless population in South Orange County with resources for food, shelter, and personalized supportive counsel. According to Chief Executive Director Elizabeth Andrade, FAM has a total of 10 permanent housing units, which are at capacity year-round. FAM provides emergency shelter for families with young children and for single women.

The emergency shelter has 12 total units and 38 total beds available, of which, 90 to 95 percent of beds are used throughout the year. There is a 92- percent success rate of clients who move from an emergency shelter into permanent housing. For the emergency shelter, funding is provided through First Five of Orange County. For the permanent supportive housing, FAM is a recipient of a grant held by Mercy House. Common referral services are made to Social Services, CalWorks or CalFresh, Child Guidance Center, and One Stops. From July 2019 to June 2020, FAM is expected to serve over 200 clients or households in rental assistance.

Since the COVID-19 pandemic increased housing insecurity, FAM partnered with Orange County on Project Room Key, a program intended to house homeless individuals. FAM can refer clients that have tested positive for COVID or that have been exposed to hotels. There is capacity for 10 clients or households at a time. Since May, FAM has had capacity to house 17 households and could house more if they had more staff available. As of 2021, $750,000 has been allocated with an additional $1 million to be provided.

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Table H-18
Summary of Homeless Estimates, 2019
Homeless Episodes Source Estimate of Homeless
Point-in-time Count* Orange County 6,860 (one day)
Point-in-time Count Orange County, unsheltered 3,961
Point-in-time Survey Laguna Hills, unsheltered 24
Point-in-time Survey Laguna Hills, sheltered 0
*Point-in-time count occurred on January 22, 2019. Source: www.ocpartnership.net.

The 2019 Orange County Sheltered Point-in-Time Count and Survey provides a snapshot of the Orange County Continuum of Care’s inventory of housing resources. These housing resources include emergency shelter, transitional housing, rapid rehousing, permanent supportive housing, and other permanent housing that are dedicated to serve people who are homeless and specific subpopulations (Table H-20). The total number of beds provided on a given night for emergency shelters was 2,539, and for transitional housing it was 1,135 (Table H-19).

The 2019 Sheltered Point-in-Time numbers are based on surveys received from 32 Orange County homeless provider agencies regarding clients served on the night of January 22, 2019. Final Sheltered Point-in-Time numbers were tabulated from 76 different Emergency Shelter and Transitional Housing projects targeting homeless clients in Orange County. Point-inTime data was received from 99 percent of the projects expected to provide a response. Major homeless facilities/providers in Orange County and resources they provide are listed in Table H-21.

Table H-19
Sheltered Count and Bed Occupancy, Orange County, 2019
Housing Type 2019 Point-in-Time
Sheltered People
Vacant
Beds
Total
Beds
Average
Occupancy
Emergency Shelter 2,011 528 2,539 79.2%
Transitional Shelter 888 247 1,135 78.2%
Total Shelter Inventory 2,899 775 3,674 78.9%
Source: 2019 Orange County Sheltered Point-in-Time Count and Survey

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Table H-20
Housing Inventory Chart, Orange County, 2019
Household Type Individuals Families Total
Emergency Shelters 1,798
(400 seasonal) 590 2,388
Transitional Housing 319 816 1,135
Rapid Rehousing 159 615 774
Permanent Supportive Housing 1,711 516 2,227
Other Permanent Housing 88 16 104
Total 4,075 2,553 6,628
Source: 2019 Orange County Sheltered Point-in-Time Count and Survey

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Table H-21
Major Homeless Facilities/Providers in Orange County
Name Location Type Resources Available
Families
Forward Irvine Housing Assistance
Housing placement and case
management. Food assistance
and low-cost counseling
services.

Family
Promise of
Orange
County
Orange
Emergency
Shelter,
Transitional
Housing
Provides emergency shelter,
transitional housing, and case
management.

Homeless
Intervention
Services
(HIS)
Placentia Transitional
Housing
Runs HIS House, a nonemergency sober transitional
housing environment. Also, case
management services and job
training. Manages a home-share
program for homeless students
and housing placement
program.

Laura’s
House
Ladera
Ranch
Emergency
Shelter
Provides emergency shelter and
counseling for those fleeing
domestic violence.

Mercy House Santa
Ana
Emergency
Shelter,
Permanent
Supportive
Housing
Navigation center, rapid
rehousing, and permanent
supportive housing locations
across Orange County. Also
runs the South County Outreach
program to connect homeless
residents with housing services.

Pathways of
Hope Fullerton
Emergency
Shelter,
Permanent
Supportive
Housing
Emergency shelter, rapid rehousing, bridge housing, and permanent supportive housing.

Project Hope
Alliance
Costa
Mesa
Rapid
Rehousing
Rapid rehousing for families
facing homelessness, combined
with early education and literacy
programs for school-aged
children.

Serving
People in
Need (SPIN)
Costa
Mesa
Rental
Assistance
Provides move-in costs for
individuals moving into
permanent housing.

Women's
Transitional
Living Center
(WTLC)
Fullerton Rapid
Rehousing
Immediate housing for
individuals fleeing domestic
violence.

Source: Families Forward Community Resource Guide, 2018.

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During the COVID pandemic, Orange County contracted with a 76-bed hotel at 23061 Avenida de la Carlota in Laguna Hills as a temporary housing and medical facility for homeless residents at risk of exposure to COVID.

This temporary housing was part of the State’s Project Room Key program and was closed on October 16, 2020.

The City’s Zoning Ordinance defines an emergency shelter as “housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person, or as may be amended by Health and Safety Code Section 50801(e). No individual or household may be denied emergency shelter because of an inability to pay.” The City permits supportive and transitional housing facilities for six or fewer persons in all residential zones as a residential use. Emergency shelters are permitted by right in the Mixed-Use zone and are subject to development and management standards. As of February 2022, the City has not received applications to construct emergency shelters, and none have been constructed. The Housing Element includes Program H-7 to update the Zoning Ordinance for emergency shelters to ensure compliance with Government Code Section 65583(a)(4)) and to allow transitional and supportive housing (including transitional and supportive housing with seven or more residents) as a residential use in all zones allowing residential uses.

EXTREMELY LOW INCOME
Lower-income households generally have a higher incidence of housing challenges and tend to overpay for housing (paying 30 percent or more of their monthly income toward housing costs). Households that earn 30 percent or less than the County’s median income (up to $40,350 for a family of four in 2021, based on HCD Income Limits) are considered “extremely low-income.” Extremely low-income households typically consist of minimum-wage workers, seniors on fixed incomes, disabled persons, and farmworkers. To estimate the number of households in this income category, the City reviewed 2013–2017 Comprehensive Housing Affordability Strategy (CHAS) data for the number of households in the extremely low-income (ELI) range.

As shown in Table H-9, there are a total of 1,010 ELI households in Laguna Hills, comprising 9.7 percent of the total number of households. ELI households represent a smaller percentage of households in Laguna Hills when compared to the County as a whole, where ELI households comprise

14.9 percent of the total number of households. In Laguna Hills, ELI households are more likely to be renters than owners. Based on 2013-2017 CHAS data, ELI households comprise 6 percent of owner-occupied households (470 of 7,325 total owner-occupied units), compared to comprising 18 percent of renter-occupied households (540 of 3,040 total renter-occupied units). ELI households are particularly susceptible to cost burden, or paying at least 30 percent of gross monthly income toward housing-related costs, reducing the ability for households to have money available for other necessities and emergency expenditures. Severe cost

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burden, or paying at least 50 percent of monthly income toward housing costs, further constrains a household’s ability to pay for necessities while maintaining housing. Cost-burdened ELI households are particularly vulnerable to displacement and experiencing homelessness. When looking at rates of cost burden in housing units occupied by ELI households, approximately 83 percent of housing units occupied by ELI households pay at least 30 percent of monthly income toward housing costs. Among ELI households in owner-occupied housing units, 86 percent (405 units) are occupied with households experiencing cost burden. Of these units, 83 percent (335 units) are severely cost-burdened, paying at least 50 percent of monthly income toward housing costs. Again, over 80 percent of ELI households in renter-occupied units overpay for housing costs (435 units), with nearly all of these units experiencing severe cost burden (395 units, or 91 percent of renter-occupied units). The majority of ELI, cost-burdened households in owner-occupied housing units are seniors aged 62 and above (51 percent or 210 units). In renter-occupied units, small families (between 2- 4 persons) comprise 37 percent of ELI housing units experiencing cost burden and large families (5 or more persons) comprise 36 percent. Further, the small families and large families are all experiencing severely cost burden and vulnerable to displacement if housing costs increased.

In the past 10 years, the City undertook the following actions to support extremely low-income households, including seniors and families:
• From 2013-2021, the City retained the non-profit service provider Mercy House to help homeless residents obtain services. Mercy Housing connects persons/households at-risk for homelessness to services, including to social services, CalWorks or CalFresh, Child Guidance Center, and One Stops.
• The City updated the Second Unit provisions to comply with the new State Accessory Dwelling Unit (ADU) regulations. Residential second units can provide additional affordable housing opportunities for lowerincome seniors, single persons, or small households within existing neighborhoods.
• From 2013-2021, City staff continued to monitor and respond to housing complaints and referred residents to various agencies that provide fair housing services in Orange County.
• In December 2012, City Council adopted an amendment to the City’s Municipal Code to allow supportive housing and transitional housing as residential uses in all residential zones.
• The City was awarded Community Development Block Grant (CDBG) funding in 2014 and 2015 ($80,000 each program year). Those funds were spent rehabilitating Aliso Meadows, one of two publicly-assisted housing development in Laguna Hills.

The extremely low-income housing need is projected to be 284 units, which is derived from presuming 50 percent of the very low-income housing need (568 units) from the Regional Housing Need Assessment. The City has

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included Implementation Program H-11 to undertake a rezoning effort to accommodate the 284 units for ELI households. Additionally, the City has included Implementation Programs H-3, H-4, H-13, H-14,H-16 and H-21 to further provide assistance to ELI households, through the following actions:
• Facilitate housing repair and/or rehabilitation programs that assist lowerincome households occupying housing in need of repair (H-3). • Provide Technical Assistance to preserve 51 at-risk units, preparing “Risk Assessment” reports and work with responsible entities to ensure tenants receive education of housing rights and preservation/acquisition status (H-4).
• Develop partnerships with mainstream and/or special-needs affordable housing developers that could result in set-asides in existing and planned lower income housing projects. These partnerships may include incentives (such as expedited processing, fee waivers, and density bonuses) provided by the City to facilitate the set-asides for planned lower income units and actively cooperating with the owners of existing units to secure appropriate federal funding necessary to maintain existing affordability (H-13).
• Continue to provide referral services and information on Housing Choice Vouchers to the City’s residents (H-14).
• Continue to participate in the Orange County Consolidated Plan Programs and in the Orange County Continuum of Care local housing planning process to facilitate obtaining funds for affordable housing and related social services for special-needs populations (H-13). • Develop affirmative marketing targeted at property owners to encourage acceptance of vouchers and/or other rental assistance programs, promoting equal access to government-assisted housing and to promote housing opportunities outside low-resource neighborhoods and neighborhoods along Via Lomas. Additionally, develop affirmative marketing strategies to promote services for persons at-risk of homelessness or experiencing homelessness through partnership with Mercy House, aimed at protecting residents from risk of displacement (H-16).
• Encourage development of affordable housing that meets the needs of diverse households and family structures, including affordable units with three or more bedrooms, during meetings with prospective developers (H-16).
• Investigate the potential adoption of an Inclusionary Housing Ordinance (H-8).
• Facilitate housing on identified sites and ensure that housing is developed that is appropriate for identified income categories on identified sites (H-21)

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Housing Stock Characteristics
A community’s housing stock is defined as the collection of all housing units within the jurisdiction. The characteristics of the housing stock, including growth, type, age and condition, tenure, vacancy rates, costs, and affordability are important in determining the housing needs for the community. This section details the housing stock characteristics of Laguna Hills in an attempt to identify how well the current housing stock meets the needs of current and future residents of the city.

HOUSING GROWTH TRENDS
The California Department of Finance reported that Laguna Hills had a total of 11,298 housing units (Table H-22). From 2010 to 2020, the housing stock increased in Laguna Hills by approximately 252 units. As of January 2020, single-family homes constituted over 73 percent of the city’s housing stock.

Multifamily units constituted 23.3 percent, while mobile homes constituted

3.1 percent of the city’s housing stock (Table H-22). This section relies on a variety of data sources. Table H-22 shows total housing units by type with 2020 data from the California Department of Finance (DOF). The most recent data available on tenure by number of units in the structure (Table H23) and numbers of units built by year (H-25) is from the 2014-2018 American Community Survey (ACS). Variation in the total number of units is due to different sampling methods used by DOF and ACS, and the time frames that the data pertain to. Additionally, the total housing units in tables H-23 and H-25 are different because H-23 shows all occupied housing units, while H-25 shows all housing units.

Table H-22
Housing Stock Composition, 2020
Housing Type
January 2020
Number Percentage
Single-family Detached 6,404 56.7%
Single-family Attached 1,917 17.0%
Multifamily 2–4 Units 573 5.1%
Multifamily 5+ Units 2,052 18.2%
Mobile Homes and Other 352 3.1%
Total Units 11,298 100%
Source: SCAG Housing Element Data, CA DOF E-5 Population and Housing Unit Estimates, 2020

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TENURE
The tenure distribution of a community’s housing stock (owner versus renter) influences several aspects of the local housing market. Residential stability is influenced by tenure, with ownership housing evidencing a much lower turnover rate than rental housing. Housing overpayment, while faced by many households, is far more prevalent among renters.

Tenure status is primarily related to household income, composition, and age of the householder.

Table H-23 details tenure by housing unit type for Laguna Hills and Orange County for 2014-2018. As shown in Table H-23, 71.7 percent of Laguna Hills residents owned the units they occupied, while 28.3 percent rented.

This rate of homeownership is 14.3 percentage points higher than the county-wide rate.

Table H-23
Housing Tenure by Units in Structure, 2014-2018
Laguna Hills Orange County
Estimate Percentage Estimate Percentage
Owner-occupied housing
units: 7,567 71.7% 592,269 57.4%
Single-family
(attached or detached) 6,893 65.3% 527,962 51.1%
2-4 units 233 2.2% 14,643 1.4%
5 or more units 253 2.4% 28,247 2.7%
Mobile home 188 1.8% 21,238 2.1%
Other - 0.0% 179 0.0%
Renter-occupied housing
units: 2,988 28.3% 440,104 42.6%
Single-family
(attached or detached) 1,060 10.0% 127,816 12.4%
2-4 units 601 5.7% 74,197 7.2%
5 or more units 1,327 12.6% 230,643 22.3%
Mobile home - 0.0% 7,144 0.7%
Other - 0.0% 304 0.0%
Total: 10,555 100.0% 1,032,373 100.0%
Source: 2014-2018 American Community Survey
Notes: American Community Survey numbers are estimates; there is a variable margin of error for all numbers.

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VACANCY
A certain number of vacant units are needed to moderate the cost of housing, allow sufficient choice for residents, and provide an incentive for unit upkeep and repair. Specifically, vacancy rates of 1.5 to 2 percent for ownership housing and 5 to 6 percent for rental housing are considered optimal to balance demand and supply for housing. A higher vacancy rate may indicate an excess in the supply of units and a softer market, which results in lower housing prices. A lower vacancy rate may indicate a shortage of housing and high competition for available housing, which generally leads to higher housing prices and diminished affordability.

The 2014-2018 American Community Survey indicated that the overall vacancy rate in Laguna Hills was approximately 3.9 percent (Table H-24).

Specifically, the vacancy rate for ownership housing was 0.6 percent, while the rental vacancy rate was 2.9 percent.

The low ownership housing vacancy rate in Laguna Hills could be attributed to the lack of developable land for additional housing construction.

Table H-24
Vacancy Rates, 2014-2018
Number Percentage
Total Housing Units 10,980 100.0%
Occupied 10,555 96.1%
Vacant 425 3.9%
For rent 89 0.8%
For sale only 0 0.0%
Rented or sold, not occupied 49 0.4%
For seasonal, recreational, or occasional use 24 0.2%
For migrant workers 263 2.4%
Other vacant 0 0.0%
Ownership Vacancy Rate 0.6%
Rental Vacancy Rate 2.9%
Source: 2014-2018 American Community Survey

AGE AND HOUSING STOCK CONDITIONS
The age of housing is commonly used as a measure of when housing may begin to require major repairs. Without proper maintenance, housing units deteriorate over time. In general, housing units over 30 years old are likely to exhibit signs of rehabilitation needs, such as new roofing, foundation work, and new plumbing.

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As depicted in Table H-25, 13.9 percent of the City’s housing stock was constructed after 1990, while 86.1 percent of the housing stock in Laguna Hills was constructed before 1989. Therefore, the majority of the housing stock may be susceptible to deterioration and require maintenance or some type of rehabilitation. However, homeowners in Laguna Hills have a track record of maintaining their properties. As of December 2021, approximately a third of a percent of the total housing stock in Laguna Hills is in need of rehabilitation (37 homes out of 10,980). The City’s annual average for rehabilitation permits is approximately 1,300 permits, demonstrating there is a relatively small percentage of homes in need of rehabilitation. Although a high percentage of the city’s homes are more than 30 years old, and as such may require more regular maintenance and repair, this consistent average confirms that property owners are maintaining their homes. No homes needed replacement. Program H-3 is included to assist low- and moderateincome homeowners and rental property owners, including senior/disabled households, to access rehabilitation loans and grants through the Orange County Housing and Community Services Department, particularly in the Via Lomas neighborhood.

Table H-25
Housing Units by Year Built, 2014-2018
Number Percentage
1939 & Earlier 44 0.4%
1940-1949 48 0.4%
1950-1959 182 1.7%
1960-1969 847 7.7%
1970-1979 4,031 36.7%
1980-1989 4,303 39.2%
1990-1999 1,077 9.8%
2000-2009 303 2.8%
2010-2013 54 0.5%
2014 & Later 91 0.8%
Total 10,980 100.0%
Source: 2014-2018 American Community Survey, SCAG Housing Element Data Between January 2013 and October 2020, 1,343 building permits were issued for building alterations or additions, and 945 building permits for roof work were issued. Additionally, 5 permits were issued for plumbing repair in residential buildings and 2,769 building permits were issued for alterations to residential electrical systems during this time period. The age, scope of repair required, and overall condition of the houses for which the permits were issued varies; however, this indicates that many property owners undertake regular maintenance to maintain their properties.

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The majority of the City’s housing stock is not considered substandard or in need of rehabilitation or replacement. Beginning in 2013 and continuing through Fiscal Year 2014-2015, the City used Community Development Block Grant (CDBG) funds to renovate 21 housing units in the 248-unit Aliso Meadows Condominium Development. The City has identified the Via Lomas neighborhood as an area of the City that might exhibit a small percentage of housing with some deferred maintenance. The City will focus future housing rehabilitation efforts under Program H-3 in this neighborhood.

Housing Costs and Affordability
The cost of housing is directly related to the extent of housing problems in a community. If housing costs are relatively high in comparison to household income, there will be a correspondingly higher prevalence of housing cost burden and overcrowding. This section summarizes the cost and affordability of the housing stock to Laguna Hills residents.

HOMEOWNERSHIP MARKET
Prices for single-family homes and condominiums in Laguna Hills were collected using list prices available on Zillow in February 2021. These are shown by housing type, price range, and median sale price in Table H-26.

According to Zillow, the median sale price for condominiums was $505,950 and the median sale price for single-family homes was $659,000. The overall median sales price for both condominiums and single-family homes was $599,988, which is higher than the affordable purchase price for very lowand extremely low-income households of four.

As is shown in Table H-27, the majority of single-family homes sold between 2017 and 2020 were either three- or four-bedroom homes, and most condominiums sold had either two or three bedrooms. Compared to 2021 listings, homes sold from 2017 to 2020 had a lower mean sale price, indicating that some homes that were previously listed were sold at prices that lower-income households could afford.

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Table H-26
House and Condominium Listings, February 2021
Unit Type/Size List Price Median List Price
Homes (singlefamily detached) $82,000 - $4,990,000 $659,000 2 BR $82,000 - $659,000 $459,500
3 BR $119,900 - $850,000 $559,999
4 BR $169,000 - $1,765,000 $850,000
5+ BR $1,550,000 - $4,990,000 $2,975,000
Condominiums $340,000 - $585,000 $505,950
1 BR $340,000 $340,000
2 BR $360,000 - $559,900 $488,500
3+ BR $539,000 - $585,000 $545,000
Total $82,000 - $4,990,000 $599,988
Source: Zillow, February 2021
Table H-27
Single-Family Detached Homes and Condominium Sales, 2017- 2020
Unit Type/Size Number Sold Mean Sale Price
Homes (single-family detached)
2 BR 108 $347,279
3 BR 541 $367,411
4 BR 822 $511,942
5 BR 258 $633,781
Condominiums
1 BR 172 $184,249
2 BR 409 $236,663
3 BR 407 $276,120
Source: City of Laguna Hills, 2021.

RENTAL MARKET
With renters constituting approximately 28 percent of the City’s households, it is important to understand the rental market in Laguna Hills. Rental price information was collected for five apartment communities in February 2021 by using Zillow to search apartment rental rates, as shown in Table H-28.

The rental range for one-bedroom units ranged from $1,315 to $2,825. Twobedroom units were offered at rents ranging from $1,630 to $3,000.

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Table H-28
Sample Apartment Rental Rates, 2021
Apartment Complex Rental Price Range
Reata Oakbrook Village
1 Br $2,092-$2,230
2 Br $2,397-$2,800
Meridian
1 Br $2,100-$2,825
2 Br $3,000
Sofi Laguna
1 Br $1,861-$2,039
2 Br $2,352-$2,444
Villa Solana
1 Br $1,847-$1,895
2 Br $2,243-$2,387
Prado at Laguna Hills
1 Br $1,315-$1,345
2 Br $1,630-$1,675
Average
1 BR $1,955
2 BR $2,325
Source: Zillow, February 2021
At present, two properties with deed-restricted affordable units are available in the City: Rancho Moulton and Rancho Niguel, which both explicitly accept Housing Choice Vouchers (Section 8). According to a comment letter submitted to the City by a community organization (Welcoming Neighbors Home) in June 2021, neither apartment complex had vacancies. As of that time, Rancho Niguel was not adding names to its waiting list, as the waiting list was estimated to be between 5 and 10 years in length.

The Welcoming Neighbors Home letter also included surveys of apartment buildings in neighboring jurisdictions, including Mission Viejo, Laguna Niguel, Lake Forest, and Aliso Viejo. As in Laguna Hills, deed-restricted affordable properties throughout the region either indicated that they had no vacancies or that they had closed waitlists, including some waitlists of as many as six years. Higher-end rental properties tended to have more vacancies throughout the region, as did several mid-range apartment properties in Laguna Niguel with rental rates similar to those of Reata and Meridian in Laguna Hills (see Table H-29). Apartments in this range are likely to be affordable to moderate-income households and some larger lowincome households. Properties with rental rates that might be affordable to very low-income households did not have many vacancies as of June 2021.

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HOUSING AFFORDABILITY BY HOUSEHOLD INCOME
Housing affordability is dependent on income and housing costs. Using set income guidelines, current housing affordability can be estimated.

According to the HCD income guidelines for 2020, the Area Median Income (AMI) in Orange County was $103,000 (adjusted for household size). Assuming that the potential homebuyer within each income group has sufficient credit, down payment (10 percent), and maintains affordable housing expenses (i.e., spends no more than 30 percent of their gross income on the mortgage, taxes, and insurance), the maximum affordable home price can be determined for each income group. Table H-29 shows the maximum affordable housing and rental prices for the various income groups. Households in the lower end of each category can afford less by comparison than those at the upper end. The market affordability of Laguna Hills’ housing stock for each income group is discussed below.

Extremely Low-Income Households: Extremely low-income households earn 30 percent or less of the AMI. The maximum affordable rental payment is $667 per month for a family of four. The maximum affordable home purchase price for extremely low-income household is $82,000 for a four-person household (Table H-29).

Based on the data presented in Tables H-28 and H-26, extremely lowincome households would be unlikely to secure adequately sized and affordable rental or ownership housing in Laguna Hills.

Very Low-Income Households: Very low-income households are classified as those earning 31-50 percent of the AMI. The maximum affordable rental payment is $1,141 per month for a family of four. The maximum affordable home purchase price for very low-income households is $150,999 for a four-person household (Table H-28).

Based on the rental data presented in Table H-25, very low-income households typically cannot afford rental housing available in Laguna Hills.

According to Zillow, a limited number of condominiums or houses are available at a sales price affordable to very low-income households (Table H-26). However, with the low vacancy rates in the City, finding available homes at affordable prices can be a challenge.

Low-Income Households: Low-income households earn 51 to 80 percent of the County AMI. The maximum home price that a low-income household can afford is $232,300 for a four-person family. An affordable rental rate for low-income households is $1,699 for a four-person household.

Based on sale listings available on Zillow, low-income households can afford some condominiums and houses in Laguna Hills (Table H-26). Many lowincome households can afford rental housing within Laguna Hills (Table H27). However, with the low vacancy rates in the city, finding available homes at affordable prices can be a challenge.

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Moderate-IncomeHouseholds: Moderate-income households earn up to 120 percent of the County AMI. The maximum affordable home price for moderate-income households is $451,010 for a four-person household. A moderate-income household can afford rent of $3,202 per month for a fourperson household.

Based on the maximum affordable home price and listing sale prices available on Zillow presented in Table H-26, moderate-income households could afford a number of condominiums and single-family homes for sale in Laguna Hills. Moderate-income households can afford rental housing within Laguna Hills (Table H-27).

This Housing Element includes a variety of programs designed to improve the adequacy and affordability of housing in Laguna Hills and to assist renters and homeowners who cannot afford housing (see Programs H-3, H6, H-14, H-15, and H-16).

Table H-29 presents a summary of housing affordability and availability in Laguna Hills. As described, the table indicates that extremely low-income households typically cannot afford to rent market-rate rentals in Laguna Hills. Extremely low-income households may have difficulty finding an affordable single-family home that could accommodate their household size at a price they can afford; households at the lower end of this income range would be unlikely to find housing for sale at prices affordable with their income. Very low-income households can afford some rental housing available at a lower rate in Laguna Hills, as well as some condominiums or single-family detached homes but may have difficulty finding a home that is both affordable at their income level and sized appropriately for their household. Low-income and moderate-income households in Laguna Hills can generally afford market-rate rentals. Additionally, there were single-family detached homes and condominiums available for purchase at list prices within these income category ranges according to sale price listings on Zillow. It should be noted that at the extremely low and very low-income levels, housing stock for sale is expected to be much more limited than at higher income levels.

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Table H-29
Summary of Housing Affordability and Availability, 2020 Income Group
Annual
Income
(Family of
Four)
Maximum
Affordable
Rent
(Monthly)
Maximum
Affordable
Sales Price
Extremely Low (0–30% AMI) $38,450 $961 $82,000
Very Low (31–50%) $64,050 $1,601 $150,999
Low (51–80% AMI) $102,450 $2,561 $232,300
Moderate (81–120% AMI) $123,600 $3,090 $451,010
Calculation of affordable home sales prices assumes affordable payment, down payment of 3.5%, highest national average mortgage interest rate from 2019, 30-year mortgage, private mortgage insurance premium, property tax rate of 1.1%, homeowners’ insurance, 1% of sales price for maintenance, customary costs for water, sewer and waste removal.

Income limits based on HCD Maximum Income Limits, 2020
At-Risk Rental Housing
Existing housing that receives governmental assistance is often a significant source of affordable housing in many communities. This section identifies the publicly assisted rental housing in Laguna Hills, evaluates the potential for those units to convert to market rates during a 10-year period (2021- 2029), and analyzes the cost to preserve those units. Laguna Hills has two assisted housing developments that provide 101 affordable housing units (Table H-30).

ASSISTED HOUSING INVENTORY
State housing element law requires cities to prepare an inventory including all assisted multifamily rental units that are eligible to convert to market-rate housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions.

Table H-30 is an inventory of assisted rental housing projects in Laguna Hills. A total of 101 assisted units are provided by the Rancho Moulton and Rancho Niguel developments. Both Rancho Moulton and Rancho Niguel are projects built in the early 1980s with Section 8 construction funds. The projects were approved in one action by the County of Orange in 1980 as affordable to low- and moderate-income residents.

Project approval included first-time homebuyer/renter qualifications, an anti-speculation program, and a method of assuring continued affordability of the units to low- and moderate-income individuals or families.

Furthermore, project approval mandated that 29 percent of total units be made available to individual or families earning 80 percent and below AMI, 30 percent of total units be made available to individuals or families earning

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81 percent to 100 percent of AMI, and 41 percent of total units be made available to individuals or families earning 101 to 120 percent AMI.

Table H-30
Inventory of Assisted Rental Housing, 2021
Project
Name Type Total Units
Assisted
Units
Number of
Bedrooms
Funding
Source
Earliest
Potential
Conversion
Date
At
Risk?
Rancho
Moulton Family 51 51
40 – 2 BR
6 – 3 BR
5 – 4 BR
HUD
Section 8 2022 Yes
Rancho
Niguel Family 51 50
40 – 2 BR
6 – 3 BR
5 – 4 BR
HUD
Section 8
and LIHTC
2059 No
Source: Orange County Housing Authority 2021

AT-RISK HOUSING
During the 2021-2029 planning period, the Rancho Moulton federally assisted housing project in Laguna Hills is at risk of converting to market-rate housing. The Section 8 contract for Rancho Moulton was set to expire in 2012 and was renewed for 10 years. The current contract will expire in 2022, near the beginning of the planning period. This project, totaling 51 affordable units, is assisted with project-based Section 8 rental assistance.

The Section 8 contract for Rancho Niguel was recently extended and is due to expire in 2059. The City continues to pursue the extension of affordability controls with the owners of the Rancho Moulton development.

The City will continue to monitor the status of at-risk units. Should a notice of intent to convert to market rate be filed, the City will work with potential purchasers to preserve the units and ensure that tenants are properly notified of their rights under California law. See Program H-4).

PRESERVATION OPTIONS
Preservation of the at-risk units can be achieved in several ways: (1) facilitate transfer of ownership of these projects or purchase of similar units by nonprofit organizations; (2) purchase of affordability covenant; and (3) provide rental assistance to tenants using funding sources other than Section

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Transfer of Ownership
Long-term affordability of low-income units can be secured by transferring ownership of these projects to nonprofit housing organizations. By doing so, these units would be eligible for a greater range of government assistance.

While no multifamily apartment buildings were for sale in Laguna Hills in June 2021 to provide a cost comparison, a nearby 10-unit apartment building in Irvine was for sale for $3,200,000, or a cost of $320,000 per unit. At a similar rate, the Rancho Moulton project would cost approximately $16,320,000 to purchase and transfer to a nonprofit. Unless some form of mortgage assistance is available to interested nonprofit organizations, rental income alone from the low-income tenants would not likely be adequate to cover the mortgage payment, and rental subsidy would be required.

Purchase of Affordability Covenant
Another option to preserve the affordability of at-risk projects is to provide an incentive package to the owners to maintain the projects as low-income housing. Incentives could include writing down the interest rate on the remaining loan balance, and/or supplementing the Section 8 subsidy amount received to market levels.

Rent Subsidy
Tenant-based rent subsidies could be used to preserve the affordability of housing. Similar to Section 8 vouchers, the City, through a variety of potential funding sources, may provide a voucher to lower-income households. The level of the subsidy required to preserve the at-risk affordable housing is estimated to equal the fair-market rent for a unit minus the housing cost affordable by a very low-income household.

Table H-31A estimates the rent subsidies required to preserve the housing affordability for the residents of the 51 at-risk units. Based on the estimates and assumptions shown in this table, approximately $565,881 in rent subsidies would be required annually.

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Table H-31A
Rent Subsidies Required
Project
Units
Rancho
Moulton
Total
Monthly
Rent Income
Supported
by
Affordable
Housing
Cost of Very
Low Income
Households
Fair
Market
Rent
Monthly
Subsidies
Required
per Unit
Annual
Subsidy
per Unit
Annual
Subsidy,
All Units
2 BR
(954
sq. ft.)
40 $1,441 $2,216 $775 $9,297 $371,880
3 BR
(1,187
sq. ft.)
6 $1,730 $3,098 $1,368 $16,416 $98,496
4 BR
(1,420
sq. ft.)
5 $1,986 $3,578 $1,592 $19,101 $95,505
Total 51 $565,881
Average subsidy per unit is estimated with the following assumptions:

A 2-BR unit is assumed to be occupied by a three-person household, a 3-BR unit by a fiveperson household, and a 4 BR unit by a seven-person household.

Based on 2020 AMI in Orange County, affordable monthly housing cost for a three-person very low-income household is $1,441, $1,730 for a five-person household, and $1,986 for a sevenperson household.

REPLACEMENT COSTS
The cost of developing new housing depends on a variety of factors such as density, size of units, location, related land costs, and type of construction.

COST COMPARISON
The 2020 University of California, Riverside, study, Demystifying the High Cost of Multifamily Housing Construction in Southern California, estimated that the cost to construct a multifamily building in nearby Anaheim was $477,293 per unit. Using this estimate, the cost to build new housing to replace the 51 atrisk units was estimated to be $24,341,943. This cost estimate is higher than the cost associated with transfer of ownership ($16,320,000). This analysis indicated that providing rent subsidies similar to Section 8 vouchers for 20 years ($11,317,620) could cost less than building new housing and transferring ownership.

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ADD discussion of the option for the City to join a Joint Powers Authority to support Work-force Housing, allowing a multi-family property to be acquired by a third-party with publicly supported bond funds. City loses property tax but gains ownership and the ability to sell the property 15 – 30 years later.

QUALIFIED ENTITIES
Owners of government-assisted developments cannot terminate subsidy contracts, prepay a federally assisted mortgage, or discontinue use restrictions without first providing an exclusive "notice of opportunity to submit an offer to purchase" to qualified entities (California Government Code, Section 65863.11). Qualified entities in Orange County, CA are listed in Table H-31B with contact information.

Table H-31B
Qualified Entities in Orange County, CA
Organization Address Phone Number Contact
Person
Neighborhood
Housing Services
of Orange County
Inc.
350 Hillcrest
La Habra, CA 90631 (562) 694-2051 Diane Stewart
Civic Center Barrio
Housing Corp.
1665 E. 4th St, Ste. 210
Santa Ana, CA 92701 (714) 835-0406 Helen Brown
Long Beach
Affordable Housing
Coalition, Inc
5855 Naples Plaza,
Suite 209
Long Beach, CA 90803
(562) 434-3333 H. Kim
Huntley
Housing
Corporation of
America
31423 Coast Highway,
Ste. 7100
Laguna Beach, CA
92677
(323) 726-9672 Carol
Cromar
Nexus for
Affordable Housing
1572 N. Main Street
Orange, CA 92867 (714) 282-2520 Bruce Solari
Orange Housing
Development
Corporation
414 E. Chapman
Avenue
Orange, CA 92866
(714) 288-7600 Todd Cottle
Riverside Chartable
Corporation
3803 E. Casselle Ave
Orange, CA 92869 (714) 628-1650 Kenneth S. Robertson
Hart Community
Homes
2807 E. Lincoln Ave,
Anaheim, CA 92086 (714) 630-1007 William Hart
Jamboree Housing
Corporation
17701 Cowan Ave, #200
Irvine, CA 92614
(949) 214-2395 Roger
Kinoshita
Innovative Housing
Opportunities, Inc.
19772 Macarthur Bv.,
Ste. 110
Irvine, CA 92612
(949) 863-9740 Patricia
Whitaker
Source: HCD, 2021

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POTENTIAL FUNDING SOURCES TO PRESERVE

AFFORDABLE HOUSING
The funding sources that can potentially be used to preserve affordable housing are listed herein.

Home Investment Partnerships Funds
The Federal HOME program was created as a result of the CranstonGonzalez National Affordable Housing Act of 1990. Local jurisdictions may use HOME funds to develop and support affordable rental housing and homeownership affordability through acquisition and to provide assistance to homebuyers. This includes new construction; reconstruction or rehabilitation of non-luxury housing with suitable amenities, including real property acquisition, site improvements, conversion, demolition, and other expenses, such as financing costs; and relocation expenses of any displaced people, families, businesses, or organizations. HOME funds may also be used to provide tenant-based rental assistance. Housing developed with HOME funds must serve low- and very-low-income households.

Community Development Block Grant Program
Through the Federal CDBG program, HUD provides funding for a range of community development activities. The primary objectives of the CDBG program are decent housing, suitable living environments, and expanded economic opportunities for people with low and moderate incomes (“low income” is defined as household income at 80 percent or less of AMI and includes the local and State definition of “very low income”). CDBG funds are awarded for housing activities, including acquisition and rehabilitation, homebuyer assistance, economic development, homelessness services, and public services. CDBG funds are subject to certain restrictions and generally cannot be used for new housing construction.

Section 108 Loan Guarantee Program
The Section 108 Loan Guarantee Program is the loan guarantee provision of the CDBG program. This provision provides communities with a source of financing for various housing and economic development activities. Rules and requirements of the CDBG program apply, and therefore, projects and activities must principally benefit people with low and moderate incomes, aid in the elimination or prevention of blight, and/or meet urgent needs of the community. Activities eligible for these funds include economic development activities eligible under CDBG; acquisition of real property; rehabilitation of publicly owned property; housing rehabilitation eligible under CDBG; construction, reconstruction, or installation of public facilities; related relocation, clearance, or installation of public facilities; payment of interest on the guaranteed loan and issuance costs of public offerings; debt service reserves; and public works and site improvements.

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Housing Choice Voucher (Section 8) Program
The Federal Housing Choice Voucher (Section 8) Program provides rental assistance to lower income households earning up to 80 percent of the Orange County AMI. The Orange County Housing Authority (OCHA) oversees HUD public housing programs for participating jurisdictions, including the City. The OCHA administers the Section 8 Program, providing affordable housing, for low-income households, seniors, and people with disabilities.

Low Income Housing Tax Credits
The CTCAC administers the Low-Income Housing Tax Credit (LIHTC) program to encourage private investment in affordable rental housing for households meeting certain income requirements. Credits are available for new construction projects or existing properties undergoing rehabilitation.

Two types of Federal tax credits are available and are generally referred to as 9 percent and 4 percent credits, respectively. The competition for each type is fierce. Because 9 percent credits are so desirable and in limited supply, the CTCAC awards them through a competitive process twice per year. Projects compete on point scoring, but because most projects receive the maximum point score, the CTCAC’s tiebreaker formula generally decides the outcome.

Tax credits of 4 percent derive from a project’s use of tax-exempt bond authority allocated by the California Debt Limit Allocation Committee (CDLAC). The California Legislature authorized a State LIHTC program to augment the Federal LIHTC program. Because State LIHTCs are also in limited supply, the CTCAC awards them competitively. In total, 85 percent of the State LIHTCs are integrated into 9 percent tax credit projects, while the remainder are reserved for 4 percent tax credit projects. As of 2020, the trend has been that an award of 9 percent tax credits is not feasible for projects that do not include some component of permanent supportive housing. Thus, projects focused on low-income units or a mix of very-lowand low-income units, are now applying for 4 percent tax credits, which represent significantly less funding. Overall, the demand for this significant funding source critical to the development of lower-income housing greatly outweighs the supply of funding.

ESTIMATES OF HOUSING NEEDS
The CHAS (Comprehensive Housing Affordability Strategy) developed by the Census for HUD provides detailed information on housing cost burden by tenure and income level for households with an elderly householder, large families (five or more members), and small families (less than five members). Detailed CHAS data based on the 2013-2017 American Community Survey for households in Laguna Hills are displayed in Table H-32. CHAS classifies households paying more than 30 percent of their income on housing costs as cost burdened and households paying more than 50 percent of their income as severely cost burdened. Trends shown in Table H-32 include:

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• Cost burdens and severe cost burdens were extremely common among large families, including renter and ownership households and especially for extremely low- and very low-income households (earning less than 50 percent of the HAMFI [Housing Urban Development Area Median Family Income]).
• Housing cost remains a significant issue for extremely low- and very lowincome households (earning less than 50 percent of the HAMFI). For these households, paying more than 30 or more than 50 percent of a household’s income was very common. However, for low-income households (earning 51-80 percent of the HAMFI), while paying more than 30 percent of a household’s income on housing remained very common, paying more than 50 percent of income on housing costs was much less common, including for elderly, large households, renters, and owners.

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Table H-32
Housing Cost Burdens by Income, Tenure, and Household Type, Laguna Hills, 2013-2017
Renters Owners
Total
Households
Elderly Small
Families
Large
Families
Total
Renters Elderly Large Families
Total
Owners
Extremely
Low Income
(0–30%
HAMFI)
170 160 155 540 270 50 470 1,010
% with cost
burden
>30%

61.8% 100.0% 100.0% 80.6% 77.8% 100.0% 86.2% 83.2%
% with cost
burden
>50%

38.2% 100.0% 100.0% 73.1% 27.8% 100.0% 71.3% 72.3%
Very Low
Income
(31–50%
HAMFI)
110 150 20 385 270 15 635 1,020
% with cost
burden
>30%

94.5% 100.0% 100.0% 90.6% 83.3% 100.0% 75.4% 81.2%
% with cost
burden
>50%

81.8% 56.7% 100.0% 51.9% 42.6% 100.0% 61.4% 57.8%
Low Income
(51–80%
HAMFI)
160 290 205 735 310 65 885 1,620
% with cost
burden
>30%

81.3% 86.2% 68.3% 82.3% 72.6% 84.6% 25.4% 51.2%
% with cost
burden
>50%

18.8% 17.2% 4.9% 13.6% 37.1% 23.1% 30.5% 22.8%
Total
Households 660 1,295 520 3,040 2,195 609 7,325 10,370
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2013-2017.

Notes: Notes: HAMFI refers to Housing Urban Development Area Median Family Income. Data presented is based on tabulations from sample Census data. The number of households in each category usually deviates slightly from the 100.0% count due to the need to extrapolate sample data out to total households. Interpretations of these data should focus on the proportion of households experiencing cost burdens rather than on precise numbers

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Regional Housing Needs
Assessment Allocation
The Regional Housing Needs Assessment (RHNA) plan is required by state law and is part of the statewide statutory mandate to address future housing issues. The RHNA plan allocates a “fair share” of the region’s projected housing needs to each city and county. These allocations are provided per household income group and are for the upcoming housing element planning period from October 2021 through October 2029.

Table H-33 shows the Southern California Association of Governments (SCAG) RHNA plan allocation for Laguna Hills. As shown in the table, the RHNA plan allocated 1,985 new housing units to Laguna Hills for the planning period. Of the 1,985 new housing units for which the City must plan for during this period, 284 units are to be affordable to extremely lowincome households, 284 units are for very low-income households, 353 units are for low-income households, and 1,064 units are for moderate and abovemoderate income households.

Table H-33
Regional Housing Need Allocation
Income Category 2013-2021 RHNA 2021-2029 RHNA
Extremely Low 0 284
Very Low 1 284
Low 1 353
Moderate 0 354
Above Moderate 0 710
Total 2 1,985
Source: SCAG RHNA, 2014, 2021

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Constraints on Housing
Production
Governmental Constraints
The intentoflocalgovernmentregulationsistoprotectpublichealth and safety, and to ensure a decent quality oflife forthe community. However, local policies and regulations affect the price and availability of housing and, in particular, the provision of affordable housing. Land use controls,site improvementrequirements,fees and exactions, permit processing procedures, and otherfactors can constrain themaintenance, development, and improvement of housing.

State and federal regulations also affect the availability of land for housing and the cost of producing housing. Regulations related to environmental protection, building codes, and other topics have significant, often adverse, impacts on housing cost and availability. Perhaps one of the greatest constraints to the production of housing affordable to lower-income householdsisthe chronic shortage ofstate and federal financial assistance for such housing.

While constraints exist at other levels of government, the City has little or no control over these regulations and no ability to directly mitigate their effects on housing. The City’s efforts, therefore, emphasize policies and regulations that can be mitigated by theCity. The City does not have a short-term rental ordinance, inclusionary requirements, moratoriums on development, or other local ordinances that may constrain the development of housing.

LAND USE CONTROLS
The Laguna Hills General Plan and Zoning Ordinance provide for a wide range ofresidential land use designations/zoning districtsin the City, as illustrated in Table H-34. Information about land use controls is available on the City’s website. Laguna Hills as it is known today was largely developed between 1960 and 1990, before the City’s incorporation in 1991. Under the land use controls imposed by the County of Orange, single-family neighborhoods were the predominant type of development, with very limited amounts of high-density housing built. The cumulative impact of the land use controls in place during the buildout of what is now the City of Laguna Hills is a limited variety of housing types to meet a range of incomes. To facilitate a variety of housing types and address the housing needs of households at all income levels, the City has included several Housing Element Programs including H-6, H-8, H-9, H-10, H-11, H-15 and H-21.

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Table H-34
Residential Land Uses and Zones
General Plan Land
Use Designation
Maximum-Use
Intensity Corresponding Zoning District
Estate Residential 3.5 du/ac Estate Residential (ER)
Low Density 3.0 to 6.5 du/ac Low-Density Residential (LDR) Medium-Low Density 6.5 to 12.5 du/ac Medium/Low-Density Residential (MLDR)
Medium Density 12.5 to 18.0 du/ac Medium-Density Residential (MDR)
High Density 18.0 to 30.0 du/ac High-Density Residential (HDR) Mixed-Use 20.0 du/ac Mixed-Use (MU)
Neighborhood
Mixed-Use1 0.08 FAR residential Neighborhood Mixed-Use (MX-UN) Planned Community2 0.5 to 18.0 du/ac Laguna Hills Planned Community (PC)
Planned Community2
Residential up to 600 units Planned Community -Via Lomas (PCR) Village Commercial2 30 to 50 du/ac3 Village Commercial (VC) Public/ Institutional2
1 DU/2,500 sq. ft. of
floor area of
associated use
Community/Private Institution
Notes: du/ac = dwelling units per acre.

1. General Plan Land Use Designation.

2. These nonresidential General Plan land use designations allow residential development.

3. The allowed development intensity is regulated based upon trip generation limits to ensure that the City’s General Plan Circulation Element level of service standard “D” is not exceeded at any of the intersections within the area.

ZONING DISTRICTS ALLOWING RESIDENTIAL

DEVELOPMENT
The intent and purpose of the zoning districts allowing residential development are as follows:
• Community/Private Institution – The Community/Private Institution district includes City facilities; public and private schools; fire and sheriff stations; hospitals; libraries; post offices; and other public, quasi-public, and institutional uses. Multifamily residential is allowed in association with other uses.
• Estate Residential (ER) – The Estate Residential district includes lowdensity, rural, and equestrian-oriented residential neighborhoods in hillside areas. This district is characterized by large-lot, single-family homes permitting large animal husbandry.

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• Low-Density Residential (LDR) – The Low-Density Residential district includes low-density, single-family detached housing neighborhoods. Typically, this district is characterized by medium- to large-lot single-family homes.
• Medium/Low-Density Residential (MLDR) – The Medium/LowDensity Residential district provides medium low-density attached or detached residential neighborhoods. This district is characterized by small-lot single-family homes, patio homes, duplexes, condominiums, and townhouses.
• Medium-Density Residential (MDR) – The Medium-Density Residential district includes medium-density attached or detached residential neighborhoods. This district is characterized by condominiums, apartments, and townhouses.
• High-Density Residential (HDR) – The High-Density Residential district includes high-density attached or detached residential neighborhoods compatible with adjacent or abutting urban uses. This district is characterized by condominiums, apartments, and residential towers.
• Mixed-Use District (MXU) – The Mixed-Use district includes areas where a variety of goods and services can be obtained within an overall planned environment. This zone permits commercial, recreational, residential, and light industrial uses.
• Neighborhood Mixed-Use District (NMU) – The intent of the Neighborhood Mixed-Use designation is to provide a variety of compact, multifamily housing types close to jobs and services; create a more active, vibrant street life; increase pedestrian activity and reduce vehicular traffic; provide storefront-style shopping streets; and/or encourage walking and social interaction. Within the Neighborhood Mixed-Use designation, appropriate land uses include mid-box anchors; administrative and professional uses; grocery and specialty stores; business support uses; eating and drinking establishments; cinemas; personal services; residential condos, apartments, and townhomes; and mixed-use structures. • Planned Community (PC) – The Planned Community districts provide the authority, regulations, and procedures whereby large land areas can be planned, zoned, developed, and administered as individual integrated communities.
• Planned Community Residential (PCR) – The Planned Community Residential district provides for a wide range of medium/low-density to high-density multifamily housing types, which include apartments, attached townhomes, condominiums, and clustered multifamily arrangements. Appropriate land uses include residential and recreational land uses, such as parks and open space, as set forth in the Land Use Element in the City’s General Plan.

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• Village Commercial (VC) – The Village Commercial district is established to develop an urban core in which a variety of public, regional commercial, recreational, and high-density residential uses work in concert to create an urban village. All development within the Village Commercial district is subject to the Urban Village Specific Plan.

Development standards for residential development established in the City’s Zoning Ordinance are designed to protect and promote the health, safety, and general welfare of residents, as well as implement the General Plan.

These standards also help preserve the character and integrity of existing neighborhoods.

The City’s General Plan, which was updated in 2009, added additional development capacity in the Urban Village Specific Plan (UVSP) area of 117,000 square feet of retail space, and included an Implementation Program requiring that the information be inserted into the UVSP. The General Plan’s fourth-cycle Housing Element update (2008-2014) also required that the UVSP be amended to establish a minimum residential density of 30 units per acre and reduce high open space standards that discourage affordable housing. In 2011, the City amended the UVSP to ensure consistency with the General Plan and to help implement the General Plan goals and policies.

The development standards in Table H-35 influence the ability of property owners to construct and maintain housing. Laguna Hills has very few opportunities for new development, as there is almost no vacant, buildable land remaining in the city. As discussed in the Housing Resources section, the City must rezone land to meet the Regional Housing Needs Assessment (RHNA). Program H-11 commits the City to doing so. As a part of this program, the City will evaluate development standards for the rezone sites, including open space requirements, lot coverage, and heights. The City will ensure these standards are not so restrictive that they constrain residential development. Generally, building heights are restricted to 35 feet in low- and medium-density zones in Laguna Hills.

Overall, the City’s development standards for residential development have not constrained housing development in the City as development can still occur up to the maximum densities allowed by the General Plan and zoning regulations. Lack of vacant land is the primary constraint.

Urban Village Specific Plan
The UVSP, adopted in November 2002, is a 240-acre area bounded by Paseo de Valencia on the north and west, Los Alisos Boulevard on the south, and Interstate 5 on the east.

The UVSP provides for a continuing mixture of land uses, including retail, residential hotel, medical offices, and general offices. The UVSP allows residential development at high-density development only, up to 50 dwelling units per acre. The UVSP area is designated in the City’s General Plan and Zoning Ordinance as Village Commercial (VC). All new development within the Village Commercial district is subject to the UVSP.

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Existing Use. Existing uses include a mix of retail, office, financial, medical, residential, and transportation uses.

Proposed Use. The purpose of the UVSP area is to develop an urban core in which a variety of public, regional commercial, recreational, and highdensity residential uses work in concert to create an urban village. The UVSP area allows residential development at high-density development only, at a maximum of 50 dwelling units per acre. The City amended the UVSP in 2011 to establish a minimum residential development density of 30 dwelling units per acre in the UVSP area. No pre-established limit of residential units previously existed in the UVSP.

The allowed development intensity in the UVSP area is regulated based on trip generation limits to ensure that the City’s General Plan Circulation Element Level of Service Standard D is not exceeded at any of the intersections within the area. A traffic study analyzed “trip budgets” available to accommodate new development within the UVSP area. Prior to redevelopment or new development, project proponents must provide an analysis that indicates that the proposed project does not exceed the remaining trip budgets allowed in the UVSP area.

The City has taken steps toward attracting residential development to the UVSP area. The City has worked with real estate and development interests to develop residential mixed use in the UVSP area. Over the past eight years, the City has held numerous meetings with property owners and residential builders to promote new residential development in the UVSP area.

The City continues to engage residential builders about development opportunities that exist in the UVSP area, and other locations in the community.

Concessions and Incentives. The Regulatory Concessions and Incentives section of this Housing Element (see Constraints on Housing Production section) describes the numerous regulatory concessions and incentives available to developers of affordable housing in Laguna Hills. These concessions and incentives include density bonuses, opportunities to develop housing in certain nonresidential districts of the City, fiscal incentives, and procedural incentives. Refer to the Regulatory Concessions and Incentives section for a detailed discussion.

Potential UVSP Area Housing Development Summary
Density: Minimum 30 dwelling units per acre;
Maximum 50 dwelling units per acre;
high-density residential only
Maximum Units: Maximum determined by trip limits
Potential Units: At least 489
Affordability: Extremely low income through moderate income and above

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Table H-35
Basic Standards for Residential Development
Characteristic of Lot,
Location, Height ER LDR MLDR MDR HDR VC MXU NMU2 C/PI
Minimum Lot Size (sq. ft.) 10,000 7,200 7,200 7,200 7,200 10,000 7,200 10,000 - 8 Minimum Lot Width (sq. ft.) 80 60 60 50 50 100 60 50 - 8 Cul-de-sac 30 30 30 30 30 - - - -
Flag 20 20 20 20 20 - - - -
Minimum Lot Depth (sq. ft.) 100 80 80 100 100 100 100 100 - 8 Maximum Lot Coverage (%) 35 35 60 50 40 707 40 50 -
8 Maximum Density (du/gross
acre) 0–3.5 3.0–6.5 6.5–12.5 12.5–18.0 18.0–30.0 30.0-50.0 20.0 0.08 FAR 1 DU /
2,500 sq. ft.
of floor area
Maximum Building Height (ft.) 35 35 35 35 65 75 359 40 - 8 Minimum Front Setback
20 15
-
20 15
-
20 15
-
20 15
-
20 15
-
-
- 201,2
-
- 20
-
8 From Ultimate Right-of-Way -
8 From Access Connection to
Main Lot - -
8 for Flag Lots - -
8 From Parking Lot, Structure,
or Building 102,5
-
8 Minimum Side Yard Setback -
8 Interior Street 8
10 5
10 5
10 5
15 5
15 102,3
102
5 15 10 -
8 Flag 10 10 10 10 10 - 0 -
8 Minimum Rear Yard Setback
25 25
15 25
25 15
25 25
15 -
8 Standard 25 20 20 -
8 Through
Cul-de-sac/
Gore Shaped Lots
25 15
20 15 202,3 --
206 -
8 Laguna Terrace Tracts - 15 - -
8 Minimum Open Space
(percentage) - - - - 40 104 35 N/A N/A
• Parking lots shall be setback 10 feet from the property line. • The setbacks may be modified in connection with a site development permit or a precise plan of development to promote increased pedestrian activity, provide for unified street frontage, ensure privacy and light for residential uses, provide for public spaces, and promote compatibility with existing development and the goals of the Urban Village Specific Plan. • The minimum interior side setback is 10 feet when abutting residential and zero feet when abutting nonresidential. • The open space requirement is in addition to the minimum landscape coverage requirements (15 percent). • Parking structures shall be setback 20 feet from the property line. • The minimum rear setback is 20 feet when abutting residential and 10 feet when abutting nonresidential. • Unlimited for projects with density over 30 du/ac.
• Residential uses only allowed in concert with other allowed use and subject to those development standards. • The City will review development standards in the MXU, particularly height limits and adjust as needed to remove barriers to producing housing (Programs H-7 and H-11).

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Table H-36 compares the allowable densities and densities of representative projects. Built densities tend to be approximately at the midpoint of each specified range.

Table H-36
Typical Built Densities
Density
(du/
gross acre)
ER LDR MLDR MDR HDR VC MXU NMU UVSP3 C/PI
Maximum 0–

3.5 3.0–

6.5 6.5–

12.5 12.5–

18.0 18.0–

30.0 30.0-

50.0 20.0 0.08 FAR

30.0 –

50.0 1 DU /
2,500 sq. ft.
of floor
area2
Typical Built 1.3 6.1 8.9 9.6 19.7 N/A N/A1 N/A 44.2 N/A Representat
ive
Project(s)
Nellie
Gail
Sunset
Place
Willows,
Bella
Vista
Acacia
Knolls,
Alicia
Plaza
Quail
Creek N/A N/A N/A Reata N/A
Source: City of Laguna Hills, 2021

1. The proposed Mall redevelopment project is likely to have a density of approximately 20 units per acre.

2. DU/2,500 sq. ft. of floor area of associated use.

3. UVSP refers to the Urban Village Specific Plan area which is located in the VC zone.

PARKING STANDARDS
Excessive parking requirements can reduce the number of housing units that can be achieved on a given site. The City’s parking requirements are illustrated in Table H-37. For affordable housing projects qualified for a density bonus, the City has adopted the parking requirements mandated by state density bonus law (refer to Section 9-72.030 of the Laguna Hills Municipal Code). Covered parking is not considered a constraint by local developers.

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Table H-37
Parking Requirements for Residential Uses
Use Parking Requirement
Single-family,
Detached Up to 4 BR
Over 4 BR
2 garage spaces
2 garage spaces, plus 1 covered stall for every 2
BR over 4 BR
Single-family, attached
2 assigned and covered parking stalls within a
garage or parking structure, plus 0.3 stalls
unassigned per dwelling unit
Duplex 2-car garage (for each unit)
Accessory Dwelling Unit
(ADU) 1 parking space1
Mobile Home Park 1 covered and assigned parking stall, plus 2 visitor stalls per mobile home
Senior Citizen Housing
Complex
1 covered and assigned parking stall, plus 2
visitor stalls per dwelling unit, plus 1 stall for the
resident manager
Multifamily Units
1 BR or less
2 BR
3 BR
More than 3 BR
Covered2 Uncovered2 Visitor

1.0 0.5 0.2

1.0 1.0 0.2

2.0 0.5 0.2

2.0 0.53 0.2
Source: City of Laguna Hills Municipal Code, 2021.

1. The required parking space may be permitted in setback areas in locations approved by the Community Development Director or through tandem parking. Program H-8 is included to bring the City’s zoning code into compliance with California Accessory Dwelling Unit (ADU) law.

2. Covered stalls shall be assigned; uncovered stalls shall not be assigned.

3. Plus 0.5 uncovered stall per additional bedroom in excess of three bedrooms.

PROVISION FOR A VARIETY OF HOUSING
The City recognizes the need for a variety of housing types to meet the needs of the City’s diverse population, particularly segments with special housing needs. The following analysis reviews the City’s Zoning Ordinance to evaluate potential constraints to developing housing for persons with Special Needs. Table H-38 summarizes the key zoning provisions for various housing types in the city. As shown, the City’s zoning provisions for specialneeds housing are flexible and offer ample opportunities for such uses.

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SINGLE-FAMILY DWELLINGS
Detached, single-family dwellings are permitted in the estate, low-density, medium/low-density, and high-density residential zoning districts.

Additionally, detached, single-family dwellings are permitted in the planned community zoning district with an approved site development permit.

SINGLE-FAMILY ATTACHED DWELLINGS
Attached single-family dwellings are permitted in the MLDR, MDR, VC, and PCR zoning districts by right; and permitted in the HDR, MXU, and PC zoning districts with an approved site development permit. Attached singlefamily dwellings are permitted in the NMU zone, but only as a part of a mixed-use project.

DUPLEX DWELLINGS
Duplex dwellings are permitted in the MLDR, MDR, HDR, and PCR zoning districts of the city by right. Duplex dwellings require an approved site development permit to be located in PC zoning districts.

MULTIFAMILY DWELLINGS
Multifamily developments are permitted in the MLDR, MDR and HDR zoning districts of the city, subject to a site development permit. The maximum density in these districts ranges from 12.5 dwelling units per acre in the MLDR district to 30.0 dwelling units per acre in the HDR zone.

Multifamily development in the UVSP area is permitted at a minimum density of 30.0 dwelling units per acre to a maximum density of 50.0 dwelling units per acre. Multifamily development is permitted by right in the NMU zoning district, but only as a part of a mixed-use project. Multifamily is only permitted in the Community/Private Institution (C/PI) and MXU zoning districts with an approved conditional use permit. As discussed in the Housing Resources section, the City must rezone land to meet the RHNA. Program H-11 commits the City to doing so. As a part of this program, the City will evaluate permit requirements for multifamily developments for the rezone sites. The City will ensure these requirements are not so restrictive that they constrain residential development.

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Table H-38
Provisions for a Variety of Housing3
Housing Type
Housing Type
ER LDR MLDR MDR HDR OP VC1 FC CC MXU C/PI PC PCR NMU
Accessory Dwelling Unit /
Second Unit Housing P P P P P -
4 --
4 --
4 --
4 --
4 -
4 Boarding House C C C S P S S S
Community Care Facilities
(≤6) P P P P P P P P P
Residential Care Facility for
Elderly (7+) C C C
Drug Abuse & Alcoholism
Recovery Facility C C
Dependent & Neglected
Children Home (7+) C C
Facilities for Persons with
HIV or AIDs C C
Homes for Mentally &
Physically Disabled (7+) C C
Facilities for Ward of
Juvenile Court (7+) C C
Social Rehabilitation Facility
(7+) C C C
Intermediate Care
Facility/Nursing Facility (7+) C C
Duplex P P P S P
Family Day Care Home –
Large C C C C C C C C C C
Family Day Care Home –
Small ≤8) P P P P P P P P P P P
Manufactured Housing S S S S S S P P2
Mobile Homes S S S
Mobile Home Park C C C S
Multifamily Dwellings S S S P C C S P P2
Single-family, Attached P P S P S S P P2
Single-family Detached P P P P P S
Single-Room Occupancy
Housing Facility S C S S C
Transitional Housing (≤6) P P P P P P P P P P
Transitional Housing (7+) C C C C C C C C C C
Supportive Housing (≤6) P P P P P P P P P P
Supportive Housing (7+) C C C C C C C C C C
Emergency Shelter P

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Table H-38 (continued)
Provisions for a Variety of Housing3
P = Permitted; C = Conditional Use; S = Site Development Permit Required

1. All Development in the village commercial district shall be subject to the Urban Village Specific Plan.

2. Allowed only in conjunction with a mixed-use project.

3. See Program H-7. Zoning Ordinance Update.

4. Per Government Code Section 65852.150, the City will allow ADUs in all zones where single-family and multifamily housing are allowed Program H-7.

Accessory Dwelling Unit
A structure attached to or detached from a principal building or incorporated within such buildings located on the same Second Unit Housing lot and customarily incidental to the principal structure, including living areas, such as employee quarters and second-unit housing.

Boarding House
A dwelling unit or part thereof in which, for compensation, lodging and meals are provided; personal and financial services may be offered as well.

Any facility, place, or building that is maintained and operated to provide nonmedical residential care, day treatment, adult day care, or foster family agency services for children and/or adults, including, but not limited to, the physically handicapped, mentally impaired, incompetent persons, and abused or neglected children.

Community Care Facility
Community care facilities for six or fewer individuals include: (1) residential care facilities for the elderly; (2) drug abuse and alcoholism recovery facilities; (3) intermediate care facilities; (4) dependent and neglected children’s homes (foster homes); (5) social rehabilitation facility; (6) congregate living health facility; (7) facilities for people with HIV or AIDS; (8) home for the mentally and physically disabled; and (9) transitional shelter care facilities/emergency shelters.

Duplex
A building containing two single-family dwelling units totally separated from each other by a common wall (the wall may only go to the ceiling) A building on a single lot containing two or more dwelling units, each of which is totally separated from the other by an unpierced wall extending from ground to roof or an unpierced ceiling and floor extending from exterior wall to exterior wall, except for a common stairwell exterior to both dwelling units.

Single-family, Attached
Residential housing units where independent units are created but are attached by common walls such that not more than three units are so joined.

Single-family, Detached
A building containing one dwelling unit that is not attached to any other dwelling by any means and is surrounded by open space and yards.

Family Day Care Home – Large
A home that provides family day care for 7 to 14 children, including children under the age of 10 years who reside at the home.

MANUFACTURED HOUSING (MOBILE HOMES)
Manufactured housing offers an affordable housing option to many low- and moderate-income households. According to the California Department of Finance, there were 352 mobile homes in Laguna Hills in January 2020. The City permits manufactured housing placed on a permanent foundation in all residential districts, subject to a site development permit. The City also conditionally permits mobile home parks in the MDR, HDR, and MXU districts, and permits mobile home parks in the PC zoning district with an approved site development permit. Laguna Hills Estates is the City’s only mobile home park. It is located at 23301 Ridge Route Drive. According to its website, it has 252 spaces. Manufactured housing and mobile homes are treated as different land uses in Municipal Code Section 9-10.050, Uses within Zones. However, they have the same definition in the code. Program 7 commits the City to addressing this.

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BOARDING HOUSE
The City’s Zoning Ordinance defines a boarding house as a residence other than hotel or single-family housekeeping unit, wherein three or more rooms are rented under three or more separate written or oral rental agreements, leases, subleases, or combination thereof, whether or not the owner, agent, or rental manager resides within the residence. Meals and lodging may be provided as part of the compensation paid by the tenants, as well as personal and financial services.

The City permits boarding homes in the VC district. In the Freeway Commercial (FC), Community Commercial (CC), and mixed-use (MXU and NMU) districts, boarding homes are permitted subject to a site development permit. Boarding houses require an approved conditional use permit in the MDR, MLDR, and HDR districts.

ACCESSORY DWELLING UNITS
An ADU is defined as an attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling. An ADU also includes an efficiency unit, as defined in California Health and Safety Code Section 17958.1, and a manufactured home, as defined in California Health and Safety Code Section 18007.

These units may be an alternative source of affordable housing for lowerincome households and seniors. The City will promote and incentivize ADU construction through Program H-8.

California law requires local jurisdictions to adopt ordinances that establish the conditions under which second dwelling units are permitted (California Government Code, Section 65852.2). Program H-7 is included to bring the City’s code into compliance with all recent ADU laws.

ADUs are permitted in the estate residential, low-density, medium/lowdensity, medium-density and high-density residential zones in Laguna Hills pursuant to Section 9-68 of the Zoning Ordinance. Per Government Code Section 65852.150, the City will allow ADUs in all zones where single-family and multifamily housing are allowed and update its Municipal Code to bring it into compliance with all recent ADU laws. (Programs H-7 and H-8). At the time of Housing Element preparation, the City’s Municipal Code, Section 9-68 contains the following standards and criteria for ADUs:
• The ADU is not intended for sale and may be rented.

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• Attached ADUs shall not exceed 50 percent of the existing dwelling unit living area.
• Detached second units shall not exceed one 1,200 sq. ft. of floor area. • ADUs must conform to development standards and all other applicable requirements of the zone in which developed.
• One parking spot per unit is required, except in the following circumstances: the unit is located within one-half mile of public transit; the unit is located within an architecturally and historically significant district; the unit is part of the proposed or existing primary residence or an existing accessory structure; when on-street parking permits are required but are not offered to the occupant of the unit; or, when there is a car-share vehicle located within one block of the unit. • The owner of both units shall occupy either the primary or the ADU. • The owner shall record a use restriction with the Orange County Recorder’s Office so that all present and future property owners understand the obligations and limitations of these standards and criteria (Section 9-68 of the Zoning Ordinance).

The City’s criteria and standards for second unit developments are not considered overly excessive. Between 2016 and 2021, ten ADUs were constructed in Laguna Hills (see Table H-39). According to City staff, all the constructed units are only affordable to above-moderate income households.

Table H-39
Accessory Dwelling Units Constructed 2016-2021
Year Total Units
Affordability level
Very
Low Low Mod Abv. Mod
20211 2 0 0 0 2
2020 2 0 0 0 2
2019 3 0 0 0 3
2018 0 0 0 0 0
2017 1 0 0 0 1
2016 2 0 0 0 2
Source: City of Laguna Hills, 2021
1Through October, 2021

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SINGLE-ROOM OCCUPANCY HOUSING FACILITY
The City’s Zoning Ordinance defines a single-room occupancy housing facility (SRO) as a housing type consisting of one room, often with cooking facilities and with private or shared bathroom facilities. As of August 2021, no SROs, have been constructed in the City.

The City provides opportunities for the location of SROs in nonresidential districts. SROs are permitted in the VC district with a conditional use permit subject only to those restrictions or conditions that may apply to other residential uses of the same type in the same zone. In the OP, FC, MXU, and CC districts, SROs are permitted with a site development permit. Site development permits involving projects that have four or fewer residential units and nonresidential uses of less than 20,000 square feet may be processed by the Community Development Director administratively.

Anything above those thresholds must go to the City Council acting as the Planning Agency. However, whether a project goes to the City Council or is approved by staff (administratively), the findings are the same:

1. That the site design complies with standards of the Development Code;

2. That the site is suitable for the proposed development;

3. That the project is consistent with the general plan and applicable design guidelines;

4. That the site design and structural components are appropriate for the site and function of the proposed uses.

The findings for a site development permit do not require “that the use be compatible with surrounding uses/properties.” Therefore, it is not considered discretionary from a “use” perspective.

Chapter 9-72 of the Zoning Ordinance describes housing development incentives that are available to developers of affordable housing, which could include SROs. Incentives include both fiscal and procedural incentives, such as:
• A maximum of 50-percent reduction in application fees; • Waiver or reduction in building permit fees;
• Financial assistance for acquisition of property, mortgage assistance, sale of housing bonds, rent subsidies, or provision of improvements to serve the site;
• Low-interest loans or subsidies to promote rehabilitation or remodeling of housing units to serve very low- or low-income residents; • Combining all required applications for one review hearing; • Fast-tracking; and
• Providing priority processing and scheduling for review.

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These procedural incentives ensure priority processing of SROs. With the City’s already streamlined review process (1-2 months for administrative and 2-3 months for discretionary projects) and the ability for priority processing, no governmental constraint to developing SROs exists in Laguna Hills.

COMMUNITY CARE FACILITIES
Community Care Facilities for six or fewer individuals include any statelicensed facility, place, or building that is maintained and operated to provide nonmedical residential care, day treatment, adult day care, or foster family agency services for children and/or adults, including, but not limited to, the physically handicapped, mentally impaired, incompetent persons, and abused or neglected children. A community care facility may also include family day care homes and day care centers. Chapter 9-64 of the Municipal Code contains a list of such facility types.

Community care facilities for six or fewer individuals consist of the following, per the City’s Zoning Ordinance:
• Residential care facilities for the elderly;
• Drug abuse and alcoholism recovery facilities;
• Intermediate care facilities;
• Dependent and neglected children’s homes (foster homes); • Social rehabilitation facility;
• Congregate living health facility;
• Facilities for people with HIV or AIDS;
• Homes for the mentally and physically disabled;
• Supportive housing facilities;
• Transitional housing facilities; and
• Facilities for wards of the juvenile court.

These facilities are permitted by right in all residential zones, with the exception of facilities for wards of the juvenile court, which require a conditional use permit.

Table H-40 shows where various community care facilities for seven or more individuals may be permitted or conditionally permitted in Laguna Hills. The table also indicates when a conditional use permit may be required. Supportive and transitional housing are permitted in all residential zones with a conditional use permit. Residential care homes for the elderly with seven or more residents are permitted with a conditional use permit in the VC, MXU, and NMU zones.

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Table H-40
Required Permit for Community Care Facilities
(≥ Seven Individuals)
Land Use Zones Permitted1 Permits
Required1
Large Family Day Care
(14 children maximum)
All Residential
Zones C CUP*
Day Care Center
OP
VC
MXU
C/PI
C
C
C
C
CUP
CUP
CUP
CUP
Residential Care Facility for the
Elderly
VC
MXU
NMU
C
C
C
CUP
CUP
CUP
Drug Abuse and Alcoholism
Recovery Facility
(Community Treatment/
Rehabilitation Facility)
VC
MXU
C
C
CUP
CUP
Dependent and Neglected
Children’s Homes
(Foster Homes)
VC
MXU
C
C
CUP
CUP
Facilities for People with HIV or
AIDS
VC
MXU
C
C
CUP
CUP
Homes for the Mentally and
Physically Disabled
VC
MXU
C
C
CUP
CUP
Facilities for Wards of the Juvenile
Court
VC
MXU
C
C
CUP
CUP
Social Rehabilitation Facility
VC
MXU
C/PI
C
C
C
CUP
CUP
CUP
Intermediate Care Facility/
Nursing Facility
VC
MXU
C
C
CUP
CUP
Supportive Housing All Residential
Zones C CUP
Transitional Housing All Residential
Zones C CUP
Source: City of Laguna Hills, 2021
P = Permitted; C = Conditional Use; CUP = Conditional Use Permit.

Zoning District Key:

OP = Office Professional
VC = Village Commercial
MXU = Mixed-Use
C/PI = Community/Private Institution
NMU = Neighborhood Mixed-Use
1See Program H-7. Zoning Ordinance Update.
*Refer to Chapter 9-92 of the Laguna Hills Zoning Ordinance for special process requirements.

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TRANSITIONAL CARE FACILITIES/ EMERGENCY

SHELTERS
The City’s Zoning Ordinance provides definitions for “supportive housing,” “transitional housing,” and “emergency shelter” that are consistent with the California Health and Safety Code. Supportive housing and transitional housing for six or fewer individuals are treated as residential uses subject only to those restrictions that apply to other residential uses in the same zone.

The following community care facilities are located in the City of Laguna Hills as of September 21, 2021.
• Adult residential facility (developmentally disabled) – 3 facilities • Childcare center (commercial) – 8 facilities
• Large family day care homes – 11 homes
• Small family day care homes – 11 homes
• Infant centers (commercial) – 2 facilities
• Residential care for the elderly – 30 facilities
• Alcoholism or drug abuse recovery, residential (state licensed) – 4 facility • Alcoholism or drug abuse recovery, commercial/office (state licensed) – 8 facilities
• Sober living homes – 1 home
As noted previously, the City does not require permits for community care facilities serving six or fewer individuals. Therefore, additional community care facilities may exist within the City.

In accordance with Senate Bill 2, the Municipal Code was amended to allow emergency shelters “by right” within the MXU district subject to objective development standards without a conditional use permit or other discretionary approval. The MXU district encompasses approximately 260 acres. There are no vacant parcels in the MXU zone; however, a portion of the sites are considered underutilized and could potentially accommodate an emergency shelter. 124 underutilized sites are shown in Table H-48:

Candidate Rezone Sites, with a total of 215 acres. The average size is 1.73 acres. None of the individual parcels are smaller than a half-acre (except a few that comprise a larger site, with the same combined address). The MXU zone contains primarily offices and businesses. As identified in the City’s Land Use Element, the MXU zone contains underutilized parcels with onestory, tilt-up buildings. One-story tilt-up concrete buildings are very easy to convert to other uses. Additionally, larger and better-designed buildings could be built, which would also provide opportunities for emergency shelters. This area is also served by transit and is located within an area providing significant employment resources and commercial services.

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Development Code Section 9-64.040.(D) establishes the following standards for emergency shelters:
• An emergency shelter shall be located at least 500 feet from any residential use, public or private park, public or private K-12 school, church, or other religious institution. An emergency shelter shall be located at least 300 feet from other emergency shelters. The City will amend the Zoning Ordinance (Program H-7) to ensure compliance with California Government Code Section 65583(a)(4)), including siting requirements in relationship to schools and other emergency shelters. • The cumulative total of the number of beds provided by all emergency shelters established within the mixed-use zone shall not exceed 20. (As noted in Section 2, Housing Needs Assessment, according to the 2019 point-in-time survey there were 24 homeless individuals counted in Laguna Hills. The limit of 20 total beds in the MXU zone would be insufficient to shelter these individuals. Through Program H-7, the City will update standards for emergency shelters to allow a greater number of beds.
• The maximum stay at the emergency shelter shall not exceed 180 consecutive days.
• Off-street parking shall be provided in the ratio of one space for every three beds, plus one parking space for each staff member. Through Program H-7, the City will review and revise parking requirements for emergency shelters to ensure that parking standards are sufficient to accommodate all staff, provided standards do not require more parking for emergency shelters than other residential or commercial uses within the MXU district, per California Government Code Section 65583(a)(4). • A client intake and waiting area shall be provided that is at least 200 square feet in size. A client intake and waiting area less than 200 square feet may be provided if it can be demonstrated that the size of the intake and waiting area is sufficient to accommodate the demand for the facility. • Lighting shall be provided in accordance with the standards set in Sections 9-40.170 and 9-44.060(I) of the Development Code. • An operational plan shall be provided prior to the issuance of a certificate of use and occupancy for review and approval by the Community Development Director. At a minimum, the plan shall contain provisions addressing the following:
1 Security and Safety. The plan shall include provision of on-site management, facility rules, and procedures for maintaining a safe environment within and outside the shelter.

Management of Outdoor Areas. The plan shall describe
procedures for admittance and discharge of clients, and describe measures aimed at minimizing the congregation of clients outside the shelter when not accepting clients.

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Staff Training. The plan shall describe the staffing required for the shelter and outline required training programs that provide staff with the knowledge and skills to assist clients in obtaining permanent shelter.

Referral Service. The plan shall include provision of a kiosk providing information on other programs available to clients for obtaining permanent shelter, mental and health counseling, job placement, educational, legal, and other supportive services.

FARM WORKER HOUSING
No land within the City of Laguna Hills is designated for agricultural use.

According to 2019 American Community Survey (ACS) 5-year estimates, there are 66 persons in Laguna Hills employed in agriculture, forestry, fishing and hunting, and mining occupations. These persons may work outside of Laguna Hills. Therefore, Laguna Hills has no specific need for farm worker housing.

Housing for Persons with Disabilities
Land Use Controls: The Lanterman Development Disabilities Service Act (Sections 5115 and 5116) of the California Welfare and Institutions Code declares that mentally and physically disabled persons are entitled to live in normal residential surroundings. The use of property for the care of six or fewer persons with disabilities is a residential use for the purposes of zoning.

A state-authorized or certified family care home, foster home, or group home serving six or fewer persons with disabilities or dependent and neglected children on a 24-hour-a-day basis is considered a residential use that is permitted in all residential zones.

As demonstrated in Table H-38 and previous discussions, the City’s Zoning Ordinance complies with the Lanterman Act and permits small community care facilities (including adult and senior residential facilities, as well as small family homes) in all residential zones. Depending on the specific subtype of facility, facilities for more than six persons are conditionally permitted in most of the VC and MXU districts, as well as the NMU, and C/PI districts in some cases (Table H-38). Potential conditions for approval of a conditional use permit may include hours of operation, security, loading requirements, and management. Conditions would be similar to those for other similar uses in the same zones and would not serve to constrain the development of such facilities.

Definition of Family: The City’s Zoning Ordinance defines “family” as a group of individuals not necessarily related by blood, marriage, adoption, or guardianship living together in a dwelling unit as a single housekeeping unit under a common housekeeping management plan based on an intentionally structured relationship providing organization and stability. To ensure that the City does not unduly restrict or constrain the development of housing for persons with disabilities, per Program H-7, it will update the definition

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of family to “One or more persons, related or unrelated, living together in a dwelling unit, with common access to, and common use of all living, kitchen, and eating areas within the dwelling unit."
Reasonable Accommodation: Under state and federal laws, local governments are required to provide “reasonable accommodation” to persons with disabilities when exercising planning and zoning powers. The City has codified a procedure for reviewing and approving requests for reasonable accommodation for persons with disabilities and special housing needs (Chapter 9-93 of the Zoning Ordinance). The Community Development Director has approval authority for requests for reasonable accommodation, unless the applicant seeks concurrent approval of a project that will be reviewed by the Planning Agency, then the Planning Agency will also act as the authority for the reasonable accommodation application.

The appropriate review authority must make the following findings for approval. The review authority may also impose conditions of approval.

1. The requested accommodation is requested by or on the behalf of one or more individuals with a disability protected under the fair housing laws;

2. The requested accommodation is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy a dwelling;

3. The requested accommodation will not impose an undue financial or administrative burden on the City;

4. The requested accommodation will not result in a fundamental alteration in the nature of a City program or law, including, but not limited to, land use or zoning; and

5. The requested accommodation will not, under the specific facts of the case, result in a direct threat to the health and safety of other individuals or substantial physical damage to the property of others.

Development Fees and Entitlements
Various types of development impact fees and entitlement fees to cover the cost of processing permits to provide necessary services and facilities may add substantially to the cost of housing. These include road assessments, where applicable, park, and permit/development processing fees. The City’s Planning Fee Schedule is available online on the City’s website. The City does not charge library development impact fees. Additionally, an applicant pays water and sewer fees directly to the provider(s). Development impact fees can be a constraint on housing development and compromise market-rate affordability because the additional cost borne by developers contributes to overall increased housing unit cost. However, the fees are necessary to maintain adequate planning services and other public services and facilities in the City.

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The Laguna Hills City Council has adopted three types of development impact fees that it imposes on development projects:
• Public Art Fees provide funding for Public Art throughout the Urban Village, thereby enhancing the cultural and aesthetic environment of the City and to encourage creativity, education, and the appreciation of the arts.
• Traffic Mitigation Fees provide funding for additional or improved traffic signal, operation, and infrastructure improvements for which the need is generated by new development within the Urban Village. • Quimby Act Fees. Quimby Fees are fees authorized by State law which the City collects to build new park and recreation facilities, or rehabilitate existing facilities, when new multi-family residential development occurs.

Chapter 8-06 of the City’s Municipal Code establish the procedures for requiring the dedication of land, the payment of fees in-lieu thereof (or a combination of both) to serve new residential subdivisions that are approved by the City Council in accordance with the requirements of the City’s General Plan. For the Quimby Act Fees, the amount of the fee is based upon the residential density classification of the proposed subdivision and the fair market value of undeveloped residential real property as applicable to the density classification of the proposed subdivision. The formula for the in-lieu Quimby fee is calculated by multiplying the acreage amount of land, using the formula from Municipal Code Section 8-06.050A by the fair market value of undeveloped residential property as applicable to the density classification of the proposed subdivision (𝐴 = 5(𝐷𝑈×𝑃𝑃𝐷)/1000) (𝐼𝑛 − 𝐿𝑖𝑒𝑢 𝐹𝑒𝑒 = 𝐴 × 𝐹𝑀). For the fiscal year ending June 30, 2019, there was no revenues from Quimby Act Fees. The City of Laguna Hills makes development impact fees available for public review through an annual report.

The City’s fee schedule is provided in Table H-41A. A comparison of a selection of the City’s fees is included as Table H-41B. Examples of fee amounts for example single-family and multi-family projects are included in Table H-41C.

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Table H-41A
Planning and Development Fees
Impact Fees and Exactions Fee/Deposit
School (Saddleback Valley Unified
School District Fees)
$3.20/sq. ft. on new residential
development except for areas
already within community facilities
districts
Water Improvement Fees Applicant pays directly to provider Sewer Impact Fees Applicant pays directly to provider
Processing and Permit Procedures
Annexation/Detachment $10,874 deposit
Conditional Use Permit $8,148 deposit
Development Agreement $10,982 deposit
Environmental Impact Report $20,065 deposit
Extension of Time $1,143 deposit
General Plan Amendment $7,547 deposit
Lot Line Adjustment $1,136 deposit
Precise Plan (Mixed-Use District Only) $10,975 deposit
Preliminary Project Review $637 set fee
Site Development Minor (Administrative) $1,095 deposit
Site Development Major
(Planning Agency) $6,488 deposit
Specific Plan $30,472 deposit
Specific Plan Amendment $14,832 deposit
Tentative Tract Map $9,182 deposit
Tentative Parcel Map $9,182 deposit
Variance to Planning Agency $6,293 deposit
Zone Change $10,522 deposit
Source: City of Laguna Hills Community Development Department, 2021.

Separate from the fee schedule in Table H-41A, development activity within the Urban Village Specific Plan area is subject to a Trip Budget and the payment of a Trip Impact Fee, where applicable. Table H-4B provides a comparison of fee types and costs in Laguna Hills and surrounding cities, including Laguna Woods, Laguna Niguel, and Lake Forest. Overall, development fee costs slightly vary between cities; however, Laguna Hills’s fees tends to be higher in cost. The City uses funds accumulated through these fees to maintain the quality and efficiency of our planning and public services. Program H-15 commits the City to incentivizing residential development with affordable housing by reducing, waiving, and/or deferring fees, where feasible.

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Table H-41B
Comparable Fees (Other Cities)
Fee Type Laguna
Hills
Laguna
Woods Laguna Niguel Lake Forest
Conditional
Use Permit $8,148 $4,000 $3,800 $2,400-5,000
Variance $6,293 $3,500 $3,800 $5,000
Zone Change $10,522 $10,000 $3,800 $10,000
General Plan
Amendment $7,547 $10,000 $5,000 $10,000
Tentative Tract
Map $9,182 Varies
• Preliminary Screen
check - $1,425 (Flat)
• Filing: $2,925 + $25/
each lot (Deposit)
• Added lots to Filed
Map: $36/ each lot
(Flat)
• Changed Map: $370
(Flat)
• Appeal to City Council:
$585 (Flat)
• Amendment to
Conditions: $155 (Flat)
• Amend Approved
Map: $1,000 +
$36/each numbered lot
(Deposit)
$7,500
Tentative
Parcel Map $9,182 Varies
• Preliminary Screen
check: $980 (Flat)
• Filing: $2,080
(Deposit)
• Appeal to City Council:
$235 (Flat)
• Amendment to
Conditions: $155 (Flat)
• Amend Approved
Map: $1,000 + $36/
each numbered lot
(Deposit)
-
Sources: City of Laguna Woods (2020); City of Laguna Niguel (2020); City of Laguna Hills (2020); City of Lake Forest (2020).

Note: The fees listed above are generally approximated base fees or deposits; if the cost of providing the service exceeds the base fee or deposit, the balance is collected from the applicant.

Table H-41C displays the City’s current costs of two example residential projects, single-family and multi-family, based on recent developments.

Development fees typically represent approximately five percent of a

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residential project’s total valuation in Southern California. The City’s fees are consistent with this industry trend. As previously mentioned, the City maintains its fees to be able to provide adequate planning and public services within the City’s jurisdiction.

Table H-41C
Permit/Development Impact Fees
Building Permits
Single-Family1 Multi-Family2
Plan Check $9,948.15 $30,530.01
Permit Issuance $92.08 $26.00
Permit/Inspection Fee $8,397.44 $18,820.24
Electrical $3,623.52 $57,141.60
Mechanical $1,787.27 $54,667.70
Plumbing $1,787.27 $54,667.70
CASp $4.00 --
State Title 24 $72.00 $1,571.00
Strong Motion Imp. Program (SMIP) $234.00 $10,883.64
Grading Permits
Grading Plan Check/Permit (est.) -- $256,578
Impact Fees
Park In-lieu Fees (Quimby Act) N/A $2.2M
Public Art In-lieu Fees N/A $196,363.00
School Facilities Assessed by
School District
Assessed by
School District
CARITS $3,035.00 $292,424.52
Moulton Pkwy Road Fees $625.00 $6,491.00
SJHTC Zone A Fee $6,050.00 $256,234.50
Water Assessed by
Water District
Assessed by
Water District
Sewer Assessed by
Water District
Assessed by
Water District

1. The single-family example is based on a new single-family residence that is 5,718 square feet with a 1,432 square foot garage, a 1,296 square foot patio cover, and a 184 square foot deck.

2. The multifamily example is based on 298 unit apartment project using the 2014 fee schedule.

Source: City of Laguna Hills, 2022
On-and Off-Site Improvement
Requirements
The City adopted the County of Orange subdivision ordinance and manual as the City’s subdivision ordinance upon incorporation on December 20, 1991.

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Commonly required on-site improvements for residential projects include the following:
• Internal circulation system – public/private roads, drives, curbs, gutters, vehicle (including fire protection and emergency vehicle) turnarounds • Water and wastewater disposal systems
• Utilities systems
• Walls/fencing
• Landscaping
• Recreational facilities for multifamily projects
• Parking facility (covered/uncovered)
Commonly required off-site improvements for residential projects include the following:
• Traffic signalization
• Roadway improvements
• Water and wastewater disposal systems
• Schools (fee program)
Since vacant parcels do not exist, previously developed sites will be redeveloped. These sites typically already have on- and off-site improvements. Therefore, the costs of on-site and off-site improvements do not serve as constraints on development.

The City’s street improvement requirement and/or dedication requirements are determined as part of the process for a tentative subdivision map and/or conditions of approval. Improvement and/or dedication requirements must be consistent with public streets in the area. The requirements are necessary to achieve the health and safety requirements of the City and are not considered a constraint to affordable housing development.

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Building Codes and Enforcement
Building and safety codes are adopted to preserve public health and safety and ensure the construction of safe and decent housing. These codes and standards also have the potential to increase the cost of housing construction or maintenance.

The City of Laguna Hills has adopted the 2019 California Building Code, which establishes construction standards for all residential buildings. The City amends the code as needed to further define requirements based on the unique local conditions. The code is designed to protect the public health, safety, and welfare of Laguna Hills’ residents. Due to climate, topographic, and soil conditions in the area, the City elected to adopt minor amendments to the 2019 California Building Code, primarily related to wildfire risk exposure and mitigation, and are not considered a constraint to development.

Code enforcement in the city is performed on a complaint basis.

Processing and Permit Procedures
The City’s Zoning Ordinance defines requisite discretionary permits and establishes requirements for submission of applications for the discretionary permits. The City’s Community Development Department prepares and maintains information and materials for each permit required by the Zoning Ordinance. These materials include application forms, questionnaires, and other information that addresses content of applications, fee information, and general processing procedures and requirements.

The City’s established processing and permit procedures are designed to expedite project approvals to avoid unnecessary timing constraints on development. For a typical project, Community Development Department staff conduct an initial discussion with applicants/developers and provide information about the subject property’s zoning, permitted uses, development standards, approval authority (administrative or discretionary), and required environmental documentation. During the next step of the process, initial plan review, Planning Staff review the project site plan and determine if the project complies with the Zoning Code, development standards, and design guidelines. Project applicants then formally submit materials to the Community Development Department, where Planning Staff has 30 days to determine the completeness of the application. Once the application is deemed complete, it goes through staff review. Once it is approved by either the Community Development Director or City Council, plan check, is initiated. Initial plan check takes approximately three weeks.

Plan check two, if necessary, takes one to two weeks, while subsequent plan checks require approximately one week of processing time.

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If an applicant submits a building permit application the day after entitlement is granted, the typical amount of time between entitlement and pulling building permits is approximately six months. Factors that influence the time period include civil engineering requirements (grading plan check, water quality management plan (WQMP) and hydro-modification requirements. Typically, the building plan check is finished by the time project civil engineering is ready.

The City does not currently have a Senate Bill (SB) 35 streamlined permit process in place. Program H-10 is included to address this. Additionally, objective design standards have not yet been established as part of the City’s design review process, but the City received an Senate Bill (SB) 2 grant to fund the development of these standards. Program H-9 is included to address this.

Those discretionary permits pertaining most closely to provision of housing affordable to low- and moderate-income and special-needs populations are general plan amendments, precise (specific) plans, conditional use permits, site development permits, and variances. The permit, processing time, and approval bodies are described herein. (Note that the Planning Agency refers to the City Council serving in its dual role as the planning commission or hearing body for planning-related matters.)
• GeneralPlanAmendments –Ageneralplanamendmentmay be
proposed to change general plan land use designations. Ageneral plan amendmentmay require a processing time of 9 to 12months or more, depending in part on the environmental determination accompanying the amendment processing. The City Council is the approval body for both major and minor general plan amendments, while the Community Development Director approves technical general plan amendments. • Precise (Specific) Plan –A precise (specific) plan isrequired for developments within the Mixed-Use and Neighborhood Mixed-Use districts whenever more than one variety of land use is proposed for a single property or a limited collection of abutting properties.

Processing time is approximately 6 to 12 months or more, depending in part on the environmental determination. The City Council approves specificplans andamendmentstospecificplans.

Conditional Use Permit – A conditional use permit is used to evaluate usesthat may have amoderate to high potential for adverse impact to adjacent or abutting uses or the surrounding community because of operating characteristics. Processing time is approximately three to four months.

Conditional use permits are approved by the Planning Agency. To approve an application for a CUP for a multifamily development, the following findings must be made:
1 That the proposed use is consistent with the general plan; 2 That the nature, condition and development of adjacent uses, buildings and structures have been considered and the proposed

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conditional use will not adversely effect or be materially detrimental to the adjacent uses, buildings, or structures;
3 That the proposed site is adequate in size and shape to accommodate the use and integrate it with the existing and planned uses in the vicinity;
4 That all required development standards prescribed by this code can be achieved;
5 That the conditions and limitations placed upon the use are necessary to ensure compatibility with adjacent or abutting uses and the preservation of the public peace, safety, and welfare. (Laguna Hills Municipal Code, Section 9-92 Application Process and Submittal Requirements, 2021)
Site Development Permit – A site development permit is used to evaluate site planning and design considerations and is the lowest-level planning permit for development projects. A site development permit is required for most development projects, is issued in absence of any other specified permit or approval, and may be required in addition to other approvals.

Detached single family homes do not require an site development permit, they are permitted by-right through building permit plan check only.

For residential projects, a major site development permit that is approved by the Planning Agency is required as follows:
• Estate Residential district – manufactured housing
• Low-Density Residential district – manufactured housing and multifamily dwellings
• Medium/Low-Density Residential district – manufactured housing and multifamily dwellings
• Medium-Density Residential district – manufactured housing and multifamily dwellings
• High-Density Residential district – manufactured housing, multifamily dwellings, and single-family attached dwellings
Program H-7 is included to commit the City to updating its Municipal Code to allow both manufactured housing and mobile homes in all zones where single-family homes are allowed with the same approval process that is used with single-family homes.

A minorsite development permit takes fourto sixweeksto review. Amajor site development permit takestwo to threemonthsto reviewand requiresthat a noticed public hearing be held prior to a decision on the application by the Planning Agency. The notice must be published/provided at least 10 days prior to the public hearing. Minorsite development permits are approved by the Community Development Director, while major site development permits are approved by the Planning Agency.

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The Community Development Director has the authority to review and approve all site development permits meeting the following criteria:
• Developments of nonresidential uses and or buildings not exceeding 20,000 square feet whether in one or more structures on a single parcel; • Four or fewer residential structures or dwellings in a single project; • Temporary uses not involving use or public facilities or rights-of-way; • Master sign programs for properties containing less than five nonresidential units;
• Change plans, or minor changes to any plan or permit previously approved provided such change does not exceed 10 percent of the gross square footage of the original project; and
• Site development permits for retaining walls that are greater than 30 inches in height.

The Planning Agency has jurisdiction and review authority over all site development permits exceeding the criteria specified above. Additionally, the Community Development Director may forward any project over which he or she has authority or which he or she shall deem of sufficient interest on a broader land use policy scale to the Planning Agency for their consideration. The Community Development Director reviews and makes recommendations regarding all site development permits forwarded to the Planning Agency and ensures all environmental and notice requirements are met.

Prior to issuing a site development permit, the Community Development Director or Planning Agency shall make the following findings:
a. That the site design complies with standards of the development code; b. That the site is suitable for the proposed development; c. That the project is consistent with the general plan and applicable design guidelines;
d. That the site design and structural components are appropriate for the site and function of the proposed uses.
(Laguna Hills Municipal Code, Section 9-92 Application Process and Submittal Requirements, 2021)The findings relate back to whether or not the site is suitable for development and is limited to physical development of the site. Since the site design process relies exclusively on the Development Code for determining whether or not the project complies with the Development Code, it also incorporates Chapter 9-72 of the Development Code, which identifies housing development incentives available to a developer who may want to develop affordable housing. These incentives are consistent with state law.

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During the previous planning period, the City approved 97 percent of the site development permits that were submitted. Further, none of the site development permit applications were referred to the Planning Agency, suggesting that most development projects can receive approval in up to six weeks and avoid the public hearing process. Because the City does not have a Planning Commission or a design review board, it helps keep the process moving.
• Variance – A variance may be granted from any development standard or criteria affecting establishment of a use in a zoning district but may not be granted to approve a use that would otherwise be prohibited by a zoning district. A variance takes approximately three weeks to three months to review. The Planning Agency is the approval body for variances.

Findings to be made in order to grant a variance shall address the following as a minimum.

1. That the strict application of the development code deprives the property owner of privileges enjoyed by other properties in the vicinity and in an identical land use designation because of special circumstances applicable to the subject property or intended use of the property that do not generally apply to other properties in the same zoning district such as size, shape, topography, location or surroundings;

2. That the grant of the variance does not constitute the grant of special privilege not available to other properties under similar circumstance in the same zoning district;

3. That the variance is granted upon hardship and not convenience;

4. That the grant of variance will not be detrimental to the public health, safety, and welfare of the community, nor be injurious to properties, uses, or improvements in the vicinity;
That the variance does not grant a use not permitted by the zoning district.

The City has not received requests to develop housing at densities below those identified or intended for a particular Zoning District, General Plan Area or Specific Plan Area.

DISCRETIONARY PERMIT(S) PROCESSING TIMES
Laguna Hills does not have a separate Planning Commission (the City Council acts as its own Planning Agency) so the processing of all projects is more streamlined than in other municipalities. Permit processing times differ for various discretionary permits in the city. Typically, in Laguna Hills, a project receives a final decision within two to three months of having submitted a complete application. Projects requiring an environmental impact report (EIR) generally take six to nine months.

A general plan amendment may take 12 or more months to process should

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an EIR be required. A precise plan (specific plan) may take between 6 to 12 months to process, depending on the required and appropriate environmental documentation.

The precise plan is required for developments with more than one proposed land use for a single property or for a limited collection of abutting properties. The processing time for a conditional use permit is approximately two to three months, unless detailed environmental documentation is required that would lengthen the processing time. This permit evaluates uses that may adversely impact adjacent or abutting uses or the surrounding community from operating characteristics of the proposed use. A major or discretionary (Planning Agency) site development permit takes two to three months to process in the city. This permit type is required for some residential (and nonresidential) development projects and is issued in absence of another specified permit or approval. A site development permit may be required in addition to other discretionary or ministerial permits. A discretionary variance application takes two to three months to process. The Planning Agency may grant a variance from any development standard or criteria affecting the establishment of a use in a zoning district but may not be granted to approve a use that would otherwise be prohibited by a zoning district.

As indicated previously, the processing time for various land use actions within the city depends on the type of development or action requested and whether environmental documentation is required and the scope of that environmental documentation. Each development project does not necessarily require multiple discretionary actions (i.e., small-scale projects consistent with general plan and zoning designations do not generally require general plan amendments, rezones, or variances).

The City does not have a backlog of development applications and is able to process applications in a timely manner. As already indicated, the city has very little vacant land available for development. According to the City’s Building Division, the single-family residential development applications typically involve redevelopment/demolition of existing single-family homes and construction of typically larger single-family homes.

Processing Times for New Housing
As indicated in the Housing Resources section, underutilized land in Laguna Hills will be rezoned and used to meet the City’s Regional Housing Need Assessment requirements. The underutilized areas include the Urban Village Specific Plan area and North Laguna Hills. Within the UVSP area, highdensity, multiple-family housing or single-family attached housing can be constructed. Both multiple-family and single-family attached projects in the Urban Village Specific Plan area are permitted uses, subject only to a site development permit. A major site development permit is required for five or more residential units. A minor site development permit is required for four or fewer residential structures or dwellings in a single project. Development

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requests for the UVSP area would likely involve more than five units; hence, a major site development permit would be required. Once the application is deemed complete, a major site development permit typically requires two to three months for approval by the Planning Agency; three to four months if a negative declaration is prepared; and six to nine months if an EIR is required. A minor site development permit typically requires one to two months for approval because limited environmental review is required and the Community Development Department Director is the approval authority. See the preceding pages for information on the site development process and findings that are required for approval.

The existing Mixed-Use Zone requires a conditional use permit for multiplefamily housing and a site development permit for single-family attached housing. The processing time is typically the same for a major site development permit and a conditional use permit. See the preceding pages for information on the conditional use permit process and findings that are required for approval.

The City’s processing and permit procedures do not appear to unduly constrain the development of housing. Nevertheless, the City will continue to monitor its development review procedures to ensure a streamlined processing procedure. Section 9-92 of the City’s Zoning Ordinance details the specific application process and submittal requirements for various land use actions in the City.

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Measure M
In November 1990, Orange County voters approved the Revised Traffic Improvement and Growth Management Ordinance (Measure M).

Measure M implemented a half-cent local transportation sales tax to fund transportation improvements. The Measure M sales tax includes an apportionment to local jurisdictions for street maintenance and improvements. The Orange County Transportation Authority (OCTA) is the agency responsible for administering proceeds of the Measure M sales tax. Measure M is not considered to be a constraint on the production of housing.

On November 7, 2006, Orange County voters approved the renewal of Measure M, for an additional 30 years beginning in 2011 until 2041.

Renewed Measure M is expected to raise $11.8 billion to improve Orange County’s transportation system.

Every year, OCTA determines if a local jurisdiction is eligible to receive Measure M turnback funds. Prior to the renewal of Measure M, the City received approximately $500,000 per year in turnback funds. Under the Measure M renewal, the City anticipates receiving an increased allocation of $750,000 per year beginning in 2011. In addition, the Measure M renewal will enable the City to compete for discretionary Measure M funding, for which the City has historically been very successful. To date, the City of Laguna Hills has received approximately $11.4 million from Measure M funds to improve its transportation. Among the several requirements a local jurisdiction must satisfy to receive turnback funds, they must comply with the requirements of a Countywide Growth Management Program. Each local jurisdiction is required to produce a Growth Management Element as part of its participation in the Countywide Growth Management Program.

The Growth Management Element has eight required components. Three of these components relate directly to the Laguna Hills Housing Element: a development phasing program; a development mitigation program; and a program addressing balanced housing options and employment opportunities within the City. The Laguna Hills General Plan Growth Management Element, found within the City’s General Plan Mobility Element, aims to reduce traffic congestion, mitigate traffic impacts of new development by requiring new development to pay its fair share toward local and regional roadway/transportation improvements, and tie timing of new development to availability of facilities needed to support that development.

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The City of Laguna Hills has based its approach to the Measure M requirement for adoption of a Growth Management Element on the Model Growth Management Element developed jointly by the County of Orange and the Orange County Division of the League of California Cities. The Growth Management Element of the Laguna Hills General Plan encompasses all required policy provisions necessary to comply with Measure M. The City’s Growth Management Element contains an implementation plan to ensure that required programs (Development Mitigation Program, Development Phasing Program, Annual Monitoring Program) in the Growth Management Element are applied consistently to the City development review process.

Implementation of the City of Laguna Hills Growth Management Element – Growth Management Program will result in a more equitable balance between housing opportunities and employment opportunities within the City, which will allow residents to live closer to their jobs and thereby reduce commuting distance and times. A complementary commitment of development mitigation, development phasing, and performance monitoring is necessary to achieve a coordinated land use development and transportation infrastructure. The City of Laguna Hills will ensure that the actions described below will be applied to applicable development projects and a citywide assessment of land use development/transportation infrastructure capacity will be conducted in conjunction with fee program implementation and capital improvement program development.

Development Mitigation Program – To compensate the public for any increased burden on public services attributed to new development, jurisdictions have the authority to impose reasonable fees or required related improvements. The County of Orange and the City of Laguna Hills have imposed development fees on development transportation improvements within the City. The City of Laguna Hills Development Mitigation Program requires that development proposals be reviewed so new development may pay its share of costs associated with that development on existing and planned transportation facilities.

Development Phasing Program – The City of Laguna Hills will review traffic levels of service on City arterials, contrast operating levels of service with General Plan performance standards, and program necessary improvements in conjunction with the annual development of its Capital Improvement Program. This information will be shared with participating jurisdictions in applicable Growth Management Area Interjurisdictional Planning Forums.

The City of Laguna Hills will also maintain adopted traffic performance standards by outlining and coordinating necessary transportation improvements, including a 7-Year Capital Improvements Program, and Traffic Improvement/Public Facilities Development Agreements consistent with the Growth Management Element, and its implementing ordinances, plans, and programs. In addition, the City is an active participant in interjurisdictional forums for Orange County jurisdictions that address area6.1.a Packet Pg. 482 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element H-100
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wide transportation improvement projects. Furthermore, the City of Laguna Hills endorses alternative transportation modes and strategies to reduce vehicular trips and has adopted programs to reduce trip generation, including a Transportation Demand Management Ordinance to assist in reducing trips to and from employment.

The goals and implementation programs described here enable the City of Laguna Hills to attain the most equitable balance possible between housing opportunities and employment opportunities within the city. This balance is maintained further by planning and housing opportunities affordable to lowincome and moderate-income families within the Urban Village Specific Plan area of Laguna Hills because this additional housing opportunity is located close to a collection of land uses (existing and planned) that are employment intensive. The urban village context represents land uses within the area designated on the City of Laguna Hills General Plan land use map as Village Commercial that would create pedestrian-oriented mixed-use retail, office service, and multifamily residential area.

Regulatory Concessions and
Incentives
To mitigate the impacts of government policies, rules, and regulations on the development and improvement of housing, the City offers a number of regulatory concessions and incentives to help offset the costs.

In 2005, the City amended its Zoning Ordinance to define specific housing development incentives, to implement General Plan Housing Element objectives, including incentives for the production of housing for very low to moderate income, and senior citizens in accordance with state density bonus law under Section 65915 of the California Government Code. Chapter 9-72 of the City’s Zoning Ordinance enumerates the housing development incentives approved by the City. The City will amend its Density Bonus ordinance to address recent updates to address recent updates to state law (Program H-7).

The City offers a density bonus and/or concessions or incentives for developments that meet the following:
(1) at least 10 percent of the total units of a housing development are affordable to lower-income households; (2) at least 5 percent of the total units of a housing development are affordable to very low-income households;
(3) senior citizen housing developments; and
(4) at least 10 percent of the total units in a condominium project or in a planned development are affordable to moderate-income households.

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The City also offers a density bonus for condo conversions, where 33 percent of the total units of the proposed condominium project are affordable to low- or moderate-income households, or 15 percent of the total units are affordable to low-income households.

The City also provides opportunities to develop housing in certain nonresidential districts of the City, which includes boarding homes, community care facilities, emergency shelters, single-room occupancy housing facilities, and mobile home parks. Chapter 9-72.030(C) of the Zoning Ordinance details the requirements and location of housing in nonresidential districts throughout the City.

Fiscal incentives available to developers of affordable housing include waiver or reduction in fees, low-interest loans or subsidies, and financial or mortgage assistance for acquisition of property.

Procedural incentives available to developers of affordable housing include consolidation of applications for consideration at one hearing, fast tracking of all housing development projects, and priority processing and scheduling for review of housing projects.

Program H-15 is included to commit the City to promoting and offering incentives to facilitate affordable housing development and/or preservation throughout the City. Program H-6 is included to focus these efforts in the Urban Village Specific Plan (UVSP) area.

Market Constraints
Locally and regionally, there are several constraints that hinder the ability to accommodate affordable housing demand in Laguna Hills. The high cost of land and lack of developable land that is either vacant or underutilized, rising development costs, and neighborhood opposition make it expensive for developers to build affordable housing. These constraints may result in housing that is not affordable to low- and moderate-income households or may render residential construction economically infeasible for developers.

LAND COSTS
The cost of land is another major impediment to production of affordable housing. Land costs are influenced by many variables, including scarcity and developable density, location, unique features, and the availability of public utilities. The cost of land in Laguna Hills reflects its proximity to major employment centers and the rapid appreciation of land cost throughout Southern California in the past decade.

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CONSTRUCTION AND LABOR COSTS
The cost of construction is dependent primarily on the cost of labor and materials. Construction factors such as type of construction, custom versus tract development, materials, site conditions, finishing details, amenities, square footage, and structural configuration can increase the cost of housing.

Table H-42 summarizes the estimated construction costs based on type of development in the City of Laguna Hills.

Future costs are difficult to predict given the cyclical fluctuations in demand and supply that in large part are created by fluctuations in the state and national economies. Such fluctuations do not usually result in favoring development in one geographic area over another and, therefore, are not considered a major constraint to housing production.

According to a construction cost data estimation tool (www.buildingcost.net) provided by the Craftsman Book Company, a wood-framed singlestory four-cornered home in Laguna Hills is estimated to cost approximately $292,365, excluding the cost of buying land. This cost estimate is based on a 2,000-square-foot house of good quality construction including a two-car garage and forced-air heating. Table H-42 summarizes the projected construction costs.

Table H-42
Single-Family Construction Cost Estimates (2020)
Materials Labor Equipment Total
Direct Job Costs (e.g.,
foundation, plumbing,
materials)
$113,175 $120,140 $5,096 $238,411
Indirect Job Costs
(e.g., insurance, plans,
and specifications)
$18,740 $1,836 - $20,576
Contractor Markup $33,378 - - $33,378
Total Cost $165,293 $121,976 $5,096 $292,365
Source: Building-Cost.net, September 2020
According to a study by the University of California at Riverside, the typical per-unit cost to construct a multifamily house within the City of Anaheim was $477,293 in 2020. This is based on a prototype 75-unit building with a floor-area ratio (FAR) of 2.5, 113 parking spaces, and no affordability requirement. This estimate also included land and financing costs. Within the five jurisdictions included in this study, Anaheim’s estimated construction cost was over $100,000 per unit less than the highest estimated cost, that of Los Angeles, which was largely due to significantly higher land costs and approximately $2,000 lower than the next-highest (Riverside), which was partly due to slightly lower direct costs.

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FINANCING
Construction Financing
The financing of a residential project, particularly affordable housing, is quite complex. No firm threshold determines an acceptable “return” on investment or the maximum equity contribution at which an otherwise feasible project becomes infeasible. Upfront cash commitment may not be problematic for some developers as long as the project can generate an acceptable net cash flow to meet the acceptable returns. Although financing costs impact project feasibility, these problems are generally equal across jurisdictions and thus are not a unique constraint to housing production in Laguna Hills.

Mortgage Financing
The availability of financing affects a person’s ability to purchase a home or to perform necessary maintenance and repairs. The affordability of owning a home is greatly influenced by mortgage interest rates. Increases in interest rates decrease the number of persons able to purchase a home. Conversely, decreasing interest rates result in more potential homebuyers introduced to the market. Mortgage interest rates for new home purchases ranged from 3 to 5 percent for a fixed-rate, 30-year loan between 2016 and 2020, with an average rate of approximately 3.11 percent in 2020.

Interest rates are determined by national policies and economic conditions, and there is little that local governments can do to affect these rates. Firsttime homebuyers are the group impacted the most by financing requirements. Lower initial rates are available with graduated payment mortgages, adjustable-rate mortgages, and buy-down mortgages. However, variable interest rate mortgages on affordable homes may increase to the point of interest rates exceeding the cost of living adjustments.

Flexible loan programs, such as those for first-time homebuyers, still offer flexible down payment requirements between 5 and 20 percent. Such programs provide a method to bridge the gap between a required down payment and potential homeowner’s available funds. The Federal Housing Administration (FHA) offers loan programs for first-time home buyers, including low down payments, around 3.5 percent, low closing costs, and easy credit qualifying.

At this time, the greatest impediment to homeownership is creditworthiness.

According to the FHA, lenders consider a person’s debt-to-income ratio, cash available for down payment, and credit history when determining a maximum loan amount. Many financial institutions are willing to significantly decrease down payment requirements and increase loan amounts to persons with good credit ratings. Persons with poor credit ratings will likely be forced to accept a higher interest rate or a loan amount insufficient to purchase a house. Poor credit rating can be especially damaging to lower-income

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residents who have fewer financial resources with which to qualify for a loan.

The FHA is generally more flexible than conventional lenders in its qualifying guidelines and allows many residents to reestablish a good credit history.

Many communities have experienced a pattern where households looking to purchase a home have had more difficulty in obtaining financing in lowerincome neighborhoods. The Community Reinvestment Act was passed in an effort to address this issue. In tandem with the Home Mortgage Disclosure Act (HMDA), lenders must now disclose information on the disposition of home loan applications by the income, gender, and race/ethnicity of the applicants.

The Federal Financial Institutions Council (FFIEC) compiles HMDA data according to the income characteristics of the census tracts where the dwelling units are located, based on the following FFIEC definitions. Income limits are determined based upon the median family income (MFI) for the relevant Metropolitan Statistical Area (MSA). Low- to moderate-income tracts have an MFI below 80 percent of the MFI for the MSA. Middleincome tracts have an MFI from 80 to 120 percent of the MFI for the MSA.

Finally, upper income tracts have an MFI above 120 percent of the MFI for the MSA.

Table H-43 illustrates the disposition of home purchase loans by census tract based on information provided by the FFIEC for loan applications in 2019.

During 2019, 477 applications were filed for home purchase loans in the City of Laguna Hills. Overall, the upper-income census tracts showed the highest loan origination rate (68 percent). Just under two-thirds (65.6 percent, or 313 applications) of home purchase loan applications made in Laguna Hills during 2019 were originated, meaning that the loan was approved by the lender and bought by the applicant. Approximately one-quarter (24.9 percent, or 119 applications) were neither denied nor originated, such as those where the applicants withdrew their application, or the file was closed before a decision was made. Census tract 423.33, which represents the southern end of Laguna Hills, had a notably higher rate of application denials than surrounding tracts, more than three percentage points higher than the next highest rate of denial. This may correspond to higher home prices within this neighborhood in the city as compared to neighboring Census tracts during 2019.

Many borrowers who purchased homes in the mid-2000s, particularly those with subprime loans, found that they owed more on their homes than their homes were worth. The changing mortgage market also affected borrowers without subprime loans in more expensive housing markets in California. In these more expensive markets (such as Laguna Hills), borrowers have to qualify for “jumbo” loans—relatively large loans that are not federally backed. A jumbo mortgage is a loan amount above conventional conforming loan limits set by Fannie Mae (FNMA) and Freddie Mac (FHLMC), federally chartered financial institutions that purchase the bulk of residential

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mortgages in the United States. Individuals who could qualify to purchase high-priced homes with jumbo loans in the past have found it increasingly difficult to find willing lenders. Reliance on jumbo loans appears to have slowed in recent years, possibly as a result. Of the total 477 loan applications submitted in Laguna Hills in 2019, 349 were for conforming loans and 128 were for jumbo loans. According to the real estate listing website Redfin, as of March 2021, the median sale price for a home in Laguna Hills was $625,000. The 2021 conforming loan limit for Orange County was $822,375.

This indicates that higher-priced, non-conforming loans are not necessary to purchase a home at the median sale price.

Table H-43
Disposition of Home Purchase Loans by Census Tract, 2019 Census
Tract3
Total
Applications
Originated1 Approved but not
Accepted Denied Other2
Number
Percentage
of Total in
Tract
Number
Percentage
of Total in
Tract
Number
Percentage
of Total in
Tract
Number
Percentage
of Total in
Tract
423.07 114 80 69.6% 5 4.3% 4 3.5% 25 22.0%
423.27 90 60 65.9% 1 1.1% 8 8.8% 21 23.4%
423.28 42 27 62.8% 2 4.7% 1 2.3% 12 28.7%
423.33 91 53 57.6% 3 3.3% 11 12.0% 24 26.5%
626.25 83 52 61.9% 2 2.4% 7 8.3% 22 26.6%
626.47 51 41 78.8% 0 0.0% 1 1.9% 9 17.7%
City
Total 471 313 65.6% 13 2.7% 32 6.7% 113 23.7%
Source: Home Mortgage Disclosure Act (HMDA) data for 2019, FFIEC.

1. Originated applications are those approved by the lenders and bought by the applicants.

2. “Other” includes applications that were withdrawn by the applicants and those closed by the lenders because of incomplete information.

3. Census Tract numbers changed for the 2020 Census; the above tracts correspond to those used in the 2010 Census.

Environmental Constraints
Laguna Hills is impacted by various environmental hazards that include steep slopes/hillsides, flooding, and earthquakes.

Hillsides: The City has special development regulations that apply to all property within the City having a slope gradient, whether natural or manufactured, of 15 percent or greater.

Flooding: Portions of the City’s Open Space – 2 Drainage Facilities District may be located in the floodplain overlay zone established by the Federal Emergency Management Administration (FEMA) maps. The City does not allow any permanent building or structure development to occur within a floodplain except those that meet FEMA standards and criteria.

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Earthquakes: There are no active or potentially active faults known within the City of Laguna Hills. However, the active Newport-Inglewood Fault Zone is 3 miles southwest of the City.

Development in areas with known hazards must ensure that adequate precaution and mitigation are afforded to protect public health and safety.

No vacant, developable land and no infill development is planned in the city that is in proximity to areas subject to flooding or in areas subject to special hillside development regulations. Potential infill or redevelopment sites within the City are in areas that are generally level. Infill and/or redevelopment activities within Laguna Hills would be subject to seismic activity, as is all of Southern California.

Infrastructure Constraints
Another factor adding to the cost of new home construction is the cost of providing adequate infrastructure, such as streets, curbs, gutters, sidewalks, water and sewer lines, storm drains and street lighting. The cost of these additions or improvements is borne by developers and then, to the extent possible, added to the cost of new housing units, impacting affordability.

However, since Laguna Hills is built out, new housing will be developed by redeveloping sites that have existing access to streets, curbs, gutters, sidewalks, water and sewer lines, and street lighting. As redevelopment or infill development occurs within the city, infrastructure may need to be upgraded to accommodate intensification, which could present a constraint to development.

The availability of dry utilities is not considered a constraint to development in Laguna Hills. Electricity and natural gas, telephone, and cable and internet service are available throughout the City. Electricity is provided by Southern California Edison and San Diego Gas and Electric, depending upon location.

Natural gas is provided by Southern California Gas Company. Telephone, cable, and internet are provided by AT&T and Cox Communications. Several major cell phone service providers are available.

Wastewater services are provided to the City of Laguna Hills by the El Toro Water District (ETWD) and Moulton Nigel Water District (MNWD), under the purview of the South Orange County Wastewater Authority (SOCWA).

MNWD and ETWD also provides water to Laguna Hills, under the purview of the Municipal Water District of Orange County (MWDOC) who is a wholesale importer of water from the Metropolitan Water District of Southern California (MET). According to the 2018 Integrated Regional Water Management (IRWM) Plan by SOCWA, the capacity for water and wastewater for Laguna Hills is influenced by many factors such as population growth, economic conditions, and hydrologic conditions. Per Program H-21, The City will provide the adopted Housing Element to the South Orange County Wastewater Authority (SOCWA). The City will Assist South Coast Water District (SCWD) in adopting written procedures to provide priority service to lower income residential projects.

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The MNWD water demand is estimated to grow by 0.45 percent from 2025 to 2040 while the ETWD water demand is estimated to decrease by 1.2 percent. One of the ways the IRWM plan aims to tackle disruption in water supply is through the implementation of water usage effectiveness (WUE) programs as well as developing local supply sources. The Orange County Model Water Efficient Landscape Ordinance was developed and adopted in 2015. In addition, the ETWD is expanding its existing Water Recycling Plant.

The project is called the Recycled Water System Expansion Project and aims to increase the treatment and delivery of recycled water from 500 acre-feet to up to 1,400 acre-feet per year. In addition, about 100,000 feet or 19 miles of recycled water pipeline is being constructed beneath the roadways in portions of Laguna Woods (the city adjacent to Laguna Hills to the north) and the northwest portion of Laguna Hills. There is sufficient water and wastewater capacity for current and anticipated residential growth in Laguna Hills.

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Fair-Housing Assessment
Assembly Bill (AB) 686 requires that all housing elements due on or after January 1, 2021, contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Furthering Fair Housing (AFFH) Final Rule of July 16, 2015.

Under state law, AFFH means “taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.”
AB 686 requires all jurisdictions in the state to complete three major requirements as part of the housing element update:

1. Include a program that Affirmatively Furthers Fair Housing and promotes housing opportunities throughout the community for protected classes (applies to housing elements beginning January 1, 2019).

2. Conduct an Assessment of Fair Housing, which includes summary of fair housing issues, an analysis of available federal, state, and local data and local knowledge to identify, and identify patterns of segregation or other barriers to fair housing, and prioritization of contributing factors to fair housing issues.

3. Prepare the Housing Element Land Inventory and identification of sites through the lens of Affirmatively Furthering Fair Housing.

In order to comply with AB 686, the City has completed the following outreach and analysis. Some of the information is based on the Orange County Regional Analysis of Impediments (AI) that was completed in 2020.

Outreach
As discussed in the Introduction, multiple workshops, stakeholder consultations, and hearings were conducted in conjunction with the preparation of this Housing Element. A City Council Meeting took place on November 10, 2020. Public workshops were held (1) virtually on June 30, 2021, and (2) in person on August 5, 2021. All events were open to the public, organizations providing community and social services in the city, and affordable housing developers. Spanish translation was available upon request. From January to February 2021, the City met with local stakeholders to learn about the housing conditions, barriers to access affordable housing, and fair housing issues in Laguna Hills. The consultations were conducted one-on-one with stakeholders, which included two building industry experts, two homelessness service providers, and three community-based organizations. Letters from community members and housing advocates were received and considered throughout the Housing Element update process.

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Additionally, outreach completed for the Orange County Regional Analysis of Impediments to Fair Housing was incorporated and considered through the Housing Element update process. The Orange County Regional Analysis of Impediments to Fair Housing was prepared by the Lawyers’ Committee for Civil Rights Under Law (“Lawyers’ Committee”) (a civil rights organization), in consultation with Orange County jurisdictions and with input from a wide range of stakeholders through a community participation process. Outreach was conducted through community meetings, focus groups, and public hearings with tenants, landlords, homeowners, fair housing organizations, civil rights and advocacy organizations, legal services provers, social services providers, housing developers, and industry groups to hear directly about fair housing issues affecting residents of Orange County. Beginning in October, 2019, the Lawyers’ Committee held meetings with individual stakeholders throughout the County. In January and February 2020, evening community meetings were held in Mission Viejo, Westminster/Garden Grove, Santa Ana, and Fullerton. Also in February, the Lawyers’ Committee held a focus group with a wide array of nonprofit organizations and government officials.

Geographically specific community meetings were held across Orange County, including the South, West, Central, and North parts of the County.

Additional outreach was conducted for members of protected classes, including the Latino and Vietnamese communities. All community meetings had translation services available if requested in Spanish and Vietnamese. In addition, all meetings were held in locations accessible to people with mobility issues. The Executive Summary of the AI will be translated into Spanish and Vietnamese. Public hearings and City Council meetings were held throughout the County during the Spring. Due to the prohibition of gatherings due to COVID, hearings and meetings were held remotely. 1) Public Comments
As described previously, comments were received before, during, and after public workshop events, which included fact sheets, maps, and other information directly related to the Assessment of Fair Housing and affirmatively furthering fair housing. Several comments were made with specific relevance to fair housing issues. Residents commented on locations they felt future housing should and should not be built and the types of housing that could potentially be built, and expressed concerns regarding limited resources for new developments, and the desire to preserve Laguna Hills’s suburban characteristics. Several attendees expressed support for housing development, especially affordable housing and mixed-use, where those developments are “responsibly planned” and provide appropriate resources and infrastructure to ensure the continued quality of life that Laguna Hills residents enjoy. Several residents expressed support for mixeduse developments and developments that account for increased transportation and infrastructure demands. Residents expressed a need for housing for low-income residents, and for senior citizens, veterans, and essential workers who are unable to afford housing and commute from outside of the City. Residents expressed a need for housing for residents

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living with disabilities, as well as teachers, healthcare workers, and young adults. Residents expressed support for ADUs and other means of assisting lower- and moderate-income homeowners with housing costs. The City has incorporated comments received through public workshops with relevance to fair housing issues in the development of Programs H-4, H-8, H-9, H15, H-16, and H-17. 2) Stakeholder consultations
Comments were received from several local stakeholders with specific relevance to fair housing issues. A list of stakeholders can be found under “Stakeholder Consultations”. The Welcoming Neighbors Home (WNH) Initiative expressed a need for lower-income housing dispersed more evenly rather than concentrated in a particular area, ensuring that all residents have fair access to shops, schools, transit, jobs, and other resources and amenities.

The Kennedy Commission emphasized the importance of support for affordable and inclusionary housing, mixed-use housing, adaptive reuse, and affordable ADUs. The Commission also comments on City-owned sites and surplus property, and density bonus law. Organizations working with residents who live with disabilities identified a need for more housing supply and assistance for these populations. Stakeholders emphasized the need to promote an equitable approach for housing, inclusive housing policies and programming, and ways to assist families living in affordable housing to obtain homeownership or market-rate housing. The City has incorporated comments received through stakeholder consultations with specific relevance to fair housing issues in the development of Programs H-5, H-6, H-7, H8, H-13, H-16, and H-17. 3) Online Community Outreach Survey
The City’s Planning Division created a survey for residents of Laguna Hills to determine how the Housing Element should plan for the City’s share of the RHNA. The survey was available from June 15, 2021, to August 15, 2021. Several responses to the online community outreach survey had specific relevance to fair housing issues. Residents expressed the importance of considering the needs of senior citizens, people with disabilities, veterans, young people (particularly those who grew up in Laguna Hills and who cannot afford to raise their children near family members) and those earning “working class” salaries. The City has incorporated comments received through the online community outreach survey with specific relevance to fair housing issues in the development of Programs H-6, H-8, H-13, H15, H- 15, and H-17.

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Assessment of Fair Housing Issues
The California Government Code Section 65583 (10)(A)(ii) requires the City of Laguna Hills to analyze areas of racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. According to the California Department of Housing and Community Development (HCD) and the California Tax Credit Committee (TCAC) Opportunity Map (Figure H-1, HCD/TCAC Opportunity Areas), Laguna Hills contains a mix of high-resource, moderateresource, and low-resource areas. The HCD/TCAC Opportunity Map identifies areas in every region of the state whose characteristics have been shown by research to support positive economic, educational, and health outcomes for low-income families—particularly long-term outcomes for children. Specifically, the HCD/TCAC Opportunity Map uses a composite score based on education, economic, and environmental indicators to categorize areas as “high resource,” “medium resource,” and “low resource.” HCD describes its approach to assigning resource areas as follows:

Calculating index scores for non-filtered areas. The TCAC/HCD Opportunity Map calculates regionally derived opportunity index scores for non-filtered tracts and rural block groups using twenty-one indicators described later in [the Methodology for the 2021 TCAC/HCD Opportunity Map document]. These index scores make it possible to sort each nonfiltered tract or rural block group into opportunity categories according to their rank within the region or rural county. To allow TCAC and HCD to incentivize equitable development patterns in each region to the same degree, the TCAC/HCD Opportunity Map allocates the 20 percent of tracts or rural block groups in each region or rural county, respectively, with the highest relative index scores to the “Highest Resource” designation and the next 20 percent to the “High Resource” designation. Each region thus ends up with 40 percent of its total tracts with reliable data as Highest or High Resource (or 40 percent of block groups in rural counties). The remaining non-filtered tracts or rural block groups are then evenly divided into “Low Resource” and “Moderate Resource” categories.

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Packet Pg. 494 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element Pacific Ocean
Lake
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Muirlands Blvd
Culver Dr
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Alicia Pky
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rguerite Pky
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Fel ipe Rd
E Edinger Ave
E Pico
DeValencia
Sand Canyon Ave
S Main St
Yale
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Crown
Valley Pky
Barranca Pky
WYale Loop
Jamboree Rd Edinger Ave
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Al iso Cr eek Rd
University Dr
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fi
c Is land Dr
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n Lante r nSt
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le Rock Dr
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San Joaqui n Hills Rd
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18 Irvine Center Dr
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Ca nyon Rd
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ORANGE
San Juan
Capistrano
San Clemente
Laguna Niguel
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Santa
Margarita
Mission Viejo
Lake Forest
Coto de
Las Caza
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Laguna Beach
Tustin Santa
Ana
Newport Beach Laguna Woods
Laguna Hills
Irvine
Costa
Mesa
Aliso Viejo
Figure H-1
TCAC/HCD Opportunity Areas
Source: HCD, 2020; Esri, 2020.

AFFH MAPPING

CITY OF LAGUNA HILLS

HOUSING ELEMENT
0 2 4
Miles
Laguna Hills City Limit
Resource Category
Highest Resource
High Resource
Moderate Resource (Rapidly
Changing)
Moderate Resource
Low Resource
High Segregation & Poverty
Missing/Insufficient Data
0 2 4
Miles

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The distribution of resource categorization within Laguna Hills reflects the public outreach feedback from residents and stakeholders that Laguna Hills is a desirable area in south Orange County. The city is predominantly comprised of single-family neighborhoods, primarily built before the City’s incorporation in 1991. Laguna Hills as it is known today was largely developed between 1960 and 1990 to meet the growing demand for singlefamily suburban development in southern California. There is limited highdensity housing in Laguna Hills. As such, residential lot size, proximity to commercial centers, and access to proficient schools and greenspace influence housing affordability in Laguna Hills’ single-family neighborhoods.

Laguna Hills’ high-resource areas are concentrated in the southern half of the city, south of Alicia Parkway, Paseo de Valencia, and La Paz Road. This area is largely residential, made up of single-family homes and expansive green spaces. Laguna Hills’ high-resource area is adjacent to Laguna Niguel and Aliso Viejo, which are predominantly made up of high- and very highresource areas.

Alicia Parkway, Paseo de Valencia, and La Paz Road serve as a boundary between high-resource areas to the south and moderate-resource areas to the north. These areas have access to many of the same resources as the highresource areas, but residents may have longer commutes, lower median home values, fewer educational opportunities, or other factors that lower their indexes for economic, environmental, and educational indicators. Laguna Hills’ moderate resources areas are predominantly single-family residential, typified by smaller lot sizes, as compared with south Laguna Hills, leading to denser neighborhoods. Commercial shopping centers are integrated within the residential subdivisions, such as the Laguna Hills Plaza and the Alicia Center on Alicia Parkway. Similar development patterns exist in the moderate-resource area in north Laguna Hills bounded by Moulton Drive to the west, Lake Forest Drive to the north, and Santa Maria Avenue to the south. The Via Lomas neighborhood, the location of Laguna Hills’ two assisted housing developments (the Rancho Moulton apartments and Rancho Niguel apartments), is categorized as a moderate-resource area. This neighborhood includes Laguna Hills High School and the Laguna Hills Community Center, which likely attribute to neighborhoods moderate resource designation. As will be discussed, the Via Lomas neighborhood has the highest diversity of any neighborhood in the city (Figure H-4), as well as the highest concentration of poverty and linguistic isolation (Figure H-7), limited access to proficient schools, and coincided with high rates of cost burdened renting households (Figure H-12). While designated as moderate resource, the limited access to opportunity within the Via Lomas neighborhood reinforce the spatial segregation of low-income communities of color, particularly residents in the assisted housing developments.

Currently, both Rancho Moulton and Rancho Niguel do not have any available units, according to the 2021 Welcoming Neighbors Home Initiative, which conducted research in April, May, and June of 2021. The waitlist for Rancho Niguel is 5 to 10 years long and is not accepting new potential residents.

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Laguna Hills’ low-resource areas are primarily commercial areas that encompass isolated residential developments, such as the Laguna Hills Estate mobile home park and the multifamily apartments, Prado, south of the former Laguna Hills Mall. Low-resource areas typically have limited access to education and employment opportunities and may have poor environmental quality. Based on the HCD/TCAC methodology, Laguna Hills does not have an area of high racial/ethnic segregation and poverty. In an area of high racial/ethnic segregation and poverty, at least 30 percent of the population is below the federal poverty level, and patterns of racial segregation exist. The low-resource areas do coincide with low median income and high percentage of overpayment by renters. The City also individually analyzed these factors and several other factors, described below, to assess patterns that may further fair housing issues and identify actions to combat these.

The City has conducted the following analysis of available data to assess local access to opportunities and indicators of fair-housing issues, in addition to the designations provided by the TCAC/HCD Opportunity Areas Map. Data for disability, poverty, and familial status was available at the census-tract level, and data for rates of opportunity areas, overpayment, jobs proximity, and diversity were available at the block group level. The City has used the most localized level of data available for the analysis.

1. Patterns of Integration and Segregation
To assess patterns of segregation and integration, the City analyzed six characteristics: diversity, household median income, poverty status, linguistic isolation, familial status, and disability. Household median income, poverty status, familial status, and disability rely on American Community Survey (ACS) 2015-2019 data, and diversity and linguistic isolation rely on CalEnviroScreen 3.0 data from 2018. While there are not any racially or ethnically concentrated areas of poverty (R/ECAPs) in the City of Laguna Hills, there are concentrated areas of poverty that correspond with areas of high racial/ethnic diversity and concentrated areas of affluence that correspond with White majority population (Figure H-2). Racially concentrated areas of affluence (RCAAs), while not formally defined, signify the opposite of R/ECAPs; that is, areas in Laguna Hills that are largely exclusive to non-Hispanic White households who earn the highest incomes.

RCAAs are typically understood to be an area made up of at least 80 percent White households earning a median income exceeding 150 percent of the 2021 HCD median income for a four-person household. Since Orange County’s median income trend is nearly 20 percent higher than the statewide median, this analysis relies on the 150 percent ($160,050) of the median income for a four-person household in Orange County. Laguna Hills racial and ethnic composition has remained largely unchanged since 2010, with the majority of Laguna Hills population in 2018 identifying their race as White (70.0 percent). Areas with a predominant White-majority population are primarily concentrated in south Laguna Hills, coinciding with the City’s highest-resource areas, suggesting Laguna Hill’s White population have greater access to educational and economic mobility than any other race or

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ethnicity in Laguna Hills. In the high resource areas south of La Paz Road, all but one block group earn a median income over $160,050 (the remaining block group has a median income of $152,857). While no block group in Laguna Hills has a White population exceeding 80 percent, the White population comprise at least 75 percent in block groups with a median income greater than $160,050. The percentage of Laguna Hills’ population that identify as Hispanic has remained at approximately 21 percent since 2010. Laguna Hills’ Asian population has grown slightly from 12.6 percent in 2010 to 15 percent in 2018. According to the Orange County Regional AI, Laguna Hills’ Filipino population and Hispanic population are concentrated in central and north Laguna Hills, coinciding with the City’s low- and moderate-resource areas adjacent to Interstate 5. Within Orange County, the existing R/ECAPs are in the City of Santa Ana and coincide with areas of high diversity with a predominantly Hispanic-majority population.

Additionally, these areas received a TCAC low-resource designation, correlating with negative educational and economic outcomes. While Orange County does contain some concentrated areas of poverty that correspond with areas of high diversity, Laguna Hills is situated within a largely affluent, predominantly White part of Orange County. Neighboring cities of Laguna Beach and Laguna Niguel are largely designated as high or highest resource on the HCD/TCAC Opportunity Map with predominantly White-majority populations. For example, as a highly desirable coastal city, Laguna Beach contains block groups earning more than $160,050 with a White population exceeding 80 percent that could be considered RCAAs.

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Laguna Hills City Limit
Rac1a . lly or Ethnica 11 Y
Concentrate d Areas of
Pave rty (R/ECAPs )
Curren t R/ECAP Score
� 0 - Not a R/ECAP
� 1 _ R/ECAP
H
O
U
S ELEMENT l�t CITY OF LA NA HILLS

AFFH MAPPING
Figure H-2
Regional R/ECAPs

6.1.a
Packet Pg. 499 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element H-117
CITY OF LAGUNA HILLS GENERAL PLAN | HOUSING
The 2010 Diversity Index (Figure H-3) largely matches the patterns of opportunity seen in the HCD/TCAC map. The diversity analysis assigns a diversity score based on the probability that two persons within a block group will be of differing races and ethnicities, signaling levels of integration or segregation. In Laguna Hills in 2010, diversity increased moving northward, with areas of least diversity coinciding with Laguna Hills’ highresource areas in the south and areas of high diversity located in low-resource areas, including around the low-resource areas adjacent to Interstate 5. The 2018 Diversity Index (Figure H-4) shows diversity increased citywide since 2010, including in the high-resource areas in south Laguna Hills, suggesting that Laguna Hills neighborhoods are moving towards greater integration.

Consistently since 2010, the Via Lomas neighborhood has the highest diversity in the city (Diversity Index score of greater than 85), which is designated as a moderate-resource area on the HCD/TCAC map. The Via Lomas neighborhood has a predominantly Hispanic population, with 83 percent of the population identifying as Hispanic. This is the only neighborhood with a majority Hispanic population. The former Laguna Hills Mall and neighborhood south of Stockport Park and north of Alicia Parkway each have a Hispanic population greater than 30 percent, but the White population is still the predominant population in the block group (Figure H5). This history of high diversity within the Via Lomas neighborhood compared to the rest of the city suggests high rates of racial and/or ethnic concentration persist and coincides with the location of the city’s two assisted housing developments. Laguna Hills and surrounding cities of Alisa Viejo, Laguna Niguel, and Mission Viejo have higher diversity than the coastal cities of Laguna Beach and Dana Point, which are predominantly low diversity. While Laguna Hills and surrounding areas-maintained neighborhoods of low diversity since 2010, the larger, denser cities in northern Orange County, such as Irvine, Garden Grove, Anaheim, and Buena Park are predominantly highly diverse, with diversity scores of 70 and above. To address factors that result in the high rates of racial and/or ethnic concentration in the Via Lomas neighborhood, the City will encourage the development of publicly assisted units in moderate and high resource areas of the city (Program H-4), promote development (particularly housing affordable to lower-income households) in the USVP area (H-6), and develop affirmative marketing strategy targeted at property owners in moderate and high resources areas to expand Housing Choice Voucher acceptance (H-16). The City will focus its Rehabilitation Program in the Via Lomas neighborhood (Program H-3).

6.1.a
Packet Pg. 500 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element Pacific Ocean
Lake
Me li nda Rd
Muirlands Blvd
Culver Dr
Trabuco Rd
Alicia Pky
Ma
rguerite Pky
Glenwood Dr
Del Obispo St Nigu el Rd
Coast Hwy
P acific ParkDr
Portola P ky
La
Novi a
Ave
LosAli s o s Blvd
Walnut Ave
Santa Margarita Pky
Main St
Fel ipe Rd
E Edinger Ave
E Pico
DeValencia
Sand Canyon Ave
S Main St
Yale Ave
Oso Pky
Crown
Valley Pky
Barranca Pky
WYale Loop
Jamboree Rd
Edinger Ave
La P
a
z
Rd
Al iso Cr eek Rd
University Dr
Bake Pky
Paci
fic Is land Dr
Irvine Blvd
De La Carlota
JeronimoRd
Golde
n Lante r nSt
Toledo Way
E Yale Loop
Turt
le Rock Dr
E DyerRd
Red Hill Ave
Moulton
Pky
San Joaqui n Hills Rd
Capistrano
LakeFore st Dr
18 Irvine Center Dr
Harvard Ave
MichelsonDr
Campus Dr
Del Avion
Alton Pky
Newport
Coast Dr
Ra
n
ch o Viejo Rd
Olympiad
Rd
Jeffrey Rd
Antonio Pky
Santiago
Ca nyon Rd
405
5 74
241
1 55
1 261
73 133
ORANGE
San Juan
Capistrano
San Clemente
Laguna Niguel
Dana
Point
Ladera
Ranch
Rancho
Santa
Margarita
Mission Viejo
Lake Forest
Coto de
Las Caza
Flores
Laguna Beach
Tustin Santa
Ana
Newport Beach Laguna Woods
Laguna Hills
Irvine
Costa
Mesa
Aliso Viejo
Figure H-3
Diversity Index (2010)
Source: Esri, 2010.

AFFH MAPPING

CITY OF LAGUNA HILLS

HOUSING ELEMENT
0 2 4
Miles
Laguna Hills City Limit
2010 Diverstiy Index (Esri)
≤40
≤55
≤70
≤85
>85
0 2 4
Miles

6.1.a
Packet Pg. 501 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element Pacific Ocean
Lake
Me li nda Rd
Muirlands Blvd
Culver Dr
Trabuco Rd
Alicia Pky
Ma
rguerite Pky
Glenwood Dr
Del Obispo St Nigu el Rd
Coast Hwy
P acific ParkDr
Portola P ky
La
Novi a
Ave
LosAli s o s Blvd
Walnut Ave
Santa Margarita Pky
Main St
Fel ipe Rd
E Edinger Ave
E Pico
DeValencia
Sand Canyon Ave
S Main St
Yale Ave
Oso Pky
Crown
Valley Pky
Barranca Pky
WYale Loop
Jamboree Rd
Edinger Ave
La P
a
z
Rd
Al iso Cr eek Rd
University Dr
Bake Pky
Paci
fic Is land Dr
Irvine Blvd
De La Carlota
JeronimoRd
Golde
n Lante r nSt
Toledo Way
E Yale Loop
Turt
le Rock Dr
E DyerRd
Red Hill Ave
Moulton
Pky
San Joaqui n Hills Rd
Capistrano
LakeFore st Dr
18 Irvine Center Dr
Harvard Ave
MichelsonDr
Campus Dr
Del Avion
Alton Pky
Newport
Coast Dr
Ra
n
ch o Viejo Rd
Olympiad
Rd
Jeffrey Rd
Antonio Pky
Santiago
Ca nyon Rd
405
5 74
241
1 55
1 261
73 133
ORANGE
San Juan
Capistrano
San Clemente
Laguna Niguel
Dana
Point
Ladera
Ranch
Rancho
Santa
Margarita
Mission Viejo
Lake Forest
Coto de
Las Caza
Flores
Laguna Beach
Tustin Santa
Ana
Newport Beach Laguna Woods
Laguna Hills
Irvine
Costa
Mesa
Aliso Viejo
Figure H-4
Diversity Index (2018)
Source: Esri, 2018.

AFFH MAPPING

CITY OF LAGUNA HILLS

HOUSING ELEMENT
0 2 4
Miles
Laguna Hills City Limit
2018 Diversity Index (Esri)
≤40
≤55
≤70
≤85
>85
0 2 4
Miles

6.1.a
Packet Pg. 502 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element � PLACEWORKS
"'''" Laguna Hills City Limit
Racial Demograp h. ,c S
2 018 (Block Group)
Percent of To t I a Non-White
Population
� :5 20%
� 21-40%
1111 41-60%
1111 61-80%
1111 > 81%
Source.

H
O
U
S ELEMENT l�t CITY OF LA NA HILLS

AFFH MAPPING
Figure H-5
Racial Demographics {2018}

6.1.a
Packet Pg. 503 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element H-121
CITY OF LAGUNA HILLS GENERAL PLAN | HOUSING
As shown in Figure-H-6, Median Household Income (2015-2019), the areas with the highest median household income (over $145,000) are concentrated in Laguna Hills’ southern, high-resource areas. Areas with the lowest median household income (up to $48,000) are concentrated in low-resource areas, including the housing adjacent to Interstate 5 and the former Laguna Hills Mall, and areas of high diversity. Households in the Via Lomas neighborhood, the neighborhood with the highest diversity in the city, have the lowest median income. While Laguna Hills largely maintains low rates of poverty within the city, poverty has increased in Laguna Hills since 2010. In 2010, Laguna Hills’ individuals experiencing poverty was concentrated in the Via Lomas neighborhood (about 10-20 percent of the neighborhood); by 2018, poverty status grew to include the low resource areas along Interstate 5 in central and north Laguna Hills, where between 10 and 20 percent of residents in these neighborhoods experienced poverty. As one of few neighborhoods with affordable housing, the concentration of low median income in the Via Lomas neighborhood reflects concerns shared by both stakeholders and some residents that the lack of affordable housing limits access to securing housing for lower-income residents (such as seniors, veterans, and essential workers), resulting in creating income-exclusive neighborhoods. Overall, Laguna Hills households and the surrounding areas have very high incomes, especially moving westward toward the coast. This contrasts drastically with north Orange County, particularly the denser, urban cities of Santa Ana, Garden Grove, and Anaheim, where many households earn less than the 2020 HCD State Median Income ($87,100). This may be an indication that Laguna Hills and surrounding cities may be generally unaffordable to those living in poverty, restricting housing opportunities in south and west Orange County. To address potential fair housing issues with respect to areas of homogeneous incomes, the City will implement Program H-15, committing the City to develop partnerships with affordable housing developers to expand affordable housing opportunities, including projects that could offer ownership opportunities to lower income households. The City will also seek out partnerships with Orange County Housing and Community Services Department or other non-profits to create programs offering first-time homebuyer assistance program (Program H-16).

Laguna Hills’ areas of concentrations of poverty and high diversity are also consistent with areas of linguistic isolation, as shown in Figure H-7, Percentage of Population Linguistically Isolated, particularly in the Via Lomas neighborhood and the low-resource areas adjacent to Interstate 5. Up to 80 percent of the population in the Via Lomas neighborhood and the Laguna Hills Estate mobile home park experience linguistic isolation. Wealth inequality can result in areas of homogeneous incomes. Factors affecting wealth inequality include access to education, transportation, social networks, and primary language.

Laguna Woods, Mission Viejo, and San Juan Capistrano similarly have neighborhoods along the Interstate 5 corridor that experience linguistic isolation. Conversely, the coastal cities of Newport Beach and Laguna Beach have low rates of linguistic isolation, likely due to the conformity of languages spoken in these areas (English). The City will address potential fair housing issues related to linguistic barriers through offering resources in

6.1.a
Packet Pg. 504 Attachment: Attachment A - Proposed Resolution including Exhibits 1-4 (2907 : 2021-2029 Housing Element Update and Safety Element H-122
CITY OF LAGUNA HILLS GENERAL PLAN | HOUSING
multiple languages and providing translation services (Program H-1, H-3, H16, and H-17) As shown in Figure H-8, Percentage of Population 18 Years and Over Living Alone, the percentage of Laguna Hills residents over 18 years living alone (versus with a spouse and/or children) increases in the City’s low-resource areas along Interstate 5 and the Via Lomas neighborhood, with single-person households comprising up to 35 percent of the resident population in these areas and exceeding 35 percent in the Laguna Hills Estate mobile home park neighborhood. Single-person households only comprise up to 10 percent of resident population living in the moderate- and high-resource areas in south Laguna Hills. The excessive concentration of single-person households in Laguna Hills indicates an uneven distribution of unit types and reflects concerns shared by Laguna Hills residents during public outreach events that seniors and young adults (including young adults that grew up in Laguna Hills) have limited affordable housing opportunities in Laguna Hills. The low-resource areas adjacent to Interstate 5 and the Via Loma neighborhood provide multifamily residential in addition to single-family homes, which are more likely to provide studio and one-bedroom units appropriately sized for a single-person household. The moderate- and high-resource areas in south Laguna Hills are characterized by single-family residential that may be both inappropriately sized for a single-person household and unaffordable for a single income. Single-person households are more integrated in the cities surrounding Laguna Hills, with single adults typically comprising between 15 and 25 percent of the resident population, suggesting these cities provide a more even distribution of housing types. This includes high-resource coastal cities of Laguna Beach, Laguna Niguel, and Dana Point.