Laguna Niguel City Council
March 21, 2023

CITY OF LAGUNA NIGUEL

CITY COUNCIL AGENDA ITEM
1989
To: Honorable Mayor and Council Members
FROM: Jonathan Orduna, Community Development Director
DATE: March 21, 2023
SUBJECT: Public Hearing to Consider General Plan Amendment GPA 21-01A01 (2021-2029 Revised Housing Element Update) Updating the Adopted Housing Element.

RECOMMENDATION
City staff recommends that the City Council open the public hearing, take public testimony, close the public hearing, and then:

1. Adopt Resolution No. 2023-1422 approving General Plan Amendment GPA 21- 01A01 (2021-2029 Revised Housing Element Update) (Attachment A); and

2. Find that General Plan Amendment GPA 21-01A01 is exempt from California Environmental Quality Act (CEQA) requirements per Section 15061, Review for Exemption of the CEQA Guidelines. Specifically, Section 15061(b)(3) states, in part, that a project is exempt from CEQA if "the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA."

BACKGROUND
State law requires that each City adopt a General Plan to guide land use and development. Among the seven (7) required "elements" of the General Plan is the Housing Element. The Housing Element sets forth goals, policies, and programs that address the future housing needs for all income levels over an eight (8) year planning period which coincides with the Regional Housing Needs Assessment (RHNA) projection period. The RHNA is mandated by State Housing Law as part of the periodic process of updating local housing elements of the General Plan. RHNA quantifies the need for housing within each jurisdiction during specified planning periods.

The City's share of the regional housing need was established at 1,207 units in the Regional Housing Needs Assessment Plan prepared and adopted by the Southern California Association of Governments (SCAG) on March 22, 2021. The allocation

establishes the number of new units needed, by income category, to accommodate expected population growth over the 2021-2029 planning period of the Housing Element.

An important difference between the Housing Element and other elements of the General Plan is the extent of State oversight. The State legislature has declared an adequate supply of housing to be a matter of statewide importance and has delegated authority to HCD to review both draft and adopted Housing Elements and issue assessments regarding their compliance with State law.

A finding of Housing Element compliance by HCD is referred to as "certification" of the Housing Element. HCD certification is important to enhance eligibility for grant funds and reduce uncertainty in the local land use approval process. Additionally, with the adoption of the Housing Element following the augmentation of the Element, as summarized in Attachment A, Exhibit 2, Summary of HCD Comments and City Responses, the City Council makes a finding that it's in substantial compliance with state law.

The following provides a general timeline describing major milestones in preparing, adopting, and augmenting Laguna Niguel's 2021-2029 Housing Element Update:
• January 9, 2020 - In partnership with other south Orange County cities, a community meeting was held to provide residents and other stakeholders an opportunity to discuss fair housing issues and ways to advance fair housing opportunities for all.
• February 25, 2020 - City Council ad-hoc committee meeting where committee members received input from public service providers regarding the needs of lower-income and special-needs households.
• May 5, 2020 - City Council public hearing where the focus of the meeting was to obtain public input on the City's draft Consolidated Plan, the proposed allocation of 2020-2021 CDBG funds, and the Orange County Analysis of Impediments, which are companions to the Housing Element update.
• March 31, 2021 - September 17, 2021 - Housing Element community online survey resulting in 286 responses.
• April 15, 2021 - Planning Commission conducted a virtual study session on the 2021 Housing Element framework and update process.
• May 6, 2021 - In compliance with Senate Bill SB 18 notification requirements (Tribal Consultation), City staff mailed a project description to local tribes identified by the Native American Heritage Commission (NAHC). No requests for consultation or comments were received during the requisite 90-day response period for this notification.
• May 25, 2021 - Planning Commission held a virtual public hearing to review the draft Housing Element and receive public comments from interested community stakeholders.

• June 22, 2021 - Draft Housing Element was transmitted to HCD for a 60-day review.
• August 5, 2021 - City staff met with HCD staff to receive preliminary verbal comments on the draft document.
• August 20, 2021 - The City received its first written letter from HCD finding, in their assessment, that while the draft Housing Element addresses many statutory requirements, revisions will be necessary to comply with State Housing Element Law.
• August 20, 2021 - Staff initiates the work effort to revise the draft Housing Element to address HCD's comments.
• September 24, 2021 - City staff revised the draft Housing Element in response to HCD's comments, posted the draft Housing Element on the City website for public review and comment, and transmitted the revised document to the Planning Commission.
• September 28, 2021 - Planning Commission held a public hearing to review the draft Housing Element, received public comments from interested community stakeholders, and recommended approval of adoption to the City Council. • October 19, 2021 - City Council held a public hearing to review the draft Housing Element, received public comments from interested community stakeholders, and adopted General Plan Amendment GPA 21-01, 2021-2029 Housing Element Update.
• On October 21, 2021 - HCD received the adopted General Plan Amendment GPA 21-01, 2021-2029 Housing Element Update
• January 19, 2022 - The City received a second comment letter from HCD (Attachment B) finding that, in their assessment, while the adopted Housing Element addresses many statutory requirements, revisions will be necessary to comply with State Housing Element Law.
• January 19, 2022 - Staff initiates the work effort to augment the adopted Housing Element to address HCD's latest round of comments.
• August 2022 - February 2023 - To better document the City's public outreach and fair housing efforts, City staff requested and received assistance from the Orange County Council of Governments (OCCOG).
• March 14, 2023 - City staff augmented the adopted 2021-2029 Housing Element Update in response to HCD's latest comments, posted the 2021-2029 Revised Housing Element Update on the City website for public review and comment, and

provided the document to the Planning Commission for consideration.

Staff reports from previous meetings containing background information and other relevant materials are posted on the City's Housing Element web page at:
https://www.cityoflagunaniguel.org/1352/Housing-Element-Update.

Planning Commission
On March 14, 2023, the Planning Commission held a publicly noticed hearing to consider augmenting the adopted 2021-2029 Housing Element. After closing the public hearing, the Planning Commission took unanimous action (4-0) to adopt Resolution No. 23-03 recommending that the City Council adopt GPA21-01A01. (Commissioner Savage- Lebhart was absent.) The Planning Commission Staff Report, adopted Resolution No. 23- 03 and meeting minutes are included as Attachment C.

Public Comments
As of March 2, 2023, when the 2021-2029 Revised Housing Element was posted on the City's website, the City received one comment letter. Section "How Public Comments Were Considered and Incorporated in the Housing Element Update" has been updated in response to the comment letter received on March 14, 2023. Attachment D includes a table with the comments and corresponding responses.

ANALYSIS
2021-2029 Revised Housing Element Update
At the October 19, 2021 meeting, the City Council adopted Resolution No. 2021-1372 and determined that the 2021-2029 Housing Element was prepared in accordance with Government Code Sections 65580 through 65589, and therefore met the statutory requirements. At the time, the City Council found that the adopted 2021-2029 Housing Element Update addressed HCD's comments on the draft version of the Housing Element Update. However, in an effort to receive HCD certification for the reasons described above, the City has prepared additional revisions to the Adopted Housing Element Update. The proposed updates generally include the following augmented sections:
• Special needs populations (persons with disabilities, elderly, large households, female-headed households, farm workers, homeless persons, • Large residential care facilities,
• Residential permit processing,
• Dry utilities,
• Housing programs,
• Evaluation of 2013-2020 Housing Element,
• Approved project background,
• Site inventories,
• Accessory dwelling units,
• Public participation, and

• Fair housing.

These changes necessitate a General Plan Amendment to update the adopted Housing Element. The purpose of this meeting is for the City Council to consider the Planning Commission's March 14, 2023 recommendation and review the selected updates to the adopted 2021-2029 Housing Element, included as Exhibit 1 of Attachment A (new text underlined in red and deleted text strikethrough in red). A summary table of HCD comments and City responses is included in Attachment C.

In addition to the aforementioned updates to the Housing Element of the General Plan, a series of Zoning Code Amendments are also proposed to be completed prior to the end of the calendar year (December 31, 2023) as follows:
• Amend the City's parking requirements for emergency shelters (action item in the existing adopted Housing Element).
• Amend the Zoning Code to add language that allows by-right approval for sites identified for two consecutive planning periods in the sites inventory table for lower- income development (action item in the existing adopted Housing Element). • Review changes to State law regarding transitional and supportive housing annually and process local Code amendments by December of each year if necessary to maintain consistency (HE Action 2.3).
• Ensure the permitting requirements and necessary findings for residential care facilities for seven or more persons are consistent with State law and fair housing requirements (HE Action 2.4).
• Amend the Gateway Specific Plan's "community benefit" definition to prioritize the development of units available to lower-income households (HE Action 3.2).

Additionally, a modification to Action 4.2 is proposed, that if implemented, would encumber Community Development Block Grant (CDBG) funds as described below:
• The City will seek CDBG funding to facilitate the rehabilitation of 15 housing units during the planning period.

Although a commitment to accomplish the above items is not necessary for the Housing Element to substantially comply with state law, such a commitment will increase the likelihood that HCD will certify the City's 2021-2029 Revised Housing Element Update.

CEQA COMPLIANCE
This amendment to the City's General Plan is exempt from California Environmental Quality Act (CEQA) requirements per Section 15061, Review for Exemption of the CEQA Guidelines. Specifically, Section 15061(b)(3) states, in part, that a project is exempt from CEQA if "the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can

be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA." The further augmentation of the 2021-2029 Housing Element would not result in any direct or indirect physical changes to the environment. The Housing Element Update is strictly a policy document and does not provide entitlements to any specific land use projects. The Housing Element Update does not make any changes to the General Plan land use map and would not modify any land use designations, allowed densities, or land use intensities established by the General Plan.

GENERAL PLAN COMPLIANCE
General Plan Amendment GPA 21-01A01 is internally consistent with the goals, objectives, and policies of the Laguna Niguel General Plan which are not being amended, particularly the Land Use Element for the following reasons:
• The General Plan's Land Use Goal (LU-1) seeks to provide a well-balanced mix of land uses to meet the future needs of all residents. The existing Housing Element and the current augmentation advance this goal by first providing a description of the population, household type, household size, household income and overpayment, overcrowding, special needs populations, housing stock, housing age and condition, housing tenure and vacancy, housing costs and affordability, and at-risk rental housing. Secondly, the augmentation further advances the goal by expanding the descriptions of the resources and opportunities available to meet the needs of the residents.
• The General Plan Land Use Goal (LU-8) seeks to revitalize Camino Capistrano / Cabot Road Business Area (also known as the Laguna Niguel Gateway Area). As identified in the "Underutilized Sites" description starting on page B-2 of the proposed Housing Element amendment, the Gateway area has been significantly revitalized due to the multi-family housing developments constructed, under construction, or approved in the area. As described in "Table B-3 Approved Projects," there have been three projects (Gateway Senior, Blu II, and South Forbes) approved and/or issued building permits within the current 2021-2029 planning period, totaling 579 new residential units. Furthermore, "Table B-4 Vacant Sites" identifies one vacant site, and "Table B-5 Underutilized Sites" identifies nine underutilized sites within the Gateway area that if constructed would contribute to the revitalization of the Gateway area as described in Goal 8.

General Plan Amendment GPA 21-01A01 will not adversely affect the public health, safety, and general welfare because the proposed amendment to the City's General Plan Housing Element further supports an adequate supply for housing, including Laguna Niguel's share of the region's new housing need for the 2021-2029 planning period as established by SCAG. The amendment further describes the plans to allow and support residential development opportunities in the City in an environmentally responsible manner. Therefore, the proposed amendment will not create conditions materially detrimental to public health, safety, and general welfare.

ALTERNATIVE CONSIDERED
City Council may elect not to augment the Housing Element; however, doing so would mean certification by HCD would then be impossible. As stated earlier, HCD certification is important to enhance eligibility for grant funds and reduce uncertainty in the local land use approval process.

FISCAL REVIEW
There is no fiscal impact as a result of this recommendation.

LEGAL REVIEW
The City Attorney's Office has reviewed and approved this report and Resolution No. 2023-1422 as to form.

CONCLUSION
Based on the above-mentioned information, City staff is recommending that the City Council adopt Resolution No. 2023-1422 approving General Plan Amendment GPA 21- 01A01 (2021-2029 Revised Housing Element Update); and find that General Plan Amendment GPA 21-01A01 is exempt from CEQA. City staff will then transmit the adopted Housing Element Update for review and final certification by HCD.

Sanana S Retonneau Realis
Tamara S. Letourneau Nicholas Ghirelli
City Manager Interim City Attorney
the Glen
Jonathan Orduna John Morgan
Community Development Director Development Services Manager Erica Roes
Erica Roess
Senior Planner
Attachments:

A. Resolution No. 2023-1422 (GPA 21-01A01), including:

Exhibit 1 - Red-lined Draft Revised 2021-2029 Housing Element Exhibit 2 - Summary of HCD Comments and City Responses
B. HCD Letter of January 19, 2022
C. Planning Commission Staff Report, Resolution No. 23-03, and Draft Meeting Minutes of March 14, 2023 (Excerpted)
D. Comments/Responses to Letter from Debbie Salahi, Volunteer, Welcoming Neighbors Home, dated March 14, 2023
Attachment A
Resolution No. 2023-1422 (GPA 21-01A01)
RESOLUTION NO. 2023-1422

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
APPROVING GENERAL PLAN AMENDMENT GPA 21-01A01
(2021-2029 REVISED HOUSING ELEMENT UPDATE)
WHEREAS, The City of Laguna Niguel is proposing to augment General Plan Amendment GPA 21-01, the adopted 2021-2029 Laguna Niguel General Plan Housing Element Update.

WHEREAS, As provided in Government Code Sections 65352-65352.5, the City mailed a public notice on May 6, 2021 to all California Native American tribes provided by the Native American Heritage Commission and other entities listed and no California Native American tribe requested consultation.

WHEREAS, California Government Code Section 65583 requires that the Housing Element Update contain: (i) an assessment of the City's housing needs and an analysis of the resources and constraints, both governmental and non- governmental, relevant to the meeting of these needs; (i) an inventory of land suitable and available for residential development and an analysis of the development potential of such sites; iiii) a statement of the community's goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing; and (iv) programs that set forth a schedule of actions the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element Update.

WHEREAS, The City's share of the regional housing need was established at 1,207 units in the Regional Housing Needs Assessment Plan prepared and adopted by the Southern California Association of Governments (SCAG) on March 4, 2021. The allocation establishes the number of new units needed, by income category, to accommodate expected population growth and other existing needs over the 2021-2029 planning period of the Housing Element.

WHEREAS, Housing Element Law requires the Housing Element to identify adequate sites to accommodate the City's Regional Housing Needs Allocation (RHNA) for all income categories, and the Housing Element Update identifies sites that can accommodate housing exceeding the City's RHNA
WHEREAS, The Housing Element Update was prepared in accordance with Government Code Sections 65580 through 65589.

WHEREAS, The Planning Commission is an advisory body to the City Council with regard to the approval of General Plan Amendments.

WHEREAS, The Planning Commission held a duly noticed public hearing on May Resolution No. 2023-1422 Page 2
25, 2021 to receive public testimony on the draft 2021-2029 Housing Element Update.

WHEREAS, On June 22, 2021 the City submitted the draft 2021-2029 Housing Element Update to the State Department of Housing and Community Development (HCD) for review and comment, in accordance with State housing law (Government Code Section 65585).

WHEREAS, On August 20, 2021, HCD provided written correspondence indicating that the draft 2021-2029 Housing Element Update addressed many statutory requirements; however, revisions would be necessary to comply with State Housing Element Law (Article

10.6 of the Government Code).

WHEREAS, On September 28, 2021, the Planning Commission held a duly noticed public hearing on the proposed draft 2021-2029 Housing Element Update and adopted Resolution No. 21-07, recommending that the City Council approve General Plan Amendment GPA 21-01, a comprehensive update to the City's General Plan Housing Element for the 2021-2029 planning period, as revised following receipt of HCD's comments. The Planning Commission determined that General Plan Amendment GPA 21- 01 was internally consistent with the goals, objectives, and policies of the Laguna Niguel General Plan.

WHEREAS, On October 19, 2021, the City Council held a duly noticed public hearing on the proposed 2021-2029 Housing Element Update and adopted Resolution No. 2021-1372, approving General Plan Amendment GPA 21-01, a comprehensive update to the City's General Plan Housing Element for the 2021-2029 planning period, as revised following receipt of HCD's comments.

WHEREAS, On October 21, 2021, HCD received the adopted General Plan Amendment GPA 21-01, 2021-2029 Housing Element Update.

WHEREAS, On January 19, 2022, the City received a second comment letter from HCD finding that, in their assessment, while the adopted Housing Element addresses many statutory requirements, revisions will be necessary to comply with State Housing Element Law.

WHEREAS, The adopted General Plan Amendment GPA 21-01, 2021-2029 Housing Element Update was augmented to address CD's comments of January 19, 2022, as described in Exhibit 2 "Summary of HCD Comments and City Responses".

WHEREAS, A notice of the March 14, 2023, public hearing describing the project, date, time, and location of the hearing was advertised in the Laguna Niguel News, posted at City Hall, and made available on the City's website on March 2, 2023, at least 10 days prior to the hearing date. On March 2, 2023, the 2023 red-line of the 2021-2029 Revised Housing Element Update was posted on the City's website, and hearing notices were mailed and emailed to all interested parties, which included a link to the 2023 red-line of the Resolution No. 2023-1422 Page 3
2021-2029 Revised Housing Element Update.

WHEREAS, On March 14, 2023, the Planning Commission held a duly noticed public hearing on the proposed 2021-2029 Revised Housing Element Update and adopted Resolution No. 23-03, recommending that the City Council approve General Plan Amendment GPA 21-01A01, augmentation of General Plan Amendment GPA21-01. The Planning Commission determined that General Plan Amendment GPA 21-01A01 was internally consistent with the goals, objectives, and policies of the Laguna Niguel General Plan.

WHEREAS, A notice of the March 21, 2023, public hearing describing the project, date, time, and location of the hearing was advertised in the Laguna Niguel News, posted at City Hall, and made available on the City's website on March 9, 2023, at least 10 days prior to the hearing date. Hearing notices were mailed and emailed to all interested parties, which included a link to the 2023 red-line of the 2021-2029 Revised Housing Element Update also on March 9, 2023.

WHEREAS, The red-lined 2021-2029 Revised Housing Element Update is attached as Exhibit 1 to this Resolution and incorporated herein by this reference as though set forth in full, and the revisions and responses to HCD's comments are summarized in Exhibit 2 and attached hereto and incorporated by this reference as though set forth in full.

WHEREAS, Pursuant to the California Environmental Quality Act (CEQA), the City Council finds, in its independent judgment, and based upon substantial evidence in the record, including the City Council staff report and attached exhibits, the Planning Commission staff report and attached exhibits, staff presentations and testimony, and all comments submitted to the City, that this amendment to the Laguna Niguel General Plan is exempt from CEQA requirements per Section 15061 of the CEQA Guidelines (14 Cal. Code Regs. Section 15000, et seq.). Specifically, Section 15061(b)(3) states, in part, that a project is exempt from CEQA if "the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA."
A. Section 15061(b)(3) consists of activities covered by the "common sense exemption" that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The Revised 2021-2029 Housing Element Update would not result in any direct or indirect physical changes to the environment. The Revised Housing Element Update is strictly a policy document and does not provide entitlements to any specific land use projects. The Revised Housing Element Update does not make any changes to the Laguna Niguel General Plan land use map and would not modify any land use designations, allowed densities, or land use intensities established by the General Plan.

Resolution No. 2023-1422 Page 4
B. The 2021-2029 Revised Housing Element Update contains goals, policies, and programs aimed at addressing Laguna Niguel's housing development, preservation, and rehabilitation needs, including accommodating the City's RHNA of 1,207 housing units by 2029, encouraging housing to serve lower income and special needs households, increasing access to affordable and special needs housing, and affirmatively furthering tair housing. he proposed project does not entitle, propose, or otherwise require the construction of new development or rehabilitation of existing development, out rather includes goals and policies to facilitate the development preservation, and rehabilitation of housing consistent with existing anc proposed uses identified in the Laguna Niguel General Plan and as mandated to be allowed under State law.

C. Future housing development projects will be reviewed pursuant to CEQA as applicable. The goals, policies, and programs established by the 2021-2029 Revised Housing Element Update would not change the rate or location of development and would not propose or approve any development projects.

The Housing Element also includes goals, policies, and programs to reduce constraints to housing. These goals, policies, and programs generally address land use designations that currently allow urban levels of development and would remove constraints to housing and implement housing types currently allowed and required to be permitted under State law. These revisions would not result in any changes to the intensities or densities of allowed uses beyond those allowed by the Laguna Niguel General Plan and those standards currently required by State law.

D. The proposed 2021-2029 Revised Housing Element Update was reviewed and it was determined that it would not have the potential to result in a significant adverse effect associated with any environmental issue area, including aesthetics, agricultural/forestry resources, air quality, biological resources, cultural resources, energy, geology/soils, greenhouse gases emissions, hazards and hazardous materials, hydrology/water quality, land use/planning, mineral resources, noise, population/housing, public services, recreation, transportation, tribal cultural resources, utilities/service systems, wildfire, cumulative impacts, or substantial adverse effects to human beings.

Therefore, the 2021-2029 Revised Housing Element Update is exempt from the provisions of the CEQA as set forth in Section 15061(b)(3) of the State CEQA Guidelines.

E. The City Council hereby directs staff to file a Notice of Exemption for the project, pursuant to the provisions of the State CEQA Guidelines, Sections 15061 and 15062. The records, documents, and other materials related to this matter are available at the City of Laguna Niguel Community Resolution No. 2023-1422 Page 5
Development Department, 30111 Crown Valley Parkway, Laguna Niguel, CA 92677.

WHEREAS, The City Council finds that General Plan Amendment GPA 21-01A01 is internally consistent with the existing goals, objectives, and policies of the Laguna Niguel General Plan which are not being amended, particularly the Land Use Element for the following reasons:

A. The General Plan's Land Use Goal LU-1 seeks to provide a well-balanced mix of land uses to meet the future needs of all residents. The 2021-2029 Housing Element advances this goal by first providing a description of the population, household type, household size, household income and overpayment, overcrowding, special needs populations, housing stock. housing age and condition, housing tenure and vacancy, housing costs and affordability, and at-risk rental housing. Secondly, the augmentation further advances the goal by describing the resources and opportunities available to meet the needs of the residents.

B. The General Plan Land Use Goal LU-8 seeks to revitalize Camino Capistrano / Cabot Road Business Area (also known as the Laguna Niguel Gateway Area). As identified in the Underutilized Sites description starting on page B-2 of the proposed Housing Element amendment, the Gateway area has been significantly revitalized due to the multi-family housing developments constructed, under construction, or approved in the area. As described in Table B-3 Approved Projects, there have been three projects (Gateway Senior, Blu II, and South Forbes) approved and/or issued building permits within the 2021-2029 planning period, totaling 579 new residential units. Furthermore, Table B-4 Vacant Sites identifies one vacant site, and Table B-5 Underutilized Sites identifies nine underutilized sites within the Gateway area that if constructed would contribute to the revitalization of the Gateway area as described in Goal 8.

WHEREAS, The City Council finds that General Plan Amendment GPA 21-01A01 will not adversely affect the public health, safety, and general welfare because the proposed amendment to the City's General Plan Housing Element further supports an adequate supply for housing, including Laguna Niguel's share of the region's new housing need for the 2021-2029 planning period as established by SCAG. The amendment further describes the plans to allow and support residential development opportunities in the City in an environmentally responsible manner. Therefore, the proposed amendment will not create conditions materially detrimental to public health, safety, and general welfare.

NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Laguna Niguel as follows:

Resolution No. 2023-1422 Page 6
The City Council does hereby approve General Plan Amendment GPA 21- 01A01, augmenting the Adopted 2021-2029 General Plan Housing Element in its entirety, as shown in Exhibit 1 attached hereto; and
The City Council does hereby find that General Plan Amendment GPA 21- 01A01, as shown in Exhibit 1 attached hereto, substantially complies with state law, as demonstrated by the Housing Element itself and the City's responses to HCD's comments, included in Exhibit 2 attached hereto; and The City Council does hereby find that the existing uses on the nonvacant sites identified as underutilized sites in the Site Inventory will not impede development during the planning period for the reasons explained in the Housing Element;

4. The City Manager is directed to transmit the newly revised Adopted 2021-2029 Housing Element to HCD for review, and to make any clerical or technical changes to the adopted Housing Element as may be required to obtain a finding of substantial compliance from HCD.

PASSED, APPROVED, AND ADOPTED this 21st day of March, 2023 Kelly Jennings, Mayor
ATTEST:

Marissa Asistin, CMC, City Clerk
Exhibits:

1. Red-lined 2021-2029 Revised Housing Element Update

2. Summary of HCD Comments and City Responses
EXHIBIT 1
2021-2029 Revised Housing Element Update

CITY OF

LAGUNA NIGUEL
2021-2029
Housing Element
City Council Resolution No. 2021-1372
October 19, 2021
with technical revisions February 2023

HOUSING

THE CITY OF LAGUNA NIGUEL
General Plan for the City of Laguna Niguel
Chapter 8 - HOUSING ELEMENT
Contents
I. Introduction.

A. Purpose of the Housing Element........

B. Scope and Content of the Housing Element
C. Public Participation..
2 D. Consistency with Other Elements of the General Plan 3 II. Housing Needs Assessment.
3 A. Population Characteristics.

1. Population Growth Trend.....

2. Age.

B. Household Characteristics

1. Household Size ....

2. Housing Tenure

3. Overcrowding..

4. Household Income and Overpayment
8 C. Employment.

1. Current Employment.

D. Housing Stock Characteristics...

1. Housing Type and Vacancy ..
10 2. Housing Age and Conditions.
10 3. Housing Cost
13 E. Special Needs 13

1. Persons with Disabilities..
1 2. Elderly...
17 3. Large Households..

4. Female-Headed Households..
18 5. Farm Workers..
19 6. Homeless Persons..
2 F. Assisted Housing at Risk of Conversion
2 1. Inventory of Assisted Units...

2. Units at Risk........

G. Low- and Moderate-Income Housing in the Coastal Zone 24 H. 2021-2029 Housing Needs.
24 1. Overview of the Regional Housing Needs Assessment 25 2. 2021-2029 Laguna Niguel Housing Needs.
27 III. Resources and Opportunities
27 A. Land Resources. 27
B Financial and Administrative Resources
27 1. State and Federal Resources.
28 2. Local Resources.
28 C. Energy Conservation Opportunities.
31 IV. Constraints
31 A. Governmental Constraints
3 Land Use Plans and Regulations
42 Development Processing Procedures
45 Development Fees and Improvement Requirements.
iii
February 2023Oeteber 19, 2021

THE CITY OF LAGUNA NIGUEL HOUSING
Non-Governmental Constraints. ...46
B.

Environmental Constraints. ...46

1. 2. Infrastructure Constraints.. ...46
Land Costs ....47

3. 4. Construction Costs ....47

5. Cost and Availability of Financing.... ..47
Requests to Develop at Lower Densities. ....48
C. Affirmatively Furthering Fair Housing (see Appendix D). ....48 V. Housing Plan. ...5353
A. Laguna Niguel Housing Element Goals and Policies... ....5353 B. Housing Programs. ...5454
C. Quantified Objectives.. ..6363
Appendix A - Evaluation of the Prior Housing Element
Appendix B - Residential Land Inventory
Appendix C - Public Participation Summary
Appendix D - Fair Housing Assessment
List of Tables
.3
Table II-1 Population Trends, 2000-2020 - Laguna Niguel vs. SCAG Region..

Age Distribution - Laguna Niguel... .4
Table I1-2
5 Table II-3 Household Size - Laguna Niguel.....

Household Tenure - Laguna Niguel vs. SCAG Region 5
Table 11-4
Table II-5 Household Tenure by Age - Laguna Niguel..
6 Table II-6 Overcrowding by Tenure - Laguna Niguel vs. SCAG Region....

Overpayment by Tenure and Income Category - Laguna Niguel ....7 Table II-7
Extremely-Low-Income Households by Race and Tenure - Laguna Niguel ...7 Table II-8
Employment by Industry - Laguna Niguel... ..8
Table I1-9
..8
Table II-10 Employment by Occupation - Laguna Niguel
..9
Table II-11 Housing by Type - Laguna Niguel vs. SCAG Region... ...9
Table II-12 Vacant Units by Type - Laguna Niguel vs. SCAG Region.

Age of Housing Stock - Laguna Niguel vs. SCAG Region... .10 Table II-13
Income Categories and Affordable Housing Costs, 2021 - Orange County 11 Table II-14
Table II-15 Median Sales Price for Existing Homes - Laguna Niguel vs. SCAG Region.. .11 Monthly Owner Costs for Mortgage Holders - Laguna Niguel vs. SCAG Region .12 Table II-16
Table II-17 Percentage of Income Spent on Rent - Laguna Niguel... 12 Percentage of Income Spent on Rent by Income Category - Laguna Niguel ..13 Table II-18
Table II-19 Disabilities by Type - Laguna Niguel .. .14 Table II-20 Disabilities by Type for Seniors 65+ - Laguna Niguel vs SCAG Region .15 Elderly Households by Income and Tenure - Laguna Niguel .17 Table II-21
Household Size by Tenure - Laguna Niguel ... .18
Table II-22
Female Headed Households - Laguna Niguel .18
Table II-23
Inventory of Assisted Units - Laguna Niguel .21
Table II-24
2021-2029 Regional Housing Needs - Laguna Niguel. .25
Table II-25
Table III-1 Land Inventory Summary - Laguna Niguel... ...27 Residential Land Use Categories - Laguna Niguel General Plan. .31 Table IV-1
Land Use Development Capacity - Gateway Specific Plan .... .34 Table IV-2
Residential Development Standards .... .36
Table IV-3
Permitted Residential Uses by Zoning District. .37
Table IV-4
Residential Parking Requirements.. .41
Table IV-5
Planning and Development Fees..... ...45
Table IV-6
Quantified Objectives - 2021-2029 City of Laguna Niguel ..6464 Table V-1
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I. INTRODUCTION
A. Purpose of the Housing Element
The Housing Element is a guide for housing within Laguna Niguel. The Element provides an indication of the need for housing in the community in terms of housing affordability, availability, adequacy, and accessibility. The Element provides a strategy to address housing needs and identifies a series of specific housing programs to meet community needs.

The Housing Element is an official municipal response to a growing awareness for the need to provide housing for all economic segments of the community, as well as a legal requirement for all California jurisdictions. It provides Laguna Niguel with the opportunity to plan for the existing and future housing needs in the community. This Element has been prepared in compliance with the 2021-2029 planning cycle for cities within the Southern California Association of Governments (SCAG) region. It identifies strategies and programs that focus on: 1) providing diverse housing sites and opportunities; 2) conserving and improving the existing affordable housing stock; 3) removing governmental and other constraints to housing development; and 4) promoting equal housing opportunities.

B. Scope and Content of the Housing Element
The State Legislature recognizes the role of local general plans and particularly the Housing Element in implementing statewide housing goals to provide decent and adequate housing for all persons. Furthermore, the Legislature stresses continuing efforts toward providing affordable housing for all income groups. The State Department of Housing and Community Development (HCD) also sets forth specific requirements regarding the scope and content of housing elements prepared by cities and counties.

As mandated by state law, the planning period for this Housing Element extends from 2021 to 2029. The Housing Element consists of the following major components:
• An analysis of the City's demographic and housing characteristics and trends (Chapter II); • An evaluation of land, financial, and administrative resources available to address the City's housing goals (Chapter III;
• A review of potential constraints, both governmental and non-governmental, to meeting the City's housing needs (Chapter IV); and
• A Housing Plan for the 2021-2029 planning period, including housing goals, policies and programs (Chapter V).

A review of the City's accomplishments and progress in implementing the 2013-2021 Housing Element is provided in Appendix A.

C. Public Participation
Section 65583(c)(5) of the Government Code states that "The local government shall make diligent effort to achieve public participation of all the economic segments of the community in the development of the housing element, and the program shall describe this effort." Public participation played an important role in the formulation and refinement of the City's housing goals and policies and in the development of a Land Use Plan that determines the extent and density of future residential development in the community.

City residents had several opportunities to recommend strategies, review, and comment on the Laguna Niguel Housing Element. In Spring 2021, public meetings to consider the draft Housing Element were held by the Planning Commission and City Council. Following review by the State Department of Housing and 1 February 2023Oetober 2024

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Community Development (HCD), public hearings were conducted by the Planning Commission and City Council to review and consider adoption of the Housing Element. Meeting notices were posted on the City's website, and notification was published in the local newspaper in advance of the meetings. Copies of the draft Element were made available for review at City Hall and were posted on the City website, and notices were sent directly to agencies that serve the City's special needs populations. These service providers included organizations that represent the housing interest groups. Please refer to Appendix C for a complete discussion of the public participation process for the 2021-2029 Housing Element update.

The follewing is a list of oppertunities for publie involvement in the preparation of this Housing Element update. A summary of materials and public comments from these meetings is included in Appendix C.

Planning Commission workshop April 15, 2021
Planning Commission meeting May 25, 2021
Planning Commission hearing September 28, 202ł
City Council hearing October 19, 2021
D. Consistency with Other Elements of the General Plan
State law requires that all portions of the General Plan be internally consistent. The Laguna Niguel General Plan contains the following nine elements: 1) Land Use; 2) Open Space and Parks; 3) Circulation; 4) Public Facilities; 5) Noise; 6) Seismic/Public Safety; 7) Housing; 8) Growth Management; and 9) Community Service Standards. The City will ensure consistency between the various General Plan elements and ensure policy direction introduced in one element is reflected in other plan elements. For example, residential development capacities established in the Land Use Element and constraints to development identified in the Seismic/Public Safety Element are incorporated into the Housing Element and the discussion of infrastructure and public services in the Housing Element is based upon information from the Public Facilities element.

This Housing Element builds upon the other General Plan elements and is consistent with the policies and proposals set forth by the Plan. As the General Plan is amended from time to time, the City will review the Housing Element for internal consistency, and make any necessary revisions.

Government Code §65589.7 (SB 1087 of 2005) requires cities to provide a copy of their Housing Elements to local water and sewer providers, and also requires that these agencies provide priority hookups for developments with lower-income housing. The Housing Element will be provided to these agencies immediately upon adoption.

Government Code §65302(g)(3) requires that the Safety Element be reviewed upon each revision of the Housing Element and, if necessary, be revised to include new information regarding flood hazard and management information.
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II. HOUSING NEEDS ASSESSMENT
Laguna Niguel is located in southern Orange County approximately midway between San Diego and Los Angeles. The City is a master-planned community that offers a range of lifestyle and housing opportunities.

Much of Laguna Niguel's growth took place prior to its incorporation in 1989. Since incorporation, the city has grown substantially from a population of approximately 44,400 to about 65,168 residents in 2021. Laguna Niguel is approximately 14.7 square miles in area and is bounded by Dana Point to the south, San Juan Capistrano to the east, Mission Viejo to the northeast, Laguna Hills to the north, Aliso Viejo to the northwest, and Laguna Beach to the west.

This chapter examines general population and household characteristics and trends, such as age, employment, household composition and size, household income, and special needs. Characteristics of the existing housing stock (e.g., number of units and type, tenure, age and condition, costs) are also addressed. Finally, the city's projected housing needs based on the 2021-2029 Regional Housing Needs Assessment (RHNA) are examined
The Housing Needs Assessment utilizes recent data from the U.S. Census, California Department of Finance (DOF, California Employment Development Department (EDD), Southern California Association of Governments (SCAG) and other relevant sources. Supplemental data was obtained through field surveys and from private vendors. In addition, the City's 2020-2024 Consolidated Plan provides useful information for this update of the Housing Element.

A. Population Characteristics

1. Population Growth Trends
Laguna Niguel was incorporated December 1, 1989 with a population of approximately 44,400. As of 2020 he city's estimated total population is 65,316 according to the California Department of Finance. Over th 2000-2020 period Laguna Niguel had an annual growth rate of 0.3% compared to 0.7% for the entire SCA region (see Table II-1).

Table II-1
Population Trends, 2000-2020 -
Laguna Niguel vs. SCAG Region

19.5 66.0

19.0 65.0 18.5

64.0 18.0

63.0 62.0

16.0 610 15.5

60.0 15.0
2000 2005 2010 2015 2020
- Laguna Niguel 61,891 63,310 62,979 64,457 65,316
- SCAG 16,516,703 17,541,873 18,051,534 18,731,901 19,021,787 CA DOF E-5 Population and Housing Unit Estimates
February 2023October 2021 3

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Table II-2
Age Distribution -
Laguna Niguel
4,000
3,000
2,000
1,000
40-44 45-49 50-54 55-50 80-84 85-09 70-74 75-79 80-84 85+ 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-30
1,000

2.000

3.000
4,000
•Male Female
American Community Survey 2014-2018 5-yeor estimates
B. Household Characteristics

1. Household Size
Household characteristics are important indicators of the type and size of housing needed in a city. The Census defines a "household" as all persons occupying a housing unit, which may include single persons living alone, families related through marriage or blood, or unrelated persons sharing a single unit. Persons in group quarters such as dormitories, retirement or convalescent homes, or other group living situations are included in population totals, but are not considered households.

Table II-3 shows recent Census estimates of household sizes in Laguna Niguel for owners, renters, and overall. The most commonly occurring household size is of two people (37.7%) and the second-most commonly occurring household is of one person (23.8%). Laguna Niguel has a higher share of single-person households than the SCAG region overall (23.8% vs. 23.4%) and a lower share of 7+ person households than the SCAG region overall (0.7% vs. 3.1%).
4 February 2023October 2021

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Table II-3
Household Size-
Laguna Niguel

45.0% 7500 0.557
2110
3930 6,040
- 23
9 3.

0.0% 7+
Number of People per Household
•Renter #Owner # Totall
American Community Survey 2014-2018 5-year estimotes

2. Housing Tenure
Housing tenure (owner vs. renter) is an important indicator of the housing market. Communities need an with varying income, family size and composition, and lifestyle. Table II-4 provides a comparison of owner- adequate supply of units available both for rent and for sale in order to accommodate a range of households occupied and renter-occupied units in the city as compared to the region as a whole. Laguna Niguel's housing tock consists of 25,360 total units, 17,760 of which are owner-occupied and 7,600 of which are renter ccupied. The share of renters in Laguna Niguel is lower than in the SCAG region overal Table II-4
Household Tenure -
Laguna Niguel vs. SCAG Region

80.0%

70.0%

70.0%
฿ 60.0% 52.5%

47.5%
· 50.0%
5 40.0% 30.0%

30.0%
₴ 20.0%
" 10.0%

0.0% SCAG
Laguna Niguel
•Owner (3) # Renter i%
American Community Survey 2014-2018 5-year estimotes.
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Home ownership rates are closely related to age, with younger persons more likely to be renters (Table II-5).

Table II-5
Household Tenure by Age -
Laguna Niguel
4,500
4,000
3,500
@ 3,000
° 2,500
฿ 2,000
$ 1,500
1,000
500
65-74 75-84 85+
15-24 25-34 35-44 45-54 55-59 60-64
1,887 3,844 2,803 2,740 3,681 1,551 503
=Owner 27 724
= Renter 576 420 679 252 134
371 1,849 1,766 1,553
American Community Survey 2014-2018 5-year estimates.

3. Overcrowding
Overcrowding is often closely related to household income and the cost of housing. The U.S. Census Bureau considers a household to be overcrowded when there is more than one person per room, excluding bathrooms and kitchens, with severe overcrowding when there are more than 1.5 occupants per room. Table II-6 summarizes recent overcrowding data for renters and owners in the City of Laguna Niguel compared to the region as a whole.

Table II-6
Overcrowding by Tenure-
Laguna Niguel vs. SCAG Region

18.0x 15.6%
" 16.0
§ 14.0%
$12.0%
· 10.0%.

7.6%
§ 8.0% 6.4%.

6.0% 4.9%

2.2%
& 20% 1.3%

0.7% 0.1%

0.0%. 1.5+/room

1.0+/room 1.5+/room 10+/room
Owner Renter Renter
Owner
* Laguna Niguel # SCAG
American Community Survey 2014-2018 5-year estimates.

This table shows that less than 1% of owner-occupied households were overcrowded but about 10% of renter- occupied households were overcrowded or severely overcrowded in Laguna Niguel. 6 February 2023Oetober 2021

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4. Household Income and Overpayment
Household income is a primary factor Table II-7
affecting housing needs a Overpayment by Tenure and Income Category - community. Recent Census estimates Laguna Niguel
reported that about 3.7% of Laguna Cost burden Cost burden * Tolal Income by Cost Burden (Renters only) * 30% 50%%
Niguel's households are experiencing 790 1,150
of Household Income less than or: 30% HAMFI 955
poverty, compared to7.9%
the SCAG region. Household income +30% to less-than or = 50% 920 e30 975 households in HAMFI
Poverty thresholds, as defined by the Household income :50% to less-than or = 80% 1,630 455 :,890 HAMFI
ACS, vary by household type. In 2018, Household Incorne :80% to less-than or= 100% 475 55 925 a single individual under 65 was HAMFI 35| 2,445
Household Income : 100% HAMFI 250
considered in poverty with a money 4,230 2,015 7,350
Total
income below $13,064/year while the Cost burdeni Cost burden Total income by Cost Burden (Owners only) * 30% 50%%
threshold for a family consisting of 2 1,205 1,050 1,475 Househoid Income less than or = 30% HAMFI
adults and 2 children was $25,465/year. Household income >30% to less than or = 50% 605 1,305 945
According to State housing policy, HAMFI
Household Income :50% to less-than or= 80% 1,150 605 1,060 overpaying occurs when housing costs HAMFI
exceed 30% of gross household Household Income +80% to less-than or= 100% 515 180 1.145 HAMFI
income. Table II-7 displays recent Household Income • 100% HAMFI 1,970 215 11,905 estimates for overpayment by house- 5,785 2,755 17,635
Total
hold income level and tenure in Laguna
Niguel. This table shows that the extremely-low-income and very-low-income households in Laguna Niguel had the highest rates of overpayment. Although homeowners enjoy income and property tax deductions and other benefits that help to compensate for high housing costs, lower-income homeowners may need to defer maintenance or repairs due to limited funds, which can lead to deterioration. For lower-income renters, severe cost burden can require families to double up, resulting in overcrowding and related problems.

Extremely-Low-Income Households
State law requires quantification and Table I1-8
analysis of the housing needs of Extremely-Low-Income Households by Race and Tenure- extremely-low-income (ELI) households, Laguna Niguel
which is defined as less than 30% of area Households Share median income. According to recent Total below 30% below 30% touseholds HAMFI HAMFI
HUD estimates about 2,475 Laguna
Niguel households are within the 18,280 1,785 9.8%
White, non-Hispanic
extremely-low-income category. ELI Black, non-Hispanic 395 30 7.6% households have a variety of housing Asian and other, non-Hispanic 2,960 360 12.2% problems including overpayment and 3,210 310 9.7%
Hispanic
overcrowding. Renters are about twice as 24,845 2,485 10.0% likely to have extremely low incomes than TOTAL
Renter-occupied 7,445 1,135 15.2%
homeowners.
17,405 1,340 7.7%
Owner-occupied
The resources and programs to address 24,850 2,475 10.0% TOTAL
this need are generally the same as for HUD CHAS, 2012-2016. HAMFI refers to Housing Urban Development Area Median Family Income. other lower-income categories and are
discussed throughout the Housing
Element, including Chapter V, the Housing Plan. Because the needs of ELI households overlap extensively with other special needs groups, further analysis and resources for these households can be found in Section IV.A.1.d, Zoning for Affordable Housing and Special Needs Housing, page 37.

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C. Employment
Employment is an important factor affecting housing needs within a community. The jobs available in each employment sector and the wages for these jobs affect the type and size of housing residents can afford.

1. Current Employment
Current employment and projected job growth have a significant influence on housing needs during this planning period. Recent Census estimates (Table II-9) reported that the city had 34,094 workers living within its borders who work across 13 major industrial sectors. The most prevalent industry is Education & Social Services with 7,299 employees (21.4% of total) and the second most prevalent industry is Professional Services with 5,206 employees (15.3% of total).

Table I1-9
Employment by Industry -
Laguna Niguel
Agriculture 86
Construction 1561
Manufacturing 3.082
Wholesale Rrade 1,261
Retail Trade 3.523
Transportation 1,171
information 977

4.161
Finance

5.206
Professional Services
7,299
Education & Social Services

3.320
Arts. Entertainment, Recreation
Other 1.485
Public Administration 962

3.000 4.000 5.000 6.000 7.000 8.000
1,000 2.000
American Community Survey 2014-2018 5-year estimates using groupings of 2-digit NAICS codes.

As seen in Table II-10, the most prevalent occupational category in Laguna Niguel is Management, in which 17,590 (51.6% of total) employees work. The second-most prevalent type of work is Sales, which employs 9,044 (26.5% of total) in Laguna Niguel.

Table II-10
Employment by Occupation -
Laguna Niguel

60.0%
17,590

50.0%

40.0% 2.616.827
9,044

30.0% 1.743.617
1,500.551 1,118.977
200% 4,498
675.894 1.973

10.0% 989
Natural Resources Production

0.0% Services Sales
Management 5.8%

13.2% 26.5% 2.9%
- Laguna Niguel 516%

19.6% 22.8% 8.8% 14 6%
• SCAG 34 2%
• Laguna Niguel = SCAG
American Community Survey 2014-2018 5-year estimates using groupings of SOC codes. 8 February 2023Oetober 2024

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D. Housing Stock Characteristics
This section presents an evaluation of the characteristics of the community's housing stock and helps in identifying and prioritizing needs. The factors evaluated include the number and type of housing units, age and condition, tenure, vacancy, housing costs, affordability, and assisted affordable units at-risk of loss due rooms, occupied as separate living quarters, or if vacant, intended for occupancy as separate living quarters. to conversion to market-rate. A housing unit is defined as a house, apartment, mobile home, or group of Housing Type and Vacancy
According to the California Department of Finance, the housing stock in Laguna Niguel is comprised mostly of single-family detached homes, which made up about 55% of all units, while multi-family units comprised about 25% of the total (Table II-11).

Table II-11
Housing by Type -
Laguna Niguel vs. SCAG Region
100%
90%
80%
70% 14.527
60%
Percent of Total Units 50%
40% 5.146
30% 5,107
20% 1.08 18
10%
0% Single-Family ngle-Fami Multifamily. 5+ Units Mobile Homes Multamiy 24
Detached ttache

19.6% 0.2%
• Laguna Niguel (%) 55.4% 19.5% 3.5%

54.4% 7.2% 7.5% 27.3%
= SCAG (%)
CA DOF E-5 Population and Housing Unit Estimates
Table I1-12 shows recent Census estimates regarding vacant units in Laguna Niguel compared to the SCAG region as a whole. In both the city and the entire region, the largest category of vacant units is "seasonal" which is likely to represent second homes occupied for a portion of the year.

Table II-12
Vacant Units by Type -
Laguna Niguel vs. SCAG Region

37.6%
40%

33.5%

27.7%

23.09%

20.7%

16.0%

11.4%

7.9% 7.2%

4.8% 5.4% 4.5%
2 5% 0.0% 0.3%
0% Seasonal Migrant Other
For Rent Rented For Sale Sold
• Laguna Niguel # SCAG
American Community Survey 2014-2018 5-year estimates.
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THE CITY OF LAGUNA NIGUEL HOUSING

2. Housing Age and Conditions
Housing age is often an important indicator of housing condition. Housing units built prior to 1978 before distribution of the housing stock in Laguna Niguel compared to the region as a whole.

Table II-13
Age of Housing Stock-
Laguna Niguel vs. SCAG Region
50%
45'%.
40%.
35'%-
30%
Percent of Total Units 25'%
20%.
15%.
10%.
5°%.
0% 1980- 1960- 1950 1939 &
2014& 2010- 2000- 1990- 1970
1940- Earlier
Later 2013 2009 1999 1989 1979 1969 1959
Laguna Niguel (%.)| 0.8% 0.7%. 4.7% 24.2% 44.5% 17.7% 5.5% 1.2% 0.2:x- 0.5%.

SCAG (%) 1.0% 1.5%. 10.1% 9.5'%. 15.0% 16.3% 14.5% 15.9x 6.9: 9.3X. m Laguna Niguel (%)n SCAG (%)
American Community Survey 2014-2018 5-year estimates.

This table shows that the majority of housing units in Laguna Niguel were constructed prior to 1990 and are now more than 30 years old. This suggests that there is a growing need for housing repair and rehabilitation in the city.

The goal of the City's Code Enforcement program is to address housing concerns before they become serious which represents about 1% of the city's total housing stock.

3. Housing Cost
a. Housing Affordability Criteria
State law establishes five income categories for purposes of housing programs based on the area (i.e., county) median income ("AMI"): extremely-low (30% or less of AMI), very-low (31%-50% of AMI), low (51%- 80% of AMI), moderate (81-120% of AMI) and above moderate (over 120% of AMI). Housing affordability is based on the relationship between household income and housing expenses. According to HUD and the California Department of Housing and Community Development', housing is considered "affordable" if the monthly payment is no more than 30% of a household's gross income. In some areas, such as Orange County, these income limits may be increased to adjust for high housing costs.

HCD memo of 2/1/2012 (http://www.hed.ca.gov/hpd/hrc/rep/state/incNote.html) February 2023Oeteber 2024 10

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Table II-14 shows affordable rent levels and estimated affordable purchase prices for housing in Orange County (including Laguna Niguel)' by income category. Based on state-adopted standards, the maximum affordable monthly rent (including utilities) for extremely-low-income households is $1,009, while the maximum affordable rent for very-low-income households is $1,681. The maximum affordable rent for low- income households is $2,689, while the maximum for moderate-income households is $3,201.

Maximum purchase prices are more difficult to determine due to variations in factors such as mortgage interest rates, qualifying procedures, down payments, special tax assessments, homeowner association fees, and property insurance rates. With this caveat, the maximum home purchase prices by income category shown in Table II-14 have been estimated based on typical conditions.

Table II-14
Income Categories and Affordable Housing Costs, 2021 -
Orange County
Affordable Rent Affordable Price (est.)
Income Category Maximum Income
$1,009
Extremely Low
Very Low
Low $500,000
Moderate Over $3.201 Over $500,000
Assumptions: Based on a family of 4 and 2021 State income limits; 30% of gross income for rent or principal, interest, taxes & insurance; 5% down payment, 4% interest, 1.25% taxes & insurance, $350 HOA dues *For-sale affordable housing is typically at the moderate income leve Source: Cal. HCD; JHD Planning LLC
b. For-Sale Housing
Between 2000 and 2018, median home sales prices in Laguna Niguel increased 145% while prices in the SCAG region increased 151%. 2018 median home sales price in Laguna Niguel was approximately $800,000.

Prices in Laguna Niguel have ranged from a low of 123.8% of the regional median in 2006 and a high of 171.6% in 2009 (Table II-15). Based on the estimated affordable purchase prices shown in Table II-14 above, most detached homes are only affordable for above-moderate income households.

Table II-15
Median Sales Price for Existing Homes -
Laguna Niguel vs. SCAG Region
200.0%
$900.000 180.0%
$800.000 160.0%
$700,000 140.0%
$600,000 120.0%
100.0%
$500.000
$400,000 800%
60 0%
$300,000
40 0%
$200,000

20.0%
$100.000

0.0%
- Laguna Niguel SCAG - - - Laguna Niguel Percentage of SCAG Price SCAG Local Profiles, Core Logic/Data Quick. SCAG median home sales price calculated as household-weighted average of county medians.

Affordable rent and purchase prices are based on county median income.

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Owner households make up about 70% of Laguna Niguel households. Table II-16 shows the distribution of mortgage payment in both Laguna Niguel and throughout the SCAG region is $2,000 to $3,000 per month. monthly mortgage cost in Laguna Niguel compared to the region as a whole. The most commonly occurring Table II-16
Monthly Owner Costs for Mortgage Holders -
Laguna Niguel vs. SCAG Region
40%

30.733.4%
1 35x 25.1% 25.1%
2 25% 19.6%
20% 15.4%

13.7% 12.3%
§ 15% 9.5%

6.9%.

22.5.1%
5°%. 0.5X.0.5%.
0%. S1500-$2000 $2000-53000 $3000-$4000 >$4000
<$500 $500-$1000 $1000-$1500
Mortgage - Monthly Payment
E Laguna Niguel #SCAG
American Community Survey 2014-2018 5-year estimates.

C. Rental Housing
As described previously in the discussion of income and overpayment (Table II-7), a large proportion of renters in Laguna Niguel fall within the lower-income categories. As a result, trends in rental rates have a major impact on these residents. Table II-17 shows recent Census estimates of the percentage of income spent on rent in Laguna Niguel. Over 57% of Laguna Niguel renters spend 30% or more of gross income on housing cost, compared to about 55% in the SCAG region. Additionally, about 31% of households in Laguna Niguel spend 50% or more of gross income on housing cost, compared to about 29% in the SCAG region as a whole.

Table II-17
Percentage of Income Spent on Rent-
Laguna Niguel
2,346
2,500
910
761 751 695 708
623฿
401
500 260
145
25-30x 30-35°X 35-40x. 40-49% >50x Not
<10% 10-15% 15-20% 20-25%
Computed
Percent of Income Spent on Rent
12 February 2023Oeteber 2021

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Census estimates also show that lower-income households spend a higher share of income on housing while high-income households are more likely to spend under 20% of income on housing (Table II-18).

Table II-18
Percentage of Income Spent on Rent by Income Category - Laguna Niguel
100%
90%
80%
70%
Iber of Renter Households 60%
50%.
40%. #=50x.
30% 30-49X
20x
Num 10% 13 20-29%
0%. $35,000 to $50,000to $75,000 to $100,000 or •<20%
Less than $20,000 to $99,999 more
$20,000 $34,999 $49,999 $74,999
299 65 7
• = 50% 443 935 597
152 1,082 545 166
• 30-49% 39 42
16 139 340 1,134
= 20-29 %. 32
29 36 45 1.056
I <20%
Income Category
American Community Survey 2014-2018 5-year estimates.

E. Special Needs
Certain groups have greater difficulty in finding decent, affordable housing due to special circumstances.

Such circumstances may be related to one's employment and income, family characteristics, disability, or other conditions. As a result, some Laguna Niguel residents may experience a higher prevalence of overpayment, overcrowding, or other housing problems.

State Housing Element law defines "special needs" groups to include persons with disabilities (including developmental disabilities), the elderly, large households, female-headed households with children, homeless people, and farm workers. This section contains a discussion of the housing needs facing each of these groups.

Information to help low-income households and persons with special needs in finding affordable housing and related support services in Laguna Niguel and adjacent areas is posted on the City's website.?4 These resources include programs and contact information.

1. Persons with Disabilities
The Federal Rehabilitation Act of 1973 defines a disabled person as "any individual who has a physical or mental impairment which substantially limits one or more major life activities, has record of such impairment. or is regarded as having such impairment." Disabilities may include physical, developmental, or mental. The special housing needs of these populations include independent living units, supportive housing, and accessible housing units designed to facilitate mobility. Persons with disabilities may also have low incomes and require financial subsidies to afford suitable housing. 3 https://www.cityoflagunaniguel.org/1287/Homeless-Services 4 https://www.cityoflagunaniguel.org/668/Housing-Resources 13 February 2023Oetober 2024

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Recent Census data estimated that the most common types of disability for Laguna Niguel residents are ambulatory, hearing, cognitive and independent living disabilities (Table II-19). Of those aged 65 and over in Laguna Niguel, the most common types of disabilities were hearing and ambulatory (Table II-20). In Laguna Niguel, about 44% of the population with a disability is employed, compared to 76% of those without a disability.

Housing opportunities for persons with disabilities can be maximized through housing assistance programs, universal design features such as widened doorways, ramps, lowered countertops, single-level units and ground floor units, residential care facilities and assisted living developments. Available resources to assist this population are posted on the City websites noted above. In addition to these resources. City housing programs that respond to the needs of this population include 1-Emergency Shelters and Transitional/ Supportive Housing, 2-Affordable Housing Development. 3-Conservation and Improvement of Existing Low- and Moderate-Income Housing, and 4-Promotion of Equal Housing Opportunity. (see also the discussion in the Constraints chapter regarding City regulations that facilitate production of special needs housing and reasonable accommodation for persons with disabilities).

Table II-19
Disabilities by Type -
Laguna Niguel
Independent Living 1,836
Self-care 1,112
2,029
Ambulatory
1,861
Cognitive
Vision • 722
1,987
Hearing
1,000 1,500 2,000 2.500
500
American Community Survey 2014-2018 5-year estimates.
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THE CITY OF LAGUNA NIGUEL HOUSING
Table II-20
Disabilities by Type for Seniors 65+ -
Laguna Niguel vs SCAG Region

25.0% 22.9%
§ 20.0% 17.5X

12.6x13.1x 12,5%

10.1% 10.5% 10.0x

6.6%

5.5%. 5.5%

3.4%.

0.0%
Hearing Vision Cognitive Ambulatory Self-care Independent Living B Laguna Niguel Percent #SCAG Region Percent
American Community Survey 2014-2018 5-year estimates
Developmental Disabilities
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 for independent living; or g) economic self-sufficiency; • 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 Bureau does not record developmental disabilities. According to the U.S. Administration on Developmental Disabilities, an accepted estimate of the percentage of the population as affected by a developmental disability is 1.5%. Many of those with a developmental disability can live and work independently within a conventional housing environment. More severely affected individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional 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 independence as an adult.

The State Department of Developmental Services (DDS) estimated that there are approximately 396 persons in Laguna Niguel with a developmental disability, and most of those live with a family member. DDS provides community-based services to 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 to services for people with developmental disabilities. The RCOC is a private, non-profit February 2023October 2021 15

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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 day 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.

The mission of the Dayle McIntosh Center is to advance the empowerment, equality, integration and full participation of people with disabilities in the community. The Center is not a residential program, but instead promotes the full integration of disabled persons into the community. Dayle McIntosh Center is a consumer- driven organization serving all disabilities. Its staff and board are composed of over 50% of people with disabilities. Its two offices service over 500,000 people in Orange County and surrounding areas with disabilities. The Center's South County branch is located in Laguna Hills, immediately adjacent to Laguna Niguel.

In addition to these resources, City housing programs that respond to the needs of this population include 1- and Transitional/Supportive Housing, 2-Affordable Housing Development, 3- Emergency Shelters
Conservation and Improvement of Existing Low-and Moderate-Income Housing, and 4-Promotion of Equal Housing Opportunity.

2. Elderly
Federal housing data define a household type as 'elderly family' if it consists of two persons with either or both age 62 or over. Recent Census Bureau estimates reported that of Laguna Niguel's 7,175 such households,

11.8% earn less than 30% of the area median income (compared to 24.2% in the SCAG region) and 26.6% earn less than 50% of the area median income (compared to 30.9% in the SCAG region) (Table II-21).

Many elderly persons are dependent on fixed incomes and/or have one or more disabilities (see Table II-20 and the discussion of persons with disabilities, above). Elderly homeowners may be physically unable to maintain their homes or cope with living alone. The housing needs of this group can be addressed through smaller single-level units, accessory dwelling units on lots with existing homes, shared living arrangements, congregate housing, and residential care facilities. Section IV.A.1.d in the Constraints chapter discusses how City regulations encourage and facilitate the availability of various types of housing suitable for elderly residents.

Housing assistance programs to address the needs of elderly residents are described in Chapter V and include 1- Emergency Shelters and Transitional/Supportive Housing, 2-Affordable Housing Development, 3-Conservation and Improvement of Existing Low- and Moderate-Income Housing, and 4-Promotion of Equal Housing Opportunity. In addition to these targeted housing programs, the City has established a Senior Citizens Committee as an advisory group to the City Council and the Parks & Recreation Commission on matters related to senior citizens. The Committee promotes involvement of senior citizens in community affairs and provides input regarding a variety of programs for the benefit of seniors, such as the Sea Country Senior and Community Center. Information regarding programs and activities offered by other local organizations that provide assistance to the elderly are posted on the City website and include Age Well? 5 https://www.cityoflagunaniguel.org/44/Senior-Citizens-Committee 6 https://www.cityoflagunaniguel.org/25/Sea-Country-Senior-and-Community-Center https://agewellseniorservices.org/
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Senior Services, which operates programs that include Meals-on-Wheels, Non-Emergency Medical Transportation, Senior Center Lunch, Health & Wellness, and Care Management.

Seniors in Laguna Niguel also benefit from the resources made available by the County of Orange Office on Aging, the lead advocate for seniors residing in Orange County communities. The goals of the Office on Aging include improving transportation, health and safety, and access to affordable housing for the county's elderly population. The Office on Aging operates the Info Van, a traveling library of outreach materials for seniors and their caregivers that makes scheduled stops throughout the county. Another resource is the Office on Aging's website (https://www.officeonaging.ocgov.com/), which provides an extensive database of useful information, such as guides for financial and legal matters, nutrition and exercise, safety, prescription medicine, diseases and conditions, and transportation.

Table II-21
Elderly Households by Income and Tenure-
Laguna Niguel
Percent of Total Elderty
Owner Renter Total Households:

Income category, relative to < 30% HAMFI 605 240 845 11.8% surrounding area: 190 1,060 14.8%
870
30-50% HAMFI
1,195 265 1,460 20.3%
50-80% HAMFI
80-100% HAMFI 525 85 610 8.5%
2,975 225 3,200 44.6%
> 100% HAMFI
TOTAL 6,170 1,005 7,175
HUD CHAS, 2012-2016. HAMFI refers to Housing Urban Development Area Median Family Income.

3. Large Households
Household size is an indicator of need for larger units. Large households are defined as those with five or more members. As shown previously in Table II-22, the most common household size in Laguna Niguel for both owners and renters is two people while the second-most common household is a single person living alone. Large households with five or more persons represent only about 999(5.9%) owner households and 726 (8.8%) renter households. This household size data show indicates that the need for large units with four three or more bedrooms is expected to be significantly less than for smaller units. Recent Census estimates reported there were approximately 13.400 owner-occupied units and approximately 2,500 renter-occupied units with three or more bedrooms in Laguna Niguel, which significantly exceeds the number of large households in the city. However, while there are a sufficient number of large units to accommodate large families. housing affordability remains a problem for many large families. especially renters. Housing programs described in Chapter V encourage production of affordable housing and address the needs of large households.
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Table II-22
Household Size by Tenure -
Laguna Niguel
Owners Renters
Household Size Households % Households %
3,317 19.5% 2.411 28.8%
1 person
2 persons 7.675 45.1% 2.781 33.3%
3 persons 2,885 17.0% 1.577 18.9%
4 persons 2.124 12.5% 866 10.4%
5 persons 741 4.4% 424 5.1%
6 persons 169 1.0% 88 1.1%
7 or more persons 89 0.5% 214 2.6%

17.000 100% 8.361 100%
Solace: 2021 ACS S year estimates

4. Female-Headed Households
Recent Census estimates reported that about 7.9% of Laguna Niguel's households are female-headed (compared to 14.3% in the SCAG region), 3.2% are female-headed and with children (compared to 6.6% in the SCAG region), and 0.9% are female-headed and with children under 6 (compared to 1.0% in the SCAG region) (Table II-23). While female-headed households represent a relatively small portion of households, they are more likely to have housing problems such as overpayment or overcrowding. City programs described in Chapter V to facilitate new affordable housing development and conservation of existing affordable homes help to serve the needs of single-parent households with low- and moderate-incomes.

Table II-23
Female Headed Households -
Laguna Niguel
FHH w/children under 60.9%; 222
FHH w/children 3.2%; 820
Total FHH 7.9%: 2013
Total Houseloids 25360
10000 15000 20000 25000 30000
5000
Percent of totel househods; Number of houselolds
American Community Survey 2014-2018 5-year estimates.

5. Farm Workers
Farm workers are traditionally defined as persons whose primary income is from seasonal agricultural work.

Historically, Orange County's economy was linked to agriculture. Today, Orange County is a mostly developed urban/suburban region, with a strong local economy that is not tied to an agricultural base. While there are still significant active farming areas on the Irvine Ranch to the north and Rancho Mission Viejo to the southeast, shifts in the county's economy to manufacturing, technology, and service-oriented sectors have significantly curtailed agricultural production. Recent Census estimates reported that 12 persons living in Laguna Niguel were employed full-time, year-round in farming, fishing and forestry occupations. Since there are no significant agricultural operations within Laguna Niguel, the need for permanent farmworker housing February 2023Oetober 2024

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is of less concern than in other areas where large-scale agricultural operations exist. The needs of lower- income agricultural workers who are permanent residents are addressed through a variety of affordable housing programs described in Chapter V that serve the needs of all lower-income persons and are not restricted only to farmworkers.

6. Homeless Persons
Throughout the country, homelessness is a serious problem. Factors contributing to homelessness include:
the general lack of emergency shelters and transitional housing, housing affordable to lower-income persons; an increasing number of persons whose incomes fall below the poverty level; reductions in public assistance for the poor; and the de-institutionalization of the mentally ill.

The most recent County of Orange "Point-in-Time" survey of the homeless population for which data is available was conducted in January 2019. That survey estimated that there were approximately 6,860 homeless persons in Orange County, of which 2,899 were sheltered and 3,961 were unsheltered? Of those, 7 unsheltered persons and 3 sheltered persons were reported in Laguna Niguel.

Gov't Code § 65583 (Senate Bill SB 2 of 2007) requires that jurisdictions quantify the need for emergency shelter and determine whether existing facilities are adequate to serve the need. An emergency shelter is defined as "housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay." If adequate existing facilities are not available, the law requires jurisdictions to identify areas where new facilities are permitted "by-right" (i.e., without requiring discretionary approval such as a use permit). A jurisdiction could also satisfy its shelter needs through a multi-jurisdictional agreement with up to two adjacent communities to develop at least one year-round shelter within two years of the beginning of the planning period. As noted in Chapter IV the City allows emergency shelters in compliance with Government Code §65583 and Program 2 describes City actions to address these needs.

The City of Laguna Niguel is committed to doing its fair share to provide assistance and resources to individuals experiencing homelessness in the City of Laguna Niguel. as well as to those that may be on the verge of homelessness.

In 2018. The City formed a Homeless Task Force that focused on the need to identify local service provider resources and groups that could assist the Laguna Niguel homeless population. The task force also identified members of the local faith-based community that could provide assistance to those in need. The existing partnership with the Orange County Sheriff's Department was also further identified as a key component to addressing any safety and/or health related issues occurring within the community, specific to homelessness.

In 2019. the County of Orange conducted a "Point-in-Time Count" to identify sheltered and unsheltered homeless individuals in Orange County's 34 cities and in unincorporated areas. The 34 Orange County cities are separated into three Service Planning Areas (SPAs), North/Central/South, with Laguna Niguel falling into the South SPA. During the 2019 Point-in-Time Count, Laguna Niguel recorded a total of 7 unsheltered and 3 sheltered homeless individuals (10 total).

In late 2019. the City's commitment to provide assistance and resources to individuals experiencing homelessness further increased through the formation of a new partnership with local homeless service provider. Mercy House. This partnership included the incorporation of homeless outreach and diversion services that aimed to assist homeless individuals with securing temporary and/or permanent housing through the completion of a housing plan tailored towards each individual's needs. The City was fortunate to utilize the award of County of Orange HEAP grant funding to subsidize the expense related to these critical services.

County of Orange, 2019 Point in Time Final Report, July 30, 2019 (http://ochmis.org/wp-content/uploads/2019/08/2019-PIT- FINAL-REPORT-7.30.2019.pdf)
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Throughout 2020 and 2021, due to
the COVID-19 pandemic, the need south county
outreach
for critical resources and outreach
services increased. To support this Impact LAGUNA
need, the City Council approved the on the city
award of additional federal grant NIGUEL
funding (CDBG-CV) to Mercy In 2021...

House as well as to other local
service providers including Family
Assistance Ministries (F.A.M.) and Clients Served from Laguna Niguel South County Outreach. This
funding has provided Laguna Nigue! 78 271 5%
households individuals
with increased resources for home- of South County
less outreach and diversion services, Outreach clients
2% children live in the city of
residential rental assistance. utility City of Laguna Niguel L. aguna Niguel assistance, emergency transportation Client Demographic 16% seniors and nutrition/food needs.
48%
The City's efforts to end homeless- 151 Laguna Niguel clients were directty impacted by COVID-19 58% undermployed workers/ ness focus on a 3-pronged. currently employed
collaborative partnership that
includes City Administration. Local
Service Providers and Behavioral $45,507 in financial assistance to city residents Health Liaisons (BHLs), formerly $44,621 in $1,886 in unity 227 residents known Homeless Liaison rental assistance to assistance to city shopped our food pantry residents 282 times
Officers. This collaborative city residents
approach towards providing
Bouth County Outreach Tolel trapact in 2021
vers - 731 housetickos record remia: & unity assance • 2,000 househots a mont served n ou loud pantry resources and outreach & diversion 6.100 peopie s
services to individuals experiencing
homelessness is one that is safe.
supported. and dignified. The
ultimate goal of this partnership is to secure temporary and/or permanent housing for individuals that are in need while maintaining the safety of the community.

The City's efforts to assist those that are on the verge of homelessness focus on a collaborative partnership that includes City Administration and Local Service Providers. The ultimate goal of this partnership is to provide assistance and resources so that those that are on the verge of homelessness can continue to remair consistently housed. Local service providers work with youth, families, and single adults to identify and mee their needs related to housing, mental health, nutrition, government programs, subsidy assistance, substance abuse, relocation transportation, etc. Key local service providers include:
• Mercy House
Providing comprehensive homeless outreach and diversion resources and services to individuals located in the City of Laguna Nigue!
Collaborate with Homeless Liaison Officers (HLO's)
Family Assistance Ministries (F.A.M.)
• Providing rental assistance, utility assistance. food subsidy programs and job skills training to Laguna Niguel residents
Collaborate with Mercy House
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South County Outreach
Providing rental assistance, utility assistance, food subsidy programs and outreach services to Laguna Niguel residents
Collaborate with Mercy House
In calendar year 2021, the City of Laguna Niguel made great progress in the areas of ending homelessness and preventing homelessness.
2021 Program Highlights by the Numbers:
• 12 individuals exited the streets to permanent and/or temporary housing, emergency shelter or institutional care.
° 2.020 total Laguna Niguel clients were served.

1.569 food encounters by Laguna Niguel residents.
• 304 Laguna Niguel seniors were served.
2021 Program Funding by the Numbers:
100% of all funding allocated to the City's key local service providers in support of assisting individuals experiencing homelessness, and those on the verge of homelessness. was provided through County and Federal grant programs.

The City of Laguna Niguel remains committed to continuing its strategic partnerships with local service providers to collaborate in preventing and ending homelessness and hunger for Laguna Niguel residents.

F. Assisted Housing at Risk of Conversion
This section identifies all residential projects in the city that are under an affordability restriction, along with those housing projects that are at risk of losing their low-income affordability restrictions within the ten-year period 2021 to 2031. This information is used in establishing quantified objectives for units that can be conserved during this planning period.

1. Inventory of Assisted Units
Assisted projects in Laguna Niguel are shown in Table II-24. There are two assisted projects in the city, both of which are eligible to convert to market rate within the 2021-2031 timeframe.

Table II-24
nventory of Assisted Units
aguna Nigue
Total Units/ Expiration At Risk
Project Type of Assistance Affordable Units Project Type Date 2021-2031? Alicia Park Apartments 223(a)(7)/221 (d)(4)M 56/56 Sec. 8 2023 Yes Village La Paz Section 8 NC 100/100 Sec. 8 2022 Yes
Sources:

City of Laguna Niguel Community Development Dept.

California Housing Partnership Corporation, 2021
February 2023October 2021 21

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2. Units at Risk
According to the California Housing Partnership Corporation, there are two assisted projects that are at-risk during 2021-2031 in Laguna Niguel. In general, there are three actions that can result in the conversion of public-assisted units:

1. Prepayment of HUD mortgages:
à. Section 221(d)(3) or (4)M - property owner receives either below-market interest rate or market interest rate loans from HUD with a rental subsidy for tenants as well. The program also allows for long-term mortgages (up to 40 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities. b. Section 236 - property owner receives financial assistance from HUD to pay interest costs, thereby reducing tenant rental costs. Rental subsidies may also be provided to the tenants.

C. Section 223(a)(7) - property owner is provided funds to refinance existing debt and to complete necessary repairs, resulting in lower debt service and improved mortgage security. It is available only to mortgages currently insured by FHA. d. Section 202 - non-profit property owner receives a loan from HUD to pay for development costs with a rental subsidy for senior tenants.
e Section 811 - property owner receives financial assistance from HUD to pay for development costs of units for special needs.

2. Expiration/opt-out of project-based Section 8 rental assistance contracts The Section 8/Housing Voucher Choice Program provides rental subsidies to the property owner of a pre-qualified project. The financial assistance pays the difference between the tenant's ability to pay and the contract rent.

An opt-out may occur if the property owner decides to pre-pay the balance of the HUD mortgage.

During this process, HUD may offer incentives to the property owner. Such incentives rang rom refinancing the mortgage at a lower interest rate to establishing higher rents. If at any poin during this process the property owner fails to complete a HUD-required step, the Section 8 contract automatically rolls over for another 5-year period.

3. Other
Expiration of other affordability periods may occur when utilizing the following funding sources:
a. Low-income Housing Tax Credits (LIHTC)
b. Bond financing
C. Density bonuses
d. California Housing Finance Agency (CHFA)
e. Community Development Block Grant (CDBG)
f. HOME Program
At-Risk Status
Two assisted properties, representing 156 lower-income rental units, are at risk of conversion as identified in Table II-24 above. Financial assistance mandates affordable income restrictions and occupancy that will expire on the date shown.

Alicia Park Apartments and Village La Paz - The use restrictions for Alicia Park Apartments and Village La Paz are a result of HUD-issued Project Specific Section 8 Contracts that were executed at the time the original FHA mortgages were originated. The purpose of the Project February 2023October 2021 22

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Specific Section 8 contract is to ensure that the project's units remain affordable to qualified, low-income tenants for the life of the contract, which is offered at 15- to 20-year terms, and require renewal every 5 years thereafter.

If the owners of Alicia Park Apartments and Village La Paz choose to opt-out of their Section 8 contracts, it would represent a loss of 156 units of affordable rental housing, a significant decrease in Laguna Niguel's available pool of affordable housing units.

The projects that are at risk of conversion contain a significant number of 3- and 4-bedroom units. Therefore, loss of any large family units as well as the 1- and 2-bedroom affordable units would likely affect the already burdened low-income rental population.

Cost Analysis
The primary factors used to analyze the cost of preserving low-income housing include:

1. Acquisition/rehabilitation costs - depends on size, location, current sales figures. Assuming an average cost of $350,000 per unit, acquisition/rehabilitation of 156 low-income units would cost approximately $55 million.

2. New construction costs - depends on size, construction materials, financing costs, and off- and on-site improvements. Assuming an average development cost of $500,000 per unit, replacement of 156 low-income units would cost approximately $78 million. w Rental assistance - depends on the income of the household and Fair Market rents. As of 2021, Fair Market rents for Orange County are as follows:

Efficiency - $1,678
1-bedroom - $1,888
2-bedroom - $2,331
3-bedroom - $3,227
4-bedroom - $3,716
As shown previously in Table II-14, a very-low-income household of four persons can afford to pay $1,681 per month (including a utility allowance) for housing. This would require a monthly rental subsidy of S650, or $7,800 per year for a 2-bedroom unit. Therefore, if affordability covenants were to expire on all of the 156 units in the at-risk projects, a total cost of approximately $1,216,800 per year would be required in order to provide rental housing at comparable affordability levels.

Preservation Resources
Efforts by the City to retain the at-risk housing units must draw upon basic resources as follows:

Organizational Resources - The following local agencies are potential organizations with experience and capacity to assist in the preservation of at-risk units:

Orange County Community Housing Corp. (Santa Ana)
a.
b. Jamboree Housing Corp (Irvine)
c. Mary Bai Coon Foundation Sance or Cattornia (Rancho Cucamong) d.
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THE CITY OF LAGUNA NIGUEL HOUSING
• Financial Resources - The following is a list of potential financial resources to be considered as part of the City's overall financial plan to retain affordable housing units. The City of Laguna Niguel does not have a Redevelopment Agency.
a. Community Development Block Grant - The City currently receives approximately $360,000 in CDBG funds from HUD annually.

Orange County Housing & Community Development Department - The County receives annual funding from HUD to administer the Section 8 Housing Voucher Choice Program and the HOME Program.
c. Affordable Housing Clearinghouse - serves a mortgage brokerage that specializes in financing affordable housing projects.

G. Low-and Moderate-Income Housing in the Coastal Zone
The western edge of the city is within the Coastal Zone. Government Code Section 65590 et seq. prohibits conversion or demolition of existing residential dwelling units occupied by low- or moderate-income persons or families unless provision has been made for the replacement in the same city or county of those dwelling units with units for persons and families of low- or moderate-income (excludes structures with less than 3 units, or less than 10 units for projects with more than one structure, among other exclusions).

Section 65590(d) further requires new housing development in the coastal zone to provide housing units for persons and families of low or moderate income, or if not feasible, to provide such units at another location within the same city or county, within the coastal zone or within three miles thereof. family infill homes have been built but no residential units have been demolished or converted within the Coastal Zone since City incorporation in 1989.

H. 2021-2029 Housing Needs

1. Overview of the Regional Housing Needs Assessment
The Regional Housing Needs Assessment (RHNA) is a key tool for local governments to plan for anticipated growth. The RHNA quantifies the anticipated need for housing during the period from July 2021 to October 2029. Communities then determine how they will address this need through the process of updating the Housing Element of their General Plans.

The current RHNA was adopted by the Southern California Association of Governments (SCAG) in March 2021. The future need for new housing was determined by the forecasted growth in households in a community as well as existing needs due to overpayment and overcrowding. The housing need was adjusted to maintain a desirable level of vacancy to promote housing choice and mobility and to account for units expected to be lost due to demolition, natural disaster, or conversion to non-housing uses. Total housing need was then distributed among four income categories on the basis of the current household income distribution.

After the total housing need was determined for the SCAG region, RHNA allocations to individual jurisdictions were developed by SCAG based on factors established in State law. The distribution of housing need by income category for each jurisdiction was adjusted to avoid an over-concentration of lower-income households in any community.

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THE CITY OF LAGUNA NIGUEL HOUSING

2. 2021-2029 Laguna Niguel Housing Needs
The total additional housing need for the City of Laguna Niguel during the 2021-2029 planning period is 1,207 units. This total is distributed by income category as shown in Table II-25.

Table II-25
021-2029 Regional Housing Needs -
aguna Nigue
Very Low* Low Moderate Above Mod
202
*50% of the Very-Low-Income need (174 units) is assumed to be ELI units Source: SCAG 2021
It should be noted that the extremely-low-income category is included within the very-low-income category in the adopted RHNA. As provided in Assembly Bill (AB) 2634 of 2006, jurisdictions may determine their extremely-low-income need as one-half the need in the very-low category. A discussion of how the City will accommodate this need is provided in Chapter III, Resources and Opportunities.

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III. RESOURCES AND OPPORTUNITIES
A variety of resources are available for the development, rehabilitation, and preservation of housing in the City of Laguna Niguel. This chapter provides a description of the land resources and adequate sites to address the City's regional housing need allocation for the 2021-2029 period as identified by the Southern California Association of Governments (see Table II-25). This chapter also describes the financial and administrative resources available to support the provision of affordable housing. Additionally, the chapter discusses opportunities for energy conservation that can lower utility costs and increase housing affordability.

A. Land Resources
Section 65583(a)(3) of the Government Code requires Housing Elements to contain an "inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites." A detailed inventory of residential development sites is provided in Appendix B. The results of this analysis are summarized in Table III-1 below. The table shows that the City's land inventory for potential residential development is sufficient to accommodate the RHNA in all income categories for this planning period.

Table III-1
Land Inventory Summary -
Laguna Niguel
Income Category Totals
Potential Housing Sites Moderate | Above-Mod
Very-Low Low
Approved projects (Table B-3) 12- 12 258917 270929
Vacant sites (Table B-4) 80110 80110 8033 5364 293317
Underutilized sites (Table B-5) 261254 114117 186182 600567 1,1611.120 Potential ADUs 1012 2024 1520 58 5064
Totals 351388 226251 281235 9161.556 1,7742.430
RHNA (2021-2029) 348 202 223 434 1,207
Adequate Capacity? Yes Yes Yes Yes Yes
Source: City of Laguna Niguel Community Development Department, December 20224 A discussion of public facilities and infrastructure needed to serve future development is contained in Section IV.B, Non-Governmental Constraints. There are currently no known service limitations that would preclude the level of development described in the RHNA, although developers will be required to pay fees or construct public improvements prior to or concurrent with development. Additionally, while some of the identified sites may have environmental constraints such as steep slopes or geotechnical issues, the level of development described in the sites inventory reflects anticipated development yield given feasible methods for addressing such constraints.

B. Financial and Administrative Resources

1. State and Federal Resources
Community Development Block Grant Program (CDBG) - Federal funding for housing programs is available through the Department of Housing and Urban Development (HUD). The City's use of federal unds is described in the 2020-2024 Consolidated Plan. As an Entitlement City, Laguna Niguel participates in the Community Development Block Grant (CDBG) program. CDBG funds are used by the City to fund a variety of community services available to assist low- and moderate-income City residents and those with special housing needs.

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Recent CDBG allocations for the 2020-24 program years are expected to be approximately $360,000 per year. These funds will be used for capital improvements, public services, economic development and administrative activities. The City does not currently participate in other HUD programs such as HOME, Emergency Shelter Grant (ESG), or Housing Opportunities for Persons with AIDS (HOPWA).

Housing Choice Rental Assistance - The City of Laguna Niguel cooperates with the Orange County Housing Authority (OCHA), which administers the Housing Choice Voucher Program. The Housing Assistance Payments Program assists low income, elderly and disabled households by paying the difference between 30% of an eligible household's income and the actual cost of renting a unit. According to the Orange County Housing Authority, during 2020-2021 approximately 89 very low-income renter-households with rental assistance - 17 families, 12 disabled, and 60 elderly households. A very low-income household has income equal to or less than 50 percent of the County median income.

The City facilitates use of the Housing Choice Voucher program within its jurisdiction by advertising the availability of program when the County accepts new applications.

Low-Income Housing Tax Credit Program - The Low-Income Housing Tax Credit Program was created by the Tax Reform Act of 1986 to provide an alternate method of funding low-and moderate-income housing.

Each state receives a tax credit, based upon population, toward funding housing that meets program guidelines. The tax credits are then used to leverage private capital into new construction or acquisition and rehabilitation of affordable housing. Limitations on projects funded under the Tax Credit programs include minimum requirements that a certain percentage of units remain rent-restricted, based upon median income, for a term of 15 years.

2. Local Resources
Non-Profit Corporations - The City actively supports local non-profit groups to facilitate the development and improvement of both senior citizen and low-cost housing in Laguna Niguel. Such support includes assistance locating and acquiring financing, and coordinating discussions between property owner, non-profit developer, and various governmental agencies.

C. Energy Conservation Opportunities
There are many opportunities for conserving energy in new and existing homes. Construction of energy- efficient buildings does not lower the price of housing. However, housing with energy conservation features should result in reduced monthly occupancy costs as consumption of fuel and energy is decreased. Similarly, energy systems, and building design and orientation that incorporates energy-conservation considerations.

The City enforces all provisions of Title 24 of the California Adminstrative Code, which provides for energy conservation features in new residential construction.

Many modern design methods used to reduce residential energy consumption are based on proven techniques that have been known to humans since the earliest days of collective settlement. These methods can be categorized in three ways:

1. Building design that keeps natural heat in during the winter and keeps natural heat out during the summer. Such design reduces air conditioning and heating demands. Proven building techniques in this category include:
• Location of windows and openings in relation to the path of the sun to minimize solar gain in the summer and maximize solar gain in the winter;
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Use of thermal mass, earthen materials such as stone, brick, concrete, and tiles that absorb heat during the day and release heat at night;
Burying part of the home in a hillside or berm to reduce solar exposure or to insulate the home against extremes of temperature;
Use of window coverings, insulation, and other materials to reduce heat exchange between the interior of a home and the exterior;
• Location of openings and the use of ventilating devices that take advantage of natural air flow (particularly cool evening breezes); and
Use of eaves and overhangs that block direct solar gain through window openings during the summer but allow solar gain during the winter.

2. Building orientation that uses natural forces to maintain a comfortable interior temperature.

Examples include:

North-south orientation of the long axis of a dwelling; •
Minimizing the southern and western exposure of exterior surfaces; and • Location of dwellings to take advantage of natural air circulation and evening breezes.

3. Use of landscaping features to moderate interior temperatures. Such techniques include:

Use of deciduous shade trees and other plants to protect the home; • Use of natural or artificial flowing water; and
Use of trees and hedges as windbreaks.

In addition to natural techniques that have been used for millennia, a number of modern methods of energy conservation have been developed or advanced during the present century. These include:
• Use of solar energy to heat water;
Use of solar panels and other devices to generate electricity; Window glazing to repel summer heat and trap winter warmth; Weather-stripping and other insulating devices to reduce heat gain and loss; and Use of energy efficient home appliances.
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IV. CONSTRAINTS
In planning for the provision of housing, constraints to the development, maintenance and improvement of housing must be recognized, and jurisdictions must take appropriate steps to mitigate them where feasible.

Local government cannot control many of these constraints, such as those related to general economic and market conditions, but others can be addressed. Potential constraints to housing are discussed below, and include governmental constraints and non-governmental constraints.

A. Governmental Constraints
Governmental regulations, while intentionally controlling the quality of development in the community, can also unintentionally increase the cost of development and thus the cost of housing. These governmental constraints include land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local development processing and permit procedures.

Land use controls may limit the amount or density of development, thus increasing the cost per unit. On-site and off-site improvements such as roads, traffic signals on adjacent streets, or sewer systems may increase development costs. Processing and permit requirements may delay construction, increasing financing and/or overhead costs of a development. The following describes potential governmental constraints, which may affect the supply and cost of housing in Laguna Niguel.

1. Land Use Plans and Regulations
a. General Plan
Each city and county in California must prepare a comprehensive, long-term General Plan to guide its future.

The Land Use Element of the General Plan establishes the basic type and density of development within the various areas of the city. Under State law, the various General Plan elements must be internally consistent and the City's zoning must be consistent with the General Plan. Thus, the land use plan must provide suitable locations and densities to implement the policies of the Housing Element.

The Laguna Niguel General Plan Land Use Element provides for two residential land use designations, as shown in Table IV-1.

Table IV-1
Residential Land Use Categories -
Laguna Niguel General Plan
Maximum
Designation Density* Description
Residential Detached n/a Designated area characterized by one single-family dwelling constructed on each individual subdivided lot or legal building site
Residential Attached n/a Designated area characterized by attached dwelling units constructed on individual or common lots--including townhomes, apartments and condominium projects.

Source: City of Laguna Niguel General Plan
he Laguna Niguel General Plan does not specify maximum densities in units per acre; however, the maximum buildout is determined ! welling unit allocations assigned to individual community profile areas and sub-profile areas identified in the Land Use Element. Nearly all su profile areas with the exception of the Gateway Specific Plan area have been built out.

The majority of the buildable land area within city boundaries is developed or is designated for parks and open space. The Land Use Element of the Laguna Niguel General Plan designates approximately 3,508 net acres (37%) of the City's total land inventory for residential uses, providing a variety of residential types throughout the City. The maximum residential density permitted in Laguna Niguel is determined by unit 31 February 2023@etober 2021

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allocations assigned to individual community profile areas and sub-profile areas identified in the Land Use Element. Nearly all sub-profile areas (with the exception of the Gateway Specific Plan area have been built- out to the General Plan maximum unit allocations, leaving few opportunities for new housing units. Average developed densities for Laguna Niguel are approximately 5.2 dwelling units per gross acre for the Residential Detached areas and approximately 14.6 dwelling units per gross acre for the Residential Attached areas. b. Planned Communities and Specific Plans
The City of Laguna Niguel is largely composed of master planned communities (PCs) and Specific Plan (SP) areas that were approved by the County of Orange prior to the City's incorporation in 1989. These Planned Communities are the Laguna Niguel PC, the Country Village PC, the Colinas de Capistrano PC, the Beacon Hill PC, the Bear Brand Hill PC, the Bear Brand PC, and the Narland Business Center PC. Each of the Planned Communities is implemented through Feature Plans, Area Plans, and Site Plans. Prior to incorporation, the Planned Community development plans provided policy guidance and regulatory control over development in Laguna Niguel. Today, the Planned Communities are subject to the policies and regulations of the Laguna Niguel General Plan and the Zoning Ordinance. Portions of the City are located in the South Laguna Specific Plan area and are subject to the land use and zoning regulations of that plan.

The most noteworthy opportunity for new development in Laguna Niguel is in the Gateway Specific Plan.

Due to the lack of available undeveloped land or annexation opportunities, other new planned communities within the City are unlikely in the foreseeable future.

Gateway Specific Plan
• Background
The Laguna Niguel Gateway Specific Plan area contains approximately 300 acres along the eastern border of the city. A majority of the existing buildings predate City incorporation and were constructed in the late 1970s and early 1980s. At present, the area contains a mix of office, retail and service commercial, light industrial and auto-related sales and service uses. The Gateway Specific Plan defines the overall vision, goals, policies, land use regulations, development standards, and design guidelines for the Gateway area, and regulates land use and urban form, mobility, infrastructure, streetscape, and architectural design.

With the growth and development of southern Orange County during the past 40 years and the establishment of the Metrolink rail station in the Gateway in 2002, the area presents a significant opportunity for revitalization and transformation into a major mixed-use, transit-oriented activity center.

The City enlisted the Urban Land Institute Orange County District (ULIOC) to bring its expertise in identifying new initiatives that could be brought to bear in stimulating real change in the Gateway Area consistent with the City's visions. In 2006, the ULIOC conducted a Technical Advisory Panel (TAP) workshop consisting of a team of professionals in the land use planning industry to study the site and make recommendations to the City on how best to address its objectives. The ULIOC TAP consisted of high-level land use professionals with backgrounds and experience in transit-oriented development, mixed use/multi- use development, multi-family housing, affordable housing, retail/commercial development, urban planning and design, traffic/transportation, revitalization, real estate law/development agreements, market research and site analysis. The TAP panel presented their findings and recommendations to the City Council concluding that:
• Housing is the key to unlocking the potential of the Gateway District and that initial housing must create a new character and sense of place
There must be a plan for phasing in residential development fronting along Forbes Road and that it will not happen without improvements of the public realm and infrastructure 32 February 2023Oetober 202ł

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Financing options exist for those improvements and the Specific Plan is the vehicle for structuring the entitlements and requirements
The Gateway needs a Champion both in the Council and City government and in the private sector, e.g., an enlightened developer, in order to succeed with the vision to revitalize the area To implement the recommendations presented by the TAP, the City assembled a multi-disciplinary team of urban designers, economists, transportation planners, and engineers to prepare the Specific Plan. The consultant team was charged with building upon the City's previous studies for the Gateway area including the goals and objectives identified by the TAP. The Specific Plan, adopted by the City Council in 2011, is the result of the collaborative planning efforts between the City, the public, land and business owners, and the project team.

Existing development in the Specific Plan area is clustered primarily along the north/south roadways including Camino Capistrano, Cabot Road, and Forbes Road. It is predominately developed with a variety of commercial service, light industrial, auto sales and services, retail, and office uses. Most of the uses are characterized by low-rise, one-story buildings and/or multi-tenant structures such as the business park on Forbes Road north of Crown Valley Parkway. There is a six-story Crown Cabot Financial office building on Cabot Road and a large retail/warehouse (Costco) on Crown Valley Parkway. Auto dealerships are located on Camino Capistrano and Star Drive. There are several one- and two-story buildings located on Forbes Road. Vacant properties within the area are generally located along Cabot Road.

Numerous lots within the Specific Plan area are too narrow and/or shallow to adequately accommodate identified market capture opportunities for new development, particularly with larger retail, office, or business park uses. Because many of the lots along Forbes Road are small and/or shallow in depth, the Specific Plan encourages lot consolidation, and provides incentives for doing so, to support larger buildings and more intensive land uses such as residential mixed-use developments, and retail/entertainment centers.

Two distinct areas form the heart of the Gateway community and offer the best opportunity for high-density residential or mixed-use development in a walkable, pedestrian-oriented environment. These two areas are referred to as the Mixed Use Village, located on Forbes Road north of Crown Valley Parkway, and the Transit-Oriented Mixed-Use Corridor, located on Forbes Road south of the Crown Valley Parkway. Both of these areas are envisioned to transition and become a desirable and attractive mixed-use village containing a mix of multi-family residential, office, and commercial uses. Buildings will be located directly along, and oriented towards the street frontage to foster pedestrian activity along the sidewalks, Oso Creek pedestrian greenway, and internal streets.

Gateway Land Use Policies, Regulations and Development Standards The Gateway Specific Plan includes the following policies intended to facilitate compact, transit-oriented development that includes opportunities for high-density workforce housing:

3.2.1 Transit-Oriented Development. Accommodate the development of a mix and density of land uses that benefit from the presence and support of transit use in the Gateway area.

3.2.2 Land Use Mix and Balance. Promote the development of a diverse mix of uses within distinct neighborhoods and districts containing housing, general and medical ofjices, retail commercial, dining and entertainment, community services, and amenity uses supporting residents, workers, and transit riders.

3.2.3 Housing. Provide for increased densities to encourage the development of housing that accommodates a variety of persons and households who choose to live in an active, urban environment.

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3.2.8 Parcel Assembly. Provide for increased densities for the assembly of adjoining parcels as incentives for the development of larger scale, cohesive mixed-use development projects.

3.2.9 Development Density. Promote development that creates a high-density urban community, concentrating residents and jobs in proximity to the Metrolink station.

The Mixed-Use Village and the Transit-Oriented Mixed-Use Corridor districts offer the best opportunities for high-density residential and mixed-use development in a pedestrian-oriented environment (see Appendix B, Figure B-2). At buildout, the Gateway Specific Plan envisions a total of 2,994 high-density housing units and over 2 million square feet of commercial development (see Table IV-2).

Table IV-2
Land Use Development Capacity -
Gateway Specific Plan
Retail Automobile
Planning Residential Commercial Office Business Park Hotel Sales District (dwelling units) (square feet) (square feet) (square feet) (rooms) (acres) A 76,480
B 323,215
C 220 0 305,460 0 •
D 200 0 187,639 0 200°
E 1,427 87,338 203,425 0
F 142 173,900 *
G 142 247,639
863 76,012 240,103 */+**
*** 3.5
62,509 30,492
IC -I! 14.3
0 58,150 0 150**
Totals 2,994 534,648 1,141,090 399,695 350 17.8
Source: City of Laguna Niguel, 2022
A hotel with a maximum of 200 rooms may be located in planning districts C, D, E, G, or H. * A total of 150 motel/hotel rooms may be located within planning district K. *** Up to a total of 1,200 parking spaces to serve the Metrolink station may be provided in areas H&! Mixed-Use (MU) Zone
The MU zone within the Gateway Specific Plan is intended to encourage development of an active urban environment that exhibits the character of distinct and a vibrant pedestrian friendly village and transit corridor where residents live, work, dine, are entertained, and recreate, with easy access to Metrolink transit. It allows for the intermixing of a diversity of land uses that will be unified by their urban form and relationship to street frontages and adjoining parcels. While more than one use may be located on any block within the zone, all buildings shall be placed on their lot, oriented to the street frontage, and designed to convey an urban character. Densities are maximized to reflect intentions for these areas to function as the symbolic and activity cores of the Gateway area.

Allowable uses. Any property in the MU zone may be developed exclusively for office, multi-family residential, or hotel uses, or a mix of these with retail commercial integrated either vertically or horizontally on a single site. Stand-alone multi-family projects are permitted uses while mixed-use projects are subject to approval of a Use Permit by the Planning Commission.

Development standards. The height limit in the MU zone ranges from 80 to 120 feet depending on district. Sites developed for office uses must adhere to Floor Area Ratio requirements between 0.5 and

1.0 depending on lot size. Sites developed with residential must be developed at densities between 40 and 50 dwelling units per acre and may be increased up to 120 dwelling units per acre as incentive for February 2023Oetober 2021 34

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providing important community benefits such as affordable housing, community facilities, and open space amenities and infrastructure to further the implementation of the Gateway area. Mixed-use projects may be built to a minimum FAR of 1.5 and maximum of 2.0. Densities may be increased to a maximum of 3.0 FAR as an incentive for the provision of community benefits such as affordable housing. The residential portion of mixed-use projects must be a minimum of 1.15 FAR and 40 dwelling units per acre.

Approval procedures. Residential projects conforming to the applicable development standards are permitted subject to approval of a Site Development Permit by the Community Development Director or Planning Commission, while mixed-use projects require approval of a Use Permit by the Planning Commission (see also the discussion under Development Processing Procedures in Section IV.A.2, page 42 below).

Incentives for High-Density Residential Development
The development regulations in the Gateway Specific Plan encourage and facilitate the development of affordable workforce housing by providing strong incentives to developers. The regulations provide incentives by allowing increased density when public benefits such as affordable units are included in a project. The minimum residential density is 40 dwelling units per acre, significantly higher than the "default density" for lower-income housing specified in State law. In order to achieve maximum utilization of sites within the Mixed Use zone, a residential component must be included in the project. An FAR increase of MU zone. When combined with other development incentives described in the City's housing programs (see Chapter V) these regulations provide significant financial incentives for developers of multi-family housing that support the development assumptions contained in the Sites Inventory (Appendix B).

C. Conventional Residential Zoning Designations
The City regulates the type, location, density, and scale of residential development through the Zoning Ordinance and Zoning Map. Zoning regulations serve to implement the General Plan and are designed to protect and promote the health, safety, and general welfare of residents. The Zoning Ordinance also helps to preserve the character and integrity of existing neighborhoods. In addition to the specific plans and mixed use zone discussed above, the Zoning Ordinance and Zoning Map set forth residential development standards for the following residential zoning districts.

The seven zoning districts (other than planned communities and specific plans) that allow residential units as a permitted use are as follows:

RS-1 Rural Residential District
RS-2 Residential Estate District
RS-3 Single Family District 3
RS-4 Single Family District 4
RP Planned Residential District
RA Attached Residential District
RM Multi-Family District
A summary of the development standards for the seven major zoning districts (excluding specific plans) permitting residential development is provided in Table IV-3. These development standards are reasonably necessary to protect the public health, safety, and welfare and maintain the quality of life, and are not considered to be constraints to the development of housing.

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Table IV-3
Residential Development Standards
Zoning District Designations
Development Standard RS-1 RS-2 RS-3 RS-4 RP RA RM
Maximum Density (b) (b) (b) (b) (b) (b) (b)
Minimum Lot Area (sq. ft.) 4 ac. 8,000 3,000 3,000 (a) 2,000 n/a Minimum Front Yard (ft.) 20 17 (a) 17 n/a
Minimum Side Yard (ft.)3 8 5 (a) 0/5' n/a
Minimum Rear Yard (f.) 25 25 152 102 (a) 102 n/a
Slope Setbacks 10 10 10 10 10 10 10
(min. from tops and toes of slopes over 10 feet high)
Perimeter Setbacks n/a n/a 10/25 n/a 10/25
n/a n/a
(10 foot minimum and 25-foot average minimum)
Maximum Lot Coverage (%) n/a n/a n/a n/a n/a n/a n/a
Maximum Building Height (ft.) 35 35 35 35 35 35
Source: Laguna Niguel Zoning Ordinance
Notes:
(a) RP standards are contained in approved precise plans for each project.

No maximum density. Maximum dwelling units established by General Plan Land Use Element.

1. O feet on attached side and 5 feet on open side.

2. 20 feet where rear yard abuts a street.

3. 10 feet adjacent to streets.

There are no maximum densities established in the Zoning Ordinance. The allowable number of residential units on any parcel is controlled by the dwelling unit allocations set forth in the Land Use Element of the General Plan. As most of the City (with the exception of the Gateway area) is nearly built-out, these residential allocations have been fully utilized. For this reason, efforts to provide new affordable housing opportunities in the community must focus on the remaining infill and revitalization sites that are suitable for higher-density residential or mixed-use development.

While major residential projects are excluded, some types of special needs housing are allowed in the Neighborhood Commercial District (CN), the Community Commercial District (CC), the Office Commercial District (CO), the Business Park District (BP) and the Public Institutional District (PI), typically through use permits. Managed care facilities are permitted in the CN, CC, and PI Districts when combined with the Managed Care Overlay District and a use permit has been obtained.

A summary of the residential uses permitted by the City's Zoning Ordinance is provided in Table IV-4.

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Table IV-4
Permitted Residential Uses by Zoning District
Housing Type Permitted | RS-1 | RS-2| RS-3 RS-4 RP RA RM CN CC CO BP PI Residential Uses
Single-Family Detached P P P P
Two Unit - Attached P
Multi-Family (townhomes) P
Multi-Family (apartments or P
condominiums)
Manufactured Housing P
P P
Mobile Home!
Second Units A A A A
Special Needs Housing
Transitional & Supportive Housing P P P P P

P P P P P
Emergency Shelters
Residential Care Facilities P P P P P P P
(6 or fewer persons)
Managed Care Facilities U2 U2 U2 U2
(7 or more persons)
U
Single Room Occupancy
Source: Laguna Niguel Zoning Ordinance P = Permitted (ministerial) A = Accessory Use (ministerial) U = Use Permit Notes.

1. Mobile home parks are not specifically identified in zoning ordinance. However, mobile home units are permitted in the districts shown.

2. Allowed when combined with the Managed Care Overlay District (MC The Zoning Ordinance provides for a variety of housing types including single-family homes (both attached and detached), multi-family apartments, manufactured housing, mobile homes and accessory dwelling units (ADUs).
d. Zoning for Affordable Housing and Special Needs Housing Persons with special needs include those in residential care facilities, persons with disabilities, the elderly, farm workers, persons needing emergency shelter or transitional living arrangements, and single-room occupancy units. The City's provisions for these housing types are discussed below.

Housing for Lower-Income Persons
Pursuant to State law, the "default density" for most Orange County jurisdictions, including Laguna Niguel, is 30 dwelling units per acre. The default density refers to the density at which lower-income housing development is presumed to be feasible, although State law allows jurisdictions to propose alternative densities that are sufficient to facilitate affordable housing based on local experience and circumstances.

As noted in the previous discussion of Planned Communities and Specific Plans, the Gateway Specific Plan represents the city's most significant opportunity for new affordable housing. The Gateway plan allows multi- family and mixed-use development at densities ranging from 40 to 120 units per acre, in close proximity to both a Metrolink/ Amtrak station and bus transit. Since allowable densities are significantly higher than the default density, the Gateway Specific Plan land use regulations encourage and facilitate housing that is affordable to lower-income households.

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Senior Housing, Residential Care and Managed Care Facilities Age-restricted senior housing that does not include services (such as assisted living or medical care) is permitted as a residential use subject to the same standards and procedures as other non-age-restricted residential uses of the same type in the same zone.

Residential Care and Managed Care Facilities generally refer to any family home, group home, or rehabilitation facility that provides non-medical care to persons in need of personal services, protection, supervision, assistance, guidance, or training essential for daily living. The Laguna Niguel Zoning Ordinance defines residential care facilities as "a residential facility which is licensed by the state to provide living and treatment facilities on a monthly or longer basis for six or fewer of the following: wards of the juvenile court, elderly persons, mentally disordered persons, developmentally disabled persons, persons undergoing treatment for alcohol or drug abuse, handicapped persons, or dependent and neglected children." The Zoning Ordinance defines managed care facilities as "assisted living facilities, convalescent hospitals, and residential care facilities for the elderly, which serve seven or more persons." In accordance with State law, residential care facilities that serve six or fewer persons are permitted by-right in all residential districts. Managed care facilities that serve seven or more persons are permitted by use permit in the RM, CN, CC, and PI Districts when combined with the Managed Care Overlay District (MC).

Managed care facilities must meet the requirements of the MC Overlay District as set forth in §9-1-54.2 of the City of Laguna Niguel Zoning Code. Program 2 in the Housing Plan includes actions to reduce potential constraints and improve development certainty and objectivity for large residential care facilities in compliance with fair housing law. These requirements are consistent with State law and de not pese a significant constraint on the establishment of such facilities.

Housing for Persons with Disabilities
Both the federal Fair Housing Act and the California Fair Employment and Housing Act impose an affirmative duty on local governments to make reasonable accommodations (i.e., modifications or exceptions) in their zoning laws and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. The Building Codes adopted by the City of Laguna Niguel incorporate accessibility standards contained in Title 24 of the California Administrative Code. For example, apartment complexes of three or more units and condominium complexes of four or more units must be designed to accessibility standards.

The City uses the Minor Adjustment permit process to review and approve requests for modifications to planning or building code requirements in order to provide reasonable accommodation for persons with disabilities.

Other potential constraints on housing for persons with disabilities include the following:

Definition of "Family"
The term family is not defined in the Zoning Code. Occupancy is addressed through the following definitions:

Dwelling unit means one or more rooms, including a bathroom and kitchen, designed and used for occupancy by a single housekeeping unit for living and sleeping purposes.

Single housekeeping unit means that the occupants of a dwelling unit have established ties and familiarity with each other, jointly use common areas, interact with each other, share meals, household activities, and expenses and responsibilities; membership in the single housekeeping unit is fairly stable as opposed to transient, members have some control over 38 February 2023Oetober 2021

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operating as a single housekeeping unit include but are not limited to: the occupants do not share a lease agreement or ownership of the property; members of the household have separate, private entrances from other members; members of the household have locks on their bedroom doors; members of the household have separate food storage facilities, such as separate refrigerators.

These definitions are consistent with current law.

Separation Requirements
There is no City requirement for minimum separation distance between group homes or care facilities other than as may be provided in state law.

Parking Standards
The required number of parking spaces for large group homes (7 or more residents) is determined through a project-specific parking analysis as part of the use permit process.

Supportive Services
There are no limitations on supportive services in group homes or care facilities.

Compliance with building codes and the ADA may increase the cost of housing production and can also impact the viability of rehabilitation of older properties required to be brought up to current code standards.

However, these regulations provide minimum standards that must be complied with in order to ensure the development of safe and accessible housing.

Farm Worker Housing
As discussed in Chapter 2 (Needs Assessment), the City of Laguna Niguel does not have major agricultural areas and has no significant need for permanent on-site farm worker housing. The City's overall efforts to provide and maintain affordable housing opportunities will help to support the few farm workers that may wish to reside in the city.

Emergency Shelters and Low Barrier Navigation Centers
Emergency shelters are facilities that provide a safe alternative to the streets either in a shelter facility or through the use of motel vouchers. Emergency shelter is short-term, usually for 30 days or less.

State law requires jurisdictions to evaluate their need for emergency shelters compared to available facilities to address the need. If existing emergency shelter facilities are not sufficient to address needs, jurisdictions must designate at least one location where a year-round shelter can be accommodated. There are currently no emergency shelters located in Laguna Niguel. The Municipal Code allows emergency shelters as a permitted use by-right in the CN, CC, CO, BP and PI zones in conformance with State law. AB 139(2019) adopted the Emergency and Transitional Housing Act of 2019 and revised State law regarding parking standards for emergency shelters. Program 2 in the Housing Plan is included to address this requirement.

In 2019 the State Legislature adopted Government Code § 65660 (AB 101) establishing requirements related to local regulation of low barrier navigation centers, which are defined as "Housing first, low-barrier, service- enriched shelters focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing." Low Barrier means best practices to reduce barriers to entry, and may include, but is not limited to:
(1) | The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth
(2) Accommodation of residents' pets
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(3) The storage of possessions
(4) Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms
Low barrier navigation centers meeting specified standards must be allowed by-right in areas zoned for mixed use and in nonresidential zones permitting multi-family uses. Current City regulations comply with this requirement.

Transitional and Supportive Housing
Transitional housing typically provides shelter for up to two years and may require residents to participate in a structured program to work toward established goals so that they can move on to permanent housing Supportive housing may have no time limit and residents are typically provided with an array of supportive services to assist them in their daily lives.

State law requires that transitional and supportive housing be treated as a residential use subject only to the same requirements for other residential uses of the same type in the same zone. The City allows transitional and supportive housing consistent with State law. In 2018 AB 2162 amended State law to require that supportive housing be a use by-right in zones where multi-family and mixed uses are permitted, including non-residential zones permitting multi-family uses, if the proposed housing development meets specified criteria. The City's current regulations comply with this law.

Single Room Occupancy
Single room occupancy facilities are small studio-type units and are allowed subject to a use permit in the PI District, provided the units conform to the requirements set forth in §9-1-45.25 (Single Room Occupancy Hotels) of the City of Laguna Niguel Zoning Code. The development standards for these uses are reasonable to assure minimum amenities and adequate levels of safety and are not considered to be a constraint to the development of SRO units.
e. Off-Street Parking Requirements
The City's parking requirements for residential uses vary by residential type. Single-family dwellings require 2 covered parking spaces per unit. Multi-family dwellings require 1.5 parking spaces for studio and 1-bedroom units, 2 spaces for 2-bedroom units, and 2.5 spaces for 3-bedroom or larger units. The parking requirements are summarized in Table IV-5, below.

The required parking is typical for most cities in Orange County and is not considered to be a constraint on the production of affordable housing. This is especially true for Laguna Niguel, which is essentially built-out with all of the required parking in place. The Planning Commission has the ability to grant reduced parking for senior housing and other affordable housing projects through the site development permit process. It is widely accepted that senior and lower-income households have fewer cars on average than higher-income households.
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Table IV-5
Residential Parking Requirements
Type of Unit Minimum Parking Space Required
Single Family Dwellings 2.0 enclosed parking spaces per dwelling + 1.0 additional off-street parking space for dwellings set back less than 20 feet from back of curb or sidewalk (whichever is less).

Two or More Dwelings on One Building Site
Studio and One-Bedroom Units 1.5 off-street parking space per dwelling unit One space shall be covered for each dwelling unit.

Two-Bedroom Units 2.0 off-street parking spaces per dwelling unit At least one space shall be covered for each dwelling unit.

Three or More Bedroom Units 2.5 off-street parking spaces per dwelling unit + 0.5 off-street parking space tor each Two spaces shall be covered for each dwelling unit.

Guest Parking (all unit types) 0.5 guest parking spaces per dwelling unit located within 100 feet of dwelling unit served.

Senior Housing Standards are same as for non-senior projects. However, alternative standards are allowed through the site development permit process.

Guest Houses One additional covered or uncovered space.

Source: Laguna Niguel Zoning Ordinance
f. Accessory Dwelling Units
Accessory dwelling units (ADUs) provide an important source of affordable housing for seniors, young adults, care-givers and other low- and moderate-income segments of the population. In recent years, the State Legislature has adopted extensive changes to ADU law to encourage production of this type of housing.

Among the most significant changes is the requirement for cities to allow one ADU plus one "junior ADU" on single-family residential lots by-right subject to limited development standards. Program 3 in Section V includes a commitment to update the City's ADU regulations in conformance with current State law. g. Density Bonus
Under Government Code §65915 et seg. a density increase over the otherwise maximum allowable residential density under the Municipal Code is available to developers who agree to construct housing developments with units affordable to low- or moderate-income households or senior citizen housing development. AB 2345 of 2019 amended State law to revise density bonus incentives that are available for affordable housing developments. The Zoning Code incorporates State density bonus law by reference. h. Mobile Homes/Manufactured Housing
There is often an economy of scale in manufacturing homes in a factory rather than on site, thereby reducing cost. State law precludes local governments from prohibiting the installation of mobile homes on permanent foundations on single-family lots (Government Code §65852.3). It also declares a mobile home park to be a permitted land use on any land planned and zoned for residential use, and prohibits requiring the average density in a new mobile home park to be less than that permitted by the Municipal Code (Government Code §65852.7).

In the City of Laguna Niguel, manufactured housing and mobile homes are allowed in the RS-1, RS-2, RS-3, and RS-4 Districts as a permitted use. The City currently has no mobile home parks.

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Condominium Conversions
To provide standards for regulating the conversion of rental housing to condominiums, some of which provides housing for low- and moderate-income persons, and to mitigate any hardship to tenants caused by their displacement, the City's Municipal Code provides for the following:

1. Application for a use permit and approval of tentative and final subdivision maps.

2. Submission of an engineering report on the general condition of all structural, electrical, plumbing, and mechanical elements of the existing development.

3. Submission of a housing program which includes:

The means by which the provision of housing affordable to lower- and moderate-income households will be achieved;
• A housing report addressing housing affordability within the General Plan community profile area, including vacancy rates and other available housing of similar type and rent; A survey of existing tenants as to their length of occupancy, and the number of those who •
express the intention of purchasing one of the units;
A relocation plan that identifies the steps that will be taken to ensure the successful relocation of each tenant if the conversion is completed.

When a condo conversion is permitted, the increase in the supply of less expensive for-sale units helps to compensate for the loss of rental units. The ordinance to regulate condominium conversions is reasonable to preserve rental housing opportunities, and does not present an unreasonable constraint on the production of ownership housing.

Inclusionary Requirements
There are no inclusionary requirements in Laguna Niguel.

Short-Term Rental Regulations
The City prohibits short-term (less than 30 days) rental of residential units.

1. Building Codes
State law prohibits the imposition of building standards that are not necessitated by local geographic, climatic or topographic conditions and requires that local governments making changes or modifications in building standards must report such changes to the Department of Housing and Community Development and file an expressed finding that the change is needed.

The City's building codes are based upon the California Building, Plumbing, Fire, Mechanical, Electrical, and Energy Codes. These are considered to be the minimum necessary to protect the public's health, safety and welfare. No additional regulations have been imposed by the City that would unnecessarily add to housing costs.

2. Development Processing Procedures
a. Residential Permit Processing
State Planning and Zoning Law provides permit processing requirements for residential development. Within the framework of state requirements, the City has structured its development review process in order to minimize the time required to obtain permits while ensuring that projects receive careful review. 42 February 20230etober 2021

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All residential development is reviewed by City staff for zoning, building and fire code compliance prior to issuance of building permits. With the exception of single-family homes on existing lots, a site development permit must be approved by the Community Development Director or the Planning Commission for all new structures or significant alterations to the exterior of existing structures. Zoning Code Section 9.1.114.1(d)(1) provides for the Community Development Director to determine, on a case-by-case basis, whether the public interest would be better served by review of the permit by the Director or by the Planning Commission and whether a public hearing is required. However, the time required for project approval is often not so much a factor of the approval (e.g., Director versus Planning Commission), but the complexity of the project and associated environmental review. Site development permits for small infill projects that can be approved administratively are generally less complex and take a shorter time to obtain appropriate approvals. Site development permits for larger and more complex projects like mixed-use development or for projects with subdivision maps subject to the California Environmental Quality Act (CEQA) require a public hearing before the Planning Commission. Furthermore, if the land use regulations allow a site development permit to modify the site development standards to be less restrictive than otherwise stated in the enabling ordinance. such a site development shall always require a public hearing before the Planning Commission. Conversely. if the site development permit application meets all the site development requirements, then a public hearing would not be required.

Whether considered by the Director or the Planning Commission, the required findings for approval of a Site Development Permit are as follows:

1. Consistency with general plan. The project is consistent with the general plan.

2. Consistency with zoning code. The project is consistent with the provisions of this zoning code.

3. Compliance with CEQA. Processing and approval of the permit application are in compliance with the requirements of the California Environmental Quality Act.

4. Consistency with design standards. The project is consistent with the goal and objectives of the community design standards as set forth in section 9-1-91.2. 5 Surrounding uses. Approval of the application will not create conditions materially detrimental to the public health, safety and general welfare or injurious to or incompatible with other properties or land uses in the vicinity.

Processing times vary and depend on the size and complexity of the project. Projects reviewed by the Community Development Director, including site development permits, minor adjustments, and minor use permits, typically require between 2 to 9 months to process. Projects reviewed by the Planning Commission, including site development permits, use permits, tentative parcels maps, and tentative tract maps, typically require from 3 to 9 months to process. Projects reviewed by the City Council, such as General Plan and Zoning Code amendments, typically require between 6 and 12 months to process.

Processing times for the issuance of grading and building permits also vary and depend on the size of the complexity of the project. For the large multi-family residential projects identified in Table B-2, the length of time between application and issuance of building permits ranged from 5 months to 23 months. The South Forbes Apartment projects submitted an application for building permits the same month it received its entitlement approval from the Planning Commission. However, the remainder of the project developers identified in Table B-2 took approximately one year from the entitlement approval date to when they submitted their building permit application.

The greatest potential for new multi-family housing development in Laguna Niguel is within the Gateway Specific Plan (see also the previous discussion in Section IV.A.l.b, page 32 above). The Gateway Plan includes detailed development standards and design guidelines that provide developers with clear direction regarding the type of development that the City seeks to encourage in this area. As a result, the specific plan simplifies the project design and review process thereby increasing development certainty and minimizing delays and overall development costs. The review and approval process, whether conducted by the Director 43 February 2023October 2021

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or by the Planning Commission, focuses on confirming that the project is consistent with the objective physical design parameters contained in the specific plan rather than on the appropriateness of multi-family residential uses. The regulations also encourage affordable multi-family housing by allowing increased density when deed-restricted affordable units or other public benefits are provided Certain steps of the development process are required by state laws rather than local laws. The state has defined processing deadlines to limit the amount of time needed for review of required reports and projects.

In an effort to provide an efficient permit processing system, the City has implemented the following time and cost saving developmental processes:
• Prepared permit processing guidelines to assist residential builders in applying for development permits for single-family residences, multifamily residential developments and subdivisions.

Located all City divisions involved in the permitting process in one central location. • Encourages "early consultation" pre-application meetings to identify issues as soon as possible and reduce processing time.
• Encourage concurrent processing of applications
These processes help to ensure that the development review process does not act as a constraint to housing development.

Programs 1 and 3 in the Housing Plan describe actions the City will take to improve transparency and certainty in the development review process, including ministerial streamlined review for all qualifying projects pursuant to Government Code §65913.4 (SB 35) and §65583.2(c). b. Environmental Review
Environmental review is required for all development projects under the California Environmental Quality Act (CEQA). An Environmental Impact Report (EIR) is required of all developments that have the potential of creating significant impacts that cannot be mitigated. All of the planned communities that make up the City of Laguna Niguel required the preparation of EIRs. Some residential projects in Laguna Niguel are either Categorically Exempt or require only an Initial Study and Negative Declaration. A Negative Declaration process typically takes 4 to 6 weeks to prepare depending on complexity of the project and required technical studies, followed by a state-mandated public review period. Categorically Exempt developments require a minimal amount of time. As a result, state-mandated environmental review does not pose a significant constraint to housing development.

C. California Coastal Act
The California Coastal Act requires each local government lying wholly or partly within the state-designated Coastal Zone to prepare a Local Coastal Program (LCP). The City's LCP is comprised of portions of the South Laguna Specific Plan and the Aliso Creek Specific Plan, both of which were certified by the California Coastal Commission prior to incorporation. After incorporation, the California Coastal Commission certified the Laguna Niguel Local Coastal Program as a single plan. The City is responsible for the issuance of Coastal Development permits in the Coastal Zone.

The developable portions of the City's Coastal Zone are essentially built-out with only a few vacant single- family sites remaining to be developed with custom homes. Most of the housing within the Coastal Zone was built as part of planned communities and does not provide low-income housing opportunities. Therefore, the preservation and/or replacement of low-income housing within the Coastal Zone is not likely to be an issue within the current planning period. (Please refer to Chapter II, Section G for a discussion of construction, demolition and replacement of housing units within the Coastal Zone.) February 2023October 2021 44

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3. Development Fees and Improvement Requirements
State law limits fees charged for development permit processing to the reasonable cost of providing the service for which the fee is charged. Various fees and assessments are charged by the City and other public agencies to cover the costs of processing permit applications and providing services and facilities such as schools, parks and infrastructure. Almost all of these fees are assessed through a pro rata share system, based on the magnitude of the project's impact or on the extent of the benefit that will be derived Table IV-6 provides a list of fees the City of Laguna Niguel charges for new, standard residential development. The rates charged by the City are inclusive and based on standardized unit sizes. Development fees will vary from project to project depending on the specific characteristics.

Table IV-6
Planning and Development Fees
Fee Category Fee or Deposit Amount!
Planning and Application Fees
Parcel Map $2,080 deposit
Tentative Tract Map $2,925 deposit
Minor Site Development Permit (administrative) $2,000 deposit Site Development Permit (discretionary) $4,400 deposit
Minor Use Permit (administrative) $1,600 deposit
Use Permit (discretionary) $3,800 deposit
Specific Plan $5,000 deposit
General Plan Amendment $5,000 deposit
Zone Change $5,000 deposit
Environmental Review
Environmental Impact Report (review)? $5,000 deposit
City Development Impact Fees?
San Joaquin Hills Transportation Corridor $3,524 - $6,050 per unit Moulton Parkway/Laguna Niguel $197 - $625 per unit
CARITS $1,069 - $3,035 per unit
Park Fees $10,684 - $12,435 per unit
Child Care Fee Program $20 per unit
Salt Creek Corridor Fees $50 per unit
Estimated Total Fees
Single-Family Detacheda $22,215
Est. % of total development costs 2%
Multi-Family® $15,544
Est. % of total development cost? 3%
Source: City of Laguna Niguel Community Development Department 2021

1. Items with deposits are based on actual processing costs that may exceed initial deposit amount Applicant is required to reimburse City for Consultant Costs Development Impact Fees may vary by location.

Assumes a 2,000-sg.ft. house on a subdivided lot

5. Based on estimated total cost of $1,000,000
Assumes a 1,000-sq.ft. apartment unit

7. Based on estimated total cost of $500,000
The City periodically evaluates the actual cost of processing development permits. Services that are provided on a cost reimbursement basis have been adjusted from time to time for inflation and are currently $79 per hour. Services that are provided on a "flat fee" basis were established in 1999 and have not been increased since then.

After the passage of Proposition 13 and its limitation on local governments' property tax revenues, cities and counties have faced increasing difficulty in providing public services and facilities to serve their residents.

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One of the main consequences of Proposition 13 has been the shift in funding of new infrastructure from general tax revenues to development impact fees and improvement requirements on land developers. The City requires developers to provide on-site and off-site improvements necessary to serve their projects. Such improvements may include water, sewer and other utility extensions, street construction and traffic control device installations that are reasonably related to the project. Dedication of land or in-lieu fees may also be required of a project for rights-of-way, transit facilities, recreational facilities and school sites, consistent with the Subdivision Map Act.

Although development fees and improvement requirements increase the cost of housing, cities have little choice in establishing such requirements due to the limitations on property taxes and other revenue sources needed to fund public services and improvements.

B. Non-Governmental Constraints

1. Environmental Constraints
Environmental constraints include physical features such as steep slopes, fault zones, floodplains, sensitive biological habitat, and agricultural lands. In many cases, development of these areas is constrained by state and federal laws (e.g., FEMA floodplain regulations, the Clean Water Act and the Endangered Species Act, and the state Fish and Game Code and Alquist-Priolo Act). Because Laguna Niguel is fully developed, these issues do not pose a significant constraint to new development within City limits. The City's land use plans have been designed to protect sensitive areas from development, and to protect public safety by avoiding development in hazardous areas. While these policies constrain residential development to some extent, they are necessary to support other public policies.

2. Infrastructure Constraints
As the City has been developed as a planned community, infrastructure, including water, sewer and sidewalks, are readily available and adequate within the City limits. As discussed under Development Fees and Improvement Requirements, the City requires developers to provide on-site and off-site improvements necessary to serve their projects. Dedication of land or in-lieu fees may also be required of a project for rights-of-way, transit facilities, recreational facilities and school sites, consistent with the Subdivision Map Act.

Additionally, the City's Capital Improvement Program (CIP) contains a schedule of public improvements including streets, bridges, and other public works projects to facilitate the remaining build-out of the City's General Plan. The CIP helps to ensure that construction of public improvements is coordinated with private development. As a result of these policies, any infrastructure constraints which currently exist must be fully mitigated and financed as growth occurs.
a. Sewer and Wastewater
Sewage collection and treatment in Laguna Niguel is provided primarily by the Moulton Niguel Water District (MNWD). A small portion of Laguna Niguel near the southwesterly boundary is served by the South Coast Water District (SCWD). The MNWD has developed a reclaimed water system to deliver treated wastewater to landscaped areas in the City. The MNWD and SCWD currently operate below their maximum treatment capacities and do not constrain development in the City. b. Water
Water for City residents is supplied by the MNWD and the SCWD. The MNWD and the SCWD are members of the Municipal Water District of Orange County (MWDOC), which in turn is a member of the Metropolitan Water District of Southern California (MWD). Almost all of the water supply is purchased from MWD, 46 February 2023October 202ł

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which imports water from the Colorado River Aqueduct (a small portion comes from Northern California through the State Water Project). Domestic water supply is not expected to limit development during the planning period.

C. Storm Water Drainage
Regional flood control facilities consist of major collector channels and storm drains, and are maintained by City. With these facilities in place, the City's flood control system in not expected to limit development during the planning period.
d. Dry Utilities
San Diego Gas and Electric (SDG&E) provides electrical service and Southern California Gas Company (SoCalGas) provides natural gas services to residences and businesses throughout the City of Laguna Niguel.

Infrastructure to deliver electricity and natural gas throughout Laguna Niguel is currently in place. SDG&E and SoCalGas can generally provide these services to newer development on request.

Telecommunications services in Laguna Niguel are provided by a variety of service providers including AT&T and Spectrum. Infrastructure to deliver telecommunications throughout Laguna Niguel is currently in place and can be provided to newer developments upon request.

3. Land Costs
Land represents one of the most significant components of the cost of new housing and can exceed $2 million per acre in southern Orange County. Changes in land prices reflect the cyclical nature of the residential real estate market. The high price of land throughout Orange County historically has posed a significant challenge to the development of lower-income housing. Per-unit land cost is directly affected by density - higher density allows the cost to be spread across more units. While the City is essentially built-out, the Gateway Specific Plan creates the opportunity to achieve higher densities on infill and revitalization sites, which helps to reduce the cost of land on a per-unit basis. Because so little vacant land suitable for residential development is remaining, it is not possible to generalize about typical land cost.

4. Construction Costs
Construction cost is affected by the price of materials, labor, development standards and general market conditions. The City has no influence over materials and labor costs, and the building codes and development standards in Laguna Niguel are not substantially different than most other cities in Orange County.

Construction costs for materials and labor have increased at a higher pace than the general rate of inflation.

Typical construction costs are estimated to be a minimum of $150 per square foot and can be much higher depending on construction type and location.

5. Cost and Availability of Financing
Laguna Niguel is typical of Southern California communities with regard to private sector home financing programs and interest rates. In recent years, mortgage interest rates have been very low by historic standards, resulting in increased affordability for home purchasers with good credit. 47 February 2023Oetober 2021

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6. Requests to Develop at Lower Densities
The Housing Element analysis of nongovernmental constraints required by Government Code §65583(a)(6) must include requests to develop housing at densities below those anticipated in the sites inventory. As discussed in Appendix B. recent multi-family residential development applications have typically exceeded the maximum allowable densities through density bonus and public benefit provisions.

C. Affirmatively Furthering Fair Housing (see Appendix D) The Fair Housing Aet of 1968 requires HUD and its program participants to administer housing and urban development programs in a manner that does not diseriminate directly or indirectly based on race, color, religion, sex, national origin, age, familial status, or disability. The Fair Housing Act not only prohibited discrimination in housing-related activities and transactions but also requires entities to affirmatively further fair heusing. The Analysis of Impediments (AI) to Fair Housing Choice is the primary policy document utilized by HUD grantees for this purpose. HUD eneourages jurisdietions to consult with one another and initiate metropolitan-wide planning to address impediments to fair housing choice.

During past Consolidated Plan cycles, the City developed its own Al; however, for the 2020 2024 Al cycle; Laguna Niguel has joined with other Orange County cities and the County of Orange to develop a countywide AI.

The regional AT evaluates existing demographie data, past fair housing enforeement activity for each partner community, mertgage lender data, and existing housing and land use publie policies. Based on an analysis of this data, and the input of residents, a list of impediments to fair housing choice for the participating jurisdietions have been developed. A correspending set of action steps to address these barriers has also been prepared. The 2020- 2024 Orange County Al is incorporated into the Consolidated Plan as Appendix A.

Under State law, "affirmatively furthering fair housing" means "taking meaningful actions, in addition to combating diserimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restriet aceess to opportunity based on protected characteristies." There-are three parts to this requirement:
+. Inelude a Program that Affirmatively Furthers Fair Housing and Premetes Housing Oppertunities throughout the Community for Protected Classes (applies to heusing elements beginning January 1, 2019).

2. Conduet an Assessment of Fair Housing that includes summary of fair heusing issues, an analysis of available federal, state, and local data and local knowledge to identify, and an assessment of the contributing facters for the fair housing issues.

3. Prepare the Housing Element Land Inventory and Identification of Sites through the Lens of Affirmatively Furthering Fair Housing.

In cempliance with AB 686, the City has completed the following outreach and analysis.

Outreach
As diseussed in Chapter I, the City held a total of 4 publie meetings during the Housing Element update in an effort to include all segments of the community. Each meeting was publicized on the City's website and meeting notices were-also sent to persens and organizations with expertise in affordable housing and supportive services.

Interested parties had the opportunity to interaet with City staff throughout the Housing Element update process and provide direet feedback regarding fair housing issues. - City also created a dedieated web page for the Housing Element update (https://www.eityoflagunaniguel.org/1352/Housing-Element-Update) and provided opportunities for interested persons to participate in publie meetings remotely, which made it possible for those with disabilities limiting their travel to participate and comment on the Housing Element regardless of their ability to attend the meetings.

Assessment of Fair Housing
February 2023October 2021 48

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The follewing analysis examines geographie data regarding racial segregation, poverty, persons with disabilities, and areas of opportunity as identified by the TCAC/HCD Opportunity Areas map:

Racial segregation. As seen in Figure IV-1, the pereentage of non-white population in Laguna Niguel is similar to adjacent areas of Orange County. This map does not indieate any patterns of racial/ethnie concentration in the eity:

Poverty. Reeent Census estimates regarding poverty status of households in Laguna Niguel are shown in Figure IV-2. As seen in this map, there are no concentrations of poverty, and the poverty rate is less than 10% for mest eensus traets in the city while a small area in the nerthern portion of the city has a poverty rate of 10% 20% Persons with disabilities. The ineidence of disabilities is relatively low in Laguna Niguel compared to some areas of Southern California. As shown in Figure IV-3, the pereentage of residents reperting a disability is less than 10% in most areas of the city, while the disability rate is 10% to 20% in some areas. Areas with higher rates of disabilities are likely correlated with higher than average pereentages of seniers.

Access to opportunity. Accerding to the 2020 California Department of Housing and Community Development (HCD) and the California Tax Credit Allocation Committee (TCAC) Opportunity Area Map (Figure IV-4), Laguna Niguel is within the High and Highest Resource areas. High Resource-areas are areas with high index seores for a variety of educational, envirenmental, and economie indieators. Some of the indieaters identified by TCA include high levels of employment and close proximity to jobs, access to effeetive educational opportunities for children and adults, low concentration of poverty, and low levels of environmental pollutants, ameng others.

Conelusion
This analysis shows that the primary barrier to fair housing in Laguna Niguel is high housing cost, which has the effect of limiting access by lower-inceme households to the high opportunities and resources available in the city:

There is no evidence to suggest that diseriminatien against racial groups or persens with disabilities is a major The Housing Plan includes several programs to encourage and facilitate affordable housing development, as well as the provision of accessery dwelling units, which can expand affordable housing opportunities for lower-income persons-such as caregivers, househeld employees, and others working in service ocupations. Program 5 deseribes actions the City will take to affirmatively further fair housing and address any issues of housing diserimination that may arise.
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Figure W-1: Racial Demographies Laguna Niguet
California Department of Housing and Community Development AFFH DATA AND MAPPPING RESOURCES AFFH Data Viewer
City/Town Boundaries
Laguna Niguel, CA, USA
ura Wood
Show search results fo: Laguna .

Laura (IC)
(R) Racial Demographics (2018) - Block Group
Percent of Total Non-White Population
> 81%
231 SOVE:
61 - 80%
Lours Cast Ladoo Rac
Wildewers Park 41 - 60%
Lagan: Nai

21. 40%
≤ 20%
Capito:
:117.616 33.546 Degree:

Figure IV-2: Poverty Status Laguna Niguel
California Department of Housing and Community Development AFFH DATA AND MAPPING RESOURCES HOME AFFH Data Viewer
City/Town Boundaries
Laguna Niguel, CA, USA
Show search results for Laguna
(R) Poverty Status (ACS, 2015 - 2019) - Tract
Percent of Population whose income in the past 12 months is below poverry level > 40%
Bagers Oscoe
ДАДЛ
10% -20%
117.616 33.546 Degrees
February 2023October 2024

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Figure IV-3: Population with a Disability Laguna Niguel AFFH Data Viewer Califoria Department of Housing and Community Development AFFH DATA AND MAPPING RESOURCES HOME City/Town Boundaries
Laguna Niguel, CA, USA Q
Show search results for Laguna
® арені (КЛВ
(R) Population with a Disability (ACS, 2015 - 2019) - Tract Percent of Population with a Disability
> 40%
30% • 40%
20% • 30%
10% - 20%
< 10%
300 ATh

CADEMENS
:117.61633.546 Degree:

Figure IV-4: #CD/TCAC Opportunity Map Laguna Niguel
Zoom to Region Select Resource Category

MISSION MIERO
Rile Vito
Sie Penato
LAGUNA BRACI Legend
Highest Resource
Jaguen Sigu High Resource
Moderale Resource(Rapidly Changing)
Moderale Resource
San Juan Low Resource
Capistrano
High Segregation & Poverty
2021 TCAC/HCD Opportunity Map Missing/Insufficient Data National & Stale Park/ForesU/Rec Area
To learn more about this loot includine the melody, crease visit Calfornia TCAC Opponunity Mappina Homepage
February 2023October 2024 51

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V. HOUSING PLAN
A. Laguna Niguel Housing Element Goals and Policies
Chapters II, III and IV of the Housing Element evaluate the City's housing needs, opportunities and onstraints, while Appendix A presents a review of the previous element. This Housing Plan reflects th City's experience during the previous planning period and sets forth the City's goals, policies, and program to address the identified housing needs and issues for the 2021-2029 planning period. Quantified objectives for new construction, rehabilitation and conservation are also identified for this planning period.

The goals and policies that guide the City's housing programs and activities are as follows:

Housing Diversity and Opportunities
GOAL 1: Provide a diversity of housing opportunities that satisfy the physical, social, and economic needs of existing and future residents of Laguna Niguel.

Intent: To promote a balanced inventory of housing in terms of unit type, cost and tenure and range of housing options necessary to support an economically and socially diverse community.

Adequate public facilities and services are important in maintaining the quality of life valued by Laguna Niguel residents.

Policy 1.1: Ensure that housing is safe and sanitary with adequate public services to accommodate the needs of City residents.

Policy 1.2: Promote the continued maintenance and enhancement of the existing housing stock.

Policy 1.3: Promote a variety of housing opportunities that accommodate the needs of all income levels of the population.

Policy 1.4: Support innovative public, private, and non-profit efforts in development of affordable housing, particularly for special needs groups.

Policy 1.5: Pursue county, state, and federal assistance to support the development and based on the following factors:
• the priority of housing need addressed by the proposed project; • the City's non-housing priorities for the use of an annual funding source (such as CDBG) in relation to the priority of the proposed project; • the likelihood that the proposed project will receive funding from other sources based on those sources' application rating criteria; and • the amount of staff time and other costs required to secure and administer funding in relation to available staff resources.

Policy 1.6: Monitor the number of affordable housing units eligible for conversion to market-rate units and develop programs to minimize the loss of these units. 53 February 2023October 2021

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Equal Opportunities for All Residents
GOAL 2: Maintain equal housing opportunities for all residents in Laguna Niguel Intent: To prohibit discrimination in housing practices in accordance with federal and state fair housing law.

Policy 2.1: Encourage and support the enforcement of laws and regulations prohibiting the discrimination in lending practices in the sale or rental of housing Policy 2.2: Support actions to reduce regulatory constraints which impede equal housing opportunities.

Policy 2.3: Ensure that City land use and housing policies and regulations do not create unreasonable barriers to housing and housing support services to special needs opulation groups such as the elderly, families with children, persons with disabilities and the mentally ill
B. Housing Programs
Laguna Niguel offers a variety of housing opportunities to meet the needs of the community. This section of the Housing Plan addresses the issues identified in the previous sections of this Housing Element and provides strategies and actions to achieve the City's housing goals. Fable V 1 summarizes the programs; objeetives, funding sourees, responsible agencies, and time frames for implementation.

Program 1 Provision of Adequate Housing Sites
Objective: Identify adequate sites for housing commensurate with the City's identified housing need in the RHNA allocation.

Action 1.1: The potential housing sites shown in Appendix B, including approved projects and vacant and underutilized sites, contain adequate capacity to accommodate the City's RHNA allocation in all income categories. In order to ensure that adequate capacity is maintained throughout the planning period, the City will comply with the "no net loss' provision of Government Code Sec. 65863 and report on the progress toward meeting the RHNA objectives each year in the Annual General Plan ImplementationHousing Element Annual Progress Report (APR). The City's efforts to facilitate development commensurate with the RHNA are described in Program 3 below.

Timeframe: Annual monitoring and reporting throughout the planning period through the APR: ongoing review for compliance with No Net Loss requirements on a project- by-project basis.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 1.2: In order to encourage and facilitate multi-family and mixed-use development in the Gateway Specific Plan area, the following incentives will be provided:
• Increased residential density and floor area ratio will be permitted when affordable housing is provided.
• CDBG or other available funding assistance may be allocated to projects that include multi-family units targeted for extremely-low-income households. 54 February 2023Oetober 2021

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• City staff will provide administrative assistance to affordable housing developers in preparing grant applications.
• A current inventory of vacant sites suitable for multi-family residential or mixed-use development will be maintained on the City website.
• At least once each year the City will publicize development opportunities within the Gateway Specific Plan area.
•_Assist in facilitating subdivision of large parcels where necessary to create building sites through concurrent processing and project coordination.

Timeframe: Advise developers of available incentives on a project-by-project basis.

Responsible Agency: Community Development Department.

Funding Sources: Departmental budget and CDBG.

Action 1.3: Community Development staff will contact the property owners of the vacant properties identified in Table B-4 annually to inquire whether assistance is needed to develop the site for residential purposes.

Timeframe: Annual outreach to property owners.

Responsible Agency: Community Development Department.

Funding Sources: Departmental budget.

Program 2 - Sites for Emergeney Shelters and Transitional/Supportive Housing for Persons with Special Needs
Objective: Promote and assist in the development of housing for persons with special needs.emergeney shelters-and transitional/supportive heusing.

Action 2.1: While surveys have not identified a significant local homeless population in Laguna Niguel, the City will continue to monitor the issue of homelessness in the future, continue its participation in the Orange County Homeless Issues Task Force, and continue to allocate an appropriate level of CDBG funding in relation to the local need.

Timeframe: Participate in meetings of the Orange County Homeless Issues Task Force as they occur; annual CDBG allocations; annual monitoring and reporting throughout the planning period through the APR.

Responsible Agencies: Community Development Department, City Manager.

Funding Sources: Departmental budget and CDBG.

Action 2.2: The City will update parking standards for emergency shelters consistent with AB 139 (2019) within one year of Housing Element adoption:

Timeframe: December 2023.

Responsible Agencies: Community Development Department, Planning Commission.

City Council.

Funding Source: Departmental budget.

Action 2.3: The City will continue to implement the provisions of State law that define transitional and supportive housing as residential uses subject to the same standards and procedures as apply to other residential uses of the same type in the same zone and AB 2162 (2018).

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Timeframe: Review changes to State law regarding transitional and supportive housing annually and process local Code amendments by December of each vear if necessary to maintain consistency; annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 2.4: The City will process a Code amendment to ensure the permitting requirements and necessary findings for residential care facilities for seven or more persons are consistent with State law and fair housing requirements.

Timeframe: December 2023
Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Program 3 - Affordable Housing Development
Objective: Promote, assist, and remove constraints on the development of housing for low- and moderate-income households, including units affordable to persons with extremely-low incomes.

Action 3.1: Government Code §65915 requires cities to grant a density increase over the otherwise maximum allowable residential density for housing developments that provide units affordable to low- or moderate-income households or seniors. AB 2345 of 2020 revised State Density Bonus Law to increase incentives for affordable housing. The City will continue to implement State Density Bonus Law as amended from time to time.

Timeframe: Continue to encourage developers during the application process to utilize density bonus law and facilitate production of affordable housing: annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 3.2: The City will amend the Gateway Specific Plan "community benefit" definition to prioritize the development of units available to very-low- and low-income households.

Timeframe: Specific Plan amendment by December 31, 2023.

Responsible Agencies: Community Development Department, Planning Commission.

City Council.

Funding Source: Departmental budget.

Action 3.3₴: The City will assist developers in seeking available State and federal funding and/or tax credits for the construction of low- and moderate-income housing, and will facilitate projects that incorporate affordable units by granting the modification of development standards, expedited processing, or other financial incentives consistent with state law.

The City will provide administrative assistance to interested developers in accessing funding for private, local, state, or federal programs if needed to develop a low- or moderate-income project. Available assistance will be advertised and marketed continuously on the City website.
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Timeframe: Assistance to developers on a project-by-project basis; annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 3.43: The City will continue to encourage the production of housing designed specifically for special needs population groups and extremely-low-income (ELI) households, in conjunction with density bonuses and/or regulatory incentives described in Actions 3.l and 3.2 of this Program. Additional assistance such as modified development standards and fee waivers will be provided to assist extremely-low-income units, when feasible.

Targeted funding assistance will be prioritized for ELI units whenever feasible.

Timeframe: Annual outreach to affordable housing developers; annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 3.54: In accordance with State law, the City updated-regulations for accessory dwelling units in 2021. Opportunities for ADU development will be publicized on the City website, at City Hall and at other community facilities. Strategies to encourage ADU production will include resource materials, expedited review, social media educational information, sample site plans, and a dedicated ADU webpage.

Objectives and Timeframe:

1. Develop a monitoring program in 2022 to ensure City is on track to meet the ADU construction goals. If by October 2025 the City is not on track in meeting its ADU goal of 64 units, review and revise policies and efforts to increase ADU construction as necessary.

2. Facilitate ADU construction through:
• Publicize opportunities for ADU construction on the City website, social media and in City offices throughout the planning period.
• Developing a one-stop shop to assist homeowners to prioritize issues in building ADUs by December 2023.
• Expedite ADU permit processing.
• At least semi-annually, promoting the use of pre-approved site/floor plans for ADUs created by the City, such as through the City's newsletter and other social media platforms.
• Amend the City's current ADU Ordinance per SB 897. which increases the allowable height for ADUs.
• By December 2023 research the availability of low-interest loans to single- family homeowners and grants to homeowners with household incomes of up to 80% of the Area Median Income to develop accessory dwelling units with affordability restrictions on their property. If funding is available, establish a pilot program by June 2024 and implement at least annually thereafter with a goal of achieving at least five deed-restricted ADUs annually.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

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Action 3.65: The City will post development fees and any inclusionary requirements on the City website in compliance with Government Code §65940.1(a) (1)(A).

Timeframe: Post by December 2022 and annual update as necessary: annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 3.76 Any vacant site identified in two or more consecutive planning periods or nonvacant sites identified in a prior planning period to accommodate the lower-income RHNA shall be eligible for approval by-right if at least 20% of the units are available to lower- income households pursuant to Government Code §65583.2(c)- Timeframe: Code amendment by December 2023; annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 3.87 The City will prepare and post on the City website and adopt-written procedures for SB 35 Streamlined Ministerial Approval. in 2021/2022.

Timeframe: Completed by December 31, 2023.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 3.9: The City will review City-owned properties annually to identify any surplus land that could be made available for affordable housing development.

Timeframe: Annual review.

Responsible Agencies: City Manager. Community Development Department. City Council.

Funding Source: City budget.

Action 3.10: Work cooperatively with the County of Orange and other local cities to create a regional housing bond program to help fund affordable housing and permanent supportive housing.

Timeframe: Annual consultation with the County of Orange local cities.

Responsible Agencies: Community Development Department
Funding Source: Department budget.

Action 3.11: The City will explore and pursue strategies to facilitate housing development on religious, institutional and quasi-institutional lands, and adaptive reuse of underutilized properties for affordable housing.

Timeframe: December 2023.

Responsible Agencies: Community Development Department
Funding Source: Department budget.

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Program 4 - Conserve and Improve Existing Low- and Moderate-Income Housing Objective: There are two projects with 156 units in Laguna Niguel that are at risk of conversion to market-rate apartments by 2031. While the City supports efforts to conserve and improve the existing supply of housing affordable to low- and moderate-income households, the level of need is greater than the financial resources under the City's control.

Action 4.1: Support efforts to conserve assisted rental units currently affordable to low- and moderate-income households that are at-risk of converting to market rate between 2021 and 2031. The City's strategy will be to:
• Monitor the status of assisted units annually in order to assess the risk of conversion to market rate.
• In collaboration with the Orange County Housing & Community Services (HCS) Department, encourage the owners of at-risk properties to maintain their rental units as affordable housing in exchange for appropriate financial incentives. • Depending on the interest of property owners and County HCS, allocate a portion of the City's CDBG funds to assist in extending affordability covenants for at-risk units, and work with potential purchasers of at-risk properties to extend affordability covenants.
• In cooperation with County HCS, provide educational materials to tenants of properties with expiring covenants regarding options for securing other affordable housing.

Timeframe: Annual coordination with at-risk property owners and OCHCS; annual monitoring and reporting throughout the planning period through the APR Responsible Agencies: Community Development Department, Orange County Housing & Community Services.

Funding Source: Departmental budget, County budget, CDBG.

Action 4.2: Continue the City's active property maintenance program run by the Code Enforcement Division of the Community Development Department. Under this program, code enforcement staff has an ongoing routine of conducting "windshield" surveys, covering all property in Laguna Niguel every six months. Code enforcement officers take note of and follow up on issues they may find that threaten public health, safety, and welfare such as fire hazards, polluted waters, refuse and waste, overgrown or dead vegetation, and unsafe structures, all in accordance with Municipal Code Division 14 (Nuisances).

The program, together with private activities of homeowner associations, will help to maintain the City's existing housing stock in good condition to prevent the need for rehabilitation. In addition, the City will seek CDBG funding to facilitate rehabilitation of 15 housing units during the planning period.

Timeframe: Conduct surveys every six months; annual monitoring and reporting throughout the planning period through the APR: annual CDBG program administration.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget: CDBG funds.
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Action 4.3: Continue to administer the City's Condominium Conversion Ordinance.

Timeframe: Annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Program 5 - Affirmatively Furthering Fair Housing
Objective: Affirmatively further fair housing in Laguna Niguel.

Action 5.1: Reasonable Accommodation for Persons with Disabilities. Continue to implement administrative procedures to ensure reasonable accommodation in housing for persons with disabilities.

Timeframe: Process requests for reasonable accommodation continuously as they are submitted; annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 5.2: Fair Housing Services. The City contracts with the Fair Housing Council of Orange County (FHCOC to provide fair housing services. The FHCOC provides the following types of services: housing discrimination response, landlord-tenant relations, housing information and counseling, and community education programs. The City created a directory of contacts for housing-related assistance, including contact telephone numbers in Orange County and website links where persons may inquire about fair housing. The City will partner with the FHCOC, Legal Aid, and other non-profit housing groups to maintain the directory. The City also provides a link to the housing information programs and the directory of contacts on the City's website. Specific • Continue directing fair housing inquiries to the FHCOC. • Post and update information annually regarding fair housing and request FHCOC to conduct a presentation every two years about services available. • In cooperation with the FHCOC, contact all low-income apartment complexes annually to provide education and materials about the Section 8 program including multi-lingual materials.
• Publish and update links to fair housing information on the City website and via social media annually.

Through the above steps, the City's goal is to increase the distribution of fair housing informational materials by at least 25% and increase awareness of fair housing options among residents, including special needs groups and low-income residents. During the informational workshops a comprehensive list of interested nonprofits, property owners and community members will be compiled for additional future outreach. The City will seek to increase the annual number of Laguna Niguel residents assisted by the FHCOC by at least 25% during the planning period.

Timeframe: Continuously throughout the planning period; update materials and City website on an annual basis.

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Responsible Agency: Community Development Department, FHCOC.

Funding Source: Departmental budget. County of Orange.

Action 5.3: Affirmatively Furthering Fair Housing. Consistent with Assembly Bill 686(2018), the City will work diligently to affirmatively further fair housing in Laguna Niguel. The City acknowledges that significant disparities exist in housing need and opportunity and will work to promote equitable housing access for all persons protected by the California Fair Employment and Housing Act and other applicable federal and state laws. The City will administer all of its programs and activities relating to housing and community development in a manner to affirmatively further fair housing and take no action that is materially inconsistent with its obligation to affirmatively further fair housing. The following actions will be pursued consistent with the City's Fair Housing Assessment (Appendix D).
• Work with the Fair Housing Council to expand knowledge of first-time homebuyer programs, and promote available programs on the City's website, newsletters and through social media.
• Require, provide incentives and utilize other strategies to promote affirmative marketing plans in all new housing developments. The marketing plans will consider regional housing registries and ensure marketing materials for new developments are designed to attract renters and buyers of diverse demographic backgrounds. including race, ethnicity, income, disability and familial status. • In cooperation with the Orange County Transportation Authority, provide community education regarding transport services for persons with disabilities • In collaboration with OCHA, expand the use of housing choice vouchers in high resource areas through the following actions:
• Develop an outreach plan and materials to communicate the benefits of vouchers and tenant rights regarding just cause evictions, limitations on rent increases, and replacement housing requirements if any existing residential units would be removed, based on state law.

Gain a better understanding of where overpayment and overcrowding rates are highest in the city, where vouchers are and are not used, and how many tenants could potentially qualify at each multifamily property in order to develop strategies to expand use of vouchers with the goal of increasing voucher use by at least 5 per year in Laguna Niguel.
• Inform voucher holders about residential options in high-resource areas.

In addition to these actions, other programs in this Housing Plan that are intended to improve access to opportunity, facilitate mobility for protected classes, and address housing affordability include the following:
• Continue to support the provision of housing for persons with disabilities through updates to zoning regulations in compliance with fair housing law by December 2023. (Program 2)
• Encourage and facilitate housing development at all affordability levels commensurate with the City's identified housing need in the RHNA allocation on a continuous basis throughout the planning period. (Programs / & 3) February 2023Oetober 2024 61

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• Review City-owned properties annually to identify any surplus land that could be made available for affordable housing development. (Program 3) • Work cooperatively with the County of Orange and cities to create a regional housing bond program to help fund affordable housing and permanent supportive housing. (Program 3)
• Expand production of accessory welling units in high-resource single-family neighborhoods. (Program 3)
• Explore and pursue strategies to facilitate housing development on religious and institutional lands, and adaptive reuse of underutilized institutional properties for affordable housing. (Program 3)
• Work with Orange County Housing & Community Services to preserve existing affordable housing units at-risk of converting to market rate. (Program 4) Intended Outcomes:

The actions listed above will facilitate the preservation of existing affordable housing as well as a variety of new housing options throughout the city, including areas that have traditionally only had single-family ownership housing.

Aetion 5.2: Continue-to implement actions to affirmatively further fair housing as deseribed in the 2020-2024 Orange Couny Analysis of Impediments to Fair Housing Choice (Consolidated Plan Appendix A) as deseribed below:

7. Attend quarterly OCHA Housing Advisory Committee to enhance the exchange of information regarding the availability, procedures, and policies related to the Housing Assistance Voucher program and regional housing issues.

2. In collaboration with the Orange Counly Housing Authority (OCHA):
a Support OCHA's affirmative fair marketing plan and de concentration policies by providing five-year and annal PHA plan certifications.
b. In coordination with OCHA and fair housing serviees provider, conduet landlord education campaign to educate property owners abour State law prohibiting diserimination based on household income.

3. Threugh the Cily's fair housing contractor:
đ. Provide fair housing education and information to apartment managers and Homeowmer asseciations on whiy denial of reasonable modifications/ accommodations is unlawful.
s. Conduet b. Conduet mulli faceted fair Housing outreach to tenants, landlords, property orners, realtors, and property management companies. Methods of outreach may inelude workshops, informational booths, presentations to communily groups, and distribution of multi lingual fair housing literature.
e. Provide general fair housing counseling and referrals services to address tenant- tandlerd issues, and investigate allegations of fair housing diserimination and take appropriate actions to conciliate cases or refer to appropriate authorities. d. Periodieally monitor local newspapers and online media outlets to identify potentially diseriminatery housing advertisements.
e. Inelude testing/audits within the scope of work with fair housing provider:

4. Prepare a new Housing Element that is compliant with all currem State laws and is certified by the California Department of Housing and Community Development.

5. Update zoning-ordinanee to comply with curremt State law:

6. In cooperation with the Orange Cowo transportation Author, prowe этиніу education regarding transport services for persons-with disabilitie 62 February 2023Octeber 2021

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57. Support local eviction prevention strategies to reduce the number of homeless individuals and families (homelessness prevention servees).

Timeframe: Throughout the planning period with specific actions as noted.

Responsible Agencies: Community Development Department, Orange County Housing Authority, Fair Housing Council, Orange County Transportation Authority.

Funding Source: Departmental budget, grant funds.

Program 6 - Housing Element Monitoring and Reporting
Objective: Monitor and report annually on the City's progress in implementing the Housing Element, and ensure that the Housing Element is internally consistent with other elements of the General Plan.

Action 6.1: Report to the City Council annually on the progress of Housing Element program implementation. This report will be distributed to the Department of Housing and Community Development and the Governor's Office of Planning and Research, in accordance with State law.

Timeframe: Annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 6.2: Require social service agencies and non-profit organizations that receive CDBG funding from the City to record and report information annually on the residences of clients served.

Timeframe: Annual monitoring and reporting throughout the planning period through the Consolidated Annual Performance and Evaluation Report (CAPER) report.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget. CDBG.

Action 6.3: Whenever land use regulations, land use designations, or housing programs are proposed for adoption or modification, the Community Development Department shall analyze the proposed changes to determine consistency with the Housing Element and other elements of the General Plan.

Timeframe: Annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

C. Quantified Objectives
The City's quantified objectives for new construction, rehabilitation and conservation are presented in Table V-1. No rehabilitation objective is established since the City's housing stock is relatively new and there are no units in need of substantial repair.

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Table V-1
Quantified Objectives - 2021-2029
City of Laguna Niguel
Income Category
Program Category V. Low
New Construction
Rehabilitation
Conservation? 156 156

1. Quantified objective for new construction is for the period 7/1/2021 - 10/15/2029 per the RHNA

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Appendix A -
Evaluation of the Prior Housing Element
Section 65588(a) of the Government Code requires that jurisdictions evaluate the effectiveness of the existing lousing Element, the appropriateness of goals
Trousin Element, the us opiateness od als beive and poles, and ore in lee ang programs of the previous housing element, and evaluates the degree to which these programs have been Implemented during the previous planning period. This analysis also includes an assessment of the appropriateness of goals, objectives and policies. The findings from this evaluation have been instrumental in determining the City's 2021-2029 Housing Implementation Program.

Table A-1 summarizes the programs contained in the previous Housing Element along with the source of funding, program objectives, accomplishments, and implications for future policies and actions.

Table A-2 presents the City's progress in meeting the quantified objectives from the previous Housing Element. A cumulative evaluation of the City's effectiveness in meeting the housing needs of special needs populations is summarized below.

Cumulative evaluation of the Effectiveness in Meeting the Housing Needs of Special Needs Populations While goals, policies, and programs that increase the number and variety of different types of units and maintain the high quality of existing housing stock benefits all residents in Laguna Niguel, the 2013 Housing Element included a number of policies and programs to specifically address the needs of special needs populations (e.g. elderly, persons with disabilities, large households, female headed households. farmworkers, and persons experiencing homelessness. To meet the housing needs of special needs populations. the City and other partner agencies accomplished the following during the last planning period:

Elderly
• The City allocates CDBG funds to social services agencies that administer housing and supportive services. including the elderly. In FY 2019-2020. 5 social services agencies received pass-through CDBG funding from the City to provide support and assistance, including elderly residents, and comparable assistance was provided in each preceding year of the program. • Of those social service agencies. Age Well Senior Services expended $5.000 on FY 19-20 to assist 82 seniors with its Meals on Wheels program. In addition to receiving a meal, program staff and volunteers conducted a well-check on homebound seniors. Due to Coronavirus pandemic stay-at- home orders, the program was modified to grab-n-go meals for seniors during the final quarter of the FY 19-20 reporting period.
• Family Assistance Ministries (FAM) utilized $10.235 to assist 508 individuals during the FY 19-20 reporting period. Assistance provided by FAM includes basic needs (i.e., food) and direct client services (i.e., rent assistance and case management). Due to Coronavirus pandemic social distancing recommendations, the program was modified to provide a drive-thru food bank during the final quarter of FY 19-20.

South County Outreach expended $10,235 to assist 346 people by providing access to their extensive foodbank. Additionally. 47 individuals benefitted from rent and utility assistance. which helped prevent the loss of housing. Due to Coronavirus pandemic social distancing recommendations. the program was modified to provide a drive-thru food bank during the final quarter of FY 19-20.

Orange County Housing Authority (OCHA) administers the Housing Choice Voucher rental assistance program. During FY 2019-2020. 92 very low-income renter households in Laguna Niguel received assistance. 66 of the 92 assisted households were for elderly individuals.

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Persons with Disabilities
• As described above, the City allocates CDBG funds to social services agencies that administer housing and supportive services, including services for persons with disabilities (including developmentally disabled). In FY 2019-2020. 5 social services agencies received pass-through CDBG funding from the City to provide support and assistance, including to persons with disabilities. and comparable assistance was provided in each preceding year of the program. • Family Assistance Ministries (FAM) utilized $10.235 to assist 508 individuals during the FY 19-20 reporting period. Assistance provided by FAM includes basic needs (i.e., food) and direct client services (i.e.. rent assistance and case management). Due to Coronavirus pandemic social distancing recommendations, the program was modified to provide a drive-thru food bank during the final quarter of FY 19-20.

South County Outreach expended $10.235 to assist 346 people by providing access to their extensive foodbank. Additionally. 47 individuals benefitted from rent and utility assistance, which helped prevent the loss of housing. Due to Coronavirus pandemic social distancing recommendations. the program was modified to provide a drive-thru food bank during the final quarter of FY 19-20. • Orange County Housing Authority (OCHA) administers the Housing Choice Voucher rental assistance program. During FY 2019-2020. 92 very low-income renter households in Laguna Niguel received assistance. 12 of the 92 assisted households were for individuals with disabilities. • The City is committed to furthering fair housing practices and cooperating with the Fair Housing Council of Orange County to eliminate discriminatory practices countywide. The City continues to contract with the Fair Housing Council of Orange County, which provides services that include fair housing enforcement and education, landlords/tenant counseling and mediation. In 2020. Laguna Niguel participated with 15 other Orange County entitlement cities to prepare a regional Analysis of Impediments to Fair Housing Choice (AI) to remove barriers to fair housing choice for all their residents. The Al examined policies. procedures, and practices within the region that may limit a person's ability to choose their residence free from discrimination. FHOCC assisted 104 Laguna Niguel households in FY 2019-20.
• The City's Reasonable Accommodation Ordinance is codified in Chapter 9-1-39 of the Zoning Code, and allows for reasonable accommodation (i.e.. modifications or exceptions) in the City's zoning laws and other land use regulations to allow disabled persons an equal opportunity to use and enjoy a dwelling.

Large Family Households
• As described above, the City is committed to furthering fair housing practices and cooperates with the Fair Housing Council of Orange County to eliminate discriminatory practices countywide. The City continues to contract with the Fair Housing Council of Orange County, which provides services that include fair housing enforcement and education, landlords/tenant counseling and mediation. In 2020. Laguna Niguel participated with 15 other Orange County cities to prepare a regional Analysis of Impediments to Fair Housing Choice (AI) to remove barriers to fair housing choice for all their residents. The Al examined policies. procedures, and practices within the region that may limit a person's ability to choose their residence free from discrimination. FHOCC assisted 104 Laguna Niguel households in FY 2019-20.
• Family Assistance Ministries (FAM) utilized $10.235 to assist 508 individuals during the FY19-20 reporting period. Assistance provided by FAM includes basic needs (i.e., food) and direct client services (i.e.. rent assistance and case management). Due to Coronavirus pandemic social distancing A-2
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recommendations, the program was modified to provide a drive-thru food bank during the final quarter of FY 19-20.

South County Outreach expended $10.235 to assist 346 people by providing access to their extensive foodbank. Additionally, 47 individuals benefitted from rent and utility assistance, which helped prevent the loss of housing. Due to Coronavirus pandemic social distancing recommendations. the program was modified to provide a drive-thru food bank during the final quarter of FY 19-20. • Orange County Housing Authority (OCHA) administers the Housing Choice Voucher rental assistance program. During FY 2019-2020, 92 very low-income renter households in Laguna Niguel received assistance. 14 of the 92 assisted households were for families.

Female-Headed Households
• As described above, the City is committed to furthering fair housing practices and cooperates with the Fair Housing Council of Orange County to eliminate discriminatory practices countywide. The City continues to contract with the Fair Housing Council of Orange County, which provides services that include fair housing enforcement and education. landlords/tenant counseling and mediation. In 2020. Laguna Niguel participated with 15 other Orange County cities to prepare a regional Analysis of Impediments to Fair Housing Choice (AI) to remove barriers to fair housing choice for all their residents. The Al examined policies, procedures, and practices within the region that may limit a person's ability to choose their residence free from discrimination. FHOCC assisted 104 Laguna Niguel households in FY 2019-20.
• Family Assistance Ministries (FAM) utilized $10.235 to assist 508 individuals during the FY 19-20 reporting period. Assistance provided by FAM includes basic needs (i.e., food) and direct client services (i.e... rent assistance and case management). Due to Coronavirus pandemic social distancing recommendations, the program was modified to provide a drive-thru food bank during the final quarter of FY 19-20.

South County Outreach expended $10.235 to assist 346 people by providing access to their extensive foodbank. Additionally. 47 individuals benefitted from rent and utility assistance. which helped prevent the loss of housing. Due to Coronavirus pandemic social distancing recommendations. the program was modified to provide a drive-thru food bank during the final quarter of FY19-20.

Farmworkers
• As described above, the City is committed to furthering fair housing practices and cooperates with the Fair Housing Council of Orange County to eliminate discriminatory practices countywide. The City continues to contract with the Fair Housing Council of Orange County, which provides services that include fair housing enforcement and education, landlords/tenant counseling and mediation. In 2020, Laguna Niguel participated with 15 other Orange County cities to prepare a regional Analysis of Impediments to Fair Housing Choice (AI) to remove barriers to fair housing choice for all their residents. The Al examined policies, procedures. and practices within the region that may limit a person's ability to choose their residence free from discrimination. FHOCC assisted 104 Laguna Niguel households in FY 2019-20.

Family Assistance Ministries (FAM) utilized $10.235 to assist 508 individuals during the FY 19-20 reporting period. Assistance provided by FAM includes basic needs (i.e., food) and direct client services (i.e., rent assistance and case management). Due to Coronavirus pandemic social distancing recommendations, the program was modified to provide a drive-thru food bank during the fina! quarter of FY 19-20.

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• South County Outreach expended $10.235 to assist 346 people by providing access to their extensive foodbank. Additionally, 47 individuals benefitted from rent and utility assistance, which helped prevent the loss of housing. Due to Coronavirus pandemic social distancing recommendations. the program was modified to provide a drive-thru food bank during the final quarter of FY 19-20.

Persons Experiencing Homelessness
The City contracts with Mercy House, a non-profit service provider specializing in assisting the homelessness. In addition, the City provided funding for a Homeless Liaison Officer position through its law enforcement services contract with the Orange County Sheriff's Department. The City also provided pass-through CDBG funding annually to local non-profits, including Family Assistance Ministries and South County Outreach, that provides food banks. rental assistance, counseling and other forms of assistance to individuals and families at risk of becoming homeless. • Family Assistance Ministries (FAM) utilized $10,235 to assist 508 individuals during the FY19-20 reporting period. Assistance provided by FAM includes basic needs (i.e., food) and direct client services (i.e.. rent assistance and case management). Due to Coronavirus pandemic social distancing recommendations, the program was modified to provide a drive-thru food bank during the fina! quarter of FY 19-20.

South County Outreach expended $10.235 to assist 346 people by providing access to their extensive foodbank. Additionally. 47 individuals benefitted from rent and utility assistance, which helped prevent the loss of housing. Due to Coronavirus pandemic social distancing recommendations, the program was modified to provide a drive-thru food bank during the final quarter of FY19-2 A-4
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Table A-1
Housing Element Program Evaluation 2013-2021
City of Laguna Niguel
Housing Program Program Objective Timeframe Implementation Status Identify and monitor the use of vacant Ongoing 1) The City complies with the "no net loss' provision of Government These programs should be continued. Evaluation:

1. Provision of
Adequate Housing land for the construction of new Code §65863 through provisions in the Laguna Niguel Zoning Code This program is considered successful. The City housing units to meet RHNA allocation. and Gateway Specific plan. has maintained an inventory of residential sites Sites and had adequate capacity to accommodate its
2) Following the March 16, 2021 City Council meeting, staff willThe RHNA. Specifically, a total of 1.529 units were City continues to submit this an annual progress report to the approved during this planning period, which California Department of Housing and Community Development and significantly exceeded the City's 182-unit RHNA Office of Planning and Research. allocation. Additionally, the City's very-low. low, 3) The City continues to offer a density bonus when affordable and above moderate allocations were all met. housing is provided. Continue/Modify/Delate: Modifv. This program 4) The City annually publishes the CDBG notice of funding provides relevant information to ensure the City is availability; however, we have not received any applications for multi- able to accommodate its RHNA allocation. family units targeting extreme-low-income households during the However, given the significant increase in the previous reporting period. City's RHNA allocation from 182 units (5th Cycle) to 1,207 units (6th Cycle), a more robust program
5) The City continues to offer administrative assistance to affordable will be implemented that includes the following housing developers in preparing grant applications. new program: Program 3 - Action 3.2. 6) A current inventory of vacant land suitable for housing is posted on the City's website.
7) The City publicizes current development projects in the Gateway and provides development standards on the City's website." Promote and assist in the development Ongoing 1) Emergency shelters are listed as permitted uses in the LNZC CN. These programs should be continued Evaluation:

2. Sites for Although no opportunities to assist non-profits to Emergency of emergency shelters and transitional/ CC. CO, BP. and Pl zoning districts.

Shelters and supportive housing. locate an emergency shelter and/or transitional 2) Transitional and supportive housing are listed as permitted uses in housing were identified during the planning period.

Transitional / the Gateway Specific Plan BP, CS, and MU zoning districts. there is an existing food bank located at Vineyard Supportive Housing Church. Additionally, the City is able to assist by 3) The City contracts with Mercy House, a non-profit service provider specializing in assisting the homeless. Mercy House conducts field contracting with Mercy House. funding a outreach and case management work five days per week. The Homeless Liaison Officer, and providing pass- services include mental and physical heath assessments and through CDBG funding to non-profits that provide connection of homeless individuals to various services. As part of the food banks, rental assistance, counseling and contract, Mercy House works with shelter and housing partners to other forms of assistance to individuals and find suitable temporary or long-term housing for the homeless. families at risk of being homeless.

Currently, there is a food bank in the Mercy Warehouse located at Continue/Modify/Delete. Continue. This program Vineyard Church in Laguna Niguel. continues to be appropriate and is included in the 2021-2029 Housing Element.

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Housing Program Program Objective Timeframe Implementation Status 4) The City provided funding for a Homeless Liaison Officer position through its law enforcement services contract with the Orange County Sheriff's Department.
5) The Citv also provided pass-through CDBG funding annually to local non-profits, including Family Assistance Ministries and South County Outreach. that provide food banks, rental assistance. counseling and other forms of assistance to individuals and families at risk of becoming homeless.

City staffe regularly attend regional planning meetings that address homelessness. The City Geordinates with the County and various public service agencies in helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition te permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness:
facilitating access for homeless individuals and families to affordable housing unite, and preventing individuals and families-who were recently homeless from becoming homeless again. Specifically, in FY 19/20 Families Assistance Ministries (FAM) and South County Outreach were provided funding from CDBG funds to previde these types of services for the homeless and those at-risk of homelessness.

Transitional and supportive housing are listed as permitted uses in the Laguna Niguel Zoning Cede and Gateway Specific Plan.

Promote and assist in the development Ongoing 1) The City's affordable housing regulations are in compliance with Evaluation: Per the current RHNA allocation (182 Affordable Housing
Development of housing for low- and moderate- current provisions of Government Code 65915 (State density bonus total units), the City was successful in promoting income households. law). housing for very-low and low income households.

A total of 41 very-low income units (43 very-low
2) The City offers incentives for affordable housing development in RHNA allocation), and 38 low income units (30 the form of density bonus as listed in the Laguna Niguel Zoning Code low income RHNA allocation) were approved in and Gateway Specific Plan. The density bonuspublic benefit this planning period. provision provides for increased density above the baseline of 50 du/ac up to 120 du/ac. During this program period, the public benefit Continue/Modify/Delate: Modify These programs density bonus was used in five approved Gateway developments should be continued.Although the program was ranging between 67-93 du/ac resulting in 1,497 total units with 55 successful for this planning period, more will be affordable units. done to achieve the current RHNA allocation distribution. Modifications to this program include
3) The City encourages the production of housing designed specifically for special needs population groups through the density bonus program in the Gateway Specific Plan. During this program Promote the construction of ADUs by Program #3. period, density bonus was used to approve a mixed-use Action 3.5 and ensuring that they are permitted development that includes a State-licensed Residential Care Facility by-right if they comply with 9-1-35.26 of the LNMC and State law; and per Program 3. Action 3.2
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Housing Program Program Objective Timeframe Implementation Status for the Elderly (RCFE) with 111 units at 72 du/ac. redefine public benefit in the Gateway Specific 4) The City implements regulations for accessory dwelling units Plan to improve the availability of homes available to very-low and low-income households in the
consistent with State Law.
5) OCHA issues vouchers on behalf of Laguna Niguel.

Conserve and To conserve and improve existing Ongoing 1) The City continues to monitor at risk units. No notifications have Evaluation: Program considered successful. No Improve Existing housing that is affordable to low- and been received during the reporting period. existing deed restricted units were converted to Housing Affordable moderate-income households. market rate during this planning period. 2) The City's Code Enforcement program responds to property to Low and maintenance complaints. Continue/Modify/Delate: Continue. This program Moderate Income continues to be appropriate and is included in the Households 3) Homesharing programs are administered by private service 2021-2029 Housing Element. These programs providers. should be continued.
4) There are no providers operating in or near Laguna Niguel during the reporting period.
5) The City continues to administer the condominium conversion ordinance as stated in the Zoning Code. No units were converted during the reporting period.
6) Within this planning period, a City-initiated Homeowner Association (HOA) quarterly meeting was developed to inform homeowner associations of current issues in the community.

Promote Equal Promote equal housing opportunity for Ongoing 1) The Zoning Code outlines administrative procedures for Evaluation: Program considered successful. The Housing all residents of Laguna Niguel. reasonable accommodation requests. s. City is committed to furthering fair housing Opportunity 2) No requests were received during the reporting period. practices in the community and cooperates with 3) The City utilized CDBG funds to support a fair housing the Fair Housing Council of Orange County to organization. Linke to FHCOG workshops are posted on the City's eliminate discriminatory practices countywide. website.

Continue/Modify/Delete. Continue. This program
2) The City continues to contract with the Fair Housing Council of continues to be appropriate and is included in the Orange County. The Fair Housing Council provides services that 2021-2029 Housing Element. These programs include fair housing enforcement and education, landlord/tenant should be continued. counseling, mediation, and homebuyer HUD counseling which includes first-time homebuyer education and mortgage default counseling. Services are available to low-to-moderate income clients free of charge and to others for a moderate donation. Services are available in English, Spanish and Vietnamese.
3) In 2020, Laguna Niquel participated with 15 other Orange County entitlement cities to prepare a regional Analysis of Impediments to Fair Housing Choice (Al) to fulfill their HUD requirement and remove barriers to fair housing choice for all their residents. The Al examined policies, procedures, and practices within the region that may limit a February 2023October 2021 A-7

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Housing Program Program Objective Timeframe Implementation Status person's ability to choose their residence free from discrimination.

The Al provided an overview of laws, regulations, conditions, or other possible obstacles that may affect an individual or a household's access to housing in the region. It also presented local and regional demographic profiles, assessed the extent of housing needs among specific groups, identified existing barriers or impediments that may limit housing choice, and proposed actions to overcome those Housing Element To develop monitoring and reporting Ongoing 1) Following the March 16, 2021 City Council meeting, staff will Evaluation: Program considered successful. The Monitoring and programs for the Housing Element and submit this The City continues to submit progress reports to the City submitted APRs for each of the years within Reporting ensure the Housing Element is California Department of Housing and Community Development and this last planning cycle. internally consistent with other Office of Planning and Research. Continue/Modify/Delete. Continue. This program elements of the General Plan. 2) The City's CDBG program requires service providers to report on continues to be appropriate and is included in the the number of residents served each quarter. 2021-2029 Housing Element. These programs should be continued.
3) All entitlements are analyzed for consistency with the Housing Element and other General Plan elements.

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Table A-2
Progress in Achieving Quantified Objectives - 2013-2020+ luantifier
Program Category Objectiv Progress
New Construction
Extremely Low 22
Very Low 21 4447
Low 30 38
Moderate 34 8
Above Moderate 75 1,442
Total 182 1.5321,529
Conservation
Very Low 156 156
Low
Total 156 156
Source: City of Laguna Niguel
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Appendix B-
Residential Land Inventory
The assumptions and methodology for the residential land inventory are provided below and summarized in Table B-1 through Table B-5. The inventory of sites for potential housing development is comprised of approved projects, vacant sites, underutilized sites, and potential accessory dwelling units (ADUs).

As shown in Table B-1, the city's land inventory can accommodate the RHNA allocation for the planning period in all income categories.

Table B-1
Land Inventory vs. RHNA
Income Category Totals
Potential Housing Sites Very-Low Low Moderate Above-Mod 12- 12 258917 270929
Approved projects (Table B-3) 293317
Vacant sites (Table B-4) 80110 80110 8033 64.53
261254 114117 186182 600567 1,164120
Underutilized sites (Table B-5) 5064
1012 2024 1520 58
Accessory dwelling units Potential (ADUs]
351388 226251 281235 9161.556 1,7742,430
Totals
202 223 434 1,207
RHNA (2021-2029) 348
Yes Yes Yes Yes Yes
Adequate Capacity?
Source: City of Laguna Niguel Community Development Department, 20224 Approved Projects
Table B-3 lists projects that have been approved and are expected to be completed during the planning periodbut not yet built. The affordability levels for these units are based on the actual estimated sale prices or rents.

Vacant Sites
Vacant parcels suitable for residential development are summarized in Table B-4 and shown in Figure B-2.

Single-family lots were assigned to the above-moderate income category. Parcels allowing multi-family or mixed-use were assigned to income categories based on the allowable density. Parcels where the allowable density is at least 30 units/acre were assigned to any income category based on the "default density" provisions of state law? while parcels zoned for multi-family development at less than 30 units/acre were assigned to the moderate- or above-moderate income category.

The largest of the vacant sites (Buie property) is over 26 acres in size but the developable portion is conservatively estimateds as 4.4 acres due to slopes on the property. This property is within the Gateway undeveloped parcels. All utilities are available to serve development on this site.

As described in Programs 1.2, 1.3. 3.1, 3.2, 3.3. 3.4. 3.7, 3.8 and 3.10, the City will assist in facilitating subdivisions to create one or mere building sites and other assistance to facilitate development during the planning period. Development regulations allow 100 percentstand-alone residential use in this area, and several recent examples of high-density residential projects such as Apex Apartments and Blu Nigue! 9 Government Code §65583.2.c
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Apartments (Picerne) have occurred on land with similar topographyłopes, as described below or on underutilized sites as noted in Table B-5 the Table B-2 below.

The recently constructed Apex Apartments, located at 27960 Forbes Road, had to accommodate significant site preparation, including approximately 154,000 cubic yards of cut (nearly all exported) to accommodate a three-level. subterranean parking structure. Additionally, a 15'7" retaining wall located at both the north and south sides of the site was constructed to accommodate the 84-foot grade differential across the site from north to south, and to provide a grade separated sidewalk and multi-use trail along Crown Valley Parkway.

As of October 2022, Blu I Niguel Apartments (Picerne) was constructed, and Blu II was under construction.

However, similar to what was required at Apex and would be required at the Buie Stoddard site, significant grading was necessary before construction could begin. Project implementation included complete demolition and removal of all existing on-site buildings (two commercial buildings totaling 55,230 square feet), and site improvements included significant grading consisting of approximately 219.500 cubic yards of cut and 56.800 cubic yards of fill with approximately 162,700 cubic yards of export. The most significant earthwork entailed the excavation necessary to remediate an existing landslide, as well as re-grading the site to create the building pads for partially subterranean parking structures and creating the necessary site grades to facilitate an access driveway that links the tiered apartment communities from both Crown Valley Parkway and Cabot Road. In addition to the grading, an extensive network of retaining walls was also included in the development due to the substantial topography changes that occur across the property. These recent projects clearly demonstrate that topography and grading issues do not preclude development of the identified sites.

As described in the Gateway Specific Plan Program Environmental Impact Report (PEIR), water, sewer, electric and gas utilities will be available to serve development.

As described in Housing Program #1, Action 1.3, Community Development staff will make contact annually with the property owners of the vacant sites to assess development interest and offer assistance in permit processing and grant funding applications, if requested.

Underutilized Sites
As discussed in the Constraints chapter, the Laguna Niguel Gateway Specific Plan represents a major development opportunity area. The Gateway Specific Plan area contains approximately 300 acres in the northeastern portion of the city. The area was originally developed primarily with single-story light industrial buildings in the late 1970s and early 1980s prior to City incorporation in 1989. These original developments contain a mix of office, retail and service commercial, light industrial and auto-related sales and service uses. in 2011. was the result of the collaborative planning efforts between the City, the public, property owners and businesses.

Existing development in the Specific Plan area is clustered primarily along the north/south roadways including Camino Capistrano. Cabot Road, and Forbes Road and is occupied by a variety of commercial service. light industrial. auto sales and services, retail. and office uses. Most of the uses are characterized by low-rise, one-story buildings and/or multi-tenant structures such as the business park on Forbes Road north of Crown Valley Parkway. There is a six-story Crown Cabot Financial office building on Cabot Road, a large retail/warehouse (Costco) on Crown Valley Parkway, and auto dealerships on Camino Capistrano and Star Drive, but none of these properties were assumed to be redeveloped in the planning period and are therefore not included in the sites inventory.

Two distinct areas form the heart of the Gateway community and offer excellent opportunities for high- density residential or mixed-use development in a walkable, pedestrian-oriented environment: the Mixed Use Village, located on Forbes Road north of Crown Valley Parkway, and the Transit-Oriented Mixed-Use B-2
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Corridor, located on Forbes Road south of the Crown Valley Parkway. Both of these areas are envisioned to transition and become an attractive mixed-use village with a mix of multi-family residential, office, and commercial uses. Buildings will be located directly along, and oriented towards the street frontage to foster pedestrian activity along the sidewalks. Oso Creek pedestrian greenway. and internal streets.

Significant residential development potential exists on underutilized sites within the Gateway Specific Plan (see Table B-5 and Figure B-2). Upon completion, Fhe Gateway Plan anticipates a total of nearly 3,000 housing units in mixed-use districts. Within the mixed-use zone, stand-aloneexclusively residential projects are permitted at a minimum density of 40 units/acre and 1.15 floor area ratio (FAR). Please refer to Section IV.A.1.b (page 32) for a detailed description of the Gateway Specific Plan. Table B-5 includes detailed characteristics_a list of underutilized sites in the Gateway Specific Plan that can accommodate housing development during the current planning period. Because the allowable density is greater than 30 units/acre, these sites can accommodate housing of all income categories. Most of the underutilized sites listed in Table B-5 have existing buildings that are single-story and at least 40 years old (see Figure B-3, site photos).

Recent development in the Gateway demonstrates that the Plan is highly successful in stimulating housing development in this area. The following recently completed or approved projects listed in Table B-2 have densities ranging from 67 to ever 11990 units/acre. Based on these recent projects, aA typical density of 50 units/acre is conservatively assumed for the Gateway area assuming that developments do not seek a density increase as permitted under zoning when a public benefit is provided. Actual densities are likely to be higher because all seven of the previous approved projects elected to provide a public benefit so they could achieve a density well over the maximum of 50 units per acre (134% to 238% of maximum density without a public benefit bonus). All of these projects were built on nonvacant sites and replaced older non-residential Additionally, the development of affordable housing through the "community benefit" process of the Gateway Specific Plan is also successful. Currently, density incentives are provided when community benefits are provided, such as affordable housing, community service facilities, or funding of non-project- related open space amenities.

Table B-2
Previous Constructed and Approved Multi-family Projects in the Gateway Specific Plan Project Maximum % of
Vacant or Nonvacant Density Density Maximum
Address Site? (units/ac) (units/ac) Density
Status Project
Apex Apartments 27960 Cabot Rd Nonvacant (2 industrial 86 40-50 172% Constructed
3/1/16 buildings demolished
Skye Apartments 28100 Cabot Rd Nonvacant (2 commercial 67 40-50 134% Constructed
4/4/16 buildings demolished)
Constructed Cavora 27742 Forbes Rd Nonvacant (4 industrial 70 40-50 140% 4/30/18 Apartments buildings demolished
Constructed Villara 27665 Forbes Rd Nonvacant (4 commercial 78 40-50 156% 4/20/20 Apartments buildings demolished)
Constructed Blu I Laguna 27930 Cabot Rd Nonvacant (2 commercial 99 40-50 198% 4/22/20 Niguel buildings demolished)
Apartments
Gateway Senior 27762 Forbes Rd Vonvacant (1 commercia 40-50 144% Entitled
6/22/19 Housing building demolished
Entitled South Forbes 27912. 27942, Nonvacant (3 commercial 119 40-50 238% 6/14/22 Apartments 27972 Forbes Rd buildings demolished) Maximum denies excluing public benefit bonus
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Densily
Project Address
tuAl
27960 Cabot Rd 86
Apex Apartments
28100 Cabot Rd 67
Skye Apartments
27742 Forbes Re 70
Cavora Apartments
27930 Cabot Ro 99
Picerne (blu)
27665 Forbes Rd 93
North Getty (Vilara)
Gateway Senior Community Housing 72
As shown in Table A-2, a total of 73 lower-income households was established for the previous planning period. Through the community benefit process, the City achieved a total of 79 deed-restricted lower-income units, plus 3 non-restricted lower-income ADUs, for a total of 82, or 112% of the City's lower-income allocation. Moreover, as described in Action 3.2, given the significant increase in the City's RHNA allocation from 182 units (5'" Cycle) to 1.207 units (6" Cycle) (including 550 lower-income units), the development of deed-restricted affordable housing will be prioritized over the other allowed "community benefits" such as incorporation of community service facilities and funding of non-project-related open space amenities.

Pursuant to Government Code §65583.2(g)(2), the City finds that the following substantial evidence demonstrates that existing uses on sites listed in Table B-5 do not impede additional residential development and are likely to be discontinued during the planning period. • A Program EIR was certified for the Gateway Specific Plan, which streamlines the CEQA review process for housing developments thereby enhancing development certainty and reducing development time and cost.
• As shown in Table B-2, at least six multi-family projects have been previously approved and/or built in the Gateway Specific Plan, demonstrating that the Plan creates significant market incentives and opportunities for new residential development. • As shown in Table B-2, to date, all of the approved multi-family projects in the Gateway Specific Plan have exceeded the allowable density of 50 units per acre. Additionally, all have elected to provide a "public benefit" to exceed 50 units per acre.

Approximately two-thirds of the potential residential units on underutilized sites listed in Table B-5 are on sites with an assessed improvements-to-land (I/L) value ratio 1.0 or less. Previous research by the University of California, Berkeley'° to identify potential infill development opportunities in California utilized an I/L ratio of 1.0 for commercial and multi-family residential properties. The authors of that study noted that this methodology "...has a strong theoretical and empirical basis: urban parcels for which improvement values are less than land values are widely considered to be economically underutilized. Indeed, many, if not most, market-rate infill housing projects are currently built on refill sites." • Nearly all of the existing buildings on properties listed in Table B-5 are 40 years old or more, indicating significant market potential for redevelopment.

Nearly all of the properties listed in Table B-5 are developed with one- or two-story buildings with a floor area ratio (FAR) less than 0.5, indicating significant market potential for redevelopment.

As described in the Gateway Specific Plan PEIR, there is sufficient infrastructure capacity to accommodate the residential build-out of the Gateway Specific Plan which includes the 220 10 University of California, Berkeley Institute of Urban and Regional Development, The Future of Infill Housing in California:

Opportunities, Potential, Feasibility and Demand, 2005
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units identified for Buie Stoddard site in Table B-4 and the 1,120 residential units identified in the underutilized inventory in Table B-5.
• The Apex Laguna Nigue! project, approved by the Planning Commission on July 10, 2012, is an example of a site where non-residential uses were demolished for the purpose of residential construction. The current 3.7-acre site originally was composed of two sites (2.4 acres and 1.3 acres). The first site was originally occupied by the Mission Yamaha dealership, demolished in early 2007 in anticipation for redevelopment of the site with an 85.000 square foot medical office. The other parcel was originally developed with a 9,200 square foot, single-story industrial building occupied by Concept Framing, which was demolished by the developer in 2011. This project also demonstrates the successful consolidation of multiple parcels into a single project. • The 6.4-acre Blu Laguna Niguel project, approved by Planning Commission on June 10. 2014. is another example of a residential development on an underutilized site that previously contained two commercial projects. The upper pad contained two commercial/light industrial buildings accessed from Cabot Road and a sizeable, landscaped hillside that descended to the Oso Creek flood control channel. The lower pad consisted of two commercial/light industrial buildings accessible from Crown Valley Parkway bounded by vegetated slopes. The buildings were constructed in the 1970s, and gross square footage for all buildings totaled approximately 55,230 square feet.
• The South Forbes project, approved by the City's Planning Commission on June 14, 2022, is a recent example of a developer purchasing existing non-residential buildings in the Gateway Specific Plan area for residential development. Prior to entitlement, the 11.586 square foot property at 27912 Forbes Road was used for auto repair/auto service uses (Econo Lube and Tune): the 212,044-square-foot property at 2 7942 Forbes Road was used for auto repair/auto service uses (Tucker Tire); and the 12,644-square-foot property at 27972 Forbes Road was being used for auto repair/auto service (Suspension Plus).

Realistic Capacity
The foregoing analysis describes the City's methodology for calculating realistic capacity for sites listed in the sites inventory. The estimated number of potential units for each site has accounted for land-use controls and site improvements. typical densities of existing or approved residential developments. and the availability of infrastructure and utilities. For sites zoned to allow nonresidential uses the analysis describes how recent development trends (see Table B-2) support the estimated number of residential units for each site. In addition. Programs 1.2, 1.3, 3.1. 3.2, 3.3. 3.4. 3.7. 3.8 and 3.10 in the Housing Plan describe specific City commitments to facilitate residential development on both vacant and nonvacant sites listed in the inventory during the planning period.

Accessory Dwelling Units
Accessory dwelling units (ADUs) represent a significant opportunity for affordable housing, particularly for single persons or small households including the elderly, college students, young adults, and caregivers.

Recent changes in State law have made the construction of ADUs more feasible for homeowners, and the City has seen an increase in ADU development applications recently.

Over the past few years interest in ADUs has increased; permits were issued for 3 ADUs in 2020, 10 ADU in 2021, and 10 ADUs in 2022, and in the past year the City has approved 7 ADU permits. At that rate, it is estimated that approximately 50 additional64 ADUs will be permitted during the 2021-2029 planning period, or approximately 6-8 per year. Based on recent analysis conducted by SCAG" approximately two-thirds of 11 SCAG, Regional Accessory Dwelling Unit Affordability Analysis, 2020 https://scag.ca.gov/sites/main/files/file- attachments/adu_affordability_analysis_120120v2.pdf?1606868527) B-5
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future ADUs are expected to be affordable to lower-income households. Action 3.4 describes methods the City will use to promote and monitor ADU development. In 2022, the City prepared ADU handouts which describe the different types of ADUs. ADU development standards, examples of ADU site plan/floor plans. plan checklist for required information, and addressing exhibit templates.? Additionally, the City posted CAD files on the City's website for the ADU floor plan examples. The ADU webpage includes the handouts.

CAD files, and contact information.!3
12 https://www.cityoflagunaniguel.org/DocumentCenter/View/22178/Laguna-Niguel-ADU-Handout?bidld= 13 https://www.cityoflagunaniguel.org/1433/Accessory-Dwelling-Units B-6
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Table B-3
Approved Projects
Density Potential Units
Status/Notes
Project Address (units/ac) VL Low Mod Above Total
Gateway Senior Housing 27762 Forbes Read 78 78 ApprovedBuilding permits issued May 3. 78 2022; under construction as of October
un2 alo indudes 33 managed earne
Blu II Laguna Niguel (formerly 25887 Crown Valley Pkwy 12 180 Building permit issued July 28.2021; known as Picerne wrap) 52 Under construction as of October 2022. 12 deed-restricted units.

SunPointe (formerly known as Tract 5241, Lots 1-53 (single-family) 53 Entitled November 12, 2019 APN: 637-071-01 through 53 2.7
Colinas de Capistrano)
South Forbes 27912, 27942, 27972 Forbes Rd 119 309 309 Entitled June 14, 2022 Laguna Niquel City Center Vesting Tentative Tract Map No. 19024 275 Entitled July 19, 2022 Cove @ El Niguel (formerly n/w of Crown Valley Pkwy and Pacific Entitled September 13, 2022 known as Crowne Cove) Island Dr
APN: 656-231-02
Totals 12 917258 929270
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Table B-4
Vacant Sites Inventory
Potential Units by Income
General Plan/ Density Category
Site (Address/APN) Zoning Acreage (du/acre) Lower Moderate Above Total Buie Property, n/w corner of Crown Valley GP: Open Space and CC/PO/PI/RA 26.8 Pkwy and Cabot Rd, APNe: 636-061-24 (P) Zoning: Gateway SP/MU 636-061-20 (P) 24.0
636-041-04 (P) 2.1 4050 160220** 160220
636-044-01 (P) 0.7
Total 26.8 total
(4.46- buildable based on slope site
constraints)
Grown Cove, niw of Crown Valley Pkwy GP: RA
and Pacific Island Dr Zoning: Multi-Family (RM) 4.19 9.8 41** APN: 656-231-02
CUSD Surplus Property, Paseo de GP: PI/RA/PR
Colinas Zoning: PI/RM/PR/MC
Parcel 1 of LLA No. 07-01, Previous APNs:
637-412-02 (portion) & 637-181-01 1.22 12.216 30**24*** 3024 (portion)
637-392-02 (portion) 0.07
637-181-01 (portion) 1.18
Total 2.47 tola (1.47) residential & 1.0 park)**
Park Niguel, s/w of Crown Valley Pkwy GP: RA
and Central Park Dr Zoning: Multi-Family (RM) 1.02 8.8
APN: 654-083-04
Colina de Capistrano GP: Residential Detached
Tract 5241, Lots 1-35 (single-family) Zoning: Single Family District 3 (F.S-3) 10.57 1.8 53 ARN: 637-071-01 through 35
Single-Family custom lots, various sites Single-family varies TOTALS - vacant sites 160220 8033 5364 293317
Notes:
*Required affordable unite based on condition of approva/Site can accommodate 220 units (or 50 du/4.4 acres) per the Gateway Specific Plan, Planning District C. **Based on market General Plan conditions
***Based on default densitymarket condition
****Based on default density
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Table B-5
Underutilized Sites Inventory
Density Parcel Income Category
District Address APN Zoning* Size FAR Existing Use Lower Mod Above Total (acres) Mod
26022 Cape Dr 636 034 06 MU 720 1.2 .18 2.5 Crown Cape Center, 1-story commercial center, built 1976, 9,600 1820 910 2930 5660 sq.ft.
27601 Forbes Rd 636 033 03 MU 4050 120 5.4 .31 3 Flags commercial center, built 1969, 1-story, 72,598. sq.ft. 8490 43+ 1374 253270 27812 Forbes Rd 636 034 07 MU 4050 720 1.1 32 1.7 Mission Christian Church, built 1967, 1-story, 15,124, sa.ft. 187 286 5755 Subtotal 5040 8.6 116128 5862 186195 360385
27872 Crown Valley 637 202 02 MU 4050 120 3.5 49 1.2 All Size Storage, built 1982, 1-story, 77,574 sq.ft. 5358 2628 8489 163175 Pkwy
Subtotal 5040 3.5 5358 2628 8489 163175
27882 Forbes Rd 637 20101 MU 120 3.1 .25 Laguna Niguel Medical Plaza, built 1982, 2-story. 33,700. sq.ft. 4751 2325 7479 144155 27912 Forbeg Rd 637 20102 MU 40.50 120 -29 1.2 Econo Lube n Tune, built 1982, 11,586sqft 43 27942 Forboc Rd 637 20103 AU 120 0.8 33 Tucker Tire/auto ropair, built 1979, 12,077cqft its 38 27972 Forbeg Rd 637 201 04 4050 0.8 36 1.5 LD Suilding/auto repair, built 1979, 12,644sqlt 12 28002 Forbes Rd 637 20105 MU 0.9 1.4 JFC Tires / OC Auto Collision, built 1979, 1-story, 15,220 sq.ft. 1315 68 2122 28092 Forbes Rd 637 201 11 MU/T 4050 120 5.6 Sepulveda Building Materials, built 2000, 19.206 sa ff 8493 4245 735142 261280 28032 Forbes Rd 637 201 06 MU 4050 120 0.8 2.9 South Coast Shingles, built 1979, 15,000 sqft 1213 20 3840 28062 Forbes Rd 637 201 07 MU/T 4050 720 0.8 Office building (Art Display, Care Ambulance, Left Coast 1213 1920 3740 CrossFit), built 1981, 1-story, 15.008 sq.ft
Subtotal 73.811.2 206185 10292 330283 638560
Totals 25.923. 3715 1826 600567 1,1611,
120
*The General Plan designation for all parcels is COMMUNITY COMMERCIAL; PROFESSIONAL OFFICE; PUBLIC INSTITUTIONAL; RESIDENTIAL ATTACHED All parcels are within the Gateway Specific Plan. The zoning designation reflects the Specific Plan land use designation.

Note: None of the sites was utilized in a prior planning period February 2023October 2021 B-9

THE CITY OF LAGUNA NIGUEL HOUSING
Figure B-1
Residential Land Inventory Map
-Alicia
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• Highlands Avo
Niguel Rd
Hills Dr
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| Vacant
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Vacant and Underutilized Sites
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11/28/22
B-10
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cine park
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B-11
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Figure B-2
Land Use Concept Plan,
Gateway Specific Plan
•Project Boundary
*........ City Boundary
Light Industrial/Business Park
Open Space
Mixed-Use Village
Hillside Office & Multi-Family Housing Mix
Oso Creek Trail/Pedestrian Connector
• Retail Commercial
5 - Mixed-Use
- Mixed-Use Urban Corridor
- Retail Commercial, Multi-Family Housing Mix
- Multi-Family Housing
Office Center
73 E • Laguna Niguel/Mission Viejo Matrolink Station
- Oso Creek Trail/Pedestrian Connector
Existing Rail Tracks
- Open Space
Community-Serving Retall
Office, Auto Sales & Service
Open Space
500 2000 m
1000
B-12
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Figure B-3
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Laguna Niguel, Califomia 9 E
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B-14
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Appendix C-
Public Participation Summary
Overview
Public participation is an important component of the Housing Element update. Government Code §65583(c)(8) states that "The local government shall make diligent effort to achieve public participation of all the economic segments of the community in the development of the housing element, and the program shall describe this effort." Public participation played an important role in the formulation and refinement of the City's housing goals and policies and in the development of a Land Use Plan that determines the extent and density of future residential development in the community. Concurrently with the Housing Element update the City prepared the 2020-2024 update to the Laguna Niguel Consolidated Plan, a federally mandated planning process that also included extensive public participation. As discussed further in Appendix D. the Consolidated Plan update incorporated the findings of the 2020 Analysis of Impediments to Fair Housing Choice. a cooperative effort of the County of Orange and 21 cities, including Laguna Niguel. This Appendix describes opportunities that were made available to City residents and other interested parties were given several opportunities-to identify housing issues of concern, recommendand potential strategies, review and comment on the draft element, and provide recommendations to decision-makers. Targeted outreach included persons and local organizations representing the interests of lower-income households and persons with special needs, as described in more detail below.

Housing Element Website
At the beginning of the City of 64°000
Housing Element update Laguna Niguel California
process dedicated Services What's New Economic Development How Do I.? Clty Hall
Housing Element web
2021 Housing Element Update
Housino Element Update
page was established to
provide interested persons What is a Housing Element?
with information including
Frequently Asked lone dote milkies end programs that direct decision maling around housing. State law requires that Housing Elements be Questions (see Figure C-2 updated on 8 year "cycles." The Cityis currently preparing a Housing flement update tor the 20212029 planning pened, below), reference whuch is referred to as the "6th Housing Element cycle" n reference to the sid requiced updates that have occurred since the materials regarding the comprehensive revision to State Housing Element law in 198D Regional Housing Needs
Assessment (RHNA). a Public Involvement
video series! on housing
issues (available in both if you have specifie questions shout the Housing Element update please email [email protected] English and Spanish) If you would like in headed to the contact list forthe Housing Flement pdate please sign us for the bausing Lament L'arate list produced by the Orange
County Council of Project Schedule and Meetings
Governments (OCCOG),
the Association of California Cities - Orange County (ACC-OC) and the Southern California Association of Governments (SCAG), draft Housing Element documents. City staff reports, the project schedule and public meeting announcements. The website also included web links to housing organizations and resources such as the California Department of Housing and Community Development (HCD). SCAG, the Orange County Housing FALOO Authority, the Orange County Affordable Rental Housing List, and contact

14. https://www.cityoflagunaniguel.org/1352/Housing-Element-Update https://www.occog.com/housing
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information where interested persons could ask questions of City staff and submit comments during the Housing Element update process.

Stakeholder Notification List
To ensure broad oppor- City of
tunities for local housing Laguna Niguel california
stakeholders and organiza-
tions that serve the interests City Hall Services What's New Economic Development of lower-income persons
and those with special needs
such as the disabled, the
City's housing notification Housing for All: Part 2
list was updated at the
beginning of the Housing ỚCC G
Element process. This list SCAG
(see Figure C-1) was con- Orange County Council of c
tinuously updated through-
out the Housing Element LAND USE AND HOUSL
update process to include
parties who submitted Watch on D YouTube
comments regarding hous-
ing needs and other issues.

Housing Needs Survey
and alse aAn online survey was conducted regarding housing needs in the community (see survey questions and results in Figure C-3_below). Approximately 286 persons responded to the survey during March 31 to September 17, 2021. The most frequently mentioned priorities identified by respondents were the following:
• Maintaining existing neighborhoods
• Fair/equitable housing opportunities
• Ensuring that children who grew up in Laguna Niguel can continue to live there • Rehabilitation of existing housing
Providing a diverse range of housing types
• Helping at-risk homeowners keep their homes
Housing for those with special needs such as seniors, veterans and those with disabilities Integrating affordable housing to create mixed-income neighborhoods Targeted Public Outreach
To enhance coordination between the City and other public agencies, housing providers and social service agencies, the City of Laguna Niguel undertook the following targeted outreach activities to help identify the housing needs of lower-income households and persons with disabilities or other special needs:

Community Development Department staff consulted with the following public and private organizations to gain input on housing needs and the effective coordination of services:

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Organization Input Received
Orange County Housing Authority Households receiving HUD rental assistance and households on the waitlist for rental housing assistance
211 Orange County Homelessness data and the County's coordinated entry system HMIS Fair Housing Council of Orange County Data regarding fair housing issues in the community and input related to impediments to fair housing, and recommended actions to address impediments to fair housing
Age Well Senior Services Housing and service needs of seniors, including homebound seniors Family Assistance Ministry Housing and service needs of homeless persons and households at risk of becoming homeless
South County Outreach Needs of lower-income households, specifically individuals/households at risk of becoming homeless
Camino Health Center Medical/dental service needs of the community including homeless individuals
Mercy House Transitional Living Centers Needs of lower-income households, specifically homeless individuals Council On Aging - Southern California Housing and service needs of elderly and disabled individuals living in managed care facilities
YMCA Childcare service needs
Vocational Visions Needs of adults with developmental disabilities, including developing economic opportunities for this special needs population • Focus Group Meeting: On November 6, 2019 Laguna Niguel and five other South County CDBG grantees hosted a joint focus group meeting with service providers. Sixteen individuals representing 11 different agencies attended the meeting.

Public Meetings
The following public meetings were conducted regarding the Housing Element update. Meeting notices were posted on the City's website, and notification was published in the local newspaper in advance of the meetings. Copies of the draft Housing Element were made available for review at City Hall and were posted on the City website, and notices were sent directly to housing interest groups and organizations that serve the City's special needs populations (see Figure C-1). The public comments resulting from this broad effort to involve all segments of the community were considered by City decision-makers in preparing this Housing Element update.

January 9. 2020 Community Meeting. In partnership with other south Orange County cities. a community meeting was held on January 9. 2020 to provide residents and other stakeholders an opportunity to discuss fair housing issues and ways to advance fair housing opportunities for all.

February 25. 2020 City Council ad-hoc committee meeting. Committee members received input from public service providers regarding the needs of lower-income and special needs households.

May 5. 2020 City Council public hearing. The focus of this meeting was to obtain public input on the City's draft Consolidated Plan, the proposed allocation of 2020-2021 CDBG funds. and the Orange County Analysis of Impediments, which are companions to the Housing Element update.

April 15. 2021 Planning Commission study session. The Planning Commission conducted a study session to review Housing Element requirements and receive public comments regarding community housing issues. Due to Covid-19 public health issues the meeting was conducted remotely. Public comments included housing options for the Chet Holifield Federal Building property and the affordability level of recent housing developments.

May 25, 2021 Planning Commission meeting. The second Planning Commission public meeting provided an opportunity for interested stakeholders and the Planning Commission to review the C-3
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preliminary draft 2021-2029 Housing Element. Due to Covid-19 public health issues the meeting was conducted remotely. Notice of the hearing was posted in compliance with State law and was also sent directly to the City's Housing Element interest list (Exhibit C-I). Public comments included concerns regarding local regulation of addiction recovery facilities, support for high density and affordable housing in the Gateway Specific Plan area, support for ADUs. and questions regarding additional opportunities for public review and input.

September 28, 2021 Planning Commission hearing. The purpose of the third Planning Commission public meeting was to provide an opportunity for stakeholders and the Commission to review HCD comments on the draft Housing Element and the City's proposed revisions to the Housing Element to address those comments. Public comments raised at the hearing included support for affordable and inclusionary housing dispersed throughout the community, monitoring the affordability level of ADUs. and City requirements for housing developers to utilize a local skilled trained workforce. At the conclusion of the hearing the Planning Commission adopted a resolution recommending City Council adoption of the revised Housing Element.

October 19, 2021_City Council hearing. The purpose of this public hearing was to provide an opportunity for the City Council to review public comments. HCD comments on the draft Housing Element and the City's proposed revisions to the Housing Element to address those comments. Public comments raised at the hearing included support for affordable housing to address the needs of young families and lower-income residents. At the conclusion of the hearing the City Council adopted a resolution approving the Housing Element as revised to address HCD's comments.

March 14, 2023 Planning Commission hearing. The purpose of the fourth Planning Commission publie meeting was to provide an opportunity for stakeholders and the Commission to review the City's proposed revisions to the adopted Housing Element in response to HCD's January 19. 2022 comments on the adopted Housing Element. The revised Housing Element was posted for public review on_March 2, 2023, 12 days prior to the hearing. Notice was sent to all parties on the City's stakeholder list advising them of the availability of the revised Housing Element and the scheduled public hearing.

March 21, 2023 City Council hearing. The purpose of this public hearing was to provide an opportunity for the City Council to review public comments. HCD comments on the adopted Housing Element, the City's proposed revisions to the Housing Element to address those comments. and the Planning Commission recommendations. Notice of the hearing was sent to all parties on the stakeholder list prior to the hearing.

HCD Review and Housing Element Revisions
As required by State law, the draft Housing Element was submitted to the California Department of Housing and Community Development (HCD) for review prior to adoption. The initial draft Housing Element was submitted to HCD on June 22, 2021, and on August 5, 2021 City staff met with HCD staff via teleconference to receive preliminary verbal comments on the draft element. HCD's formal written comments were issued on August 20, 2021. A copy of the HCD review letter was posted for review on the City's Housing Element website.

After receiving HCD's comments on the draft Housing Element, a revised draft Housing Element was prepared and posted for public review on September 22, 2021. A public hearing was conducted by the Planning Commission on September 28, 2021 to review the revised draft Housing Element and solicit public comments. The staff report for the Planning Commission hearing included a copy of HCD's comments on the draft Housing Element, a redlined version of the revised Housing Element, and a summary of the City's responses to HCD comments, all of which were posted for public review prior to the hearing. At the conclusion of the hearing the Planning Commission adopted a resolution recommending City Council approval of the Housing Element.

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On October 19, 2021 the City Council conducted a public hearing and adopted the revised Housing Element as recommended by the Planning Commission. On October 21, 2021 the adopted Housing Element was submitted to HCD for review.

On January 19, 2022 HCD issued a letter finding that while the adopted housing element addresses most statutory requirements described in HCD's August 20, 2021 review, additional revisions are necessary to fully comply with State Housing Element Law.

Subsequent to receiving HCD's January 19. 2022 comments on the adopted Housing Element the City prepared revisions to the Housing Element addressing HCD comments, which were posted for public review on March 2, 2023. Notice of the availability of the revised Housing Element with an invitation to participate in the March 14, 2023 and March 21, 2023 public hearings was sent to all parties on the stakeholder list in addition to the 190 individuals that provided their email via the Housing Element Update webpage.

How Public Comments Were Considered and Incorporated in the Housing Element Update In addition to the oral comments at each public meeting, copies of written comments submitted during the Housing Element update process were also provided to decision-makers for consideration at the public meetings described above. The following table summarizes public comments received, both oral and in writing, and how those comments have been addressed in the Housing Element.

Comment How this comment is addressed
The City should encourage public participation at all stages of the As described in this Appendix, the City conducted a robust Housing Element update and should include options for those who do public participation program to facilitate the engagement of all not have access to a computer or the internet, including residents of economic segments of the community and persons with special low-income communities and multiple languages. needs. This was accomplished through direct notification to a broad list of stakeholders (see Appendix C-1) that included organizations representing low-income and special needs groups, fair housing and advocacy organizations, non-protit housing developers and service providers. Interested
stakeholders were able to provide input in writing, orally at public meetings or by telephone, via email, and through an online public opinion survey. Translation of documents and other materials into multiple languages was made available through Google Translate on the City's website and
informational videos on housing issues were made available in both English and Spanish.

Due to economic changes it appears that we have an oversupply of As described in Appendix B (Sites Inventory) the Gateway retail space. For example, the former Ralph's grocery at La Paz and Specific Plan area has been very successful in facilitating the Aliso Creek Roads and the retail center along Aliso Creek anchored redevelopment of underutilized commercial properties for high- by Pavilions and Walmart. Commercial properties could be rezoned density residential use. A significant number of additional for housing. The city has done the right thing by allowing the apartments and condominiums are expected to be built in the apartments near the freeway along Forbes Road (the Gateway area Gateway during the coming planning period. The City is also close to our transit center, which makes it a great location for those moving forward on the Town Center Mixed Use project, which desiring to use public transportation. I also support the proposed will create a downtown environment with restaurants, office.

Town Center on the former courthouse property. This project is a event spaces, approximately 275 multi-family housing units. a great example of creating walkable residential/commercial elements. new library, and extensive walkable open spaces, paseos, and plazas. This project was approved by City Council on June 21, 2022.

We urge you to be creative and intentional in meeting the need for The Housing Element includes a variety of strategies to more affordable housing - especially for those with extremely-low- facilitate affordable housing for EL and VL households. incomes (e.g.. $28,250 and below) and very-low-incomes S47.100 particularly Program 1 - Provision of Adequate Housing Sites, and below). Affordable housing should be distributed evenly Program 3 - Affordable Housing Development, and Program 4 throughout the City so as to avoid economic segregation. Future -Conserve and Improve Existing Low- and Moderate-Income affordable housing should be placed in high opportunity areas with Housing. good jobs. good schools, services, and public transportation. The Housing Element also includes analysis of the geographic distribution of potential sites for affordable housing. As noted in February 2023October 2024 C-5

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How this comment is addressed
Comment
Appendix B and Appendix D, all of the sites are in areas identified by the California Tax Credit Allocation Committee (TCAC) as highest. high, or moderate resource. It is also important to recognize that affordable housing can be
accommodated through ADUs and SB 9 lot splits in low-density single-family neighborhoods as well as in high-density multi- family and condo developments.

We ask that if feasible, you consider creatively using public lands, e.g. Housing Element Program 3. Action 3.9 includes annual review partnering with a non-profit affordable housing developer to build an of City-owned properties to identify any surplus lands that affordable housing complex on city owned land. could be made available for affordable housing development.

The City should consider an inclusionary housing program "Inclusionary housing" refers to a mandatory requirement that a specific portion of new housing developments are sold or rented at affordable cost. There are valid arguments among housing experts for and against such policies, and each city must evaluate whether inclusionary requirements are
appropriate. While Laguna Niguel does not currently have a citywide inclusionary requirement, incentives for providing affordable housing units are available through density bonus law (see Program 3, Action 3.4) and public benefit incentives in the Gateway Specific Plan (see Program 3, Action 3.2).

Consider adopting an Adaptive Reuse Ordinance such as the one According to the City of Santa Ana's November 18, 2014. used by the City of Santa Ana that streamlines the regulatory process Planning Commission staff report. Santa Ana "has numerous for converting non-residential buildings into affordable housing. buildings that were built in the last 100 years that. over time. have become vacant or underutilized due to various
circumstances but which remain structurally sound buildings." Santa Ana's adaptive reuse ordinance recognizes the
"economic, environmental and cultural value of preserving older and/or historic landmark buildings with the City of Santa Ana." In Laguna Niguel, the sites identified in Table B-5.

Underutilized Sites Inventory, do not have buildings with cultural or historic value. Furthermore, the recent examples of housing construction on underutilized sites include the full demolition of existing buildings.

Emphasize, promote, and encourage the use of incentives available As noted in Program 3. the City currently offers a variety of to those developers who include affordable housing such as waivers incentives to encourage production of affordable housing. or reductions in fees. low interest loans or subsidies, and financial or including streamlined permit processing pursuant to SB 35. mortgage assistance for acquisition of property. Emphasize processes/procedures like the consolidation of applications to one hearing, fast-tracking of design, and review and inspections with priority processing and scheduling for interim inspections, and reduction in development standards.

Prioritize getting access to affordable housing funding, such as: As noted in Program 3, the City assists affordable housing • Increased diligence to identify and access new funding sources, developers in identiying potential funding sources and will state and federal, to facilitate solutions. work cooperatively with the County of Orange and nearby cities to create a local affordable housing bond program.
• Work with the Orange County Board of Supervisors and
neighboring cities to create a local housing bond program to help fund affordable housing and permanent supportive housing.

The City should track ADU rents to measure if progress is being made Program Action 3.5 in the Housing Plan includes measures to on the production of affordable units. In addition, we would like to see facilitate production of ADUs. including expedited permit more incentives put in place to encourage the development of ADUs- processing, pre-approved plans, reduced permit fees for deed restricted affordable ADUs, and consideration of an ADU such as expedited review of ADU permits. pre-approved ADU design plans and reduction of permit fees for deed restricted affordable Forgivable Loan Program.

ADUs. Please consider adopting a program such as the Santa Cruz County Accessory Dwelling Unit Forgivable Loan Program.

C-6
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Comment How this comment is addressed
The Southwest Regional Council of Carpenters recommends that the A requirement for use of union construction labor is a broader Cily require housing projects to use a local hired skilled and trained issue than just housing. If the City were to adopt such as workforce. requirement it should consider all types of construction. including commercial and industrial, and therefore would be more appropriate to consider in a different manner than a Housing Element policy.

The housing market is strongly influenced by investors Yes. many factors contribute to housing problems that are beyond the City's control, such as housing speculators and investors, State environmental regulations, interest rates. private business decisions, and the cost of labor and materials.

Housing Element policies and programs focus on those factors that the City has control over.

Young people who grew up in Laguna Niquel have difficulty finding One of the main purposes of the Housing Element is to expand affordable housing that enables them to continue living here the availability of housing at all income levels so that grown children can afford to remain in the community. Housing Element programs include a variety of strategies to create opportunities for affordable housing development, including condos, apartments, and ADUs.

If a site is listed in the inventory, is it required to be developed for No, the sites inventory (Appendix B) only describes where affordable housing? additional housing could be built based on zoning regulations and other factors. Property owners decide if and when to pursue development. The City or the State cannot force
property owners to develop their property for housing.

The Housing Element states that the development of deed-restricted As shown in the City's Annual Progress Reports from 2014:
affordable housing will be prioritized over the other allowed 2019 (5th Cycle), the City achieved a total of 79 deed-restricted "community benefits." How this is related to the densily bonus that! very-low and low-income units in the Gateway Specific Plan believe was given to projects in 2022 with no affordable housing? area, all on underutilized. non-vacant sites with previous industrial and/or commercial uses. 3 non-restricted lower- income ADUs were issued permits in 2020 as shown in the 2020 Annual Progress Report (APR).) These totals equate to the 82 lower-income units identified in the "progress" column of Table A-2, "Progress in Achieving Quantified Objectives - 2013-2020.? Once the City achieved the City's lower income RHNA allocation in the 5th cycle (73 units), the City then began prioritizing the other community benefit objectives: provision of community service facilities and the funding of non-proiect related open space amenities.

In 2022, as identified in Table B-3. "Approved Projects," there was one residential project entitled in the Gateway area:
"South Forbes", 309 units. To initiate negotiations for density and community benefit allowances the developer engaged
Community Development staff in 2020, following the City's achievement of meeting its 5th cycle RHNA allocation.

Therefore, the provision of community service facilities and the funding of non-project-related open space amenities were prioritized for that development.

The other two "2022 projects", "Laguna Niquel City Center" and "Cove @ El Niquel" identified in Table B-3 are not within the Gateway area and do not include the community benefit
provision that results in increased density. However, both projects resulted in significant public benefits in other ways including further stabilization of a former landslide site. preservation of open space, and provision of a state-of-the-art community library campus.

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Comment How this comment is addressed
Page B-4 has been revised as follows: "As shown in Table A- 2, a total of 73 lower-income households was established for the previous planning period. Through the community benefit process, the City achieved a total of 79 deed restricted lower- income units plus 3 non-restricted lower-income ADUs. for a total of 82, or 112% of the City's lower income allocation.

Moreover, as described in Action 3.2, given the significant increase in the City's RHNA allocation from 182 units (5th cycle) to 1,207 units (6th cycle) (including 550 lower-income units). the development of deed-restricted affordable housing will be prioritized over the other allowed "community benefits" such as incorporation of community service facilities and funding of non-project related open space amenities.

Regarding Action 3.2, Lam glad to see that lower income home "Lower income" is intended to mean very-low and low-income development will be prioritized. Please define exactly what is meant households. by "lower income" in this context. I am concerned that if it means only low and moderate income development will not be sufficient for very- As currentlv written, the community benefit provision in the low, extremely-low and acute-low income households. And please Gateway Specific Plan allows a developer to increase the explain what incentives will be given for what required number of density of a project from 50 units to 120 units per acre when lower income housing units. I don't see any specific housing overlay affordable housing, community facilities, and/or non-project- program in the housing element. How will the city ensure that related funding of open space amenities are provided affordable housing will be built on the sites in the housing inventory. where it's slated to be? With the December 31. 2023 commitment of amending the Gateway Specific Plan as it relates to the prioritization of affordable housing, specific numbers and/or percentages for lower-income housing units will be proposed and then adopted by City Council in a public hearing.

It must be recognized that private real estate development decisions are based on a variety of financial and personal considerations including general economic and market
conditions, expectations for future market conditions, current and projected costs (development cost. loan servicing. property taxes, assessments, insurance, maintenance, utilities, etc.). current and proiected income (rent. appreciation), private lending institution policies, alternate investment options. perceived financial risk vs. expected return, and personal objectives. The City's evaluation of residential development potential is based on available data, staff observations and reasonable assumptions regarding development trends.
property characteristics, and input from property owners and knowledgeable real estate professionals. Inclusion of any property in this sites inventory should not be interpreted as the City's prediction regarding private development decisions or a City requirement for amortization of any existing uses. Actual development will depend on the individual decisions of private property owners. Actions the City will take to encourage and facilitate development of sites listed in the Housing Element are described in detail in the Housing Plan.

Action 3.2 has been revised to state that the City will amend the Gateway Specific Plan "community benefit" definition to prioritize the development of units available to very-low-and low-income households.

The Chet Holifield Federal Building is considered a unique In 2021, the U.S. General Services Administration (GSA) hired architectural landmark - so much so that the Federal Government Griffin Enright Architects (GEA) to facilitate five virtual conducted a charette to consider the best use for it. I attended those workshops to solicit. consider and document community input February 2023Oetober 2021 C-8

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Comment How this comment is addressed
charette sessions and housing was considered. Why isn't that site on on the property and potential options for the future use of the the Site Inventory? Including that site would allow more affordable Chet Holifield Federal Building site. Development proposals housing to be spread out throughout our city and not be segregated in shared with the public by GEA ranged from repurposing the existing building (Scheme Nos. 1.2, and 3), reducing the the Gateway Specific Plan. existing building (Scheme No. 4) and demolishing the building (Scheme No. 5). Anticipated economic and land use impacts associated with the various proposals were not shared during the workshops. Also, due to the format selected for the workshops, opportunities for community engagement were
limited. Currently (March 15. 2023), the GSA has the property up for sale, with a contingency that the million-square-foot building, guard shacks, etc. will have to be preserved under a historic deed restriction. The start of the bid process began on March 7th and the anticipated close date is April 12th. It is unknown whether there will be a winning bidder, and therefore whether the ownership will change from the current federal status. Assuming the property does change hands, the GSA intends to continue to occupy the building/property through 2024. Given the great uncertainty of the property ownership status and staff's inability to provide supporting information on how future development is possible, it was not included in the Site Inventory. It should be noted that the Housing Element sites inventory is a "snapshot in time" and as circumstances change, housing development may be considered on additional sites that are not listed in the current Housing Element sites inventory.

The sites inventory shows that 220 affordable units are in the Buie As noted in Table B-4 "Vacant Sites Inventory" it is estimated Property. It says the acreage is 26.8. There is a steep hill there on the that there are approximately 4 buildable acres based on site corner of Crown Valley Pkwy and Cabot Rd. How much of that constraints. The 220 potential units are based on 4 acres and acreage is buildable? Do you already have an affordable builder 50 units/acre as allowed within the Gateway Specific Plan. No planning to build there with 100% affordable housing? specific proposal has been submitted to the City for affordable housing on that site.

Do you have any letters from property owners that state their intention No letters or applications for development have been submitted to redevelop property into housing and if so, what are their plans to to date by property owners of the sites listed in Table B-5 "Underutilized Sites Inventory". However, as shown in revised include affordable housing? Table B-5. three underutilized properties with auto uses were removed from the "Underutilized Sites Inventory" because the private property owners and private developers were
incentivized to sell the property and construct a multifamily residential development (South Forbes, 309-unit project). The incentives included a density allowance of 119 units per acre 238% above the allowable maximum of 50 units per acre.

Additionally, as shown in Table B-2 "Previous Constructed and Approved Multi-family Projects in the Gateway Specific Plan there were another 6 residential projects in the Gateway area that were built on non-vacant. underutilized property. As noted in Action 1.2. City staff will continue to engage in conversations and outreach with Gateway property owners and prosective developers.

Table B-3 Approved Projects shows that 929 units have been Please see responses above related to the prioritization of approved in 2021-2022, 12 were low with the remainder above affordable housing in the Gateway area. Additionally, please moderate. 12 units in 2 years is certainly not on track for getting to see Actions 3.3, and 3.4 where City staff will provide annual outreach to affordable housing developers and provide
550 units by 2029. administrative assistance to them in seeking available State and federal funding and/or tax credits for the constructions of low-income units.

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Figure C-1
Housing Element Public Meeting Notification List
Kennedy Commission Rona Henry OC Association of Realtors 17701 Cowan Ave., Suite 200 Welcoming Neighbors Home 25552 La Paz Road Irvine, CA 92614 [email protected] Laguna Hills, CA 92653 Jamboree Housing Corp.

Public Law Center Californians for Home Ownership 17701 Cowan Avenue 601 Civic Center Drive West Matthew Gelfand Suite 200
Santa Ana, 92701 [email protected] Irvine, CA 92614
The Related Companies of California Community Housing Resources, Inc. South County Outreach 18201 Von Karman Ave Ste 900 17701 Cowan Avenue, Suite 200 26776 Vista Terrace Irvine, CA 92614 Lake Forest, CA 92630
Irvine, CA 92612
Dayle Mclntosh Center Cal. Consortium of Addiction
OC Housing Providers Programs & Professionals
South County Branch 25241 Paseo de Alicia, Suite 120 2400 Marconi Ave Suite C 24012 Calle De La Plata # 110 Laguna Hills, CA 92653 Sacramento, CA 95821 Laguna Hills, CA 92653
Neighborhood Housing Services of
OC Business Council OC Housing Trust Orange County
2 Park Plaza, Suite 100 198 W. Lincoln Ave., 2nd Floor 198 W. Lincoln Ave., and Floor Irvine, CA 92614 Anaheim, CA 92805 Anaheim, CA 92805
Habitat for Humanity of Orange County City of Laguna Hills BINOC Community Development Director
17744 Sky Park Circle #170 2200 S. Ritchey St. 24035 El Toro Rd Irvine, CA 92614 Santa Ana, CA 92705 Laguna Hills, CA 92653 Community Outreach Coordinator City of San Juan Capistrano City of Mission Viejo Development Services Director
Community Development Director Regional Center of Orange County 200, Civic Center P.O. Box 22010 32400 Paseo Adelanto
Mission Viejo, CA 92691 Santa Ana, CA 92702-2010 San Juan Capistrano, CA 92675 City of Dana Point City of Laguna Beach City of Aliso Viejo Community Development Director Community Development Director Planning Services Director 328 Golden Lantern, Ste. 212 505 Forest Ave. 12 Journey Dana Point, CA 92629 Laguna Beach, CA 92651-2394 Aliso Viejo, CA 92656 OC Development Services Moulton Niguel Water District
Scott Richter P.O. Box 4048 P.O. Box 30203
[email protected] Santa Ana. CA 92702-4048 Laguna Niquel. CA 92607 South Coast Water District
31592 West Street
Laguna Beach. CA 92651
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THE CITY OF LAGUNA NIGUEL HOUSING
Figure C-2
Housing Element FAQ
City of Laguna Niguel
2021 Housing Element FAQ

1. What is a Housing Element?
State law' requires each city to adopt a comprehensive, long-term General Plan for its physical development. Laguna Niguel's General Plan? is divided into the following "elements" or chapters that contain goals, policies and programs which are intended to guide land use and development decisions:

Land Use
Open Space & Parks
Circulation
Public Facilities
Noise
Seismic/Public Safety
Housing
Growth Management
• Community Service Standards
The purpose of the Housing Element is to evaluate the housing needs of Laguna Niguel's current and future residents and set forth policies and programs to address those while must portic out Get Pas typically a on a year heles of e-25 is aur eate aw requires that Housing
1980
stablishes detailed requirements for Housing Elements, which ar um marized in California Government Code Section 65583
element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantiped objectives, and deal resert t and sedule using ammer the erie e
housing, including rental housing, factorybuilt housing, mobile homes, and emergency shelters, and shall make adequate provision for the existing and • California Government Code Sec. 65300 er sea.
https//www.citvoflacunaniquel.ora/|32/General.Plar
• California Government Code Sec. 65580 et sec
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Laguna Niguel 2021 Housing Element FAQ

2. What is Housing Element "certification" and why is it important?
Housing Element certification is important for two main reasons:
• Local control. The General Plan and its various elements provide the foundation for the City's land use plans and development regulations, and the Housing Element is part of the General Plan. If the City were challenged in court on a planning or zoning matter and the General Plan were found by the court to be invalid, the court could order changes to City land use plans or regulations and control over City land use decisions. HCD certification establishes a "rebuttable presumption of validity" that the Housing Element complies with State law, which would support the City's legal defense. Recent laws also allow courts to impose fines on a jurisdiction if it fails to adopt a Housing Element in compliance with State law.®
Some State grant funds are contingent upon
• Eligibility for grant funds.

Housing Element certification. Grants can help to cover the cost of some projects that would otherwise rely on the City's General Fund
Laguna Niguel's last Housing Element update was completed in 2013 and certified by HD as fully compliant with State law.

3. What are the most important issues that must be
addressed in the Housing Element update?
The major issues that must be addressed in the Housing Element update are: 1) how City policies, plans and regulations help to meet the region's housing needs for persons and families of all income levels; and 2) how City land use regulations accommodate the special housing needs of those with disabilities or other difficulties.