20231205_PH3_Housing Element — Laguna Niguel City Council, December 5, 2023 (part 1 of 2)

CITY OF LAGUNA NIGUEL

CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Jonathan Orduna, Community Development Director
DATE: December 5, 2023
SUBJECT: Public Hearing to Consider General Plan Amendment GPA 21-01A02, Updating the Adopted 2021-2029 Housing Element in Response to Comments Received from the California Department of Housing and Community Development (HCD) on May 22, 2023

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

1. Find that adoption of General Plan Amendment GPA 21-01A02 is exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines Section 15061(b)(3), which provides that a project is exempt from CEQA 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.

2. Adopt Resolution No. 2023-1454 approving General Plan Amendment GPA 21- 01A02 (2021-2029 Updated Housing Element) and determining the action to be exempt from the California Environmental Quality Act under State CEQA Guidelines Section 15061(b)(3).

BACKGROUND
State Law - Housing Element
State law requires that each City adopt a General Plan to guide land use and development. Among the seven 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-year planning period which coincides with the Regional Housing Needs Assessment (RHNA) projection period. The RHNA is mandated by State 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.

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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, the City Council makes a finding that the City is in substantial compliance with State law. 2021-2029 Housing Element - Timeline
The Laguna Niguel General Plan Housing Element prepared for the 2021-2029 planning period has undergone multiple iterations and revisions to address comments from HCD with the aim of obtaining certification. Below is a general timeline and milestone overview:
• June 22, 2021: Draft Laguna Niguel General Plan Housing Element for the 2021- 2029 planning period submitted to HCD for review.
• August 20, 2021: City received its first written HCD comment letter outlining requested modifications to the draft Housing Element.
• October 19, 2021: After revisions addressing HCD's comments, the comprehensive Housing Element update proceeded through the public hearing process and was adopted by the City Council.
• January 19, 2022: City received a second comment letter from HCD, requesting further revisions to the adopted Housing Element.
• March 21, 2023: Revisions to the adopted Housing Element were drafted to address HCD's second round of comments. The revised Housing Element proceeded through the hearing process and was adopted by the City Council. • May 22, 2023: City received a third comment letter from HCD, requesting additional revisions to the adopted Housing Element (Attachment B). • Current Status: In response to the most recent HCD comment letter, City staff collaborated with the DeNovo Planning Group (planning/housing consulting firm) to again revise the Housing Element. If the City Council adopts the current updated Housing Element, the document will be submitted to HCD for review for certification.

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Discussion
General Plan Amendment GPA 21-01A02 (2021-2029 Updated Housing Element) As noted in the preceding section, City staff, and the DeNovo Planning Group have undertaken further revisions to the Housing Element. This effort is intended to address HCD's latest comments and receive HCD certification. The proposed updated 2021-2029 Housing Element is included as Exhibit 1 of Attachment A (new or revised text underlined and strikethrough text for deletions). These modifications to the adopted 2021-2029 Housing Element require a General Plan Amendment (General Plan Amendment GPA 21-01A02).

A comprehensive overview of HCD's May 22, 2023 comments along with City responses with corresponding page numbers is included in Attachment A, Exhibit 2. An abbreviated summary of these changes is outlined below:

Revised Housing Element Actions:
• Actions 1.2, 1.3, 3.3-3.5, 4.1: Further clarity, modified milestone dates, and revised text language supporting the City's commitment to promote, assist, and remove constraints on residential development opportunities, including affordable and/or special needs housing. This is also inclusive of Accessory Dwelling Units and Senate Bill SB 9-unit production and furthering fair housing. • Actions 2.2 and 2.4: Revised Code Amendment clarity language further demonstrating the City's alignment efforts with current State law. • Action 3.2: Revised text indicating that the Gateway Specific Plan would be evaluated and amended to mandate that any public benefit provided to achieve a density of higher than 50 dwelling units per acre shall include a provision of affordable housing.

New Housing Element Actions:
• Action 3.12: New provision committing to evaluate and modify the site development permit process and/or requirements to remove constraints to the production of housing.
• Action 4.4: New provision committing to capital improvement projects in areas with higher proportions of vulnerable populations.

In addition to the above action items, the Housing Element was updated with new or modified specificity, metrics, supplemental evidence, and/or resource opportunities to support the City's ability to accommodate its RHNA (housing allocation) at all income categories.

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Planning Commission Recommendation
On November 14, 2023, the Planning Commission, as an advisory body to the City Council, held a publicly noticed hearing to consider General Plan Amendment GPA 21- 01A02. During the meeting, there was one oral public comment made expressing support for efforts to produce affordable housing. At the conclusion of the public hearing, the Planning Commission unanimously adopted Resolution No. 23-12 (Attachment C) recommending that the City Council approve General Plan Amendment GPA 21-01A02 for the updated 2021-2029 Housing Element. The draft meeting minutes from the Planning Commission hearing are attached as Attachment D.

PUBLIC NOTICE
On November 23, 2023, a one-eighth (1/8th) page notice of the public hearing describing the project, date, time, and location of the hearing was advertised in the Orange County Register - Laguna Niguel News in accordance with Government Code Section 65091(a)(4) for projects affecting over 1,000 property owners. The notice was also posted at City Hall and on the City's website and mailed/emailed to all interested parties. Additionally, on November 2, 2023, a link to the proposed updated 2021-2029 Housing Element was made available on the City's website.

ENVIRONMENTAL REVIEW
This amendment to the City's General Plan is exempt from California Environmental Quality Act (CEQA) requirements per Section 15061. 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 is strictly a policy document and does not provide entitlements to any specific land use projects. The updates to the Housing Element Update do 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.

ANALYSIS
Laguna Niguel Municipal Code - Required Findings
Laguna Niguel Municipal Code Section 9-1-117.1 requires findings by the City Council in conjunction with the approval of a General Plan Amendment that the amendment is both internally consistent with the Laguna Niguel General Plan and that it would not adversely affect the public health, safety, and general welfare. These required findings are included in Resolution No. 2023-1454 (refer to Attachment A).

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ALTERNATIVES CONSIDERED
The City Council may elect not to update the adopted Housing Element; however, doing so would preclude achieving HCD certification. As stated previously, HCD certification plays a role in improving eligibility for grant funds and reducing uncertainty in the local

FISCAL REVIEW
There is no fiscal impact as a result of adopting Resolution No. 2023-1454.

LEGAL REVIEW
The City Attorney's Office has reviewed and approved this report and Resolution No. 2023-1454 as to form.

CONCLUSION
Staff recommends that the City Council open the public hearing, take public testimony, close the public hearing, and then take the following actions:

Samara SEptouseau You Knife
Tamara S. Letourneau Scott Smith
City Manager City Attorney
Jonathan Orduna John Morgan
Community Development Director Development Services Manager Luca Roess
Erica Roess
Senior Planner

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Attachments:

A. Resolution No. 2023-1454
Exhibit 1 - October 2023 Draft Revised 2021-2029 Housing Element Exhibit 2 - Summary of HCD Comments and City Responses
B. HCD Letter of May 22, 2023
C. November 14, 2023, Planning Commission Resolution No. 23-12 D. November 14, 2023, Draft Planning Commission Meeting Minutes Attachment A
Resolution No. 2023-1454
RESOLUTION NO. 2023-1454

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
APPROVING GENERAL PLAN AMENDMENT GPA 21-01A02
(2021-2029 UPDATED HOUSING ELEMENT); AND DETERMINING THE ACTION TO

BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY UNDER STATE CEQA GUIDELINES SECTION 15061(B)(3)
WHEREAS, the City of Laguna Niguel is proposing to augment for a second time 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 malled a public notice on May 6, 2021 to all Calitornia 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; (ili) 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 adopted 2021-2029 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.

Resolution No. 2023-1454 Page 2
WHEREAS, the Planning Commission held a duly noticed public hearing on May 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 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 Housing Element was augmented to address HCD's comments of January 19, 2022, as described in the Planning Commission staff report dated March 14, 2023.

WHEREAS, on March 14, 2023, the Planning Commission held a public hearing to review the revised 2021-2029 Housing Element (as augmented to address HCD's comments), received public comments from interested community stakeholders, and recommended approval of adoption to the City Council.

Resolution No. 2023-1454 Page 3
WHEREAS, on March 21, 2023, City Council held a public hearing to review the revised Housing Element, received public comments from interested community stakeholders, and adopted General Plan Amendment GPA 21-01A01, 2021-2029 Housing Element, finding that the updated Housing Element included revisions that addressed HCD's comments on the Housing Element.

WHEREAS, on March 23, 2023, HCD received the adopted General Plan Amendment GPA 21-01A01, 2021-2029 Housing Element.

WHEREAS, On May 22, 2023, the City received a third comment letter from HCD finding that, in their assessment, while the adopted Housing Element addresses many statutory requirements, additional revisions were necessary to comply with State Housing Element Law.

WHEREAS, on November 14, 2023, the Planning Commission held a public hearing to review the revised 2021-2029 Housing Element (as augmented to address HCD's latest comments), received public comments from interested community stakeholders, and recommended approval of adoption to the City Council.

WHEREAS, on November 23, 2023, a one-eighth (1/8th) page notice of the public hearing describing the project, date, time, and location of the hearing was advertised in the Orange County Register - Laguna Niguel News in accordance with Government Code Section 65091(a)(4) for projects affecting over 1,000 property owners. The notice was also posted at City Hall and on the City's website and mailed/emailed to all interested parties. Additionally, on November 2, 2023, a link to the proposed updated 2021-2029 Housing Element was made available on the City's website.

WHEREAS, on December 5, 2023, the City Council conducted a duly noticed public hearing on the revised 2021-2029 Housing Element, at which time all persons wishing to testify were heard; and
WHEREAS, the City Council has duly considered all evidence presented at the hearing, including the testimony of the City's Housing Element consultant, interested parties, and the evaluation and recommendations by staff.

WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA NIGUEL DOES HEREBY RESOLVE, FIND, AND ORDER AS FOLLOWS:

SECTION 1. Incorporation. The City Council hereby finds and determines that the recitals above are true and correct and are each incorporated by reference and adopted as findings by the City Council.

Resolution No. 2023-1454 Page 4
SECTION 2. CEQA. The City Council finds, that this amendment to the Laguna Niguel General Plan (i.e., GPA 21-01A02) is exempt from California Environmental Quality Act (CEQA) requirements per Section 15061. 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."
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 augmentation of the adopted 2021-2029 Housing Element would not result in any direct or indirect physical changes to the environment. The Housing Element, including as revised, is strictly a policy document and does not provide entitlements to any specific land use projects. The Housing Element, including the revisions proposed in the updated 2021-2029 Housing Element, 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.

The augmentation of the adopted 2021-2029 Housing Element contains goals, policies, and programs aimed at addressing Laguna Niguel's housing development, preservation, and rehabilitation needs, including accommodating the City's RHNA of leeds housed unis, increase ances i going seen ar
affirmatively furthering fair housing. The proposed project does not entitle, propose, or otherwise require the construction of new development or rehabilitation of existing development, but rather includes goals and policies to facilitate the development, preservation, and rehabilitation of housing consistent with existing and proposed uses identified in the Laguna Niguel General Plan and as mandated to be allowed under State law.

All future housing development projects will be reviewed pursuant to the CEQA.

The goals, policies, and programs established by the 2021-2029 Housing Element 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 on 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.

Resolution No. 2023-1454 Page 5
The augmentation of the adopted 6h Cycle Housing Element 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 updated Housing Element is exempt from the provisions of the CEQA as set forth in Section 15061(b)(3) of the State CEQA Guidelines.

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. The records, documents, and other materials related to this matter are available at the City of Laguna Niguel Community Development Department, 30111 Crown Valley Parkway, Laguna Niguel, CA 92677.

SECTION 3. Additional Findings.

1. Existing Uses on Inventory Sites. Based on substantial evidence provided in the City of Laguna Niguel's 2021-2029 Housing Element, including the City's Housing Programs and analysis of underutilized and non-vacant sites in Appendix B, including an analysis of objective characteristics shared by current and proposed projects, such as current zoning and density allowances, age of structure, floor area ratio, and exiting uses, a record of changing market conditions including declining demand for retail and office uses, and the City's successful history of redevelopment of non-vacant sites in the Gateway Specific Plan area and other areas of the City, the City Council finds that the existing uses on the sites identified to accommodate the City's RHNA do not impede residential development during the period covered by the Housing Element.

2. General Plan Consistency, In accordance with Laguna Niguel Municipal Code section 9-1-117.1(g)(1): the City Council finds that General Plan Amendment GPA 21- 01A02 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 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 describing the resources and opportunities available to meet the needs of the residents.

Resolution No. 2023-1454 Page 6
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, and the Gateway Specific Plan area is prime for residential development for the following reasons:
• 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 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 784 residential units identified in the underutilized inventory in Table B-6.
• As identified in the Underutilized Sites description starting on page B-13 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 shown in Table B-3, ten 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. Additionally, all of the approved multi-family projects in the Gateway Specific Plan have exceeded the allowable density of 50 units per acre by electing to provide a "public benefit" to exceed 50 units per acre.
• All of the existing buildings on properties listed in Table B-6 are 40 years old or more, indicating significant market potential for redevelopment and all are developed with buildings with a floor area ratio (FAR) less than 0.5, indicating significant market potential for redevelopment. • The Apex Laguna Niguel 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 of 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.

Resolution No. 2023-1454 Page 7
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).
• Current, conservative estimates identify the valuation of Laguna Niguel property at $4 million dollars an acre when entitled to multifamily development. According to Core Logics' Property Detail Report for all of the underutilized properties identified in Table B-6, the value per acre for each of the properties is less than $4 million dollars an acre, with most hovering around the $1 million dollar acre valuation. Therefore, similar to the property owners of the ten developments identified in Table B-3, there are significant incentives to redevelop the properties for residential purposes.

3. Public Health Safety and Welfare. In accordance with Laguna Niguel Municipal Code section 9-1-117.1(g)(2), the City Council finds that GPA 21-01A02 would 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 the Southern California Association of Governments (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.

Resolution No. 2023-1454 Page 8
SECTION 4. City Council Actions. Based on the entire record before the City Council, including all written and oral evidence presented, the staff report, and the findings set forth above:

1. The City Council does hereby approve and adopt General Plan Amendment GPA 21-01A02, augmenting the 2021-2029 General Plan Housing Element, attached hereto as Exhibit 1 and incorporated herein by reference.

2. The City Council hereby authorizes the City Manager or their designee to make minor modifications to the Housing Element to address comments provided by the Department of Housing and Community Development on this Housing Element, provided that the modifications would not exceed the total amount of development accommodated by the Housing Element prior to revisions and would not result in new actions by the City that would require a commitment of $20,000 or greater.

PASSED, APPROVED, AND ADOPTED this 5t' day of December, 2023 Kelly Jennings, Mayor
ATTEST:

Marissa Asistin, CMC, City Clerk
Exhibits:

1. October 2023 Underlined Strikethrough 2021-2029 Revised Housing Element Update

2. Summary of HCD Comments and City Responses
EXHIBIT 1
October 2023 Underlined Strikethrough 2021-
2029 Revised Housing Element Update

CITY OF

LAGUNA NIGUEL
2021-2029
Housing Element
City Council Resolution No. 2023-1422
March 21, 2023October 2023 Draft
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THE CITY OF LAGUNA NIGUEL HOUSING
General Plan for the City of Laguna Niguel
Chapter 8 - HOUSING ELEMENT
Contents
I. Introduction ..1
Purpose of the Housing Element. 1
• Scope and Content of the Housing Elemer 1
C. Public Participation...... 1
D. Consistency with Other Elements of the General Plan. .2 II. Housing Needs Assessment. ....3
A. Population Characteristics. 3

1. Population Growth Trends.. 3

2. Age..

B. Household Characteristics
Household Size....

Housing Tenure.

Overcrowding
Household Income and Overpayment
C. Employment.

1. Current Employment.

D. Housing Stock Characteristics....

Housing Type and Vacancy..

2. Housing Age and Conditions..

Housing Cost
E. Special Needs.

1. Persons with Disabilities....

2. Elderly..

3. Large Households

4. Female-Headed Households..

5. Farm Workers.

6. Homeless Persons..

F. Assisted Housing at Risk of Conversion

1. Inventory of Assisted Units...

2. Units at Risk...

G. Low-and Moderate-Income Housing in the Coastal Zone .. ...25 H. 2021-2029 Housing Needs. .25
...25

1. Overview of the Regional Housing Needs Assessment

2. 2021-2029 Laguna Niguel Housing Need ...26
III. Resources and Opportunities ..27
A. Land Resources ....27
B. Financial and Administrative Resources 27

1. State and Federal Resources. ...27

2. Local Resources. ....28
c. Energy Conservation Opportunities ...28
IV. Constraints. .31
A. Governmental Constraints..... ...31

1. Land Use Plans and Regulations

2. Development Processing Procedures ...43

3. Development Fees and Improvement Requirements. .47
October March-2023

THE CITY OF LAGUNA NIGUEL HOUSING
B. Non-Governmental Constraints... ..48

1. Environmental Constraints .48

2. Infrastructure Constraints 48
Land Costs 49
Construction Costs 49
Cost and Availability of Financing.. 50

6. Requests to Develop at Lower Densities 50
C. Affirmatively Furthering Fair Housing (see Appendix D). ..50 V. Housing Plan... ,51
A. Laguna Niguel Housing Element Goals and Policies 51
B. Housing Programs. ..52
C. Quantified Objectives. ...63
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
Table II-1 Population Trends, 2000-2020 - Laguna Niguel vs. SCAG Region ...3 Table II-2 Age Distribution - Laguna Niguel.. ..4
Table 1I-3 Household Size - Laguna Niguel ... ..5
Table II-4 Household Tenure - Laguna Niguel vs. SCAG Region... ..5 Table II-5 Household Tenure by Age - Laguna Niguel ..6
Table 11-6 Overcrowding by Tenure - Laguna Niguel vs. SCAG Region.... ...6 Table 11-7 Overpayment by Tenure and Income Category - Laguna Niguel ..7 Table II-8 Extremely-Low-Income Households by Race and Tenure - Laguna Niguel ...7 Table II-9 Employment by Industry - Laguna Niguel... ...8 Table II-10 Employment by Occupation - Laguna Niguel. .8 Table II-11 Housing by Type - Laguna Niguel vs. SCAG Region... ...9 Table II-12 Vacant Units by Type - Laguna Niguel vs. SCAG Region ...9 Table II-13 Age of Housing Stock - Laguna Niguel vs. SCAG Region ..10 Table II-14 Income Categories and Affordable Housing Costs, 2021 - Orange County... 11 Table 11-15 Median Sales Price for Existing Homes - Laguna Niguel vs. SCAG Region . 12 Table II-16 Monthly Owner Costs for Mortgage Holders - Laguna Niguel vs. SCAG Region . 12 Table II-17 Percentage of Income Spent on Rent - Laguna Niguel... . 13 Table II-18 Percentage of Income Spent on Rent by Income Category - Laguna Niguel. ..13 Table II-19 Disabilities by Type - Laguna Niguel ..15
Table II-20 Disabilities by Type for Seniors 65+ - Laguna Niguel vs SCAG Region. . 15 Table II-21 Elderly Households by Income and Tenure - Laguna Niguel . 18 Table II-22 Household Size by Tenure - Laguna Niguel..... 18 Table II-23 Female Headed Households - Laguna Niguel • 19 Table II-24 Inventory of Assisted Units - Laguna Niguel 22 Table II-25 2021-2029 Regional Housing Needs Laguna Niguel . . 26 Table III-1 Land Inventory Summary - Laguna Niguel .. . 27 Table IV-1 Residential Land Use Categories - Laguna Niguel General Plan. .31 Table IV-2 Land Use Development Capacity - Gateway Specific Plan. 34 Table IV-3 Residential Development Standards ........... .36 Table IV-4 Permitted Residential Uses by Zoning District. 37 Table IV-5 Residential Parking Requirements.. 42
Table IV-6 Planning and Development Fees..... . 47
Table V-1 Quantified Objectives - 2021-2029 City of Laguna Niguel. . 63 October Mareh-2023 ii

THE CITY OF LAGUNA NIGUEL HOUSING
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 he need for housing in the community in terms of housing affordability, availability, adequacy, an iccessibility. The Element provides a strategy to address housing needs and identifies a series of specifi 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 TV); 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 March October 2023 1

THE CITY OF LAGUNA NIGUEL HOUSING
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.

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.

March October 2023 2

THE CITY OF LAGUNA NIGUEL HOUSING
Il. 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 o 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 e city s estimated total population is 65,316 according to the California Department of Finance. Over tl 000-2020 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

66.0 19.5

19.0 65.0

18.5 64.0 18.0

17.5 ₴

63.0 62.0

16.0 61.0 15.5

60.0 2005 15.0
2000 2010 2015 2020
• Luguna Niguet 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
March October 2023 3

THE CITY OF LAGUNA NIGUEL HOUSING

2. Age
Housing needs are influenced by the age characteristics of the population. Different age groups require different accommodations based on lifestyle, family type, income level, and housing preference. Table II-2 Table II-2
Age Distribution -
Laguna Niguel
4,000
3,000
2,000
1,000
50-84
1,000
2,000
3,000
4,000
• Male Female
Amencan Community Survey 2014-2018 5-year estimates
B. Household Characteristics

1. Household Size
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%).

March-October 2023 4

THE CITY OF LAGUNA NIGUEL HOUSING
Table II-3
Household Size -
Laguna Niguel
450% 17500

9.557

40.0%

35.0%

30.0% 6,040 2057
3930

25.0%
Households (% by size category) 2795

20.0%

3.347
606 1.473

10.0%. 867
50% 7 8%
00%
1 3 6 7+
Number of People per Household
#Renter Owner •Total
American Community Survey 2014-2018 5-year estimates.

2. Housing Tenure
Housing tenure (owner vs. renter) is an important indicator of the housing market. Communities need an occupied. The share of renters in Laguna Niguel is lower than in the SCAG region overall.

Table II-4
Household Tenure-
Laguna Niguel vs. SCAG Region

80.0%

70.0%

52.5%

47.5%,

40.0%

30.0%

20.0%.

10.0%

0.0%.

Laguna Niguel SCAG
# Owner (%) #Renter (%.)
American Community Survey 2014-2018 5-year estimates.

March-October 2023 5

THE CITY OF LAGUNA NIGUEL HOUSING
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
1,000
500
15-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 85+
#Owner 27 724 1,887 3,844 2,803 2,740 3.681 1,551 503
Renter 371 1,849 1,766 1,553 576 420 679 252 134
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

18.0%

15.6%

7.6%.

6.4%

4.9%

4.0X, 2.2%

2.0%. 0.7% 13%

0.1%:

0.0x

1.0+/room 1.5t/coom 10+/room 1.5+/room
Owner Owner Renter Renter
• Luguna 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.

March October 2023 6

THE CITY OF LAGUNA NIGUEL HOUSING

4. Household Income and Overpayment
Household income is a primary factor Table II-7
affecting housing needs in
Overpayment by Tenure and Income Category -
community. Recent Census estimates Laguna Niguel
reported that about 3.7% of Laguna
Niguel's households are experiencing Income by Cost Burden (Renters only) costume cos seT * 30% Total poverty, compared to • 7.9% of toxsehold income less than is: 30% HAMP 955 7:0 :,150 households in the SCAG region. tox choid Income +30%, to lens than or= 509 640 975 HAMFI
Poverty thresholds, as defined by the Househoid Income -50% to less. than or = 30% 1,630 1, 850 ACS, vary by household type. In 2018, HAMFI
475 55 925
a single individual under 65 was 2445
Household Income - 100%, HAMFI 250 35
considered in poverty with a money 2015 7,390
income below $13,064/year while the Total 4,230
Income by Cost Burden (Orners onty) Cost burden Total
threshold for a family consisting of 2 * 30%
adults and 2 children was $25,465/year. 1,205 1,050 1.475 According to State housing policy, 545 105 1,305
HAMFI
overpaying occurs when housing costs Household Income +50% to less-than or= 80% exceed 30% of gross household
income. Table II-7 displays recent Househoid Income -100% HAMFI estimates for overpayment by house-
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
analysis of the housing needs of Table II-8
Extremely-Low-Income Households by Race and Tenure-
extremely-low-income (ELI) households, Laguna Niguel
which is defined as less than 30% of area
median income. According to recent Households Share
Total below 30% below 30%
HUD estimates about 2,475 Laguna Households HAMFI HAMFI Niguel households are within the 18,280
White, non-Hispanic 1,785 9.8%
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
overcrowding. Renters are about twice as Hispanic 3,210 310 9.7% likely to have extremely low incomes than TOTAL 24,845 2,485 10.0% homeowners. Renter-occupied 7.445 1,135 15.2%
Owner-occupied 17,405 1,340 7.7%
The resources and programs to address
this need are generally the same as for TOTAL 24,850 2,475 10.0% 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.

March October 2023

THE CITY OF LAGUNA NIGUEL HOUSING
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.

Current Employment
Current employment and projected job growth have a significant influence on housing needs during this Services with 5,206 employees (15.3% of total).

Table II-9
Employment by Industry -
Laguna Niguel
Agriculture | 86
Construction 1,561
Manufacturing 3.082
Wholesale Rrade 1,261
Retail Trade 3.523
Transportation 1,171
Information 977
Finance • 4,161
Professional Services 5.206
Education & Social Services 7,299
Arts. Entertainment. Recreation 3.320
Other 1,485
Public Administration 962

1.000 2.000 3.000 4,000 5.000 6.000 7.000 8.000
American Community Survey 2014-2018 5-year estimates using groupings of 2-digit NAICS codes. 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

30.0% 9,044 743617
1,500.551

20.0% 1.118.977
4,498
675.894

10.0% 1.973
989

0.0% Production
Management Services Sales Natural Resources
• Laguna Niguel 51 6% 132% 265% 29% 58%
• SCAG 34.2% 19.6% 22.8% 8.8% 14.6%
• Laguna Niguel • SCAG
American Community Survey 2014-2018 5-year estimates using groupings of S0C codes.

March October 2023 8

THE CITY OF LAGUNA NIGUEL HOUSING
D. Housing Stock Characteristics
This section presents an evaluation of the characteristics of the community's housing stock and helps in rooms, occupied as separate living quarters, or if vacant, intended for occupancy as separate living quarters.

1. 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%
50%
40%
30% 5,107 5.146
20% 1,408
10% 48
0% Single-Family Multifamily. 2-4
Single Family Multifamily, 5+ Units Mobile Homes
Detached Attached Units
• Laguna Niguel (%) 55.4% 19.5% 54% 19 6% 0.2%
# SCAG (%) 54.4% 7.2% 75% 27.3% 3.5%
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
40% 37.6%
| 33.5%
· 35%

27.7%

23.0%

20.7%

16.0%
114%

7.9% 7.2%
48% 5.4% 4.5%
5% 0.0% 03%
0%
For Rent Rented For Sale Sold Seasonal Migrant Other
• Laguna Niguel • SCAG
American Community Survey 2014-2018 5-year estimates. ( March October 2023 9

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 stringent limits on the amount of lead in paint were imposed may have interior or exterior building components coated with lead-based paint. Housing units that are more than 30 years old are the most likely to need rehabilitation or to have lead-based paint in deteriorated condition. Table II-13 shows the age 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%2
30%
Percent of Total Units 25%
20%
15%
10%
5%
0% 2014& 1990- 1980- 1970 1960- 1950- 1940- 1939 d
20000 1969 1949
Later 1999 1989 1979 1959 Earlier
Laguna Niguel (%) 0.8. 0.7% 4.7% 24.2% 44.5.: 17.7% 5.5% 12% 0.2% 05% SCAG (5y 1.0% 1.5% 10.1% 9.5% 15.0K 16.3% 14.5% 15.9%. 6.9% 9.3% • Laguna Niguelt ; aSCAG(X)
Amencan 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 problems. It is estimated that approximately 5% of the homes in the City's older neighborhoods, typically built in the late 1960s and early 1970s, are in need of structural repairs consisting primarily of new roofs and window replacements. Approximately 6,000 dwelling units in Laguna Niguel were built prior to 1980; therefore, it is estimated that approximately 300 dwelling units may be in need of some structural repair, which represents about 1% of the city's total housing stock. According to Code Compliance staff, areas that are more likely to exhibit signs of maintenance issues include neighborhoods without a homeowners association in the northeastern quadrant of the City (Adelanto Drive, La Plata Drive, Via Valverde. Via San Sebastian, Nueva Vista Drive, Armagosa Drive, Aloma Avenue, Calle Becerra, Monte Verde Drive. Paseo Lomita, and Placida Avenue) and older multifamily units in the northern portion of the City near SR-73 (Casa La Paz, Milano, and Laguna Gardens).

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% 30% of AMI, moderate (81-120% of AMT) 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 March October 2023 10

THE CITY OF LAGUNA NIGUEL HOUSING
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.

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
Income Category Maximum Income Affordable Rent Affordable Price (est.) Extremely Low $40,350 $1,009
Very Low $67,250 $1,681
Low $107,550 $2,689
Moderate $128,050 $3,201 $500,000
Above moderate Over $128,050 Over $500,000
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.

HCD memo of 2/1/2012 (http://www.hcd.ca.gov/hpd/hrc/rep/state/incNote.html) Affordable rent and purchase prices are based on county median income.

March October 2023 11

THE CITY OF LAGUNA NIGUEL HOUSING
Table II-15
Median Sales Price for Existing Homes -
Laguna Niguel vs. SCAG Region
$900.000 200.0%
$800,000 1800%
160 0%
$700,000
140.0%
$600,000
1200%
$500,000 100 0%
$400,000 80 0%
$300,000 60 0%
$200.000 400%
$100,000 20.0%
$- 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.

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

Table II-16
Monthly Owner Costs for Mortgage Holders -
Laguna Niguel vs. SCAG Region
40%

33.4%
35:% 30.7%
30% 25.1% 25.1%
25:%

19.6%
20% 15.4%

13.7% 12.3%
15%

6.9% 9.5%
10% 5.1%

0.5%.0.5% 2.2%
0%
<$500 $500-$1000 $1000-$1500 $1500-$2000 $2000-$3000 $3000-$4000 >$4000 Mortgage - Monthiy Payment
• 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.

March-October 2023 12

THE CITY OF LAGUNA NIGUEL HOUSING
Table II-17
Percentage of Income Spent on Rent-
Laguna Niguel
2,500 2,346
1 2,000
Ise
910
761 751 695 708
623
401
145 260
<10% 10-15% 15-20% 20-25% 25-30% 30-35% 35-40% 40-49% >50% Not Computed
Percent of Income Spent on Rent
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 ПI-18
Percentage of Income Spent on Rent by Income Category - Laguna Niguel
100%
90%
80%.
70%
60%
Number of Renter Households 50%
40%
#>50%
30%
20% #30-49%
10'%, 20-29%.
0% $20,000 to $35,000 to $50,000 to $75,000 to $100,000 or =<20%, Less than
$20,000 $34,999 $49,999 $74,999 $99,999 more
443 935 597 299 65
$30-49-x, 39 42 152 1,082 545 166
20-29% 32 139 340 1,134
• <20% 29 36 45 1,056
income Category
American Community Survey 2014-2018 S-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 o1 overpayment, overcrowding, or other housing problems
March-October 2023

THE CITY OF LAGUNA NIGUEL HOUSING
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 website34 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.

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). https://www.cityoflagunaniguel.org/1287/Homeless-Services https://www.cityoflagunaniguel.org/668/Housing-Resources March October 2023 14

THE CITY OF LAGUNA NIGUEL HOUSING
Table II-19
Disabilities by Type -
Laguna Niguel
Independent Living 1,836
Self-care 1,112
Ambulatory 2,029
Cognitive 1,861
Vision
Hearing 1,987
500 1,000 1,500 2,000 2,500
American Community Survey 2014-2018 5-year estimates.

Table II-20
Disabilities by Type for Seniors 65+ -
Laguna Niguel vs SCAG Region
25 0. 22.9%
฿ 200% 17.5%
2 150x
126x13.1X 12.5%
1100= 10.1%. 10.5% 10.0%

6.6%
I sor 5.5% 5.5%

3.4%
00%
Heanng Vision Cognitive Ambulatory Seif-care Independent Living # Laguna Niguel Percent SCAG Region Percent
Amencan Community Survey 2014-2018 S-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;
March October 2023 15

THE CITY OF LAGUNA NIGUEL HOUSING
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 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- 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.

March October 2023 16

THE CITY OF LAGUNA NIGUEL HOUSING

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 Citizens Committee as an advisory group to the City Council and the Parks & Recreation Commission on Hop to tect count and to fake die in on mon 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' 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 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 information, such as guides for financial and legal matters, nutrition and exercise, safety, prescription medicine, diseases and conditions, and transportation.
https://www.cityoflagunaniguel.org/44/Senior-Citizens-Committee https://www.cityoflagunaniguel.org/25/Sca-Country-Senior-and-Community-Center https://agewellseniorservices.org/
March October 2023

THE CITY OF LAGUNA NIGUEL HOUSING
Table II-21
Elderly Households by Income and Tenure -
Laguna Niguel
Percent of Total Elderty
Owner Renter Total Households:
come category, relative to < 30% HAMFI 605 240 845 11.8% surrounding area:
30-50% HAMFI 870 190 1,060 14.8%
50-80% HAMFI 1,195 265 1,460 20.3%
80-100% HAMFI 525 85 610 8.5%
> 100% HAMFI 2,975 225 3,200 44.6%
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 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 indicates that the need for large units with 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.

Table II-22
Household Size by Tenure -
Laguna Niguel
Owners Renters
Household Size | Households % Households %
1 person 19.5% 2,411 28.8%
2 persons 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%
Totals 17,000 100% 8,361 100%
Source: 2021 ACS 5-year estimates
March October 2023 18

THE CITY OF LAGUNA NIGUEL HOUSING

4. Female-Headed Households
(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 6 | 0.9%; 222
FHH w/children • 3.2%; 820
Totel FHH 7.9%; 2013
Total Households 25360
5000 10000 15000 20000 25000 30000
Percent of total househods; Number of households
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. re no significant agricultural operations within Laguna Niguel, the need for permanent farmworker housin s of less concern than in other areas where large-scale agricultural operations exist. The needs of lowe 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 March October 2023 19

THE CITY OF LAGUNA NIGUEL HOUSING
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 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 TV 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.

Throughout 2020 and 2021, due to the COVID-19 pandemic, the need for critical resources and outreach services increased. To support this need, the City Council approved the award of additional federal grant funding (CDBG-CV) to Mercy House as well as to other local service providers including Family Assistance Ministries (F.A.M.) and South County Outreach. This funding has provided Laguna Niguel with increased 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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THE CITY OF LAGUNA NIGUEL HOUSING
resources for homeless outreach and
diversion services, residential rental
outh count
ARC
assistance, utility assistance, utreaci
emergency transportation and
Impact LAGUNA
nutrition/food needs.
on the city
The City's efforts to end homeless- NIGUEL
ness focus on a 3-pronged, In 2021...
collaborative partnership
includes City Administration, Local
Service Providers and Behavioral Clients Served from Laguna Niguel Health Liaisons (BHLs), formerly
78 271
known as Homeless Liaison 5%
households individuals
Officers. This collaborative of South County
Outreach clients
approach towards providing 2% children
live in the city of
resources and outreach & diversion City of Laguna Niguel Laguna Niguel services to individuals experiencing Client Demographic 16% seniors homelessness is one that is safe,
supported, and dignified. The 151 Laguna Niguet clients 48% ultimate goal of this partnership is to were drecty impacted by COVID-19 undermployed workers/ 58% currently employed
secure temporary and/or permanent
housing for individuals that are in
need while maintaining the safety of $45,507 in financial assistance to city residents the community. $44,621 in $1,886 in utility 227 residents rental assistance to assistance to city shopped our food pantry The City's efforts to assist those that 282 times
city residents
are on the verge of homelessness
focus on a collaborative partnership AT COURY TO TO moNT 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 remain consistently housed. Local service providers work with youth, families, and single adults to identify and meet 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 Niguel
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
• South County Outreach
Providing rental assistance, utility assistance, food subsidy programs and outreach services to Laguna Niguel residents
Collaborate with Mercy House
March October 2023 21

THE CITY OF LAGUNA NIGUEL HOUSING
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.
7,569 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
Inventory of Assisted Units -
Laguna Niguel
Total Units/ Elations At Risk
Project Type of Assistance Affordable Units Project Type 2021-2031? Alicia Park Apartments 223(a)(7)/221 (d)(4)M 56/56 Sec. 8 2023 Yes 1 Village La Paz Section 8 NC 100/100 Sec. 8 20272 Yes
Sources:

City of Laguna Niguel Community Development Dept.

Califomia Housing Partnership Corporation, 2021

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 Prepayment of HUD mortgages:
a. 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 March-October 2023 22

THE CITY OF LAGUNA NIGUEL HOUSING
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.

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 range from refinancing the mortgage at a lower interest rate to establishing higher rents. If at any point 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
g. Permanent Local Housing Allocation Program (PHLA)
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 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.

March October 2023 23

THE CITY OF LAGUNA NIGUEL HOUSING
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.

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.

3. 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 $650, 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:
a. Orange County Community Housing Corp. (Santa Ana)
Jamboree Housing Corp (Irvine)
c. Mary Erickson Foundation (San Clemente
d. National Community Renaissance of California (Rancho Cucamonga • 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.

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.

Affordable Housing Clearinghouse - serves a mortgage brokerage that specializes in financing affordable housing projects.

March October 2023 24

THE CITY OF LAGUNA NIGUEL HOUSING
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.

Prior to the incorporation of Laguna Niguel in 1989, 727 housing units were permitted by the County within the portion of the Coastal Zone that is now part of the City. One apartment project, Seaview Summit, was built prior to incorporation and included 48 deed-restricted lower-income units. The affordability covenants on those units subsequently expired and the units converted to market rate. A small number of new single- 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 IT-25.

Table II-25
2021-2029 Regional Housing Needs -
Laguna Niguel
Very Low* Low Moderate Above Mod Total
434 1,207
*50% of the Very-Low-Income need (174 units) is assumed to be ELl 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.

March October 2023 26

THE CITY OF LAGUNA NIGUEL HOUSING
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 uitable for residential development, including vacant sites and sites having potential for redevelopment, an n analysis of the relationship of zoning and public facilities and services to these sites." A detailed invento 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 Very-Low Low Moderate • Above-Mod Approved projects (Table B-32) 12 917995 9291.007
Vacant sites (Table B-54) 110- 110- 3323 64144 317767
Underutilized sites (Table B-56) 254353 117235 182196 567- 1,120784 Potential ADUs 12 24 20 64
1,5569891,0 2,4301,8751
388377 251259 235249239 93219321,9
47 Totals 22
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 2022October 2023 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.

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 funds 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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THE CITY OF LAGUNA NIGUEL HOUSING
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
fficient buildings does not lower the price of housing. -hovie resui dines does molower the price his as Humper, bore and enry is doseasedo initure, retrofitting existing structures with energy-conserving features can result in a reduction in utility costs.

Examples of energy conservation opportunities include weatherization programs and home energy audits, installation of insulation, installation or retrofitting of more efficient appliances and mechanical or solar energy systems, and building design and orientation that incorporates energy-conservation considerations.

The City enforces all provisions of Title 24 of the California Administrative 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;
March October 2023 28

THE CITY OF LAGUNA NIGUEL HOUSING
• 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
The Laguna Niguel General Plan does not specify maximum densities in units per acre; however, the maximum buildout is determined b welling unit allocations assigned to individual community profile areas and sub-profile areas identified in the Land Use Element. Nearly all sul rofile areas with the exception of the Gateway Specific Plan area have been built ou 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 March-October 2023 31

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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 March October 2023 32

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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 offices, 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 0 0 76,480
00 323,215
00 *
C 220 305,460 0
200 0 187,639 0 200°
1,427 87,338 203,425
142 173,900
IC-IO TIMO 142 247,639
863 76,012 240,103
30,492 *** 3.5
62,509
0 0 14.3
0 58,150 150**
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 & I 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 March October 2023 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 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 43 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

0.65 (from 1.0 up to 1.65) is granted for mixed-use projects as compared to exclusively non-residential projects. When community benefits are provided, mixed-use projects may reach 3.0 FAR compared to a maximum 2.0 FAR for exclusively office projects. Purely residential projects are also permitted within the 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). The City has included Action 3.2 to evaluate and amend the Gateway Specific Plan to mandate that any public benefit provided to achieve a density of higher than 50 du/ac shall include a provision of affordable housing.

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 17 17 (a) 17 n/a
Minimum Side Yard (ft.)3 8 5 (a) 0/51 n/a
Minimum Rear Yard (ft.) 25 25 152 102 (a) 102 n/a
Slope Setbacks 10 10 10 10 10
(min. from tops and toes of slopes over 10 feet high)
Perimeter Setbacks n/a 10/25 n/a 10/25
(10 foot minimum and 25-foot average minimum) n/a n/a n/a 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 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 TV-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 | RA | RM CN CC • PI Residential Uses
Single-Family Detached P P P P
Two Unit - Attached P P
Multi-Family (townhomes)
Multi-Family (apartments or P
condominiums)
Manufactured Housing P P
Mobile Home'
Second Units
Special Needs Housing
Transitional & Supportive Housing
Emergency Shelters P P P P
Residential Care Facilities P P P P P P P
(6 or fewer persons)
Managed Care Facilities U2 U2 U2
(7 or more persons)
Single Room Occupancy U
Source: Laguna Niguel Zoning Ordinance P = Permitted (ministerial) A = Accessory Use (ministerial) U = Use Permit Notes.

Mobile home parks are not specifically identified in zoning ordinance. However, mobile home units are permitted in the districts show Allowed when combined with the Managed Care Overlay District (M and leached, multice riy apartorens, may of turn ous induding nings faity cesary cloth alached (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 ge-restricted senior housing that does not include services (such as assisted living or medical care) i ermitted as a residential use subiect to the same standards and procedures as other non-age-restricte 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.

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 who becomes a member of the household, and the residential activities of the household are conducted on a nonprofit basis. There is a rebuttable presumption that integral facilities do not constitute single housekeeping units. Additional indications that a household is not operating as a single housekeeping unit include but are not limited to: the occupants do not March October 2023 38

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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 each jurisdiction to identify one or more zoning districts where emergency shelters are allowed as a permitted use without a discretionary permit, such as a conditional use permit, and limits standards that apply to emergency shelters to those listed in Government Code Section 65583(a)(4).

California Health and Safety Code Section 50801(e) defines an emergency shelter as "housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person." AB 2339 (2022) has updated emergency shelter requirements to: expand the definition of emergency shelters to include other interim interventions. including but not limited to. navigation centers, bridge housing, and respite or recuperative care; require that zoning designations identified to allow emergency shelters as a permitted use without a conditional use permit or other discretionary permit must allow residential uses; and require analysis of any adopted written objective standards for potential governmental constraints.

The Laguna Niguel Zoning Ordinance does not include a definition of emergency shelter. Further, the Zoning Ordinance does not contain any development standards or conditions related to emergency shelters. Action

2.2 in the Housing Plan is included to update the Zoning Ordinance to provide a definition of emergency shelter consistent with the requirements of State law and includes additional direction regarding modifications to address AB 2339.

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The Zoning Ordinance allows emergency shelters as a permitted use by-right in the CN, CC. CO. BP. PI, and MU-TC zones. The MU-TC zone allows multifamily residential uses with a discretionary permit when the baseline commercial thresholds have been achieved for the building site pursuant to the General Plan designation. The CN, CC, CO. BP. and PI zones do not allow for single- or multi-family residential uses.

The City's provisions for emergency shelters generally align with the requirements of State law: however, with the passage of AB 2339. State law has recently changed to require zoning designations identified to allow emergency shelters as a permitted use without a conditional use permit or other discretionary permit in a zone that also allows residential uses. The City's Zoning Code does not conform to these recent requirements. Program 2 of the Housing Plan will revise the Zoning Ordinance to allow emergency shelters as a permitted use without a discretionary permit within a zone that allows residential uses, consistent with the requirements of Government Code Section 65583(a)(4), and commits the City to applying these standards to a vacant parcel of at least 0.15 acres.

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. Regarding the adequacy of sites to accommodate Laguna Niguel's unsheltered population, the City has identified underutilized sites with CC zoning that are suitable for emergency shelters and could accommodate shelters of varying size, including: APN 634-361-32 0.6 acres) and APN 634-361-29 (0.8 acres), located in the northwestern portion of the City near the intersection of Alicia Parkway and Avila Road. These sites could accommodate a shelter the size of a single-family home (at least six bed capacity) at a minimum; or a larger shelter, which are more likely on sites that are 0.25 acres or larger. Government Code Section 65583(a)(4)(I) indicates that capacity for a site shall be demonstrated by dividing the square footage of the site by a minimum of 200 square feet per person: for the purposes of this analysis, the City assumes that only 0.15 acres (6.534 square feet) of each site would be used for emergency shelter uses. Based on this standard, the sites identified each have adequate capacity to accommodate emergency shelters with more than 32 beds apiece that could house the City's most recent (2022) unsheltered homeless population count (29 persons). The identified sites are suitable for emergency shelters, as they are within close proximity (0.5 miles) to amenities and services (health care, grocery stores and retail, and employment) that serve the homeless population and are within 0.25 miles of public transit. connecting the sites to other amenities and social services.

As previously identified, the City has included Program 2 in the Housing Plan to create a new zoning mechanism that allows emergency shelters and residential uses in the same zone, consistent with State law. and directs the City to apply the zoning standard to at least 0.15 acres of vacant land. 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
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
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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 ГV-5, below.

The required parking is typical for most cities in Orange County and is not considered to be a constraint on he production of affordable housing. This is especially true for Laguna Niguel, which is essentially built-ou vith 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 Dwellings 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 for each bedroom in excess of three.

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 seq. 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 probibiting 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 865852.7).

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.
j. 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.

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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.

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

Compliance with CEOA. 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 City's Community Design Guidelines (Title 9. Division 1, Article 2, Subarticle 9) applies to projects that require a site development or use permit. This includes attached residential projects and non-residential projects. which includes mixed-use projects that are predominantly commercial. Single-family detached homes are not subject to design review. An application for design review is submitted in conjunction with the project's associated site development or use permit. Design guidelines for non-residential projects are set forth in Sections 9-1-92.1 through 9-1-92.6 and include topics related to site planning (e.g., site access.

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parking, lighting, pedestrian spaces, loading and trash areas: landscaping: architecture (e.g.. architectural style, building mass and form, building materials); and cultural depictions. Design guidelines for attached residential projects are set forth in Sections 9-1-93.2 through 9-1-93.4 and include topics related to site planning (e.g., site access and circulation. streets, setbacks, parking, outdoor lighting, parks and open space, trash areas and enclosures): landscaping: and architecture. Many of the topical areas include qualitative (i.e., discretionary) guidelines and criteria that are designed to provide flexibility by allowing developers to identify the best means of complying with the City's standards. Discretionary projects are reviewed by the Planning Commission: a public hearing is required. Applicable projects may be reviewed administratively by the community development director in accordance with Subarticle 11, and a public hearing is not required. In order for a project to be approved, the decision making authority must find that the project is consistent with the overall goal and objectives of the community design guidelines, which are as follows:
• Goal: The overall goal is to enhance the quality of the manmade environment in the city. • Objective 1: To create a set of explicit design standards to be used by city reviewing bodies to help guide decisions for approval or denial of proposed development projects and thereby protect the general welfare of the community.
• Objective 2: To create a set of explicit high quality design standards to be used by prospective developers and their site planners, architects, landscape architects, and engineers in designing proposed development projects.
• Objective 3: To encourage new development projects which:
• Utilize a variety of architectural styles and site designs:
• Incorporate quality design features:
° Are both inviting and user-friendly to people:
• Offer pleasing and interesting views to pedestrians, motorists. and neighbors; and • Are architecturally distinctive yet in harmony with the surrounding natural and manmade environments.
• Objective 4: To provide a consistent approach to site planning, building design, signs, graphics. color, materials. lighting, landscaping, and other design elements. • Objective 5: To provide for city review of exterior modifications to commercial, industrial, office. and multiple-family residential projects which were in existence prior to the establishment of these Guidelines, while at the same time providing for ease in processing of such review with a minimum of cost and time to the applicant.

The City works with applicants early in the process to find solutions to potential design issues and avoid delays in permit processing. Additionally. the City encourages the joint processing of related applications for a single project. These procedures save time, money, and effort from both the public and private sector and could substantially decrease the costs for a developer. However, the City recognizes that the current design review process includes certain subjective terminology that may constitute a constraint on development of attached and mixed-use residential projects. To resolve these potential constraints. Action 3.12 will update the City's community design guidelines and permit procedures in order to provide an increased level of objectivity, consistent interpretation, and certainty in the design review process.

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.1.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 March October 2023 45

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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 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 (LP). 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 March October 2023 46

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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.)

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 Fees3
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 cost 2%
$15,544
Est.% of total development cost? 3%
Source: City of Laguna Niguel Community Development Department 2021 Notes:

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

4. 6. Assumes a 1,000-sq.ft. apartment uni
Based on estimated total cost of $500,00
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 March October 2023 47

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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.

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 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.

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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 (MW). Almost all of the water supply is purchased from MWD, 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 b the Orange County Flood Control District (OCFCD). Five regional facilities serve the City, four of which re located within the City limits, with the fifth facility running adjacent to the City on its westerly boundary lows from within the City are conveyed to these facilities by local storm drain facilities or overland flow Local drainage facilities consist mostly of underground closed conduits located in the developed areas of the 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 Nigue Infrastructure to deliver electricity and natural gas throughout Laguna Niguel is currently in place. SDG&l 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 depending on construction type and location.

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5. Cost and Availability of Financing
Laguna Niguel is typical of Southern California communities with regard to private sector home financing rograms and interest rates. In recent years, mortgage interest rates have been very low by historic standards esulting in increased affordability for home purchasers with good credi

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) March October 2023

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V. HOUSING PLAN
A. Laguna Niguel Housing Element Goals and Policies
Chapters II, III and TV of the Housing Element evaluate the City's housing needs, opportunities and constraints, while Appendix A presents a review of the previous element. This Housing Plan reflects the City's experience during the previous planning period and sets forth the City's goals, policies, and programs 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 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 implementation of housing programs that require financial assistance from public agencies. In pursuing funding opportunities, in distributing grant allocations (such as CDBG), or in assisting other agencies or private entities, the City's decisions will be • 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.

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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: sportunitions to reduce regulatory consrains which impede equal housing Policy 2.3: Ensure that City land use and housing policies and regulations do not create nreasonable barriers to housing and housing support services to special need. population groups such as the elderly, families with children, persons with disabilities 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.

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 HNA allocation in all income categories. In order to ensure that adequate capacity i raintained 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 Housing 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. • City staff will provide administrative assistance to affordable housing developers in preparing grant applications.

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• A current inventory of vacant sites suitable for multi-family residential or mixed-use development will be posted by July 2024 and maintained on the City website.

At least once each year The City will contact local developers and publicize development opportunities within the Gateway Specific Plan area by December 2024 and at least annually thereafter.
• 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 Fable B 4-Table B-5 by July 2024 and annually thereafter 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 - Housing for Persons with Special Needs
Objective: Promote and assist in the development of housing for persons with special needs.

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) The City will process a Code amendment to allow emergency shelters consistent with the requirements of Government Code Section 65583(a) (4) and to allow emergency shelters ancillary to permitted places of worship and churches, consistent with the federal Religious Land Use and Institutionalized Persons Act. The Code will be revised to define emergency shelters consistent with Government Code Sections 65582 and 65583(a)(4) and to identify at least a zone or zones where residential uses are permitted; where emergency shelters are allowed as a permitted use without any discretionary permit; and where there is adequate capacity to accommodate at least one year-round emergency shelter that is adequate to accommodate the unhoused need in the City.

Emergency shelters will be subject to objective standards, as allowed by Government Code Section 65583(a)(4)(B) to address:
• The maximum number of beds or persons permitted to be served nightly by the facility.

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• Sufficient parking to accommodate all staff working in the emergency shelter. provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.

The size and location of exterior and interior onsite waiting and client intake areas.

The provision of onsite management.
• The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart.
• The length of stay.
• Lighting.
• Security during hours that the emergency shelter is in operation.

Timeframe: December 2023April 2025.

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).

Timeframe: 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; annual monitoring and reporting throughout the planning period 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 neeessary findings for residential eare facilities for seven or more persons are consisten with State law and fair housing requirements allow group homes for seven or more persons in all zones allowing residential uses with objectivity to facilitate approval certainty and similar to like uses of similar form in the same zone.

Timeframe: December July 20243
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 March October 2023 54

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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 evaluate and amend the Gateway Specific Plan "community benefit" to mandate that any public benefit provided to achieve a density of higher than 50 du/ac shall include a provision of affordable housingdefinition to prioritize the development of units available to very low and low income households. To assist with this effort, the City will prepare a pro forma analysis on at least two typical development sites in the Gateway to test potential incentives, development standards, and inclusionary housing requirements and determine financial feasibility.

Timeframe: Complete pro forma testing by December 31, 2023: Specific Plan amendment by June 30. 2025 by December 31, 2023.

Responsible Agencies: Community Development Department, Planning Commission, City Council.

Funding Source: Departmental budget.

Action 3.3: The City will engage and 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.

Timeframe: Assistance to Engagement with affordable housing developers on an annual 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 3.4: 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 3.1 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_including identifying development opportunities to affordable housing developers; annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

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Action 3.5: In accordance with State law, the City updated regulations for accessory dwelling units in 2021. Opportunities for ADU development and SB 9 unit/lot splits will be publicized on the City website, at City Hall and at other community facilities. Strategies to encourage ADU and SB 9 unit production will include resource materials, expedited review, social media educational information, sample site plans, and a dedicated ADU and SB 9 webpage.

Objectives and Timeframe:

1. Monitor progress of ADU permitting, construction and affordability levels (including those that are rent-free and thus affordable to extremely low-income households) twice in the planning period. If. by December 31, 2023, and December 31, 2026, ADU activity is:
• Within 5 percent of projected trendline; no change is necessary.

Within 10 percent of projected trendline, identify and initiate efforts to bolster outreach and awareness.
• Within 25 percent of projected trendline, evaluate whether ADU capacity is needed to maintain adequate capacity to accommodate the City's RHNA allocation. I[ADU capacity is needed, identify and initiate additional actions within 12 months to increase ADU activity to necessary levels. • More than 25 percent below projected trendline, reduce projections to meet actual activity and rezone additional property, if necessary, within 12 months.

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 inerease ADU construetien

2. Facilitate ADU construction through:
• Publicize opportunities for ADU construction and SB 9 unit/lot splits 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 and SB 9 unit 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, and submit to HCD by July 2024. • Perform outreach to all (100%) homeowner associations in higher opportunity areas and RCAAs to promote ADUs and SB 9 units annually. • 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 andlor SB 9 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 and/or SB 9 units annually.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

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Action 3.6: 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 3.7 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 June 30, 2024; annual monitoring and reporting throughout the planning period through the APR.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget.

Action 3.8 The City will prepare and post on the City website written procedures for SB 35 Streamlined Ministerial Approval.

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 and distribute a list of such lands to regional affordable housing developers.

Timeframe: Review of City-owned properties by July 2024 and aAnnual review thereafter.

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 and/or special needs housing.

Timeframe: December 2023.

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

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Action 3.12: The City will evaluate its site development permit process and requirements to identify and remove constraints to the production of housing. The evaluation will include interviews with past and current development applicants who were or are subject to the site development permit process. Based on this evaluation, the City will modify existing or establish new objective standards as part of the site development permit process to remove constraints to the production of housing.

Timeframe: Conduct interviews by December 2024; and if necessary, modify existing or establish new objective standards by December 2025.

Responsible Agency: Community Development Department.

Funding Sources: Departmental budget.

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, contact property owners of at-risk properties three vears, twelve months, and six months prior to conversion to market rate and 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 Three vear, twelve-month, and six monthAnnual 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 March October 2023 58

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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 and/or PHLA 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 and/or PHLA program administration.

Responsible Agency: Community Development Department.

Funding Source: Departmental budget; CDBG funds; PHLA funds.

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.

Action 4.4: Identify and implement at least one capital improvement project annually that is located in areas of higher diversity, lower income, and/or areas with higher proportions of special needs population (i.e., persons with disabilities, seniors).

Timeframe: Annual identification of capital improvement project throughout the planning period and implementation of programs at least annually.

Responsible Agency: Public Works Department, City Manager, City Council.

Funding Source: Capital Improvement Program Budget, Grant Funds.

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 March-October 2023 59

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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 actions include the following:
• 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 by July 31, 2025 and annually thereafter 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.

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. Expand resources by December 31, 2024 and update annually thereafter.

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.

Make educational materials available on the City website, newsletters and through March October 2023 60

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social media, and provide materials at City events as appropriate. Expand resources by December 31, 2024 and update annually thereatter.
• 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 by December 31, 2024 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 a strategic plan by December 31, 2024 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 1 & 3) 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 dwelling 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.

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.

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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 commenty Development an will dietric to ce Departmen and Hosting, 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.

Whenever land use regulations, land use designations, or housing programs are roposed for adoption or modification, the Community Development Department shal. nalyze the proposed changes to determine consistency with the Housing Element an 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.

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C. Quantified Objectives
The City's quantified objectives for new construction, rehabilitation and conservation are presented in Table V-1. As shown in Table B-1, Land Inventory vs RHNA, a total of 995 units were approved for new construction as of October 2023, therefore the City is on pace to meet the total quantified objectives for new construction. For rehabilitation, per Action 4.2, the City is initiating in 2023 a new Housing Rehabilitation Program with a goal of rehabilitating 15 homes with the use of CDBG and/or PHLA funds by the end of the planning period. Regarding conservation, there are currently a total of 156 units at-risk for conversion. One of the two developments, Village La Paz renewed their HUD Section 8 Project-Based Rental Assistance (PBRA) contract for another five years, until June 30. 2027. As of October 2023, it is unknown whether the remaining 56 units at Alicia Apartments will elect to convert to market rate. The City will conduct outreach and coordination to facilitate preservation of these units as identified in Action 4.1.

Table V-1
Quantified Objectives - 2021-2029
City of Laguna Niguel
Income Category
Program Category Ex. Low V.Low Low Mod Upper Totals
New Construction' 174 174 202 223 434 1,207
Rehabilitation 5 5 5 0 0 15
Conservation? 156 156

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

2. Preservation of units at risk of conversion to market rate housing March October 2023 63

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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 Housing Element, the appropriateness of goals, objectives and policies, and the progress in implementing programs for the previous planning period. This appendix contains a review the housing goals, policies, and 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 ard 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 FY19-20 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 FY19-20 reporting period.
• 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 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. • 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 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 final quarter of FY19-20.

South County Outreach expended $10,235 to assist 346 people by providing access to their extensive oodbank. Additionally.
program was modified to provide a drive-thru food bank during the final quarter of FY19-20. • 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 AI 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 AI 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 March JuneOctober 2023 A-2

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recommendations, the program was modified to provide a drive-thru food bank during the final quarter of FY19-20.

South County Outreach expended $10,235 to assist 346 people by providing access to their extensive oodbank. Additionally, 47 individuals benefitted from rent and utility assistance, which helper revent the loss of housing. Due to Coronavirus pandemic social distancing recommendations, th program was modified to provide a drive-thru food bank during the final quarter of FY19-20.

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 AI 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 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 AI 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 recommendations, the program was modified to provide a drive-thru food bank during the final quarter of FY19-20.

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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 FY19-20.

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 Other 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 recimendations, the program was modified to provide a vains pod bank acid diancing quarter of FY19-20.
program was modified to provide a drive-thru food bank during the final quarter of FY19-2 March June October 2023 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 Accomplishments

1. Provision of Identify and monitor the use of vacant Ongoing valuation: This program is consider Adequate Housing land for the construction of new ccessful. The City has maintained an invento Sites housing units to meet RHNA allocation. and Gateway Specific plan. of residential sites and had adequate capacity to accommodate its RHNA. Specifically, a total of
2) The City continues to submit an annual progress report to the 1,529 units were approved during this planning California Department of Housing and Community Development and period, which significantly exceeded the City's Office of Planning and Research. 182-unit RHNA allocation. Additionally, the City's 3) The City continues to offer a density bonus when affordable very-low, low, and above moderate allocations housing is provided. were all met.

However, given the significant increase in the
City's RHNA allocation from 182 units (5" Cycle)
5) The City continues to offer administrative assistance to affordable to 1,207 units (6" Cycle), a more robust program housing developers in preparing grant applications. will be implemented that includes the following 6) A current inventory of vacant land suitable for housing is posted on new program: Program 3 - Action 3.2. the City's website.
7) The City publicizes current development projects in the Gateway and provides development standards on the City's website.

2. Sites for Promote and assist in the development Ongoing 1) Emergency shelters are listed as permitted uses in the LNZC CN, Evaluation: Although no opportunities to assist Emergency CC, CO, BP, and Pl, and MU-TC zoning districts. ion-profits to locate an emergency shelter and/o Shelters and Superive hy shities and transional/ transitional housing were identified during the Transitional / 2) Transitional and supportive housing are listed as permitted uses in planning period, there is an existing food bank Supportive Housing the Gateway Specific Plan BP, CS, and MU zoning districts. located at Vineyard Church. Additionally, the City 3) The City contracts with Mercy House, a non-profit service provider is able to assist by contracting with Mercy House, specializing in assisting the homeless. Mercy House conducts field pas rough DES funding to on profishating outreach and case management work five days per week. The services include mental and physical heath assessments and provide food banks, rental assistance, counseling connection of homeless individuals to various services. As part of the and other forms of assistance to individuals and contract, Mercy House works with shelter and housing partners to families at risk of being homeless. find suitable temporary or long-term housing for the homeless. Continue/Modify/Delete. Continue. This program Currently, there is a food bank in the Mercy Warehouse located at continues to be appropriate and is included in the Vineyard Church in Laguna Niguel. 2021-2029 Housing Element.

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Housing Program Program Objective Timeframe Implementation Status Accomplishments 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 City 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.

3. Affordable Housing 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 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. 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 public benefit provision provides for this planning period. increased density above the baseline of 50 du/ac up to 120 du/ac.

During this program period, the public benefit density bonus was Continue/Modify/Delate: Modify Although the used in five approved Gateway developments ranging between 67- program was successful for this planning period, 93 du/ac resulting in 1,497 total units with 55 affordable units. more will be done to achieve the current RHNA allocation distribution. Modifications to this
3) The City encourages the production of housing designed program include the following:
onus 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 for the Elderly (RCFE) with 111 units at 72 du/ac. and State law; and per Program 3, Action 3.2 to 4) The City implements regulations for accessory dwelling units mandate that any public benefit provided to achieve a density of higher than 50 du/ac shall
consistent with State Law.
include a provision of affordable housing.redefine
5) OCHA issues vouchers on behalf of Laguna Niguel. public benefit in the Gateway Specific Plan to improve the availability of homes available to very-
low and low-income households in the City.

4. 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, to Low and 2) The City's Code Enforcement program responds to property Moderate Income maintenance complaints. Continue/Modify/Delate: Continue. This program Households continues to be appropriate and is included in the 3) Homesharing programs are administered by private service 2021-2029 Housing Element. providers.

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Housing Program Program Objective Timeframe Implementation Status Accomplishments 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.

5. 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. No requests were received City is committed to furthering fair housing Opportunity during the reporting period. practices in the community and cooperates with the Fair Housing Council of Orange County to
eliminate discriminatory practices countywide
2) The City continues to contract with the Fair Housing Council of Orange County. The Fair Housing Council provides services that Continue/Modify/Delete. Continue. This program include fair housing enforcement and education, landlord/tenant continues to be appropriate and is included in the counseling, mediation, and homebuyer HUD counseling which 2021-2029 Housing Element. 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 Niguel 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 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

6. Housing Element To develop monitoring and reporting Ongoing 1) The City continues to submit progress reports to the California Evaluation: Program considered successful. The Monitoring and programs for the Housing Element and Department of Housing and Community Development and Office of City submitted APRs for each of the years within Reporting ensure the Housing Element is Planning and Research. this last planning cycle. internally consistent with other 2) The City's CDBG program requires service providers to report on Continue/Modify/Delete. Continue. This program elements of the General Plan. the number of residents served each quarter. 2021-2028 Housing orime and is included in the
3) All entitlements are analyzed for consistency with the Housing March June 2023 A-7

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Housing Program Program Objective Timeframe Implementation Status Accomplishments Element and other General Plan elements.

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Table A-2
Progress in Achieving Quantified Objectives - 2013-2020 Quantified
Program Category Objective Progress
New Construction
Extremely Low 22 0
Very Low 21 44
Low 30 38
Moderate 34 8
Above Moderate 75 1,442
Total 182 1,532
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 and inventory are provided below and summarized it Table B 1 through Table B-5.Table B-1 through Table B-6. 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 based on current general plan and zoning designations.

Table B-1
Land Inventory vs. RENA
Income Category
Potential Housing Sites Moderate Above-Mod Totals
Very-Low Low
Approved projects (Table B-2) 12 917995 9291.007
Vacant sites (Table B-3) 110: 110- 3323 64.44 3467
Underutilized sites (Table B-5) 254353 117235 182196 567- 1,120784 Accessory dwelling units (ADUs) 12 24 20 8 64
2,430
388377 251259 235239 1,5561,047 19321.922
Totals
RHNA (2021-2029) 348 202 223 434 1,207
Adequate Capacity? Yes Yes Yes Yes Yes
Source: City of Laguna Niguel Community Development Department, 20222023 Approved ProjectsProgress Towards the RHNA (Approved Projects) Table B-2 lists projects that have been approved and are expected to be completed during the planning period.

The Affordability levels for these units are based on the actual estimated sale prices or rents and deed restrictions.

Table B-2
Approved Projects
Potential Units Status/Notes
Density
Project Address (units/ac) | VL Low Mod Above Total
Gateway Senior 27762 Forbes Rd 7879 7879 Building permits issued May 3, Housing 2022; finaled August 11,
7872 2023under construction as of
October 2022
Blu ll Laguna 25887 Crown 12 180 192 Building permit issued July 28, Niguel (formerly Valley Pkwy 52 2021; finaled July 10, 2023Under known as Picerne construction as of October 2022.
wrap) 12 deed-restricted units.

SunPointe (formerly Tract 5241, Lots 1- 53 53 Entitled November 12, 2019 known as Colinas 53 (single-family) 2.7
de Capistrano) APN: 637-071-01
through 53
South Forbes 27912, 27942, 309 309 Entitled June 14, 2022 27972 Forbes Rd 119
Laguna Niguel City Vesting Tentative 11 275 275 Entitted July 19, 2022 March JuneOctober 2023 B-11

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Center Tract Map No.
19024
Cove @El Niguel n/w of Crown Valley 22 22 Entitled September 13, 2022 (formerly known as Pkwy and Pacific 11
Crowne Cove) Island Dr
APN: 656-231-02
Griffin Senior Living 24600 La Plata Dr 21 Fl Entitled May 16. 2023 Totals - 917995 / 9291,0
07 As of October 2023, the City has achieved approximately 83% of its overall RHNA obligation with approved/entitled units. However, most of these units are affordable to above-moderate income households.

When considering the remaining RHNA by income category, the City has already met its obligation for above-moderate income units and has a remaining RHNA of 761 units as shown in (538 lower-income units and 223 moderate-income units).

Site Inventory Considerations (Vacant and Nonvacant Site Strategies) The City has considered several key issues relevant to the sites inventory presented in this section.

Zoning Appropriate to Accommodate Housing Affordable to Lower-Income Households The capacity of sites that allow development densities of at least 30 units per acre are credited toward the City's remaining lower- and moderate-income RHNA based on State law. Zones that allow less than 30 units per acre but facilitate multifamily housing are considered appropriate to accommodate housing for moderate- and above-moderate income households. Much of the moderate-income need will be met by private market construction of non-subsidized rental units and entry-level condominiums. Laguna Niguel has identified the Gateway Specific Plan area as the most appropriate location to accommodate new development given that it envisions development to occur at densities of 30 du/ac and higher. However, future residential development is not precluded elsewhere in the City; multifamily residential projects have been developed in other areas of Laguna Niguel including around the Marketplace and Town Center. Some of these projects have served the needs of special populations, including seniors, and have included affordable components. The City continues to encourage the development of new residential projects throughout the City, while at the same time recognizing that the Gateway represents the most viable location to accommodate new development affordable to households at all income levels.

Assembly Bill 1397
Consistent with updated Housing Element law (Assembly Bill 1397) related to the suitability of small and large sites, the lower-income sites inventory presented in this section is specifically limited to parcels that are between 0.5 and 10 acres in size, as the State has indicated these size parameters are most adequate to accommodate lower-income housing need.

AB 1397 also adds specific criteria for assessment of the realistic availability of nonvacant sites during the planning period. If nonvacant sites accommodate half or more of the lower-income need (as is the case in Laguna Niguel, like many other built-out cities). the housing element must describe "substantial evidence" that the existing use does not constitute an impediment for additional residential use on the site. Due to the built-out nature of Laguna Niguel, the vast majority of sites have existing uses. Nonvacant sites included in the inventory have been chosen due to their location, age. existing uses, and potential for intensification facilitated by the Gateway Specific Plan, which substantially increased the development potential (and market value) of previously underutilized properties. To ensure that appropriate sites have been chosen. properties that show recent investments or updates or that contain uses of local importance are not included.

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and clear criteria were used to evaluate all sites, as described below under the Suitability of Nonvacant Sites discussion.

AB 1397 requires that vacant sites identified in the previous two Housing Elements and nonvacant sites identified in the previous Housing Element only be deemed adequate to accommodate a portion of the housing need for lower-income households if the site is zoned at residential densities consistent with the default density established by HCD (30 units per acre) and the site allows residential use by right for housing developments in which at least 20 percent of the units are affordable to lower-income households. Nonvacant sites identified in the previous Housing Element and vacant sites identified in the previous two Housing Elements but credited toward the moderate or above moderate-income RHNA in the current Housing Element are not subject to the provisions of AB 1397 since they are not intended to meet the lower-income RHNA.

None of the sites identified in this Housing Element were identified in the prior Housing Element.

No Net Loss Provision
Government Code Section 65863 stipulates that a jurisdiction must ensure that its Housing Element inventory can accommodate its share of the RHNA by income level throughout the planning period. If a jurisdiction approves a housing project at a lower density or with fewer units by income category than identified in the Housing Element, it must quantify at the time of approval the remaining unmet housing need at each income level and determine whether there is sufficient capacity to meet that need. If not, the city must "identify and make available" additional adequate sites to accommodate the jurisdiction's share of housing need by income level within 180 days of approving the reduced-density project.

Realistic Capacity/Example Projects
Sites in the Gateway Specific Plan have been identified to accommodate the majority of the City's RHNA.

As described throughout this Element, the Gateway area represents a unique opportunity to locate new housing for all income categories, not just lower-income categories, in an area near goods, services, jobs, and transit thereby providing new housing choices in an area of improving opportunity. In a built-out community like Laguna Niguel, the ability to direct growth to specific areas where new residents can be provided access to jobs and transit is an important part of the success of future development.

The Gateway Specific Plan identifies maximum densities based on the subzone of the parcel as defined in the Specific Plan. Significant residential development potential exists on underutilized sites within the Gateway Speeific Plan (see Table B-5 and Figure B-2). Upen completien, the Gateway Plan antieipates a total of nearly 3,000 housing units in mixed use distriets. Within the mixed-use zone, stand-alone residential projects are currently permitted at a minimum-maximum density of 40-50 units/acre and 1.15 floor area ratio (FAR) without inclusion of a public benefit and up to maximum density of 120 units/acre and 1.15 FAR with public benefits. The City has included Program Action 3.2 to evaluate and amend the Gateway Specific Plan to mandate that any public benefit provided to achieve a density of higher than 50 du/ac shall include a provision of affordable housing. -Please refer to Section IV.A.l.b (page 32) for a detailed description of the Gateway Specific Plan.

The foregoing analysis deseribes 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 infrastrueture and utilities. For sites zoned to allow nenresidential uses the analysis describes hew recent development trends (see Table B 2) support the estimated number of residential units for each site. A density of 50 units/acre is conservatively assumed for the Gateway area assuming that developments de not seek a density increase as permitted under zoning when a publie benefit is provided. Actual densities are likely to be higher because all seven of the previous approved projeets 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 March JuneOctober 2023 B-13

THE CITY OF LAGUNA NIGUEL HOUSING
buildings. In addition, A review of recent development projects (Table B-3) in Laguna Niguel helps to identify the realistic density that can be anticipated for potential development. In general, a conservative residential development potential of underutilized sites in the Gateway Specific Plan is 70% of maximum permitted density of 50 du/ac (permitted without public benefits, projects typically achieve a density of 70- 120 units/ac in the Gateway. Moreover, the City's commitment to increasing residential development opportunities, in combination with developers' desire to maximize the return on their investments, results in increasingly efficient development at higher densities than was typical in past decades. The City expects that future housing development project applications will match the current trend of proposed residential densities near the maximum density allowed or will seek density bonuses as allowed by state law.

For each of the underutilized Gateway Specific Plan sites, development trends vary by lot size whereby the larger the property the more likely the development will meet or exceed the maximum density allowance.

Additionally, with larger projects, developers have more flexibility in using the density bonus provisions (although density bonus units are not assumed as part of this analysis). However, since all the underutilized and candidate sites for rezoning are >0.5 acre in size, they are all assumed to develop at 70% of maximum capacity.

As shown in Table B-3. two projects have been recently developed at sites that were previously vacant (SunPointe and Griffin Senior Living Community. Both sites have developed at 100% of their maximum capacity, however, the City has elected to use a conservative approach to estimating realistic capacity at vacant sites (which are typically easier to develop than nonvacant sites) and also apply an assumption that vacant sites (excluding single-family lots) will develop at 70% of maximum capacity.

Table B-3
Previous Constructed and Approved Multi-Family Projects in the Gateway Specifie Plan Prior FAR Project Maximum % of
Project/ It of Density Density Maximum
Status Address General Plan/Zoning (mum (units/ac) (units/ac) Density Constructed Apex Community Nonvacant 1973 13% 86 40-50 172% 3/1/16 Apartments Commercial, (2 industrial
27960 Cabot Professional Office, buildings
Rd Public/Institutional. demolished)
and Residential
Attached/Gateway
Specific Plan, Mixed-
Use Zone
Constructed Skye Community Nonvacant 1978 24% 40-50 134% 414/16 Apartments Commercial, (2 commercial
28100 Cabot Professional Office, buildings
Rd Public/Institutional, demolished)
and Residential
Attached/Gateway
Specific Plan, Mixed-
Use Zone
Constructed Cavora Community Nonvacant 1979-1980 35% 40-50 140% 4/30/18 Apartments Commercial, (4 industrial
27742 Professional Office, buildings
Forbes Rd Public/Institutional. demolished)
and Residential
Attached/Gateway
Specific Plan, Mixed-
Use Zone
Constructed Villara Community Nonvacant 1967 32% 78 40-50 156% 4/20/20 Apartments Commercial,
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Vacant of
Nonvacant Prior Age Project Maximum % of
Project/ Site Price Density Density Maximum
Status Address General Plan/Zoning Maximan) (units/ac) (units/ac) Density 27665 Professional Office. (4 commercial
Forbes Rd Public/Institutional. buildings
and Residential demolished)
Attached/Gateway
Specific Plan, Mixed-
Use Zone
Constructed Blu | Laguna Community Nonvacant 1973 54% 99 40-50 198% 4/22/20 Niguel Commercial, (2 commercial
Apartments Professional Office, buildings
27930 Cabot Public/Institutional, demolished)
Rd and Residential
Attached/Gateway
Specific Plan, Mixed-
Use Zone
Constructed Blu Il Laguna Community Nonvacant (2 1985 24% 52 50 104% 7/10/2023 Niguel Commercial, commercial
Apartments Professional Office. buildings
25887 Crown Public/Institutional, demolished)
Valley Pkwy and Residential
Attached/Gateway
Specific Plan, Mixed-
Use Zone
Entitled Forbes Community Nonvacant 1972 38% 72 40-50 144% 6/22/19Constr Senior Living Commercial, (1 commercial
ucted (formally Professional Office. building
8/11/2023 Gateway Public/Institutional. demolished)
Senior and Residential
Housing) Attached/Gateway
27762 Specific Plan, Mixed-
Forbes Rd Use Zone
Entitled SunPointe Residential Vacant N/A N/A 2.1 2.7 100% 11/12/2019 Tract 5241. Detached/Open
Lots 1-53: Space/Parks and
APN: 637- Recreation/RS-3
071-01-53 Single-Family District
Entitled South Forbes Residenial Nonvacant 1977-1978 32% 119 40-50 238% 6/14/22 Apartments Detached/Open (3 commercial
27912, Space/Parks and buildings
27942, Recreation/RS-3 demolished)
27972 Single-Family District
Forbes Rd
Entitled Griffin Senior Public/Institutional/ Vacant N/A N/A 21 21 100% 5/16/2023 Living Public/Institutional/Ma
Community naged Care Overlay
24600 La
Plata Drive
Notes:

Maximum densities of projects in the Gateway Specific Plan area excluding public benefit bonus March JuneOctober 2023 B-15

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Table B-4 summarizes how the various factors identified in housing element law (Government Code Section 65583.2(c)(2)) result in an adjusted site capacity of 70% of the maximum densities. Of the five factors, only land use controls and site improvements, realistic capacity of the site, and typical densities are relevant when considering the capacity of sites in Laguna Niguel. Infrastructure constraints are not applicable as the City is largely built out; no vacant, developable land or proposed infill sites are located in areas subject to flooding or special hillside development regulations and there are no environmental constraints. The City finds that it is not financially feasible or desirable for developers to redevelop any of the sites listed in the sites inventory for 100% nonresidential uses. In an abundance of caution, the City has applied a reduction to the maximum site capacity, but all evidence suggests that residential uses will comprise the vast majority of new development in the City, even if the zoning allows for 100% nonresidential uses. During the prior planning period, no 100% non-residential projects have been developed on parcels that allow for residential uses. including parcels designated for mixed-use.

Table B-4
Capacity Adjustment Factors for Vacant and Underutilized Sites Capacity Facto
Land use controls and site 95% For net acreage due to building improvements setbacks and on-site
improvements, including sidewalks.
utility easements
Realistic capacity of the site 80% Adjustment based on past development trends for residential
redevelopment on nonvacant sites
Typical densities 95% Multifamily housing projects (with and without affordable units) are
built out to almost maximum
density
Infrastructure availability No adjustment Not applicable: no constraint Environmental constraints No adjustment No known site constraint Realistic Capacity = 1.0(.95)(.80)(.95) = 70% (approx.) Environmental Constraints
Potential environmental constraints to future development of sites identified include the seismic and liquefaction hazards, which are addressed in the Non-Governmental Constraints section of the Housing Element. All sites identified in the Sites Inventory to meet the remaining lower income RHNA need are not within areas that have development restrictions due to risk of damage from disasters (such as floods. wildfires, or seismic events). The sites inventories have a land use designation which was determined based on surrounding land uses and has already examined potential environmental constraints. There are no additional constraints that would impede the development of new housing units in the future on the identified sites.

Suitability of Nonvacant Sites
Because nonvacant sites comprise more than half of Laguna Niguel's sites inventory. Government Code Section 65583.2(g)(2) requires that the City analyze the extent to which existing uses may constitute an impediment to additional residential development, past experience in converting existing uses to higher density residential development, market trends and conditions, and regulatory or other incentives to encourage redevelopment. Furthermore, the City will make findings based on substantial evidence that the existing use is not an impediment and will likely discontinue during the planning period.

City of Laguna Niguel is essentially entirely built-out. There is very little vacant unentitled land remaining to accommodate new multifamily residential development. In order to accommodate its fair share of regional March JuneOctober 2023 B-16

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housing growth, the City must identify nonvacant sites to accommodate its remaining RHNA for all income levels (not only its lower income requirements).

Development Potential Characteristics Analysis
In order to evaluate the suitability of nonvacant sites for inclusion in the City's site inventory, the City developed a process to analyze the characteristics of projects that are currently under construction, approved/entitled but not yet under construction. or currently under review in the City. Given that these projects are extremely current, they provide the best insight into development patterns and trends in Laguna Niguel and help the City evaluate potential opportunity sites to identify those sites where redevelopment with residential uses is most likely based on shared characteristics with the current/proposed projects described above. This analysis forms the basis of the City's nonvacant sites analysis. All sites included in the inventory shared specific objective characteristics with the "evidence projects" list (i.e., the projects in various stages of construction/entitlement that provide evidence regarding the redevelopment potential of sites throughout the City which provides the City with evidence that the identified sites, based on these shared characteristics. are likely sites to redevelop during the planning period.

At least 10 multifamily projects have been approved/entitled or constructed during the past 8 years in Laguna Niguel. These projects provide the City with the best insight into existing site conditions that lend themselves most favorably to redevelopment. The City analyzed these 10 projects to identify objective site characteristics that can be applied to other opportunity sites to determine their suitability. The City has analyzed I) zoning. 2) year built, 3) existing floor area ratio, and 4) existing uses. The City used these characteristics as a lens to identify sites where redevelopment is most likely to occur during the planning period, given shared characteristics between the evidence projects and the potential sites. As described throughout this section, all sites within the City's inventory meet the objective characteristics identified through this analysis.

1. Existing Zoning. Of the 10 sites analyzed, the following zoning trends emerged:
• Gateway Specific Plan Zoning: 7- projects
• Residential Zoning: -2 projects
• Public/Institutional Zoning: —1 projects
Existing Zoning Finding and Response: Site should be located in the Gateway Specific Plan area. There are

23.781 developable parcels in the City of Laguna Niguel. Of these parcels, 131 are zoned Gateway Specific Plan. As described later in this section, through a rigorous objective analysis of site characteristics and development patterns. the City has identified nine Gateway Specific Plan parcels (7% of Gateway Specific Plan parcels) in its site inventory. The City was highly selective in identifying potential development sites to ensure that only sites with the highest likelihood of redevelopment are included in the inventory. Together. these sites represent less than 0.04% of all developable parcels in Laguna Niguel. Future residentia. development is not precluded in other areas, but rather. the characteristics of these sites demonstrate mos appropriately that they are the best and most likely sites to be redeveloped during the planning period. All sites nonvacant sites identified are located within the Gateway Specific Plan.

2. Year Built. Of the 10 sites analyzed, the following year built trends emerged:
• All nonvacant sites (8 out of 8) were built before 1991 (meaning that the building iswas at least 30 years old when it redeveloped).=
• No nonvacant-sites were built after 1991.

Year Built Finding and Response: Year built should be 1991 or earlier (at least 30 years old). All sites identified are at least 30 years old.

3. Floor Area Ratio. Of the 10 sites analyzed, the following floor area ratio trends emerged:

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• The majority of nonvacant sites (7 out of 8) had a floor area ratio of less than 0.50. • Only one site had a floor area ratio greater than 0.50; this site had a floor area ratio of 0.54 and two commercial buildings built in 1973.

Floor Area Ratio Finding and Response. Existing floor area ratio should be less than 0.50. All sites identified have an existing development floor area ratio of less than 0.50.

4. Existing Uses. Of the 10 sites analyzed, the following trends related to existing uses emerged:
• 6 sites are developed with commercial uses (e.g., auto service, office, banks, restaurants and stores) • 2 sites are developed with industrial uses
Existing Use Finding and Response. Existing uses do not typically constrain the redevelopment of a site and opportunity sites may be developed with a range of existing uses, including commercial, office, industrial. and public facilities. All sites identified in the inventory are developed with one of the existing uses exemplified in the example project list. Coupled with the other site characteristics, including current zoning. year built, floor area ratio, no currently developed uses are expected to prevent the redevelopment of a site.

Demand for Development in the Gateway
The Gateway area is the most in-demand location for new multifamily development in the City. At any given time, the City is facilitating multiple discussions with property owners and/or applications regarding the potential redevelopment of sites in the Gateway. Within the Gateway, the sites that are most ripe for redevelopment include those that are at least 30 years old. have a floor area ratio of less than 0.50. and are currently developed with uses that show declining demand, including retail. office. and industrial uses. The City has evaluated these metrics for all Gateway sites and has conducted a visual survey of sites to assess their quality and development potential. The City has also considered any known long-term leases or other constraints that would preclude, or even hinder, the redevelopment of the site. The City has also shared its inventory list with the public and property owners and no member of the public or property owner of a site on the inventory has brought forward a concern or constraint to a specific site's development which would preclude redevelopment during the planning period.

Suitability of Nonvacant Sites Findings
The City has specifically analyzed whether existing uses constitute an impediment for residential uses on the site. As described in this section, the City demonstrates that existing uses on the sites identified to accommodate a portion of the City's RHNA do not constitute an impediment for residential uses on the site.

Additional information regarding current operations and tenants, vacancies, properties listed for rent or sale. and the demand for the current use are included. The City has considered each site individually and has concluded that based on the substantial evidence provided, current uses are not an impediment to the sites redevelopment for residential uses.

Site Strategy #1: Vacant Sites
The City of Laguna Niguel is largely built-out and very little vacant land remains available for residential development. As part of its Housing Element Update process, the City surveyed all parcels in the City to identify potential sites where residential development can be accommodated during the planning period.

Through this process, the City identified two sites (totaling only 2.49 developable areas which have current general plan and zoning standards in place to facilitate residential development: in addition, the City identified at least 44 vacant single-family lots where residential development is allowed. Vacant parcels suitable for residential development are summarized in Table B-5 and shown in Figure A-1. Single-family lots were assigned to the above-moderate income category (assumed to develop at one unit per lot) while the other two vacant sites were assigned to moderate-income based on anticipated market-rate rents for similar March JuneOctober 2023 B-18

THE CITY OF LAGUNA NIGUEL HOUSING
rental products in the region (as of October 2023, there were numerous apartments for rent in Laguna Niguel at prices affordable to moderate-income households, including units at all of the City's newer multifamily projects such as Apex, Blu. IMT, and Skye as well as at other older unit locations throughout the City and in nearby communities such as San Juan Capistrano, Mission Viejo, and Laguna Hills). As described above, the realistic capacity applied to vacant sites (excluding single-family lots) is 70%, which is a very conservative estimate and actual development may exceed this total. Parcels allowing multi family or mixed use were assigned to income categories based on the allowable density. Pareels where the allowable density is at least 30 units/aere 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 estimated as 4.4 acres. This property is within the Gateway Specific Plan and is zoned for mixed use development at a density of 50 units/acre. The realistic capacity of this site is based on a site planning study and an evaluation of topegraphy. It is assumed that at the time of development this property would be subdivided to create a separate development area from other 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 building sites and other assistance to facilitate development of vacant sites during the planning period. Development regulations allow stand-alone residential use in this arenat all vacant site locations, and several recent examples of high density-residential projects such as Apex Apartments and Blu Niguel Apartments (Picerne) have occurred on land with similar topography as deseribed belew or on underutilized sites as noted in Table B-Shave been recently entitled at vacant sites, including SunPointe and Griffin Senior Living Community (see Table B-3).

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 General Plan Program Environmental Impact Report (PEIR) and Gateway Specific Plan Program Environmental Impact Report (PEIR), water, sewer, electric and gas utilities will be available to serve development at vacant sites throughout the City.

As described in Housing Program #1, Action 1.3, Community Development staff will make contact annually with the property owners of the two vacant multi-family sites to assess development interest and offer assistance in permit processing and grant funding applications, if requested. -Government Code 865583.2.0
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Table B-4Table B-5
Vacant Sites Inventory
Net Potential Units by Income
General Plan/ Density Category
Site (Address/APN) Zoning Acreage (du/acre) | Lower | Moderate | Above Total Buie Property, n/w-corner GP: Open Space and 26.8 (4.4 buildable of Grown Valley Pkwy and CC/PO/PI/RA 50 220
based on site 220°
Cabot Rd, APN: 636-061-24 Zoning: Gateway constraints)
(P) SP/MU
CUSD Surplus Property, GP: PIRA/PR
Paseo de Colinas Zoning: PVRM/PR/MC 2.47
Parcel 1 of LLA No. 07-01, 1.47 residential & 16 2417*** 2417 Previous APNs: 1.0 park) **
637-412-02 (portion) & 637-
181-01 (portion)
Park Niguel, siw of Crown GP: RA
Valley Pkwy and Central Zoning: Multi-Family 1.02 8.8 96** 96 Park Dr (RM)
APN: 654-083-04
Single-Family custom lots, Single-family - varies 6444 6444 various sites
TOTALS - vacant sites 220- 3323 6444 3467
Notes:

Site can accommodate 220 units for 50 du/4.4 acres) per the Gateway Specific Plan, Planning District C. **Based on General Plan conditions
**Based on market condition
****Based on default density
(P) used to satisfy lower income RHNA in 2 prior planning periods March JuneOctober 2023 B-20

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Site Strategy #2: Underutilized Sites in the Gateway Specific Plan As discussed in the Constraints chapter, the Laguna Niguel Gateway Specific Plan represents a major development opportunity area in a City that is essentially built-out with very limited vacant land remaining.

The Gateway Specific Plan, area adopted in 2011, was the result of the collaborative planning efforts between the City. the public, property owners and businesses, covers an area of contains approximately 300 acres in the northeastern portion of the city, conveniently located adjacent to regional transportation facilities (I-5 and the Laguna Niguel/Mission Viejo Metrolink station) and in proximity to local and regional goods, services. and amenities. Significant residential development potential exists on underutilized sites within the Gateway Specific Plan (see Table B-6 and Figure A-1). Upon completion, the Gateway Plan anticipates a total of nearly 3,000 housing units in mixed-use districts.

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, with most buildings reaching the end of their useful life (approximately 30-40 years). 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.

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, declining demand for uses currently found within the Gateway area, the old age of existing buildings (at least 30 years old), low lot utilization (floor area ratio less than 0.50). and increasing and persistent demand for new housing choices, the Gateway area presents a significant and unique opportunity for transformation of underutilized parcels in a built-out community into a major mixed-use, transit-oriented activity center. The Gateway Specific Plan, adopted in 2011, was the result of the collaberative planning efforts between the City, the publie, property owners and businesses.

There are 131 parcels totaling approximately 300 acres in the Gateway Specific Plan area. Of these 131 parcels, the City has identified nine parcels (totaling 23.3 acres) as suitable to accommodate a portion of the City's lower- and moderate-income RHNA and extremely feasible for redevelopment during the planning period (see Figure B-2, site photos). The nine parcels identified in the inventory to accommodate a portion of the City's lower- and moderate-income RHNA represent only 9% of the total number of parcels/7.8% of the total acreage in the Gateway Specific Plan area and only %less than 0.04% of the total parcels citywide; these sites are all between 0.80 acres to 5.6 acres in size (there are no feasible parcels suitable for redevelopment in the Gateway Specific Plan area larger than 5.6 acres). These sites have the capacity to accommodate a minimum of 784 units at densities determined to be suitable to accommodate a portion of the City's lower income RHNA.

Table B-6 includes detailed characteristics of those underutilized sites located in the Gateway Specific Plan identified as that can accommodate housing development during the currentsuitable to accommodate a portion of the City's RHNA during this planning period. Because the allowable density is greater than 30 units/acre, these sites can accommodate housing of all income categoriescapacity at these sites has been credit towards meeting a portion of the City's lower- and moderate-income RHNA.

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Table B-6
Underutilized Sites Inventory
Parcel Size Income Category
District Address APN Zoning* FAR Existing Use Very- Low Mod Total (acres)
Low
26022 Cape Dr 636 034 06 MU 50 1.2 1976 0.18 Crown Cape Center, 1-story 1,2, 3, 4 19 13 10 42 commercial center, built 1976, 9,600
sq.ft,
E 27601 Forbes Rd 636 03303 MU 50 5.4 1969 0.31 3 Flags commercial center, built 1.2, 3,4 85 57 47 189 1969, 1-story, 72,598 sq.ft.

E 27812 Forbes Rd 636 034 07 MU 50 1967 0.32 Mission Christian Church, built 1067, 1.2, 3, 4 17 12 10 39 1-story, 15.124 sq.ft.

Subtotal 508.67.7 121 82 67 270
G 27872 Crown Valley 637 202 02 MU 50 3.5 1982 0.49 All Size Storage, built 1982, 1-story, 1,2,3,4 55 36 31 122 Pkwy 77.574 sq. ft.

Subtotal 503.53.5 55 36 122
H 27882 Forbes Rd 637 201 01 MU 3.1 1982 0.25 Laguna Niguel Medical Plaza, built 1,2, 3,4 49 32 27 108 50 1982, 2-story, 33.700 sq. t.

H 28002 Forbes Rd 637 20105 MU 50 0.9 1979 0.41 JFC Tires / OC Auto Collision, built 1,2, 3, 4 14 10 8 32 1979. 1-story, 15.220 sq.ft.

H 28092 Forbes Rd 637 20111 MU/T 50 5.6 1979 0.07 Sepulveda Building Materials, built 1.2, 3, 4 88 59 196 2000.19,206 sq f
H 28032 Forbes Rd 637 20106 MU 50 0.8 1979 0.42 South Coast Shingles, built 1979, 1.2, 3, 4 13 8 28 15,000 sq ft
H 28062 Forbes Rd 637 20107 MU/T 50 0.8 1981 0.43 Office building (Art Display, Care 1,2,3,4 13 8 28 Ambulance, Left Coast CrossFit),
built 1981, 1-story, 15,008 sq ft
Subtotal 11.211.2 177 117 98 392
Totals 23.323.3 353 235 196 784
Notes:
*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. ***Criteria:

1. Suitable General Plan/Zoning Designation

2. Building age >30 years

2. FAR <50%

4. Existing uses with declining demand based on local redevelopment history Note: None of the sites was utilized in a prior planning period March JuneOctober 2023 B-23

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Suitability of Nonvacant Sites
Because nonvacant sites comprise more than half of Laguna Niguel's sites inventory, Government Code Section 65583.2(g)(2) requires that the City analyze the extent to which existing uses may constitute an impediment to additional residential development. past experience in converting existing uses to higher density residential development, market trends and conditions, and regulatory or other incentives to encourage redevelopment. Furthermore, the City will make findings based on substantial evidence that the existing use is not an impediment and will likely discontinue during the planning period.

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 peried.

A Program EIR was certified for the Gateway Specific Plan, which streamlines the CEQA review process for housing developments thereby enhaneing development certainty and reducing development time and cest.

As shown in Table B 2, at least six multi family projeets have been previously approved and/er built in the Gateway Specific Plan, demenstrating 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 projeets in the Gateway Specifie Plan have exeeeded the allowable density of 50 units per acre. Additienally, all have eleeted te provide a "public benefit" to exceed 50 units per acre
Approximately two-thirds of the petential 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 theretical and empirical basis: urban parcels for which improvement values are less than land values are widely considered to be ceonomically 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 te accommodate the residential build out of the Gateway Specific Plan which includes the 220 units identified for Buie-Stoddard site in Table B 4 and the 1,120 residential units identified in the underutilized inventory in Table B S.

The Apex Laguna Niguel project, approved by the Planning Commission on July 10, 2012, is an example of a site-where non residential uses were demelished for the purpose of residential construction. The current 3.7 aere-site originally was composed of two sites (2.4 acres and 1.3 acres). The first site-was originally occupied by the Missien 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 10 University of California, Berkeley Institute-of Urban and Regional Development, The Future of Infill Housing in California:

Opportunities, Petential, Feasibility and Demand, 2005
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THE CITY OF LAGUNA NIGUEL HOUSING
building occupied by Concept Framing, which was demolished by the developer in 2011. This project also demenstrates the suceessful consolidation of multiple parcels into a single project.

The 6.4 aere Blu Laguna Niguel projeet, 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 twe commercial/light industrial buildings accessed from Cabot Road and a sizeable, landseaped hillside that deseended to the Ose Creek fleed control channel. The lower pad consisted of two commercial/light industrial buildings aceessible from Crown Valley Parkway bounded by vegetated slopes. The buildings were constructed in the 1970s, and gross square footage for all buildings totaled appreximately 55,230 square feet:

The South Forbes projeet, 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 feet property at 27912 Forbes Road was used for auto repair/auto service uses (Eeeno Lube and Tune); the 212,044 square-foot property at 2 7942 Forbes Road was used for auto repair/aute service uses (Tucker Tire); and the 12,644 square foot property at 27972 Forbes Read -was being used for auto repair/auto service (Suspension Plus). s significantt Site Strategy #3: 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. The City has observed that over half of the ADUs issued have fallen into the very-low-income category, with rents less than $1,000/month. 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 ADUs in 2021, and 10 ADUs in 2022. At that rate, it is estimated that approximately 64 ADUs will be permitted during the 2021-2029 planning period, or approximately 8 per year. Based on recent analysis conducted by SCAG" approximately two-thirds of 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 Other Potential Development Locations (Future Opportunities) As described above, the City has identified sufficient capacity to accommodate its remaining RHNA at all income categories through approved projects, vacant sites, sites in the Gateway Specific Plan, and ADUs. As described throughout this Element. the Gateway Specific Plan is an area near goods, services, jobs, and transit. The Gateway also allows for the highest levels of density in the community, ranging from 50 to 120 du/ac. While the City has identified the Gateway as the most viable location to accommodate new residential development at all income levels (not just lower income), multifamily residential development is also allowed elsewhere throughout the City and is not restricted to only the Gateway (see Table IV-4). The City has a history of collaborating with applicants and approving residential developments outside of the Gateway to increase the City's housing inventory in essentially a built-out community. Over the last four years alone. 11 SCAG, Regional Accessory Dwelling Unit Affordability Analysis, 2020 (https://scag.ca.gov/sites/main/files/file- attachments/adu affordability_analysis_120120v2.pdf?1606868527) 12 https://www.cityoflagunaniguel.org/DocumentCenter/View/22178/Laguna-Niguel-ADU-Handout?bidId= https://www.cityoflagunaniguel.org/1433/Accessory-Dwelling-Units March JuneOctober 2023 B-26

THE CITY OF LAGUNA NIGUEL HOUSING
this notably includes: the Laguna City Center mixed-use development with two prominent apartment buildings (included a Zone Change to allow residential uses on a commercially zoned property. Griftin Living senior housing development (included a Zone Change to allow senior housing on a public/institutional zoned property). the SunPointe small lot residential subdivision, and the Cove at El Niguel townhomes. While the Gateway represents the most appropriate and predictable location for future residential development. other development opportunities exist throughout the City and the City will continue to work with property owners and applications on sites throughout the City, not just sites identified in the Housing Element. to encourage residential development for all household incomes in locations throughout Laguna Niguel.

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Figure B-1
Vacant and Underutilized Sites,
Inset 2
52 Inset 2
45 50 0
Inset 1
13 Inset 1
40 24
Underutilized
Label No PARCEL SITE ADDRESS Label No STEATORESS Label No PARCEL SITE ADDRESS 556 313 07 30626 Via Extori 19 655 251 08 111 Le Conte 12110050) *No Site Padress:
1555 313 08 30622 Via Estord 658 211 D4|2 Sant Tropez
12110072 "to Site Address:
656313 12 30592 Via Estoni 673551 01 A tospiration Pal
556 313 13 30582 Via Estori 637202 02 27372 Crown Valley PAwy 637201 05 25002 Fartes Rd
556 313 06 30632 Via Estoni 637 201 06 28032 Forbes Rd
556 313 11 30602 Via Estori 63720: 07 28052 Farbes Rd
537201 18 25092 Farbes Id
556 315 L0 50612 Via Estoni 636 033 03 27631 Farbies Rd 554 023 13 23902 Vaxaner In 121 :00 79| *No Site Address 654 024 12 23901 Vovager In 559 011 41 No Site Address:
654042 0d| 29823 Ana Maria In 121 090 17 31641 Peppertree Und 654093 D1 "No Site Address! 637 035 05 25022 Via Bonita 1121 090 16 31641 Pappucree Und 537412 021 Pawo Du Colinas 537 035 06 25032 Win Bonnal 123 100 55 B0 Mil Roy 635 031 06J 25022 Cape Dr 655 39127 a Vista Cr 073 603 20 2 Paint Coralina 63720: 01 27532 Forbos Rd 65321: 09 12 Sain: Traper 121 100 63 *NG Site Addressi 635 034 07 27312 Forbus Rd 653 251 24 3 1e Conte E2: 100 G5 Ne Site Addressa
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Figure B-t
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
Retall Commercial
Mixed-Use
Mixed-Use Urban Corridor
Come Any Sate a Senice
Rotall Commercial, Multi-Family Housing Mix
Multi-Family Housing
Office Conter
Laguna Niguel/Mission Viejo Metrolink Station
Oso Creek Trail/Pedestrian Connector
Existing Rail Tracks
Open Space
ommunity-Serving Reti
ffice, Auto Sales & Servi
Open Space
500 1000 2000 11
March JuneOctober 2023 B-29

THE CITY OF LAGUNA NIGUEL HOUSING
Figure B-2
Underutilized Site Photos
Laguna Niguel, Callifomla
26022 Cr
Niquel Cl
Google
26022 Cape Drive
Laguna Higuel, California
2 coope
17601 Forb
Rd, Laguna
Target O
27601 Forbes Road
March JuneOctober 2023 B-30

THE CITY OF LAGUNA NIGUEL HOUSING
Laguna Higoel, Califomia
28 Goog
Google
27812 Forbes Road
Crown Valley Pimy
27872 Cros
Pkwy. Lagi
.i.in Google
27872 Crown Valley Parkway
March JuneOctober 2023 B-31

THE CITY OF LAGUNA NIGUEL HOUSING
27882 Forbes Rd
Google
27882 Forbes Road
28021 Forbed Rd
28092 Forbe
Rd. Laguna N
son Virjo South Cour
Google
28092 Forbes Road
March JuneOctober 2023 B-32

THE CITY OF LAGUNA NIGUEL HOUSING
27996 Forbes Rd 9:
pulveds G
Google
28002 Forbes Road
Laguns Niguel, California
• Coope
HUD.

Google
28062 Forbes Road
March JuneOctober 2023 B-33

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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 to identify housing issues and potential strategies, réview and comment on the draft element, and provid ecommendations to decision-makers. Targeted outreach included persons and local organization:
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
Housing Element update Laguna Niguel california 64 000- process a dedicated City Hall What's New Economic Development How Do l..? Services
Housing Element web 2021 Housing Element Update
page! was established to Housing Element Update
provide interested persons What Is a Housing Element?
with information including = *:

Allousing Element is a local plan adop'ed by the Cily thet Frequently Asked includes goals, polities, and programs that direct decision making around housing State law requires that Housing Elements be Questions (see Figure C-2 updated on d-year "cycles". The City is currently preparing Housing Element undate for the 20212029 planning period, below), reference whuch is referred to as the '6th Housing Element cycle? in reference to the six required updates thet have occurred since the materials regarding the
comprehensve revision to State Housing Element taw in 1980 Regional Housing Needs
Assessment (RHNA), a Public Involvement
video series' on housing
issues (available in both # you have specife questions about the Housing Element update, picase email ernessiontyoria nunaninnel erol English and Spanish) lf vou world I-ke to be unded to the contact list for the Housing Flement lindate plesse sian up tor the Housing Llemant Uedata tist produced by the Orange
County Council 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 FALCO Authority, the Orange County Affordable Rental Housing List, and contact 14 https://www.cityoflagunaniguel.org/1352/Housing-Element-Update 15 https://www.occog.com/housing
C-1
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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
City of
Laguna Niguel california
City Hall Services What's New Economic Development
Housing for All - Part 2
SCAG
Grange County Council of GE
tinuously updated through-
out the Housing Element LAND USE AND HOUSL
update process to include
parties who submitted Watch on Youtube
comments regarding hous-
ing needs and other issues.

Housing Needs Survey
An 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 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:
• ommunity Development Department staff consulted with the following public and privat ganizations to gain input on housing needs and the effective coordination of service March JuneOctober 2023 C-2

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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 disabilites, 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 opportuny to ties i holing sues a to to praction an outs a a al 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 ession to review Housing Element requirements and receive public comments regarding communit lousing issues. Due to Covid-19 public health issues the meeting was conducted remotely. Publi 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 March JuneOctober 2023 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-1). 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 public 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 _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 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 en 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 te the 190 individuals that provided their email via the Housing Element Update webpage:

After receiving HCD's January 19, 2022 comments on the draft Housing Element, a revised draft Housing Element was prepared and posted for public review on March 2. 2023. A public hearing was conducted by the Planning Commission on March 14, 2023 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.

On March 21, 2023 the City Council conducted a public hearing and adopted the revised Housing Element as recommended by the Planning Commission. On March 23. 2023 the adopted Housing Element was submitted to HCD for review.

On May 22, 2023 HCD issued a letter finding that while the adopted housing element addresses most statutory requirements described in HCD's January 19, 2022 review, additional revisions are necessary to fully comply with State Housing Element Law.

Subsequent to receiving HCD's May 22, 2023 comments on the adopted Housing Element the City prepared revisions to the Housing Element addressing HCD comments, which were posted for public review on November 2, 2023. Notice of the availability of the revised Housing Element with an invitation to participate in the November 14, 2023 public hearing 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-profit housing developers and service providers. Interested
stakeholders were able to provide input in writing, orally at March JuneOctober 2023 C-5

THE CITY OF LAGUNA NIGUEL HOUSING
Comment How this comment is addressed
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 ($47,100 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 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-56, Underutilized Sites Inventory, do not have buildings with cultural or historic value. Furthermore, the recent examples of March JuneOctober 2023 C-6

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Comment How this comment is addressed
busing construction on underutilized sites include the fi emolition of existing buildings
Emphasize, promote, and encourage the use of incentives available s noted in Program 3, the City currently offers a variety to those developers who include affordable housing such as waivers centives to encourage production of affordable housir 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 identifying potential funding sources and will state and federal, to facilitate solutions. work cooperatively with the County of Orange and nearby cities • Work with the Orange County Board of Supervisors and to create a local affordable housing bond program. 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 such as expedited review of ADU permits, pre-approved ADU design restricted affordable ADUs, and consideration of an ADU 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.

The Southwest Regional Council of Carpenters recommends that the A requirement for use of union construction labor is a broader City 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 Niguel 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- fordable 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 density 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 March JuneOctober 2023 C-7

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Comment How this comment is addressed
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-project related open space amenities.

In 2022, as identified in Table B-23, "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 Niguel City Center" and "Cove @ El Niguel" identified in Table B-23 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.

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 signiticant 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, I am 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 currently 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 density of a project from 50 units to 120 units per acre when affordable housing, community facilities, and/or non-project- related funding of open space amenities are provided.
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.), March JuneOctober 2023 C-8

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Comment How this comment is addressed
current and projected 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. evaluate and amend the Gateway
Specific Plan to mandate that any public benefit provided to achieve a density of higher than 50 du/ac shall include a provision of affordable housing.

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 Governmen® Griffin Enright Architects (GEA) to facilitate five virtual conducted a charette to consider the best use for it. I attended thos workshops to solicit, consider and document community input 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 the Gateway Specific Plan. existing building (Scheme Nos. 1, 2, and 3), reducing the 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 staffs 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 The sites inventory shows that 220 affordable units are in the Buie As noted in Table B-45 "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 tha 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 March JuneOctober 2023 C-9

THE CITY OF LAGUNA NIGUEL HOUSING
Comment How this comment is addressed
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-5-6 include affordable housing? "Underutilized Sites Inventory". However, as shown in revised Table B-56, 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 prospective developers.
550 units by 2029. outreach to affordable housing developers and provide administrative assistance to them in seeking available State and federal funding and/or tax credits for the construction of low-income units.

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Figure C-1
Housing Element 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 Public Law Center Californians for Home Ownership Jamboree Housing Corp.

Matthew Gelfand 17701 Cowan Avenue
601 Civic Center Drive West 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 92612 Irvine, CA 92614 Lake Forest, CA 92630 Dayle Mclntosh Center OC Housing Providers Cal. Consortium of Addiction South County Branch Programs & Professionals
24012 Calle De La Plata # 110 25241 Paseo de Alicia, Suite 120 2400 Marconi Ave Suite C Laguna Hills, CA 92653 Laguna Hills, CA 92653 Sacramento, CA 95821 OC Business Council Neighborhood Housing Services of
OC Housing Trust Orange County
2 Park Plaza, Suite 100 198 W. Lincoln Ave., 2nd Floor 198 W. Lincoln Ave., 2nd Floor Irvine, CA 92614 Anaheim, CA 92805 Anaheim, CA 92805
BIA/OC Habitat for Humanity of Orange County City of Laguna Hills 2200 S. Ritchey St. Community Development Director
17744 Sky Park Circle #170 24035 El Toro Rd
Irvine, CA 92614 Santa Ana, CA 92705 Laguna Hills, CA 92653 City of Mission Viejo Community Outreach Coordinator City of San Juan Capistrano Community Development Director Regional Center of Orange County Development Services Director 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 Scott Richter OC Development Services Moulton Niguel Water District [email protected] P.O. Box 4048 P.O. Box 30203
Santa Ana, CA 92702-4048 Laguna Niguel, CA 92607
South Coast Water District
31592 West Street
Laguna Beach, CA 92651
March JuneOctober 2023 C-11

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Figure C-2
Housing Element FAQ
City of Laguna Niguel
2021 Housing Element FAQ

1. What is a Housing Element?
development.

Land Use
Open Space & Parks
Circulation
Public Facilities
Noise
Seismic/Public Safety
Housing
Growth Management
Community Service Standards
current and future residents and set for pate is and gets of agures guare State lave establishes detailed requirements for Housing Elements, which are summarized in California Government Code Section 65583:
housing element shall consist of an identification and analysis of existing a bjected housing needs and a statement of goals, policies, quantified objectiv emergency shelters, and shall make adequate provision
• California Government Code Sec. 65300 er sea.

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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 blanning 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 assume control over City land use decisions. HCD certification establishes a 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.

Eligibility for grant funds. Housing Element certification Cans tate an ends cos of some reas that would otherwise rely on the City's General Fund
Laguna Niguel's last Housing Element update was completed in 2013 and certified by HCD as fully compliant with State law.

3. What are the most important issues that must be
addressed in the Housing Element update?
le major issues that must be addressed in the Housing Element update are: 1) ho ty policies, plans and regulations held to meet the region's housing needs for perso 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 Regional Housing Needs. Under State law' all cities are required to plan for additional housing to accommodate population growth and C 6558
California Government Code Sec. 65585
• AB 101 of 2019
•California Government Code Sec. 65583
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Laguna Niguel 2021 Housing Element FAQ
: Transional aousmodation for persons with disabilities • Sonic boing and other alies eving the homeles

4. What is "affordable" housing?
By definition, housing is considered "affordable" when total housing cost, including utilities, is no more than 30% of a family's gross income. State law describes five income categories, which are based on county median income as shown in Table 1.

Table 1. Household Income Categories
Income Category % of county
median income
Extremely low Up to 30%
Very low 31-50%
Low 51-80%
Moderate 81-120%
Above moderate Over 120%
Source: California Government Code Sec. 65584(f)
Affordable housing costs for all jurisdictions in Orange County are determined based on the income categories shown in Table 2. These incomes, rents and housing prices are based on a 4-person family and are adiusted for different family sizes.

Table 2. Income Categories and Affordable Housing Costs - Orange County Maximum Affordable Affordable Price
Income Category
Income Rent (est)
Extremely Low $38,450 $961 (1)
Very Low $64,050 $1,601 (1)
Low $102,450 $2,562 (1)
Moderate $123,600 $3,090 $500,000
Above moderate Over S123.600 Over $3.090 Over $500.000
Source: Cal. HD, HD Planing sing is typically at the moderate income level • California Government Code Sec, 65583(a)(5)
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Laguna Niguel 2021 Housing Element FAQ

5. What is the "RHNA" why is it important?
In 2019 HCD determined that the total new housing need for the entire SCAG region in the 6' Housing Element cycle is 1,341,827 units.

Table 3 shows the 6' cycle RHNA allocations for Laguna Niguel, Orange County, and the entire SCAG region.

Table 3. 6* Cycle RHNA - Laguna Niguel, Orange County and SCAG Region Orange
County
Housing need allocation 2021-2029 183,861 1,341,827
Source: SCAG. 3/4/2021
The RHNA also distributes each jurisdiction's total housing need into four income categories (the extremely-low and very-low categories are combined for RHN purposes). Laguna Niguel's 6" cycle RHNA allocation by income category is shown in Table 4.

Table 4. 6" RHNA by Income Category - Laguna Niguel
Extremely Low Above
+ Very Low - Low Moderate Moderate Total
348 202 223 434 1,207
Source: SCAG, 3/4/2021
Is the RHNA a construction mandate?
•Calfornia Government Code sec. 6584 er sea.
https://scag.ca.gov/housing
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Laguna Niguel 2021 Housing Element FAQ

7. What must cities do to comply with the RHNA?
The Housing Element must provide an evaluation of the city's capacity for additional housing based on land use patterns, development regulations, other development constraints (such as infrastructure availability and environmental conditions) and real estate market trends. The analysis must be prepared at a parcel-specific level of detail and identify properties (or "sites") where additional housing could be built consistent with City regulations. This evaluation is referred to as the "sites analysis" and State law requires the analysis to demonstrate that the city has adequate capacity to fully accommodate its RHNA allocation in each income category. If the sites analysis does not demonstrate that adequate capacity exists to fully accommodate the RHNA, the Housing Element must describe what steps will be taken to increase capacity commensurate with the RHNA - typically through amendments to land use and zoning regulations that could facilitate additional housing development. Such amendments typically include increasing the allowable residential density or allowing housing to be built in areas that are currently restricted to only non-residential land uses.

8. Why are cities in high-cost areas expected to have
affordable housing? Low-cost housing is not
economically feasible here due to high land prices.

State housing laws are based on the premise that every city has an obligation to accommodaté a range of housing types for persons at all income levels. community is dependent on a variety of low-and moderate-income workers in jobs such as landscaping, building maintenance, child and elder care, medical technicians, personal services, clerical support and retail trade. While the existing housing stock serves the needs of many residents, market rents and prices are higher than families can afford. In addition, low-wage jobs have increased at a much faster rate than affordable housing is being built.
• California Government Code Sec. 65913.4 (SB 35 of 2017) March 2021 Page 5
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Laguna Niguel 2021 Housing Element FAQ

9. Why is the RHNA allocation so high?
INA allocation is so much higher than the 5' cyc
Existing need: 577.422 units
Projected need: 764.405 units
Total need: 1,341,827 units
As seen from this breakdown, if existing need were excluded (as was the case in prior RHNA cycles) the total need would be similar to the 4' cycle RHNA. are to nor yes even though the real true lie eat a n
rounties, a scations as pore tha or me housinge deities flore man througgele met through the redevelopment of older commercial properties.

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Figure C-3
Online Housing Survey Results
2021 Housing Element Update Survey
Q1 Do you currently live and/or work in Laguna Niguel?
Answered: 286 Skipped:

I live in
Laguna Niguel
I work in
aguna Nigue
I live and
work in Lagu...

I do not live
or work in...
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES

76.57% 219
I live in Laguna Niguel

3.15% 9
I work in Laguna Niguel

16.08% 46
I live and work in Laguna Niguel
I do not live or work in Laguna Niguel 4.20% 12
TOTAL 286
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2021 Housing Element Update Survey
Q2 If you live in Laguna Niguel, how long have you lived here? Answered: 261 Skipped: 25
I do not live
n Laguna..

Less than 1
year
1-5 years
6-10 years
11-20 years
21+ years
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES

0.77% 2
1 do not live in Laguna Niguel

4.98% 13
Less than 1 year

13.03% 34
1-5 years

14.18% 37
6-10 years

18.01% 47
11-20 years

49.04% 128
21+ years
TOTAL 261
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2021 Housing Element Update Survey
Q3 How satisfied are you with your current housing situation? Answered: 259 Skipped: 27
Very satisfied
Somewhat
satisfied
Somewhat
dissatisfied
Dissatisfied
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Very satisfied 67.57% 175
Somewhat satisfied 21.62% 56
Somewhat dissatisfied 6.56% 17
Dissatisfied 4.25% 11
TOTAL 259
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2021 Housing Element Update Survey
Q4 If you live in Laguna Niguel, select the type of housing unit you reside in:

Answered: 260 Skipped: 26
Single-family
home
Condominium
Apartment
Second
unit/guestho...

Senior citizen
housing
Experiencing
homelessness...

I do not live
in Laguna..
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Single-family home 78.08% 203
Condominium 18.08% 47
231% 6
Apartment
Second unit/guesthouse/ Accessory dwelling unit (ADU) 0.00%

0.77% 2
Senior citizen housing

0.00% 0
Experiencing homelessness (unsheltered)

0.77% 2
I do not live in Laguna Niguel
TOTAL 260
4 / 18
March-October 2023 C-21

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Q5 Do you rent or own the home you live in?
Answered: 261 Skipped: 25
Own
Rent
Live with
other househ.

Currently,
experiencing...
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Own 87.74% 229
10,73% 28
Rent
Live with other household (neither own nor rent) 1.53%
Currently experiencing homelessness 0.00%
TOTAL
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March October 2023 C-22

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Q6 If you reside in a single-family house, does the property have a second unit / guest house / ADU?
Answered: 234 Skipped: 52
Yes
No
40% 90% 100%

ANSWER CHOICES RESPONSES

1.28% 3
Yes

98.72% 231
No
TOTAL 234
6 / 18
March-October 2023 C-23

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Q7 Is this second unit / guesthouse / ADU occupied?
Answered: 23 Skipped: 263
N/A
Yes
No
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES

82.61% 19
N/A

8.70% 2
Yes

8.70% 2
NO
TOTAL 23
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March October 2023 C-24

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Q8 Please select the top reasons you choose to live, or would like to live in Laguna Niguel. Check all that apply.

Answered: 241 Skipped: 45
Safety o
neighborhood
Quality/
ambiance of..

Cleanliness of
streets and..

Quality of home
Proximity to
shopping and..

Quality o
local school..

Proximity to
medical care
City services
and programs
Proximity tol
family
Proximity to
Jobs
I do not wanti
to live in..
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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March October 2023 C-25

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey

ANSWER CHOICES RESPONSES

82.16% 198
Safety of neighborhood

75.93% 183
Quality / ambiance of neighborhood

74.69% 180
Cleanliness of streets and surroundings

50.21% 121
Quality of home

43.98% 106
Proximity to shopping and services
Quality of local school system 36.51% 88
Proximity to medical care 35.27% 85
City services and programs 34.44% 83

27.39% 66
Proximity to family

25.73% 62
Proximity to jobs
I do not want to live in Laguna Niguel 2.49%
Total Respondents: 241
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March-October 2023 C-26

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Q9 How important are the following concerns to you?
Answered: 245 Skipped: 41
Maintaining
the characte
Fair/Equitable
housing.

Ensuring that
children who...

Encouraging.
the.

Ensuring thad
the housing.
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March October 2023 C-27

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Establishing
programs to...

Establishins
special need..

Integrating)
affordable.

Providing
shelters and..
0% 10% 30% 40% 50% 60% 70% 80% 90% 100%
Very impo: tant Sunewhat impo tant Not incortant Don't-now 11/18
March October 2023 C-28

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey

VERY SOMEWHAT NOT DONT TOTAL WEIGHTED

IMPORTANT IMPORTANT IMPORTANT KNOW AVERAGE
Maintaining the character of existing residenti 74.69% 17.14% 1.22% eighborhoods in the Cil 183 42 245 135

41.49% 30.71% 19.50% 8.30%
100 74 47 20 241 1.95

39.67% 36.36% 21.07% 2.89%
96 88 51 7 242 1.87
Encouraging the rehabilitation of existing housing 37.50% 41.25% 12.92% 8,33% stock 90 99 31 20 240 1.92
Ensuring that the housing market in Laguna 33.61% 31.97% 31.97% 2.46% 82 78 6 244 2.03
Niguel provides a diverse range of housing types,
including single-family, townhomes, apartments.
duplex/triplex, and condominiums to meet the
Establishing programs to help at-risk homeowners 31.82% 41.74% 22.31% 4.13% keep their homes 77 101 54 10 242 1.99
Establishing special needs housing for seniors. 31.28% 34.57% 31.69% 2.47% large families, veterans and/or persons with 76 84 77 6 243 2.05 disabilities
Integrating affordable housing throughout the 25.51% 21.40% 49.79% 3.29% community to create mixed-income 62 52 121 8 243 2.31
neighborhoods
Providing shelters and transitional housing for the 18.11% 25,51% 49,79% 6.58% homeless, along with services to help move 44 62 121 16 243 2.45 people into permanent housing
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March October 2023 C-29

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Q10 What type of housing do you think is most needed in the City of Laguna Niguel? Check all that apply.

Ansivered: 231 Skipped: 55
Single-family
houses
Condominiums
Townhouses
Senior Housing
ADUs/Secondary
Units or..

Deed:
restricted.

Housing fo
persons with..

Apartments
0% 10% 20% 30% 40% 50% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
Single-family houses 57.58% 133
Condominiums / Townhouses 35.93% 83
Senior Housing 31.17% 72
ADUS/Secondary Units or "Granny Flats" 22.94% 53

18.61% 43
Deed restricted affordable housing
17,32% 40
Housing for persons with Disabilities

12.99% 30
Apartments
Total Respondents: 231
13 / 18
March-October 2023 C-30

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Q11 What do you think are the most important housing related issues facing Laguna Niguel today? Check all that apply.

Answered: 241 Skipped: 45
Affordability
Too much new
housing
Lack of senior
housing,
Age of housing
stock
Lack of
support for..

Lack of deed
restricted.

Not enough new
housing.

Process for
building.

Lack of
support for..

Lack of
housing for...

Lack of
housing for...
0% 10% 60% 70% 80% 90% 100%
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March October 2023 C-31

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey

ANSWER CHOICES RESPONSES
Affordability 60.17%
Too much new housing development 30.71%
Lack of senior housing 20.33%
Age of housing stock 19.50%
Lack of support for homeowners 16.60%
Lack of deed restricted affordable housing 12.86%
Not enough new housing development
Process for building housing is too burdensome 25
Lack of support for renters
20 Lack of housing for smaller families
19 Lack of housing for large families
Total Respondents: 241
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March October 2023 C-32

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Q12 What age range most accurately describes you?
Answered: 243 Skipped: 43
65+
55-64
45-54
35-44
25-34
18-24
Under 18
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ANSWER CHOICES RESPONSES
65+ 30.45% 74
55-64 28.81% 70
45-54 18.93% 46
35-44 15.64% 38
25-34 4.53% 11
18-24 1.65% 4
Under 18 0.00%
TOTAL 243
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March October 2023 C-33

THE CITY OF LAGUNA NIGUEL HOUSING
2021 Housing Element Update Survey
Q13 Are there any additional comments/suggested goals that you would like to provide the City for its 2021 Housing Element update? Answered: 97 Skipped: 189
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March October 2023 C-34

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2021 Housing Element Update Survey
Q14 Please provide an email address if you would like to be added to the Housing Element Update interested parties list.

Answered: 86 Skipped: 200

ANSWER CHOICES RESPONSES
Name 0.00%
Company 0.00%
Address 0.00%
Address 2 0.00%
City/Town 0.00%

0.00%
State/Province
ZIP/Postal Code 0.00%
Country 0.00%
Email Address 100.00%

0.00%
Phone Number
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March-October 2023 C-35

THE CITY OF LAGUNA NIGUEL HOUSING
Summary of all responses for Question No. 13:

Are there any additional comments/suggested goals that you would like to provide the City for its 2021 Housing Element update?

2. ADA ACESSABLE units are in very short supply for smaller famlies

3. ADU's, shelters, and changing zoning laws to allow for high density projects in and around neighborhoods decreases the value of property near those projects. Owners of property bought based on the current zoning. If zoning is changed surrounding owners should be compensated for the loss in quality of life these high density projects create.

4. Affordable apartments that are at least 750 square feet so that those who are downsizing can find adequate housing. More 55 + housing is needed.

5. Affordable housing is a big priority.

6. Architecture of new businesses should have a standard theme

7. At Risk housing has to be combined with related services like medical, psych, addiction detox if being considered

8. Availability of more affordable housing. Lower income families should have easier access to local

9. Building more apartments will not help traffic or parking as some people will still live 10 - 12 of them in a single apartment no matter what the cost is i.e. Section 8 every single person should is well it's not being done.

10. City has lost its charm. I don't mind apartments but the ones that were built are an eyesore. We should be building Arts; Entertainment and retail in that area to support the existing community. We are overcrowded
March October 2023 C-36

THE CITY OF LAGUNA NIGUEL HOUSING

11. City is doing a great job.

12. Do not build any more multi-family, condominiums, and/or apartments. If other cities want to build those housing types, then let them build them but do not build them in our city. Our community if affluent enough (through tax revenues) to retain the environment we currently have in place

13. do NOT dilute the quality of Laguna Niguel by making it attractive to homeless to come here

14. Do not let pending legislation like SB50 (might have died) scare the LN City Council into making development decisions that are not in the best interest of the City. You have in the past.

15. Don't overdeveloped and ruin this city

16. Forward thinking keeping safety in mind for city residences. Keeping the quality of living high in the city.

17. I definitely agree we need to do something to address the affordable housing situation but would note the city already recently built thousands of apartments near the freeway that can be fashioned in part for this purpose. I'm sure many of those are vacant, which city leadership knows. I would approach new development very carefully and not just let the real estate developer donors guide these decisions. This has to be done with the best interests of the community in mind, including maintaining the quality of the schools, which are already overcrowded. I would be particularly opposed to any development of current open space natural environment areas in the city.

18. i feel we should be able to build additional housing on the side or in the back for additional income and/or additional family members to live in

19. I hope you take these survey's into account, before ramming through low housing down our throats. I moved from a low income neighborhood, and the reason I believe this area stays safe, is because it's limited access to EVERYONE being able to move in. In a nut shell, the higher the population, the more chances neighborhood can become run down.

20. I think the city has done a good job with the exception of developing the Forbes corridor. That big Apex apartment building took the entire cities view of the Saddleback Valley and we'll never get that back. You gave that to apartment dwellers, some of which are section 8, and the other 60,000 people never get that beautiful view when they were driving to the freeway again. No for thought. Also, the monuments that identify communities look aged except for the new Summerwalk community one. It looks appropriate for 2021.

21. I think the overly strict limitations on what types of businesses can operate out of an owner's home has an impact on the affordability and attraction of living in Laguna Niguel. I would like to see encouragement for alternative building materials and technology in homes, as well as R2 March October 2023 C-37

THE CITY OF LAGUNA NIGUEL HOUSING
and >1 ADU allowance in residential zones (ie, increasing density on a lot-by-lot basis as a decision of the homeowner, not the city). Affordable rent as defined by 30% of one's income for low-middle class is scarce to non-existent here and that is a huge burden in the wake of the pandemic that I think needs to be aggressively remedied ASAP. Thank you for soliciting my input.

22. I would like to see something regarding neighborhood developments and traffic addressed.

Many new and existing residential streets are designed or renovated to become through streets, connect high traffic streets. Neighborhoods with cul-de-sacs or dead ends are a thing of the past. These type of changes are impacting neighbor relationships and safety. It is difficult to be outside your home with kids when people drive through your residential neighborhood at 2!

23. I would realy like to see the City move forward with the Town Center development on the OC property. This project will provide a sensible number of new housing units and also revitalize a part of the city that is underutilized

24. I'd prefer the city to focus on protecting homeowners who are already burdened with "housing opportunities" (sober homes). While this housing element is a mandatory review, I'd encourage all stakeholders to limit capacity and availability; our city is already over-encumbered with housing elements that have put our community's safety and integrity at risk.

25. Increasing housing also increases cars and we have very little room for more cars.

26. keeping all communities and surroundings clean noise reduction, excessive loud music from cars after 10 pm, constant door slamming making more smoke free communities

27. Laguna Niguel is situated in an area where access to public transportation and low income services was not part of the original plan. The reason I purchased my home here was the fact that this was an upper mobile community. I would believe that most of the people who have purchased homes and Condominiums here, have the same mind set.

28. Laguna Niguel was a planned community and the number of housing units was set as to not over populate and take from the environment/nature we share and enjoy. That needs to be taken into account before we push new building in Laguna Niguel

29. Let's keep this city safe, affordable and easy to get around.

30. Lots of petty crime coming across the SpotCrime site. Please focus on all the random hoodlum crime souring the area. People move to a quiet area like Laguna Niguel to try and get away from all the riff raff.

31. Mixed use properties with housing and retail together March October 2023 C-38

THE CITY OF LAGUNA NIGUEL HOUSING

32. No AUD's!

33. No homeless housing!!

34. no low income housing or sober living arrangements

35. No more apartments

36. No more apartments that are already ridden with crime, density, and not managed well.

37. No more building of new homes or apartments. Too many residents already

38. No more housing and development. The city has too much traffic, congestion, and pollution.

39. Our city has limits for land that can be developed. If we build more housing, we need to ensure that it has adequate facilities to go with it.

40. Our open, wild spaces are such a enjoyment in living in Laguna Niguel. Enuff traffic on our streets! Where is the water going to come from? Will we look like AZ?

41. Parking problems around large apartment complexes. Not enough parking provided for tenants living in these apartments causing illegal parking on surrounding city streets and this encouraging thefts and break-ins to these Vehicles.

42. Planning for mixed-use and walkable development, including apartment and condo housing and deed restricted affordable housing, in Town Center and near the Chet Holifield building, as well in other redeveloped shopping centers.

43. Please consider other special needs groups like special needs and disabled adult housing opportunities. Its not just seniors that have special needs.

44. Please consider the impact on street traffic when developing new housing.

45. Please do not allow Laguna Niguel to turn into Santa Ana with overcrowded neighborhoods and renting them out at astronomical prices or just letting them sit empty. I've never seen figures fo now often that is happening, yet we all know it's real and no one wants to address that

46. Please do not bring the La & San Diego. County attitudes here. We've worked hard to catch up to the upper class. We're mostly made up of middle class - don't bring us down March October 2023 C-39

THE CITY OF LAGUNA NIGUEL HOUSING

47. Please do NOT make the same mistake as other cities (ex. Irvine) and start building offices/apartments/condos everywhere. What makes Laguna Niguel so special is that wherever you go in the city, you are always surrounded by beautiful trees, hills, and natural landscape The existing housing blends into the natural landscape- which is exactly how it should be. Please preserve and protect all of the existing natural landscape in our city. We do NOT need to become another OC city with endless construction of offices/apartments/etc. If people want to live surrounded by buildings, they can move to irvine. Our beautiful city of Laguna Niguel should never become an over-developed nightmare. Please protect our city for those who live here now, and for future generations to enjoy!

48. Please stop building massive apartment buildings that are ugly and out of character for Laguna Niguel. We have enough apartments that no one single family can afford that multiple families live in one apartment and cram 6+people into one unit.

49. Restrict low income and section 8 housing to a minimum. It bring down property value, trashes our neighborhood, it brings down quality education for our kids in school. Seaside apts and Windridge apts. are a shame to have in such nice city. If people want to live like hoodlums they can go to Santa Ana and Anaheim. Those people go park their extra vehicles on Camino de los padres and the city doesn't send anybody pick up their trash.

50. Sox years ago, we downsized and moved from our home of 42 years to Laguna Niguel because we wanted a clean, well maintained, safe environment that provided a feeling of strong community.. We moved from north Orange County where there was so many changes in a very short period of time that we felt like we were strangers, and we did not feel safe. It was in an unincorporated area and it felt to us like it was the Wild West of Orange County. It lacked order, safety, a sense of community, and multiple families were living in one small home. That resulted also in not enough parking. People were doing whatever they pleased without thoughtful consideration to their neighbors. We love Laguna Niguel the way it is and would not like to see it change. It's so beautiful here. We think it is perfect.

51. Specifically, I think we need more townhomes for first time buyers. Townhomes could be taller, skinnier, 3 stories (meant for younger folks/young families) up to 2000 square feet type of townhome.

52. stop building apartments and take care of the homeless issue. and take care of the sober living homes in our community. crime is getting worse due to all of the "affordable" housing

53. Stop building high density apartments! Low income housing has brought crime issues. No rehab housing.

54. Stop with the affordable housing push. If people cannot afford to live here, they should find somewhere they can. I moved here because of the quality of life and the fact that this city was one of the wealthiest in the US and want to keep it that way. If people can't afford to live here that is not my problem Reduce the number of rental properties here. People who rent here March October 2023 C-40

THE CITY OF LAGUNA NIGUEL HOUSING
don't have their skin in the game and should have minimal say in community decisions. This city is moving in the direction of anti homeownership and it is messed up.

55. Teachers and healthcare workers and postal workers need to be able to afford housing in Laguna Niguel.

56. The areas that are lower income around me, also have tons of issues. Seems like the cops and their helicopters are always circling the same community with reports of crime, domestic abuse homeless, low income riff raff. We're 10 mins from the beach and we're in SoCal. Sorry if you can't afford that, but not sorry. There's plenty of other cities that can accomodate. I'm tired of everone wanting things to be handed out to them. Just because you "want" to live here doesn't mean you are entititled to.

57. The city appears to have over developed shopping areas / strip malls and restaurants. There are many vacancies, fast turnover and some are becoming run down. This indicates there is not enough need for what has been built.

58. The city needs to do their share in helping the homeless with transitional and permanent housing.

59. The City needs to look at ways to keep Laguna Niguel attractive to younger families to keep the community vibrant, attractive to new residents, and maintain housing prices for its current residents. Creation of new housing is not the only way to do this, the City needs to look at provision of community services and wise use of the undeveloped Town Center and Ziggurat property - not just to create new housing which is not necessarily needed, but to put in restaurants (lacking in LN), services, and commerce and open civic space that it attractive and would be enjoyed by a more vibrant mix of residents.

60. The need for localized around town transit for housebound non driving seniors - similar to Laguna Woods bus system.

61. The safety of Laguna Niguel is extremely important for us especially as a young family. Things like housing for the homeless, etc will only cause families like ours to move. Laguna Niguel is a wonderful city for California but the more things change or become burdensome or unsafe for families the more it will make sense to relocate.

62. There are too many apartments/condos being built. This has caused traffic to worsen, parking lots at stores are full all the time, amount of time it takes to get anywhere has increased and with more people it is louder than ever before. Street noise is terrible now. Loud cars snd motorcycles run rampant. None of this was the case when we moved here 10 years ago. Since March-October 2023 C-41

THE CITY OF LAGUNA NIGUEL HOUSING
then-apartments went in and everything got worse. More single family homes should have been built-NOT more apartments.

63. There is commercial zoned land or Federal property that should be changed to mixed use where enior, assisted or disabled and affordable housing could be added and mixed with retail, offic ind medical office to serve those residents and the communit

64. There was very little in this survey to address a regional approach to our homeless problem

65. Until government requires permanent diversity in housing regulation, the problems of racial, ethnic, class, etc., will continue unabated.

66. We bought from an original owner (1970 neighborhood) and we find the permit process to make improvements on our aging property significant financial and time hurdles. This makes living here more challenging on young families trying to fix up these older homes. Can we make the permit process easier and more affordable so young families purchasing older homes can actually make these improvements?

67. We have no program for affordable housing or plans for providing housing here in our city or elsewhere for people who are homeless, nor, it seems, any program for helping those in danger of becoming homeless. We need to change this, especially as we consider what to do with the current federal building as it comes up for sale and reconstruction.

68. We live in one of the best Cities in the state of California. Well maintained with a phenomenal City Council & Planning Commission that is fiscally responsible. Streets, landscape, amenities all terrific.

69. We moved to and invested in Laguna Niguel to move away from high density housing areas. We worked to build this community up... not interested in seeing it overrun with homelessness, low income housing, in maintained neighborhoods and run down schools. 7O. WE NEED FOR LOWER INCOME RENTAL UNITS MORE AVAILABILITY FOR SECTION 8 renters.

71. We need low income housing, especially for those with disabilities. I am appalled that the city allowed that exorbitantly expensive senior housing on Niguel Road, one that most Laguna Chitren and tov tacome and isabe restent is eatent and shame for our millenial

72. We need more affordable housing in Laguna Niguel. Just not anywhere I frequent or where my friends live
March October 2023 C-42

THE CITY OF LAGUNA NIGUEL HOUSING

73. We need more affordable housing.

74. We need public transportation Without public transit more housing will increase traffic and create unsafe roadways

75. We need to get homeless off the streets

76. We need to provide more extremely low and very low income housing. Two adults working full time at minimum wage fall into the very low range. I am sad to see friends that are retiring and don't think they can afford to continue to live in Laguna Niguel. We need to provide housing fo seniors, workers, and the disabled. We should not expect other cities to house our workers making for very long commutes. I did not understand the last question under #8 above. I am very supportive of housing for residents that need it. I took in a friend for over 9 months a few years back because she couldn't afford the high cost of housing and she ended up moving out of the city. If my house was not already paid off, I might struggle to continue to live here.

77. Well transitional properties and places for homeless people is important I worry about putting people at risk when homes and neighborhoods are allowed to set up these transitional centers.

It brings a bad element to a regular neighborhood. Is transitional places can be safely integrated that is what is very important to me and my family as we have smail children that are out playing in the yard and we've seen in Dana point what has happened when homes are being rented for this kind of situation it's changed the complexion of the neighborhood and not in a good way or safe way.

78. What is the research on the impacts of low income housing on the school's achievement scores and discipline rates?

79. Would love more single family home new developments and no more new apartment buildings.

80. Yes. Our governor announced a funding program for ADU building about six months ago, yet I cannot locate any financial institution or city office that knows how to apply for building loans!

81. Stop building apartments in the City of Laguna Niguel. They are ruining the character of our neighborhoods in the Greenfield area of the City. There is too much density of population and too much traffic.

82. We would like to focus on quality over quantity. We want to keep Laguna Niguel as "the hidden gem" beach community. Also we prefer it remain primarily single family homes and long term residents. A few negatives impressions for younger families are the aging schools and lack of city/social events. LN schools are very aged compared to Aliso Viejo, Ladera Ranch, RMV, Irvine. an the city contribute to repairs and renovations? Also the few neighborhoods without HO here the homeowners own the slopes along major roads like Crown Valley, Golden Lanterr should receive support to improve landscaping. Laguna Niguel should focus on the unique March-October 2023 C-43

THE CITY OF LAGUNA NIGUEL HOUSING
suburban neighborhood ideally located to the beaches, amenities and highways.

Communication with realtors in the surrounding cities would also help to attract new residents and to also gain feedback from their clients.

83. Too many high rise apts too much traffic already starting to become LA where we originally

84. It's ok for Laguna Niguel to an be exclusive community- doesn't have to be affordable to all.

Living near the coast is a benefit for those that have worked hard and earned it. Not all things

85. I don't really know what the city needs for housing

86. No more high-density housing like at Apex and environs

87. Do not build any more high density stacked apts! Way too many pricey rentals recently built on Cabot. Extremely ugly architecture too. What an eyesore. I have 30+ years in the housing industry. Stop the urbanization of LN, ruining the character of the city.

88. No more giant mid-/high-rise apartments blocking the beautiful, natural landscapes and littering the roads with cars that don't follow traffic laws.

89. Leave Laguna Niguel character as it is. No more new construction, no more apartments. No permits for second home on existing lots

90. Lower rent for senior housing

91. Too much building leads to traffic, congestion, pollution, disruption for wildlife, and noise. Also have concerns over a local community integrating affordable housing known for problems and police calls due to residents. I moved to get away from crime (was a victim) and have peace of

92. I would hate to see South Orange County become like the San Fernando Valley, overcrowded and trashed

93. I'd like to see LN develop some variety in housing and neighbourhoods - Ladera Ranch, Great Park. Mixing apartments, town houses, small and larger homes - all with great amenities.

Redevelop the federal building site and all that parking!

94. Laguna Niguel needs to enter the modern age and recognize that diversity is what will make this city truly rich. Diversity of race, income, background, religion, sexual orientation, etc., and as such do everything possible to attract, be welcoming & warm, and keep all types of neighbors.

95. Moved to LN from Los Angeles County to get away from the homeless situation and crime. I like Laguna Niguel just the way it is: relatively clean and safe and lots of open, green space.

Mareh October 2023 C-44

THE CITY OF LAGUNA NIGUEL HOUSING

96. Let's keep this city safe, affordable, and easy to get around.

97. keeping all communities and surroundings clean noise reduction, excessive loud music from cars after 10 pm, constant door slamming making more smoke free communities

98. I strongly support affordable housing. We need to have affordable housing for our essential workers - our teachers, healthcare workers, postal workers. I believe we have a duty to help means more opportunities for younger generations to stay and thrive in our city.

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THE CITY OF LAGUNA NIGUEL HOUSING
Appendix D-
Fair Housing Assessment
A. Introduction and Overview of AB 686
State law (AB 686 of 2018) establishes an obligation to affirmatively further fair housing (AFFH). AB 686 defined "affirmatively further fair housing" is defined as "taking meaningful actions, in addition to combat discrimination, that overcome segregation patterns and foster inclusive communities free from barriers that restrict access to opportunity." This definition applies to persons of color, disabilities, and other protected classes. The bill added the requirement for an assessment of fair housing to the Housing Element. This actions and related to housing and community development in a way that affirmatively furthers fair housing.

In addition, the analysis also:

Prohibits the state, cities, counties, and public housing authorities from acting materially inconsistent with their AFFH obligation.
• Requires that the AFFH obligation be interpreted consistent with HUD's 2015 regulation, regardless of federal action regarding the regulation.

Adds an AFFH analysis to the Housing Element beginning in 2021. : Includes in the Housing Element's AFFH analysis a required examination of issues such as segregation and resident displacement, as well as the identification of fair housing goals.

In April 2021 the California Department of Housing and Community Development (HCD) published extensive detailed guidance regarding new AFFH compliance requirements for Housing Elements.

1. Analysis Requirements
The fair housing assessment must identify the contributing factors that cause, increase, contribute to, maintain, or perpetuate the following:

Segregation
Racially or ethnically concentrated areas of poverty (R/ECAPs) Significant disparities in access to opportunity
• Disproportionate housing needs.

The analysis must address patterns at a regional and local level and analyze these patterns over time in order to guide development of policies and programs to promote more inclusive communities.

For this AFFH analysis, "Regional Trends" relies upon demographic data primarily from the U.S. Census to describe trends in Orange County. "Local Trends" describes trends specific to the City of Laguna Niguel.

2. Sources of Information
The City used a variety of data sources for the AFFH analysis at the regional and local level. These include:
: J.S. Census Bureau's Decennial Census and American Community Survey (ACS range County Analysis of Impediments to Fair Housing Choice published in May 202 (2020 AI).

Local Knowledge
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Some of these sources provide data on the same topic through different methodologies, which results in various data outcomes. For example, the decennial census is based on a count of the entire population every 10 years while the ACS is based on a small but more detailed survey of the population conducted every year.

For this reason, the Census data and ACS data often show some differences. This AFFH analysis includes the most relevant data source for identifying fair housing issues and trends.

Many of the maps in this Appendix show data at the census tract level. Census tracts in the City of Laguna Niguel and adjacent areas are shown in Figure D-1. It should be noted that only a very small portion of census tract 626.33 (located at the western border, south of Aliso Creek Road and west of Alicia Parkway) is within city limits. This census tract includes a church and the Aliso and Wood Canyons Regional Park and does not contain housing units; it is therefore not discussed further in the Fair Housing Assessment. Similarly, a small portion of tract 626.40 (located at the western border, north of Aliso Creek Road and west of Alicia Parkway) consisting of open space land does not contain housing units in the City and is not discussed further. A portion of census tract 423.20. located in the northeastern corner of the City (north of Aliso Creek Road and west of La Paz Road). is comprised primarily of public/institutional and commercial uses including the Chet Holifield Federal Building. Although this census tract does not contain any housing units within Laguna Niguel. it has been included in this Fair Housing Discussion because the federal government is exploring options for future use of the 92-acre Chet Holifield Federal Building site. However, data related to this tract may not be representative of existing housing conditions in Laguna Niguel.

Figure D-1
Census Tract Map - Laguna Niguel
MISU vieta Laguna Hills Mission \
123.28
423.33 320.13
guna-Beac
423.38

23.19 320.22
Ladera
320.58
guel
123.30
423.31
423.1 320
423.32 423,12
San Juan Capistrano
423.38 (23.10
-Diego-F 422.03
Dana Point
Source: U.S. Census, On the Map, 2022
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The City also used data from the 2020 Orange County Analysis Of Impediments to Fair Housing Choice (2020 Al). The 2020 Al provides local knowledge and includes various sources of locally gathered information. This section also used HCD's 2020 Analysis of Impediments to Fair Housing Choice for its regional findings and data.

HCD has developed a statewide AFFH Data Viewer which consists of statewide data layers from various sources and visually displays each fair housing issue within the full scope of the assessment of fair housing B. Assessment of Fair Housing Issues

1. Local Context and Background
Human occupation in present-day Laguna Niguel dates back to the Pre-Columbian period, where the Acjachemen people resided in a village called Niguel, located near Aliso Creek. In 1776, the Spanish established the Mission in San Juan Capistrano. An area near the Mission was designated for cattle raising and was named Rancho Niguel and now approximates the present-day boundary of Laguna Niguel. Following Mexico's independence from Spain in 1821, the Mission in California was divided into different pueblos and the Mexican Government issued land grants to residents. Juan Avila obtained ownership of Rancho Niguel through a land grant in 1842. He lost his ownership in 1865 when he became bankrupt following a severe drought. Following his bankruptcy, Lewis Moulton and Jean Pierre Daguerre bought the land. They established the Moulton company to oversee the 19,000 acres of local ranch land. In 1951, the Moulton and Daguerre families divided Moulton Company land. In 1959, the real estate development firm Cabot, Cabot & Forbes, and Paine Webber partnered to form the Laguna Niguel Corporation, which purchased the land from the Daguerre family. The focus of this effort was to develop the land and create one of California's first master-planned communities, known today as the City of Laguna Niguel.

2. Fair Housing Enforcement and Outreach
It is important that municipalities and fair housing organizations ensure residents are aware of fair housing laws and rights through education and outreach efforts. The Fair Housing Council of Orange County (FHCOC) is a non-profit organization and operating member of the National Fair Housing Alliance that ensures equal access to housing opportunities through by eliminating housing discrimination in Orange County. The FHCOC provides services which that include fair housing enforcement and education, landlord/tenant counseling, mediation, and homebuyer HUD counseling which includes first-time homebuyer education and mortgage default counseling.

During the 2015 to 2019 reporting period, the County of Orange Urban County partnered with the FHCOC in the following actions to overcome impediments to fair housing choice:

Served over 9,550 residents regionally through conducting or participating in 467 education and outreach activities.

Distributed over 82,130 pieces of educational fair housing literature.

Held 32 training sessions for rental property owners/managers, presented 16 fair housing seminars, and 70 general fair housing workshops throughout the County.

Received 363 allegations of housing discrimination; and opened 179 cases which that warranted further investigation and/or action.
• Conducted 362 systemic onsite tests, including 51 tests occurring in the jurisdiction and 215 other testing activities.
• Addressed 24,766 housing issues or disputes for 7,664 individual households regionally.

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3. Fair Housing Enforcement and Testing
According to the 2020 AI, fair housing complaints can be filed with the following entities:
• The California Department of Fair Employment and Housing (DFEH) accepts, investigates, conciliates, mediates, and prosecutes complaints under FEHA, the Disabled Persons Act, the Jnruh Civil Rights Act, and the Ralph Civil Rights Act. The DFEH developed a program under HUD's partnership in 2003 which works with tenants, landlords, and property owners, and managers to mediate housing discrimination complaints.

The Fair Housing Council of Orange County (FHCOC) conducts community outreach and education, homebuyer education, mortgage default counseling, landlord-tenant mediation, and limited low-cost advocacy, provided in English, Spanish, and Vietnamese. The Fair Housing Council also investigates housing discrimination claims and assists with DFEH referrals.

Additionally, the FHCOC may also be a part of the litigation process challenging discriminatory housing practices.

The Fair Housing Foundation provides landlord-tenant counseling and mediation, rental housing counseling, community outreach and education, screens fair housing complaints, investigates through fair housing testing, and will engage in conciliation or mediation efforts or refer complaints to the appropriate administrative agencies. The Fair Housing Foundation serves parts of Los Angeles County and several cities in Orange County.

The Community Legal Aid SoCal serves low-income residents of Orange County and Southeast Los Angeles County to provide legal assistance across a broad range of fair housing issues, including "eviction, federally or otherwise publicly subsidized housing, substandard housing, landlord/tenant issues, homeownership issues, homeowners' association issues, mobile homes, housing discrimination, and predatory lending practices. "16 The Fair Housing Testing Program was established in 1991 by the Civil Rights Division. According to the Department of Justice, Fair Housing Testing is the use of an individual to pose as a prospective renter to identify housing discrimination based on race, national origin, disability, or familial status in violation of the Fair Housing Act.

Regional Trends
The HUD Office of Fair Housing and Equal Opportunity (FHEO) presents housing discrimination data by basis for Orange County. This includes FHEO inquiries and discrimination cases. Table D-1 shows FHEO discrimination cases in Orange County by race, disability, and familial status basis in 2010 and 2020. Since 010, the total number of cases have has decreased by about 47 percent. While the County has seen an overal ecrease in total cases, the proportion of cases related to disability status has increased from 58 to 61 percen 16 https://www.communitylegalsocal.org/programs-services/area-of-law/housing/ March October 2023 D-4

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Table D-1
FHEO Discrimination Cases - Orange County
2010 2020
Basis Cases Percent Cases Percent
Race 10 19% 3 11%
Disability 31 58% 17 61%
Familial Status 8 15% 4 14%
Total 53 100% 28 100%
Source: CD AFFH Data Viewer
Local Trends
In Laguna Niguel, the FHOC received 10 allegations of housing discrimination and opened 3 cases. In ddition, the FHCOC performed 18 paired, on-site, systemic tests for discriminatory rental housing practices Regarding housing dispute evaluation and resolution, the FHOC assisted 367 unduplicated household According to the HCD AFFH Data Viewer, there have been 21 total FHEO inquiries (0.31 FHEO inquiries per 1,000 people) in Laguna Niguel from 2013-2021. Of these inquiries, four were related to disability status, one was related to racial identity, two were related to national origin, and one was related to sexual orientation. Of the 21 inquiries, two were found to have no valid basis, six were found to have no valid issue, two were counted as "other disposition", and one was counted as "retaliation."

4. Fair Housing Education and Outreach
Regional Trends
Fair Housing Education and outreach is essential to enable community members experiencing housing discrimination to seek help. As mentioned above, between 2015-2019, the FHCOC has taken multiple educational and outreach actions to overcome fair housing impediments such as serving over 9,550 residents regionally through conducting or participating in 467 education and outreach activities, distributing over 82,130 pieces of educational fair housing literature, held 32 training sessions for rental property owners/ managers, presented 16 fair housing seminars, and 70 general fair housing workshops throughout the County.

In addition, the Orange County Housing Authority website includes the following information in 5 different languages:

Several Document Categories Fair Housing Documents, HMIS Notices, Housing Successor Agency, Operational Documents, Owner Documents, Public Notices / Public Hearings, Report Household Changes Forms, Reasonable Accommodation Request Forms, and Report Household Changes Forms.

Housing and Community Development Commission meetings, schedules, archived meetings, and ways to get involved.
• A list of various project-based housing developments that are accepting applications, links to the applications, and information on the 2020 Supportive Housing Notice of Funding Availability.

Landlord/Owner and Tenant information and assistance.

Waitlist information and updates.

Special Housing Programs including a Housing Choice Voucher (HCV) Homeownership Program, Family self-sufficiency Program (FSS), Family Unification Program (FUP), Housing and Urban Development-Veterans Affairs Supportive Housing (HUD-VASH), and more.

The Housing and Community Development (H&CD) Commission was established to cooperate with the County on housing-related matters. The H&CD Commission provides the Orange County Housing Authority's Board of Commissioners and the Orange County Community Resources Department with advice March-October 2023 D-5

THE CITY OF LAGUNA NIGUEL HOUSING
pertaining to the housing needs of low- to moderate-income households and households experiencing homelessness. In addition, the H&CD Commission provides advice on funding priorities for rental assistance, housing development, and community development.

Local Trends
The following education and outreach efforts were conducted, and achievements were made in Laguna Niguel. Information was made available in English, Spanish and Vietnamese:
• The FHCOC conducted/participated in 10 education and outreach activities in Laguna Niguel, reaching a culturally and ethnically diverse audience.
• 85 residents were made aware of fair housing laws and counseling services. landlord and 3 tenant workshops on fair housing were held in Laguna Nigu workshops were conducted for consumers and providers in Laguna Nigue • The FHCOC produced and provided written fair housing related materials in English, Spanish, and Vietnamese in Laguna Niguel.
• The City of Laguna Niguel's website includes a link to the FHCOC's on-line housing discrimination complaint reporting tool that generates an email to FHCOC. The tool is also used for other, non-discrimination, housing-related issues.

C. Integration and Segregation

1. Race/Ethnicity
The Eethnic and racial composition of a region is useful in analyzing housing demand and any related fair housing concerns, as it tends to demonstrate a relationship with other characteristics such as household size, locational preferences, and mobility.

The US Department of Housing and Urban Development (HUD) provides racial or ethnic dissimilarity trends to measure the segregation in a jurisdiction.

Dissimilarity indices can be used to measure how consistent two groups (frequently used to analyze race or ethnicity characteristics) are distributed across a geographic unit, such as a census tract or block group. The dissimilarity index ranges from 0 to 100, 0 meaning no segregation and 100 meaning high segregation among the two groups. The following ranges show how HUD views various levels of the index:
• <40: Low Segregation
40-54: Moderate Segregation
>55: High Segregation
Regional Trends
Non-Hispanic White residents make up 40.4 percent of Orange County's total population according to Table D-2 below which displays the racial demographic breakdown in the County. 54.6 percent is comprised of minority groups, with Hispanic/Latino residents making up 34.1 percent of the County's population, and Asian residents making up 20.3 percent. Of the selected jurisdictions surrounding Laguna Niguel, Laguna Hills has the most concentrated Hispanic/Latino population, where 22 percent of residents are Hispanic or Latino, while Laguna Beach has the smallest Hispanic population of 8.2 percent (and inversely the largest White population of 83.4 percent). All jurisdictions surrounding Laguna Niguel, including Laguna Niguel have lower Hispanic/Latino populations compared to the County. Figure D-2 below shows the predominant racial and ethnic population by block group in Orange County.

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Table D-2
Racial and Ethnic Composition in Laguna Niguel and Neighboring Cities Orange Laguna Dana Laguna
County Beach
White, non-Hispanic 40.6% 83.4%
Black or African American, non- 1.6% 0.8%
American Indian and Alaska Native, 0.1% 0.1% 0.0% 0.1%
non-Hispanic
Asian, non-Hispanic 3.6% 42.9% 14.6% 3.7%
Native Hawaiian and Other Pacific 0.1% 0.1% 0.0%
Islander, non-Hispanic
Some other race, non-Hispanic 0.2% 0.2% 0.1% 0.5%
Two or more races, non-Hispanic 2.9% 0.2% 4.3% 3.2%
Hispanic or Latino 17.6% 4.3% 22.0% 8.2%
3,168,044 33,769 309,014 31,613 22,991
Source: US Census Bureau 2015-2019 ACS (5-Year Estimates) Table B03002.

March October 2023 D-7

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Figure D-2
Regional Predominant Racial and Ethnic Population - Orange County Laguna B
alon
25 Miles
Predominant Population (Block Group, 2019)
5* Laguna Niguel Boundary Native American Majority l Multiple Races Racial and Ethnic Majority Asian Majority • White Majority Source: Esri, HERE, Garnin NGA. USGS. NPS
Hispanic Majority Black/African American
Majority
March October 2023 D-8

THE CITY OF LAGUNA NIGUEL HOUSING
shows the dissimilarity indices in Orange County since 1990, showing that all minority (non-white) residents combined are currently moderately segregated, and have been since 1990, although dissimilarity among white and non-white residents has been increasing over time. Based on HUD's definition of the dissimilarity Table D-3
Dissimilarity Indices for Orange County 1990-2020
Racial/Ethnic Group 1990 2000 2010 2020
Non-White/White 40.19 45. 44.67 48.27
Black/White 37.45 35.84 34.87 42.98
Hispanic/White 49.83 55.12 54.13 56.83
Asian or Pacific Islander/White 33.02 39.93 41.65 45.89 Source: HUD Dissimilarity index, 2020.

Figure D-3 and Figure D-4 below show the concentration of racial/ethnic minority groups by census block group in Orange County in 2010 and 2018. Orange County has seen an increase in diversity since 2010. In 2018, non-White populations are most concentrated in the central and northern portions of the County, primarily in block groups that have non-White populations greater than 81 percent. These block groups are shown significantly in cities such as Santa Ana, Westminster, Anaheim, Buena Park, and Norwalk. Block groups that contain the least number of non-White residents are located in the southern and southern central portions of the county, where census block groups have less than 21 percent non-white residents. These block groups are primarily located in cities such as Laguna Beach, Newport Beach, portions of Dana Point, and communities located along the foothills of the Santa Ana Mountains. The 2010 map shows similar patterns; however, block groups are significantly less diverse relative to 2018 concentrations. Similar to 2018, поп- White populations were most concentrated in the central and northern portions of the County, however, these block groups were primarily comprised of non-White populations greater tess than 81 percent.

March October 2023 D-9

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Figure D-3
Regional Racial/Ethnic Concentrations by Block Group 2018 - Orange County Ontano
os Angele West Covina Ротова
GhiRo HillE MiraLoma
Doyney
NOIWAK
Laguna B
Clemen te
alon
35 Miles
Racial Demographics 2018 (Block Group)
:: Laguna Niguel Boundary 321 - 40%
Source: Esri, HERE, Garmin.

Percent of Total Non-White 41 - 60% NGA, USGS, NPS
Population 61 - 80%
_ ≤ 20% > 81%
March October 2023 D-10

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-4
Regional Racial/Ethnic Concentrations by Block Group 2010 - Orange County Los Angele's West
Laguna B
Clethan te
alon
Miles
Racial Demographics 2010 (Block Group)
:: Laguna Niguel Boundary 2] 21 - 40%
Source: Esri, HERE, Garmin.

Percent of Total Non-White 41 - 60% NGA, USGS, NPS
Population 61 - 80%
] ≤20% > 81%
March October 2023 D-11

THE CITY OF LAGUNA NIGUEL HOUSING
Local Trends
The racial and ethnic breakdown in Laguna Niguel (Table D-4) shows White residents make up about two- thirds of the City's residents (66.6 percent), despite declining 6.6 percent over the course of the-last decade.

This demographic makeup contrasts that of the County, where most residents identify as non-White minority groups. Black, American Indian and Native Hawaiian and other Pacific Islander populations have also decreased slightly, while the Asian, Hispanic, residents of two or more races, and some other race populations have increased over the past decade.

Table D-4
Change in Racial/Ethnic Composition 2010-2019: Laguna Niguel 2010 2019
Persons Percent Persons Percent
White, non-Hispanic 45,820 73.2% 43,802 66.6%
Black or African American, non-Hispanic 1,086 1.7% 758 1.2% American Indian and Alaska Native, non-Hispanic 121 0.2 0 0.0% Asian, non-Hispanic 6,140 9.8% 6,731 10.2%
Native Hawaiian and Other Pacific Islander, non- 290 0.5% 176 0.3% Hispanic
Some other race, non-Hispanic 211 0.3% 522 0.8%
Two or more races, non-Hispanic 1,665 2.7% 3,042 4.6%
Hispanic or Latino 7,281 11.6% 10,777 16.4%
Total 62,614 100% 65,808 100%
Sources: 2006-2010 and 2015-2019 ACS (5-Year Estimates) Table B03002.

Figure D-5 below shows the predominant racial and ethnic population by block group in Laguna Niguel.

Sites Inventory
Figure D-6 shows the City's 6th cycle RHNA opportunity sites by race/ethnic minority concentrations. A majority of the City's census tract block groups are comprised of racial/ethnic minority groups making up less than 20 percent of the population. Nine block groups in the City consist of 21-40 percent racial/ethnic groups, six at the northern tip and three in the central portion of the City. Two of the block groups consist of 61-80 percent racial/ethnic groups, located along the eastern boundary of the City. All the City's above moderate- and low-income opportunity sites are located in block groups with less than 20 percent racial/ethnic groups, while one of the two moderate-income opportunity sites is located in a block group with less than 20 percent racial/ethnic groups and the other in a block group with 21-40 percent racial/ethnic March-October 2023 D-12

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-5
Predominant Racial and Ethnic Population by Block Group - Laguna Niguel Predominant Population (Block Group, 2019)
:: Laguna Niguel Boundary Vative American Majorih Multiple Races Asian Majorit Source City of Laguna
Racial and Ethnic Majority White Majority Nicuel, Bureau of Land Hispanic Majority Management, Esri HERE
Black/Afican American Garmin. GeoTechrologies
Inc. NGA, USGS
March-October 2023 D-13

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-6
Sites Inventory by Racial/Ethnic Concentrations 2018 - Laguna Niguel 33 0 025 03
Miles)
Racial Demographics 2018 (Block Group)
:: Laguna Niguel Boundary 41 - 60% Moderate Income
61 - 80% Lower Income Source: City of Laguna
Percent of Total Non-White Niguel, County of Los
Population > 81% Census Tracts Angeles, California State Parks, Esri, HERE, Garmin,
≤ 20% Income Supported Opportunity Sites SafeGraph,
21-40% Above Moderate Income
March October 2023 D-14

THE CITY OF LAGUNA NIGUEL HOUSING

2. Persons with Disabilities
Persons with disabilities often have special housing needs because of the lack of accessible and affordable housing, and the higher health costs associated with their disability. In addition, many may be on fixed incomes that further limits their housing options. Persons with disabilities also tend to be more susceptible to housing discrimination due to their disability status and required accommodations associated with their Regional Trends
According to the 2015-2019 ACS, 8.5 percent of Orange County residents experience a disability (Table D-5). Laguna Niguel has a similar proportion of residents with disabilitiesy at 8 percent. The most common disability types in Orange County are ambulatory (4.5 percent) and independent living (4.3 percent) disabilities. There is a large segment of the elderly population with a disability between the ages 65 to 74 (18 percent) and 75+ (45.9 percent). Compared to the 2010-2014 ACS 5-year estimates, there is no significant difference in disabilities among age groups or race. As seen in Figure D-7, populations with a disability are generally concentrated in northern Orange County, with most census tracts in this area consisting of a disabled population of 10-20 percent.

Table D-5
Persons with Disabilities by Race/Ethnicity - Orange County Total Percent with a disability
Total civilian noninstitutionalized population 3,151,089 8.5% Race And Hispanic or Latino Origin
White alone 1,919,086 9.5%
Black or African American alone 54,557 9.0%
American Indian and Alaska Native alone 14,280 15.7%
Asian alone 646,772 7.3%
Native Hawaiian and Other Pacific Islander alone 10,065 10.0% Some other race alone 376,637 5.7%
Two or more races 129,692 7.2%
White alone, not Hispanic or Latino 1,278,321 11.0%
Hispanic or Latino (of any race) 1,072,973 6.4%
Age
Under 5 years 187,789 0.6%
5 to 17 years 515,852 3.9%
18 to 34 years 745,898 4.1%
35 to 64 years 1,252,769 6.6%
65 to 74 years 256,165 18.0%
75 years and over 192,616 45.9%
Disability Type by Detailed Age
With a hearing difficulty (x) 2.5%
With a vision difficulty (x) 1.5%
With a cognitive difficulty (x) 3.4%
With an ambulatory difficulty (X) 4.5%
With a self-care difficulty (x) 2.2%
With an independent living difficulty (x) 4.3%
Source: Census 2015-2019 ACS
March October 2023 D-15

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-7
Population with a Disability - Orange County
Laguna B
Cemente
alon
Mile:

Population with a Disability (Tract) - ACS (2015-2019)
:: Laguna Niguel Boundary : 10% - 20%
Source: Esri, HERE, Garmin.

Percent of Population with a 1 20% - 30% NGA, USGS, NPS Disability 30% - 40%
< 10% > 40%
March October 2023 D-16

THE CITY OF LAGUNA NIGUEL HOUSING
Local Trends
According to the 2015-2019 ACS, approximately 8 percent of Laguna Niguel residents experience a disability (Table D-6), compared to 8.5 percent in Orange County. Disabilities are most common among elderly residents; approximately 12.3 percent of persons aged 65 and over experience a disability, including 43.1 percent of residents aged 75 and older. The most common disabilities in Laguna Niguel are ambulatory difficulties (3.1 percent) and independent living difficulties (3.3 percent). The population of persons with disabilities has increased from 6.4 percent during the 2010-2014 ACS. The proportion of people reporting a disability who identify as Two or More Races has increased from 3.4 percent to 9.8 percent, and the Hispanic or Latino population has seen an increase in reported disabilities from 5.9 percent to 9.4 percent of residents.

There is a significantly higher rate of American Indian/Native Alaskan populations in Laguna Niguel who experience a disability (32.4 percent) compared to Orange County (15.4 percent). A larger proportion of children (ages 5-17 years) experience a disability compared to the County, but a smaller proportion of elderly (ages 65-74 years) experience a disability in Laguna Niguel than in Orange County. There is no significant difference in type of disability between the City and the County.

Table D-6
Persons with Disabilities by Race/Ethnicity - Laguna Niguel Total Percent with a disability
Total civilian noninstitutionalized population 65,733 8.0% Race And Hispanic Or Latino Origin
White alone 49,879 8.4%
Black or African American alone 1,006 9.5%
American Indian and Alaska Native alone 32.4%
Asian alone 5.5%
Native Hawaiian and Other Pacific Islander alone 0.0%
Some other race alone 3.9%
Two or more races 9.8%
White alone, not Hispanic or Latino 8.1%
Hispanic or Latino (of any race) 9.4%
Age
Under 5 years 3,310 0.0%
5 to 17 years 9,569 6.1%
18 to 34 years 12,683 4.6%
35 to 64 years 28,575 4.5%
7,167 12.3%
4,429 43.1%

2.8%

0.9%

3.0%

3.5%

1.6%
With an independent living difficulty 3.3%
Source: Census 2015-2019 ACS
Sites Inventory
As seen in Figure D-8, the City of Laguna Niguel is primarily comprised of census tracts with less than 10 population experiencing a disability. This accounts for less than one percent of the total units yielded from March October 2023 D-17

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-8
Sites Inventory by Population with a Disability - Laguna Niguel 63 37

0.25 0
Population with a Disability (Tract) - ACS (2015-2019)
* Laguna Niguel Boundary 20% - 30% Moderate Income
30% - 40% Lower Income Source: Cily of Laguna
Percent of Population with a Niguel, County of Los
Disability > 40% Census Tracts Angeles, California State Parks, Esn, HERE, Gaimin.
1<10% Income Supported Opportunity Sites SafoGraph.
* 10% - 20% 1 Above Moderate Income
March October 2023 D-18

THE CITY OF LAGUNA NIGUEL HOUSING

3. Familial Status
Familial status refers to the presence of children under the age of 18, pregnant persons, any person in the not discriminate based on familial status.

Regional Trends
According to the 2019 ACS, 30.9 percent of Orange County's households have children under the age of 18, with 23.8 percent married-couple households with children and 7.1 percent single-parent households (Figure D-9). Among the neighboring jurisdictions, Aliso Viejo and Irvine had the highest percentages of households with children (36.4 and 33.7 percent), exceeding the County's overall population of households with children.

The two jurisdictions also have the highest populations of single-parent households, where Aliso Viejo has

2.1 percent male single-parent and 4.4 percent female single-parent households, and Irvine has 2.0 percent male single-parent and 3.7 percent female single-parent households.

Figure D-9
Households with Children in Orange County and Neighboring Cities

40.0%

35.0% 44%

3.7%
21%

30.0% -- 2.0%
5%
Hoescholds 25.0% -- 2,1% 3.2% 4.3%

1.6% 0.9%

20.0% --

3.6%
13%

1.7% 2.0%

15.0% --

28.1%
Percent 23.2%

21.8% 21.4%

10.0% --

14.9% 14.2%

5.0%

0.0%
Orange Laguna Niguel Aliso Viejo Dana Point Irvine Laguna Beach Laguna Hills County
Census tracts with the highest percentage of married couple-households with children, greater than 80 percent of households, are located primarily in southern and central Orange County, with some clusters in the northern area of the County. The regional distribution of children in female-headed households is shown in Figure D-11. In most census tracts throughout the County, less than 20 percent of children live in female headed households. There are clusters of census tracts in the northern area of the County where 20-40 percent Westminster, Orange, and Anaheim.

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Figure D-10
Children in Married-Couple Households - Orange County
Nest Covis
Laguna Be
S3r Clemente
alon
33 S
Miles
Familial Status (2015-2019)
: Laguna Niguel Boundary ] 20% - 40%
Source: Esri, HERE. Garmin,
Percent of Children in Married- 40% - 60% NGA. USGS, NPS Couple Households 60% - 80%
7 < 20% > 80%
March October 2023 D-20

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-11
Children in Female-Headed Households - Orange County
Laguna B
lalon
Familial Status (2015-2019)
: Laguna Niguel Boundary 3 40% - 60%
Percent of Children in Female HE 60% - 80% Source: Esri, HERE, Garmin, Householder. No Spouse/ • > 80% NGA. USGS. NPS
Partner Present Households
= = 20%
- 20% - 40%
March October 2023 D-21

THE CITY OF LAGUNA NIGUEL HOUSING
Local Trends
children, as shown in Table D-7. As of 2019, 22.6 percent of all households in Laguna Niguel were married- couple family households with one or more children under the age of 18. While married-couple households make up the majority of households with children, this population has decreased by 11.6 percent since 2010.

5.4 percent of households in the City are single-parent households, most of which (3.5%) are female-headed households. Female-headed households with children are more vulnerable to fair housing issues because of Table D-7
Households with Children - Laguna Niguel 2006-2019
2006-2010 2015-2019
Household Type Households Percent Households Percent Percent Change 6,387 26.2% 5,722 22.6% - 11.6%
313 1.3% 481 1.9% 34.9%
1,311 5.4% 897 3.5% -46.2%
8,068 33.1% 7,119 28% -13.3
24,356 100% 25,290 100% 3.7%
* Includes all households with one or more people under 18 years Sources: American Community Survey, 2006-2010 and 2015-2019(5-Year Estimates) Table B11005.

Sites Inventory
As shown in Figure D-12, most census tracts in Laguna Niguel have greater than 80 percent married couple households. Census tracts 423.20, 423.17, 423.31, and 423.32 are the only tracts in the City with married couple households making up 40-60 percent of the population. All of the City's RHNA opportunity sites are located in census tracts with married couple households consisting of greater than 80 percent of the population.

March October 2023 D-22

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-12
Sites Inventory by Children in Married-Couple Households - Laguna Niguel 5 20
24 28 26
29 30
34 36
40 41
Familial Status (2015-2019)
** Laguna Niguel Boundary 7 40% - 60% Moderate Income
Lower Income Source Citv of Laguna
Percent of Children in Married 60% - 80%
Niguel. County of Los
Couple Households > 80% Census Tracts Angeles, Calfomia State Parks, Esn, HERE, Gamın,
_ <20% Income Supported Opportunity Sites SafeGraph.
- 20% - 40% Above Moderate Income
March October 2023 D-23

THE CITY OF LAGUNA NIGUEL HOUSING

4. Income Level
Identifying low or moderate income (LMI) areas and individuals is important in developing effective strategies to overcome patterns of segregation. HUD defines a LMI area as a Census tract or block group where over 51 percent of the population is LMI (based on HUD income definition of up to 80 percent of the Area Median Income.

Regional Trends
As shown in Table D-8, 44.8 percent of Orange County households are low or moderate income, earning 80 percent or less than the area median income (AMI). There are significantly more LMI Renter occupied households (61.8 percent of total households) compared to owner occupied households (32.1 percent of total households). Figure D-13 shows that census tracts in the northern portion of the County, in or near the communities of Anaheim, Santa Ana, Westminster, and the University of California, Irvine, have the highest the southern part of the County, in or near the cities of Laguna Woods, San Juan Capistrano, and San Table D-8
Household Income Category by Tenure - Orange County (2017) Income Category Owner Renter Total
0%-30% of AMI 8.3% 23.7% 14.9%
31%-50% of AMI 8.9% 17.4% 12.5%
51%-80% of AMI 14.9 20.7% 17.4%
81%-100% of AMI 9.9% 10.5% 10.2%
Greater than 100% of AMI 57.9% 27.7% 45%
Total 588,550 436,425 1,024,975
Source: HUD CHAS (based on 2013-2017 ACS), 2020.

March October 2023 D-24

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-13
LMI Population - Orange County
Laguna B
Clemente
alon
Low to Moderate Income Population (Tract) - (HUD)
:: Laguna Niguel Boundary 25% - 50%
Source: Esri. HERE, Garmin,
Percent of Low/ Moderate 50% - 75% NGA, USGS, NPS
Income Population 75% - 100%
[] < 25%
March October 2023 D-25

THE CITY OF LAGUNA NIGUEL HOUSING
Local Trends
As shown in Table D-9, owner occupied households represent the majority of households in Laguna Niguel (71 percent of households compared to 29 percent renter occupied). Most owner households are in higher income levels, with 72.3 percent of owner households making more than 80 percent of the City's AMI, while only 45.6 percent of renter households make more than 80 percent of the City's AMI. Approximately 54.4 percent of renter households in Laguna Niguel make less than 80 percent of City's AMI, which HUD defines as an LMI household. This is a stark contrast to owner households making less than 80 percent of the City's AMI, 26.8 percent of households. According to the 2019 ACS, the median income in Laguna Niguel is $108,537 annually. This is higher than the County's 2019 median income of $90,234 annually, and the neighboring cities of Dana Point ($99,409 annually), Irvine ($105,126 annually), and Laguna Hills ($100,985 annually), however less than Laguna Beach ($129,983 annually) and Aliso Viejo ($112,689 annually).

Table D-9
Household Income Category by Tenure - Laguna Niguel (2017) income Category Owner Renter Total
0%-30% of AMI 8.3% 15.6% 10.5%
31%-50% of AMI 7.4% 13.2% 9.1%
51%-80% of AMI 11.1% 25.6% 15.4%
81%-100% of AMI 6.5% 12.5% 8.3%
Greater than 100% of AMI 66.8% 33.1% 56.8%
Total 17,685 7,390 25,075
Source: HUD CHAS (based on 2013-2017 ACS), 2017.

Sites Inventory
The distribution of RHNA opportunity sites by census tract LMI population is shown in Figure D-14. As seen in this map, several of the City's opportunity sites are in census tracts with LMI populations of 25-50 bercent. A total of 782 potential units (out of the total 1,443 units) are located in census tracts with LM populations of 25-50 percent. The City provides a mix of income levels in census tracts with less than 25 percent LMI populations and in tracts with 25-50 percent LMI households, which helps to expand diverse housing opportunities.

March October 2023 D-26

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-14
Sites Inventory by LMI Population - Laguna Niguel

0.25 Low to Moderate Income Population (Tract) - (HUD)
* Laguna Niguel Boundary 3 50% - 75% Lower Income
Percent of Low/Moderate 3 75% - 100% Census Tracts Source City of Leguna Niguel, County of Los
Income Papulation Income Supported Opportunity Sites Angeles, California State Parks, Esri, HERE, Gamin:
< 25% Above Moderate Income SafeGraph.
25% - 50% Moderate Income
March October 2023 D-27

THE CITY OF LAGUNA NIGUEL HOUSING

5. Housing Choice Vouchers (HCV)
Public housing agencies are responsible for administering HCVs, which are used to help very-low-income families secure decent housing at an affordable cost through subsidies provided directly to landlords. HCVs in Orange County are managed by the Orange County Housing Authority (OCHA) under their Special Housing Programs. HCVs and other OCHA programs help prevent homelessness, assist residents with relocation, and provide support to separated families, veterans, and the disabled.

An article posted in the Regional Science and Urban Economics Journal in 2020 shows that the HCV program is now the largest low-income housing subsidy in the country. They relieve the rent burdens placed on low- income households, which prevents overcrowded households and reduces the risk of homelessness. However, it has not been as successful as hoped in helping of HCV recipients move to areas with lower poverty and better educational opportunities.

Regional Trends
Local Trends
Figure D-16 shows the proportion of renter households in Laguna Niguel that receive Housing Choice Vouchers (HCVs). According to the data, 2.14 percent of renters in tract 423.30, 0.89 percent of renters in tract 423.20, and 9.55 percent of renters in tract 423.15 receive HCVs.

March October 2023 D-28

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-15
Housing Choice Vouchers - Orange County
/vest Covina
160
Aing Sinino
Chino Hills Mira Loma
100E
Nirwalk
Corona
Cerrit
atin
Beac vie sa Rape To Santa
Angarita
Viejo
guel
Laguna B
San Clemente
Camp Pend
Marine Corp
alon
25 $
Housing Choice Vouchers (Tract)
:: Laguna Niguel Boundary * 5% - 15%
Source: Esri, HERE, Garmin.

HCV Public Percent 15% - 30% NGA, USGS, NPS
No HCV 30% - 60%
Less than 5% Over 60%
March October 2023 D-29

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-16
Renter Households with Housing Choice Vouchers - Laguna Niguel Aliso Viejo
Laguna Niguel
0 73
Moultay
La Paz. Pikwy
Ali so
Ca
Wilder!
escific Island Dr PRwy:

San Juan
Capistrano
Housing Choice Vouchers (Tract)
:: Laguna Niguel Boundary Less than 5% 30% - 60%
HCV Public Percent : 5% - 15% Over 60% Sigue Bureat or Land - No HCV 15% - 30% Maragement, Esti, HERE
Garmin GecTechnologies
Inc, NGA, USGS
March October 2023 D-30

THE CITY OF LAGUNA NIGUEL HOUSING

6. Racially and Ethnically Concentrated Areas
a. Racially and Ethnically Concentrated Areas of Poverty (R/ECAP) Racially and ethnically concentrated areas of poverty (R/ECAP) are geographies where a high percentage of the population are people of color who eat and wit in mentor be dendividuasis tracts orient. hite population of greater than 50 percent and with 40
poverty line or are three or more times the average poverty rate for the metropolitan/micropolitan area, whichever threshold is lower.

Regional Trends
As shown in Figure D-17, the only designated R/ECAP in Orange County is in Costa Mesa. Approximately Black or African American population (21.8 percent).

Table D-10
Population Below the Poverty Level by Race - Orange County and Laguna Niguel (2019) Orange County Laguna Niguel
% Below Poverty % Below Poverty
Total Level Total Level
Black or African American alone 38,536,055 21.8% 1,006 0.3% American Indian and Alaska Native alone 3,066,848 21.4% 139 0.0% Asian alone 18,833,840 10.2% 6,793 8.9%
Native Hawaiian and Other Pacific Islander alone 594,585 17.6% 231 21.2% Some other race alone 23,501,829 19.0% 3,859 19.0%
Two or more races 41,128,818 15.4% 3,814 10.4%
Hispanic or Latino origin (any race) 61,398,400 17.5% 10,764 8.5% White alone, not Hispanic or Latino 1,272,879 17.5% 43.724 5.7% Total 188,537,199 9.5% 65,699 7.2%
Source: 2015-2019 ACS (5-Year Estimates) Table S1701.

Local Trends
There are no R/ECAP areas in Laguna Niguel; however, census tracts 423.34 and 423.35 are considered to have 10-20 percent of their population with income levels below the poverty line. As shown in Table D-10, Laguna Niguel has a smaller population below the poverty level (7.2 percent) compared to Orange County (9.5 percent). Native Hawaiian and Other Pacific Islander residents make up the largest proportion of residents below the poverty line in the City, with 21.2 percent. The "some other race" category makes up

19.0 percent of residents below the poverty line, while the Black/African American population has the lowest poverty rate of only 0.3 percent. Figure D-18 shows poverty status by tract in Laguna Niguel. All RHNA opportunity sites are located in census tracts with less than 10 percent of the population below the poverty March October 2023 D-31

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-17
R/ECAPs - Orange County
Os Ange West Covina mon
Eastlo
Angele China
Ching Hills -Mira coma
Fulle
Orate
Avine
Ha Mesa anato santa
2 Lake E Mangali ta
-Neyport Beach Hal sion Miejo,
i Niguel
Laguna Bet
San Clemen te
sunp Fe
arine Cor
alon
Racially or Ethnically Concentrated Areas of Poverty (R/ECAPs) - (HUD, 2009 - 2013) [= Laguna Niguel Boundary //. 1 - R/ECAP Area
Source: Esri, HERE, Garmin
Current R/ECAP Score VGA. USGS. NPS
• O- Not a R/ECAP
March October 2023 D-32

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-18
Poverty Status - Laguna Niguel
Laguna Nig
0 025 05
Poverty Status (Tract) - ACS (2015-2019)
:: Laguna Niguel Boundary Percent of Population whose = 10% - 20% income in the past 12 months ource Cily of Lagun
T9 20% - 30% liquel. Bureau of Lan
is below poverty level 30% - 40% Management, Esri. HERE Garmin, GeoTechnologies.
< 10% > 40% Inc., NGA, USGS
March October 2023 D-33

THE CITY OF LAGUNA NIGUEL HOUSING
b. Racially and Ethnically Concentrated Areas of Affluence (RCAAs) Racially and Ethnically Concentrated Areas of Affluence (RCAAs) are also critical areas to identify to facilitate new housing development. While HUD looks at racial/ethnic concentrations and poverty to define RECAPs, HUD defines RCAAs as affluent, white communities. The RCAA concept was originally created by scholars at the University of Minnesota to provide a holistic analysis of poverty through illustrating the polarities between race and poverty, and Affluent, White communities. Based on this concept, HCD created a new version of the RCAA to reflect California's diversity and regional conditions more accurately. The HCD version of the RCAA helps local jurisdictions with their R/ECAP and RCAA analysis pursuant to AB 686 and AB 1304. HCD defines RCAAs as census tracts with a location quotient (representing how much higher or lower the census tracts total white population is compared to the average percentage of the total white population for all census tracts in the given COG) of more than 1.25 and a median income 1.5 times higher than the COG AMI (or 1.5x the State AMI, whichever is lower).

Regional Trends
Figure D-19 shows RCAAs in Orange County. Most census tracts in the southern part of the County are RCAAs. Some census tracts located along the coast in northern and central Orange County are considered RCAAs in communities such as Newport Beach, Huntington Beach, and Seal Beach, while RCAA census tracts also exist in the inland portion of the County in communities such as Orange, Anaheim Hills, Brea, Yorba Linda and unincorporated North Tustin.

Local Trends
Half of Laguna Niguel's census tracts (eight of the City's 16 census tracts) are considered RCAAs (Figure D-20) according to HCD's RCAA metric. Census tracts 423.37. 423.32, and 423.17 to the south, 423.25. 423.26, and 423.19 to the west. and 423.36 and 423.33 to the north are considered RCAAs. Of the RCAA census tracts, five are identified as TCAC highest resource areas, two are identified as high resource areas. and one is identified as a moderate resource area. Census tracts 423.24 to the south, 423.31, 423.30, 423.29, and 423.15 in the middle and eastern boundary, and 423.35, 423.34, and 423.20 in the north of the City are not considered RCAAs. Of the non-RAA tracts. three are identified as TCAC moderate resource areas. three are identified as high resource areas, and two are identified as moderate resource areas. Non-RCAA tracts are distributed throughout the City and not concentrated in any one area. It is important to note that HCD's RCAA metric compares the City's census tracts to the six-county SCAG Region, which has much greater racial diversity and lower average median incomes than Orange County, particularly southern Orange County. In-a the SCAG Region, the average percentage of the total White population is 31.75 percent and the 2019 AMI is $76,024. As shown in Table D-11, Laguna Niguel has a similarly high percentage of White (not Hispanic or Latino) residents as the South Coast Census County Division (CCD), which includes neighboring jurisdictions in southern-coastal Orange County. All census tracts in Laguna Niguel not considered an RCAA have a location quotient higher than 1.25 (meaning even non-RCAA tracts have a white population that is high relative to the COG), however, do not have an AMI of 1.5 times greater than the COG or State AMI.

The presence of a majority white racial demographic in a relatively affluent community like Laguna Niguel should be considered as part of the planning process to accommodate new growth in the City in a more economically and ethnically integrated way. RCAA census tracts within the City are generally located within the City's less densely populated residential subdivisions in hillside areas adjacent to open space. Although a number of zoning designations intended for single-family attached and multi-family housing (i.e., RA and RM districts) are located within RCAAs, the primary residential zoning designations in RCAAs are RS-3 and RS-4. The RS-3 and RS-4 districts are intended for the development and preservation of low-medium density neighborhoods which support single-family residences on individual lots. Other primary zoning districts within RCAAs include the specific plan district, parks and recreation district, and the open space March-October 2023 D-34

THE CITY OF LAGUNA NIGUEL HOUSING
district. RCAA census tracts in the City are generally built-out with existing residential uses and many RCAA areas have development restrictions due to risk of damage from disasters (such as wildfires and seismic/geologic hazards) or sensitive biological habitats. These conditions reduce the number of potential sites that could realistically develop largescale multi-family development projects typically associated with more affordable housing. Nonetheless, the City is planning a number of multi-family residential projects within RCAAs, including the Laguna Niguel City Center Mixed Use Project and the Cove @ El Niguel, that will provide more affordable housing opportunities and encourage further racial/ethnic integration of these areas. Additionally, a number of programs in the Housing Plan are designed to facilitate mixed-income neighborhoods. such as Action 3.5, which is designed to promote the development of affordable ADUs and SB 9 units throughout the community, including areas of racially concentrated affluence.

Table D-11
Population Below the Poverty Level by Race - Orange County and Laguna Niguel (2019) st Cantus Coun
MARCO!
Median Household Income - $113,071 $101,958 $102,500
White (not Hispanic or Latino)
Median Household Income - All $108,537 $90.234 $100,160 households
Percent of White households 75.1% 52.0% 74.2%
(not Hispanic or Latino)
Source: US Census Bureau 2015-2019 ACS (5-Year Estimates), Table S1903.

March October 2023 D-35

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-19
RCAAs - Orange County
ElM on te -Ontario
Los Angeles West Covina Poshona
EastLos
Angeles Chino
Chine Hills Mira Loma
1805
vood
Downey
7g Norwalk:

Fullerton R Corona
Gerr
Anaham
ance
Larden any Orans
Long Beach
Santo
Folatpi
Valle
Huntington
Вед ra Mesa
Laguna
San Clemente
Camp Pend
Marine Corp!
alon
35 Racially Concentrated Areas of Affluence (RCAA) - ACS (2015 - 2019) :: Laguna Niguel Boundary
Source: Esri, HERE. Garmin,
0 - Not an RCAA NGA, USGS. NPS
TV. 1- RCAA
March October 2023 D-36

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-20
RCAAs - Laguna Niguel
Mise Viejo Also Cre
Laguna Niguel
Morguerite putt
no de colinde
Marina Hills Golden
Camino Capistrano
San Juan
Capistrand
-Договіро ві
° 025 05 D
Miles
Racially Concentrated Areas of Affluence (RCAA) - ACS (2015 - 2019) [=• Laguna Niguel Boundary
Source: City of Laguna
0 - Not an RCAA Niquel, Bureau of Land
Management, Esri, HERE,
Garmin, INCREMENT P.

77. 1- RCAA NGA, USGS
March October 2023 D-37

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-21
Median Income and Non-White Population - Laguna Niguel
•
Racial Demographies 2010 (Block Group) - Graduated Dots :: Laguna Niguel Boundary • 40% • 60% < $55.000
Percent of Total Non-White 60°g - 80°% < $87,100 (HCD 2020 State Source Cily of Laguna Median Income Niquel Bureau of Land
Population 80% - 100% Management, Esti, HERE.
< $125,000 Garmin, GeoTechnologies,
• 0-20% Median Income inc. NIGA. USGS
Greater than $125,000
• 20%0 - 40% • < $30,000
March October 2023 D-38

THE CITY OF LAGUNA NIGUEL HOUSING
D. Access to Opportunity

1. Overview
The AFFH final rule defines significant disparities in access to opportunity as "substantial and measurable differences in access to educational, transportation, economic, and other opportunities in a community based on protected class related to housing."
The Department of Housing and Community Development (HCD) and the California Tax Credit Allocation Committee (TCAC) assembled the California Fair Housing Task Force (Task Force) to "provide research, evidence-based policy recommendations, and other strategic recommendations to HCD and other related state agencies/departments to further fair housing goals (as defined by HCD)." The opportunity maps identify resource levels across the state "to accompany new policies aimed at increasing access to high opportunity areas for families with children in housing financed with 9 percent Low-Income Housing Tax Credits (LIHTCs)". These opportunity maps are created from composite scores for indicators in three domains - economic, environmental and education. Results of the domain scores categorize census tracts as Highest Resource, High Resource, Moderate Resource, Moderate Resource (Rapidly Changing), Low Resource, or areas of High Segregation and Poverty. To identify resource areas, census tracts were filtered by a measure of poverty and racial segregation. The criteria for these filters were:
: Poverty: Tracts with at least 30 percent of the population under the federal poverty line; Racial Segregation: Tracts with location quotient higher than 1.25 for Blacks, Hispanics, Asians, or all people of color in comparison to the County as a whole Table D-12 shows the complete list of indicators used to generate resource opportunity composite scores.

Fable D-11Table D-12
Domains and Indicators for Opportunity Maps
Domain Indicator
Economic Poverty
Adult education
Employment
Job proximity
Median home value
Environmental CalEnviroScreen 3.0 pollution indicators and values Education Math proficienc
Reading proficienc
High School graduation rates
Student poverty rates
Source: Califomia Fair Housing Task Force, Methodology for the 2020 TCAC/HCD Opportunity Maps, December 2020 The TCAC/HCD maps assign each census tract a score ranging from 0-1 for each of the three domains shown in Table D-12. Higher scores indicate greater access to opportunity in the domain. Census tracts also receive composite scores, which combine access to opportunity across domains. Composite scores are ranked by level of resources (low, moderate, high, highest, and high poverty and segregation). These resource designations and areas of high poverty and segregation are illustrated through the TCAC Opportunity Map and provide a means of identifving the degree of access to opportunity in different geographic areas The Opportunity Maps help to inform the development of policies and programs to remediate conditions in low resource areas and areas of high segregation and poverty, along with identifying housing sites in higher opportunity areas.

March-October 2023 D-39

THE CITY OF LAGUNA NIGUEL HOUSING

2. Composite Opportunity Scores
As seen in Figure D-22, the highest composite opportunity scores in Orange County are located along coastal communities, in the southern portion, and in the northeastern portion of the County. In the northern-central portion of Orange County, communities such as Anaheim, Garden Grove, Orange, Santa Ana, and Irvine consist of the largest concentration of Low Resource and High Segregation and Poverty census tracts.

Table D-13 shows the opportunity map scores for each Census tract in Laguna Niguel. The overall rankings of all census tracts in Orange County are the basis for each census tracts resource categories. The TAC Composite Upportunity Map categorizes census tracts in the southwestern portion, and two in the northern portion of Laguna Niguel as the highest resource areas. Other census tracts are categorized as high resource areas and moderate resource areas. Laguna Niguel's opportunity scores are consistent with composite scores of surrounding tracts in southern, coastal Orange County. Areas with less favorable rankings exist directly north in Laguna Woods, Newport Beach, and Costa Mesa and to the South in Dana Point and San Juan Capistrano.

Table D-12Table D-13
Opportunity Scores 2021
Economic Education Environmental Composite Index Resource Tract Domain Score Domain Score Domain Score Score Category 423.37 0.522 0.367 0.938 0.061 Moderate
423.15 0.296 0.610 0.813 0.165 Moderate
423.33 0.811 0.740 0.731 0.454 Highest
423.32 0.724 0.553 0.991 0.421 High
423.31 0.754 0.600 0.958 0.429 Highest
423.30 0.205 0.610 0.972 0.180 Moderate
423.29 0.423 0.610 0.983 0.326 High
423.36 0.596 0.787 0.962 0.497 Highest
423.35 0.432 0.821 0.917 0.427 Highest
423.34 0.312 0.724 0.867 0.285 High
423.19 0.376 0.918 0.775 0.412 High
423.17 0.458 0.728 1.000 0.468 Highest
423.24 0.492 0.728 0.981 0.442 Highest
423.25 0.844 0.775 0.990 0.611 Highest
423.26 0.523 0.775 0.989 0.484 Highest
423.20 0.437 0.678 0.847 0.316 High
Figure D-23 shows the City's housing opportunity sites as they relate to opportunity areas. Most of the City's opportunity sies are Bad in the are to ae incite on or moderate resource areas, wife stigant number of additional units that are not site-specific (e.g., ADUs and SB 9 urban lot splits) are expected in The following sections further analyze specific economic, educational, environmental, and transportation opportunities.

March October 2023 D-40

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-22
TCAC Opportunity Composite Scores - Orange County
asi COVInA
Chino
Ching Hille
Huntin
Bea
woort Bead ica Vieti
Niguel
Laguna Be
alon
Miles
TCAC Opportunity Areas 2021 - Composite Score (Tract)
:: Laguna Niguel Boundar High Resource Low Resource
esource Categor High Segregation & Poverty Source: Esri, HERE, Garmin, NGA. USGS, NPS
Highest Resource Missing/Insufficient Data
March-October 2023 D-41

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-23
Sites Inventory by TCAC Opportunity Composite Scores - Laguna Niguel 12 14
41 37
0 025 0.5
TCAC Opportunity Areas 2021 - Composite Score (Tract)
* 3 Laguma Niguel Boundary ] Moderale Resource (Rapidly High Segregation & Poverty Moderate Income Changing) Missing/Insufficient Dato Lower Income Source: City of Laguna Resource Category
Moderale Resource • Census Trads Niquel, County of Los
2 Highest Resource Income Supported Angeles, Calfonia State Low Resource Opportunity Sites Parks, Esn, HERE, Gamin, High Resource E Above Moderate Income
SafeGraph.

March October 2023 D-42

THE CITY OF LAGUNA NIGUEL HOUSING

3. Educational Opportunity
The California Fair Housing Task force uses math proficiency, reading proficiency, high school graduation rates and student poverty rates as indicators to measure education opportunities.

A higher concentration of lower education scores are-is found in the northern portion of the County near Anaheim, Orange, and Santa Ana and in the souther portion of the County in Lake Forest and Laguna Woods, along with Dana Point, San Juan Capistrano, and San Clemente, which neighbor Laguna Niguel.

Most of these tracts scored below 0.25. Higher educational scores are found primarily in communities along the coast, including Laguna Niguel, Laguna Beach, Huntington Beach and Seal Beach, and in some inland areas such as Brea, Yorba Linda, Irvine and Mission Viejo (Figure D-24).

GreatSchools is a nonprofit organization that provides school information across the nation for parents pursuing a quality education for their children, as well as data for researchers and policy makers.

GreatSchools rates schools based on Student Progress or Academic Progress, College Readiness, Equity, and Test Scores. The school ratings follow a 1-10 scale where ratings at the lower end of the scale (1-4) signal that the school is "below average," 5-6 indicate "average," and 7-10 are "above average." Figure D-25 and Figure D-26 show that most schools in Laguna Niguel are private indicated by a gray pinpoint; however, seven of the nine public schools scored "above average" while two scored "average." These ratings correspond with the CAC's Education Score map for the City presented in Figure D-27 The census tract that scored the lowest education domain score (0.25-0.5) only contains one private school, the California Learning Academy. The census tracts that have education domain scores of 0.5-0.75) contain schools with both "average" and "above average" schools. Census tracts which contain all "above average" schools have a domain score of 0.75 or greater.

The Public Health Alliance of Southern California (Alliance) created the Healthy Places Index (HPI), as a tool for community leaders, policymakers, academics and other stakeholders to advance community health and equity. The HPI measures community index through economic, education, social, transportation, neighborhood, housing, clean environment, and healthcare access to measure healthy community conditions.

According to the HPI, Laguna Niguel has healthier education conditions than 80.8 percent of the rest of California. 53.6 percent of the population in all the City's census tracts have a bachelor's degree or higher, which is in the highest quartile for healthy conditions. This is greater than the County's 40.6 percent of the population that holds a bachelor's degree or higher; however, both the City and County are in the highest quartile. 94.8 percent of the City's high school-aged population is enrolled in high school, which is the 42.3 percentile for healthy conditions. In Orange County, 94.4 percent of the high school-aged population is enrolled in high school. The County is in the 55.8 percentile for healthy community conditions, with an overall higher percentile than the City.

Census tracts in the northeastern part of the City, with the exception of tracts 423.34 and 423.20 which have education domain scores in the 0.5-0.75 range; have education domain scores greater than 0.75, indicating the most positive education outcomes. Census tracts throughout the middle portion of the City have educatio domain scores in the 0.5-0.75 range while census tract 423.37, in the southern corner of the City is the onl tract with a score in the 0.25 to 0.5 range. No census tracts in Laguna Niguel scored an education domain score of less than 0.25, which indicates less positive education outcomes.

March-October 2023 D-43

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-24
TCAC Education Scores - Orange County
* Covina
lanta
Vita
Laguna B
Clemen to
alon
Miles
TCAC Opportunity Areas 2021 - Education Score (Tract)

25..50 No Data
:: Laguna Niguel Boundary
.50 - 75 Source: Esri, HERE, Garmin.

Education Domain Score (by NGA, USGS, NPS
region) " > 75 (More Positive Education
< 25 {Less Positive Education Outcomes)
Outcomes)
March-October 2023 D-44

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-25
GreatSchools Local School Ratings - Laguna Niguel (northern portion) Galivan
Aliso Viejo istco Wholesale
(139)
of the World O Premie
lesale
Allso Creek Rid The Home Depot
Laguna N
Regional P Ladera F
Terests or Arroyo Trabuco
Golf Club
Surf & Sand Resort Niguel Botal 8 vserve
Laguna Niguel Serra Catholic O
High School
Treasure 2
(sland Beach Chapparosa Park
Aliso Beach 2
Badlands Park
San Juan
Capistrano
CHeck Ra
Source: GreatSchools.org
Figure D-26
GreatSchools Local School Ratings - Laguna Niguel (southern portion) Galivan.

Aliso Viejo Wholesale
of the World ta Premie
ostco Wholesale
Also Creek Rd The Home Depot
Laguna N
Regional P Ladera
Far tie
Tempieters Or Arroyo Trabuco
Golf Club Y /
2 Surf & Sand Resort Niguel Botanical:

Laguna Niguel Serra Catholic
Hich Schicol
Treasure 69
island Beach Chapparosa Park
Aliso Beach
Badlands Park ®
San Juan
Capistrano
Tin Choi Ra
Source: GreatSchools.org
March October 2023 D-45

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-27
TCAC Education Scores - Laguna Niguel
Aliso Vija
Laguna Nigue
San Juan
Capistrano
...

TCAC Opportunity Areas 2021 - Education Score (Tract)
::* Laguna Niguel Boundary 1.25. 50 No Deta

50. 75 Source City of Laguna
Education Domain Score (by Niguel, Bureau of Land
> 75 (More Positive Education Management, Esri, HERE,
region) Garmin, GeoTechnologies
17 < 25 (Less Positive Education Outcomes! Inc, NGA, USGS Outcomes!
March October 2023 D-46

THE CITY OF LAGUNA NIGUEL HOUSING

4. Access to Transportation
According to SCAG's regional plan, Connect SoCal 2020-2045 Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS), employment growth has brought many people to the region; however, high housing cost is cited as one of the reasons the SCAG region has lost more people to other states and regions than it has gained. High housing cost in coastal areas has resulted in many residents moving inland, further away from job centers to afford a home. Combined with characteristics of urban sprawl and freeway connectivity which shape the regions-built environment, along with an overall lack of transit, vehicular dependency has become paramount to the region creating excessive volumes of traffic congestion and inequalities for lower-income workers.

AllTransit is a mapping tool that analyzes the social and economic impact of transit, using employment, economic, equity, health, transit quality, and mobility network factors as indicators to assign an overall transit score. According to AllTransit, in 2019 Orange County had a Performance Score of 4.2 (out of 10), indicating a low combination of trips per week and number of jobs accessible by transit (Figure D-28).

Availability of efficient, affordable transportation is one measure of access to opportunity. SCAG developed a mapping tool for High Quality Transit Areas (HQTA) as part of the Connect SoCal 2020-2045 Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS). SCAG defines HQTAs as areas within one-half mile of a major transit stop and a high-quality transit corridor. According to SCAG, HQTAs in northern Orange County exist in Garden Grove, Anaheim, Fullerton, Santa Ana, Costa Mesa, Huntington Beach and adjacent areas. In south Orange County, Lake Forest, Laguna Niguel, Dana Point, and San Clemente contain HQTAs (Figure D-29).

According to AllTransit, Laguna Niguel had an AllTransit Performance Score of 2.8 (out of 10) indicating a low combination of trips per week and number of jobs accessible by transit. Figure D-30 shows that the northeastern area of the City, which is closest to the Interstate 5 corridor, has the highest scores compared to the rest of the City. According to AllTransit, on average, households are located within a half mile of two transit stops and 1.14 percent of commuters in Laguna Niguel use transit.

In Laguna Niguel, commuter rail service is provided by Metrolink, a train system offering connections across southern California, with service Monday through Friday from roughly 4 AM to 8 PM and a reduced schedule on weekends. The Laguna Niguel/Mission Viejo Metrolink station is located on Camino Capistrano south of Crown Valley Parkway in the Laguna Niguel Gateway Specific Plan area. Compared to regional bus service, Metrolink offers quicker (though more expensive) access to the destinations and employment centers throughout southern California. Discounts are available for seniors, students, youths, active military, disabled, or those on Medicare.

Local and regional bus service is provided by the Orange County Transit Authority (OCTA). Routes that operate in Laguna Niguel include line 90, with north/south stops along Golden Lantern Street, line 91 with north/south stops along Camino Capistrano and Cabot Road, line 85 along Crown Valley Parkway, and line 87 along Alicia Parkway. These bus and rail public transportation opportunities provide excellent access to the lower-income sites inventory identified in Appendix B.

March October 2023 D-47

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-28
AlTransit Performance Scores - Orange County
COUNTY: ORANGE, CA
Streets Transit Map Satellite AllTransit ™ Performance Score San Bernardino
Los Angeles

4.2 Torrance F
Long Beach 1a to work
Santa
Huntington vic
Beach On Average Households have:
528 Transit Trips per Week within & Mile
4 Transit Routes within % Mile
Tero Harbors: Aguangs
172,595 Jobs Accessible in 30-minutetrip

2.28% Commuters Who Use Transit
Paumayalty
Show Transit Agencies (12)
Google Teams et use Report a map error
board short: Map date 62022 0006245
Overall transit score that looks at connectivity, access to jobs, and frequency of service. 8-1•1-2#2.4 #4-5#5-6=6-7=7.9 9+
March October 2023 D-48

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-29
SCAG High Quality Transit Areas - Orange County
ET Mon te Ontario
Los Angeles West Covina Pomona
ElletLos
Chin
Angeies
no Hill Mira Loma
505
ood
Downey
Norwalk
Corona
Cerrit
Anahein
in ce
Or
arden arg
santaana
Xivine
Huntington
each Ssta Mesa archo Sant
Margarit
Lake Jest
ewport Beach
Niguel
Laguna Benc
San Clemente
Camp Pon:

Marine Corp
alon
i 25
Miles
SCAG Region - High Quality Transit Areas
High Quality Transit Areas
Source: Esri, HERE, Garmin.

NGA USGS. NPS
March October 2023 D-49

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-30
AllTransit Performance Scores - Laguna Niguel
CITY: LAGUNA NIGUEL, CA
+ Streets Transit Map Satellite AlITransit ™ Performance Score

2.8 Aliso
Low combinaton o rips per vel and number o
Ladera Ranch
lobs accessible enabli New people to take transi
Rancho
Mission Vieio On Average Households have:
164 Transit Trips per Week within Mile
2 Transit Routes within ½ Mile
39,140 Jobs Accessible in 30-minute trip

1.14% Commuters Who Use Transit
Show Transit Agencles (2)
Sore No co So rese Tomas or use Report a map o
Overall transit score that looks at connectivity, access to jobs, and frequency of service. - 181-2 2-4 #4-5 #5-6 16-7 7.9 9-
March October 2023 D-50

THE CITY OF LAGUNA NIGUEL HOUSING

5. Economic Opportunity
A community's access to economic opportunities is based on five indicators; poverty, adult education, employment, job proximity, and median home value.

The SCAG region's economy has grown to be the 15" largest in the world and is supported by nearly 19 million people in a 6-county area that spans more than 38,000 square miles. The SCAG region has seen a large influx of "domestic in-migrants" which means new residents moving to the region from other parts of the country. These domestic in-migrants tend to have a higher education level than domestic out-migrants.

Many regional economists believe this to be an indicator of a booming mega-region. While this can be great for the region's economy, it also presents economic challenges for low- and moderate-income families who are native to Southern California.

HUD's Job Proximity Index measures accessibility of households to jobs in the region. Index scores range from 0 to 100, where a higher score indicates higher access to employment opportunities. In Orange County, the highest job proximity values are in the central part of the County, in the cities of Newport Beach, Costa Mesa, Irvine, Lake Forest and Orange (Figure D-31). Areas with lower proximity to jobs are in the northern and southern portions of the County, in the cities of Huntington Beach, Westminster, Garden Grove, La Habra and in southern Orange County, in the cities of Mission Viejo, the community of Ladera Ranch, Laguna Niguel, San Juan Capistrano, Dana Point and San Clemente. These communities all contain census block groups with scores of less than 20, indicating lower job proximity.

The job proximity index scores, combined with poverty, adult education, employment, and median home value are used in generating CAC Economic Composite scores. TCAC economic scores range from 0 to 1, where higher values indicate more positive economic outcomes. Figure D-32 shows the TCAC economic scores by census tract in Orange County. The highest economic scores in the County are primarily located in the coastal communities, as well as some inland communities. Census tracts in coastal communities with the highest economic scores are in the cities of Laguna Beach, Newport Beach, Costa Mesa, Huntington Beach, and Seal Beach. Inland Orange County census tracts with the highest economic scores are in the cities of Tustin, Yorba Linda and Placentia. These communities all contain census tracts with economic opportunity scores of 0.75 or greater.

Figure D-33 shows the HUD jobs proximity scores by block group in Laguna Niguel. As seen in this map, the southern corner and central portion of the City have jobs proximity scores of less than 20, indicating the lower proximity to jobs, while areas along the northern boundary of the City have jobs proximity scores ranging between 20-40, and some block groups in the furthest east portion of the City have scores between 40-60 and others have scores between 60-80, indicating higher job proximity. Opportunity sites in the Laguna Niguel Gateway area are located in the area with highest job proximity, which expands economic opportunity for lower-income households.

As discussed previously, the TCAC economic scores are a composite of jobs proximity, poverty, adult education, employment, and median home value characteristics. Figure D-34 shows census tracts in Lagun Viguel that have a mix of economic opportunities. Census tracts with lower middle range economic March October 2023 D-51

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-31
Regional Jobs Proximity Index - Orange County
Laguna B
alon
° 25
Mile:

Jobs Proximity Index (2014-2017) - HUD (Block Group)
* Laguna Niguel Boundary 20 - 40
Source: Esri, HERE, Garmin.

Jobs Proximity Index 40 - 60 NGA, USGS, NPS
< 20 (Furthest Proximity) 60 - 80
> 80 (Closest Proximity)
March-October 2023 D-52

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-32
TCAC Economic Scores - Orange County
wina
a tiesa
Laguna B
Cl am en te
alon
° 25
Miles
TCAC Opportunity Areas 2021 - Economic Score (Tract)
:: Laguna Niguel Boundary 25..50 i No Data

50. 75 Source: Esri. HERE, Garmin.

Economic Domain Score (by NGA. USGS. NPS
region) • 75 (More Positive Economic
< 25 (Less Positive Economic Outcomel
Outcomel
March October 2023 D-53

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-33
Jobs Proximity Index - Laguna Niguel
Jobs Proximity Index (2014-2017) - HUD (Block Group)
:: Laguna Niguel Boundary 20 - 40
Source City of Laguna
Jobs Proximity Index 40 - 60 Miguel. Bureau of Lanc
Management, Esri, HERE
< 20 (Furthest Proximity) 60 - 80 Garmin, GeoTechnologies, Inc. NGA, USGS
> 80 (Closest Proximity)
March October 2023 D-54

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-34
TCAC Economic Scores - Laguna Niguel
Aliso
San
Capisty:

D
TCAC Opportunity Areas 2021 - Economic Score (Tract)
* Laguna Niguel Boundary 25. 50 -! No Data

50. 75 Source City of Laguna
Economic Domain Score (by Niquel, Bureau of Land
# > 75 (More Positive Economic Management, Esri, HERE.
region) Garmin, Geo Technologies,
< 25 (Less Positive Economic Outcomel Inc, NGA, USGS
Outcomel
March October 2023 D-55

THE CITY OF LAGUNA NIGUEL HOUSING

6. Environmental Conditions
The TCAC Environmental Domain Scores are based on CalEnviroScreen 3.0 scores, compiled by the Office of Environmental Health Hazard Assessment (OEHHA). CalEnviroScreen 3.0 scores help to identify California communities by census tract that are disproportionately burdened by, and vulnerable to, multiple sources of pollution. CalEnviroScreen also considers socioeconomic factors such as educational attainment, linguistic isolation, poverty, and unemployment. TCAC Environmental Scores range from 0 to 1, with higher scores indicating more positive environmental outcomes.

In Orange County, the census tracts with the lowest TCAC environmental scores are located along the eastern boundary of the County, in census tracts near the Interstate 5 and State Route 133 interchange in Irvine (Figure D-35). Other census tracts with low environmental scores are in central portions of the county such as Irvine, Orange, Anaheim, Fullerton and Brea, and in census tracts along the coast in communities such as Seal Beach and Newport Beach.

While Figure D-35 shows TCAC Environmental Scores in Laguna Niguel based on CalEnviroScreen 3.0, the Office of Environmental Health Hazard Assessment released CalEnviroScreen 4.0 in October 2021.

CalEnviroScreen 4.0 uses percentiles to score environmental quality of each census tract, where the lower the percentile, the higher the environmental quality is within that census tract. Based on CalEnviroScreen 4.0 (Figure D-36), the northern portion of Orange County has the highest scores, and the southern portion of the County has the lowest.

In Laguna Niguel, all census tracts (with the exception of tracts 423.32 and 423.17, which have no data) received the highest TCAC environmental scores (Figure D-37). Laguna Niguel's environmental scores are consistent with the environmental scores of census tracts in communities that neighbor Laguna Niguel with the exception for some census tracts in Dana Point and San Juan Capistrano, which scored in the lower and moderate environmental scores.

As shown in Figure D-38, census tracts in Laguna Niguel located along the northern and eastern boundary of the City (423.20, 423.34, 423.35, 423.15, 423.30, and 423.31) scored in the 20th percentile while all other census tracts in the City scored in the 10" percentile, indicating the highest environmental outcomes. All of the City's housing opportunity sites are located in census tracts in the top 10-20 percentiles for environmental scores.

March October 2023 D-56

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-35
TCAC Environmental Scores - Orange County
Huntin ton
Be
Laguna Be
Clemen tr
alon
'35
Mila
TCAC Opportunity Areas 2021 - Environmental Score (Tract) ::* Laguna Niguel Boundary [*1.25..50 • No Data
Environmental Domain Score • .50 - 75 Source: Esri, HERE, Garmin.

NGA, USGS. NPS
(by region) .75 - 1 (More Positive
Environmental Outcomes)
= < 25 (Less Positive
nvironmental Outcomes
March October 2023 D-57

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-36
CalEnviroScreen 4.0 Scores - Orange County
indel
Angele
ood
DO
Mine
Ranchio bants
Margetita
rewport Beach Missich Vi
Niguel
Laguna Be
Clemente
alon

2.5 Environmental Justice Communities CalEnviroScreen 4.0 ::* Laguna Niguel Boundary 21-30% 61. 70%
CalEnviroScreen 4.0 Percentile 31-40% 71 - 80% ource: Esrl, HERE. Garmi

GA, USGS, NF
1 - 10% (Lowest Scores) 41 - 50% 81-90%
11-20% 51-60% 91 - 100% (Highest Scores)
March-October 2023 D-58

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-37
TCAC Environmental Scores - Laguna Niguel
Aliso Viejo
Laguna Nigu:

San Juat
Capistra
° 2505
TCAC Opportunity Areas 2021 - Environmental Score (Tract) ::* Laguna Niguel Boundary 25.50 No Data

50. 75 Source City of Laguna
Environmental Domain Score Niquel, Bureau of Land
(by region) 75 - 1 More Positive Management, Esri, HERE Garmin Geciechnologies
C] <25 (Less Positive Environmental Oulcomes) Inc, NGA, USCS Environmental Outcomes]
March October 2023 D-59

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-38
Sites Inventory and CalEnviroScreen 4.0 Scores - Laguna Niguel 14 25
30 36
33 0.25
Environmental Justice Communities CalEnviroScreen 4.0
*% Laguna Niguel Boundary 31.40% 81-90% Moderate Income CalEnviroScreen 4.0 Percentile 41. 50% 91. 100% Highest Scores! Lower Inconic Source City of Laguna 1-10% (Lowest Scores! 51.60% Census Trads Miguel, County of Los Income Supported Angeles, Calloria State

11.20% 61-70% Above Modercte Income Opportunity Siles Parks, Esn, HERE, Gannin. 21-30% 71 - 80% SafeGraph.

March October 2023 D-60

THE CITY OF LAGUNA NIGUEL HOUSING

7. Healthy Places
The Public Health Alliance of Southern California (Alliance) created the Healthy Places Index (HPI) as a tool for analyzing community health conditions in order to inform strategies for positive change. The HPI measures a combination of 25 community characteristics such as housing, education, economic, and social factors which results in a healthy community conditions index score, represented as a percentile compared to the State of California. Lower HPI scores indicate lower community health conditions. Figure D-39 shows the HPI scores in Orange County by census tract. As seen in this map, most tracts in the southern, central inland, and coastal tracts have HPI scores greater than the 60" percentile, with a few lower percentile outliers.

There tends to be a greater number of tracts with HPI scores lower than the 20th percentile scattered throughout the northern part of the County, with many scoring in the 20" 40" and 40"-60 percentiles. The northern part of the county contains significantly fewer census tracts with higher HPI scores greater than the 60th percentile. Some communities in northern Orange County have also been identified as having lower access to opportunity, higher concentrations of low-and moderate-income households, and greater concentrations of minority groups.

Figure D-40 shows that most census tracts in Laguna Niguel have the highest HPI scores (80"-100th percentile), indicating excellent community health conditions as they relate to economic, education, social, transportation, neighborhood, housing, clean environment, and healthcare access factors. With the exception of some vacant single-family lots, all of the parcels in the City's sites inventory are located in areas with HPI scores in the two highest categories.

March October 2023 D-61

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-39
HPI Percentile - Orange County
Banta
Hi ta
Laguna
alon
2:5
Miles
Healthy Places Index
: • Laguna Niguel Boundary 40% - 60%
Source: Esri, HERE, Garmin,
HPI Percentile 60% - 80% NGA, USGS, NPS
< 20% 80% - 100%
20% - 40%
March October 2023 D-62

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-40
HPI Percentile - Laguna Niguel
0 0230
Healthy Places Index
: = Laguna Niguel Boundary 40% - 60%
Source City of Lagura
HPI Percentile 60% - 80% Miguel. Buneau of Land
Marsgement Esii, HERE.
< 20% 80% - 100% Carmin GeeTechnologies,
Inc, NGA, USGS
20% - 40%
March October 2023 D-63

THE CITY OF LAGUNA NIGUEL HOUSING
E. Disproportionate Needs
The APPH Rule Guidebook defines disproportionate housing needs as "a condition in which there are following analysis of disproportionate housing needs assesses cost burden (also referred to as "overpayment"), overcrowding, and substandard housing.

Comprehensive Housing Affordability Strategy (CHAS) data developed by the Census Bureau for HUD provides detailed information on housing needs by income level for different types of households. Housing problems considered in the CHAS include:

Housing cost burden, including utilities, exceeding 30 percent of gross income; • Severe housing cost burden, including utilities, exceeding 50 percent of gross income; Overcrowded conditions (housing units with more than one person per room; and/or Units with physical defects (lacking complete kitchen or bathroom)

1. Cost Burden
Regional Trends
In Orange County, higher concentrations of cost burdened renters are located in the north-central portion of the County where there are more census tracts with 60-80 percent of the renter-occupied household population paying greater than 30 percent of their income on housing. The southern portion of the County has fewer cost burdened renters; however, there are large concentrations of census tracts with 40-80 percent of the renter-occupied household population that are cost burdened (Figure D-41). Figure D-42 shows owner- occupied households that are cost burdened in Orange County. In the northern portion of the county there are significantly more census tracts with 60-80 percent of owner-occupied households paying more than 30 percent of their income on housing compared to southern Orange County. In addition, there are several tracts with greater than 80 percent of owners experiencing cost burden, while there are none in the southern part of the County.

Local Trends
As discussed previously in Table II-7 of Chapter II - Housing Needs Assessment, approximately 57 percent of renter households in Laguna Niguel pay over 30 percent of income for housing, while 27 percent pay over 50 percent of income for housing. Among owner households overpayment is less common, with 33 percent paying over 30 percent of income and 16 percent paying over 50 percent of income for housing.

Figure D-43 and Figure D-44 show cost burden in Laguna Niguel by census tract and tenure. According to the AFFH data viewer, Laguna Niguel census tracts have overpayment rates of 20 to 80 percent for renter households. The highest rates of overpayment among Laguna Niguel renters is found in census tracts 423.17, 423.29 and 423.31, east of Crown Valley Parkway, south of Golden Lantern and north of Camino del Avion, where over 60 percent of households were reported as overpaying, and over 80 percent were overpaying in tract 423.31. Based on a comparison of 2010-2014 and 2015-2019 ACS data, the trend for overpayment has been mixed in Laguna Niguel, with overpayment rates increasing in some tracts but decreasing in others.

Overpayment among homeowners in Laguna Niguel is less common than for renters, with rates for census tracts ranging from 20 to 60 percent. Based on a comparison of 2010-2014 and 2015-2019 ACS data, rates of homeowner overpayment have been decreasing in some portions of the city while increasing in others.

March October 2023 D-64

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-41
Renter-Occupied Cost Burdened Households - Orange County 1 ch
Torwalk
Coron
Mess
Laguna Be
n Clemente
alon
Miles
Overpayment by Renters (2015-2019) - ACS Tract Level
* * Laguna Niguel Boundary → 20% - 40%
Percent of Renter Households / 40% - 60% Source: Esri, HERE, Garmin 60% - 80% NGA, USGS, NPS
r whom Gross Rent is ov
or or more of house
> 80%
Income
• < 20%
March October 2023 D-65

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-42
Owner-Occupied Cost Burdened Households - Orange County Laguna B
an Clemente
Camp Pend
Marine Corp
alon
Overpayment by Home Owners (2015-2019) - ACS Tract Level hold Income
:: Laguna Niguel Boundary ercent of Owner Household 7 20% - 40% ith Mortgages whose Month 40% - 60% source: Esri, HERE, Garmir IGA, USGS. NP
Owner Costs are 30.0 Percent 60% - 80%
or More of Household Income
> 80%
< 20%
March October 2023 D-66

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-43
Sites Inventory and Renter-Occupied Cost Burdened Households - Laguna Niguel 0 25 05
Mile
Overpayment by Renters (2015-2019) - ACS Tract Level
5 laguna Niguel Boundary 20% - 40% Income Supported ] Opportunity Sites Percent of Renier Households 40% - 60% Above Moderate Income Source City of Laguna for whom Gross Rent is over 60% - 80% Miguel, County of Los Moderate Incono Angeles, Califomia State
30% or more of household > 80% Lower Income Parks, Een HERE, Gamin Income SafeGraon.

Census Tracl
< 20%
March October 2023 D-67

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-44
Sites Inventory and Owner-Occupied Cost Burdened Households - Laguna Niguel 37 Overpayment by Home Owners (2015-2019) - ACS Tract Level * Laguno Niguel Boundary 20% - 40% Income Supporied Opportunity Sites Percent of Owner Households 40% - 60% 1 Above Madercle Income Source: City of Laguna with Morigages whose Monthly 60% - 80% Modercle Income Niguel, County of Los Owner Costs ore 30.0 Percen: Angeles, Califomia State
> 80% Lower Income Parks Est HERE, Gain,
or More of Household income SateGraph,
• Census Tracis
< 20%
March October 2023 D-68

THE CITY OF LAGUNA NIGUEL HOUSING
Overcrowding
Overcrowding is defined as a housing unit with more than one person per room (including dining and living rooms but excluding bathrooms and kitchens) and extreme overcrowding is defined as having more than 1.5 occupants per room. Overcrowding in a community can be an indicator of the lack of available housing at affordable cost.

Regional Trends
According to ACS 2015-2019 estimates, about 8.8 percent of all households in Orange County live in mong renters,
being severely overcrowded. For homeowners, about 3.7 percent of households experience overcrowded conditions, with about 1 percent being severely overcrowded.

As seen in Figure D-45 overcrowded households are primarily located in the northern portion of the County, in communities such as Anaheim, Garden Grove, Orange, and Santa Ana. Some analysts believe that the overcrowding rate is actually higher due to under-reporting.

Table D-13Table D-14
Overcrowded Households - Orange County
Overcrowded Severely Overcrowded
Tenure (>1 person per room) (15 persons per room)
Owner-Occupied 3.7% 1.0%
Renter-Occupied 15.8% 6.0%
All Households 8.8% 3.1%
Source: 2015-2019 ACS
Local Trends
Compared to the county as a whole, overcrowding is relatively low in Laguna Niguel. As shown in Table D-15, only 0.7 of owner-occupied households are overcrowded, with about 0.1 percent severely overcrowded. A higher portion of renter occupied households experienced overcrowded conditions, with about 8.3 percent of renter-occupied households being overcrowded and 3.1 percent severely overcrowded.

In total, only 3.1 percent of households were reported as overcrowded, compared to 8.8 percent for the county as a whole. Laguna Niguel's rate of overcrowded households is also less thant the Statewide average of 8.2 percent in all census tracts (Figure D-46).

Table D-14Table D-15
Overcrowded Households - Laguna Niguel
Severely Overcrowded
Tenure >1.5 persons per room)
Owner-Occupied 0.1%
Renter-Occupied 8.3% 3.1%
All Households 3.1% 1.0%
Source: 2015-2019 ACS
March October 2023 D-69

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-45
Overcrowded Households - Orange County
age! Pothona
ood
Bo
Overcrowded Households Data - CHHS - (Tract)
[= Laguna Niguel Boundary 8.3% - 12%
Source: Esri, HERE, Garmin.

Overcrowded Household 12.01% - 15% NGA, USGS. NPS
Percentage 15.01% - 20%
< 8.2% (Statewide Average) > 20%
March October 2023 D-70

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-46
Overcrowded Households - Laguna Niguel
San Juar
Capistr
1 0.25 d
D
Overcrowded Households Data - CHHS - (Tract)
:: Laguna Niguel Boundary 2 7 8.3% - 12%
Source City of Laquna
Overcrowded Household 53 12.01% - 15% Niguel. Bureau of Land Management, Esri, HERE
Percentage 15.01% - 20% Garmin, Geo Technologies
Inc., NGA. USGS
< 8.2% (Statewide Average) > 20%
March October 2023 D-71

THE CITY OF LAGUNA NIGUEL HOUSING

3. Substandard Housing Conditions
A common indicator of substandard housing is lacking complete kitchen and plumbing facilities. In addition, residential structures that are over 30 years old generally require minor repairs and modernization improvements, while units over 50 years old are likely to require major rehabilitation such as roofing, plumbing, and electrical system repairs.

Regional Trends
As shown in Table D-16 about 1.6 percent of all Orange County households lack complete kitchen facilities Table D-15Table D-16
Substandard Housing Conditions - Orange County
Tenure Lacking Complete Kitchen Facilities Lacking Complete Plumbing Facilities Owner 0.3% 0.2%
Renter 3.3% 0.2%
All Households 1.6% 0.2%
Source: American Community Survey, 2015-2019 (5-Year Estimates).

Another indicator of substandard housing conditions and rehabilitation needs is the age of a municipality's housing stock. According to Table D-17, about 75 percent of the county's housing stock was built before 1990 and is more than 30 years old, indicating this proportion of housing units may need minor repairs, or major rehabilitation.

Table D 16Table D-17
Age of Housing Stock - Orange County
1969 or Earlier 1970-1989 1990 or Later
(50+ Years) (30-50 Years) (<30 Years) Total Housing Units

37.1% 38.2% 24.7% 1,100,449
Source: American Community Survey, 2015-2019
Local Trends
At the City level, only about 0.7 percent of households lack complete kitchen facilities in Laguna Niguel (Table D-18), a much lower proportion than the county as a whole. A larger portion of renter households lack complete kitchen facilities (1.3 percent) compared to owners (0.5 percent). Among owner households, 0.9 percent reported incomplete plumbing facilities while no renters reported incomplete plumbing.

Overall, Laguna Niguel has a greater proportion of households that lack complete plumbing facilities compared to the County, (0.6 percent of households in the City compared to 0.2 percent of households in the County). While the City has an overall higher rate of households lacking complete plumbing facilities, no renter-occupied households in Laguna Niguel lack complete plumbing facilities, while 0.2 percent of renters Countywide do.

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Table D-17Table D-18
Substandard Housing Conditions - Laguna Niguel
Tenure Lacking Complete Kitchen Facilities Lacking Complete Plumbing Facilities Owner 0.5% 0.9%
Renter 1.3% 0.0%
All Households 0.7% 0.6%
Source: American Community Survey, 2015-2019 (5-Year Estimates).

As shown in Table D-19, about 68 percent of the City's housing stock was built before 1990, indicating a potential need for minor repairs or major rehabilitation. As discussed previously, approximately 5% of the homes in the City's older neighborhoods, typically built in the late 1960s and early 1970s. are in need of structural repairs consisting primarily of new roofs and window replacements. The City estimates that approximately 300 dwelling units may be in need of structural repairs, which represents about 1% of the City's total housing stock. According to the Code Enforcement division. areas that are more likely to exhibit signs of maintenance issues include neighborhoods without a homeowners association in the northeastern quadrant of the City (census tracts 423.29 and 423.15) and older multifamily units in the northern portion of the City near SR-73 (census tracts 423.35 and 423.34).

Table D-18Table D-19
Age of Housing Stock - Laguna Niguel
1969 or Earlier 1970-1989 1990 or Later
(50+ Years) (30-50 Years) (<30 Years) Total Housing Units

6.3% 62.1% 31.6% 27,235
Source: American Community Survey, 2015-2019
While substandard housing conditions can occur in both owner-occupied housing and renter-occupied housing, in general, renters are more vulnerable than homeowners because they are more likely to have lower household incomes and have less control over repairs to their residence. Because almost a third (29 percent) of housing units in the City are renter-occupied, a large proportion of residents may be disproportionately affected by substandard housing conditions. Other vulnerable populations include homeowners who are seniors or residents with disabilities, who may be on fixed incomes and/or not able to perform repairs themselves, and low-income homeowners. Neglected rental properties. illegal conditions. and other substandard housing conditions can result in disproportionate safety and health hazards. Program 4 in the Housing Plan addresses housing rehabilitation through the active property maintenance program by conducting "windshield" surveys, covering all property in Laguna Niguel every six months, to identify areas with substandard housing conditions. Program 4 also directs the City to seek CDBG and/ or PHLA funding for housing rehabilitation and provide targeted outreach and resources to areas with less stable housing conditions. The City is also committed to fair housing services and tenants' rights outreach and education (e.g., Program 5) in order to provide affected renters with the resources necessary to remedy substandard housing conditions.

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4. Displacement Risk
HCD defines sensitive communities as "communities that currently have populations vulnerable to displacement in the event of increased development or drastic shifts in housing cost." The following characteristics define a vulnerable community:

The share of very-low-income residents is above 20 percent; and The tract meets two of the following criteria:
• Share of renters is above 40 percent,
Share of people of color is above 50 percent,
• Share of very-low-income households (50 percent AMI or below) that are severely rent burdened households is above the county median,
They or areas in proximity have been experiencing displacement pressures (percent change in rent above County median for rent increases), or
Difference between census tract median rent and median rent for surrounding tracts above median for all tracts in the county (rent gap).

Regional Trends
UC Berkeley and the University of Toronto created the Urban Displacement Project to help identify populations that are vulnerable to displacement, which they define as "sensitive communities." If a community has greater than 40 percent renters and greater than 50 percent people of color, combined with the population of low-income renters experiencing extreme housing cost burden, it is considered vulnerable to displacement. As seen in Figure D-47, communities in the northern part of Orange County contain most of the census tracts considered as "sensitive communities." These census tracts are in communities such as Santa Ana, Garden Grove, and Anaheim. Other sensitive communities are in the City of Huntington Beach, Newport Beach, Laguna Niguel, Dana Point, San Juan Capistrano, San Clemente, and Lake Forest.

Local Trends
In Laguna Niguel, census tract 423.30, located north of Marina Hills Drive between Golden Lantern and Niguel Road, is the only tract that is identified as a sensitive community by the Urban Displacement Project (Figure D-48). This tract also has higher concentrations of LMI households (see Figure D-13), concentrations of racial/ethnic minorities (see Figure D-5) and cost-burdened renters (see Figure D-41).

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Figure D-47
Sensitive Communities at Risk of Displacement - Orange County Westegrina
Eghino
coma
Hinting
Bear a Mesa Rancho Santa
Lake Mangatita
export Beach Mission Viéio
Niguel
Laguna Bett
Genrente
a on
Miles
Sensitive Communities - UCB - Urban Displacement Project : = Laguna Niguel Boundary
Source: Esil, HERE, Gamin,
Tier 2 NGA. USGS, NPS
Z Vulnerable
March October 2023 D-75

THE CITY OF LAGUNA NIGUEL HOUSING
Figure D-48
Sensitive Communities at Risk of Displacement - Laguna Niguel Aliso viejo t
Laguna Niguel
• 73
Maulton
pd
Aliso & Wool Gres do Colines
Canyons:

Wilderness
Racific Island Dr Golden Lantern
PAwy: ......

San duan
Capis wano
;
Del ObisposI
D...•
Sensitive Communities - UCB - Urban Displacement Project :: Laguna Niguel Boundary
Source City of Lanuna
Tier 2 Niquel, Bureau of Land
Management, Esri HERE
Garmin Geo Technologies
ZA Vulnerable inc NGA USGS
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5. Homelessness
Regional Trends
HUD requires all Continuum of Care programs to conduct a biennial point-in-time (PIT) unsheltered and an innual sheltered count of persons experiencing homelessness. The Orange County Continuum of Care (Col CA-602) conducted their 2022 sheltered PIT count on the night of Monday, February 21, 2022. The unsheltered PIT count occurred over the course of 3 days, beginning on Tuesday, February 22 and ending on Thursday, February 24. According to the 2022 PIT count (Table D-20), there were a total of 5,718 persons in Orange County experiencing homelessness. Of this total, 3,057 (53.5 percent) were unsheltered while 2,661 (46.5 percent) were sheltered. Since the County's 2015 PIT, the 2022 homeless population increased by about 22.1 percent (4,452 persons experiencing homelessness in 2015 compared to 5,718 in 2022), but the number of homeless persons has decreased by about 20 percent since 2019 (6,860 persons experiencing homelessness in 2019 compared to 5,718 in 2022).

Table D-19Table D-20
People Experiencing Homelessness by Shelter Status in Orange County - 2022 Persons Percent
Sheltered 2,661 46.5%
Unsheltered 3,057 53.5%
Total 5,718 100.0%
Source: Everyone Counts 2022 Point in Time Summary
The largest percentage of the County's 2022 Homeless population is represented by White individuals, comprising 70.9 percent of the total county's homeless population (Table D-21).

Table D-20Table D-21
Racial/Ethnic Breakdown of Orange County Homeless Population 2022 Persons Percent
American Indian or Alaska Native 211 3.7%
Asian 195 3.4%
Black or African American 483 8.4%
Native Hawaiian or other Pacific Islander 57 1.0%
White 4,056 70.9%
Multiple Races or Other 716 12.5%
Total 5,718 100%
Ethnicity
Hispanic/Latinx 2,252 39.4%
Non-Hispanic/Latinx 3,466 60.6%
5,718 100%
U.S. Dept. of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2022) Table D-22 shows the distribution of people experiencing homelessness in Orange County by Service Planning Areas (SPA). Laguna Niguel is in the South SPA, which has the smallest homeless population of the three SPAs. While the South SPA has the smallest homeless population, it has the highest proportion of unsheltered homeless persons (72.1 percent) compared to the North (46 percent) and Central (56.1 percent) SPAs. The County's 2022 PIT was conducted using a GIS application on the volunteers' cell phones, which created a geographic record of persons experiencing homelessness, as shown in Figure D-49.

Table D-21Table D-22
Homeless Population in Orange County by Service Planning Area 2022 North SPA Central SPA South SPA
Persons Percentage Persons | Percentage Persons Percentage Sheltered 1,306 54.0% 1,192 43.9% 163 27.9%
Unsheltered 1,113 46.0% 1,522 56.1% 422 72.1%
Total 2,419 100.0% 2,714 100.0% 585 100.0%
Source: Everyone Counts 2022 Point in Time Summary
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Figure D-49
Unsheltered Point in Time Count - Orange County
Source: Orange County Everyone Counts: 2022 Point in Time (PIT) Report March-October 2023 D-78

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Subpopulations of the homeless in Orange County include the chronic homeless, substance abuse, mental health issues, developmental disabilities, domestic violence, and HIV/AIDS, all of which require specia attention. Table D-23 shows the subpopulations of homeless persons in Orange County. Homeless persons with chronic substance abuse issues represent about 38.3 percent of the County's total homeless population, while severely mentally ill homeless populations make up the second largest segment of the homeless population (33.9 percent).

Table D 22Table D-23
Subpopulations of People Experiencing Homelessness in Orange County 2022 Subpopulation Persons Percent
Severely Mentally I!! 1,445 33.9%
Chronic Substance Abuse 1,633 38.3%
Veterans 280 6.6%
HIVIAIDS 129 3.0%
Victims of Domestic Violence 515 12.1%
Unaccompanied Youth 183 4.3%
Parenting Youth 34 0.8%
Children of Parenting Youth 46 1.1%
Subpopulations Total 4,265 100.0%
U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2022)
Local Trends
The County's 2022 PIT reported 29 total homeless individuals in Laguna Niguel, all of which were unsheltered (0.5 percent of the County's total homeless population). The 2022 PIT count shows that the highest concentrations of unsheltered individuals were found in the northeast and northwest portions of the City (near a shopping center bounded by Greenfield Street, Crown Valley Parkway and SR-73: in the Gateway Specific Plan area, near Metrolink station; and within commercial/public use areas near the Chet Holifield Federal Building). Another area with a concentration of unsheltered individuals was in the western portion of the City, near the intersection of Crown Valley Parkway and Alicia Parkway. This area contains a number of public uses, including City Hall, the Police Department, and the OC Library. These areas are generally served by public transportation: local access is provided by OCTA routes 85, 87, and 90 and regional access is provided by the Metrolink rail station. There are no emergency shelters in Laguna Niguel.

The nearest shelter to Laguna Niguel is the Friendship Emergency Shelter located in Laguna Beach. Since 2019, the City's overall population of people experiencing homelessness has increased by 19 individuals (190.0 percent) from 10 to 29 individuals. The unsheltered population has increased by 22 individuals (314.3 percent), while the City's sheltered population has decreased by 3 individuals (-100.0 percent). These trends differ from the County's homeless population change since 2019, where the total population of people experiencing homelessness decreased by 1,142 individuals (-16.6 percent), from 6,860 individuals in 2019 to 5,718 individuals in 2022.

Table D-23Table D-24
Populations of Persons Experiencing Homelessness Over Time - Laguna Niguel 2019 2022
Persons Percent Persons Percent % Change
Sheltered 30.0% 0 0.0% -100.0
Unsheltered 70.0% 100.0% 314.3%
100.0% 29 100.0% 190.0%
Sure: Everyone Count 202 Pain Time summary
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6. Sites Inventory Analysis
The location of housing relative to resources and opportunities is a critical consideration in furthering fair housing, especially for households with lower incomes. The AFFH analysis must examine the locations of parcels in the City's sites inventory to evaluate the extent to which those sites would improve or exacerbate fair housing. The focus of the analysis is on sites available for lower-income housing since a primary policy objective of fair housing law is to improve opportunity and economic mobility for households at the lower end of the income spectrum. The results of this analysis inform the identification of fair housing contributing factors and help guide the City's strategies to address existing fair housing issues in Laguna Niguel.

The City's inventory of sites for potential housing is presented in Appendix B. The inventory is comprised of approved or pending projects, vacant sites, non-vacant underutilized sites, and future ADUs. Since the locations of previously approved projects and development applications has already been established, and the City has no control over homeowners' decisions to build ADUs, the fair housing review focuses on the locations of vacant and underutilized sites. As with most cities in the metro areas of Southern California, vacant developable land is very rare, and underutilized sites provide the majority of future housing development capacity in Laguna Niguel. As discussed in Appendix B, the most significant housing development opportunities are located on underutilized commercial parcels in the Gateway Specific Plan area. However, future residential development is not precluded elsewhere in the City: multifamily residential projects have been developed in other areas of Laguna Niguel including around the Marketplace and Town Center. Some of these projects have served the needs of special populations. including seniors, and have included affordable components. The City continues to encourage the development of new residential projects throughout the City, while at the same time recognizing that the Gateway represents the most viable location to accommodate new development affordable to households at all income levels.

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, although a significant amount of redevelopment activity has been occurring in the Gateway recently - primarily high-density multi-family housing.

The Laguna Niguel/Mission Viejo Metrolink rail station opened in the Gateway in 2002, which became a catalyst for revitalization and transformation of the area into a major mixed-use, transit-oriented activity center. Shortly after, the City of Laguna Niguel began a planning effort to update land use regulations to facilitate this transformation, culminating in the adoption of the Gateway Specific Plan in 2011. Table B-3 in Appendix B illustrates the success of the Gateway Specific Plan in facilitating new multi-family development that replaced underutilized commercial and light industrial properties.

In evaluating the extent to which the sites inventory furthers AFFH objectives, a census tract-level analysis of the geographic distribution of sites was prepared based on the following six key fair housing indicators:
minority concentrations (Figure D-6), disability rates (Figure D-8), familial status (Figure D-12), low- moderate income concentrations (Figure D-14), overpayment among renters (Figure D-16), and TCAC composite opportunity scores (Figure D-23). Table D-25 summarizes the underlying data for these exhibits The purpose of this analysis is to evaluate whether the inventory of sites for future housing developmen would perpetuate or exacerbate patterns of segregation. 12 March October 2023 D-80

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Table-D-24Table D-25
Distribution of Potential Housing Sites by AFFH Indicator Potential Housing Units by Income
Category AFFH Indicators
TCAC
Resource
% Children in Category
Census Above % % with a Married Couple % Low/Mod % Renter Tract Lower Mod Mod Minority Disability Households Income Overpayment 243471 : 14414 372362 21-
423.15 600 4196 212 9741.008 40%<20% <10% >80% 25-50% 40-60% Moderate 423.19 06 94 0344 1254 21-40% <10% >80% <25% 40-60% High 423.24 06 04 1556 32866 <20% 10-20% >80% 25-50% 40-60% Highest 423.25 06 04 328431 2441 21-40% <10% >80% <25% 20-40% Highest 423.29 06 04 232 242 ≤20% <10% >80% 25-50% 60-80% High
348258 195258 21-
423.33 6 6223 258 578287 40%<20% <10% >80% <25% 40-60% Highest 423.37 06 04 1314 1324 21-40% <10% >80% <25% 20-40% Moderate 21223 9841,04 1.9221.92
Total 729636 2
-
Sources: U.S. Census; HCD AFFH Viewer, 2022.

As shown in Table D-25, census tracts 423.15, 423.19, 423.24. 423.25. 423.29. 423.33 and 423.33423.37 encompass all of the parcels in the sites inventory, with the exception of scattered single-family lots and estimates for ADU production which are located throughout all geographies. Nearly all of the sites are located in tracts with the second lowest minority concentration (<20%)21-40%; and nearly all of the sites are located in tracts with the lowest disability rate (<10%). All three-seven tracts also have the highest rates of children in married couple households. Twe Four of the three-seven_tracts have very low concentrations of low/moderate income households (<25%) while tract 423.15 reported 25-50% low/moderate households. All threeOnly tracts 423.15 and 423.37 scored Moderate er higher in the TCAC opportunity ratings, while the other five scored Higher or Highest. Tracts 423.15. 423.19. 423.24, and 423.33 have a. Although the rate of overpayment among renters is of 40-60% in all three tracts, these tracts have lower incidence of overpayment than nearby areas in Mission Viejo and San Juan Capistrano to the east and the central portion of Laguna Niguel. Tract 423.29 has a higher rate of overpayment by renters. 60-80%, while tracts 423.25 and 423.37 have lower rates of overpayment by renters at only 20-40%.

This analysis demonstrates that the inventory of sites for future housing development would not perpetuate patterns of segregation or exacerbate fair housing conditions in Laguna Niguel. It should also be noted that this analysis was prepared based on TCAC/HCD Opportunity Map information available from HCD through the AFFH Viewer in 2022. However, in 2023 after the 2021-2029 Housing Element was adopted by the Laguna Niguel City Council HCD started to transition discussion of TCAC/HCD Opportunity areas to a new reference point referred to as the "COG Geography TCAC/HCD Opportunity Map", which uses the same methodology as the TCAC/HCD Opportunity Map but incorporates the following changes:

The reference geography is changed from the California Tax Credit Allocation Committee (TCAC) region to the Council of Governments (COG).
• All tracts within COGs are scored against each other. Tracts that do not fall within a COG are scored against tracts within their county.
• All areas are assessed at the tract level.

Similar to the TCAC/HCD Opportunity Map, this layer seeks to identify areas in every region of the state whose characteristics have been shown by research to support positive economic, educational, and health outcomes for low-income families particularly long-term outcomes for children. The methodology changes March October 2023 D-81

THE CITY OF LAGUNA NIGUEL HOUSING
described above are intended to better align the map with RHNA and Housing Element goals and geographies.

For example, this map scores areas against all other areas within the same COG-or the same county, for non-COG areas rather than against TCAC-defined regions, which are different than COGs. The ICAC/HCD Opportunity Map uses TCAC regions as the reference geography because the map was specifically designed for application in the 9% LIHTC program. which ranks affordable housing funding projects against other projects in the same TCAC-defined region.

In addition, this map does not designate nor adopt a distinct approach to scoring rural areas, but instead scores all areas in the same region on the same scale and at the tract level. This approach contrasts with the TCAC/HCD Opportunity Map. which scores rural areas separately because rural affordable housing developments compete in a separate funding pool.

Using the COG Geography TCAC/HCD Opportunity Map, it should be noted that all census tracts in Laguna Niguel are identified, on that map, as "highest resource" which further supports the City's assertion that the inventory of sites for future housing development would not perpetuate patterns of segregation or exacerbate fair housing conditions in Laguna Niguel.

F. Contributing Factors and Meaningful Actions to Affirmatively Further Fair Housing
Based on public outreach and the technical assessment of fair housing in Laguna Niguel, Table D-26 identifies the factors that contribute to fair housing issues and the meaningful actions the City intends to take to affirmatively further fair housing during the planning period. The actions listed below, along with the other programs identified in this Housing Plan, were developed to cumulatively further fair housing during the planning period and counteract the disparities and issues that were identified in the Fair Housing Assessment.

The timeframes and priority levels are added to ensure the implementation of these actions in a timely manner. The priority levels for these actions are defined as follows:
• High Priority contributing factors are those that have a direct and substantial impact on fair housing. and are core municipal functions that the City can control:
• Medium Priority factors are those that have a direct and substantial impact on fair housing, but the City has limited capacity to control their implementation; • Low Priority factors may have a direct and substantial impact on fair housing choice, but the City lacks capacity to address it, or the factor may have only a slight or indirect impact on fair housing choice.

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Table D-26
Contributing Factors and Meaningful Actions to Affirmatively Further Fair Housing Pyouram Artien Hum Specife Commitma Geographle Turpeting Fair Housing Education and Outreach
Contributing Factors:

Insufficient fair housing monitoring and limited outreach capacity Lack of resources for fair housing agencies and organizations • Limited understanding of fair housing laws
• Education and Outreach • Action 5.2: Fair • Direct fair housing inquiries to the • Medium priority/ • Citywide • Increase the distribution of Housing Services FHCOC December 2025 fair housing informational • Post and update information materials by 25%
annually regarding fair housing and • Increase the annual request FHCOC to conduct a number of Laguna Niguel
presentation every two years about
services available
• In cooperation with the FHCOC,
contact all low-income apartment
complexes annually to provide annually to ensure that any education and materials about the
Section 8 program including multi- • Request FHCOC conduct a lingual materials
• Publish and update fair housing presentation every two information on the City website and years about available via social media annually
• Contact all low-income
apartment complexes by
July 2025 and annually
information on the Section
• Education and Outreach • Action 5.3: Affirmatively • Promote Fair Housing Council • Medium priorityl • Citywide • Provide information on Fair December 2025 Housing Council programs,
on the City's website, newsletters programs, and transport and through social media services for persons with
disabilities: review annually
to ensure that any
March October 2023 D-83

THE CITY OF LAGUNA NIGUEL HOUSING
ACHORYARED CLUE geoma pare
attract renters and buyers of materials, links, and info diverse demographic backgrounds. provided are current
including race, ethnicity, income.
disability and familial status
• Develop an outreach plan and Vouchers and tenant rights materials to communicate the by December 2024
benefits of vouchers and tenant • Develop strategic plan b rights regarding just cause December 2024 anc
evictions, limitations on rent expand use of Housing
increases, and replacement Choice Vouchers by at
housing requirements if any least 5 per year
existing residential units would be
removed, based on State law
Housing Mobility Enhancement
Contributing Factors:
• Historical land use development patterns and zoning, environmental constraints, and lack of vacant land limit opportunities for larger and higher density project types • Current high cost of housing limits access to lower income households of all races/ethnicities Lack of affordable housing and need for greater access to opportunities • Community resistance to development
• Regional coordination affects transit services, funding sources, and allocation of housing resources including vouchers • Accessory Dwelling Units (ADUS) • Action 3.5: Encourage • Update the City's ADU Ordinance • High priority/ July • Citywide: target • Update ADU Ordinance by and SB 9 Units the development of • Monitor the production and 2024 marketing in higher July 2024 ADUs and SB 9 units affordability of ADUs twice during opportunity areas and in • Perform review of ADU throughout the City to the cycle to ensure the City is RCAAS expand housing meeting ADU production as
opportunities for all outlined in this Housing Element
income levels and and take action if projections are not consistent with Housing special needs groups not consistent
through increasing the • Conduct increased outreach and variety of housing types education on ADU and SB 9 unit/lot maintain ability to and encouraging ADUs split opportunities a by one aling and SB 9 units in higher
opportunity and RCAA • Continue to promote ADUs on the
City's website, social media, and at • Publicize opportunities for areas
City offices A DUS (ongoing)
• Promote SB 9 units and lot splits
on the City's website, social media. • Perform outreach to all and at City offices (100%) homeowner
• Research the development of a associations in higher
program that would provide low opportunity areas and
RCAAs to promote ADUs
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interest loans and grants to and SB 9 units annually
homeowners with household • Research ADU and SB 9
incomes of up to 80% of AMl to unit loan/grant program by develop ADUs and SB 9 units with December 2023 and
affordability restrictions on their establish a pilot program by propenty June 2024
• Expedite ADU permit processing • Expedite ADU permit
• Develop a one-stop shop dedicated processing (ongoing) ADU webpage that includes • Develop a one-stop shop
information and resource materials dedicated ADU webpage such as sample site plans to assist by December 2023
homeowners to priorilize issues in
building ADUS
• Homeless Assistance • Action 2.1: Support for • Continue to monitor the issue of • Medium priority/ • Citywide • Participate in meetings of persons experiencing homelessness December 2025 the Orange County homelessness • Participate in the Orange County Homeless Issues Task Homeless Issues Task Force as Force as they occur
they occur [ongoing)
• Allocate an appropriate level of • Annual CDBG allocations CDBG funding in relation to the • Annual monitoring and local need reporting throughout the
planning period (ongoing)
• Housing Choice Vouchers (Rental • Action 5.2: Partner with • Contact all low-income apartment • Medium priority/ • Citywide, with focus on • Contact all low-income Assistance) the Fair. Housing complexes annually to provide December 2025 relatively lower income apartment complexes by Council of Orange education and materials about the areas July 2025 and annually County (FHCOC) to Section 8 program including multi- thereafter to provide provide fair housing lingual materials information on the Section services 8 program
• Increase the annual
number of Laguna Niguel
residents assisted by the
FHCOC by at least 25%
• Housing Choice Vouchers (Rental • Action 5.3: Expand the • Develop an outreach plan and • Medium priorityl • Citywide • Develop an outreach plan Assistance) use of housing choice materials to promote Housing December 2025 and materials by end of vouchers in high Choice Vouchers December 2024
resource areas • Gain a better understanding of • Develop strategic plan by where overpayment and December 2024 and
overcrowding rates are highest in expand use of Housing the city, where vouchers are and Choice Vouchers by at
are not used, and how many least 5 per year
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THE CITY OF LAGUNA NIGUEL HOUSING
tenants could potentially qualify at
each multifamily property in order
to develop a strategic plan to
expand use of vouchers
• Inform voucher holders about
residential options in high-resource
areas
New Housing Choices and Affordability in Higher Opportunity Areas Contributing Factors:

Historical land use development patterns and zoning, environmental constraints, and lack of vacant land limit opportunities for larger and higher density project types Current high cost of housing limits access to lower income households of all races/ethnicities Lack of affordable housing and need for greater access to opportunities Community resistance to development
Regional coordination affects transit services funding sources, and allocation of housing resources including vouchers • Provide Housing Opportunities in • Action 1.2: Incentivize • Increase residential density and • High priority/ July • Gateway Specific Plan Post and maintain a curren Higher Opportunity Areas for all multi-family and mixed- floor area ratio when affordable 2024 area (northeast portion ventory of vacant sites i Members of the Community use development in the housing is provided in the Gateway of the City) the Gateway Specific Plan Gateway Specific Plan Specific Plan area
area • Allocate CDBG or other available
funding assistance to projects in
the Gateway Specific Plan area
that include multi-family units • Contact local developers targeted for extremely-low-income and publicize development households, as feasible opportunities within the
• Provide administrative assistance Gateway Specific Plan area to affordable housing developers in by December 2024 and at preparing grant applications least annually thereafter
• Post and maintain a current
inventory of vacant sites in the
Gateway Specific Plan area
suitable for multi-family residential
or mixed-use development on the
City website
• Contact local developers and
publicize development
opportunities within the Gateway
Specific Plan area at least once
each year
• Assist in facilitating subdivision of
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THE CITY OF LAGUNA NIGUEL HOUSING
Action Are Geograblic rooting
large parcels where necessary to
create building sites through
concurrent processing and project
coordination
• Provide Housing Opportunities in • Action 1.3: Outreach to • Contact the property owners of • High priority/ July • Citywide • Contact the property Higher Opportunity Areas for all develop vacant vacant properties identified in Table 2024 owners of identified vacan Members of the Community properties B-5 to assist development of the properties (Table B-5) by site for residential purposes July 2024 and annually
thereafter
• Provide Housing Opportunities in • Action 3.1: Density • Continue to implement State • High priority/ July • Citywide Encourage developers t Higher Opportunity Areas for all bonus provisions Density Bonus Law as amended 2024 tilize density bonus la Members of the Community from time to time
• Provide Housing Opportunities for • Action 3.2: Very-low- • Amend the Gateway Specific Plan • High priority/ July • Gateway Specific Plan • CoDece or 51, a testing Lower-Income Households in Higher and low-income units in to mandate that any public benefit 2024 area (northeast portion Opportunity Areas the Gateway Specific provided to achieve a density of of the City • By June 30, 2025, amend Plan area higher than 50 du/ac shall include a Gateway Specific Plan to provision of affordable housing mandate that any public benefit provided to achieve
a density of higher than 50
dulac shall include a
provision of affordable
housing
• Provide Housing Opportunities in • Action 3.3: Financial • Engage and assist developers • High priority/ July • Citywide, prioritizing • Outreach to developers Higher Opportunity Areas for Low- and regulatory seeking funding and/or tax credits 2024 assistance to projects annually and Moderate-income Households incentives for the for the construction of low-and located in higher development of moderate-income housing resource areas and in affordable housing for • Incentivize affordable housing RCAAS low- or moderate- development through modified
income households development standards, expedited
processing, or other financia
incentives for affordable housing
projects
• Provide administrative assistance
to developers of low- or moderate-
income projects
• Promote options for assistance to
developers on the City website
• Provide Housing Opportunities in • Action 3.4: Financial • Incentivize affordable housing • High priority/ July • Citywide, with a focus • Outreach to developers Higher Opportunity Areas for Special and regulatory development through modified on ELl households annually March October 2023 D-87

THE CITY OF LAGUNA NIGUEL HOUSING
Ges
Needs and Extremely-low-income incentives for the development standards and fee Households development of waivers
affordable housing for • Prioritize funding assistance for ELI special needs units
population groups and
extremely-low-income
(ELl) households
• Accessory Dwelling Units (ADUs) • Action 3.5: Encourage • See description under Housing • See description • See description under • See description under and SB 9 Units the development of Mobility Enhancement above under Housing Housing Mobility Housing Mobility ADUs and SB 9 units Mobility Enhancement above Enhancement above throughout the City, Enhancement
including higher above
opportunity areas, to
expand housing
opportunities for all
income levels and
special needs groups.
• Surplus Land • Action 3.9: Surplus • Review City-owned properties • High priority/ July • Citywide • Initial review by July 2024 City-owned land annually to identify any surplus 2024 and annually thereafter land that could be made available
for affordable housing development
• Distribute list of suitable sites to
regional affordable housing
developers
• Funding for Affordable Housing and • Action 3.10: Regional • Work cooperatively with the County • Medium priority! • Citywide • Annual consultation Permanent Supportive Housing housing bond program of Orange and other local cities to December 2025 create a regional housing bond
program to help fund affordable
housing and permanent supportive
housing
• Development of Affordable Housing • Action 3.11: • Explore and pursue strategies to • High priority/ July • Citywide • December 2023 Development of facilitate housing development on 2024
affordable housing on religious, institutional and quasi- religious, institutional institutional lands, and adaptive and quasi-institutional, reuse of underutilized properties for and underutilized affordable housing
properties
Place-Based Strategies for Community Preservation and Revitalization Contributing Factors:
• Age of housing stock
March October 2023 D-88

THE CITY OF LAGUNA NIGUEL HOUSING
CUON ARUD Frogrun Action Kome
Cost of repairs/rehabilitation
• Lack of affordable housing and need for greater access to opportunities • Public Investment in Specific • Action 1.2: Incentivize • Increase residential density and • High priority/ July • Gateway Specific Plan • Post and maintain a current Neighborhoods, Including Services multi-family and mixed- floor area ratio when affordable 2024 area (northeast portion inventory of vacant sites in and Amenities use development in the housing is provided in the Gateway of the City) the Gateway Specific Plan Gateway Specific Plan Specific Plan area
area • Allocate CDBG or other available
funding assistance to projects in
the Gateway Specific Plan area
that include multi-family units • Contact local developers targeted for extremely-low-income and publicize development households, as feasible
• Provide administrative assistance ateway Specific Plan are to affordable housing developers in y December 2024 and preparing grant applications
• Post and maintain a current
inventory of vacant sites in the
Gateway Specific Plan area
suitable for multi-family residential
or mixed-use development on the
City website
• Contact local developers and
publicize development
opportunities within the Gateway
Specific Plan area at least once
each year
• Assist in facilitating subdivision of
large parcels where necessary to
create building sites through
concurrent processing and project
coordination
• Public Investment in Specific • Action 3.2: Very-low- • Amend the Gateway Specific Plan • High priority/ July • Gateway Specific Plan • Complete pro-forma testing Neighborhoods, Including Services and low-income units in to mandate that any public benefit 2024 area (northeast portion by December 31, 2023 and Amenities the Gateway Specific provided to achieve a density of of the City) • By June 30, 2025, ament Plan area higher than 50 dulac shall include a Gateway Specific Plan to provision of affordable housing. mandate that any public benefit provided to achieve
a density of higher than 50
du/ac shall include a
provision of affordable
March October 2023 D-89

THE CITY OF LAGUNA NIGUEL HOUSING
Action Alba Potent Astonitte | Geographic Funate
housing
• Public Investment in Specific • Action 4.1: Conserve • Monitor assisted units to assess • High priority/ July • Assisted low-and • Monitor status of assisted Neighborhoods, Including Services existing assisted low- the risk of conversion to market 2024 moderate-income units annually and Amenities and moderate-income rate households (census • Three-year, twelve-month, housing units • Offer financial incentives to tracts 423.26 and and six-month coordination encourage owners of at-risk 423.34) with at-risk property owners properties to maintain their rental and OCHCS
units as affordable housing
• Allocate a portion of CDBG funds
to assist in extending affordability
covenants for at-risk units
• Provide educational materials to
tenants of properties with expiring
covenants regarding options for
securing other affordable housing
• Code Compliance for Preservation of • Action 4.2: Property • Continue the City's active property • High priority/ July • Citywide, with a focus • Conduct windshield Housing Stock maintenance maintenance program run by the 2024 on non-HOA and older surveys covering all Code Enforcement Division of the multifamily units (census properties in the City every Community Development tracts 423.29, six months
Department 423.15,423.35, and • Seek CDBG funding to
• Seek CDBG funding for housing 423.34) facilitate rehabilitation of 15 rehabilitation housing units during the
planning period
• Priority Capital Improvement Project • Action 4.4: Capital • Identify and implement at least one • Moderate priority/ • Areas fine dyerity Complin one captal Investments Improvement Program capital improvement project Annual lower income, and/or annually that is located in an area identification of areas with higher target areas annually of higher diversity and/or lower capital proportions of special income areas improvement needs populations
project
Displacement Protection
Contributing Factors:
• Displacement risk due to economic pressures
Increasing rents and home prices
Access to assisted housing units (housing choice vouchers • Preservation/Conservation of • Action 4.1: Conserve • Monitor assisted units to assess • High prioritv/ July • Assisted low- and • Monitor status of assisted Affordable Housing existing assisted low- the risk of conversion to market 2024 mouserti census units annually and moderate-income rate • Three-year, twelve-month,
housing units • Offer financial incentives to tracts 423.26 and and six-month coordination encourage owners of at-risk 423.34) with at-risk property owners March October 2023 D-90

THE CITY OF LAGUNA NIGUEL HOUSING
ation Arell -Program Action Hom Snacific Commibnan Geomanhle Trag properties to maintain their rental and OCHCS
units as affordable housing
• Allocate a portion of CDBG funds
to assist in extending affordability
covenants for at-risk units
• Provide educational materials to
tenants of properties with expiring
covenants regarding options for
securing other affordable housing
• Housing Rehabilitation • Action 4.2: Property • Continue the City's active property • Seek funding • Areas with older • Seek CDBG funding to maintenance maintenance program run by the annually; assist 15 housing stock, higher facilitate rehabilitation of 15 Code Enforcement Division of the housing units proportions of senior housing units during the Community Development annually residents, and/or areas lanning period; with a Department east 25% in geographi
• Seek CDG funding for housing dio a burdenpotions target areas rehabilitation residents (tenants or
• Prioritize emergency repairs so that owners)
households with immediate/urgent
needs (water heater replacement,
leaking roof, etc.) to maintain a
livable unit can be assisted.
• Tenant Rights and Protection • Action 5.2: Fair • Direct fair housing inquiries to the • Medium priority/ • Citywide • Increase the distribution of Housing Services FHCOC December 2025 fair housing informational • Post and update information materials by 25%
annually regarding fair housing and • Increase the annual request FHCOC to conduct a number of Laguna Niguel
presentation every two years about residents assisted by the services available FHCOC by at least 25%
• In cooperation with the FHCOC. • Provide fair housing contact all low-income apartment information and review omplexes annually to provide nnually to ensure that ar
education and materials about the aterials, links, and in Section 8 program including multi- provided are current lingual materials • Request FHCOC conduct a
Publish and update fair housin resentation every tw
formation on the City website an ears about availabl
via social media annually • Contact all low-income
apartment complexes by
July 2025 and annually
March October 2023 D-91

THE CITY OF LAGUNA NIGUEL HOUSING
I 9999
thereafter to provide
information on the Section
8 program
• Tenant Rights and Protection • Action 5.3: Affirmatively • Promote Fair Housing Council • Medium priority/ • Citywide • Provide information on Fair Furthering Fair Housing programs and expand knowledge December 2025 Housing Council programs, of first-time homebuyer programs first-time homebuyer
on the City's website, newsletters programs, and transport and through social media services for persons with
• Promote affirmative marketing disabilities; review annually plans in all new housing materials, links, and info
developments that are designed to
attract renters and buyers of provided are current
diverse demographic backgrounds. • Develop an outreach plan including race, ethnicity, income, regarding Housing Choice disability and familial status Vouchers and tenant rights • Develop an outreach plan and by December 2024
materials to communicate the • Develop strategic plan by benefits of vouchers and tenant December 2024 and
rights regarding just cause expand use of Housing
evictions, limitations on rent Choice Vouchers by at
least 5 per vear
increases, and replacement
housing requirements if any
existing residential units would be
removed, based on State law
March October 2023 D-92

THE CITY OF LAGUNA NIGUEL HOUSING
Cor
Expand Fair Heusing Some residents who are in need of fair housing Citywide • Continue-directing fair housing inquiries to the Fair Housing Council of Orange Outreach resources, including low-income households, persons Gounty. (Program 5) with disabilities, racial/ethnic minerities and other •Post and update information annually regarding fair housing and request FHCOG protected classes, may be unaware of the fair housing to-cenduct a presentation every twe years aboul-services available. (Pregram 5) resources that are available. Although information • In-coeperation with the Fair Housing Council of Orange County, contact all low- about fair housing services is posted on the City income apartment complexes annually to provide education and materials about website and in public offices, more could be done to the Section 8-program including multi-lingual materials. (Program 5) make this information available: •Publish and update-links-to fair housing information on the City website and via social media annually. (Program 5)
Intended Outcomes:

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 nonprefits, property owners and community members will be compiled for addilional future outreach. The City will seek to increase the annual number of Laguna Niguel residents assisted by the Fair Housing Council by at least 25% Improve Access-to Lack of access to-opportunity due to high housing Gitywide Several of the programs in the Housing Plan are intended to improve access te Opportunity and Mobility costs is a significant contribuling factor to fair housing epportunity, facilitate mobility for protected classes, and address housing throughout the region. Most areas of Laguna Niguel affordability. Strategies include:
are-rated "Moderate," "High" or "Highest" resource in • Continue to support the provision of housing for persons with disabilities through HCD/TCAC Opportunity Maps. Increasing housing updates to zoning regulations in compliance-with fair housing law by December availability in areas with good opportunity make it 2023. (Program 2) easier for lower income households-to access the • Encourage and-facilitate housing development commensurate-with the City's types of services and amenities- that further economic identified housing need in the RHNA allocation on a continuous basis. (Programs and social mobility: 183)
•Review Gity-owned properties annually and 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)
• Work with Orange County Housing & Community Services to conserve existing affordable housing units at-risk of converting to market rate. (Program 4) • 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. (Program 5)
• Affirmative-Marketing and Regional Registries: Require, provide incentives and utilize other-strategies to promote affirmative marketing plans in all new housing developments. The affirmative marketing plans will consider regional housing registries and ensure marketing materials for new developments are designed to March October 2023 D-93

THE CITY OF LAGUNA NIGUEL HOUSING
attract renters and buyers of diverse demographics, including persons of any race, ethnicity, income, disability and familial status:
• In collaboration with OGHA, expand the use of housing choice-vouchers in high resource areas through the following actions (Program 5):
- 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 cily, where vouchers are and are not used, and how many tenants could potentially qualify at each multifamily properly in target areas 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:
- Inferm voucher holders about their residential options in high-resource-areas. • Expand production of accessory dwelling units in high-resource single-family neighborhoods. (Program 3)
• Explore and pursue strategies to facilitate housing development on religious; properties for afferdable housing. (Program 3)
• In cooperation with the Orange Gounty Transportation Authority, provide community education regarding transport services for persons with disabilities. (Program 5)
Intended Outcomes:

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

Specific objectives and detailed outcomes are described in each program in the Housing Plan.

March- October 2023 D-94
EXHIBIT 2
Summary of HCD Comments and City
Responses
Response to HCD Findings on Laguna Niguel's Adopted 2021-2029 Housing Element Finding How the Comment Was Addressed P. #
A. Housing Needs, Resources, and Constraints

1. Affirmatively furthering] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2...shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) Local to Regional Patterns of Income, Highest Resource and Concentrated Areas • Added to analysis of RCAAs (Appendix D, Fair Housing D-34 to D-35; of Affluence (RCAA): The element briefly mentions large areas of the City are Assessment), including comparison of the City to other areas Also see Table D- concentrated areas of affluence, high or highest median income and highest of southern Orange County, correlation with TCAC opportunity 26 (p. D-83) resource category. As a result, the element should include specific analysis of areas, development patterns and other local data/knowledge, these areas to guide an appropriate policy response. The analysis should at least and programs to target & integrate RCAAs (including, but not address evaluating trends, conditions, comparisons to other areas of the region limited to, Actions 1.2, 1.3, 3.1, 3.2, 3.3, 3.4, 3.5, 3.9, 3.10, and incorporate local data and knowledge and other relevant factors such as 3.11) zoning, land use and investments. The element must add or modify meaningful programs based on the outcomes of this analysis.

Disproportionate Housing Needs: The element includes some general includes some general. on but Added to Appendix D (Fair Housing Assessment) on D-79; information on persons experiencing homelessness and housing conditions but Homelessness, including concentrations of persons D-73 & p. 10 should also evaluate those needs, impacts and patterns within the City, such as experiencing homelessness and access to areas of higher need. For homelessness, the element should examine patterns of transportation/services. need or areas with higher concentrations of persons experiencing homelessness, • Added to Appendix D (Fair Housing Assessment) on including access to transportation and services. For housing conditions, the substandard housing conditions, groups more likely to be element should discuss any areas of potentially higher needs of rehabilitation affected, program to address maintenance and replacement. The element should utilize local data and knowledge such as • Added areas with housing condition issues to Housing Stock service providers and code enforcement officials to assist this analysis. Characteristics section of Housing Needs Assessment Contributing Factors to Fair Housing Issues: Based on the outcomes of a Added Table D-26, Contributing Factors and Meaningful D-83 to D-92 complete analysis, the element should re-assess and prioritize contributing Actions to Affirmatively Further Fair Housing factors to fair housing issues.

Goals, Actions, Milestones and Metrics: As noted above, the element must • Added new and updated relevant existing programs/actions 52 to 62 include a complete assessment of fair housing. Based on the outcomes of that based on assessment of fair housing conditions (see Section V, analysis, the element must add or modify programs. Goals and actions must Housing Plan) specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitments, milestones, geographic targeting, and metrics or numerical targets and, as appropriate, must address housing mobility 1 Response to HCD Findings on Laguna Niguel's Adopted 2021-2029 Housing Element Finding How the Comment Was Addressed P.#
enhancement (more choices and affordability across geographies), new housing choices and affordability in higher opportunity and income areas (e.g., missing middle housing types), place-based strategies for community preservation and revitalization and displacement protection. Particularly, the element must include significant and meaningful action to enhance housing mobility.

2. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality's housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city's or county's share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory. (Gov. Code, § 65583, subd. (c)(1).)
Large Sites: The element was revised to discuss the availability of • Updated sites inventory (Appendix B); large site removed B-11 to B-28 infrastructure for the City's large sites and explains some large sites will require additional grading. However, the analysis should address the affordability of development examples. In addition, the element must identify the location of the four-acre site in relationship to the larger 26.8 acre site and must further analyze the likelihood that the smaller four-acre site meant for housing affordable to lower-income households can be developed within the planning period separate from the larger site, that the slope constraint and other environmental issues will not impede the development of housing affordable to lower-income households. Based on the outcome of the analysis, the element should add or modify programs to encourage parceling at appropriate sizes (e.g., 1-10 acres) and housing affordable to lower income households, including monitoring and taking appropriate steps if the sites do not progress as anticipated.

Realistic Capacity: The element was revised to describe its assumed density Updated Realistic Capacity section (Appendix B) for vacant and B-13 to B-28 ranges. However, several revised tables in the housing element (e.g., Tables nonvacant B-3 and B-5) provide information inconsistent with other parts of the • Clarified that the minimum densities of 50 dwelling units per element which clarify a density range of 50 to 120 dwelling units per acre. acre will be the basis for assumptions of realistic capacity for The element should clarify, as discussed on the April 26, 2023 call, that the nonvacant sites in the Gateway minimum densities of 50 dwelling units per acre, will be the basis for its assumptions of realistic capacity. In addition, the element still must include an analysis of all relevant land use controls that may affect the City's effort to 2 Response to HCD Findings on Laguna Niguel's Adopted 2021-2029 Housing Element Finding How the Comment Was Addressed P.#
reach maximum densities. Please see HCD's prior review for additional information.

Suitability of Nonvacant Sites: The element was revised to provide examples • Updated Sites (removed large site) and added robust B-16 to B-18 of recent development on nonvacant sites including sites with automotive discussion of the Suitability of Nonvacant Sites uses. However, the element should specifically discuss the prior uses on recent development in a manner that supports the assumptions in the inventory. For example, the element generally mentions prior uses on the site of the Apex Laguna Niguel project but should also describe the prior improvement to land value ratio, age of structure and existing versus allowable floor area. In addition, the element should evaluate the extent existing uses impede additional development including analyzing existing leases or contracts or other conditions that would prevent redevelopment of sites.

In addition, for your information, the element relies on nonvacant sites to accommodate 50 percent or more of the housing needs for lower-income households, which triggers requirements to make findings based on substantial evidence that the existing use is not an impediment and will likely discontinue in the planning period. While the resolution of adoption includes a finding, this finding does not appear to be based on substantial evidence and any changes to the analysis should be reflected in future re-adoption of the element, if necessary.

Electronic Sites Inventory: Although the City has submitted electronic sites N/A - Resubmitting revisions as part of re-adoption inventory as described in the prior review, if any changes occur, the City should submit revisions as part of any future re-adoption or submittal Programs: As noted above, the element does not include a complete site • Updated/revised programs/actions (see Section V, Housing 52 to 62 analysis; therefore, the adequacy of sites and zoning were not established. Plan) Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types

3. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing.....including.....local processing and permit procedures. (Gov. Code, § 65583, subd. (a)(5).) Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities... (Gov. Code, § 65583, subd. (c)(3).) 3 Response to HCD Findings on Laguna Niguel's Adopted 2021-2029 Housing Element Finding How the Comment Was Addressed P.#
Processing and Permit Procedures: The element was revised to describe average • Added a description and analysis of the City's Community 44 to 45; approval timelines. However, the element should still evaluate approval findings Design Guidelines 58 for impact on approval certainty and describe its strategy for mitigating the • Added Action 3.12 subjective components of its review (beyond complying with SB 35), including the City's design review findings. Based on the outcomes of this analysis, the element should add or modify programs to address and remove or mitigate any identified constraints.

4. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... Gov. Code, 565583, subd. (c).) To have a beneficial impact in the planning period and achieve the goals and • Actions 2.4, 3.3, 3.4, 3.5, and 4.1 updated to address comment 54 to 58 objectives of the housing element, programs should have specific commitment and discrete timing (e.g., at least annually, by 2025), as follows:
• Action 2.4 (Code Amendments for Group Homes): The Program should commit to allow group homes for seven or more persons in all zones allowing residential uses with objectivity to facilitate approval certainty and similar to other residential uses of similar form in the same zone.
• Action 3.3 (Assist the Developers): The Program should commit to annual outreach with affordable housing developers to identify development opportunities.
• Action 3.4 (Extremely Low-income and Special Needs Households): In addition to annual outreach, the Program should commit to identifying development opportunities.
• Action 3.5 (Accessory Dwelling Units (ADU)): While the Program commits to evaluate progress toward ADU construction goals and revise policies as appropriate in 2025, this evaluation and revision should take place at least twice in the planning period. In addition, the Program should commit to monitor affordability and should commit to rezoning, if necessary, to maintain adequate sites to accommodate the regional housing needs allocation (RHNA) by income group throughout the planning period.
4 Response to HCD Findings on Laguna Niguel's Adopted 2021-2029 Housing Element Finding How the Comment Was Addressed P.#
• Action 4.1 (At-risk Preservation): The Program should commit to carry out noticing requirements (e.g., three years, twelve months and six months) and coordinate with qualified entities that can preserve and manage at-risk units.

5. Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).)
The element was revised to include construction, rehabilitation, and • Quantified objectives and Action 4.1 63 & 58 conservation goals for its housing supply. However, the element should consider conservation objectives beyond at-risk preservation to better reflect the City's targets to conserve and improve the affordable housing stock, particularly for lower-income households, including extremely low-income households. For example, these quantified objectives could consider the many actions intended to mitigate displacement risk.

Attachment B
HCD Letter of May 22, 2023
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
sacramento, cA 9 Avenue, Suite 500
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
May 22, 2023
Tamara Letourneau, City Manager
City of Laguna Niguel
30111 Crown Valley Parkway
Laguna Niguel, CA 92677
Dear Tamara Letourneau:

RE: City of Laguna Niguel's 6th Cycle (2021-2029) Adopted Housing Element Thank you for submitting the City of Laguna Niguel's (City) housing element adopted March 21, 2023 and received for review on March 23, 2023. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review. The review was facilitated by communications with the housing element update team.

The adopted housing element addresses many statutory requirements described in HCD's January 19, 2022 review; however, additional revisions are necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq.), as follows:

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2...shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c) (10)(A).)
Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) Local to Regional Patterns of Income, Highest Resource and Concentrated Areas of Affluence (RCAA): The element briefly mentions large areas of the City are concentrated areas of affluence, high or highest median income and highest resource category. As a result, the element should include specific analysis of these areas to guide an appropriate policy response. The analysis should at least address evaluating trends, conditions, comparisons to other areas of the region and incorporate local data and knowledge and other relevant factors such as Tamara Letourneau, City Manager

Page 2 ends

Laguna Niguel City CouncilDecember 5, 2023

Laguna Niguel City Council
December 5, 2023