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Attachment C- HCD Letter Dated January 18, 2022.pdf

Long Beach City Council
February 8, 2022

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Attachment C- HCD Letter Dated January 18, 2022.pdf
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February 8, 2022
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Long Beach City Council
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
J
anuary 18, 2022
Os
car Orci, Director
Department of Development Services
City of Long Beach
411 W. Ocean Blvd.

Long Beach, CA 90802
De
ar Oscar Orci:

RE:

City of Long Beach’s Revised 6th Cycle (2021-2029) Draft Housing Element Thank
you for submitting the City of Long Beach’s (City) revised draft element received for review on November 19, 2021, along with revisions received on January 4, 2022.

Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on January 4, 2022 with Advance Planning Officer Alison Spindler-Ruiz, Planning Bureau Manager; Patricia Diefenderfer, Planner; Alejandro Sanchez-Lopez, and consultants David Bergman, Lisa Wise and Veronica Tam. In addition, HCD considered comments from Abundant Housing L.A. pursuant to Government Code section 65585, subdivision (c).

The dr
aft element addresses many statutory requirements described in HCD’s September 17, 2021 review; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The revisions needed are as follows:

1. A
ffirmatively 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).)
P
romote 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).) Site Inventory: The element is revised to adjust the site inventory to accommodate roughly 350 additional units in the City’s Founding and Contemporary Neighborhood (FCN) PlaceType, in the City’s higher-resource Attachment C
Oscar Orci, Director

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eastern neighborhoods. The revised text in Appendix F clarifies this and reports data on the subject, but still does not clearly describe or analyze the impact. For example, a majority of sites are located in lower-resource, high-renter areas with large minority populations; the element acknowledges this and states that it will improve fair housing conditions, but it should provide analysis to formulate appropriate policies and programs. A complete analysis should fully assess how the site inventory is expected to improve and/or exacerbate fair housing conditions. This analysis could consider topics such as existing or proposed anti- displacement policies and place-based investments, and how such strategies will improve fair housing conditions when paired with the identified sites.

Local Data and Knowledge: The element now includes discussion related the City’s Racial Equity and Reconciliation Initiative, including a community engagement process and survey. In addition, from the conversation, HCD understands the City has other local data and knowledge from past similar efforts. The element should incorporate this information into the analysis of affirmatively furthering fair housing (AFFH) and utilize findings and resolution to guide policies and actions.

Other Relevant Factors: The element includes some information on past exclusionary practices such as restrictive covenants and zoning laws but should address other relevant factors such as transportation investment, past investment strategies and their effectiveness, demographic trends or other information that may have impeded housing choices and mobility. This information should be incorporated into the analysis of AFFH to guide policies and actions.

Goals, Actions, Milestones and Metrics: As noted above, the element does not include a complete analysis of AFFH. Based on a complete analysis, the element must add or revise programs. In addition, the element has been revised to strengthen several existing actions, such as the City’s anti-displacement programs. However, the element must still add or revise programs to include actions that are transformative, meaningful, and specific. These programs should respond directly to the contributing factors and other findings from the assessment of fair housing. Programs must also include metrics and milestones for targeting meaningful AFFH outcomes and evaluating progress and effectiveness of programs on fair housing results.

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).)

Oscar Orci, Director

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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 ... Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels... (Gov.

Code, § 65583, subd. (c)(1).)

Realistic Capacity: As noted in the prior review, the inventory relies on zones that allow 100 percent nonresidential uses, and the calculation of capacity should account for the possibility of 100 percent nonresidential development. While the element includes some discussion on mixed-use development trends, the analysis and calculation of residential capacity must still account for the likelihood of 100 percent nonresidential uses. For more information, please refer to HCD’s September 17, 2021 review.

Nonvacant Sites: As noted in HCD’s prior review, the element must analyze the extent to which existing uses may impede additional residential development and include an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development. While the element now includes a variety of research on development trends, particularly for existing commercial uses, it must still address the extent existing uses impede additional development. For example, the element notes several factors to screen out a significant number of sites but could also support those factors based on development trends and relate those trends to identified sites. Please see HCD’s prior review for additional information.

In addition, the housing element relies upon nonvacant sites to accommodate more than 50 percent of the Regional Housing Needs Allocation (RHNA) for lower-income households. For your information, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA.

Small Sites: As noted in HCD’s prior review, the element must demonstrate the suitability of sites to encourage developments affordable to lower-income households. The element now states 39 percent of all residential entitlement included a merger or consolidation; therefore, consolidation will not be a significant obstacle. However, the analysis should still address the affordability of past consolidation, similarities of recent trends and identified sites, common Oscar Orci, Director

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ownership, number of single parcel sites and anticipated number of units and add or modify programs based on the outcomes of a complete analysis.

Zoning for a Variety of Housing Types (Emergency Shelters): The element now indicates over 2,500 acres available in zones that permit emergency shelters without discretionary action, including proximity to transportation and services.

However, the element should also discuss typical parcel sizes, the presence of reuse opportunities and any conditions inappropriate for human habitability, as noted in the prior review.

Programs: As noted above, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established.

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. 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, § 65583, subd. (c).)

While the element revises several programs with specific commitment and discrete timelines, the following actions must still be revised:

• Action 2.1.5 (Promote Incentives) should commit to how often (e.g., at least quarterly) the City will promote incentives.
• Action 2.1.8 (Streamlined Ministerial Review) should commit to when the City will assess and delegate to streamlined ministerial reviews. • Action 3.1.3 (Collaborate with Public and Non-profit Agencies) should commit to how often the City will collaborate (e.g., at least twice a year) upon initiating the program.

The element will meet statutory requirements of State Housing Element Law once it has been revised and adopted to comply with the above requirements pursuant to Government Code section 65585.

As a reminder, the City’s 6th cycle housing element was due October 15, 2021. As of today, the City has not completed the housing element process for the 6th cycle. The City’s 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance.

Oscar Orci, Director

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For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), then any rezoning to accommodate the RHNA, including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i).

As a reminder, pursuant to Government Code section 65583.3, subdivision (b), the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory. Please see HCD’s housing element webpage at
https://www.hcd.ca.gov/community-development/housing-element/index.shtml for a
copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance. Please note, upon adoption of the housing element, the City must submit an electronic version of the sites inventory with its adopted housing element to
[email protected].

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criterion. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs, and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
http://opr.ca.gov/docs/OPR_Appendix_C_final.pdf
and
http://opr.ca.gov/docs/Final_6.26.15.pdf.

Oscar Orci, Director

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HCD is committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Colin Cross, of our staff, at [email protected] .

Sincerely,

Paul McDougall
Senior Planning Manager

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