Agenda Item
City Council
Item #: 10.4. 2/8/2022 File #: 22-0024
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Susan Galvan, Interim Community Development Director
1. SUBJECT
Public Hearing to consider General Plan Amendment No. 2022-0001; City of Orange 2021-2029 Housing Element Update.
2. SUMMARY
A request to adopt an updated General Plan Housing Element in accordance with State law. The updated Housing Element replaces the 2014-2021 Housing Element in its entirety. The updated Housing Element identifies and analyzes existing and projected housing needs, plans for the long- term provision of housing for a variety of household income levels, and articulates the City’sofficial policies for the preservation, conservation, improvement, and production of housing within the City for the 2021 through 2029 planning period.
3. RECOMMENDED ACTION
Adopt City Council Resolution No. 11378. A Resolution of the City Council of the City of Orange approving General Plan Amendment No. 2022-0001 adopting the City of Orange 2021-2029 General Plan Housing Element.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community. c. Support and enhance attractive, diverse living environments.
6. DISCUSSION AND BACKGROUND
The Housing Element is one of the chapters or “elements”of the City’sGeneral Plan required by State law, establishing the City’sofficial policies related to housing. Pursuant to State law, it is also required to plan to accommodate new housing development consistent with the City’s Regional Housing Needs Assessment allocation.
The Housing Element was last updated in January 2014 and covered the 2014-2021 planning period.
State law requires the Housing Element be updated to cover the 2021-2029 planning period within 120 days of the October 15, 2021 deadline (February 12, 2022). If the City adopts the Housing Element Update by this deadline and it is certified by the State Department of Housing and City of Orange Printed on 2/3/2022Page 1 of 5
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Item #: 10.4. 2/8/2022 File #: 22-0024
Element Update by this deadline and it is certified by the State Department of Housing and Community Development (HCD) (i.e., deemed in compliance with State requirements) the Housing Element will not need to be updated for another eight years. If the City does not adopt the Housing Element by the deadline, or if the adopted Housing Element is not certified by the HCD, the City will continue to work with HCD to gain compliance.
If not adopted or certified, the City could be subject to legal challenges, become ineligible for certain State funding programs, be mandated to utilize a ministerial review process for entitling housing projects, or have its authority to issue building permits suspended.
Given the complex housing issues confronting California, the State has set forth high expectations for municipalities to put policies and programs in place that result in housing production at a range of affordability levels, with particular interest in housing for Very Low and Low Income households.
Draft Housing Element Content
The City of Orange 2021-2029 General Plan Housing Element identifies and analyzes the existing and projected housing needs of the Orange community and articulates the City’spolicy actions for the preservation, conservation, improvement, and production of housing units in the city. The City has been tasked by HCD through a process called the Regional Housing Needs Assessment (RHNA) to accommodate 3,936 dwelling units at varying affordability levels through new construction, development of Accessory Dwelling Units, and conservation of units at risk of converting from affordable to market rate units during the 2021-2029 timeframe. Details about the RHNA process are outlined in Attachment 3.
The Housing Element addresses State requirements as detailed in Attachment 3. The Housing Plan (Section 4) of the Housing Element update establishes four central goals supported by 31 policy actions to address the City’s housing needs. These goals include:
· Providing high quality housing stock and neighborhoods · Accommodating all income levels of the City’s RHNA allocation · Ensuring maintenance, preservation, and development of housing · Providing equal housing opportunities for all
Through implementation of the policy actions and the identification of candidate housing sites within the adequate sites analysis, the Housing Element demonstrates that the City is providing substantive opportunities and making a good-faith effort to address the housing needs of the community consistent with State law.
Key Policy Action Changes from Previous Housing Element Removed:
Certain policy actions from the 2014-2021 Housing Element have been deleted as they have either been accomplished or are no longer relevant including:
· Process annexation of the East Orange General Plan area (portions of Santiago Hills II Irvine Company property that is now dedicated open space).
· Develop an Affordable Housing Toolkit for the City’s website (completed). · Balance housing production with needs of local employers (completed through the entitlement City of Orange Printed on 2/3/2022Page 2 of 5
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Item #: 10.4. 2/8/2022 File #: 22-0024
· Balance housing production with needs of local employers (completed through the entitlement of hundreds of housing units within proximity to Children’sHospital Orange County, St. Joseph Hospital and UC Irvine Medical Center).
Added:
· Eliminate discretionary review process for projects on opportunity sites where at least 20% of units are affordable to low income households through establishing objective development and design standards for such projects.
· Subsidize application processing fees for residential development where all units are affordable to low and very low income households.
· Evaluate planning and development review process for streamlining opportunities. · Assist property owners with Accessory Dwelling Units (ADU). · Track ADU affordability.
· Provide local water and sewer service providers a copy of the adopted Housing Element, and collaborate on prioritizing services for new residential development. · Update the General Plan Safety Element to address updated State wildland fire and flood information.
· Integrate environmental justice content into the General Plan in compliance with SB 1000 in order to avoid concentrations of socio-economically disadvantaged populations in areas of the city with environmental challenges (exposure to sources of pollution such as transportation corridors and industrial uses).
· Conduct outreach efforts throughout the 2021-2029 timeframe to gather community input related to development of, and access to, housing with a focus on under-represented communities.
· Continue to further fair housing by taking actions to address barriers that restrict access to housing opportunities, and address discrimination and patterns of socio-economic segregation.
· Update the Density Bonus Ordinance to bring into alignment with current State law. · Update the Residential Care Facilities Ordinance to bring into alignment with current State law related to facilities with 7+ residents.
· Update the Orange Municipal Code to comply with the provisions of the State Farmworker and Employee Housing Act requirements.
Public Outreach
As part of the Housing Element Update process, the City conducted extensive public outreach activities beginning in 2019 including virtual stakeholder meetings and workshops, and an online survey. A public review draft of the Housing Element was made available from May 21 through June 21, 2021 prior to sending the document to HCD for its review and comment. More detailed City of Orange Printed on 2/3/2022Page 3 of 5
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Item #: 10.4. 2/8/2022 File #: 22-0024
21, 2021 prior to sending the document to HCD for its review and comment. More detailed information about the public outreach process and community feedback is provided in Attachment 3 and Appendix C of the draft Housing Element Update (Attachment 4).
7. ANALYSIS AND STATEMENT OF THE ISSUES
Issue 1: RHNA and Housing Opportunity Sites
For the 2021-2029 Housing Element cycle, the City of Orange is responsible for demonstrating the ability to construct 3,936 RHNA units, or 2% of the countywide allocation (183,861 units). The units do not have to be constructed if the market does not choose to do so, but the Housing Element must demonstrate that there is viable zoning capacity to build the allocated units. The RHNA also assigns the housing unit need by household income level. The affordability breakdown is provided below:
City of Orange Housing Needs 2021-2029
Income Category (% of County Area Median
Income)
Number of Units Percent
Very Low (21 to 50%) 1,067 27.1%
Low (51 to 80%) 604 15.3%
Moderate (81 to 120%) 677 17.2%
Above Moderate (over 120%) 1,588 40.4%
Total 3,936 100%
Note: The 2021 area median income in Orange County is $106,700.
Housing Opportunity Sites
The City’sGeneral Plan land use and zoning designations provide adequate development capacity to accommodate the RHNA in various locations of the city. All of the identified sites represent under- utilized property that either has the potential for infill development, or the possibility of entire site redevelopment. Many sites are located in areas with Urban Mixed Use or Neighborhood Mixed Use zoning (Uptown Orange, West Katella Avenue and South Main Street), while other sites are in transition with pending or active development applications that include housing. A number of housing units are also anticipated to be produced in the form of Accessory Dwelling Units or Junior Accessory Dwelling Units. Housing Opportunity Sites and likely development scenarios are presented in Appendix B of the Housing Element Update.
Summary of RHNA Status and Sites Inventory
Extremely Low/ Very Low
Income
Low Income Moderate
Income
Above
Moderate
Income
Total
2021-2029 RHNA1,067 604 677 1,588 3,936
RHNA Credit (Units Built)-- -- -- -- --
Total RHNA Obligations1,067 604 677 1,588 3,936
Sites Available
Residential Zones0 0 0 81 81
Neighborhood Mixed Use (NMU-24)16 4 114 0 134
Urban Mixed-Use (UMU)1,025 478 618 1,696 3,817
Total Potential Capacity Based on
Existing GP and Zoning
1,041 482 732 1,777 4,032
Accessory Dwelling Unit Production80 137 96 7 320
Total Sites Available1,121 619 828 1,784 4,352
Potential Unit Surplus+54 +15 +151 +196 +416
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Item #: 10.4. 2/8/2022 File #: 22-0024
Summary of RHNA Status and Sites Inventory
Extremely Low/ Very Low
Income
Low Income Moderate
Income
Above
Moderate
Income
Total
2021-2029 RHNA1,067 604 677 1,588 3,936
RHNA Credit (Units Built)-- -- -- -- --
Total RHNA Obligations1,067 604 677 1,588 3,936
Sites Available
Residential Zones0 0 0 81 81
Neighborhood Mixed Use (NMU-24)16 4 114 0 134
Urban Mixed-Use (UMU)1,025 478 618 1,696 3,817
Total Potential Capacity Based on
Existing GP and Zoning
1,041 482 732 1,777 4,032
Accessory Dwelling Unit Production80 137 96 7 320
Total Sites Available1,121 619 828 1,784 4,352
Potential Unit Surplus+54 +15 +151 +196 +416
The sites identified as candidate housing sites are anticipated to develop at a range of densities and affordability levels. The City anticipates continuing its work with local affordable housing developers to bring forward affordable/workforce housing projects meeting varied housing needs. Additionally, staff expects that the types of State and regional funding programs available for housing will continue to evolve, providing expanded creative financing options for affordable housing development.
Housing development, whether market rate or affordable, is largely dependent on the non-profit and private development community and the economy. The City will support and encourage the development of affordable and workforce housing projects on sites contemplated as candidate housing sites, as well as on parcels that had not been anticipated for infill residential development.
Issue 2: HCD Review
Staff submitted the Draft Housing Element for HCD review in July 2021. HCD provided comments to the City in September 2021 which are contained in Attachment 2 of the Planning Commission Staff Report (Attachment 3 to this report). Staff, with support from the City’sconsultant, has addressed these comments in the public hearing draft of the document. A matrix of HCD comments and City responses is provided in Attachment 3 of the Planning Commission Staff Report. The revised document will be re-submitted to HCD following City Council adoption in anticipation of a determination that the Housing Element Update is in compliance with State law.
7. ATTACHMENTS
· Attachment 1 Resolution No. 11378
· Attachment 2 Planning Commission Resolution No. PC 01-22 · Attachment 3 Planning Commission Staff Report and Draft Minutes, January 3, 2022 · Attachment 4 Draft 2021-2029 Housing Element Update
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