Orange City Council
February 14, 2023

Agenda Item
Planning Commission
Item #: 7.1. 1/3/2022 File #: 21-0583
TO: Chair and Members of the Planning Commission
FROM: Anna Pehoushek, Assistant Community Development Director

1. SUBJECT
Public Hearing: 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 Planning Commission Resolution No. 01-22 entitled:

A Resolution of the Planning Commission of the City of Orange recommending that the City Council approve General Plan Amendment No. 2022-0001 adopting the City of Orange 2021-2029 General Plan Housing Element.

4. AUTHORIZING GUIDELINES
Orange Municipal Code (OMC) Sections 17.08.020 and 17.10.010 authorize the Planning Commission to provide a recommendation to the City Council for amendments to the City’sGeneral Plan.

5. PROJECT BACKGROUND
The Housing Element is one of the chapters or “elements”of the City’sGeneral Plan required by State law. The Housing Element establishes 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 through 2021 planning period. State law requires the Housing Element be updated to cover the 2021 through 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 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 additional edits are required, an City of Orange Printed on 12/23/2021Page 1 of 8
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17 Item #: 7.1. 1/3/2022 File #: 21-0583
the City will continue to work with HCD to gain compliance. If additional edits are required, an adopted Housing Element may need to be amended once compliance is gained.

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.

6. PROJECT DESCRIPTION
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 show our viability to construct 3,936 dwelling units at varying affordability income levels. Details on the RHNA process are outlined in Issue 1 of the Analysis and Statement of Issues section of this staff report. The Quantified Objectives for the 2021-2029 planning period are to accommodate the City’s 3,936 RHNA unit allocation 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.

The Housing Element addresses the following content, in accordance with State requirements:
· Population and employment trends.
· Existing and projected housing needs for all income groups, including extremely low income households.
· City housing and household characteristics, including cost for housing compared to ability to pay, overcrowding, and housing conditions.
· An inventory of land reasonably viable for residential development. · Analysis of existing and potential constraints, governmental and non-governmental, upon maintenance, improvement, or development of housing for all income levels. · Housing needs of people experiencing homelessness, including identification of zoning where emergency shelters are allowed as a permitted use.
· Special housing needs: handicapped, elderly, large families, farm workers, and female-headed households.
· Opportunities for energy conservation with respect to residential development. · Identification of publicly assisted housing developments. · Units at risk of conversion to market rate housing.
· Maintenance, improvement, and development of housing. · Identification of adequate sites with required public services and facilities for a variety of housing types for all income levels.
· Strategies to assist in the development of adequate housing to meet the needs of Very Low, Low, and Moderate Income households.
· Public participation program in the formulation of Housing Element Goals, Policies, and Programs.
· Regional Housing Needs Assessment prepared by the Southern California Association of City of Orange Printed on 12/23/2021Page 2 of 8
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Governments.
· Analysis of Fair Housing, including Affirmatively Furthering Fair Housing. · Review of the effectiveness of the past Element, including the City’saccomplishments during the previous planning period.

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
Policy actions focus on:
· Acquisition/rehabilitation of housing units
· Monitoring and preserving affordable units at risk of converting to market rate units · Evaluating the housing development entitlement process · Addressing deferred property maintenance and code violations · Preserving of historic residential structures
· Promoting affordable housing
· Encouraging development of housing for large families and seniors · Facilitating infill development
· Exploring alternative funding and financing
· Providing funding support for non-profit community housing development organizations · Monitoring adequate sites for housing
· Coordinating with Chapman University to address student housing needs · Accommodating development of Accessory Dwelling Units/Junior Accessory Dwelling Units · Furthering fair housing
The complete collection of goals and policy actions is presented in Section 4 of the Housing Element update. 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 and fair access to housing. The policy framework and identified opportunity sites both encourage and accommodate new housing development in a manner that meets the City’sRHNA allocation and is consistent with state law.

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Public Outreach
As part of the Housing Element Update process, the City conducted extensive public outreach activities beginning in 2019. These efforts included:
· Establishing a Housing Element Update webpage with all housing element materials and information.
· Two stakeholder meetings (English and Spanish) on December 1, 2020 engaging service providers, housing advocacy groups, developers, church representatives, and similar entities that provide support services to individuals with housing needs. · Virtual Community Workshops on October 12, 2020 and May 26, 2021 with recordings available on the webpage.
· An online Community Survey available from October 12, 2020 to December 1, 2020.

A public review draft of the Housing Element was made available from May 21 through June 21, 2021 on the City’swebsite prior to sending the document to HCD for its review and comment. The content of the draft Housing Element considers the input provided during this process. More detailed information about the public outreach process and community feedback is provided in Appendix C of the draft Housing Element Update (Attachment 1).

7. ANALYSIS AND STATEMENT OF THE ISSUES
Issue 1: Regional Housing Needs Allocation
RHNA allocation is derived from a regional housing goal that HCD supplies to the Southern California Association of Governments (SCAG), the metropolitan planning agency that coordinates regional planning activity for the six counties comprising Southern California. Once HCD establishes the regional housing goal, SCAG is then required to allocate a portion of the overall housing units for the region to each city and county jurisdiction in the region based on a complex methodology that incorporates factors such as housing market demand, employment opportunities, community patterns, concentrations of low-income households, and more.

For the 2021-2029 Housing Element cycle, 183,861 RHNA units are allocated throughout all jurisdictions in Orange County. Of those units, the City of Orange is responsible for demonstrating the ability to construct 3,936 RHNA units, or 2% of the County allocation. The units do not have to be constructed if the market does not choose to do so, but our 2021-2029 Housing Element must demonstrate that we have viable zoning capacity to build our RHNA allocated units. The 3,936 units of this 2021-2029 RHNA cycle assigned to Orange represents a significant increase over the 2014- 2021 RHNA which required Orange to demonstrate the ability to accommodate only 363 units. In addition to identifying a total number of housing units needed during the planning period, the RHNA also assigns the housing unit need by household income level. The affordability breakdown for the City’s RHNA 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%
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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 City’sRHNA 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 of the sites are located in portions of Orange with Urban Mixed Use or Neighborhood Mixed Use zoning, while others are sites in transition with pending or active development applications that include housing. The City also anticipates that a number of housing units will 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
Housing Affordability
The sites identified as candidate housing sites are anticipated to develop at a range of affordability levels. Where sites have General Plan and Zoning designations that allow over 30 units per acre, HCD acknowledges that greater affordability can be achieved in projects developed at this “default density”or higher. Sites meeting the “defaultdensity”are located in Uptown Orange in the vicinity of City of Orange Printed on 12/23/2021Page 5 of 8
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the Outlets at Orange, and on West Katella Avenue.

In addition to the “defaultdensity”sites, the City of Orange benefits from long-standing relationships with local affordable housing developers who have a proven track record in Orange of bringing forward affordable housing units for families and senior citizens. Four such projects are currently in process, which the City anticipates will qualify with HCD towards fulfilling our 2021-2029 affordable RHNA categories. The proposed Housing Element Update anticipates continued work with these entities to continue to bring forward affordable/workforce housing projects meeting varied housing needs.

State and regional funding programs available for housing are presently expanding. Therefore, staff is speculating that tax incentives and a variety of creative funding sources will continue to evolve to encourage and facilitate affordable housing development. While the City receives relatively limited federal housing funds (HOME program), it will continue to accumulate its annual allocation in order to ultimately offer these funds to assist affordable housing projects in the community. Recent projects that have received HOME funds or involved creative financing include the entitled Corp Yard housing project on Struck Avenue and the Orange Senior Housing project on Katella Avenue.

During the 2014-2021 Housing Element cycle, 1,950 units were built in relation to the City’s393 unit RHNA. The constructed units satisfied the identified housing unit need at nearly all of the income levels except for Very Low Income, for which 74 of the 83 unit need remain unmet.

Because the City has limited funding available to offer to affordable housing developers, and cannot look to redevelopment funds to incentivize development of affordable housing, it is dependent on the non-profit or private development community to bring forward affordable housing projects. Similarly, because the City does not have significant surplus property, it is not typically able to incentivize affordable housing projects by providing land. Therefore, housing development, whether market rate or affordable, is largely dependent on the development community and the economy.

Staff anticipates that affordable and workforce housing projects will continue to materialize in coming years, and are likely to occur on both sites contemplated in the Housing Element Update as candidate housing sites, as well as on parcels that had not been anticipated for infill residential development.

Issue 2: Policy Document Review and Updates
Changes in state law require the City to review and update, as necessary, its policy documents to bring various development disciplines into alignment with each other. There are four areas where follow up work on various policy documents will be necessary. Specifically:
· SB 1035 requires the City to identify flood hazards and address fire risk on residential property. Staff is presently undertaking a review of the General Plan Safety Element and anticipates bringing the item forward for Council consideration in the first quarter of 2022. · SB 1000 requires that the City include an environmental justice component to its General Plan. Staff intends to perform a review of the existing General Plan to determine where environmental justice content is currently addressed and where amendments may be needed to integrate additional language that addresses state law. · In conjunction with furthering fair housing opportunities through outreach and education, the City will update its Density Bonus ordinance to be consistent with state law. · To facilitate housing production and create more opportunities for housing development, the City of Orange Printed on 12/23/2021Page 6 of 8
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· To facilitate housing production and create more opportunities for housing development, the City recently adopted a Small Lot Subdivision Ordinance, and is presently preparing a Transfer of Development Rights Ordinance that would allow development rights to be transferred from historic district properties to Urban Mixed Use districts for purposes of increasing density on the receiver site, and a specific plan for the North Tustin Street corridor that will provide strategic opportunities for the integration of housing in that district. · In response to any changes in state law related to emergency, transitional and supportive housing, the City will review and amend the Orange Municipal Code to ensure consistency with state law.

Issue 3: HCD Review
Staff submitted the Draft Housing Element for HCD review in July 2021. HCD provided comments to the City in September 2021 (Attachment 2). Staff with support from the City’s consultant 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 to this report. The revised document will be re- submitted to HCD in anticipation of a determination that the Housing Element Update is in compliance with State law.

8. PUBLIC NOTICE
A Public Hearing notice was published in the Anaheim Bulletin newspaper on December 23, 2021 and posted at City kiosks. Project stakeholders were also notified.

9. ENVIRONMENTAL REVIEW
The project is exempt from the California Environmental Quality Act (CEQA) as follows: (i) pursuant to Section 15061(b)(3) of the state CEQA Guidelines (Common Sense Exemption) because it can be seen with certainty that there is no possibility that the proposed 2021-2029 Housing Element Update would have a significant effect on the environment; (ii) no property re-zoning is needed to accommodate the City’sRegional Housing Needs Allocation, and potential residential development densities have already been analyzed and mitigated in an earlier Environmental Impact Report (the Program Environmental Impact Report prepared for the 2010 Comprehensive General Plan Update, State Clearinghouse No. 2006031117); (iii) pursuant to Guideline 15283, CEQA does not apply to Regional Housing Needs determinations made by a city. For these reasons, no further CEQA documentation is required.

10. ADVISORY BOARD ACTION
Not applicable. The Planning Commission is advisory to the City Council for General Plan amendments.

11. ATTACHMENTS
· Attachment 1 Planning Commission Resolution No. PC 01-22 · Attachment 2 HCD Comment Letter
· Attachment 3 HCD Response Matrix
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· Attachment 4 Draft Housing Element Update
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24 GENERAL PLAN AMENDMENT NO. 2022-0001

HOUSING ELEMENT UPDATE

RESOLUTION NO. PC 01-22

A RESOLUTION OF THE PLANNING

COMMISSION OF THE CITY OF ORANGE

RECOMMENDING THAT THE CITY COUNCIL
APPROVE GENERAL PLAN AMENDMENT NO.
2022-0001 ADOPTING THE CITY OF ORANGE
2021-2029 GENERAL PLAN HOUSING

ELEMENT

APPLICANT: CITY OF ORANGE

Moved by Commissioner _______ and seconded by Commissioner _______ that the following Resolution be adopted:

WHEREAS, the Planning Commission has authority per California Government Code Section 65358 and Orange Municipal Code Sections 17.08.020 and 17.10.010 to review and make recommendations to the City Council for amendments to the City’s General Plan; and

WHEREAS, the Housing Element is one of the required chapters of the City’s General Plan, required by State law; and

WHEREAS, the City previously adopted its 2014-2021 General Plan Housing Element in January 2014; and

WHEREAS, the California Government Code requires Cities to review and update their Housing Elements according to a schedule set forth by the California Department of Housing and Community Development (HCD); and

WHEREAS, the City also desires to update its Housing Element to ensure that it accurately reflects the City’s housing policy and addresses community needs; and

WHEREAS, the City has prepared the 2021-2029 Housing Element as a n update to its previously approved Housing Element in compliance with State law; and

WHEREAS, the Planning Commission conducted one duly advertised public hearing on January 3, 2022, at which time interested persons had an opportunity to testify either in support of, or opposition to, the 2021-2029 Housing Element update;

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission recommends that the City Council review, consider and make certain findings pursuant to CEQA and approve 25 Planning Commission
Resolution No. PC 01-22

General Plan Amendment No. 2021-0001, adopting the 2021-2029 General Plan Housing Element based on the findings contained in Section 1 of this Resolution.

BE IT FURTHER RESOLVED that the Planning Commission re commends that the City Council direct staff to implement the policy action programs identified in the 2021-2029 Housing Element.

SECTION 1 – FINDINGS

1. The General Plan Housing Element meets the requirements of the California Government Code.

The Housing Element contains a housing needs assessment, resources and constraints analysis, review of past performance, housing policy actions, adequate sites analysis , and fair housing analysis, consistent with State requirements. The content of the Housing Element addresses comments provided by the State of California Department of Housing and Community Development Department (HCD) on the City’s 2021-2029 Draft Housing Element. Following City adoption of the 20 21-2029 Housing Element, a copy will be submitted to HCD for final certification.

2. The Housing Element is generally consistent with the goals and policies stated within all other elements of the City’s General Plan.

The Housing Element is consistent with the City’s land use plan and is consistent with the goals and policies of the remaining elements of the General Plan.

3. The Housing Element advances the State’s housing goal of “decent housing and a suitable living environment for all members of the community”.

The Housing Element contains a needs assessment doc umenting housing needs in the Orange community and establishes policy actions to meet those needs through the preservation, conservation, improvement and production of housing units in Orange . T he housing policy actions aim to provide opportunities for production of new housing units for all income levels, further fair housing, and also address housing for special needs groups including seniors and large families. As such, City adoption of the Housing Element and implementation of the housing policy actions advances the State’s housing goal of providing “decent housing and a suitable living environment fo r all members of the community.”
SECTION 2 – ENVIRONMENTAL REVIEW
The Housing Element update is exempt from the California Environmental Quality Act (CEQA) as follows: (i) pursuant to Section 15061(b)(3) of the State CEQA Guidelines (Common Sense Exemption) because it can be seen with certainty that there is no possibility that the proposed 2021-2029 Housing Element Update would have a signific ant effect on t he environment; (ii) n o property re -zoning is needed to accommodate the City’s Re gional Housing Needs Allocation, and potential residential development densities have already been analyzed and mitigated in an 26 Planning Commission
Resolution No. PC 01-22

earlier Environmental Impact Report (the Progra m Environmental Impact Report prepared for the 2010 Comprehensive General Plan Update, State Clearinghouse No. 2006031117) ; (iii) pursuant to Guideline 15283, CEQA does not apply to Regional Housing Needs determinations made by a city. For these reasons, no further CEQA documentation is required.

I hereby certify that the foregoing Resolution was adopted on January 3, 2022 by the Planning Commission of the City of Orange by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dave Simpson, Planning Commission Chair

Date
27 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
September 13, 2021

Anna Pehoushek, Assistant Community Development Director Planning Division
City of Orange
300 E. Chapman Ave.

Orange, CA 92866

Dear Anna Pehoushek:

RE: Review of the City of Orange’s 6
th Cycle (2019-2021) Draft Housing Element

Thank you for submitting the City of Orange’s draft housing element received for review on July 15, 2021. 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 telephone conversation on September 9, 2021 with you, Senior Planner Chad Ortlieb, and the City’s consultants Nick Chen and Ines Galmiche of Kimley-Horn. In addition, HCD considered comments from the Kennedy Commission; the Law Office of Richard L. Spix; and Elder Law & Disability Rights Center pursuant to Government Code section 65585, subdivision (c).

The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes these, and other revisions needed to comply with State Housing Element Law.

To re
main on an eight-year planning cycle, the City must adopt its housing element within 120 calendar days from the statutory due date of October 15, 2021 for Southern California Association of Governments (SCAG) localities. If adopted after this date, Government Code section 65588, subdivision (e)(4), requires the housing element be revised every four years until adopting at least two consecutive revisions by the statutory deadline. For more information on housing element adoption requirements, please visit HCD’s website at:
http://www.hcd.ca.gov/community-development/housing-element/housing-element- memos/docs/sb375_final100413.pdf.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the County 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:
28 Anna Pehoushek, Assistant Community Development Director

http://opr.ca.gov/docs/OPR_Appendix_C_final.pdf and
http://opr.ca.gov/docs/Final_6.26.15.pdf.

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.

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. 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].

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. 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 meets housing element requirements for these and other funding sources.

We are 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 Mashal Ayobi, of our staff, at [email protected] or (916) 776-7421.

Sincerely,

Shannan West
Land Use & Planning Unit Chief

Enclosure
29 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 1 September 13, 2021

APPENDIX

CITY OF ORANGE

The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at http://www.hcd.ca.gov/community-development/housing-element/housing-element- memos.shtml. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision

Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)

As part of the evaluation of programs in the past cycle (Appendix A: 5th Cycle Review), the element must provide an explanation of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers and persons experiencing homelessness).

B. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing (AFFH) 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))

The element includes information on pages H-79 to H-85 on AFFH. However, additional information is required as follows:

Enforcement and Outreach: The element must include the City’s ability to provide enforcement and outreach capacity at a geographic level. Page 28 of the AFFH Guidance Memo1 states, “Wherever possible, the summary should include a discussion of fair housing enforcement and outreach (FHEO) at a geographic level appropriate to better determine any locational trends—simply reporting information at a city-wide level will not fully display patterns and impacts on protected characteristics. Examples of appropriate geographic levels include census tracts, block groups, neighborhoods, housing development, or any other sub-section of a locality.” Additionally, there are some missing required pieces of the FHEO section:

• Lawsuits

1 HCD’s AFFH Guidance Memo: https://hcd.ca.gov/community-development/affh/docs/affh_document_final_4-27-2021.pdf 30 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 2 September 13, 2021
• Enforcement actions
• Settlements
• Judgments related to fair housing or civil rights

Pursuant to page 29 of the AFFH Guidance Memo, the element should include a description of state and local fair housing laws and how the locality complies with these laws. This page gives an example list of state and local fair housing laws.

Integration and Segregation: The housing element only analyzes integration/segregation patterns & trends for race and ethnicity. Per page 31 of the AFFH Guidance Memo, “At minimum, the analysis must discuss levels of segregation and integration for race and ethnicity, income, familial status, persons with disabilities, and identify the groups that experience the highest levels of segregation.”

Racially/Ethnically Concentrated Areas of Poverty (R/ECAP): While there are no R/ECAPs in the jurisdiction, the element must describe whether there are any Racially Concentrated Areas of Affluence (RCAAs). Page 33 of the AFFH Guidance Memo gives more information about RCAAs.

Disproportionate Housing Needs: The element needs a disproportionate housing needs analysis on homelessness. Please refer to page 39 of the AFFH Guidance Memo for more information on this.

Access to Opportunity: The element discusses the overall high/low opportunity indicators based on census tract but doesn’t give an in-depth discussion of the opportunity variables nor compare to Opportunities at a regional level. Please refer to page 35 of the AFFH Guidance Memo for more info to include to strengthen this section.

In addition, the element is missing an analysis on Disparities in Access to Opportunity for Persons with Disabilities. Pages 36-38 of the AFFH Guidance Memo give more information on what’s required for this part of the analysis.

Contributing Factors: On pages 3-82 of the housing element, it mentions that the County’s Analysis of Impediments (AI) identifies the regional goals for mitigating impediments to fair housing. However, the City must create its own list of contributing factors resulting from the AFFH analysis and must prioritize them. Per page 49 of the AFFH Guidance Memo, “The housing element must include an identification and prioritization of significant contributing factors to segregation, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs.”

Local Data and Knowledge and Other Relevant Factors: The element generally does not address this requirement. Although the element provides some data in the areas of Fair Housing Enforcement and Capacity, Segregation and Integration, Racially/Ethnically Concentrated Areas of Poverty (R/ECAP), Access to Opportunity, and Disproportionate Housing Needs and Displacement Risk, the City’s analysis for each of these areas must also be informed by regional and local data and knowledge 31 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 3 September 13, 2021
from stakeholders within the City. For example, the analysis could utilize outreach as described above through surveys, interviews, etc. from local non-profit organizations and advocacy groups engaged in housing issues. In addition, the element must include other relevant factors that contribute to fair housing issues in the jurisdiction.

For instance, the element can analyze historical governmental and nongovernmental land use, zoning, and investment practices (e.g., infrastructure) or other information and demographic trends.

Sites Inventory: The element discusses the proposed number of sites and units relative to racial segregation (p. 3-84) but must also address other components of the assessment of fair housing (e.g., R/ECAP, Access to Opportunity, Disproportionate Housing Need, including Displacement). The analysis must also include discussion of all regional housing needs allocation (RHNA) categories, including above moderate- income households, in relation to areas with a higher proportion of white residents and higher median incomes and address how the sites are identified to improve conditions (or if sites exacerbate conditions, how a program can mitigate the impact), whether the sites are isolated by income group and should be supported by local data and knowledge.

Goals, Priorities, Metrics, and Milestones: The element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must 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 metrics and milestones as appropriate and must address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for community preservation and revitalization and displacement protection.

2. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).)

The element identifies the age of the housing stock (p. 2-32). However, this data is insufficient to estimate the number of units in need of rehabilitation and replacement.

The analysis could supplement this information with estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable builders/developers, including non-profit housing developers or organizations. For additional information, see the Building Blocks at http://www.hcd.ca.gov/community-development/building-blocks/housing- needs/housing-stock-characteristics.shtml.

3. 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).)

32 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 4 September 13, 2021
The City has a RHNA of 3,936 housing units, of which 1,671 are for lower-income households. To address this need, the element relies on sites that are residentially zoned or in a mixed-use zone that permits residential uses. To demonstrate the adequacy of these sites and strategies to accommodate the City’s RHNA, the element must include complete analyses:

Realistic Capacity: For sites in commercial and mixed-use zones, the element must consider the likelihood of residential development of the estimated number of residential units determined for each site. To demonstrate the likelihood for residential development in nonresidential zones, the element could describe any performance standards mandating a specified portion of residential and any factors increasing the potential for residential development such as incentives for residential use, and residential development trends in the same nonresidential zoning districts.

For additional information, see the Building Blocks at
http://www.hcd.ca.gov/community-development/building-blocks/site-inventory- analysis/analysis-of-sites-and-zoning.shtml#zoning.

Suitability of Nonvacant Sites: While the element provides a description of existing uses on nonvacant and underutilized sites, the element needs to also analyze the extent that existing uses may impede additional residential development. For example, the element includes sites owned by the Regents of the University of California, shopping and commercial centers with active retail, and an Outlet Mall.

The element can summarize past experiences converting existing uses to higher density residential development, include current market demand for the existing use, provide analysis of existing leases or contracts that would perpetuate the existing use or prevent additional residential development and include current information on development trends and market conditions in the City and relate those trends to the sites identified. The element could also consider indicators such as age and condition of the existing structure expressed developer interest, low improvement to land value ratio, and other factors. In addition, the element should indicate if the sites owned by the Regents of the University of California are expected to be put on a surplus list or if conversations with the Regents have occurred related to potential residential development of this site.

For your information, if the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households, the housing element must demonstrate that the existing use is not an impediment to additional residential development in the planning period (Gov. Code, § 65583.2, subd. (g)(2).). This can be demonstrated by providing substantial evidence that the existing use is likely to be discontinued during the planning period (Gov. Code, § 65583.2, subd. (g)(2).

Large Sites: The 1547 W Katella Ave site is 13.37 acres, and 1 City Blvd West is

11.30 acres. Sites larger than ten acres in size are deemed inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower-income housing units as projected for the site or unless the housing element describes other evidence to HCD that the site is adequate to 33 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 5 September 13, 2021
accommodate lower-income housing (Gov. Code, § 65583.2, subd. (c)(2)(A).). As part of this analysis the element could indicate if a part or whole of the site will be developed and how the site is expected to be redeveloped.

Accessory Dwelling Units (ADU): The element projects 320 ADUs over the planning period or approximately 40 ADUs per year over the eight-year planning period.

According to HCD records, ten units were permitted in 2018, ten were permitted in 2019, and 39 permitted in 2020. These trends do not support an assumption of 40 ADUs per year. To support assumptions for ADUs in the planning period, the element should reconcile trends with HCD records, adjust assumptions as appropriate and include additional information such as more recent permitted units and inquiries, resources and incentives, other relevant factors and modify policies and programs as appropriate.

Sites with Zoning for a Variety of Housing Types:

Emergency Shelters: While the element notes emergency shelters are allowed in the M-1 and M-2 zones, it must demonstrate the City still has sufficient capacity to accommodate the identified housing need for emergency shelters and evaluate the available acreage for characteristics like parcel size or potential redevelopment or reuse opportunities, proximity to services and describe development standards.

Accessory Dwelling Units: The element should clarify whether ADUs are permitted in all zones that allow residential uses. Table 3-6 on page 3-22 appears to indicate that ADUs are only allowed in single family residential zones.

4. 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 identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Government Code section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7). Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. (Gov. Code, § 65583, subd. (a)(5).)

Processing and Permitting Procedures: While the element describes the application process, it must describe and analyze the City permit processing and approval procedures by zone and housing type (e.g., multifamily rental housing, mobilehomes, housing for agricultural employees, supportive housing). The analysis must evaluate the processing and permit procedures’ impacts as potential constraints on housing supply and affordability. For example, the analysis should consider processing and approval procedures and time for typical single- and multi-family developments, 34 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 6 September 13, 2021
including type of permit, level of review, approval findings and any discretionary approval procedures.

Design Review: The element must describe and analyze the design review guidelines and process, including approval procedures and decision-making criteria, for their impact as potential constraints on housing supply and affordability. For example, the analysis could describe required findings and discuss whether objective standards and guidelines improve development certainty and mitigate cost impacts. The element must demonstrate this process is not a constraint or it must include a program to address this permitting requirement, as appropriate.

Zoning and Fees Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning and development standards for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1, subdivision (a), paragraph (1).

Constraints on Housing for Persons with Disabilities: The element currently details that residential care facilities serving six or fewer persons are permitted in all residential zones. However, residential care facilities serving seven or more persons are limited to the same zones with the approval of a conditional use permit. The element should analyze the process as a potential constraint on housing for persons with disabilities and add or modify programs as appropriate to ensure zoning permits group homes objectively with approval certainty.

Local Ordinances: The element must specifically analyze locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances that directly impact the cost and supply of residential development. The analysis should demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters.

5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the locality’s planning for the development of housing for all income levels and the construction of that housing. (Gov. Code, § 65583, subd. (a)(6).)

The element must be revised to include analysis of requests to develop housing at densities below those anticipated, and the length of time between receiving approval for a housing development and submittal of an application for building permits that 35 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 7 September 13, 2021
potentially hinder the construction of a locality’s share of the regional housing need.

The analysis must also include an analysis regarding local efforts to address nongovernmental constraints.

6. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov.

Code, § 65583, subd. (a)(7).)

While the element quantifies the City’s special needs populations, it must also analyze their special housing needs. The element does not include analysis of available resources nor draw any conclusions on housing need that would lead towards programs. For a complete analysis of each population group, the element should discuss challenges faced by the population, the existing resources to meet those needs (e.g., availability senior housing units, number of large units, number of deed restricted units, etc.), an assessment of any gaps in resources, and proposed policies, programs, and funding to help address those gaps. In particular, the element should analyze and address how the City is addressing the housing and service needs of the 341 persons identified as experiencing homelessness. It is HCD’s understanding that the City is terminating its contract with Mary’s Kitchen which provides meals and other services within the City of Orange. The element should discuss how the City will be replacing these services or filling the needs gap resulting from the of loss of Mary’s Kitchen within the City.

7. Analyze existing assisted housing developments that are eligible to change to non- low-income housing uses during the next ten years due to termination of subsidy contracts, mortgage prepayment, or expiration of use restrictions. (Gov. Code, § 65583, subd. (a)(9) through 65583(a)(9)(D).)

According to the California Housing Partnership, four properties that are at-risk:

Friendly Center (8 units), Casas Del Rio (40 units), Walnut-Pixley (Site A) (22 units), and the Knolls Apartments (260 units) of converting to market rate within a ten-year period. As a result, the element must provide an analysis on units identified as at-risk of converting to market-rate housing. The analysis of “at-risk” units must include the following (Gov. Code, § 65583, subd. (a)(9).):

• Listing of each development by project name and address • Type of governmental assistance received
• Earliest date of change from low-income use
• Total number of elderly and non-elderly units
• Estimated total cost for producing, replacing, and preserving the units at-risk • Identification of public and private non-profit corporations known to the City to have the legal and managerial capacity to acquire and manage at-risk units • Identification and consideration of use of federal, state, and local financing and subsidy programs.

For additional information and sample analysis, see the Building Blocks at http://www.hcd.ca.gov/community-development/building-blocks/housing- needs/assisted-housing-developments.shtml and for more information on identifying 36 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 8 September 13, 2021
units at-risk, see the California Housing Partnership Corporation at http://www.chpc.net.

C. Housing Programs

1. 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 through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).)

Programs must demonstrate that they will have a beneficial impact within the planning period. Beneficial impact means specific commitment to deliverables, measurable metrics or objectives, definitive deadlines, dates, or benchmarks for implementation. Programs containing unclear language (e.g., “Evaluate”; “Consider”; “Encourage”; etc.) should be amended to include more specific and measurable actions. Deliverables should occur early in the planning period to ensure actual housing outcomes.

To address the program requirements of Government Code section 65583, subdivision (c)(1-6), and to facilitate implementation, all programs should be revised to include: (1) a description of the City’s specific role in implementation including meaningful actions the city will take to achieve the identified goals, policies, and program objectives; (2) definitive implementation timelines (e.g., December 31, 2024); (3) objectives, quantified where appropriate; and (4) identification of responsible agencies and officials (e.g., Planning Assistant, Community Development, etc.). For example, Policy Action 1A (Acquisition/Rehabilitation of Multifamily Residential Development), Policy Action 2C (Development of Housing for Large Families), 2L (Candidate Sites Used in Previous Housing Elements) all requires specific timeframes for identified actions. In addition, the following programs require additional information:

Policy Action 2G (Support Community Housing Development Organization New Construction Projects): The element must describe how the City will seek qualified organizations and more general information on this program.

Policy Action 4B (Homeless Services). The Policy Action states the City provides support for navigation centers in Buena Park and Placentia. The element must describe how the City supports these navigation centers and how these navigation centers address and support the housing and service needs of those individuals experiencing homelessness in the City of Orange.

Policy Action 4E (Support for Persons with Disabilities): Describe how the City will support housing for persons with disabilities and work with the regional center to promote opportunities for supportive living services.

37 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 9 September 13, 2021

2. 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 completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy (SRO) units, emergency shelters, and transitional housing.
(Gov. Code, § 65583, subd. (c)(1).)

As noted in Finding B3, 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. In addition, the element should be revised as follows:

Policy Action 2E (Facilitate Infill Construction): Provide a specific timeline for evaluating provisions in the Zoning Code for feasibility of providing additional regulatory relief (i.e., streamlined review, reduced and objective development standards, lot consolidations, etc.) In addition, this program could be expanded to provide specific provisions to support development of housing on the sites identified in the inventory including the redevelopment of sites with existing uses identified to accommodate the lower-income RHNA. As existing leases have been identified as a potential constraint to developing the nonvacant sites for the lower-income RHNA, the program could also monitor development on sites with existing leases as it relates to the provision of housing affordable to lower-income households and commit to the provision of additional actions as necessary to facilitate development or identify additional sites.

Policy Action 2K (Create ADU Monitoring Program): The program states that the City will monitor ADU development progress after 2 years of adopting the 6 th cycle
housing element and will take action within six months to ensure adequate capacity at each income level. The program should also commit to monitor by affordability assumptions.

3. The housing element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderate-income households. (Gov. Code, § 65583, subd. (c)(2).)

Policy Action 2B (Promotion of Affordable Housing) indicates the development of housing for lower- and moderate-income households will be assisted primarily by applying state density bonus law (SDBL). However, in addition to complying with SDBL, the element must include a program(s) describing specific actions the City will take to assist in the development of housing affordable to lower- and moderate- income households, including extremely low-income households (ELI). For 38 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 10 September 13, 2021
example, programs could prioritize some funding for the development of housing affordable to ELI households and offer financial incentives or regulatory concessions to encourage the development of a variety of housing types, such as multifamily, SRO units, and supportive housing, to address the identified housing needs for ELI households. The inclusion of specific programs to assist in the development of housing affordable to lower-income households is critical as, per third party comments received from the Kennedy Commission, the number of units affordable to moderate- and above moderate-income households approved in the last seven years was 23 times greater than those approved for low- and very low- income households.

4. 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. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).)

As noted in Findings B4 and B5, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

8. The housing program shall preserve for low-income household the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (Gov.

Code, § 65583, subd. (c)(6).)

The element includes Policy Action 1B (Monitoring and Preservation of “at-risk” Units) to monitor the units and provide technical assistance. However, the element must include specific and proactive actions to preserve the at-risk units. For example, the program could support applications by non-profits for funding to purchase at-risk units, strengthen relationships with the listed non-profits and develop a plan or strategy for quickly moving forward in the case units are noticed to convert to market-rate uses in the planning period, and consider pursuing funding on at least an annual basis. The program could also commit to contacting non- profits immediately to develop a preservation strategy by a date certain and be ready to quickly act when notice of conversion is received and monitoring the units to ensure tenants receive proper notifications.

9. Develop a plan that incentivizes and promotes the creation of ADUs that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this 39 Review of the City of Orange’s 6th Cycle Draft Housing Element Page 11 September 13, 2021
paragraph, “accessory dwelling units” has the same meaning as “accessory dwelling unit” as defined in paragraph (4) of subdivision (i) of Section 65852.2. (Gov. Code, § 65583, subd. (c)(7).)

The element is required to include a program that incentivizes or promotes ADU development for very low-, low-, and moderate-income households. This can take the form of flexible zoning requirements, development standards, or processing and fee incentives that facilitate the creation of ADUs, such as reduced parking requirements, fee waivers and more. Other strategies could include developing information packets to market ADU construction, targeted advertising of ADU development opportunities or establishing an ADU specialist within the planning department.

D. Quantified Objectives

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 must include quantified objectives to establish an estimate of housing units by individual income category that can be constructed, rehabilitated, and conserved over the planning period.

E. Public Participation

Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(8).)

While the element includes a general summary of the public participation efforts, it must also demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element. The element should be revised to discuss outreach to lower-income and special needs groups during the public participation efforts, solicitation efforts for survey responses, and participation in community workshops. In addition, the element should also summarize the public comments and describe how they were considered and incorporated into the element.

For additional information, see the Building Blocks at http://www.hcd.ca.gov/community- development/building-blocks/getting-started/public-participation.shtml. 40 City of Orange – HCD Response Matrix
September 2021 HCD Response Letter
HCD Comments Section/Page Number Notes
Review and Revision
A. As part of the evaluation of programs in the past cycle (Appendix A: 5th Cycle Review), the element must
provide an explanation of the effectiveness of goals,
policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers and persons experiencing homelessness).

Appendix A, various Policy
Actions
The following listed Policy Actions provide specific
quantified accomplishments completed by the City
between 2016 and 2020. There is no additional
information available for the following programs outside of what has been included in the document.
 Policy Action 5: Development of Housing for
Large Families
 Policy Action 6: Provision of Senior Housing
Opportunities
 Policy Action 14: Coordinate with Chapman
University to Address Student Housing
 Policy Action 16: Homeless Services
 Policy Action 18: Section 8 Rental Assistance
 Policy Action 19: Support for Persons with
Developmental Disabilities
 Policy Action 20: Single Room Occupancy Units
 Policy Action 21: Revise Ordinance to Comply
with State Law Regarding Transitional and
Supportive Housing
Housing Needs, Resources, and Constraints
B1. The element includes information on pages H-79 to H- 85 on AFFH. However, additional information is required as follows:

Enforcement and Outreach: The element must include
the City’s ability to provide enforcement and outreach
capacity at a geographic level. Page 28 of the AFFH
Guidance Memo1 states, “Wherever possible, the
summary should include a discussion of fair housing
enforcement and outreach (FHEO) at a geographic level
appropriate to better determine any locational trends—
Section 3.J (1,2, and 3)

Additional Housing Element outreach details have been
added to the Fair Housing Enforcement and Outreach
Capacity.

A statement has been added noting there are no current
fair housing cases in the City, and no data is available from the Fair Housing Foundation.

Mapping of candidate sites in relation to AFFH overlays (R/ECAP, RCAAs, and TCAC) has been added to Section
41 City of Orange – HCD Response Matrix
September 2021 HCD Response Letter
HCD Comments Section/Page Number Notes
simply reporting information at a city-wide level will not fully display patterns and impacts on protected
characteristics. Examples of appropriate geographic levels include census tracts, block groups, neighborhoods,
housing development, or any other sub-section of a
locality.” Additionally, there are some missing required pieces of the FHEO section:
 Lawsuits
 Enforcement actions
 Settlements
 Judgments related to fair housing or civil rights
Pursuant to page 29 of the AFFH Guidance Memo, the
element should include a description of state and local fair housing laws and how the locality complies with
these laws. This page gives an example list of state and local fair housing laws.

3.K – Analysis of Sites Pursuant to AB 686 – providing
geographic-level trends.

Table 1-1 includes a list of Housing Element
requirements, including AFFH requirements, and where
they are referenced throughout the Document.

B1. Integration and Segregation: The housing element
only analyzes integration/segregation patterns & trends for race and ethnicity. Per page 31 of the AFFH Guidance Memo, “At minimum, the analysis must discuss levels of
segregation and integration for race and ethnicity,
income, familial status, persons with disabilities, and identify the groups that experience the highest levels of segregation.”
Section 3.J.1 and 3.J.3

Segregation analysis is provided within Section 3.J.1.

Additional mapping and analysis has been added to
show percentages of persons with disabilities, familial statuses, and income.

B1. Racially/Ethnically Concentrated Areas of Poverty
(R/ECAP): While there are no R/ECAPs in the jurisdiction, the element must describe whether there are any Racially Concentrated Areas of Affluence (RCAAs). Page 33 of the AFFH Guidance Memo gives more information about
RCAAs.

Section 3.K A section on RCAAs has been added; it includes background, analysis, and maps illustrating ethnicity
concentrations and Median Income. RCAAs have been
identified in the City of Orange and the requisite analysis with identified census tracts has been added.

Local and regional context has also been added by
comparing the median income and population
42 City of Orange – HCD Response Matrix
September 2021 HCD Response Letter
HCD Comments Section/Page Number Notes
representation of White households versus all
households, for both the City and the County.

B1. Disproportionate Housing Needs: The element needs
a disproportionate housing needs analysis on
homelessness. Please refer to page 39 of the AFFH
Guidance Memo for more information on this.

Section 2.E.7 This analysis is included in the Community Profile Section 2.E.7. The existing section includes background on homelessness as well as local and regional context
based on the County’s Point in Time study.

Data has been added to this section to provide
demographic background on persons experiencing
homelessness – count of families, transitional age youth, race and ethnicity, and sheltered or unsheltered
homelessness.

B1. Access to Opportunity: The element discusses the
overall high/low opportunity indicators based on census tract but doesn’t give an in-depth discussion of the
opportunity variables nor compare to Opportunities at a regional level. Please refer to page 35 of the AFFH
Guidance Memo for more info to include to strengthen
this section.

In addition, the element is missing an analysis on
Disparities in Access to Opportunity for Persons with
Disabilities. Pages 36-38 of the AFFH Guidance Memo give more information on what’s required for this part of the analysis.

Section 3, Table 3-22 and
Figure 3-5

Section 3.J.5

Data and analysis has been added (Table 3-22 and Figure 3-5) providing a regional and local comparison to
opportunities.

Housing needs for persons with disabilities is detailed in depth in the Community Profile pages 2-21 to 2-24.

Additional information and mapping is provided in the
Discussion of Disproportionate Housing Needs section
on pages 3-80 to 3-81.

B1. Contributing Factors: On pages 3-82 of the housing
element, it mentions that the County’s Analysis of
Impediments (AI) identifies the regional goals for
mitigating impediments to fair housing. However, the City must create its own list of contributing factors resulting from the AFFH analysis and must prioritize them. Per
page 49 of the AFFH Guidance Memo, “The housing
element must include an identification and prioritization Section 3.H.7 Additional information on contributing factors has been added to the Affirmatively Furthering Fair Housing
Section 3.H.7. This includes the identification of 4
contributing factors.
43 City of Orange – HCD Response Matrix
September 2021 HCD Response Letter
HCD Comments Section/Page Number Notes
of significant contributing factors to segregation, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing
needs.”
B1. Local Data and Knowledge and Other Relevant
Factors: The element generally does not address this
requirement. Although the element provides some data
in the areas of Fair Housing Enforcement and Capacity,
Segregation and Integration, Racially/Ethnically
Concentrated Areas of Poverty (R/ECAP), Access to
Opportunity, and Disproportionate Housing Needs and
Displacement Risk, the City’s analysis for each of these areas must also be informed by regional and local data
and knowledge from stakeholders within the City. For
example, the analysis could utilize outreach as described above through surveys, interviews, etc. from local non- profit organizations and advocacy groups engaged in
housing issues. In addition, the element must include
other relevant factors that contribute to fair housing
issues in the jurisdiction. For instance, the element can analyze historical governmental and nongovernmental
land use, zoning, and investment practices (e.g.,
infrastructure) or other information and demographic
trends.

Section 3.H.2

Appendix C
Section 3.H.2 includes an overview on outreach that
informed the data and information used in the Housing
Element. Additional details on the outreach is provided in Appendix C.

Additional analysis on contributing factors has been
added.

B1. Sites Inventory: The element discusses the proposed number of sites and units relative to racial segregation (p. 3-84) but must also address other components of the
assessment of fair housing (e.g., R/ECAP, Access to
Opportunity, Disproportionate Housing Need, including
Displacement). The analysis must also include discussion of all regional housing needs allocation (RHNA)
categories, including above moderate-income
households, in relation to areas with a higher proportion Section 3.J.2 References to candidate sites in relation to R/ECAP, RCAAs, and Opportunity areas has been added.
44 City of Orange – HCD Response Matrix
September 2021 HCD Response Letter
HCD Comments Section/Page Number Notes
of white residents and higher median incomes and
address how the sites are identified to improve
conditions (or if sites exacerbate conditions, how a
program can mitigate the impact), whether the sites are isolated by income group and should be supported by
local data and knowledge.

B1. Goals, Priorities, Metrics, and Milestones: The
element must be revised to add or modify goals and
actions based on the outcomes of a complete analysis.

Goals and actions must 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 metrics and milestones as
appropriate and must address housing mobility
enhancement, new housing choices and affordability in
high opportunity areas, place-based strategies for
community preservation and revitalization and
displacement protection.

Section 4, Policy Action 4A

Section 3.J.7
Section 4 includes programs which address the fair
housing issues identified in Section 3.

Contributing factors to fair housing have been identified and added in Section 3.J.7. Including the housing policy actions which address each fair housing issue.

B2. The element identifies the age of the housing stock (p. 2-32). However, this data is insufficient to estimate the number of units in need of rehabilitation and
replacement. The analysis could supplement this
information with estimates from a recent windshield
survey or sampling, estimates from the code enforcement agency, or information from knowledgeable
builders/developers, including non-profit housing
developers or organizations. For additional information, see the Building Blocks at
http://www.hcd.ca.gov/community-
development/building-blocks/housing-needs/housing-
stock-characteristics.shtml.

Section 2.F.4 A statement has been added to Section 2.F.4 noting there are currently no ongoing code enforcement cases
for units needing rehabilitation or replacing.
45 City of Orange – HCD Response Matrix
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B3. The City has a RHNA of 3,936 housing units, of which 1,671 are for lower-income households. To address this
need, the element relies on sites that are residentially zoned or in a mixed-use zone that permits residential
uses. To demonstrate the adequacy of these sites and
strategies to accommodate the City’s RHNA, the element
must include complete analyses:

Realistic Capacity: For sites in commercial and mixed-use zones, the element must consider the likelihood of
residential development of the estimated number of
residential units determined for each site. To
demonstrate the likelihood for residential development in nonresidential zones, the element could describe any
performance standards mandating a specified portion of
residential and any factors increasing the potential for residential development such as incentives for residential use, and residential development trends in the same
nonresidential zoning districts. For additional
information, see the Building Blocks at
http://www.hcd.ca.gov/community-
development/building-blocks/site-inventory-
analysis/analysis-of-sites-and-zoning.shtml#zoning.

Appendix B, Table B-2

Appendix B, Section B
Table B-2 describes past residential development on
Urban Mixed Use sites. Mixed-use zoned sites comprise
all of the City’s identified capacity for the lower income RHNA categories.

Added UMU zoning code language in support of
residential development for affordable units and
supporting residential as a freestanding use.

Added Chapter 17.19.060 language which requires
findings to be made for development in the UMU zone
which will maintain the City’s inventory of sites to meet its RHNA.

B3. Suitability of Nonvacant Sites: While the element
provides a description of existing uses on nonvacant and underutilized sites, the element needs to also analyze the extent that existing uses may impede additional
residential development. For example, the element
includes sites owned by the Regents of the University of California, shopping and commercial centers with active retail, and an Outlet Mall. The element can summarize
past experiences converting existing uses to higher
density residential development (Table B-2), include
Appendix B, Table B-2

Appendix B, Section B &
Table B-3
Removed UC Regents sites from sites inventory

Table B-2 contains an analysis of the City’s past
experiences converting existing uses to higher density
residential development, including the use prior to
redevelopment and a project analysis of the approved
and/or constructed project.

46 City of Orange – HCD Response Matrix
September 2021 HCD Response Letter
HCD Comments Section/Page Number Notes
current market demand for the existing use, provide
analysis of existing leases or contracts that would
perpetuate the existing use or prevent additional
residential development and include current information on development trends and market conditions in the City and relate those trends to the sites identified. The
element could also consider indicators such as age and
condition of the existing structure expressed developer interest, low improvement to land value ratio, and other factors. In addition, the element should indicate if the sites owned by the Regents of the University of California are expected to be put on a surplus list or if conversations with the Regents have occurred related to potential
residential development of this site.

For your information, if the housing element relies upon nonvacant sites to accommodate more than 50 percent
of the RHNA for lower-income households, the housing
element must demonstrate that the existing use is not an impediment to additional residential development in the planning period (Gov. Code, § 65583.2, subd. (g)(2).). This can be demonstrated by providing substantial evidence
that the existing use is likely to be discontinued during the planning period (Gov. Code, § 65583.2, subd. (g)(2).

Revised assumed density in UMU area to 55 du/ac per
analysis in Table B-2 of past development of non-vacant sites within UMU.

Added Lease Analysis, Existing Uses on Candidate Sites
and Redevelopment Opportunity, Housing Market
Analysis to Appendix B, Section B
Added analysis of improvement to land value ratio and
buildable area analysis – most sites showed lower than
10% utilization of full site based on max FAR and current use

B3. Large Sites: The 1547 W Katella Ave site is 13.37
acres, and 1 City Blvd West is 11.30 acres. Sites larger than ten acres in size are deemed inadequate to
accommodate housing for lower-income housing unless it
is demonstrated that sites of equivalent size were
successfully developed during the prior planning period for an equivalent number of lower-income housing units
as projected for the site or unless the housing element describes other evidence to HCD that the site is adequate to accommodate lower-income housing (Gov. Code, §
Appendix B, Table B-4 1547 W Katella Avenue site: Analysis at 13.37 is the net acreage (23.01 gross acres). Only considers existing
surface parking which may be put into a parking
structure to accommodate residential uses. Existing
commercial uses anticipated to remain. Anticipated net yield adjusted to be based on 9.95 acres.

1 City Blvd West: City has an on hold application for residential uses and past interest in development. There 47 City of Orange – HCD Response Matrix
September 2021 HCD Response Letter
HCD Comments Section/Page Number Notes
65583.2, subd. (c)(2)(A).). As part of this analysis the element could indicate if a part or whole of the site will be developed and how the site is expected to be
redeveloped.
is a past DA on this site. Anticipated net yield adjusted to be based on 9.95 acres.

Summary tables updated to reflect

B3. Accessory Dwelling Units (ADU): The element projects 320 ADUs over the planning period or approximately 40
ADUs per year over the eight-year planning period.

According to HCD records, ten units were permitted in
2018, ten were permitted in 2019, and 39 permitted in
2020. These trends do not support an assumption of 40
ADUs per year. To support assumptions for ADUs in the
planning period, the element should reconcile trends with HCD records, adjust assumptions as appropriate and
include additional information such as more recent
permitted units and inquiries, resources and incentives, other relevant factors and modify policies and programs as appropriate.

Appendix B, Section A Added the total permitted ADUs and applications for 2021.
 27 permitted in 2020
 56 permitted so far in 2021 / 64 total
applications
Also added reference in Appendix B to the Housing
Programs in Section 4.

B3. Sites with Zoning for a Variety of Housing Types:

Emergency Shelters: While the element notes emergency
shelters are allowed in the M-1 and M-2 zones, it must
demonstrate the City still has sufficient capacity to
accommodate the identified housing need for emergency
shelters and evaluate the available acreage for
characteristics like parcel size or potential redevelopment or reuse opportunities, proximity to services and describe development standards.

Accessory Dwelling Units: The element should clarify
whether ADUs are permitted in all zones that allow
residential uses. Table 3-6 on page 3-22 appears to
indicate that ADUs are only allowed in single family
residential zones.

Section 3.B.6, Table 3-6 Section 3.B.6 has been updated to include additional information on M1 and M2 zones, as well as the
requirements for emergency shelters.

ADUs updated in Table 3-6 – they are permitted in all
Residential zones.

48 City of Orange – HCD Response Matrix
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B4. Processing and Permitting Procedures: While the
element describes the application process, it must
describe and analyze the City permit processing and
approval procedures by zone and housing type (e.g.,
multifamily rental housing, mobilehomes, housing for
agricultural employees, supportive housing). The analysis must evaluate the processing and permit procedures’
impacts as potential constraints on housing supply and
affordability. For example, the analysis should consider processing and approval procedures and time for typical single- and multi-family developments, including type of permit, level of review, approval findings and any
discretionary approval procedures.

Section 3.B.11 General permit processing time for SFRs and MFRs has been added to Section 3.B.11.

Each housing type listed in Section 3.B.6 includes the
zones that permit the development and potential
permits required.

B4. Design Review: The element must describe and
analyze the design review guidelines and process,
including approval procedures and decision-making
criteria, for their impact as potential constraints on
housing supply and affordability. For example, the
analysis could describe required findings and discuss
whether objective standards and guidelines improve
development certainty and mitigate cost impacts. The
element must demonstrate this process is not a
constraint or it must include a program to address this permitting requirement, as appropriate.

Section 3.B.11 A statement has been added to Section 3.B.11 – Design Review to reference the programs in Section 4 noting
the City will be evaluating review procedures and
evaluate the feasibility of objective development
standards.

B4. Zoning and Fees Transparency: The element must
clarify its compliance with new transparency
requirements for posting all zoning and development
standards for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1,
subdivision (a), paragraph (1).

Section 3, Table 3-6 and
Table 3-7
A statement has been added stating the City’s Zoning is available in the Municipal Code online.

An existing statement noted the availability of
permitting fees on the City’s website.

B4. Constraints on Housing for Persons with Disabilities:

The element currently details that residential care
facilities serving six or fewer persons are permitted in all Section 4, Policy Action 4F A new Policy Action 4F has been added to amend the Municipal Code in compliance with State law.
49 City of Orange – HCD Response Matrix
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residential zones. However, residential care facilities serving seven or more persons are limited to the same
zones with the approval of a conditional use permit. The element should analyze the process as a potential
constraint on housing for persons with disabilities and add or modify programs as appropriate to ensure zoning
permits group homes objectively with approval certainty.

B4. Local Ordinances: The element must specifically
analyze locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances that directly impact the cost and supply of residential development.

The analysis should demonstrate local efforts to remove governmental constraints that hinder the locality from
meeting its share of the regional housing need and from meeting the need for housing for persons with
disabilities, supportive housing, transitional housing, and emergency shelters.

Section 3.B.5 A new section on Local Ordinances has been added to include the existing Growth Management Measures
analysis and new analysis on the City’s Short Term
Rental Ordinance.

B5. The element must be revised to include analysis of
requests to develop housing at densities below those
anticipated, and the length of time between receiving
approval for a housing development and submittal of an
application for building permits that potentially hinder the construction of a locality’s share of the regional
housing need. The analysis must also include an analysis regarding local efforts to address nongovernmental
constraints.

Section 3.E.4 Additional information on developing at lower densities has been added to the analysis of non-vacant sites to be redeveloped for residential uses. This includes existing examples of projects proposed at lower densities but
developed at a high density due to the City’s assistance in facilitating mixed-use developments.

B6. While the element quantifies the City’s special needs populations, it must also analyze their special housing needs. The element does not include analysis of available resources nor draw any conclusions on housing need that would lead towards programs. For a complete analysis of each population group, the element should discuss
challenges faced by the population, the existing resources Section 2.E

Section 2.E.7
Additional information on resources has been added to
Section 2 for each identified special needs group.

Including City-provided resources and those provided by local community organizations.

Section 2.E.7 on persons experiencing homelessness
includes a list of organizations and agencies which
50 City of Orange – HCD Response Matrix
September 2021 HCD Response Letter
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to meet those needs (e.g., availability senior housing
units, number of large units, number of deed restricted units, etc.), an assessment of any gaps in resources, and proposed policies, programs, and funding to help address those gaps. In particular, the element should analyze and address how the City is addressing the housing and
service needs of the 341 persons identified as
experiencing homelessness. It is HCD’s understanding
that the City is terminating its contract with Mary’s
Kitchen which provides meals and other services within
the City of Orange. The element should discuss how the
City will be replacing these services or filling the needs gap resulting from the of loss of Mary’s Kitchen within the City.
provide assistance to persons experiencing
homelessness. These organizations are well suited to
cover services lost by the closure of Mary’s Kitchen.

B7. According to the California Housing Partnership, four properties that are at-risk: Friendly Center (8 units), Casas Del Rio (40 units), Walnut-Pixley (Site A) (22 units), and the Knolls Apartments (260 units) of converting to market rate within a ten-year period. As a result, the element must provide an analysis on units identified as at-risk of converting to market-rate housing. The analysis of “at- risk” units must include the following (Gov. Code, §
65583, subd. (a)(9).):
 Listing of each development by project name and
address
 Type of governmental assistance received
 Earliest date of change from low-income use
 Total number of elderly and non-elderly units
 Estimated total cost for producing, replacing, and
preserving the units at-risk
 Identification of public and private non-profit
corporations known to the City to have the legal
Section 3.J.6

Section 3, Table 3-32b
Updated the list of at-risk units. The following properties are not at-risk:
 Walnut-Prixley
 Knolls Apartments

A note has been added to Table 3-32b stating the
Friendly Center is planning on maintaining its
affordability.

51 City of Orange – HCD Response Matrix
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and managerial capacity to acquire and manage
at-risk units
 Identification and consideration of use of federal,
state, and local financing and subsidy programs.

For additional information and sample analysis, see the Building Blocks at http://www.hcd.ca.gov/community-
development/building-blocks/housing-needs/assisted-
housing-developments.shtml and for more information
on identifying units at-risk, see the California Housing Partnership Corporation at
http://www.chpc.net.

Housing Problems
C1. Programs must demonstrate that they will have a
beneficial impact within the planning period. Beneficial impact means specific commitment to deliverables,
measurable metrics or objectives, definitive deadlines, dates, or benchmarks for implementation. Programs
containing unclear language (e.g., “Evaluate”; “Consider”; “Encourage”; etc.) should be amended to include more
specific and measurable actions. Deliverables should
occur early in the planning period to ensure actual
housing outcomes.

To address the program requirements of Government
Code section 65583, subdivision (c)(1-6), and to facilitate implementation, all programs should be revised to
include:
(1) a description of the City’s specific role in
implementation including meaningful actions the city will take to achieve the identified goals, policies, and program objectives;
Section 4, multiple policy
actions.

Section 4, Policy Actions
2G, 4B, and 4E
Specific timeframes added to each program in Section 4.

Policy Action 2G has been updated with a reference to
the section containing the resources and entities that
may assist in preserving affordable units.

Policy Action 4B states the City provides financial
support to the Buena Park and Placentia navigation
centers for operations. This provides regional assistance to Orange County individuals experiencing
homelessness; individuals who may be from the City of
Orange and who may otherwise come to Orange in the
future.

The City assists local individuals experiencing
homelessness by coordinating with local organizations,
2-1-1 Orange County, Orange County Housing Authority
and other government agencies to provide services and
assistance directly to individuals.

52 City of Orange – HCD Response Matrix
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(2) definitive implementation timelines (e.g., December 31, 2024);
(3) objectives, quantified where appropriate; and
(4) identification of responsible agencies and officials (e.g., Planning Assistant, Community Development, etc.).

For example, Policy Action 1A (Acquisition/Rehabilitation of Multifamily Residential Development), Policy Action 2C (Development of Housing for Large Families), 2L
(Candidate Sites Used in Previous Housing Elements) all requires specific timeframes for identified actions. In addition, the following programs require additional
information:

Policy Action 2G (Support Community Housing
Development Organization New Construction Projects):

The element must describe how the City will seek
qualified organizations and more general information on this program.

Policy Action 4B (Homeless Services). The Policy Action states the City provides support for navigation centers in Buena Park and Placentia. The element must describe
how the City supports these navigation centers and how
these navigation centers address and support the housing and service needs of those individuals experiencing
homelessness in the City of Orange.

Policy Action 4E (Support for Persons with Disabilities):

Describe how the City will support housing for persons
with disabilities and work with the regional center to
promote opportunities for supportive living services.

Policy Action 4E – the support supports by working with the Regional Center of Orange County to identify the
housing needs of persons served by the Center,
promoting opportunities for supportive living services
and supporting efforts to eliminate barriers to housing for persons with developmental disabilities.

53 City of Orange – HCD Response Matrix
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C2. As noted in Finding B3, 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. In addition, the element should be revised as
follows:

Policy Action 2E (Facilitate Infill Construction): Provide a specific timeline for evaluating provisions in the Zoning Code for feasibility of providing additional regulatory relief (i.e., streamlined review, reduced and objective development standards, lot consolidations, etc.) In
addition, this program could be expanded to provide
specific provisions to support development of housing on the sites identified in the inventory including the
redevelopment of sites with existing uses identified to accommodate the lower-income RHNA. As existing leases
have been identified as a potential constraint to
developing the nonvacant sites for the lower-income
RHNA, the program could also monitor development on
sites with existing leases as it relates to the provision of housing affordable to lower-income households and
commit to the provision of additional actions as necessary to facilitate development or identify additional sites.

Policy Action 2K (Create ADU Monitoring Program): The
program states that the City will monitor ADU
development progress after 2 years of adopting the 6th
cycle housing element and will take action within six
months to ensure adequate capacity at each income
Section 4, Policy Actions
2E and 2K
See responses to B3 for additional justification and
revisions to the City’s Site Analysis. This did not result in the need for additional programs.

Policy Action 2E updated to include 12 month timeline.

The program has also been revised to include: “The City will monitor the development of infill sites with existing leases as it relates to the provision of housing affordable to lower-income households. The City will review and
establish additional actions or identify additional sites should it be deemed necessary when reviewing the
monitored sites annually.”

Policy Action 2K language clarified to track in relation to affordability assumptions within the Housing Element.
54 City of Orange – HCD Response Matrix
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level. The program should also commit to monitor by
affordability assumptions.

C3. Policy Action 2B (Promotion of Affordable Housing)
indicates the development of housing for lower- and
moderate-income households will be assisted primarily
by applying state density bonus law (SDBL). However, in addition to complying with SDBL, the element must
include a program(s) describing specific actions the City will take to assist in the development of housing
affordable to lower- and moderate-income households,
including extremely low-income households (ELI). For
example, programs could prioritize some funding for the development of housing affordable to ELI households and offer financial incentives or regulatory concessions to encourage the development of a variety of housing types, such as multifamily, SRO units, and supportive housing, to address the identified housing needs for ELI households.

The inclusion of specific programs to assist in the
development of housing affordable to lower-income
households is critical as, per third party comments
received from the Kennedy Commission, the number of
units affordable to moderate- and above moderate-
income households approved in the last seven years was
23 times greater than those approved for low- and very
low-income households.

Section 4, Policy Action
2M
Housing Policy Action 2M has been added. The program
stats:
“The City recognizes the importance of su pporting the
development of housing for low and extremely low income households. While the City does not build housing, it is a primary goal of the Housing Element to support developers and increase the feasibility of development of housing for extremely low and low income households. Actions for this program include the following:
 When funding is available, the City shall subsidize up to 100 percent of the City’s application processing fees
for qualifying developments where all units affordable
to 80% AMI or lower.
 Promote the benefits of this program to the
development community by posting information on its
webpage and creating a handout to be distributed with
land development applications.”

C4. As noted in Findings B4 and B5, the element requires a complete analysis of potential governmental and
nongovernmental constraints. Depending upon the
results of that analysis, the City may need to revise or add programs and address and remove or mitigate any
identified constraints.

See responses to B4 for additional analysis and programs relating to governmental and nongovernmental
constraints.
55 City of Orange – HCD Response Matrix
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C8. The element includes Policy Action 1B (Monitoring
and Preservation of “at-risk” Units) to monitor the units and provide technical assistance. However, the element
must include specific and proactive actions to preserve the at-risk units.

For example, the program could support applications by
non-profits for funding to purchase at-risk units,
strengthen relationships with the listed non-profits and develop a plan or strategy for quickly moving forward in the case units are noticed to convert to market-rate uses in the planning period, and consider pursuing funding on at least an annual basis. The program could also commit to contacting non-profits immediately to develop a
preservation strategy by a date certain and be ready to quickly act when notice of conversion is received and
monitoring the units to ensure tenants receive proper
notifications.

Section 4, Policy Action 1B Housing Policy Action 1B has been updated to include additional actions.

C9. The element is required to include a program that
incentivizes or promotes ADU development for very low-, low-, and moderate-income households. This can take the form of flexible zoning requirements, development
standards, or processing and fee incentives that facilitate the creation of ADUs, such as reduced parking
requirements, fee waivers and more. Other strategies
could include developing information packets to market
ADU construction, targeted advertising of ADU
development opportunities or establishing an ADU
specialist within the planning department.

Section 4, Policy Action 2J Housing Policy Action 2J has been updated to include provisions for the creation of an information packet on ADUs to be available at City Hall.

The program states: “The City of Orange will continue to permit construction of accessory dwelling units
consistent with State law. The City has incorporated new legislation regarding ADU development into the
Municipal Code and will continue to make updates to the City’s Municipal Code to reflect new State laws as
required.

The City will develop an informational packet to be
available to the public at City Hall. The packet will
include processes and key information regarding ADU
development opportunities. The City will continue to
56 City of Orange – HCD Response Matrix
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work with property owners who come forward with
interest in developing ADUs and/or questions regarding
ADUs.”

Quantified Objectives
D. The element must include quantified objectives to
establish an estimate of housing units by individual
income category that can be constructed, rehabilitated, and conserved over the planning period.

Section 4, Table 4-1 Quantified objectives are provided by income category in Table 4-1.

Public Participation
E. While the element includes a general summary of the
public participation efforts, it must also demonstrate
diligent efforts were made to involve all economic
segments of the community in the development of the
housing element. The element should be revised to
discuss outreach to lower-income and special needs
groups during the public participation efforts, solicitation efforts for survey responses, and participation in
community workshops. In addition, the element should
also summarize the public comments and describe how
they were considered and incorporated into the element.

For additional information, see the Building Blocks at
http://www.hcd.ca.gov/community-
development/building-blocks/getting-started/public-
participation.shtml.

Section 4, Policy Action 3D

Appendix C

Section 2.E
Housing Policy Action 3D has been added to extend
community outreach effort beyond the Housing Element
Update period with a focus on traditionally under-
represented communities.

A matrix of responses to public review draft comments
has been created and added to Appendix C.

In addition, outreach and resources for special needs
populations has been added to Section 2.

57 Planning Commission Minutes - Final January 3, 2022

5. COMMISSION BUSINESS
None

6. CONTINUED HEARINGS
None

7. NEW HEARINGS

7.1. Public Hearing: General Plan Amendment No. 2022-0001; City of Orange 2021-2029 Housing Element Update
Consultant Nick Chen of Kimley-Horn gave a presentation about the project process.

Chair Simpson opened the public hearing.

Bonnie Robinson, Je'net Kreitner and Adrienne Gladson expressed concerns about the Housing Element meeting affordable housing needs.

Chair Simpson closed the public hearing.

The Commissioners had questions about the following:
· Accessory Dwelling Unit development
· Affordable housing
· Certain Housing Policy Actions
· Transitional housing
· Student housing
· Quality of neighborhoods
· UCI Regents sites
· California Department of Housing and Community Development comments A motion was made by Commissioner Glasgow, seconded by Commissioner Trapesonian to adopt Planning Commission Resolution No. 01-22 entitled:

A Resolution of the Planning Commission of the City of Orange recommending that the City Council approve General Plan Amendment No. 2022-0001 adopting the City of Orange 2021-2029 General Plan Housing Element.

The motion carried by the following vote:

Simpson, Vazquez, Glasgow, Martinez, and TrapesonianAyes:

NoneNoes:

NoneAbsent:

Planning Commission Minutes - Final January 3, 2022

8. ADJOURNMENT
There being no further business, the meeting adjourned at 8:25 p.m.

The next Regular Planning Commission Meeting will be held on Monday, January 17, 2022 at 7:00 p.m., in the Council Chamber.
______________________________
s/Anna Pehoushek
Assistant Community Development Director