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 29, 2023
Tom Kisela, City Manager
City of Orange
300 E. Chapman Ave.
Orange, CA 92866
Dear Tom Kisela:
RE: City of Orange 6
th Cycle (2021-2029) Draft Housing Element
Thank you for submitting the City of Orange’s (City) revised draft housing element update received for review on July 31, 2023. In its review, HCD also considered letters and email communications received from the City on March 22, 2023, April 10, 2023, June 20, 2023, and September 22 and 27, 2023. 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 conversations with you; Russell Bunim, Community Development Director; Anna Pehoushek, Asst.
Community Development Director; Chad Ortlieb, Principal Planner; Mary Binning, City Attorney; and Nick Chen, the City’s consultant. In addition, HCD considered comments received from Loeb & Loeb LLP, People for Housing, and the Kennedy Commission pursuant to Government Code section 65585, subdivision (c).
The revised draft element meets the minimum statutory requirements described in HCD’s April 14, 2023 review. This finding was based on, among other reasons, the additional owner outreach, updated analysis, and added and amended programs, as well as other information submitted to HCD that the City will enter into its housing element prior to adoption.
With regard to revisions, HCD notes the hotel, sheriff facility, and charter school site are no longer counted toward capacity calculations and have been removed from the sites inventory. The City identified 144 newly permitted homes and 218 additional applications submitted since the prior iteration of the housing element. HCD will be actively monitoring to ensure these are approved without delay. Should these projects not be approved, the City will need to identify additional sites to accommodate any shortfall in accordance with Government Code section 65863.
Tom Kisela, City Manager
The City was able to establish additional owner interest in the redevelopment of the shopping mall sites, as well as consult with developer groups. As a result of additional analysis, the Policy Actions were updated to address these constraints and allow for even higher densities on mixed use sites.
These commitments include the adoption of objective development standards to allow for ministerial processing of projects (currently in Program Action 2L); ministerial approval of subdivisions of large parcels (Program Action 2N); specific continual outreach to promote the development of housing on shopping mall sites (Policy Action 3D); and monitoring and identification of new sites if shopping centers are not developed (Policy Action 3F).
To ensure transparency, prior to adoption, the City should incorporate information from its correspondence to HCD into the adopted housing element. This information must include, but is not limited to, examples of recent projects developed on land with existing leases and other encumbrances; inclusion of the updated status on owner conversations showing that all relevant property owners had been contacted and confirmed there was no objection to inclusion in the housing element, and that all were open to the concept of introducing housing to their site; and clarification that Objective Design Standards will be available on sites, not just carryover sites. HCD recommends clarifying the Objective Design Standards by moving this commitment to Policy Action 2E.
Further, in the City’s September 22, 2023 correspondence to HCD, in response to a letter received by the Kennedy Commission, the City committed to amend the draft prior to adoption to add a Policy Action to consider adopting an inclusionary housing ordinance if existing incentives fail to result in affordable housing at levels identified in the Regional Housing Needs Allocation (RHNA).
The housing element will substantially comply with State Housing Element Law (Gov.
Code, § 65580 et seq.) when it has incorporated the additions noted above and is adopted, submitted to, and approved by HCD, in accordance with Government Code section 65585, subdivision (g).
In addition, of particular note for ongoing compliance, HCD will also be monitoring the implementation of Policy Action 2E and 3F. Program 2E commits to monitor the development of infill candidate housing sites as it relates to the provision of housing affordable to lower‐income households and if development does not occur as projected, the City will identify and adopt new incentives, actions, or additional sites annually. Policy Action 3F is specific to the identified shopping mall and office complex properties and commits to rezone or identify additional sites if these properties are not entitled and able to receive building permits for residential uses by mid‐2027.
Tom Kisela, City Manager
For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-community- development/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.
As 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)). Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA. The City must make these findings as part of its adoption resolution. Please see HCD’s Guidance memo (p. 27) for additional information:
https://www.hcd.ca.gov/community-development/housing-element/housing-element- memos/docs/sites_inventory_memo_final06102020.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 must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and a link must be emailed to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.
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 Affordable Housing and Sustainable Communities program, 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.
For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.
Tom Kisela, City Manager
HCD appreciates the hard work and dedication the housing element team provided in preparation of the City’s housing element and looks forward to receiving the City’s adopted housing element. If you have any questions or need additional technical assistance, please contact me at [email protected].
Sincerely,
Melinda Coy
Proactive Housing Accountability Chief
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:
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
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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
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
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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).)
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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
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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,
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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
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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
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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.
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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
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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
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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.
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
J
anuary 27, 2023
R
ob Houston, City Manager
City of Orange
300 E. Chapman Ave.
Orange, CA 92866
D
ear Rob Houston:
RE
: City of Orange 6th Cycle (2021-2029) Revised Draft Housing Element
T
hank you for submitting the City of Orange’s (City) revised draft housing element received for review on November 28, 2022, along with revisions received on January 12, 2023, and January 18, 2023. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on January 18, 2023, with Principal Planner at City of Orange, Chad Ortlieb, and consultants, Nick Chen and Ines Galmiche. In addition, HCD considered comments from Elder Law & Disability Rights Center and Public Law Center pursuant to Government Code section 65585, subdivision (c).
T
he revised draft element, incorporating the revisions submitted, meets the statutory requirements described in HCD’s April 12, 2022, review. The housing element will comply with State Housing Element Law (Article 10.6 of the Gov. Code) when it is adopted, submitted to and approved by HCD, in accordance with Government Code section 65585.
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 must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.
S
everal 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
Rob Houston, City Manager
Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.
Fo
r your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.
HCD appreciates the hard work and dedication of Chad Ortlieb, Nick Chen, and Ines Galmiche in preparation of the City’s housing element and looks forward to receiving the City’s adopted housing element. If you have any questions or need additional technical assistance, please contact Mashal Ayobi, of our staff, at [email protected].
S
incerely,
P
aul McDougall
Senior Program Manager
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
April 12, 2022
Rob Houston, City Manager
City of Orange
300 E. Chapman Ave.
Orange, CA 92866
Dear Rob Houston:
RE: City of Orange’s 6
th Cycle (2021-2029) Adopted Housing Element
Thank you for submitting the City of Orange’s (City) housing element adopted February 8, 2022 and received for review on February 12, 2022. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from Elder Law & Disability Rights Center, the Kennedy Commission, and City residents pursuant to Government Code section 65585, subdivision (c).
The adopted housing element addresses most statutory requirements described in HCD’s September 13, 2021, letter; however, additional revisions are necessary to fully comply with State Housing Element Law (Article 10.6 of the Gov. Code), see enclosed Appendix.
For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), as the City failed to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), any program requiring rezoning to accommodate the regional housing needs allocation (RHNA) must be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i).
Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. During the housing element revision process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate.
Please be aware, any revisions to the element must be posted on the local
Rob Houston, City Manager
government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.
For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
http://opr.ca.gov/docs/OPR_Appendix_C_final.pdf and
http://opr.ca.gov/docs/Final_6.26.15.pdf.
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.
HCD committed to assist 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].
Sincerely,
Melinda Coy
Senior Housing Accountability Manager
Enclosure
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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. Housing Needs, Resources, and Constraints
1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction (Gov. Code, § 65583, subd. (c)(10)(A))
Enforcement and Outreach: While the element includes key themes from outreach efforts, it must still provide data related to the number of lawsuits, enforcement actions, settlements, or judgements related to fair housing or civil rights. This data should be analyzed for any patterns or trends by community area or census tract and include additional local knowledge, relevant factors, and a conclusion of summary of issues. In addition, the element states that the City works with the Fair Housing Foundation to provide fair housing services. However, the analysis must also describe compliance with existing fair housing laws and regulations and include information on fair housing outreach capacity.
Integration and Segregation: While the element discusses its dissimilarity index and includes some information on familiar status and persons with disabilities and does not analyze levels of segregation and integration for race and ethnicity, income, familial status, persons with disabilities for patterns and trends over time. For example, in order to the groups that experience the highest levels of segregation, the element could provide a more detailed categorization of potential concentrations at the block group, census track, or neighborhood level. Additionally, the element must provide regional comparison and analyze for patterns and trends over time.
Racially Concentrated Areas of Affluence (RCAAs): While the element outlines six potential RCAAs (block groups) in the City, it must provide a regional comparison and a concluding discussion of the data to inform policies, goals, actions, and programs.
Access to Opportunity: While the element indicates that the city is a mix of low and moderate resource to high resource, the analysis and discussion must include overlaps
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with socioeconomic patterns. For example, the city could analyze whether low resource census tracts overlap with higher concentrations of racial/ethnic minorities, lower- income households, persons with disabilities, or female-headed households.
Additionally, while the element includes tables for ROI Opportunity Indicators in the City compared to the state, it must show a regional comparison (e.g., to Orange County and/or neighboring cities). Lastly, the analysis must still independently address access to opportunity for education, transportation, economic development and environmental components. This more complete understanding of what types of disparities in access to opportunity exist for what populations and in what geographies is necessary to identify and prioritize contributing factors to fair housing issues and formulation of goals and actions. This analysis must be conducted at a regional and local level and should address substantial differences in access to education, transportation, economic, environment and other important opportunities based on socio-economic characteristics (e.g., race, income, familial status, disability, income, poverty). Patterns over time should be discussed as well as policies, practices, and investments that affect access to opportunity. Local data and knowledge and other relevant factors must be considered, including incorporating public outreach and targeted community engagement (page 34 of affirmatively furthering fair housing (AFFH) Guidance Memo).
Specifically, as mentioned in stakeholder comments, the City should examine low income neighborhoods and opportunities for investment to improve the quality of life and enhance housing options in those neighborhoods and analyze high opportunity areas and provide incentives and programs to encourage affordable housing to be built in areas that have more amenities such as transportation, schools, parks, and healthy food options.
Disproportionate Housing Need: The discussion on homelessness must be expanded to discuss local or regional factors that have contributed to the homeless population and assess changes over time. The analysis does not currently consider the increase in the homeless population in the city compared to the region at large. While the element mentions two regional shelters the city helps fund through the North SPA, (Buena Park Center and Placentia Center), there is no discussion on how many beds are available to the City of Orange. The element lists its collaboration with the police department to assist the homeless population but does not quantify or describe how this program that has been operating since 2013 has helped persons experiencing homelessness obtain services or long-term care towards housing.
Sites Inventory: While the element was revised to indicate where regional housing needs allocation (RHNA) sites are located relative to some socio-economic concentrations, there is no discussion to discuss the magnitude of the impact including the number of units by income group relative to locations or neighborhoods within the City, including any isolation of the RHNA and then address whether sites exacerbate or improve segregation and integration. It appears there are multiple discrepancies in this section as well that impact a meaningful analysis of sites. For example, the element states that 90 percent of total potential RHNA units are located within Low Resource areas (pp. 3-117) and that much of the low and very-low income sites are in areas with
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greater than 40 percent Non-White. This contradicts statements on pp. 3-111 and 3-114 where the element states that the distribution of potential units does not disproportionately impact areas with larger concentrations of Non-White populations and that the proposed candidate sites are evenly dispersed which an emphasis on locating units where there is a high level of access to public transit and services.
Contributing Factors: While the element lists contributing factors as identified by the City, these must be prioritized, giving highest priority to those factors that most limit or deny fair housing choice or access to opportunity or negatively impact fair housing or civil rights compliance.
Local Data, Knowledge, and Other Relevant Factors: The element still lacks local knowledge and relevant factors in each of the fair housing analysis sections. Historical governmental and nongovernmental actions must still be analyzed. The historical context would help explain disparities in each of the contributing factors described on pp. 3-104 and 3-105.
Goals, Priorities, Metrics, and Milestones: The element did not address this finding. The element must be revised to add programmatic actions based on outcomes from a complete analysis. Goals and actions must specifically respond to the analysis such as addressing barriers to integration and segregation patterns in the City 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.
Programmatic actions must have metrics and milestones to evaluate what fair housing results will be achieved and concrete timelines for assessing progress. Actions 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. For more guidance, please refer to the AFFH guidebook pp. 53-56.
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 must still be revised to include an estimation of numbers of units in need of rehabilitation of replacement. A statement about the City’s lack of ongoing code enforcement cases is insufficient to address this finding. The analysis could provide estimates from a recent windshield survey or sampling, estimates from code enforcement agency, or information from knowledgeable builders/developers, including nonprofit housing developers and organizations.
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).)
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The City has a regional housing need allocation (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: While the element was revised to include language from the City’s municipal code which states that residential development is allowed in the Urban Mix Use (UMU) zone, either as part of a mixed-use project or as a freestanding use, the capacity methodology must still account for the likelihood of residential development on sites proposed in the UMU zone. For example, the analysis could evaluate the number of 100 percent commercial projects proposed in the last planning period in the UMU zone and compare to the number of projects with residential.
Suitability of Nonvacant Sites: Additionally, while the element was revised to detail the existing uses on the site, the analysis must still demonstrate the site potential for redevelopment. While the element indicates key indicators for consideration of appropriateness of sites, it does not support reasons why these indicators where selected and how they demonstrate the potential for new residential development on the selected sites. In addition, these factors all related to potential market factors but do not relate to whether the existing uses on selected sites are likely to impede new residential development. For example, the element could analyze and discuss why the charter school is likely to redevelop into residential or expand data and discussion on market trends regarding the discontinuation of existing uses for big box retail stores like Best Buy. The element could also relate the characteristics of the projects listed on Table B-2 to the characteristics of sites within the inventory. As stated in the previous review, 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. For existing malls, while the element lists regional malls within the County that have recently completed planning and entitlement efforts to permit residential uses, the element must still clarify what similar characteristics these malls have with the Outlets at Orange that make such a comparison meaningful. Lastly, while the City stated it removed all UC Regent’s owned cites, the UCI MDA ALS Clinic still remains in the sites inventory. If the site remains, the element must indicate whether this site is expected to be put on a surplus list or if conversations with the Regents has occurred related to potential residential development.
The housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households, therefore the element must demonstrate that the existing uses are not an impediment to additional residential development in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the regional housing need allocation. HCD is not aware that the City has made the appropriate finding. Any future
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re-adoption of the housing element must include the appropriate finding as part of the adoption resolution.
Sites with Zoning for a Variety of Housing Types:
Emergency Shelters: While the element was revised to provide information on Section 17.13.040 of the City’s municipal code as it relates to emergency shelters, these standards must be thoroughly analyzed for constraints and an assessment should be made whether these hinder the development of emergency shelters in the M-1 and M-2 zones and for consistency with Government Code section 65583, subdivision (a)(4)(A). For example, the requirement that emergency shelters be at least 500 feet from any public institutions, not near parks, and must be located within half mile of a transit stop are outside the scope of allowable standards relating to siting of emergency shelters. The element must include a program to amend the zoning ordinance to ensure consistency with state law.
Accessory Dwelling Units: The element did not address this finding. The element shows that accessory dwelling units (ADUs) are conditionally permitted in R-1 through R-5 zones, but ADUs should be permitted in all zones that allow residential.
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.(Gov. Code, § 65583, subd. (a)(5).)
Processing and Permit Procedures: While the element was revised to include general permit processing timeframes for single and multi-family projects on pp. 3-42, it must still analyze this process for constraints by discussing the approval procedure and considerations, as well as discuss types of permitting, level of reviews, and an analysis on impacts on the cost of housing affordability and supply. Please see HCD’s prior review dated September 13, 2021 for more information.
Design Review: While the element was revised to state that Housing Policy Actions 2E and 2L include provisions to evaluate current processing procedures and review the feasibility of additional regulatory relief such as objective development standards, the element must still describe and analyze the current design review guidelines and process. Please see HCD’s prior review dated September 13, 2021 for more information.
Zoning and Fees Transparency: This finding was not met. Please see HCD’s prior review dated September 13, 2021 for more information.
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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 did not address this finding. 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.
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 was revised to expand discussion on challenges faced by the various special needs' populations, identified resources available, and lists organizations and agencies in the community to assist persons experiencing homelessness, it must still state what each of these entities' offers in terms of services and resources for persons experiencing homelessness. Lastly, the element noted that the only shelter within city limits is a family shelter. The element should discuss resources available for persons experiencing homelessness who do not have families and could discuss adoption of policies to increase services – particularly for unaccompanied adults with disabilities or seniors.
B. 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
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agencies and officials responsible for the implementation of the various actions. (Gov.
Code, § 65583, subd. (c).)
Programs must still be revised to 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. All programs must be evaluated to ensure specific action steps to implement policies and attain the set objectives and metrics. Programs containing unclear language (e.g., “Evaluate”; “Consider”; “Encourage”; etc.) should be amended to include more specific and measurable actions and deliverables should occur early in the planning period to ensure actual housing outcomes. Please see HCD’s prior review dated September 13, 2021 for more information.
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 units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding A3, 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 must revise programs to address zoning available to encourage a variety of housing types.
Housing Policy Action 2J and 2K: Development of ADUs: The element is assuming production of 40 ADUs per year for a total of 320 units within the planning period. This projection is more that the average production for the previous four years of 29 per year.
Housing Policy Action 2K monitors the production of ADUs throughout the planning period, in order to support the increase in production levels, Housing Policy Action 2J should include additional resources and incentives to facilitated ADU production. As stated in the previous review 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.
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).)
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The element did not address this finding. While the element includes a number of policy actions that seek to encourage development of lower-income and special needs housing, the element indicate projects will be assisted primarily by applying state density bonus law (SDBL).As stated in the prior review, 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). In addition, as noted in stakeholder comments, the City should ensure that it complies with the most current version of State Density Bonus Law. Please see HCD’s prior review dated September 13, 2021 for more information.
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 Finding(s) A4 and A5, 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.
Constraints on Housing for Persons with Disabilities: While the element was revised to include Housing Policy Action 4F: Housing for Persons with Disabilities to be in compliance with state law, the program should specify that revisions to the zoning ordinance will ensure barrier-free housing choices for persons with disabilities.
5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding A1, the element must include a complete assessment of fair housing. Based on the outcomes of that analysis, the element must add or modify programs.
C. 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)(9).)
City of Orange’s 6th Cycle Adopted Housing Element Page 8 April 12, 2022
While the element was to include Housing Policy Action 3D (Community Outreach) to continue public outreach throughout the planning period, it was not revised to address this finding. As stated in the previous review, the element must include a description of how the City made a diligent effort to achieve public participation from all economic segments of the community, especially low- and moderate-income households. The element could describe the efforts to circulate the housing element among low- and moderate-income households and organizations that represent them and to involve such groups and persons in the element throughout the process. In addition, while the element summarizes the public comments, it must still describe how comments were considered and incorporated into the element.