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Attachment 7 Planning Commission Staff Report and Draft Minutes, October 16, 2023

Orange City Council
October 30, 2023

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Attachment 7 Planning Commission Staff Report and Draft Minutes, October 16, 2023
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October 30, 2023
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Orange City Council
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Text extracted from the city's file for reading and search. Open the original on cityoforange.legistar1.com. That file is the official record.

Agenda Item
Planning Commission
Item #: 4.2. 10/16/2023 File #: 23-0673
TO: Chair and Members of the Planning Commission
FROM: Anna Pehoushek, Assistant Community Development Director

1. SUBJECT
Public Hearing to consider City of Orange 2021-2029 Housing Element Update and finding of CEQA exemption (General Plan Amendment No. 2022-0001).

2. SUMMARY
A request to re-adopt an updated 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. 18-23 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 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’sRegional 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. The deadline for adoption was February 12, 2022.

The City Council first adopted the updated Housing Element on February 8, 2022 after receiving a “substantial conformance” letter from the California Department of Housing and Community Development (HCD). Upon submittal of the adopted document for state certification, HCD indicated City of Orange Printed on 10/12/2023Page 1 of 4
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that supplemental content was needed to achieve certification related to:
· Homeless support services
· Accessory dwelling units
· Affirmatively furthering fair housing
· Integration and segregation of disadvantaged populations · Development review process and timeframes
· Community outreach
· Measurable and meaningful outcomes for Policy Actions Public comments were submitted to HCD after Council adoption questioning the viability of identified suitably zoned candidate housing sites and noting the lack of inclusion of under-utilized sites (that would need re-zoning) as candidate housing sites.

Staff subsequently prepared a response to HCD and revised the document accordingly to justify the viability of the identified candidate housing sites and provide evidence through citing examples of approved and/or completed projects on infill sites where there was a need to resolve issues with easements, leases and other similar property encumbrances.

Following review and affirmation from HCD that the document revisions were satisfactory and could be made available for public review as required by the state (November 9 through November 16, 2022) additional public comment was received continuing to question the viability of the candidate housing sites. Therefore, HCD directed staff to further bolster the rationale behind site selection and reach out to representative market rate and affordable housing developers and candidate site representatives for confirmation of the rationale.

Consistent with HCD’srecommendations, minor revisions were made to the Housing Element. On February 14, 2023, the City Council adopted the revised Housing Element. The revised document was again submitted to HCD for certification.

Once again, following the Housing Element’s adoption, and prior to HCD certification, third party comments were submitted to HCD of a similar nature to the previously submitted comments. Staff circulated a revised document for the state-required public review from July 19 through July 25, 2023 that generated further comments about site viability as well as a suggestion that the City develop an inclusionary housing program, requiring the incorporation of affordable housing units in new residential development.

Staff has now made further revisions and integrated additional content pertaining to site viability, and also revised the Policy Actions contained in Section 4 of the Housing Element, per HCD’sdirection, as follows:
· Removed three candidate housing sites specifically called into question. · Increased density assumptions on other candidate housing sites that are the subject of active developer interest.
· Revised Housing Policy Action 2E to reference adoption of Objective Design Standards and a Transfer of Development Rights Ordinance that are presently under preparation by the Planning Division as efforts that will be taken to facilitate infill housing construction. Language has also been added to acknowledge on-going City efforts to promote the integration of housing on under- utilized commercial sites by providing staff assistance and application of available zoning tools City of Orange Printed on 10/12/2023Page 2 of 4
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78 Item #: 4.2. 10/16/2023 File #: 23-0673
utilized commercial sites by providing staff assistance and application of available zoning tools (e.g., density bonus, small lot subdivision) and other streamlining measures.

Added Housing Policy Action 2O to acknowledge the City’swillingness to explore the development of an inclusionary housing ordinance midway through the Housing Element planning period should the other incentives, streamlining mechanisms and outreach efforts fall short of producing the low- and very low-income housing units identified in the Regional Housing Needs Assessment (RHNA) allocation.

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 RHNA to show our viability to construct 3,936 dwelling units at varying affordability income levels. The affordability breakdown for the City’sRHNA is provided below:

City of Orange Housing Needs 2021-2029
Income Category (% of County Area Median
Income)
Number of Units Percent
Very Low (21 to 50%) 1,067 27.1%
Low (51 to 80%) 604 15.3%
Moderate (81 to 120%) 677 17.2%
Above Moderate (over 120%) 1,588 40.4%
Total 3,936 100%
Note: The 2021 area median income in Orange County is $106,700.

A complete overview of the Housing Element content and update effort is provided in Attachment 5 to this report.

7. ANALYSIS AND STATEMENT OF THE ISSUES
Over the past eight months staff has engaged with the state on multiple occasions and made a good faith effort to address public comment and HCD feedback on the Housing Element content and candidate housing sites. Based on coordination with HCD, the staff expects the revised document to achieve Housing Element certification.

8. PUBLIC NOTICE
A Public Hearing notice was published in the Orange County Register on October 6, 2023 and posted at City kiosks. Interested parties and Housing Element commenters 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, City of Orange Printed on 10/12/2023Page 3 of 4
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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 18-23 (including Revised Housing Element Update, October 2023 with tracked changes)
· Attachment 2 City Council Resolution No. 11431, February 14, 2023 · Attachment 3 City Council Resolution No. 11378, February 8, 2022 · Attachment 4 Planning Commission Resolution No. PC 01-22, January 3, 2022 · Attachment 5 Planning Commission Staff Report, January 3, 2022 City of Orange Printed on 10/12/2023Page 4 of 4
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80 City of Orange
Planning Commission
October 16, 2023

MINUTES - DRAFT
The Planning Commission of the City of Orange, California convened on Monday, October 16, 2023, at 5:30 p.m. in a Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.

1. OPENING/CALL TO ORDER
Chair Vazquez called the meeting to order at 5:31 p.m.

1.1 PLEDGE OF ALLEGIANCE
Commissioner Tucker led the flag salute.

1.2 ROLL CALL

Present: Martinez, Simpson, Vejar, Maldonado, Tucker, McCormack, and Vazquez

Absent: None

2. PUBLIC COMMENTS
None.

3. CONSENT CALENDAR

3.1. Approval of meeting minutes of the City of Orange Planning Commission Regular Meeting held on October 2, 2023.

ACTION: Approved minutes as presented.

Approval of the Consent Calendar
Note: Chair Vazquez abstained from voting on the October 2, 2023 minutes, as he was not present at that meeting.

A motion was made by Vice Chair Martinez, seconded by Commissioner McCormack to approve the Consent Calendar as presented. The motion carried by the following vote:

Martinez, Simpson, Vejar, Maldonado, Tucker, and McCormackAyes:

NoneNoes:

NoneAbsent:

VazquezAbstain:

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Draft
Planning Commission Minutes - Draft October 16, 2023

4. NEW BUSINESS

4.1. Public Hearing to consider a request by M Orange, Inc. (Robert Tien) to serve beer and wine for on -site consumption at an existing restaurant located at 1952 N. Tustin Street and finding of CEQA Exemption (Conditional Use Permit No . 3204-23).

Chair Vazquez opened the public hearing.

Public Speakers:

The following spoke on behalf of the project:

Robert Tien, Owner.

Chair Vazquez closed the public hearing.

A motion was made by Commissioner Tucker, seconded by Commissioner Simpson, to adopt Planning Commission Resolution No. PC 17-23.

Resolution No. PC 17-23. A Resolution of the Planning Commission of the City of Orange approving Conditional Use Permit No. 3204-23, allowing beer and wine sales for on -site consumption in conjunction with a new State of California Department of Alcoholic Beverage Control (ABC) Type 41 license (On-Sale Beer and Wine - Eating Place) at an existing restaurant located at 1952 N. Tustin Street.

The motion carried by the following vote:

Martinez, Simpson, Vejar, Maldonado, Tucker, McCormack, and VazquezAyes:

NoneNoes:

NoneAbsent:

4.2. Public Hearing to consider City of Orange 2021-2029 Housing Element Update and finding of CEQA exemption (General Plan Amendment No. 2022-0001).

Chair Vazquez opened the public hearing
Public Speakers:

Lirio Sanchez spoke in opposition to adopting the resolution.

Chair Vazquez closed the public hearing.

A motion was made by Chair Vazquez, seconded by Vice Chair Martinez, to adopt Planning Commission Resolution No. 18-23.

Resolution No. PC 18-23. 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 Housing Element.

The motion carried by the following vote:

Martinez, Simpson, Vejar, Maldonado, Tucker, McCormack, and VazquezAyes:

NoneNoes:

NoneAbsent:

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Draft
Planning Commission Minutes - Draft October 16, 2023

5. ADJOURNMENT
There being no further business, the meeting was adjourned at 5:57 p.m.

The next Regular Planning Commission meeting will be held on November 6, 2023 at 5:30 p.m., in the Council Chamber, 300 E. Chapman Avenue, Orange California 92866.
_____________________________________
Anna Pehoushek
Assistant Community Development Director

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