Agenda Item
City Council
Item #: 3.1. 10/30/2023 File #: 23-0500
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, 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. The revised Housing Element must be re-adopted by the City Council for final submittal to the State of California Department of Housing and Community Development for certification.
3. RECOMMENDED ACTION
Adopt Resolution No. 11498. A Resolution of the City Council of the City of Orange approving General Plan Amendment No. 2022-0001 adopting the City of Orange Sixth Cycle (2021-2029) Housing Element.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community c. Support and enhance attractive, diverse living environments.
6. DISCUSSION AND BACKGROUND
The Housing Element is one of the chapters or “elements”of the City’sGeneral Plan required by State law. The Housing Element establishes the City’sofficial policies related to housing. Pursuant to state law, it is also required to plan to accommodate new housing development consistent with the City’s Regional Housing Needs Assessment (RHNA) allocation. The Housing Element was last updated in January 2014 and covered the 2014 through 2021 planning period. State law requires the City of Orange Printed on 10/26/2023Page 1 of 3
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Item #: 3.1. 10/30/2023 File #: 23-0500
Housing Element be updated to cover the 2021 through 2029 planning period.
The City Council first adopted the updated Housing Element on February 8, 2022, after receiving a letter from the California Department of Housing and Community Development (HCD) indicating that the document was found to substantially comply with State law. Detailed information about the content of that document is provided in Attachment 8. Upon submittal of the adopted document for state certification, HCD indicated 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. Following review and affirmation from HCD that the document revisions were satisfactory, on February 14, 2023, the City Council re-adopted the revised Housing Element. The revised document was again submitted to HCD for certification.
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 incorporated revisions and integrated additional content pertaining to site viability, and revised the Policy Actions contained in Section 4 of the Housing Element, per HCD’s direction, 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 (e.g., density bonus, small lot subdivision) and other streamlining measures. · Added Housing Policy Action 2O to acknowledge the City’s willingness 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 City of Orange Printed on 10/26/2023Page 2 of 3
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Item #: 3.1. 10/30/2023 File #: 23-0500
producing the low- and very low-income housing units identified in the RHNA.
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 staff’scoordination with HCD, the Housing Element document has been revised to achieve substantial compliance and certification.
8. ENVIRONMENTAL REVIEW
The Housing Element update is exempt from the California Environmental Quality Act (CEQA) as follows: (i) pursuant to Section 15061(b)(3) of the State CEQA Guidelines (Common Sense Exemption) because it can be seen with certainty that there is no possibility that the proposed 2021- 2029 Housing Element Update would have a significant effect on the environment; (ii) no property re- zoning is needed to accommodate the City’s Regional Housing Needs Allocation, and potential residential development densities have already been analyzed and mitigated in an earlier Environmental Impact Report (the Program Environmental Impact Report prepared for the 2010 Comprehensive General Plan Update, State Clearinghouse No. 2006031117); and (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.
9. ATTACHMENTS
· Attachment 1 Resolution No. 11498 including Exhibit A, Revised 2021-2029 Housing Element (clean), October 2023
· Attachment 2 Revised Draft 2021-2029 Housing Element Update (tracked changes), October 2023
· Attachment 3 HCD Substantial Compliance Letters, September 9, 2023, January 27, 2023, April 12, 2022 and September 13, 2021
· Attachment 4 City Council Resolution No. 11431 adopted February 14, 2023 · Attachment 5 City Council Resolution No. 11378 adopted February 8, 2022 · Attachment 6 Planning Commission Resolution No. PC 18-23 (signature pending) · Attachment 7 Planning Commission Staff Report and Draft Minutes, October 16, 2023 · Attachment 8 Planning Commission Staff Report and Minutes, January 3, 2022 City of Orange Printed on 10/26/2023Page 3 of 3
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