CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
9/25/2023
1 SUBJECT:
Joint study session of City Council and Planning Commission to consider and provide direction on the Draft 2023-2031 Housing Element of the General Plan.
RECOMMENDED ACTION:
Receive a presentation and provide direction regarding the Draft 2023-2031 Housing Element of the General Plan.
STAFF CONTACT:
Christian Murdock, AICP, Planning Director
(650) 738-7341
[email protected]
BACKGROUND/DISCUSSION:
State law requires every city and county to adopt a housing element that is substantially compliant with state housing law as part of its general plan. The requirement to adopt an updated housing element occurs every eight years as part of the Regional Housing Needs Allocation (RHNA) process. Currently, local agencies are adopting housing element updates to address the 6th Cycle RHNA, which in the Bay Area region covers the period from 2023-2031.
The City Council and Planning Commission held a joint study session to discuss the Housing Element Update (HEU) on March 21, 2023 (agenda report; meeting video; minutes). The agenda report for that joint study session includes additional background on the contents of the Draft Housing Element, the City’s RHNA, policies and programs, and community engagement.
Feedback provided at the joint study session included suggested revisions to the Housing Sites Inventory and the proposed Policies and Programs.
Subsequent to the March 21 joint study session, staff prepared revisions to the Draft Housing Element based on the City Council and Planning Commission feedback provided as well as public comments received during the public review and comment period that occurred from February 24 through March 27. Staff transmitted an updated Draft Housing Element inclusive of all revisions to the California Department of Housing and Community Development (HCD) for a 90-day review period on May 10, 2023 (Attachment A). The cover letter and complete first draft transmitted to HCD are also available on the Project Documents page of PlanPacifica.org.
Actions During HCD Review Period
Staff’s work on the HEU continued during the 90-day HCD review period which ran through most of May, all of June and July, and part of August. The work prioritized actions in furtherance of the rezoning required to accommodate the RHNA. These activities included a June 19 discussion (meeting video) by the Planning Commission of objective development standards (ODS). The Planning Commission had two additional discussions on ODS on August 21 (meeting video) and September 5 (meeting video). The ODS discussed by the Planning Pacifica City Council 2
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Commission included height, setbacks, lot coverage, floor area ratio (FAR), open space per dwelling unit, and off-street parking standards that should apply to the various sites in the Housing Sites Inventory. These six ODS will provide the basic framework to guide development of the sites in the Housing Sites Inventory and will be brought forward for adoption concurrently with the “Phase 1” rezoning action in 2024, as described in Program HE-I-1, which is necessary to accommodate the City’s RHNA. Additional ODS will be considered as part of the Phase 2 rezoning action described in Program HE-I-2.
City staff also met with HCD staff assigned to review Pacifica’s Draft Housing Element on July 7 and July 27. The meetings provided City staff an opportunity explain the approaches to sites and programs contained in Pacifica’s Draft Housing Element, as well as the challenges and constraints that informed the approaches. City staff was able to answer numerous HCD staff questions and also heard HCD’s perspectives on key themes that must be addressed in a housing element in order to be certified by HCD.
HCD Comment Letter
The City received HCD’s comment letter on the first Draft Housing Element on August 8, 2023 (Attachment B – red numbering assigned by staff to aid references in this staff report). The letter included nearly 40 distinct comments on various provisions of the Draft Housing Element.
Overall, staff assesses that HCD’s comments were generally as expected, and Pacifica did relatively well as compared to HCD comments made to other San Mateo County jurisdictions’ first submittals. Staff believes there are reasonable responses that can be prepared to address all HCD comments in the next Draft Housing Element submission. However, some responses will require new or modified policy approaches as compared to those previously discussed with the City Council and Planning Commission. Staff has outlined these key policy items and proposed responses to HCD in the next section of the staff report. The purpose of tonight’s joint study session is to receive direction regarding these new or modified policy approaches so that staff can revise the Draft Housing Element before returning to Planning Commission and City Council for adoption and re-transmittal to HCD, as described in the “Next Steps” section below.
Key Policy Items for City Council and Planning Commission Discussion This City Council-Planning Commission joint study session is intended to provide an opportunity for these decision makers to ask questions and provide direction on preparation of the revised Draft Housing Element and the proposed responses set forth below. It is also intended to provide an additional public input opportunity for the community. The public is also invited to submit written public comments at [email protected].
The table below summarizes key policy items on which staff requires City Council and Planning Commission feedback. Staff is presenting these key items for discussion because decision maker input is needed to guide staff’s work. Other comments from HCD that are not included below do not require decision maker input at this time because existing Council guidance is clear to formulate the responses. The Planning Commission and City Council will have the opportunity to consider the entirety of the Draft Housing Element at future public hearings prior to adoption.
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Comment Number
& Description
Discussion & Staff Recommendation
B.3.1
Reorganization of
Housing Sites
Inventory
HCD has asked for more clarity on which sites in the Housing Site Inventory the City is counting towards its RHNA obligations and which sites are considered as surplus or “buffer” sites. Staff has restructured the Housing Sites Inventory to provide clarity on this point as demonstrated in Attachment C. These changes, along with others such as those necessary to address HCD comments on infrastructure constraints (Comment B.3.9), suitability of nonvacant sites (Comment B.3.4), have resulted in some changes to the numbers of units in each income category and the total number of units proposed for inclusion in the Housing Site Inventory, as shown in the table below.
For purposes of this table, “Core RHNA” sites are those indicated as necessary to comply with the City’s RHNA. “Surplus Sites” are those not required to comply with the City’s RHNA but which count towards the City’s buffer above the RHNA. Ample buffer units are important to ensure the City’s ongoing compliance with “No Net Loss” provisions of state law.
Lower Income Moderate
Income
Above
Moderate
Income
TOTAL
RHNA
Requirement
848 291 753 1,892
Core RHNA 851 312 898 2,061
Surplus Sites* 538 145 363 1,046
TOTAL 1,386 436 1,116 2,938
Buffer Above
RHNA
63% 50% 48% 55%
* The Surplus Sites figures include the following numbers of units from Core RHNA sites in excess of the required RHNA: Lower Income - 3 units; Moderate Income - 21 units; and, Above Moderate Income - 145 units.
A map showing the updated Housing Site Inventory is included as Attachment D. This updated map distinguishes between Core RHNA sites, Surplus Sites, and Sites with Existing Capacity.
B.3.2.B
AB 2011 Sites
The Draft Housing Element relied on the provisions of Assembly Bill (AB) 2011 that established a by-right development process for qualifying sites locating along major highways. The Draft Housing Element had identified seven sites along the Highway 1 corridor:
1. Site 10: 4275 Coast Hwy, Lumberyard
2. Site 12: Former Caltrans right-of-way, now private property
3. Site 18: Linda Mar Park & Ride
4. Site 27: Pacific Manor Shopping Center
5. Site 32: Brentwood Shopping Center
6. Site 34: Vallemar Station
7. Site 36: Sea Bowl
However, HCD commented that the City must include local examples of sites Pacifica City Council 4
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redeveloping with qualifications similar to those required under AB 2011, in order to demonstrate that the sites could qualify for development under AB 2011. Due to the recency of the law (it was enacted in 2022), and the City’s maximum development density of 21.8 dwelling units per acre under the previous 1980 General Plan, the City is unable to provide this analysis.
Alternatively, HCD indicated the City could rezone to the assumed 60 dwelling units per acre for these sites. Based on the reorganization of the Housing Site Inventory as described above under Comment B.3.1, the following sites would be rezoned to 60 dwelling units per acre:
CORE RHNA SITES
1. Site 10: 4275 Coast Hwy, Lumberyard (49 units, Moderate)
2. Site 18: Linda Mar Park & Ride (54 units, Lower)
3. Site 27: Pacific Manor Shopping Center (115 units, Above Moderate with Below-market Rate Inclusionary)
4. Site 32: Brentwood Shopping Center (97 units, Lower)
SURPLUS SITES
5. Site 12: Former Caltrans, now private (169 units, Lower)
6. Site 34: Vallemar Station (97 units, Lower)
7. Site 36: Sea Bowl (219 units, Above Moderate with Below-market Rate Inclusionary)
A decision not to rezone these sites to 60 dwelling units/acre density may require increases in density on other sites in the Housing Site Inventory.
B.3.9
Infrastructure
Constraint
(Rockaway Beach
Pump Station)
HCD commented on the infrastructure constraint identified in the Draft Housing Element related to wet-weather capacity of the Rockaway Beach Pump Station, a sewer pump station used to convey wastewater from the pump station’s catchment area to the Calera Creek Water Recycling Plant. The approximate catchment area is included as Attachment E.
In response, staff revised the Housing Site Inventory to dramatically reduce the number of units in the catchment area from approximately 700 to approximately 180 units. Staff is continuing to analyze whether this reduction in units, combined with already planned capital improvements to replace all sewer main lines in the catchment area, will result in a sufficient reduction in inflow and infiltration (I&I) to accommodate the new sewer flows generated by the 180 units included in the catchment area in the Housing Site Inventory. I&I during rainfall events is the most significant contributing factor to the Rockaway Beach Pump Station capacity limitation, which the sewer main line replacement is intended to address. The pump station has sufficient capacity during periods of dry weather.
Without pursuing this analytical approach, revisions to the Housing Site Inventory would be necessary to relocate the approximately 180 units of capacity to other areas in the city.
B.2 & C.2 HCD commented that additional analysis is needed to ensure the unique housing needs of farmworkers are addressed in the Housing Element. Staff intends to identify any Pacifica City Council 5
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Farmworker
Housing
existing service providers along the coastside that support farmworker housing needs to gain greater insight into potential farmworker housing needs in Pacifica.
In addition, the Housing Site Inventory includes two sites that can accommodate farmworker housing with their existing A (Agriculture) zoning classification:
1. Site 23: Sanchez Art Center (City-owned)
Surplus Site
130 Lower Income Units
2. Site 37: St. Peter Catholic Church, 700 Oddstad Blvd.
Core RHNA Site
24 Lower Income Units
B.2
Affirmatively
Furthering Fair
Housing (AFFH):
Mobility Support
and Transit
Advocacy
HCD commented that additional analysis of special housing needs is required. The Draft Housing Element identified particular need for persons with disabilities including a developmental disability, with some concentration of persons with these needs observed in northern Pacifica.
Staff proposes multiple activities to undertake a broad-based approach to addressing the housing needs of persons with disabilities including a developmental disability:
• Support improvements to public transit routes, services and facilities to facilitate longer distance travel. Activities would include encouraging SamTrans to improve service coverage, frequency, and operating hours in these areas, in part by helping the agency better understand where this special needs population is located in Pacifica.
• Commit the City’s representatives on the regional Association of Bay Area Governments (ABAG) and City/County Association of Governments of San Mateo County (C/CAG) boards and committees to more actively advocate for transportation and transit planning improvements in Pacifica. • Continue capital investments in sidewalk and bike lane projects with priority in the identified areas of need to improve mobility and access to employment opportunities.
Staff would welcome additional ideas on how to address the needs of the disabled population in Pacifica, and particularly in northern Pacifica.
B.3.2.C
100%
Nonresidential Sites
HCD commented that the City’s Housing Site Inventory included commercial sites that allow residential use, but that also would allow 100% nonresidential uses such as commercial offices or retail. HCD’s concern may be related to other jurisdictions in the Bay Area where strong commercial development demand, such as for biotech offices, may result in commercial-only development of mixed-use sites. Staff does not believe market conditions in Pacifica are likely to result in these types of development outcomes in the eight-year Housing Element cycle. However, a response to HCD’s comment is still necessary.
Staff will prepare a program to revise the City’s Zoning Regulations to clarify that for sites identified in the Housing Site Inventory, a 100% residential project would be a permitted use in these zoning districts.
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Staff will also continue to utilize other tools permitted by law to maximize the opportunity for mixed residential and commercial uses on these sites to ensure balanced land use and economic vitality in the city. Tools will include the specific land use diagrams prepared in the Draft Housing Element that identify subareas of certain sites where 100% residential uses would be permitted, but outside of which commercial uses may be permitted.
B.3.3
Site Consolidation
Program
HCD commented that some sites in the Housing Site Inventory are comprised of more than one parcel, and that the Housing Element should include incentives to facilitate small-lot consolidation.
Staff will prepare a program that would commit up to $10,000 in City grant funding towards the City processing costs associated with a standalone application for lot merger on a site included in the Housing Site Inventory. The funds would be sourced from the newly-created Housing Action Fund.
B.3.5 & B.3.6
Surplus Lands Act
for City/School
District/Caltrans
Sites
HCD commented that additional detail is needed on the City’s commitments to prepare publicly-owned (i.e., City and school district) and Caltrans-owned properties for housing development within a reasonable period of time, generally understood to be three years.
Staff will prepare the required detail to commit to completion of the Surplus Land Act (SLA) and other required processes for City-owned sites, coordination with the Pacifica School District and Jefferson Union High School District to complete the SLA process for school district-owned sites, and completion of the decertification process for Caltransowned sites within three years from the start of the planning period. This commitment will also include identification of alternative sites after the third year if these required actions do not occur as intended.
These commitments could require the City to undertake mid-housing element cycle rezoning activities and amendments to the Housing Element. One alternative would be to remove these sites from the Housing Site Inventory, although doing so would require relocating significant numbers of housing units to other sites before it is clear whether the City will be successful in its commitments.
B.3.10.A
Emergency Shelter
Zoning
HCD commented unexpectedly that it contends the City is not compliant with Senate Bill (SB) 2 provisions that were required during the 4th Cycle RHNA and as a result, the City’s Housing Element cannot be found in substantial compliance with state law until zoning amendments are made. Rather than dispute HCD’s contention, staff intends to prepare the requisite emergency shelter ordinance to satisfy HCD.
City staff has already discussed this matter with HCD staff, who offered several helpful recommendations on how to efficiently address these requirements. Staff has started preparation of an emergency shelter ordinance and estimates the first public hearing at the Planning Commission could occur in October or November. Adoption of an emergency shelter ordinance satisfactory to HCD will be necessary prior to Housing Element adoption and HCD certification.
B.3.10.B
Zoning for
HCD commented that transitional housing and supportive housing must be permitted as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone.
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Transitional and
Supportive Housing Staff intends to undertake the required zoning amendments as part of a program to be implemented following Housing Element adoption.
B.3.10.C
Accessory Dwelling
Unit (ADU) Zoning
HCD commented that in its assessment, the City’s ADU ordinance needs to be amended to comply with state law. The items noted by HCD are relatively minor components of the ADU ordinance and staff intends to undertake the required zoning amendments as part of a program to be implemented following Housing Element adoption.
B.3.10.D
Single-Room
Occupancy (SRO)
Zoning
HCD commented that additional analysis is needed to confirm that single-room occupancy (SRO) units are indeed permitted under the definition of “boardinghouse” as stated in the Draft Housing Element.
Staff notes the definition of “boardinghouse” does not explicitly indicate that it includes the SRO use, and intends to undertake a zoning amendment as part of a program to be implemented following Housing Element adoption to add “SRO” to the definition.
Boardinghouses are currently allowed as a conditional use subject to approval of a use permit in the R-3 (Multiple-Family Residential) zoning district.
B.4.1
Off-street Parking
Minimum
Requirements
HCD commented that off-street parking standards for studio and one-bedroom housing units present a constraint to housing development, and recommends requiring only one off-street parking space for these small unit types.
Staff intends to undertake a zoning amendment as part of a program to be implemented following Housing Element adoption to reduce the off-street parking requirement for studio and one-bedroom units to one parking space (covered or uncovered, with no guest parking requirement) from the current requirement of one space for each studio and 1 ½ spaces for each one-bedroom unit, with at least one of the required off-street parking spaces per unit located in a garage or carport. Guest parking is required at the ratio of one space for each four units.
Consistent with the Planning Commission’s recent ODS discussions, off-street parking for other unit sizes would generally be revised to align with the parking standards in the Sharp Park Specific Plan.
B.4.3.A
Permits & Findings
for Housing
Approvals
HCD commented that the required discretionary permits and associated findings for housing approvals are redundant and include findings that invoke subjective judgments about project consistency. The comment calls for simplifying the required discretionary permits and simplifying the required findings to focus on objective criteria with the intent to reduce processing timelines.
Staff has not yet fully analyzed potential options to address this comment. However, staff intends to prepare zoning revisions to address the spirit and intent of this comment, such as by reducing the number of required discretionary permits for certain housing projects, and simplifying the number and subject matter of required findings for approval of necessary discretionary permits. In addition, the ODS that will be adopted in the Phase 1 and Phase 2 rezoning processes described in Programs HE-I-1 and HE-I-2, respectively, will ensure objective standards are adopted to guide the City’s review of housing projects.
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B.4.3.B
Planned
Development (P-D)
Zoning
HCD commented that the development process associated with the Planned Development (P-D) zoning district, which includes mandatory legislative actions that introduce significant City discretion into the development review process, presents a potential constraint to housing development. These instances occur where the P-D zoning classification is applied to a property or when rezoning to P-D is required due to presence within the Hillside Preservation District (HPD) overlay district.
Staff intends to analyze where properties may be in an undeveloped condition and i) have the P-D zoning classification, or, ii) are located within the HPD overlay district. The Phase 2 rezoning program will propose rezoning of properties in the former category to a non-P-D zoning classification. Staff also intends to revise the findings associated with project approvals in the P-D (similar to the analysis and revisions described in Comment B.4.3.A, above) to focus on objective standards compliance which will streamline project review and approval for sites located in the HPD overlay district.
B.4.6.B
Group Homes for
7+ Persons
HCD commented that the 500-foot spacing requirement and use permit requirement (a discretionary permit) for group homes with seven or more occupants presents a constraint on housing for persons with disabilities.
Staff intends to undertake a zoning amendment as part of a program to be implemented following Housing Element adoption to remove the 500-foot spacing requirement and apply the same types of zoning standards to group homes with seven or more persons as would apply to other similar housing types in the same zoning district.
C.4
AFFH: Affirmative
Marketing Strategy
in Racial
Concentrated Areas
of Affluence (RCAA)
HCD commented that the City must undertake actions that are significant and meaningful enough to overcome identified patterns and trends of past and ongoing housing discrimination particularly in areas identified as RCAAs.
Staff intends to implement a program that would strengthen existing affirmative marketing strategies for affordable housing units located within RCAAs to market units to lower income households by developing standard City-required marketing activities by housing developers for new or available BMR or low income units, for example, by adding schools outside the RCAA to the required recipient list for application solicitations. Staff believes this would increase the chances of people and especially families with children outside the RCAA to learn about affordable housing opportunities within the RCAA.
D.1
Housing
Rehabilitation
HCD commented that the Housing Element must include sufficient objectives for housing rehabilitation. Rehabilitation includes actions to improve the physical condition of housing units (exterior and interior) to prevent them from becoming uninhabitable or restoring them to habitable condition.
The City does not have a dedicated housing program staff member to manage a rehabilitation program. However, property maintenance complaints currently are received by the Code Enforcement Division of the Planning Department. Staff intends to include a program in the Housing Element that would initiate a proactive property identification program whereby the City’s code enforcement staff would identify properties in need of significant maintenance – prior to receipt of a complaint and initiation of enforcement activity – to ascertain with property owners and occupants any underlying reasons for the degraded property condition, and connection with available Pacifica City Council 9
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local, state, and federal resources that can assist with property rehabilitation. The number of housing units that could be rehabilitated has not yet been estimated by staff.
However, the Housing Element will include an estimate of realistic capacity based on consultation with the Senior Code Enforcement Officer.
Community Engagement
Public input has been an important part of the process to prepare the Draft Housing Element.
The City has provided numerous public input opportunities that have included online and inperson engagements. The community engagement strategy was developed with City Council input and the City Council approved the strategy on August 8, 2022. The City held three community meetings in late-2022 (one online and two in-person) to seek community input for the Housing Element Update (HEU) to address RHNA 6 and guide its work to prepare the Draft Housing Element.
The City also conducted a City Council-Planning Commission joint study session on March 21, 2023, provided a written public review and comment period from February 24 through March 27, 2023, and held three Planning Commission meetings to discuss ODS on June 19, August 21, and September 5, 2023.
A full discussion of the extensive community engagement process undertaken through transmittal of the Draft Housing Element to HCD for review is included in Appendix A:
Community Consultation of the Draft Housing Element (Attachment A).
Next Steps
Feedback from the City Council and Planning Commission on the items described above is essential to staff’s revision of the Draft Housing Element in response to HCD’s August 8 comment letter. Following this study session, staff will revise the Draft Housing Element to incorporate the feedback received. Staff estimates that preparation of the next draft of the Draft Housing Element will take another four to six weeks after the study session.
Once the Draft Housing Element has been updated, staff will release a Negative Declaration for public review and comment to comply with the California Environmental Quality Act (CEQA), followed by scheduling Planning Commission and City Council public hearings to consider adoption of the Housing Element. Adoption of the Housing Element after revisions in response to HCD’s comment letter is consistent with the actions taken by other Bay Area jurisdictions following receipt of their HCD comment letters. Following adoption, staff will then transmit the adopted Draft Housing Element to HCD for a 60-day review period. The potential exists for HCD to have additional comments on the adopted Housing Element which may require further revisions. Staff will request that the Council, when adopting the Housing Element, authorize staff to make revisions that are requested by HCD to achieve certification and that are consistent with Council direction. More substantive revisions could require readoption before the City achieves certification.
ALTERNATIVE ACTION:
This is a study session and staff is requesting input from the City Council and Planning Commission. Adoption of the Housing Element will occur at a future public hearing with public notice provided as required by law.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
The Housing Element Update is consistent with the following item(s) in the Council-adopted Strategic Plan and Priority Work Plan for FY 2023-24:
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● Goal 3: Prioritize protection and development of affordable housing. ○ Strategy A: Complete the Housing Element Update.
FISCAL IMPACT:
There is no direct fiscal impact from the joint study session.
ORIGINATED BY:
Planning Department
ATTACHMENT LIST:
Attachment A - Draft Housing Element - May 10, 2023 (HCD Review Version) (PDF) Attachment B - HCD Comment Letter on First Draft Housing Element (with numbering) (PDF) Attachment C - Revised Housing Site Inventory Tables (DOCX) Attachment D - Revised Housing Site Inventory Map (PDF) Attachment E - Rockaway Beach Pump Station Catchment Area Map (PDF)