TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF DEVELOPMENT SERVICES
JANUARY 18, 2022
AGENDA REPORT
SUBJECT: GENERAL PLAN AMENDMENT NO. GPA 2021-01, 2021-2029 HOUSING
ELEMENT UPDATE
FISCAL
IMPACT: None
SUMMARY:
The City of Placentia General Plan was comprehensively updated in October 2019, with the exception of the Housing Element which was adopted in 2014. State planning law mandates that jurisdictions review and update their Housing Elements every eight (8) years in order to remain relevant and useful, and to reflect the community's changing housing needs via their Regional Housing Needs Assessment (RHNA). The 2021-2029 Housing Element will be the "Sixth Cycle" Housing Element. The Fifth Cycle Housing Element covers the planning period from October 2013 to October 2021, and the Sixth Cycle Housing Element will cover the planning period from October 2021 to October 2029. On October 19, 2021, the City Council reviewed the draft Housing Element for the Sixth Cycle and directed Staff to transmit the draft Element to the State for review. At this time, Staff has obtained comments from the State, and prior to completing the final draft of the Element, Staff is seeking direction regarding strategies for creating additional housing capacity to accommodate the RHNA over the next eight (8) years.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Open the public hearing concerning General Plan Amendment No. GPA 2021-01; and
2. Receive the staff report and Staff presentation, and consider all public testimony; and
3. Consider Planning Commission recommendations from January 11, 2022, and provide direction to Staff regarding strategies for creating additional housing capacity to accommodate the RHNA over the next eight (8) years; and
4. Continue the public hearing regarding General Plan Amendment No. GPA 2021-01 (adoption of Housing Element) to March 15, 2022.
2.b.
Jan, 18, 2022
City Council Agenda
January 18, 2022
BACKGROUND:
Every eight (8) years, each city within the Southern California Association of Governments (SCAG) region is required to prepare an update to the Housing Element of the City's General Plan. The current update is referred to as the "6th planning cycle" which spans the 2021-2029 period. The City commenced the 6th cycle Housing Element update effort last year, and the following previous public meetings have been conducted to review Housing Element requirements and housing issues in Placentia:
• June 8, 2021 Planning Commission meeting
• August 24, 2021 Public workshop
• September 14, 2021 Planning Commission meeting
• September 16, 2021 Public workshop
• September 21, 2021 City Council meeting
• October 12, 2021 Planning Commission meeting
• October 19, 2021 City Council meeting
An important difference between the Housing Element and other elements of the General Plan is the extent of State oversight. Under California law, land use and development is generally within the authority of cities through the adoption of policies and regulations in General Plans and municipal codes. However, State law establishes many specific limitations and requirements on city land use authority with regard to housing.
The State legislature has also declared an adequate supply of housing to be a matter of statewide importance and has delegated authority to the California Department of Housing and Community Development ("HCD") to review local government Housing Elements and issue opinions regarding their compliance with State law. Cities must submit Housing Elements to HCD for review both prior to and after final adoption by the City Council. A finding of Housing Element compliance by HCD is referred to as "certification" of the Housing Element. Certification is important to enhance cities' eligibility for grant funds and also to support local land use authority. Recent amendments to State law allow HCD and the California Attorney General to file litigation against cities on the grounds of Housing Element non-compliance, and courts are also authorized to impose fines upon non-compliant cities.
On October 21, 2021 the draft Housing Element was submitted to HCD for review, and on December 20, 2021 HCD issued its review letter (Attachment 1) finding that the draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law.
The purpose of this public hearing is to provide the City Council and community stakeholders an opportunity to review HCD comments upon the draft Housing Element, and discuss how the City will address HCD's comments, with emphasis on how Placentia will accommodate the future housing need that has been assigned through the Regional Housing Needs Assessment (RHNA) process. Additional background information regarding the RHNA is provided in the Frequently Asked Questions and the staff reports for previous meetings, which are posted on the City's Housing Element website at: https:!/placentia.oro/943/2021-2029-Housina-Element-Update.
City Council Agenda
January 18, 2022
HCD FINDINGS
All cities are receiving lengthy Housing Element comment letters from HCD, reflecting the high level of State concern related to the "housing crisis." Some HCD comments can be addressed through clerical or technical revisions to the Housing Element, while other comments involve fundamental land use policy issues. Staff is currently working on proposed revisions to the Draft Housing Element to address HCD's comments.
Some of the most important comments from HCD involve how the City will accommodate future housing needs as assigned through the RHNA process. Because of the exceptionally high RHNA allocations in this Housing Element cycle, many if not most Orange County cities do not currently have sufficient land zoned for housing to fully accommodate the RHNA. As noted in previous meetings, Placentia's 6th cycle RHNA allocation is 4,398 units compared to 492 units in the prior cycle. Under State law, if a city's land use plans and zoning do not demonstrate adequate capacity to accommodate the RHNA, zoning must be amended to create additional capacity.
LAND USE POLICY OPTIONS
The Draft Housing Element (Table B-1, below) estimated that there is currently a shortfall of approximately 1,000 potential housing units as compared to the RHNA based upon current zoning. The Housing Element must identify land use strategies and potential sites that could be rezoned to bridge this shortfall.
Table B-1: Residential Sites Summary
Income Category Very Low Low _ Moderate _ Above Moderate Approved Projects (Table B-2) 187 774
Vacant Sites (Table B-3) - - 496 69
Underutilized Sites (Table B-4) 786 469 257 384
ADUs 14 24 17 1
Total Capacity 800 680 770 1,228
RHNA 1,231 680 770 1,693
Surplus (Shortfall) (431) (465)
Source: City of Placentia, 2021
A key Housing Element policy question for the Planning Commission and City Council is to identify the most appropriate land use strategies for increasing housing capacity. In previous meetings Staff has discussed some possible options for expanding housing opportunities. The following table summarizes potential strategies for City Council consideration. The primary objective of this meeting is to consider the relative advantages and disadvantages of these various options, or alternative land use strategies, and identify those that would be most appropriate for creating additional housing capacity to accommodate the RHNA over the next 8 years.
City Council Agenda
January 18, 2022
Strategy
TOD Zone Expansion
Chapman Corridor
Higher density in a
portion of Atwood
neighborhood
Expansion of Higher
Density Adjacent to Old
Town Placentia
Increase R-3 density
Description
The TOD zoning district currently allows up to 95 units/acre in some subareas. This strategy would expand the boundaries of the TOD district to some adjacent properties.
Allow mixed-use and higher densities along the Chapman Ave. corridor
The Atwood neighborhood is currently zoned R-1 and contains a substantial amount of vacant or underutilized land.
The Old Town zoning district currently allows up to 65 units/acre in some subareas. This strategy would expand the boundaries of the Old Town district to some adjacent properties.
The current R-3 maximum density is 25 units/acre. Under State law, a density of 30 units/acre is considered necessary to accommodate lower-income housing. Increasing the allowable density from 25 to at least 30 units/acre would accomplish 2 things: 1) create additional housing capacity; and 2) allow R3 properties to accommodate lower-income housing for RHNA purposes.
PLANNING COMMISSION RECOMMENDATION:
Est.
Potential
Units
1000-1200
500-600
100-200
200-300
200-400
On January 11, 2022, the Planning Commission conducted a public hearing concerning General Plan Amendment No. GPA 2021-01. The Planning Commission also provided recommendations to City Council regarding strategies for creating additional housing capacity to accommodate the RHNA over the next eight (8) years, and recommended that City Council prioritize the above strategies in the following order of importance: 1. Chapman Corridor, 2. Expansion of Higher Density Adjacent to Old Town Placentia, and 3. TOD Zone Expansion. The fourth option presented, 4. Higher density in a portion of the Atwood neighborhood, was only recommended by Planning Commission if needed to make the RHNA shortfall.
Staff did not receive a Planning Commission recommendation regarding increasing the maximum R-3 density from 25 to 30 units/acre as the discussion focused on potential areas for significant rezoning. However, staff continues to support the strategy to increase R-3 density from 25 to 30 units/acre as well as the strategies recommended by the Planning Commission. Subsequent to the aforementioned recommendations, the Commission continued the Planning Commission public hearing regarding General Plan Amendment No. GPA 2021-01 to March 8, 2022, at which time it is anticipated that Planning Commission will make a recommendation to City Council regarding the updated draft Housing Element.
Further Analysis
Prior to publishing the Planning Commission packet in early January, staff intended to have the Planning Commission (and City Council) review an updated draft Housing Element in January.
However, the City's consultant recommended taking public comments, continuing the public hearings to a date certain, and focusing the meetings on potential sites for rezoning. Therefore, staff did not have significant time to analyze the potential sites. Subsequent to preparing for and holding the January Planning Commission meeting, staff was able to complete additional analysis
City Council Agenda
January 18, 2022
regarding the potential rezoning strategies to meet the RHNA shortfall, and the table above has been updated to indicate the revised number of units that each strategy may potentially yield.
TOD Zone Expansion,
Based on this analysis, staff, in conjunction with the City's consultant, determined that a TOD Zone expansion could potentially yield another 1,000-1,200 housing units, which would accommodate the entire current shortfall. Unlike the other strategy areas, a TOD expansion focused on both sides of Crowther Avenue between SR -57 and Cameron Street (approximately) has several benefits. Adequate Planning efforts have already occurred and could be easily expanded upon. The TOD Zoning boundaries and TOD Streetscape Master Plan could be readily modified to accommodate additional parcels with continuity in streetscape, landscape, building architecture, and other thematic elements and infrastructure resulting in a seamless expansion.
In addition, adequate infrastructure exists (or is being built now) in the TOD area, including upgrades to sewer, water and Crowther Avenue itself. Moreover, the existing TOD Development Impact Fees (DIFs), and Community Facilities District (CFD) are in place and could be readily expanded to accommodate future expansion. To accomplish the TOD expansion, staff could potentially utilize LEAP funding already secured from the State to finish this effort.
Chapman Corridor
A Chapman Corridor Specific Plan or Overlay Zone (different zoning tools for similar result) would potentially allow residential/commercial mixed-use and higher densities along Chapman Avenue, generally from Placentia Avenue easterly to the Civic Center. By conducting further analysis, staff and the City's consultant determined that a Chapman Corridor Plan could conservatively yield another 500-600 housing units. This effort is already identified as a goal in the 2019 General Plan, and, is currently budgeted in the FY21-22 CIP Budget. Staff can also utilize LEAP funding and/or SB2 funding already secured from the State to finish this effort. If City Council directs staff to undergo a Chapman Corridor rezoning effort as part of the Housing Element adoption, staff would recommend parallel efforts to create a Chapman Corridor Streetscape Master Plan, DIF program and potentially a CFD program for the Corridor similar to what has been created in the TOD Packinghouse District and Old Town District.
CEQA COMPLIANCE:
No formal actions are proposed at this meeting; therefore, no CEQA documentation is necessary at this time. Appropriate environmental analysis will be prepared for review by the Planning Commission and City Council prior to consideration and approval of the final Housing Element.
NEXT STEPS:
Staff will compile City Council comments from this hearing and City Council direction will then be incorporated into the revised draft Housing Element for subsequent review by the Planning Commission and City Council at subsequent public hearings in March 2022.
City Council Agenda
January 18, 2022
Prepared by:
J
h M. , Imbert
Dirctor of Development Services
Reviewed and approved:
Damien R. Arrula
City Administrator
Attachments:
1. HCD letter dated December 20, 2021
2. PowerPoint Including Land Use Strategy Maps