TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
Placentia City Council
FROM: DIRECTOR OF DEVELOPMENT SERVICES
DATE: MARCH 15, 2022
SUBJECT: CONTINUED PUBLIC HEARING REGARDING GENERAL PLAN AMENDMENT NO. GPA 2021-02, 2021-2029 HOUSING ELEMENT UPDATE (Previously Incorrectly Referred to As GPA 2021-01)
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. Staff has obtained comments from the State, and on January 18, 2022, this item was heard by City Council at a noticed Public Hearing. Council provided direction to Staff regarding strategies for creating additional housing capacity to accommodate the RHNA over the next eight (8) years. On January 18, 2022, the City Council continued the public hearing until March 15, 2022, and at this time, the revised draft Housing Element will be considered for adoption.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
Reopen the continued public hearing concerning General Plan Amendment No. GPA 2021- 02; and
2. Receive the staff report and Staff presentation, and consider all public testimony and Planning Commission recommendations; and
3. Adopt Resolution R-2022-16, a Resolution of the City Council of the City of Placentia, California, finding that adoption of the Housing Element update is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15061(b)(3) and
2. a.
Mar. 15, 2422
City Council Agenda
March 15, 2022
approving and adopting General Plan Amendment No. GPA 2021-02 (2021-2029 General Plan Housing Element Update.
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 "sixth planning cycle" which spans the 2021-2029 period. The City commenced the sixth cycle Housing Element update effort last year, and the following public meetings have been conducted to review Housing Element requirements and issues in Placentia:
• June 8, 2021
August 24, 2021
• September 14, 2021
• September 16, 2021
September 21, 2021
October 12, 2021
October 19, 2021
• January 11, 2022
January 18, 2022
March 8, 2022
• March 15, 2022
Planning Commission meeting
Public workshop
Planning Commission meeting
Public workshop
City Council meeting
Planning Commission meeting
City Council meeting
Planning Commission public hearing
City Council public hearing
Planning Commission public hearing
City Council public hearing
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 upon 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 upon the grounds of Housing Element non-compliance, and courts are also authorized to impose fines upon non-compliant cities and order land use changes or limit the issuance of building permits.
On October 21, 2021 the City's draft Housing Element was submitted to HCD for review, and on December 20, 2021 HCD issued its review letter (Attachment 3) finding that the draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law.
City Council Agenda
March 15, 2022
In January 2022 the Planning Commission and City Council conducted public hearings to review HCD's comments, receive public testimony, and discuss potential strategies to address HCD's comments. The focus of those meetings was identifying appropriate land use strategies for creating additional capacity for housing development to accommodate the City's assigned share of regional housing need. Since then, Staff have prepared a revised draft Housing Element (Attachment 2) incorporating Planning Commission comments and City Council direction.
The purpose of this public hearing is to provide the City Council and community stakeholders an opportunity to review the revised draft Housing Element and identify any further revisions to address HCD's comments. Additional background information and the staff reports for previous meetings are posted on the City's Housing Element website at: https:!lplacentia.org1943/2021- 2029-Housing-Element-Update.
HCD COMMENTS AND PROPOSED RESPONSES
All cities are receiving lengthy Housing Element comment letters from HCD, reflecting the high level of State concern related to the "housing crisis." At this time, only six (6) of the 197 jurisdictions in the SCAG region (3%) have received State Housing Element certification. No Orange County jurisdiction currently has a certified Housing Element.
The revised draft Housing Element shows changes to the draft that was submitted to HCD in stF keeet/underline format. In addition, a summary of HCD comments and the proposed revisions to the Housing Element addressing those comments is provided in Attachment 4.
Many of HCD's comments required only clerical or technical revisions to the data and analysis in the Housing Element, while other comments involve more substantive policy issues. A new appendix has been added with extensive analysis of fair housing issues (Appendix D). Some of the most significant comments from HCD also 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 Orange County cities including Placentia do not currently have sufficient land zoned for housing to fully accommodate the RHNA. As noted in previous meetings, Placentia's sixth 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 revised draft Housing Element (see Table B-1, below) estimates that there is currently a shortfall of approximately 1,137 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.
City Council Agenda
March 15, 2022
Table B-1: Residential Sites Summary
Income Category
VeKy Low
Low
Moderate
Above
Moderate
Total
Approved Projects Table B-2
-
252
-
774
1,026
Vacant Sites Table B-3
-
-
394
65 459
Underutilized Sites Table B-4
698
404
371
247
1,720
ADUs
14 24
17 1
56 Total Capacity
712
680
782
1,087
3,196
RHNA
1,243
680
782
11693
4,398
Surplus(Sho tfall)
(531]
-
-
(6061
[1,1371
Source: City of Placentia, 2021
A key policy question considered by the Planning Commission and City Council at previous meetings was the most appropriate land use strategies for increasing potential housing capacity.
Based upon that discussion, the draft Housing Element has been revised to include the following rezoning strategies:
Strategy Description
1. TOD Zone The TOD zoning district currently allows up to 95 units/acre in some subareas.
Expansion This strategy would expand the boundaries of the TOD district.
2. Increase R-3 The current R-3 maximum density is 25 units/acre. Under State law, a density density of 30 units/acre is considered sufficient 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 RHNAu�rposes.
In addition to identifying areas where additional housing could be accommodated through rezoning, State law requires the rezoning of those properties by October 15, 2022. General Plan and zoning amendments to implement the Transit Oriented Development District ("TOD") expansion and the increased allowable R-3 density are relatively straightforward and Staff believes they can be completed by October. However, another zoning strategy discussed at previous meetings regarding the Chapman Avenue corridor would be much more complex and involve different standards and regulations for different areas within the corridor (e.g., allowable uses, densities, height limits, design criteria). Preparation of a specific plan or similar zoning document and CEQA analysis for this kind of project typically requires more than a year.
Therefore, Staff recommends that the Housing Element rezoning commitments focus upon the TOD area and R-3 district at this time. Concurrent with HCD review of the revised Housing Element, Staff will commence the preliminary planning studies needed to prepare a new specific plan for the Chapman Avenue corridor.
In addition to these land use amendments, the following Zoning Code amendments are necessary to address HCD comments and comply with changes in State law:
Emergency Shelters: Program 1.4 has been revised to include an amendment to emergency shelter parking requirements consistent with AB 139 (Government Code sec 65583(a)(4)(A)).
Employee housing: Program 1.4 has been revised to include a Code amendment consistent with current law regarding agricultural employee housing.
City Council Agenda
March 15, 2022
Permanent supportive housing: Program 1.4 has been revised to demonstrate consistency with Government Code section 65651 regarding supportive housing.
Off-street parking_: Program 1.17 has been revised to include a Code amendment to reduce required parking for studio and 1 -bedroom units in the R-3 district to 1 space in either a garage or a carport.
PLANNING COMMISSION RECOMMENDATION:
On March 8, 2022, the Planning Commission conducted a continued public hearing concerning General Plan Amendment No. GPA 2021-02. The Planning Commission concluded the public hearing and adopted Resolution PC 2022-02 recommending that City Council find that adoption of the Housing Element update is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15061(b)(3) and recommending that City Council approve the 2021- 2029 Housing Element.
CEQA COMPLIANCE:
Adoption of the Housing Element update would not approve any development project, zoning amendment, or any other physical change to the environment; therefore, it is covered by the "common sense" exemption (CEQA Guidelines Sec. 15061(b)(3)) which provides that CEQA applies only to projects that have the potential for causing a significant effect upon the environment. Subsequent to adoption of the Housing Element, amendments to the Zoning Ordinance will be necessary in order to implement Housing Element programs, and appropriate CEQA analysis will be prepared in connection with those amendments.
NEXT STEPS:
If the draft Housing Element is approved by City Council, the adopted Housing Element must be submitted to HCD for review. Zoning amendments to implement Housing Element programs will be subject to additional public review, CEQA analysis, and public hearings conducted by the Planning Commission and City Council. No land use or zoning amendments would be approved by the adoption of the Housing Element.
Prepared by:
Joseph NUambehJ
Director of Development Services
Reviewed and approved:
Damien R. Arrula`- --- --
City Administrator
City Council Agenda
March 15, 2022
Attachments -
1. Resolution R-2022-16 — Housing Element Update
2. Revised Draft 2021-2029 Housing Element (Tracked Changes)
3. HCD Review Letter Dated December 20, 2021
4. Summary of HCD Comments and Proposed Responses