TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF DEVELOPMENT SERVICES
FEBRUARY 6, 2024
AGENDA REPORT
SUBJECT: PUBLIC HEARING REGARDING GENERAL PLAN AMENDMENT NO. GPA 2021-02, 2021-2029 HOUSING ELEMENT UPDATE (AMENDMENT TO THE ADOPTED 2021-2029 HOUSING ELEMENT TO ADDRESS ADDITIONAL
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) COMMENTS)
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 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 addressing 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 California Department of Housing and Community Development (HCD) for review. Staff obtained comments from the HCD, and on January 18, 2022, this item was heard by City Council and direction was given to Staff regarding strategies for creating additional housing capacity to accommodate the RHNA over the next eight years. The item was continued to March 15, 2022, and at that time, the Housing Element was adopted. On May 16, 2022, HCD issued a findings letter stating that revisions were still necessary to comply with State Housing Element Law. Staff resubmitted several versions of revised Housing Elements in August 2023, November 2023 and in January 2024. Staff anticipates receiving a finding of substantial compliance from HCD regarding the Housing Element within the next few weeks to meet the February 29, 2024 HCD deadline to avoid jeopardizing emergency shelter (Navigation Center) funds. However, prior to State certification, Staff recommends City Council adopt the latest version of the Housing Element,
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Open the public hearing concerning General Plan Amendment No. GPA 2021-02; and
2.a.
Feb 06, 2024
City Council Agenda
February 6, 2024
2. Receive the staff report and Staff presentation, and consider all public testimony and Planning Commission recommendations; and
3. Adopt Resolution R-2024-06, a Resolution of the City Council of the City of Placentia, California, finding that adoption of the Housing Element is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Section 15061(b)(3) and approving and adopting General Plan Amendment No. GPA 2021-02, an amendment to the City of Placentia General Plan Housing Element, including any additional revisions required by the California Department of Housing and Community Development (HCD); and
4. Authorize the Director of Development Services or designee to file aII documents with the California Department of Housing and Community Development (HCD) on behalf of the City.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to achieve:
Implementation of Housing Element Strategies, Objective Number 3.10. This agenda item will specifically create opportunities for the development of more housing in the City, including a mix of housing at various price points.
BACKGROUND:
Every 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 in 2021, 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
• January 23, 2024
• February 6, 2024
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
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 are generally within
City Council Agenda
February 6, 2024
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 on non-compliant cities and order land use changes or limit the issuance of building permits.
HCD COMMENTS AND PROPOSED RESPONSES TO HCD
On October 21, 2021 the City's draft Housing Element was submitted to HCD for review, and on December 20, 2021 HCD issued its findings letter finding that the draft element addressed many statutory requirements; however, HCD indicated revisions were still necessary to comply with State Housing Element Law.
In January 2022, the Planning Commission and City Council conducted duly noticed public hearings to review HCD's findings, receive public testimony, and discuss potential strategies to address HCD's findings. The focus of those meetings were to identify appropriate land use strategies for creating additional capacity for housing development to accommodate the City's assigned share of regional housing need. Staff completed a revised draft Housing Element incorporating Planning Commission comments and City Council direction. The City Council adopted a revised version of the City of Placentia 2021-2029 Housing Element Update on March 15, 2022 and resubmitted to HCD for review on March 17, 2022. On May 16, 2022, HCD issued its findings letter (Attachment 3) finding that the draft Housing Element addressed many statutory requirements; however, revisions were still necessary to comply with State Housing Element Law.
The City revised the 2021-2029 Housing Element Update and resubmitted to HCD for review on August 29, 2023. On October 27, 2023, HCD issued its review letter (Attachment 4) finding that the draft Housing Element addressed most statutory requirements; however, revisions were still necessary to comply with State Housing Element Law.
The City revised the 2021-2029 Housing Element Update and resubmitted to HCD for review on November 28, 2023. HCD provided informal feedback on November 29, 2023. The City submitted a revised draft with supplemental revisions on January 19, 2024 (Attachment 2). The supplemental draft was posted on the City's website on January 19, 2024 and was made available for public review as required.
Subsequent to the latest draft Element being submitted for HCD review, the City received a findings letter on January 26, 2024 (Attachment 5). This correspondence mostly includes
City Council Agenda
February 6, 2024
comments that Staff and the City's consultant had already anticipated (in working closely with HCD) and had incorporated into the latest draft Element. Prior to and as late as January 30, 2024, Staff and the consultant have been coordinating closely with HCD to finalize any outstanding items and we continue to meet with HCD to finalize any outstanding items and we continue to meet with HCD to achieve State certification no later than February 29, 2024. Findings have been inserted into the Staff recommendation and to the approving Resolution (Attachment 1) to authorize the Director of Development Services to make any additional revisions required by HCD and to file all necessary documents with HCD on behalf of the City to achieve State certification.
Latest Responses To HCD
During recent HCD formal and informal reviews, a variety of issues have been addressed, including:
• Clarifications on methodology for identifying adequate sites • Additional justification for the use of infill parcels HCD has indicated they can make a finding of substantial compliance and provide a final certification letter once the 2021-2029 Housing Element and TOD Zone expansion are formally adopted by the City Council.
The revised draft Housing Element shows changes to the draft that was submitted to HCD in strikeout/underline (or redline) format (Attachment 2).
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. Some of the most significant 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 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 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 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
February 6, 2024
Table B-1: Residential Sites Summary
Income Category
Approved Projects (Table B-2)
Vacant Sites (Table B-3)
Underutilized Sites (Table B-4)
ADUs
Total Capacity
RHNA
Surplus (Shortfall)
Source: City of Placentia, 2021
Very Low
698
14 712
1,243
(531)
Low
252 774 1,026
- 394 65 459
404 371 247 1,720
24 17 1 56
680 782 1,087 3,196
680 1 782 1,693 4,398
1 (606) (1,137)
Moderate
Above
Moderate
Total
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 on 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 RHNA purposes.
Strategy 2 above has already been implemented as the allowable R-3 density has been increased in late 2022 when City Council adopted a Zoning Code Amendment and General Plan Amendment. Strategy 1 is in process and is anticipated to be completed no later than February 29, 2024. 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.
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.
City Council Agenda
February 6, 2024
PLANNING COMMISSION RECOMMENDATION:
On January 23, 2024, the Planning Commission conducted a public hearing concerning General Plan Amendment No. GPA 2021-02. The Planning Commission concluded the public hearing and unanimously adopted Resolution PC 2024-02 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 an amendment to the previously adopted City of Placentia 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:
HCD has indicated they can make a finding of substantial compliance and provide a final certification letter once the 2021-2029 Housing Element and remaining TOD Zone expansion (re- zoning action) are formally adopted by the City Council. Both of these actions are scheduled to be completed no later than February 20, 2024.
Prepared by:
Joseph M. Lambert
Director of Development Services
Reviewed and approved:
Damien R. Arrula __
City Administrator
Attachments:
1. Resolution R-2024-06 — Adopting Housing Element
2. Latest Revised Draft 2021-2029 Housing Element January 2024
3. HCD review letter dated May 16, 2022
4. HCD review letter dated October 27, 2023
5. HCD review letter dated January 26, 2024