STATE OF CALIFORNIA - BUSINFSS CONSUMER SERVICES AND HOUSING AGENCY GAVIN N,FDSOM_ Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.aov
May 16, 2022
Joe Lambert, Director
Development Services Department
City of Placentia
401 East Chapman Avenue
Placentia, CA 92870
Dear Joe Lambert:
RE: City of Placentia's 6th Cycle (2021-2029) Adopted Housing Element Thank you for submitting the City of Placentia's (City) housing element adopted March 15, 2022 and received for review on March 17, 2022. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review.
The adopted housing element addresses many statutory requirements described in HCD's December 20, 2021 review; however, additional revisions are necessary to fully comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.
As a reminder, the City's 6th cycle housing element was due October 15, 2021. As of today, the City has not completed the housing element process for the 6th cycle. The City's 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance.
Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. During the housing element revision process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government's website and to email a link to all individuals and organizations that have previously requested notices relating to the local government's housing element at least seven days before submitting to HCD.
For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the
Joe Lambert, Director
statutory deadline (October 15, 2021), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government's housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i).
Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD's Affordable Housing and Sustainable Communities programs; and HCD's Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.
HCD appreciates the efforts of the housing element update team during housing element review. We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Chelsea Lee, of our staff, at Chelsea.Lee(a�hcd.ca.gov.
Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
APPENDIX
CITY OF PLACENTIA
The following changes are necessary to bring the City's housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.
Housing element technical assistance information is available on HCD's website at http://www.hcd.ca.gov/communitv-development/housing-element/housinq-element-memos.shtml .
Among other resources, the housing element section contains HCD's latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources.
A. Housing Needs, Resources, and Constraints
1. Affirmatively furthering] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2...shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Fair Housing Enforcement and Outreach: The element now includes information on the City's general public outreach efforts and provides some regional context on fair housing issues from the 2020 Orange County Analysis of Impediments (Al), including a quantification of fair housing testing and complaints received. The element also provides some analysis on the number of local complaints received. However, additional information is required. The element must also include information on the City's ability to provide enforcement and outreach capacity, which can consist of actions such as the City's ability to investigate complaints, obtain remedies, or the City's ability to engage in fair housing testing. Additionally, the element must also include analysis on the characteristics of local fair housing complaints and analyze data for any patterns and include additional local and regional knowledge, relevant factors, and a summary of issues. Finally, the analysis must also describe compliance with existing fair housing laws and regulations.
Raciallv/Ethnicallv Concentrated Areas of Poverty and Affluence (RCAA): In response to HCD's prior review, the element now clarifies that there are no R/ECAPs in the City and includes regional analysis on surrounding areas of poverty and R/ECAPs near the City. However, additional information is required. Specifically, the element should address patterns of RCAAs at a neighborhood or tract level. The analysis should also include local and regional knowledge, evaluate patterns and changes over time, and consider other relevant factors, such as public participation, past policies, practices, and investments and demographic trends.
Disparities in Access to Opportunity: In response to HCD's prior review, the element now includes analysis in the areas of education, environmental, transportation, and environmental factors. However, additional information is required. More specifically, the element must include information on local disparities in each of the four areas at a City of Placentia's 6th Cycle Adopted Housing Element Page 1 May 16, 2022
neighborhood or tract level. The analysis should also include local and regional knowledge, evaluate patterns and changes over time, and consider other relevant factors, such as public participation, past policies, practices, and investments and demographic trends.
Integration and Segregation: In response to HCD's prior review, the element now includes analysis in the areas of disability and familial status, in addition to income.
However, the element still does not include local (patterns within the City) analysis for race/ethnicity. The analysis also utilizes regional data and knowledge from the 2020 Orange County Al for race/ethnicity, disability status, and income, but must still address familial status and should be revised to include this information. In addition, the element must include information on integration and segregation in each of the four areas at a neighborhood or tract level. The analysis should also include local data and knowledge, evaluate patterns and changes over time, and consider other relevant factors, such as public participation, past policies, practices, and investments and demographic trends.
Disproportionate Housing Needs and Displacement Risk: In response to HCD's prior review, the element now includes data at the local and regional level on overcrowded households, substandard housing conditions, cost burdened households, and homelessness; but additional information is required. As an example, the local analysis did not address displacement risk. In addition, the element must include information on disproportionate housing needs in each of the four areas at a neighborhood or tract level. The analysis should also include local data and knowledge, evaluate patterns and changes over time, and consider other relevant factors, such as public participation, past policies, practices, and investments and demographic trends.
Sites Inventory: In response to HCD's prior review, the element now includes additional information on pages D-26 and D-27 that indicates most of the City's sites are concentrated near the Metrolink rail station and in areas identified by the TCAC/HCD opportunity maps as Low Resource or High Segregation and Poverty but provides no further analysis. A full analysis should address the income categories of identified sites with respect to location, the number of sites and units by all income groups and how that effects the existing patterns for all components of the assessment of fair housing (e.g., segregation and integration, access to opportunity). The element should also discuss whether the distribution of sites improves or exacerbates conditions. If sites exacerbate conditions, the element should identify further program actions that will be taken to mitigate this (e.g., anti -displacement strategies).
Goals, Priorities, Metrics, and Milestones: Goals and actions must significantly seek to overcome contributing factors to fair housing issues. The element identifies programs to encourage and promote affordable housing; however, most of these programs do not appear to facilitate any meaningful change nor address affirmatively furthering fair housing requirements. Furthermore, the element must include metrics and milestones for evaluating progress on programs, actions, and fair housing results. For example, Program 2.1 (Support Regional and Local Fair Housing Efforts) lacks firm commitments and timelines to conducting targeted outreach. As another example, Program 3.1 (Community Based Neighborhood Rehabilitation) does not describe specific place - based strategies or other initiatives the City will undertake in the planning period and City of Placentia's 6th Cycle Adopted Housing Element Page 2 May 16, 2022
similarly lacks firm commitments and timelines for program implementation. In many other areas, programs lack a clear nexus to addressing contributing factors as identified in the analysis. The element must add, and revise programs based on a complete analysis. For more information, please see HCD's guidance at https://www.hcd.ca.aov/communitv-development/affh/index.shtm .
2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
Extremely Low -Income (ELI) Households: In response to HCD's prior review, the element now quantifies the number of ELI households that are cost burdened by tenure.
However, the element must also examine the availability of resources available to ELI households to determine gaps in housing needs. Please see HCD's prior review for additional information.
3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality's housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)
Parcel Listing: The element generally was not revised to address this requirement.
Please see HCD's prior review for additional information.
Realistic Capacity: In response to HCD's prior review, the element now includes additional information on pages B-1 to B-3 on market trends and approved projects to support its assumptions. However, additional information is required. For example, the element still does not account for the likelihood of nonresidential development in the TOD zone in its capacity assumptions. As another example, the element cites several approved projects, but only two of those projects are for lower-income households and have wide variation in the densities achieved and units produced (65 units at 16.9 du/ac and 189 at 88.7 du/ac). Please see HCD's prior review for additional information.
Suitability of Nonvacant Sites: In response to HCD's prior review, the element now includes revisions to Program 1.8 (Adequate Sites for Housing Development) regarding the replacement of sites with existing residential uses. However, aside from this, revisions do not otherwise address HCD's findings regarding nonvacant sites.
In addition, as noted in the prior review, the housing element appears to rely upon nonvacant sites to accommodate more than 50 percent of the regional housing need allocation (RHNA) for lower-income households. For your information, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA. Based City of Placentia's 6th Cycle Adopted Housing Element Page 3 May 16, 2022
on a review of the adoption resolution, this requirement was not addressed and any future -re-adoption must make the appropriate findings.
Please see HCD's prior review for additional information.
Availability of Infrastructure: The element now clarifies sufficient water and sewer capacity to accommodate the RHNA. However, as noted in the prior review, the element must still address requirements related to priority water and sewer service for developments with units affordable to lower-income households. Please see HCD's prior review for additional information.
Environmental Constraints: The element now describes potential environmental constraints on identified sites, but it must still address consolidation or other factors that may impact the development of sites identified for moderate and above -moderate income households. Please see HCD's prior review for additional information.
Electronic Site Inventory: As noted in the prior review, pursuant to Government Code section 65583.3, subdivision (b), the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory and submit an electronic version of the sites inventory. While the City has submitted an electronic version of the sites inventory, if changes occur, any future re -adopted versions of the element must also submit the electronic version of the sites inventory.
4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a) (5).)
Land -Use Controls: In response to HCD's prior review, the element now includes additional information (pages 3-6 to 3-21) on achieved densities in the TOD zone and specifies development standards for the TOD and Old Town Placentia areas. The revisions also identify parking requirements as potential constraints and includes Program 1.17 (Residential Parking Requirements) to remove parking constraints in the R-3 district. However, the element still does not analyze heights as potential constraints on housing. Depending on the outcomes of a complete analysis, the element should include programs to remove or mitigate identified constraints. Please see HCD's prior review for additional information.
Development Plan Review (DPR): In response to HCD's prior review, the element now includes revisions on pages 3-32 to 3-35 that specify standards for DPR project approval and concludes that these standards do not constraint development but provides minimal analysis and evidence to support this finding. The element should fully analyze DPR processes and procedures as potential constraints on housing. For example, many DPR standards reference conserving property values, preserving the character of existing buildings, and neighborhood depreciation as factors of City of Placentia's 6th Cycle Adopted Housing Element Page 4 May 16, 2022
consideration. As another example, the element notes that decisions are subject to public hearings and may be appealed by City Council. Based on the outcomes of this analysis, the element should modify Program 1.6 (Development Processing System Review) with specific commitment and timing to address identified constraints.
Fees and Exactions: In response to HCD's prior review, the element now includes minor revisions on page 3-31 regarding typical project fees and notes in its response that other types of fees, including General Plan amendments, specific plans, and zone changes are not required unless an applicant is seeking to change land use regulations.
However, regardless of typical entitlements for projects, the element must list and analyze planning fees as potential constraints on development. Please see HCD's prior review for additional information.
Housing for Persons with Disabilities: In response to HCD's prior review, the element now includes additional information (pages 3-22 to 3-24) on the City's reasonable accommodation procedures and clarifies that group homes of seven or more persons are permitted in residential and commercial districts either by -right or subject to a conditional use permit (CUP) in the C-2 zone. However, the element still must analyze the City's reasonable accommodation and CUP procedures as a potential constraint on persons with disabilities. As an example, the revisions include several findings with language on "substantial adverse impact[s] on surrounding land uses, or a public nuisance..." or "minimizing adverse impacts on surrounding land uses" that should be further evaluated as potential constraints. As another example, the element notes that decisions are subject to appeal by the Planning Commission or City Council and these procedures should also be evaluated as potential constraints to persons with disabilities. The element must add or modify programs based on the outcomes of a complete analysis.
Codes and Enforcement: In response to HCD's prior review, the element now includes additional information on pages 3-30 to 3-31 that indicates violations are primarily complaint -based. However, the element must still describe the actual local amendments to the building code and include analysis as appropriate. Please see HCD's prior review for additional information.
5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including......the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality's share of the regional housing need in accordance with Government Code section 65584... (Gov. Code, § 65583, subd. (a)(6).) Approval Times: In response to HCD's prior review, the element now includes information on page 3-40 that indicates no requests were received to develop housing at lower densities than those identified in the prior planning period. However, the element did not specify the average length of time between receiving approval for housing development and submittal of application for building permits. Please see HCD's prior review for additional information.
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B. Housing Programs
1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).)
In response to HCD's prior review, the element now includes revisions to Programs 1.8 (Adequate Sites for Housing Development) and some revisions to 1.15 (Transit - Oriented Development). However, Program 1.15 still does not specify a discrete timing of completion. In addition, Programs 1.1 (Manufactured Housing and Mobile Homes),
1.2 (Locate Housing Near Transportation, Employment and Services), 1.3 (Pursue County, State, and Federal Housing Funds), 1.14 (Housing for Persons with Special Needs), 3.1 (Community Based Neighborhood Rehabilitation), 3.3 (Placentia Rehabilitation Grant Program), 4.1 (Partnerships with the Housing Industry), and 4.2 (Participation in Continuum of Care Forum) either do not include revisions or the revisions do not otherwise address HCD's findings. Please see HCD's prior review for additional information.
2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city's or county's share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory... (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding A3, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition:
Shortfall of Sites: In response to HCD's prior review, the element now includes additional information on pages 4-6 and B-19 that indicates the acreages and densities to accommodate the shortfall for the lower-income RHNA. However, the Program does not appear to include the appropriate number of acres to accommodate the lower- income RHNA and does not address the shortfall for the above moderate -income RHNA.
3. The housing element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderate - income households. (Gov. Code, § 65583, subd. (c)(2).)
In response to HCD's prior review, the element now includes revisions to Programs 1.3 (Pursue Funding), 1.8 (Adequate Sites), and 1.14 (Housing for Persons with Special Needs) that commit the City to pursue funding annually. However, the Programs should City of Placentia's 6th Cycle Adopted Housing Element Page 6 May 16, 2022
also specifically commit to annual outreach with developers to identify development opportunities.
4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings A4 and A5, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.
5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected... (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding Al, the element must include a complete analysis of AFFH. Based on the outcome of that analysis, the element must add or modify programs. For more information, please see HCD's guidance at https://www.hcd.ca.qov/communitv- development/affh/index.shtml.
6. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate -income households... (Gov. Code, § 65583, subd. (c)(7).)
While Program 1.19 (Accessory Dwelling Units (ADUs)) now commits to various actions such as updating the ordinance and utilizing an ADU toolkit, it must still commit to monitor permitted ADUs and affordability every other year and take appropriate action such as adjusting assumptions or rezoning within a specified time (e.g., six months).
C. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd. (c)(8).) HCD's prior review found the element must specify when the City made the element available to the public prior to submittal to HCD, how public outreach included diligent efforts involve all economic segments of the community in the development of the housing element, and address public comments received in response to the element. The element was not revised to address this requirement. Please see HCD's prior review for additional information.
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