STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, 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
October 27, 2023
Joe Lambert, Director
Development Services Department
City of Placentia
401 E Chapman Avenue
Placentia, CA, 92870
Dear Joe Lambert:
RE: City of Placentia's 6th Cycle (2021-2029) Revised Draft Housing Element Thank you for submitting the City of Placentia's (City) revised draft housing element received for review on August 30, 2023, along with revisions that were received on October 19, 2023. The review was facilitated by a conversation on October 10, 2023, with the City's housing element team. Pursuant to Government Code section 65585, the California Department of Housing and Community Development (HCD) is reporting the results of its review.
The revised draft element addresses many statutory requirements; however, revisions will be necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq). The revisions needed to comply with State Housing Element Law are as follows:
1. 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).) Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services... (Gov. Code, § 65583, subd. (c)(1).)
Realistic Capacity: While the element provides some information regarding capacity assumptions, it must still analyze the likelihood of 100 percent nonresidential development in zones that allow 100 percent nonresidential development and account for that likelihood in residential capacity assumptions.
For example, the element could examine all development in the zones allowing 100 percent non-residential development, determine how often 100 percent
Joe Lambert, Director
nonresidential development occurs then account for the likelihood in residential capacity assumptions. Alternatively, the element could clarify that all zones or sub -zones in the Transit Oriented Development and Old Town zones do not allow 100 percent non-residential development or programs could be added to require a residential component.
Suitability of Nonvacant Sites: While the element provides some information regarding past redevelopment and lists indicators of the potential for redevelopment, it should be revised, as follows:
• Indicators of the Potential for Redevelopment: The element lists indicators of the potential for redevelopment but should also support the validity of these indicators. For example, the element uses a 25 percent underutilization rate and age of structure of 20 years or more. Further, the element appears to utilize redevelopment ratios for sites with existing residential; in some cases, two -to -one net gain of existing versus allowable residential units. None of these indicators are supported. The element should utilize past trends or other methods to support these indicators or adjust the indicators, including providing supporting information, to demonstrate the potential for redevelopment. Finally, these indicators should be listed in the sites inventory on a site basis. • Extent Existing Uses Impeded Additional Development: The element includes some broad descriptions of existing uses and redevelopment potential but should also evaluate the extent existing uses impede additional development. For example, the element describes a large parcel with an industrial structure and paved parking but should also evaluate the use and any impediments to redevelopment or indicators that the use will likely discontinue. Examples of evaluating the use include interest from property owners or developers in residential development; lack of improvements; lack of long-term leases; recent and frequent turnover in uses; existing versus allowable uses; and age and condition of structures. This analysis may be conducted on a site -by -site basis or sub- area level like a corridor where uses are similar.
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 on a
Joe Lambert, Director
review of the adoption resolution, this requirement was not addressed and any future re -adoption must make the appropriate findings.
Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. While the City has submitted the electronic sites inventory, it should re -submit the inventory, including any changes, as part of future re - adoption and submittal. Please see HCD's housing element webpage at httas:// www.hcd.ca.aov/planning-and- communitv-develoament/housina-elements for a copy of the form and instructions. The City can reach out to HCD at sitesinventorv(a_hcd.ca.aov for technical assistance.
Programs: As noted above, the element does not contain a complete analysis of the sites inventory. 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.
2. Promote AFFH 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... (Gov. Code, § 65583, subd. (c)(5).)
While the element provides additional analysis and identifies contributing factors to fair housing issues in Placentia, it should include significant and meaningful actions to overcome patterns of segregation and foster inclusive communities.
Actions should include geographic targeting and numeric targets to demonstrate significant and meaningful actions toward more inclusive communities.
In addition, the City has distinct patterns of socio-economic characteristics. For example, some areas are predominantly higher income, higher resource with racially concentrated affluence. Other areas are lower-income and relatively lower resources with higher segregation and poverty and higher displacement risk. Further, a large portion of the RHNA is identified in one census tract. For these reasons, the element must include significant actions toward housing mobility (choices and affordability across greater geographies, including higher resource areas), place -based strategies toward community revitalization in lower - resourced areas, and programs to mitigate displacement risk. For more information on potential actions, please see HCD's AFFH Guidance Memo (starting on p. 72) at https://www.hcd.ca.aov/planning-and-communitv- development/affirmatively-furthering-fair-housing.
Joe Lambert, Director
The element will meet the statutory requirements of State Housing Element Law once it has been revised and re -adopted to substantially comply with the above requirements pursuant to Government Code section 65585.
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.
Pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), a jurisdiction that failed to adopt a compliant housing element within one year from the statutory deadline cannot be found in compliance until rezones to make prior identified sites available and accommodate a shortfall of sites are completed pursuant to Government Code section 65583, subdivision (c)(1)(A) and Government Code section 65583.2, subdivision (c). As this year has passed and Program, HE -1.8 (Adequate Sites for Housing Development) has not been completed, the housing element will remain out of compliance until the rezoning have been completed.
Public participation in the development, adoption, and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Further, as noted in prior reviews, the City must employ a variety of methods to engage individuals, households or organizations representing lower-income and special needs households.
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.
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 Affordable Housing and Sustainable Communities program, 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.
For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor's Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/quidelines.html .
Joe Lambert, Director
HCD appreciates the dedication and work of the City's housing element team during the update and review. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Jadah Francisco, of our staff, at Jadah.Francisco(c,hcd.ca.gov.
Sincerely,
Paul McDougall
Senior Program Manager