TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF DEVELOPMENT SERVICES
MARCH 19, 2024
AGENDA REPORT
SUBJECT: 2023 HOUSING ELEMENT ANNUAL PROGRESS REPORT
FISCAL
IMPACT: NONE
SUMMARY:
State law requires cities to prepare and submit an Annual Progress Report ("APR") on the status and progress of implementing the goals identified within the City's certified Housing Element.
Government Code Section 65700 exempts charter cities from preparing an APR on the status of the Housing Element. However, all cities including charter cities must submit an Annual Progress Report to be eligible for certain funding programs. This report is to be submitted to the City Council, the Governor's Office of Planning and Research (" OPR"), and the California Department of Housing and Community Development ("HCD") prior to April 1 of each year. This action receives and files the 2023 Housing Element Annual Progress Report which subsequently will be sent to the State.
RECOMMENDATION:
It is recommended that the City Council take the following action:
Receive and file the 2023 Housing Element Annual Progress Report.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to achieve the following:
Implementation of Housing Element Strategies, Objective Number 3.10. This agenda item will ensure opportunities for the development of more housing in the city, including a mix of housing at various price points. Also, this item will serve to enhance affordable housing production efforts in general as the adopted Housing Element encourages housing production, including an emphasis on the production of affordable housing in the community.
Much ` g 2024.
City Council Agenda
March 19, 2024
BACKGROUND:
Government Code Section 65400 requires that the City provide the governing body, in this case the City Council, an APR on the status and progress in implementing the Housing Element using forms and definitions adopted by the California Department of Housing and Community Development. Government Code Section 65700 exempts charter cities from preparing an annual report on the status of the Housing Element. However, all cities including charter cities must submit an annual report to be eligible for certain funding programs. As stated by HCD, the APR is an important tool to facilitate implementation of a community's Housing Element and to track and monitor progress in addressing housing needs and goals.
The APR includes information on a city's progress in fulfilling the Regional Housing Needs Allocation ("RHNA"), including the number of housing units permitted (that is, how many building permits were pulled by developers) by defined income level, as well as the status of programs in the housing element and efforts to remove governmental constraints. The aforementioned reporting is based on the RHNA, programs and policies in the 6th Cycle Housing Element adopted by City Council on February 6, 2024. The APR is to be provided to the OPR and to HCD no later than April 1 of every year. Once reviewed, received, and filed by the City Council, Staff will submit the APRs to the OPR and the HCD.
DISCUSSION:
The APR is primarily a spreadsheet of required information regarding annual building activity broken down into pre -defined income levels (for example, Very Low, Low, and Moderate). These income levels correspond to the Regional Housing Need Allocation (RHNA) as assigned by the Southern California Association of Governments (SCAG), as empowered by HCD. The RHNA process is the part of Housing Element Law used to determine how many new homes, and the affordability of those homes, each local government must plan for in its Housing Element. As detailed in the City's amendment to the Housing Element for the 2021-2029 Planning Period, which was adopted by the City Council on February 5, 2024, the City's Regional Housing Needs Assessment (RHNA) is 4,398 units. Those 4,398 units, which must be "planned for" in the Housing Element planning period spanning 2021 to 2029, are broken down into the following income categories:
Income Level
Extremely Low
Very Low
Low
Moderate
Above Moderate
Totals
Regional Housing Needs
Assessment 2021-2029
622
621
680
782
1,693
4,398
During the Housing Element planning period of 2006-2014, Placentia was assigned a total RHNA allocation of 98 total units. Regarding the 2013-2021 Planning Period and corresponding Housing Element which was adopted by City Council on January 7, 2014, the City's assigned RHNA was
City Council Agenda
March 19, 2024
492 total units. As demonstrated, during the last three Planning Period cycles, the RHNA has drastically increased from 98 units for the 2006-2014 Planning Period, to 492 units for the 2013- 2021 Planning Period, to 4,398 units for the 2021-2029 Planning Period (6th Cycle). Below is a snapshot of the progress Placentia has made related to facilitating housing production for calendar year 2023, as it relates to the 2021-2029 Planning Period (6th Cycle):
Income Level
RHNA
Allocation
by
Income
Level
Projection
Period
06/30/2021-
10/14/2021
2021
2022
2023
Total
Units to
Date
(all years)
Total Remaining
RHNA by Income
Level
Deed Restricted
Very Low Non -Deed Restricted
Deed Restricted
Low
Non -Deed Restricted
Moderate Deed Restricted
Non -Deed Restricted_
Above
Moderate
Total RHNA
Total Units
1,243
- - - -
- - - -
- - 64 -
2 - - -
- - 14 14
- - - -
- 34 73 79
1,243
680
66 614
782
28 754
1,693
186
1,507
4,398
2 34 151 93
280 4,118
Under state law, a density of 30 units/acre is considered necessary to facilitate affordable housing which is not subsidized. In 2022, City Council amended the General Plan Land Use Element and the City's Zoning Code to increase the allowable density in the R-3 Zone from 25 units/acre to 30 units/acre. This requirement was further satisfied with the Old Town Placentia Revitalization Plan and Zone adopted in 2017 near the proposed Metrolink station. Properties on Baker Street are within a "by -right" High Density residential sub -area of the Old Town Zone which allows housing at a base density of 65 units/acre. On February 6, 2024, subsequent to receiving a Planning Commission recommendation, City Council adopted a General Plan Amendment and Zone Change to expand the TOD land use designation and TOD zone by approximately 14.5 acres. The TOD zoning district allows up to 95 units/acre and the original 28 -acre TOD Zone was created by City Council on April 4, 2017. Densities in all of the aforementioned areas are considered conducive to affordable housing by HCD.
Regarding affordable housing production during the last several years, the City worked with the County of Orange, and in partnership with Mercy Housing California in 2018, to construct of a 49 -unit affordable (extremely low income) housing development for homeless and/or disabled Veterans (with an additional manager's unit). partially located on a property owned by Orange County Flood Control, leased to Mercy Housing and located within the City. Other affordable housing developments under construction include the Santa Angelina development at Church of the Blessed Sacrament (64 units). Another entitled development is USA Properties, which has been approved to construct 187 affordable workforce income restricted units, along with two manager units at 207-209 W. Crowther Avenue.
In addition, the City conducted a Request for Proposals (RFP) seeking an affordable housing developer to build on the City (or Agency) owned Tots on Baker Street which is a housing "by - right" sub -area of the Old Town Zone. Subsequent to selecting Mercy Housing California as the
City Council Agenda
March 19, 2024
preferred developer, City Council approved a Disposition and Development Agreement on March 5, 2024 with Mercy Housing California. This agreement transferred title of properties located at 300, 307, 312, 314, and 323 Baker Street to Mercy Housing California to facilitate the development of a 68 -unit affordable workforce housing development with onsite resident and management services.
In addition to the aforementioned affordable residential developments, the City entitled several developments since 2018. Of note, The Herald (215 units) was finished in 2021. JPI (Cenza) is finishing a 418 -unit residential apartment development. Toffoli Investments is constructing 151 for -sale residential townhomes on S. Van Buren St. Toffoli Investments also entitled a 39 -unit residential townhomes on Veterans Way. Several other developments (including a 100 - unit subdivision) are currently in the building plan check phase. In conclusion, the City of Placentia has been entitling and facilitating the construction of affordable and market rate housing units at a remarkably high pace since at least 2016.
Prepared by:
Reviewed and approved:
Jeannette Ortega J (sseph M. Lambert
Deputy Director of Administrative Services Director of Development Services Reviewed and approved by:
Damien R. Arrula
City Administrator
Attachments:
1. 2023 Housing Element Annual Progress Report
2. Tab A2 of Attachment 1, Printer Friendly Format