CITY COUNCIL STAFF REPORT
Meeting Date: December 13, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: JOINT STUDY SESSION TO REVIEW THE DRAFT SIXTH CYCLE
HOUSING ELEMENT COVERING THE PLANNING PERIOD OF
JANUARY 31, 2023 THROUGH JANUARY 31, 2031
SYNOPSIS
The City Council and the Planning Commission are holding a joint study session on the City’s Draft Housing Element. The purpose of the study session is to provide an overview of the Draft Housing Element, collect feedback from the public, and receive direction from the City Council and the Planning Commission. The City Council and the Planning Commission, are requested to direct staff to submit the Draft Housing Element to the California Department of Housing and Community Development (HCD) for its initial 90-day review.
DISCUSSION
The purpose of the Housing Element is to establish a comprehensive plan to address housing needs in Pleasant Hill for the next eight years. The Housing Element sets the policies surrounding the development, rehabilitation, and preservation of housing units that meet the needs of Pleasant Hill residents.
The City of Pleasant Hill last updated its Housing Element in 2015 for the 5th Housing Element Cycle covering the planning period from January 31, 2015, to January 31, 2023. As required by State law, this Housing Element Update covers the planning period from January 31, 2023, through January 31, 2031, also known as the 6th Housing Element Cycle.
Housing Element Update Components
The Draft Housing Element consists of two parts: the Policy Document and the Needs Assessment. For ease of use, these have been combined into a single PDF for the Public Review Draft.
The Policy Document states goals, policies, implementing programs, and quantified objectives for the development, rehabilitation, and preservation of housing. The Policy Document is presented first in the Public Review Draft. The Needs Assessment identifies and analyzes existing and projected housing needs to inform policy development. Within this document, the Resources section provides a list of sites for housing development that are adequate to accommodate the City’s Regional Housing Needs Allocation (RHNA).
General Plan Advisory Committee Review
Five meetings have been held by the General Plan Advisory Committee (GPAC) to discuss housing issues in Pleasant Hill and inform the drafting of the Housing Element. The GPAC reviewed and discussed potential sites for higher density residential land uses with sufficient capacity to meet the State-mandated housing goals. Initially, the GPAC recommended that staff carry forward eight Housing Opportunity Sites for consideration in addition to the changes recommended in the Focus Areas of the concurrent General Plan Update. Subsequently, the Housing Opportunity Sites were refined, which resulted in seven sites carried forward into the Housing Element sites inventory as sites requiring a rezone (sites A-L).
Each of the meetings included an opportunity for public comment. All comments received from the public during GPAC meetings are available in Appendix C of the Draft Housing Element - Needs Assessment (Attachment A). A summary of GPAC meetings related to the Draft Housing Element is summarized below:
The first GPAC meeting that focused on the Housing Element was held on May 11, 2021.
The meeting included an introduction to housing elements and the RHNA; a discussion of GPAC focus areas, buildout assumptions, potential housing opportunity sites; and opportunities for public comment.
A subsequent GPAC meeting, held on June 23, 2021, included an initial review of potential housing opportunity sites and a discussion of potential housing capacity. During this meeting, significant amounts of public comment were received, particularly regarding the consideration of the Mangini-Delu site as a housing opportunity site. On November 17, 2021, the GPAC reviewed and considered the sites recommended by the GPAC at the June 23, 2021 meeting and discussed a recommended approach for land use alternatives that incorporate housing opportunity sites. The GPAC recommended moving forward with the Housing Element sites inventory based on the GPAC Preferred Alternative Land Use Plan.
On January 26, 2022, the GPAC reviewed an overview of the Alternatives process and the incorporation of Housing Element Opportunity Sites, a discussion of the changes to Focus Areas based on the Housing Element sites inventory, and a summary of potential housing capacity under the revised GPAC-Preferred Alternative. At a GPAC Meeting on June 29, 2022, the Draft Housing Element Policy Document was reviewed. The meeting included a discussion of key findings from the Needs Assessment and program requirements; and a review of each program contained within the Draft Policy Document. Following the meeting, staff revised the Policy Document based on GPAC direction and feedback.
Public Outreach
In response to the need for public participation, in addition to various GPAC meetings, City planning staff worked with consultants to develop a robust community engagement program tailored to ensure the community and other stakeholders are engaged in the process and are given ample opportunities to provide input. The engagement program includes branding, a project website, business cards, newsletters and e-blasts, announcements on the City website and social media, a workshop and town hall meeting, a fair housing survey, multiple GPAC meetings, and Planning Commission and City Council study sessions and hearings.
RHNA Overview
Each jurisdiction in California is required to plan for its fair share of the region’s housing need, which includes the regional need for the nine counties of the Bay Area. This fair share is determined by the State Department of Housing and Community Development (HCD) through a process called the Regional Housing Need Determination (RHND). After HCD identifies the total housing need for each region of the State, regional Councils of Government, in this case the Association of Bay Area Governments (ABAG), are then responsible for distributing this need across the local governments within the region. This distribution process is also known as the Regional Housing Needs Allocation (RHNA) process. Once a local government has received its RHNA, it must revise its housing element to show how it plans zone residential land to accommodate its portion of the region’s housing need. The RHNA is one of the primary threshold criteria necessary to achieve HCD support of the Housing Element.
Table 1 (on the following page) shows Pleasant Hill’s RHNA for the 2023-2031 Housing Element (6th Cycle) and illustrates the appreciable increase from the 5th Cycle requirements.
Table 1: RHNA Comparison Between 5th and 6th Cycle Requirements Lower
Moderate Above
Moderate
Total
Very RHNA
Low Low
5th Cycle 118 69 84 177 448
6th Cycle 566 326 254 657 1,803
Unit Change + 448 + 257 + 170 + 480 + 1,355
% Change + 380% + 372% + 202% + 271% + 302%
Due to the State's No-Net-Loss Zoning law (SB 166, 2017), each jurisdiction must provide an additional 20 percent buffer across lower and moderate-income categories to ensure that affordability is preserved. This buffer allows some units to be developed outside the projected income area (i.e. moderate income housing on a lower-income site) without the City falling into a deficit in any individual category.
Table 2: Regional Housing Need Allocation and HCD-Required 20 Percent Buffer, Pleasant Hill
Lower
Moderate
Above
Moderate Total
Very
Low
Low
Required RHNA 566 326 254 657 1,803
Required RHNA plus 20%
Buffer 679 391 305 657 2,032
Capacity to Meet the RHNA
The Draft Housing Element provides capacity to meet the RHNA through pipeline projects, projected construction of accessory dwelling units (ADU), vacant sites, and the eight GPACrecommended Housing Opportunity Sites. Table 3 below shows a summary of total RHNA capacity. As shown, the City currently has 380 units in pending and approved projects, including 106 lower income units. Based on recent trends, the City projects 320 ADUs in the upcoming planning period. Although the City is mostly built out, there are 37 vacant parcels zoned appropriately for residential development with a capacity for 232 new housing units.
Finally, as discussed previously, the GPAC identified Housing Opportunity Sites with potential for redevelopment to high-density mixed use. These Housing Opportunity Sites require a rezone in line with the City’s Preferred Land Use Alternative. Under the designation proposed through the Preferred Land Use Alternative, these sites provide the capacity for 1,192 new units.
In total, the Draft Housing Element identifies capacity for 2,124 housing units through existing approved projects, projected ADU development, and the development of vacant and underutilized parcels, including the capacity to meet the RHNA and buffer requirement across all income categories. The figure on the following page shows the location of pending projects, vacant sites, and Housing Opportunity Sites.
Table 3: Summary of Progress toward the RHNA (6th Cycle) Lower Moderate
Above
Moderate Total
Required RHNA (6th Cycle) 892 254 657 1,803
Total Planned Units (6th Cycle) 1,157 308 659 2,124
Credits Assumed ADUs 0 280 40 320
Pending and Approved Projects 106 14 260 380
Sites Vacant Sites 0 0 232 232
Housing Opportunity Sites 1,051 14 127 1,192
Total Planned Units (6th Cycle) 1,157 308 659 2,124
Required RHNA plus 20% buffer 1,070 305 657 2,032
Surplus (beyond “RHNA plus 20%”) + 87 + 3 + 2 + 92
Percentage of Required RHNA (6th Cycle) 130% 121% 100% 118%
Changes to State Law
The California legislature has passed several housing bills since the City adopted its previous Housing Element in 2015. These changes to Housing Element law must be addressed in the current update. While the City complies with many of these laws, the following list summarizes major changes that were made in the 2023-2031 Housing Element update in response to these legislative changes.
Affirmatively Furthering Fair Housing (AFFH). In response to AB 686 (2017), the City incorporated a new fair housing analysis that can be found in Appendix A: Affirmatively Further Fair Housing. The analysis identifies fair housing issues in the community that the City must proactively work to overcome. To do this, the City has bolstered implementation programs with meaningful actions and objectives that work to overcome fair housing issues and their contributing factors. For more information, please see section 1.8: Contributing Factors, beginning on page A-56 (Attachment A).
No-Net-Loss Zoning. In response to SB 166 (2017), the City included an additional 20 percent buffer in the residential sites inventory, as discussed above and shown in Table 2. Although the City is mostly built out, the City worked with the public to identify sites with potential for redevelopment to mixed use with high density residential. These sites are underutilized with lowdensity uses, large parking lots, old structures, and low improvement values compared to land values. At Mixed Use High (40-70 dwelling units/acre) and Mixed Use Very High (70-100 dwelling units/acres) these sites provide combined capacity for 1,192 units, approximately 2/3 of the RHNA total. Housing Opportunity Sites are discussed beginning on page 4-128 (Attachment A). A summary of capacity to meet the RHNA and required buffer is provided on page 4-160 (Attachment A).
Implementation Programs. The implementation programs in the Policy Document commit the City to specific actions to address housing needs, constraints, and fair housing issues. The 2023- 2031 Housing Element continues and expands upon many successful existing programs. New implementation programs included to address new State requirements are summarized below. Program E: Surplus and Excess Public Land Inventory. In accordance with AB 1486 (2019) and AB 1255 (2019), this new program commits the City to create a publicly visible inventory of surplus and excess public land with potential for residential development.
Program F: Increase Allowable Densities. This program commits the City to increase allowable densities in line with the General Plan Preferred Land Use Alternative. The program also includes the rezone requirements mandated for any Housing Opportunity Site with a proposed rezone.
Program G: Housing Information Transparency. Required by State law, this program requires the City to post housing related information on the City website to increase transparency.
Program O: Municipal Code Updates. This program outlines required updates to the municipal code triggered by changes in state law and constraints identified in the Needs Assessment.
Program Q: Place-based Density Increases. Program Q commits the City to revise the Zoning Code to allow urban lot splits, duplexes, and other two-unit projects in singlefamily residential zones in accordance with Senate Bill 9. Program R: Missing Middle Housing. Missing middle housing types provide diverse housing options, such as duplexes, fourplexes, cottage courts, and multiplexes compatible in scale and form to detached single-family homes. This program commits the City to evaluate and revise zoning standards, as appropriate, to increase the variety of housing types in the city, with particular emphasis on housing affordable to the local workforce.
By providing for additional capacity, and particularly affordable opportunities, in high resource areas, this program satisfies a new requirement that Housing Elements address housing mobility through program action(s).
Program EE: Housing Opportunity Sites. This program works to incentivize redevelopment at Housing Opportunity Sites and to publicize available incentives on the City website.
Program FF: Affordable Housing in High Opportunity Areas. This program works to overcome fair housing issues by working to promote multi-unit development in lowdensity zones. By expanding capacity in high resource areas, and particularly lower- and moderate-income capacity, the City can work to relieve displacement pressures on multifamily zones where affordable units are more concentrated. Program UU: Affirmatively Furthering Fair Housing. This program, required by new State law, commits the City to address disparities in housing needs and access to opportunity for all residents and to work proactively to overcome fair housing issues. The program includes additional fair housing objectives and identifies programs that work to address each fair housing issue identified in the AFFH Analysis.
The Public Review Draft Housing Element is not the final adopted/certified document. There will be future public hearings and public comment opportunities. This Draft was posted for public comment from November 9, 2022 to December 9, 2022. Following the 30-day public review period, the Draft will be revised and submitted to the California Department of Housing and Community Development (HCD) for an initial 90-day review. Following the 90-day review, HCD will submit comments to the City, after which the City will revise the Housing Element accordingly and initiate a process to adopt. The City will hold public hearings before the Planning Commission and City Council in April or May, 2023. The adopted Housing Element document will then be submitted to HCD for a final 60-day review and certification.
Next Steps
Following Planning Commission and City Council review and comments on December 13, 2022, staff and consultants will review input and revise the document accordingly. After this review period, the City will submit the revised Draft to HCD for the initial 90-day review.
Upon completion of HCD review, staff and consultants will revise the Draft to respond to HCD’s comments. The Final Housing Element will be submitted to the Planning Commission for recommendation and the City Council for adoption in the spring. Once adopted, the Housing Element will then be submitted to HCD for review and certification.
FISCAL IMPACT
None
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. In addition, additional notice was made through posting of an A-Frame at the Police Station, posting on the City Hall Changeable Message Sign, through City social media outlets, email blasts, newspaper notice and on the City website and the pleasanthill2040.com website. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Review and discuss the Draft Housing Element Update, receive and consider public input, and provide comments to staff on recommended revisions and direction to submit the Draft Housing Element to the California Department of Housing and Community Development (HCD) for its initial 90-day review.
ATTACHMENT(S):
A. Draft Housing Element
B. Housing Element Newsletter
C. Public Comments
Prepared by: Troy Fujimoto, City Planner
Reviewed by: Ethan Bindernagel, Community Development Director Approved by: June Catalano, City Manager