CITY OF RANCHO CORDOVA
JOINT MEETING OF THE RANCHO CORDOVA CITY COUNCIL AND THE RANCHO
CORDOVA PLANNING COMMISSION
Tuesday, February 28, 2023
5:30 PM – Special Joint Meeting with Planning Commission/Work Session American River Room North
City Hall
2729 Prospect Park Drive, Rancho Cordova
Pursuant to California Assembly Bill 361 amending the Ralph M. Brown Act (Govt. Code 54950-54963), the City has declared a state of emergency relating to COVID-19 and imposed measures to promote social distancing.
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Rancho Cordova City Council - AGENDA
Special Meeting of Tuesday, February 28, 2023
given by the City Clerk’s office to speak. Please wait to be called upon by the City Clerk.
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If you have questions related to the Special Meeting or the use of Zoom, please contact the City Clerk’s Office at (916) 851-8720 before Tuesday, February 28, 2023, at 2:00 p.m.
AGENDA
1. SPECIAL MEETING - CALL TO ORDER/ROLL CALL
Council Members Garrett Gatewood, Siri Pulipati, David Sander, Donald Terry, and Mayor Linda Budge
Planning Commission Members - Surender Devarapalli, Sergio Diaz, Lee Frechette, Robert McGarvey, Cynthia Stauss, Leroy Tripette, and Chair Anil Reddy Kondakrindi
2. PUBLIC COMMENT
At a special meeting, citizens wishing to address the Council and Planning Commission for any matter on the agenda may do so at the time the matter is discussed. Under the provisions of the California Government Code, the City Council and/or Planning Commission is prohibited from discussing or taking action on any item not on the agenda.
3. SPECIAL MEETING
3.1. Subject: Updates Regarding Recent State Housing Laws and Legislation.
Recommendation: Receive presentation, provide feedback.
4. ADJOURNMENT
ADDITIONAL INFORMATION
Special Meetings listed below are subject to change/cancellation without further notice.
Public documents related to items on the open session portion of this agenda, which are distributed to the City Council and/or Planning Commission less than 24 hours prior to the meeting, shall be available for public inspection at the time the documents are distributed to the Council and Planning Commission. Documents are available for inspection at the City Clerk's office located in Rancho Cordova City Hall.
The agenda items are accessible on the City’s website at www.cityofranchocordova.org on Fridays prior to the Special Meeting.
Rancho Cordova City Council - AGENDA
Special Meeting of Tuesday, February 28, 2023
UPCOMING MEETINGS
March 6, 2023 4:00 PM Special Meeting/Regular Meeting
March 15, 2023 5:30 PM Regular Meeting
April 3, 2023 4:00 PM Special Meeting/Regular Meeting
April 11, 2023 5:30 PM Special Meeting/Work Session
April 17, 2023 5:30 PM Regular Meeting
May 1, 2023 4:00 PM Special Meeting/Regular Meeting
May 15, 2023 5:30 PM Regular Meeting
May 23, 2023 5:30 PM Special Meeting/Work Session
If you have any technical questions related to the agenda items, please contact City Hall at (916) 851-8700.
A webcast of this meeting will be available for viewing via video streaming from the City’s website within 48 hours of adjournment of this meeting.
In compliance with the Americans with Disabilities Act, if you need a disability-related modification or accommodation, including auxiliary aids or services, to participate in this meeting, please contact the City Clerk’s Office at (916) 851-8720 at least 24 hours prior to the meeting.
CERTIFICATION OF POSTING OF AGENDA
I, Stacy Leitner, City Clerk for the City of Rancho Cordova, declare that the foregoing agenda for the February 28, 2023 Special Joint Meeting of the Rancho Cordova City Council and the Rancho Cordova Planning Commission was posted and available for review on February 24, 2023 at City Hall of the City of Rancho Cordova, 2729 Prospect Park Drive, Rancho Cordova, California, 95670. The agenda is also available on the city website at www.cityofranchocordova.org.
Signed February 24, 2023 at Rancho Cordova, California.
Stacy Leitner, CMC
City Clerk
MEMORANDUM
Staff Report - Page 1 of 2
ITEM 3.1.
DATE: February 28, 2023
TO: Honorable Mayor, Council Members, and Planning Commissioners
FROM:
Stefan Heisler, Housing Manager
Darcy Goulart, Planning Manager
Adam Lindgren, City Attorney
SUBJECT: UPDATES REGARDING RECENT STATE HOUSING LAWS AND
LEGISLATION
RECOMMENDATION
Receive presentation, provide feedback.
RESULT OF RECOMMENDED ACTION
The City Council and the Planning Commission will receive a presentation from the City Attorney regarding prominent new housing laws passed in the last three years and request Council and Planning Commission feedback on project approval processes.
BACKGROUND
The California State Legislature has adopted numerous laws in recent years aimed at addressing the current statewide housing crisis. These laws have affected how local jurisdictions plan for housing, review housing development applications, and in some cases limit local control in approving or denying projects.
This presentation will focus on the following new laws: SB 35, changes to the State’s Housing Accountability Act, SB 330, changes to Density Bonus Law, changes to General Plan Housing Element rules, SB 6 & AB 2011. A brief description of these new laws is provided below, further details are provided in the presentation.
SB 35 allows for a streamlined ministerial, or staff level, approval process of multifamily residential projects that satisfy certain requirements. This law applies to all jurisdictions that have not issued building permits for their annual share of the current regional housing needs allocation, and is in effect for Rancho Cordova and nearly all jurisdictions in California. Housing Accountability Act changes include new limitations on when a jurisdiction can disapprove of a housing project and certain project review timelines. SB 330 similarly modifies the Housing Accountability Act to limit disapproval of qualifying projects and provides a new preliminary application pathway that locks in development standards that can be used to review certain projects.
Density Bonus Law provides a standard ability for developers of affordable units to receive
Staff Report - Page 2 of 2
specific density bonuses to build additional units within their development projects, and incentives that provide relief from certain local development standards. Recent changes have increased the amount of bonuses, incentives, and waivers available.
Changes to the General Plan Housing Element highlighted in this presentation include changes as a result of AB 1397, which allows projects including a specified amount of affordable housing to go through a by-right approval process when proposed for sites that have been identified for lower-income housing in multiple successive housing element cycles.
SB 6 & AB 2011 are new complementary laws passed in 2022 that allow housing uses in a broader range of principal use areas (e.g. office, retail, or parking), require prevailing wages, and require projects to comply with various other development standards. These two laws differ in which housing projects qualify, where they are located, and other labor standard requirements.
FISCAL IMPACT AND FUNDING SOURCE
There is no fiscal impact for this discussion.
ATTACHMENT(S)
1. Presentation
Housing Law Update
2023
ITEM 3.1.
ATTACHMENT 1
2 • In recent years, the Legislature has adopted numerous la
ws aimed at addressing the housing crisis
• Some of the laws limit local control for qualifying
p
rojects
– Often for projects with an affordable component, but not alw
ays
• These laws are being used
more and more by developers
Overview
ITEM 3.1.
ATTACHMENT 1
Affordable Housing 101
ITEM 3.1.
ATTACHMENT 1
4 • Housing that is required to be rented/sold at affordable pr
ices to households with incomes of no greater than
certain levels
• Key Measurement is Area Median Income (AMI)
– Above Moderate Income = More than 120% AMI
– Moderate Income = Less than 120% AMI
– Low Income = Less than 80% AMI
– Very Low Income = Less than 50% AMI
• In Sacramento County, for a family of four, the median i
ncome is $102,200
Affordable Housing 101
ITEM 3.1.
ATTACHMENT 1
5 • For rental unit, the tenant’s housing cost (rent + utilities) c
annot exceed a set value:
– For a Very Low-i ncome unit, the monthly housing costs may not exceed 30% of 50% of AMI divided by 12
• For ownership units, there is a cap on resale price or e
quity sharing to ensure continued affordability
• Deed restrictions lay out specific requirements for 45 or 5 5 years
Affordable Housing 101
ITEM 3.1.
ATTACHMENT 1
SB 35
ITEM 3.1.
ATTACHMENT 1
7 • Allows f or streamlined ministerial approvals of
multifamily residential projects that satisfy certain
requirements
• Applies in cities that have issued fewer building
p
ermits than their share of the regional housing
needs (“RHNA”) by income category
– SB 35 applies in Rancho Cordova and almost every city in C
alifornia
SB 35
ITEM 3.1.
ATTACHMENT 1
8 • For projects larger than 10 units, at least 1 0% of the units must be affordable to households making
below 80% of AMI
• In cities that have met above-m oderate income
RHNA goal, 50% of the units must be affordable to
households making below 80% of AMI
SB 35 – Affordability
ITEM 3.1.
ATTACHMENT 1
9 • Project site must have zoning or general plan land
u
se designation that allows residential
– If mixed-u se, at least 2/3 of the square footage
must be residential
• Project must comply with all o
bjective zoning and
design standards
• Project must comply with certain other standards,
in
cluding cite and labor standards
SB 35 – Requirements
ITEM 3.1.
ATTACHMENT 1
10 • Objective standards in volve no personal or
subjective judgment by a public official and
are uniformly verifiable
– Height limits
– Density
– Setback requirements
• Subjective standards in volve personal or
subjective determinations
– Conforms with neighborhood character
– Uses similar materials to surrounding buildings
Objective vs. Subjective
ITEM 3.1.
ATTACHMENT 1
11 • 60 days from project submittal to determine if the p
roject conflicts with any “objective planning
standards” (90 days if the project is more than 150
units)
– Deemed compliant if response not timely given
• Any other review must occur within 90 days (180
d
ays for a large project)
• Ministerial Approval process, so CEQA does not apply
SB 35 – Requirements
ITEM 3.1.
ATTACHMENT 1
12 • RCMC Chapter 23.137
• For projects that comply with development standards
a
nd either: 1) substantially conform with City’s
multifamily design guidelines, or 2) satisfy objective
multifamily design guidelines
• Community Development Director must make
de
termination within 30/60 days
– No public hearing, but subject to appeal
– Environmental review pursuant to CEQA required
Streamlined Design Review Permit
ITEM 3.1.
ATTACHMENT 1
Housing Accountability Act
ITEM 3.1.
ATTACHMENT 1
14 • Existing law that has been on the books for a
numbe
r of years
• Law’s importance has grown in recent years
• Developers and “YIMBY” groups increasingly
us
ed HAA as tool to challenge housing project
denials
Background: Housing Accountability Act
ITEM 3.1.
ATTACHMENT 1
15 • Jurisdiction c annot disapprove of housing
project or approval at a lower density if it
complies with applicable, objective standards
in place at the time the application is deemed
complete
• Jurisdiction must identify inconsistencies in
w
riting within 30/60 days, depending on the
number of units
Housing Accountability Act
ITEM 3.1.
ATTACHMENT 1
16 • City can only d eny a project or approve it with lower density if a preponderance of the evidence in the
record demonstrates:
– Project would have a “specific, adverse impact upon the publ
ic health or safety”
– “Significant, quantifiable, direct, and unavoidable impact, ba
sed on objective, identified written public health or
safety standards, policies, or conditions as they existed on the date the application was deemed complete”
– No feasible method to satisfactorily mitigate or avoid the ad
verse impact
Housing Accountability Act
ITEM 3.1.
ATTACHMENT 1
17 • Very difficult standard to meet to deny a project
• Violations subject to fines of up to $10,000 per unit But
• Projects are still subject to a discretionary review
p
rocess, and City can impose conditions of approval
that don’t make a project infeasible
• Subject to CEQA review
Housing Accountability Act
ITEM 3.1.
ATTACHMENT 1
18 Modifies Housing Accountability Act
• Jurisdiction cannot disapprove of housing
p
roject/approval at a lower density if it complies with
applicable, objective standards in place upon complete
preliminary application
• Preliminary application requires less than a full, complete a
pplication
– Must contain information required by jurisdiction’s checklist, w
hich can only require certain, limited information
SB 330 – Housing Crisis Act of 2019
ITEM 3.1.
ATTACHMENT 1
19 Modifies Housing Accountability Act
• Locks in standards earlier in the development process – Fees can be adjusted in accordance with the existing CPI escalator • Complete application required within 180 days
– Construction must start within 2.5 years (3.5 years if affordable) • Changes to the project allowed, including increasing the number of units or square footage by up to 20%
– Project must still comply with standards in place at the time the p
reliminary application submitted
SB 330 – Housing Crisis Act of 2019
ITEM 3.1.
ATTACHMENT 1
20 • Prohibits cha nges to a parcel on which residential use is allowed to a “less intensive use,” including “anything that would lessen the intensity of housing,” such as:
– Reduction in height or density
– Increased setback requirements
o
r maximum lot coverage requirements
• Prohibits j urisdiction from e nforcing subjective design standards established after January 1, 2020
SB 330 – Housing Crisis Act of 2019
ITEM 3.1.
ATTACHMENT 1
21 • Prohibits m ore than five “hearings” of any kind for projects that meet all applicable, objective standards
after the application is deemed complete
– Includes public hearings, workshops, study sessions, or sim
ilar meeting
– Includes appeals
– Includes meetings of the City Council, Planning
C
ommission, or any subcommittee
SB 330 (cont.)
ITEM 3.1.
ATTACHMENT 1
Density Bonus Law
ITEM 3.1.
ATTACHMENT 1
23 • Developers who build a certain percentage of
a
ffordable units in a project are entitled to a specific density bonus
– For example: If density for a parcel is 20 units/acre and de
veloper received a 10% density bonus, project could
have a density of 22 units/acre
• The greater the percentage of affordable units, the
l
arger the density bonus
• Inclusionary units count toward bonus
Density Bonus Law
ITEM 3.1.
ATTACHMENT 1
24 Density Bonus Law
Affordable Unit
Percentage
Very-Low
Income Density
Bonus
Low Income
Density Bonus
Moderate
Income Density
Bonus
5% 20% - -
8% 27.5% - -
10% 32.5% 20% 5%
13% 35% 24.5% 8%
15% 35% 27.5% 10%
20% 35% 35% 15%
25% 35% 35% 20%
30% 35% 35% 25%
35% 35% 35% 30%
40% 35% 35% 35%
100% 80% 80% 35%
ITEM 3.1.
ATTACHMENT 1
25 • Qualifying projects are also entitled to up to 4
i
ncentives depending on the percentage of affordable
units
– An incentive is a reduction in site development standards o
r a modification of zoning code/design requirement
– Examples include decreased parking, increased height, e
limination of required amenities or architectural standard • Density Bonus projects are also subject to maximum
pa
rking requirements, which can be further decreased
through the use of an incentive
• One bedroom or smaller -> 1 space
• 2-3 b edrooms - > 1.5 spaces
Density Bonus Law
ITEM 3.1.
ATTACHMENT 1
26 • Density Bonus projects are also entitled to
wa
ive any development standard that would
physically prevent the project from being built
at the permitted density and with the granted
incentives
• Waiver does not require elimination of “amenities”
• There is no limit to the number of waivers a
p
roject may receive
Density Bonus Law
ITEM 3.1.
ATTACHMENT 1
27 • City is required to grant the density bonus, concession or
waiver unless it would:
– Violate state or federal law
– Have a “specific, adverse impact upon the public health or s
afety”
– Not result in identifiable and actual cost reductions (for i
ncentives only)
• Municipal Code designates C ity Council as approving
authority
• Project receiving bonus, concession, or wavier is
c
onsistent with objective standards
Density Bonus Law
ITEM 3.1.
ATTACHMENT 1
28 • “Policy H.1.6 – Al low housing developments with at least 20 percent affordable housing by-right on lower-
income housing sites that have been counted in
previous housing element cycles, consistent with AB
1397”
• Applies to sites identified in housing element that was i
n the past two housing elements but not developed
• Cannot be subject to conditional use permit or other
d
iscretionary review, except for design review
Ministerial Approval Under Housing Element
ITEM 3.1.
ATTACHMENT 1
29 What is “by right” approval?
• Not subject to conditional use permit or any
o
ther discretionary review, except for design
review
• Not subject to CEQA review
Ministerial Approval Under Housing Element
ITEM 3.1.
ATTACHMENT 1
SB 6 & AB 2011
ITEM 3.1.
ATTACHMENT 1
31 • New laws allow housing on s ites where office, retail, or parking are a principally permitted use
– Cannot be adjacent to industrial site
• AB 2011 creates streamlined ministerial approval
p
rocess for projects that are either:
– 100% Affordable to lower income households; or
– Along “commercial corridor”
• SB 6 does not create ministerial approval process,
b
ut projects are subject to HAA
SB 6 & AB 2011
ITEM 3.1.
ATTACHMENT 1
32 • Projects must have a minimum density of 30
u
nits/acre
• Projects must comply with various other
d
evelopment standards, for site and project
– For some standards there is requirement specified in
t
he laws
– For other s tandards the requirement is taken from a
specified City zoning district
• All projects must pay prevailing wage, SB 6 projects
m
ust use “skill and trained workforce”
SB 6 & AB 2011
ITEM 3.1.
ATTACHMENT 1
33 • Projects that comply with City’s objective standards a
nd that satisfy the requirements of SB 35
• Projects that comply with the subjective design
r
eview standards are eligible for Streamlined Design
Review Permit
• Projects located on sites identified in h ousing
element that were also in the past two housing
elements but which did not develop
• Projects on commercial properties that qualify for AB 2011
Projects Subject to Ministerial Approval
ITEM 3.1.
ATTACHMENT 1
34 1. When and how would the Council like to receive
u
pdates on projects subject to ministerial approval?
2. How should the maximum five hearings be
d
istributed between the Planning Commission and
City Council?
3. Should the City Council remain the approving
a
uthority for all projects receiving density bonuses?
Requested Direction
ITEM 3.1.
ATTACHMENT 1
35 Questions?
Q&A?
ITEM 3.1.
ATTACHMENT 1