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.gov
June 3, 2022
Daniel Casey, Acting Manager
Community Development Department
City of Rialto
150 South Palm Avenue
Rialto, Ca 92376
Dear Daniel Casey:
RE: City of Rialto’s 6
th Cycle (2021-2029) Adopted Housing Element
Thank you for submitting the City of Rialto’s (City) housing element adopted March 8, 2022 and received for review on April 5,2022. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from Inland Counties Legal services pursuant to Government Code section 65585, subdivision (c).
The adopted housing element addresses many statutory requirements described in HCD’s December 13, 2021, review; however, the element was not revised to address all of HCD’s prior findings and additional revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes revisions needed to comply with State Housing Element Law.
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 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.
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.
Daniel Casey, Acting Manager
For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), as the City failed to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), Program 2B (rezone to Provide Adequate Sites to Accommodate regional housing needs allocation (RHNA)) to rezone sites to accommodate the RHNA must 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.
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-pl
an/guidelines.html
HCD is 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 Jose Armando Jauregui, of our staff, at [email protected]
Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
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th Cycle Adopted Housing Element Page 1
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APPENDIX
CITY OF RIALTO
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/community-development/housing-element/housing-element- memos.shtml. Among other r esources, 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 further[ing] 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).)
High Segregation and Poverty: The prior review found the element must analyze areas of high segregation and poverty, including patterns, trends, local data and knowledge, other relevant factors and particularly the condition of the areas. In response, the element now identifies the areas with a brief description that the areas are older with a mix of uses, including industrial and residential uses. However, the element must include a specific analysis to inform the appropriate policies and programs and assure an equitable quality of life. The analysis should address how these areas relate to other areas in the City such as the conditions of the neighborhood relative to quality of life (e.g., housing conditions, infrastructure, parks, community amenities, safe routes to school, environmental health). The analysis should also discuss how these areas overlap with other components of the assessment of fair housing (e.g., segregation and integration, disproportionate housing needs) and should evaluate the effectiveness or absence of past strategies related to equitable quality of life. Based on the outcomes of this analysis, the element must add or modify programs.
Disproportionate Housing Needs including Displacement: The element now includes discussion of displacement risk but as noted in the prior review, it must also address the disproportionate housing needs of persons experiencing homelessness. The analysis should specifically discuss impacts on protected characteristics (e.g., race, disability), patterns and trends within the City and access to services and transportation. Based on the outcomes of this analysis, the element should add or modify programs.
Affirmatively Furthering Fair Housing (AFFH) and Identified Sites: As noted in the prior review, the element shows that sites will either maintain the status quo or worsen areas experiencing several fair housing issues. Further, the prior review found the element should include analysis, strong reasoning, and accurate conclusions about the location
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th Cycle Adopted Housing Element Page 2
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of sites and impact on current fair housing conditions to inform appropriate policies and programs to promote inclusive communities and equitable quality of life.
In response, the element now explains a majority of sites for the lower-income regional housing need allocation (RHNA) are identified in main corridors near transportation, services and economic and community resources and that the City will encourage a mix of affordability across the City. However, the element should evaluate the impact of identified sites by the number of units and income groups on areas or neighborhoods.
This analysis should also address the number of units for the moderate and above moderate RHNA, particularly in the northern areas. Based on the outcomes of this analysis, the element should add or modify programs with specific commitment, metrics, milestones and geographic targeting that is commensurate with the level of isolation of the RHNA to promote inclusive communities and equitable quality of life.
Local Data and Knowledge and Other Relevant Factors: The element generally was not revised to address this finding from the prior review. Local data and knowledge and other relevant factors are essential to a complete analysis and should be utilized to complement state and federal data and mapping for all components of the assessment of fair housing (e.g., segregation and integration, disparities in access to opportunity). In turn, a complete analysis should be utilized to formulate appropriate policies and programs. Please see HCD’s prior review and guidance at https://www.hcd.ca.gov/community-development/affh/index.shtml for additional information.
Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should reassess and prioritize contributing factors to fair housing issues to formulate appropriate policies and programs.
Goals, Actions, Metrics, and Milestones While some actions were listed, the adopted element generally not revised to meet this requirement. Based on the outcomes of a complete analysis, the element must be revised to add or modify goals and actions.
Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics, milestones and geographic targeting to promote inclusive community and equitable quality of life. Based on the analysis, actions must address housing mobility enhancement, new housing choices and affordability in higher opportunity areas, place-based strategies for community preservation and revitalization and displacement protection.
2. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).)
Housing Stock Conditions: The element was not revised to address this requirement and must still be revised to estimate the number of units in need of rehabilitation and
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th Cycle Adopted Housing Element Page 3
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replacement and add or modify programs as appropriate. 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).)
Realistic Capacity: The element indicates residential capacity was conservatively calculated for buildable acreage based on 80 percent of maximum allowable densities and discounts gross acreage, accounting for land use controls, environmental conditions and other factors. Yet, in most cases, gross acreage appears to be the same as buildable acreage on identified sites, resulting in a less conservative calculation. The element should either explain this approach or adjust acreages in the inventory to calculate a realistic capacity. In addition, the element now lists some projects to support the 80 percent of maximum allowable densities factor, virtually all of which appear to be from Fontana. The element lists one project from the City. The element should list other projects from the City. In addition, the listing should also include the maximum allowable density of the zone to better support assumption. Finally, the prior review found the calculation of residential capacity should account for the likelihood of 100 percent nonresidential development. The element was not revised to address this finding and should still account for 100 percent nonresidential uses. Please see HCD’s prior review for additional information.
Nonvacant Sites: The element now includes specific discussion of identified sites and existing uses and lists some past redevelopment experience in nearby Fontana.
However, the element should relate recent experience in redevelopment to identified sites or include additional information on existing uses to demonstrate no impediments to additional development. For example, many sites note marginal uses or substantial parking and underutilized space. The element could list and explain recent redevelopment on sites with similar characteristics. Alternatively, the element could describe additional indicators of turnover on identified sites to demonstrate redevelopment potential. For example, the inventory could list improvement to land value ratio, existing versus allowable densities, age of structure, structural conditions, absences of investment, for sale signs, space vacancies, recent and frequent property turnover.
The element appears to rely on nonvacant sites to accommodate 50 percent or more of the RHNA for lower-income households, which triggers requirements to make findings based on substantial evidence that the existing use is not an impediment and will likely discontinue in the planning period. The March 8, 2022 adoption resolution does not address this requirement. As part of re-adoption, the element must revise the analysis of nonvacant sites as appropriate and make this finding based on substantial evidence.
Specific Plans: The element now lists specific plans by parcel and credits entitled projects toward the moderate and above moderate-income RHNA. In addition, the
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th Cycle Adopted Housing Element Page 4
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identified parcels are listed by a general plan designation of Specific Plan and zoning that matches the name of the specific plan (e.g., Foothill Boulevard, Lytle Creek). The element should also list these parcels by the zoning within the specific plan and should describe the methodology for using these sites toward the moderate-income RHNA based on anticipated or actual sales prices or rents or appropriate densities.
Accessory Dwelling Units (ADU): The element now assumes a total of 72 ADUs over the planning period based on permitted units between 2019 and 2021. This methodology meets statutory requirements. However, the City should still reconcile the differences in the City and HCD records. Please contact HCD’s annual progress report unit for additional information and direction at
[email protected].
Electronic Sites 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. As of today, HCD has not received an electronic inventory. Any future re-adopted versions of the element must also submit the electronic version of the sites inventory to
[email protected].
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: The prior HCD review found the element should analyze land use controls independently and cumulatively for impacts on housing supply, cost, timing, and ability to achieve maximum densities. In response, the element includes general conclusions that controls are not constraints with no analysis to support the conclusion, particularly for impacts on housing costs. Based on HCD’s review, minimum lot size and lot coverage for the R-3 zone appear to be a constraint and the element should have a specific commitment to address the constraint. In addition, the element concludes parking requirements are not a constraint since the requirements are similar to other cities in the region. This is not a sufficient justification, particularly, since other cities might be imposing constraints as well. The element must address the cost impacts of garage requirements for multifamily development and should revise Program 4B (Remove Development Constraints) with specific commitment to address this constraint.
Processing and Permit Procedures: The element now lists approval findings for typical single family and multifamily development but should also analyze those approval findings for impacts on cost, timing and approval certainty. For example, multifamily development is subject to, among others, the following finding:
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th Cycle Adopted Housing Element Page 5
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The proposed use and development are deemed essential or desirable to provide a service or facility which will contribute to the convenience or general well‐being of the neighborhood or community
The element should analyze how this finding, with subjective terms such as “desirable” and “general well-being of the neighborhood or community”, is implemented and any potential impacts such as denials, increase in number of hearings, redesigns, application process. Based on the outcomes of this analysis, the element should modify programs to address identified constraints.
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 and Building Permit Timing: While the element now analyzes requests for densities less than those identified in the sites inventory, it still must analyze the length of time between receiving approval for a housing development and submittal of an application for building permits, address any hinderance on the development of housing and include programs as appropriate.
B. Housing Programs
1. 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. In addition, the element should be revised as follows:
• Housing Program 2B (Rezone to Accommodate RHNA): This Program should be revised to require minimum densities of 20 units per acre. Currently, the program commits to minimum densities of 16 or 20 units per acre. • Program 2S (Surplus Land Act): The element now includes this Program to comply with the Surplus Land Act and “consider” implementing incentives within 3 years. However, this Program must still include a schedule of actions to facilitate development on publicly owned sites as assumed in the inventory. For example, the Program should commit to when sites and requests for proposals will be released, when the City anticipates approvals and how many units by affordability are anticipated in the planning period.
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th Cycle Adopted Housing Element Page 6
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2. 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 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. In addition, the element should be revised as follows:
• Program 4B (Remove Development Constraints): The Program currently commits to review various constraints such as the conditional use permit but is should also include specific commitment to revise or modify the various requirements and remove development constraints.
• Program 5F (Housing for Persons with Developmental Disabilities): The Program commits to review reasonable accommodation findings but must also commit to remove or modify the approval findings to ensure no constraints on housing for persons with disabilities.
3. 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... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding A1, the element must include a complete analysis of AFFH. Based on the outcomes of that analysis, the element must add or modify programs with specific commitment, timelines, geographic targeting and numeric AFFH outcomes or metrics.