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Attachment A - HCD Comment Letters.pdf

Rialto City Council
January 24, 2023

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Attachment A - HCD Comment Letters.pdf
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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

D
ecember 13, 2021

D
aniel Casey, Acting Community Development Manager
Community Development Department
City of Rialto
150 South Palm Avenue
Rialto, CA 92376

D
ear Daniel Casey:

R
E: City of Rialto’s 6th Cycle (2021-2029) Draft Housing Element

T
hank you for submitting the City of Rialto’s (City) draft housing element received for review on October 14, 202. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. HCD considered comments from Inland Counties Legal Services pursuant to Government Code section 65585, subdivision (c).

T
he draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

A
s 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.

F
or your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall 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).

P
ublic 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- Daniel Casey, Acting Community Development Manager

Page 2 ends

income and special needs households, by making information regularly available and considering and incorporating comments where appropriate.

S
everal 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.

F
or your information, some general plan element updates are triggered by housing element adoption. HCD reminds the County 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:
http://opr.ca.gov/docs/OPR_Appendix_C_final.pdf
and
http://opr.ca.gov/docs/Final_6.26.15.pdf.

W
e 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 Sohab Mehmood, of our staff, at [email protected].

S
incerely,

P
aul McDougall
Senior Program Manager

E
nclosure

City of Rialto’s 6th Cycle Draft Housing Element Page 1 December 13, 2021

APPENDIX

CITY OF RIALTO

T
he 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.

H
ousing 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 resources, 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. Review and Revision

Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)

T
he element must provide a cumulative evaluation of the effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness).

B. Housing Needs, Resources, and Constraints

1. A
ffirmatively 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).)

Enforcement: While the element briefly describes fair housing services with Inland Fair Housing and Mediation Board (IFHMB), it generally does not address this requirement. The element must include information on past or current fair housing complaints, findings, lawsuits, or judgements related to enforcement actions regarding fair housing. In addition, the element must discuss compliance with existing fair housing laws and regulations. For more information and guidance on this analysis, please visit pg. 28-30 of the HCD’s AFFH guidance memo:
https://www.hcd.ca.gov/community-development/affh/docs/affh_document_final_4- 27-2021.pdf

Local Knowledge and Data: The element should complement federal, state, and regional data with local data and knowledge where appropriate to capture emerging trends and issues, including utilizing knowledge from local and regional advocates, public comments, and service providers.

City of Rialto’s 6th Cycle Draft Housing Element Page 2 December 13, 2021
Other Relevant Factors: The element must include other relevant factors that contribute to fair housing issues in the jurisdiction. For instance, the element can analyze historical land use and investment practices or other information and demographic trends.

Integration and Segregation: The element provided some data on integration and segregation across racial groups and one map displaying income by census tracts.

The element must discuss and analyze this data for trends over time and patterns across census tracts. Additionally, it must evaluate patterns at a regional basis, comparing the City to the region.

High Segregation and Poverty: TCAC/HCD opportunity maps indicate that the City has two areas considered high segregation and poverty in the center of the City. The element must analyze all of these census tracts for trends and patterns and consider other relevant factors, local data and knowledge and evaluate factors that contributed to the conditions of these areas.

Access to Opportunity: While the element provided a general analysis of opportunity areas, and high-level conclusions about the City’s disparities in access to opportunity, it must independently analyze trends and patterns related to access to educational and economic opportunities. Additionally, the element must evaluate patterns at a regional basis and compare those to conditions at the local level.

Disproportionate Housing Needs and Displacement: The element must provide an analysis of trends and patterns related to people experiencing homelessness at a local and regional level. The element deferred to an at-risk analysis of affordable housing as a way to analyze displacement risk. The element should consider and analyze additional data. For example, UC Berkeley’s Urban Displacement Project indicates that there are several census tracts in the middle of the City with people vulnerable to displacement.

Sites Inventory: The element concludes that the sites inventory does not exacerbate existing fair housing conditions, however the analysis clearly demonstrates that the sites will either maintain the status quo of fair housing conditions or further worsen areas already experiencing several fair housing issues including income and racial segregation and limited access to opportunities. For example:

•
Race – Figure 3-16 of the element illustrates that all of the City’s lower- income RHNA has been identified in areas with the highest percentages of Hispanic population, while no lower-income sites and majority moderate and above moderate sites have been identified in census tracts with the lowest Hispanic population.
• Income – Figure 3-18 illustrates that majority of the above and moderate RHNA sites are identified in areas with the least percentage of low to moderate income households while no lower-income sites are identified in these census tracts.
• Access to Opportunity – Figure 3-21 displays that no lower-income units were identified in the City’s high resourced census tracts while all lower-income

City of Rialto’s 6th Cycle Draft Housing Element Page 3 December 13, 2021
sites were identified in most of the City’s low resourced areas and areas of high segregation and poverty.

T
he element must include further analysis, strong reasoning, and accurate conclusions about the location of sites and its impact on current fair housing conditions (e.g., isolating lower-income sites in low resourced areas and moderate to above moderate in high resourced, high income areas). Further, if the inventory continues to isolate the RHNA for lower income households in central areas, the element must have commensurate programs with strong place-based strategies for community revitalization and new opportunities in higher opportunity areas (beyond RHNA) to result in an equitable quality of life and affirmatively further fair housing (AFFH) throughout the City.

Fair Housing Issues and Contributing Factors: The element did not provide a conclusion of fair housing issues. The element should list and identify fair housing issues as a result of the analysis. Additionally, the element did not sufficiently identify, describe, and prioritize contributing factors. For example, the element listed R/ECAP, low resourced census tracts, and the City’s availability to meet their RHNA as contributing factors, however, these are not contributing factors. For more information and guidance, please visit pages 49-56 of HCD’s AFFH Guidance Memo:
https://www.hcd.ca.gov/community-
development/affh/docs/affh_document_final_4-27-2021.pdf

Goals, Actions, Metrics and Milestones: The element identified few actions to address AFFH including continuing to work with the Inland Fair Housing Board and reviewing historic policies. These actions do not include specific commitments, address fair housing issues, and meaningfully overcome contributing factors. At minimum, programs must enhance housing mobility, provide new housing choices and affordability in high opportunity areas, and place-based strategies for community preservation and revitalization. Additionally, programs and actions must create meaningful impact in addressing a jurisdiction’s fair housing issues. Furthermore, the element must include metrics and milestones for targeting meaningful change and evaluating progress on programs, actions, and fair housing results. For more information and guidance, please visit pages 72-74 of HCD’s AFFH Guidance Memo:
https://www.hcd.ca.gov/community-development/affh/docs/affh_document_final_4-27- 2021.pdf

2. I
nclude 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: While the element identifies the age of the housing stock (p. 2-28), it must quantify the number of units in need of major rehabilitation and replacement. For example, the analysis could include estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable builders/developers, including non-profit housing developers or organizations.

City of Rialto’s 6th Cycle Draft Housing Element Page 4 December 13, 2021

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).)

T
he City has a RHNA of 8,272 housing units, of which, 3,424 are for lower-income households. To address this need, the element relies on vacant and nonvacant sites, including sites in Specific Plan Areas and within the Mixed-Use Overlay area, ADUs, and pipeline projects. To demonstrate the adequacy of these sites and strategies to accommodate the City’s RHNA, the element must include complete analyses:

Realistic Capacity: The element states that the City is assuming 50-80 percent of the maximum allowable density, however the inventory indicates that for sites where the buildable and gross acreage is the same (e.g., no deductions on site acreage for constraints), the element assumed that units will be developed at the maximum allowable density. The element must demonstrate specific trends, factors, and other evidence led to the assumptions or adjust assumptions as appropriate. Additionally, the estimate of the number of units for each site must be adjusted as necessary, based on the land use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level. Lastly, the element identifies sites within commercial and mixed-use zones where the current zoning allows for 100 percent nonresidential uses (commercial, industrial, etc.,). To demonstrate realistic capacity on these sites, the element must analyze and account for the likelihood of residential development in the zones that allow 100 percent nonresidential uses. The analysis should be based on factors such as development trends, performance standards or other relevant factors.

Suitability of Nonvacant Sites: The element identifies nonvacant sites to accommodate a portion of the regional housing need for households of all incomes.

While the element includes general statements such as “developer interest” and sites are “underutilized,” this alone is not adequate to demonstrate the suitability of these sites. A complete analysis should describe the methodology used to determine the additional development potential within the planning period. The methodology must consider factors including the extent to which existing uses may impede additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites. (Gov. Code, § 65583.2, subd. (g).) For nonresidential sites, the inventory could also describe whether the use is operating, marginal or discontinued, and the condition of the structure or could describe any expressed interest in redevelopment.

I
n addition, if the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households, the housing element must demonstrate that the existing use is not an impediment to additional residential development in the planning period. This can be demonstrated by

City of Rialto’s 6th Cycle Draft Housing Element Page 5 December 13, 2021
providing substantial evidence that the existing use is likely to be discontinued during the planning period. (Gov. Code, § 65583.2, subd. (g)(2).)

Specific Plans: The element identifies several specific plan areas to accommodate the City’s RHNA and that some of these plans have been entitled for a certain number of units. To utilize residential capacity in Specific Plans, the element must:

•
Indicate whether suitable sites have approved or pending projects or are suitable for development in the planning period.
• If projects are approved or pending, describe the status of the project, including any necessary approvals or steps prior to development, development agreements, conditions, or requirements such as phasing or timing requirements that impact development in the planning period, and the affordability of the project’s units based on anticipated rents, sales prices, or other mechanisms (e.g., financing, affordability restrictions) ensuring their affordability.
• For suitable sites without pending or approved projects, the element must list sites by parcel number or unique reference, size, general plan designation, zoning and include a calculation of the realistic capacity of each site. The element must also include an analysis of any requirements such as phasing or timing requirements that impact development in the planning period and large sites, if applicable, with policies and programs.

Accessory Dwelling Units (ADU): The element is projecting 128 ADUs for an average of 16 ADUs per year during the planning period to accommodate a portion of its RHNA. The City’s Annual Progress Reports (APR) shows no records of ADU permits in 2018 and 2020 and one ADU permitted in 2019. The City’s past performance on permitting ADUs do not support a sixteen-fold increase. The element should reconcile these figures and adjust assumptions based on a realistic estimate of the potential for ADUs and include strong policies and programs that commit to incentivizing ADUs. Additionally, while the element can use ADU applications to support projecting ADU production beyond what was actually permitted, it cannot solely rely on ADU applications to make projection assumptions.

Depending on the analysis, the element must commit to monitor ADU production and affordability throughout the course of the planning period and implement additional actions if not meeting target numbers anticipated in the housing element.

If necessary, additional actions should be taken in a timely manner (e.g., within six months). The degree of additional actions should be in stride with the degree of the gap in production and affordability. For example, if actual production and affordability of ADUs is far from anticipated trends, then rezoning or something similar would be an appropriate action. If actual production and affordability is near anticipated trends, then measures like outreach and marketing might be more appropriate.

Electronic Sites Inventory: 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. Please see HCD’s housing element webpage at
https://www.hcd.ca.gov/community-development/housing-
element/index.shtml for a copy of the form and instructions. The City can reach out

City of Rialto’s 6th Cycle Draft Housing Element Page 6 December 13, 2021
to HCD at [email protected] for technical assistance. Please note, upon adoption of the housing element, the City must submit an electronic version of the sites inventory with its adopted housing element to
[email protected].

Environmental Constraints: While the element includes a general description of various environmental constraints related to earthquakes, fires, and flood, it must describe how these conditions relate to identified sites including any known environmental constraints within the City that could impact housing development in the planning period. (Gov. Code, § 65583.2, subd. (b).) For additional information and sample analysis, see the Building Blocks at
http://www.hcd.ca.gov/community-
development/building-blocks/site-inventory-analysis/analysis-of-sites-and- zoning.shtml#environmental.

Zoning for a Variety of Housing Types (Emergency Shelters): While the element identifies the I-P zone for emergency shelters, it should also analyze the suitability and capacity of the I-P zone to meet the need for emergency shelters. For example, the element should identify the number of parcels, typical parcel sizes, available acreage, whether sites are underutilized, and any potential for reusing existing buildings to emergency shelters. The element should also discuss proximity to transit and services and any known hazardous conditions unfit for human habitation.

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 element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls. The analysis should specifically address requirements related to parking, minimum lot sizes, and open space requirements. Specifically, the element indicates that a minimum of two parking spaces is required and concluded that while parking requirements may be a constraint, developers can receive reductions per density bonus law. However, the element should include programs to address constraints on development regardless of the availability of reductions under density bonus law.

Secondly, the R-3 and PRD-A zone requires a minimum lot size of 1 acre, and Foothill Specific Plan and PRD-D requires a minimum lot size of 3-5 acres. The element also states that the PRD-D zone minimum unit size is determined by planning commission. Both provisions appear to be a constraint. The analysis should address any impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities and include programs to address identified constraints.

Population Density: The element lists densities based on population density per acre as well as dwelling units per acre (p. 3-6). The element must analyze how the

City of Rialto’s 6th Cycle Draft Housing Element Page 7 December 13, 2021
population density requirement is determined for a project, how it interacts with the dwelling unit per acre standard, and weather it acts as a development cap for proposed projects.

Processing and Permit Procedures: While the element included information on the type of permit application and whether a public hearing is required, it should also describe the procedures for a typical single-family and multifamily development. The analysis should address the approval body, the number of public hearings, if any, approval findings, design review requirements and any other relevant information.

The analysis should address impacts on housing cost, supply, timing, and approval certainty. Additionally, the element states that a conditional use permit (CUP) is required for multifamily housing of five or more units in multifamily zones (e.g., R-3 zone). The element must specifically analyze the CUP process as a potential constraint on housing supply and affordability. The analysis should identify findings of approval for the CUP and their impact on development approval certainty, timing, and cost. The element must include a program to address and remove or mitigate the CUP requirement.

On/Off-Site Improvements: While the element states that on/off site improvements include curb, gutters, sidewalks, etc., the element should include information on actual standards and typical improvements required. Additionally, it should further identify subdivision level improvement requirements, such as minimum street widths (e.g., 40-foot minimum street width) and analyze their impact as potential constraints on housing supply and affordability.

Local Ordinances: The element must specifically analyze any locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances that directly impact the cost and supply of residential development.

Constraints on Housing for Persons with Disabilities:

•
Reasonable Accommodation: The element states that the City’s reasonable accommodation approval findings include “impact on surrounding uses.” The element should analyze this reasonable accommodation finding for constraints on housing for persons with disabilities and revise programs to address identified constraints.
• Family Definition: The element should also describe and analyze any definition of family used in zoning and land use.
• Residential Care Facilities for Six or fewer and Seven or More Persons: The element must describe how the City defines and permits group homes of six of fewer and seven or more persons. For your information, group homes with six or fewer should be treated no differently than other by-right single-family housing uses and must be allowed in all residential zones. Additionally, group homes of 7 or more should not be excluded from residential zones or treated differently than other similar uses.

5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels,

City of Rialto’s 6th Cycle Draft Housing Element Page 8 December 13, 2021
including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and 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. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the locality’s planning for the development of housing for all income levels and the construction of that housing. (Gov. Code, § 65583, subd. (a)(6).)

Requests for Lower Density, Permit Times, and Efforts to Address Nongovernmental Constraints: The element must analyze (1) requests to develop housing at densities below those identified in the inventory, (2) the length of time between receiving approval for a housing development and submittal of an application for building permits, and (3) any local efforts to address or mitigate nongovernmental constraints such as reduced fees, financing for affordable housing or expedited processes. The analysis should address any hinderances on the construction of a locality’s share of the regional housing need and programs should be added or modified as appropriate.

6. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov.

Code, § 65583, subd. (a)(7).)

Special Needs Households: While the element includes data and a general discussion of housing challenges faced by special needs households, it still must provide an analysis of the existing needs and resources for each special need group including seniors, female headed households, large householders, extremely low- income households (ELI), and persons experiencing homelessness. For example, the element should discuss the existing resources to meet housing needs (availability of shelter beds, number of large units, number of deed restricted units, etc.,), an assessment of any gaps in resources, and proposed policies, programs, and funding to help address those gaps

7. Analyze existing assisted housing developments that are eligible to change to non- low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of use restrictions. (Gov. Code, § 65583, subd. (a)(9) through 65583(a)(9)(D).)

W
hile the element includes an inventory of deed-restricted projects and analysis of at-risk units, California Housing Partnership Cooperation lists three affordable projects that were not included in the inventory. The element should include the following projects in the inventory:

•
TELACU Rialto III – 74 assisted units located on 545 Bloomington Avenue • Greentree Senior Apartments – 270 assisted units on 245 East First Street

City of Rialto’s 6th Cycle Draft Housing Element Page 9 December 13, 2021
• Park Place – 30 assisted units on 310 West Jackson Street

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).)

T
o have a beneficial impact in the planning period and address the goals of the housing element, programs must be revised with discrete timelines. For example, several programs list specific implementation actions such as developing marketing materials and revising the zoning code but should also provide a timeline for when that action will end or the frequency of the action (where applicable). The following programs should be revised:

•
Program 2C – Accessory Dwelling Unit Construction
• Program 2D – Accessory Dwelling Unit Monitoring Program • Program 2N – Small Lot Consolidation
• Program 3C – Preserve and Monitor At-Risk Units
• Program 4B - Remove Development Constraints
• Program 4C – Water and Sewer Service Providers
• Program 4D – Availability of Zoning, Development Standards, and Fees Online

2. 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 completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)

A
s noted in Finding B3, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or

City of Rialto’s 6th Cycle Draft Housing Element Page 10 December 13, 2021
revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows:

Housing Program 2B – Rezone to Provide Adequate Sites to Accommodate RHNA:

While the element includes a program committing the City to rezone sites to address a 6
th cycle shortfall, the program must specifically commit to rezoning pursuant to Government Code section 65583.2, subdivisions (h) and (i). Specifically, the program must commit to:

•
permit owner-occupied and rental multifamily uses by-right for developments in which 20 percent or more of the units are affordable to lower-income households. By-right means local government review must not require a CUP, planned unit development permit, or other discretionary review or approval; • accommodate a minimum of 16 units per site;
• require a minimum density of 16/20 units per acre; and • at least 50 percent of the lower-income need must be accommodated on sites designated for residential use only or on sites zoned for mixed uses that accommodate all of the very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a mixed-use project.

City-owned Sites: The element identified several city-owned sites to accommodate a portion of the RHNA including parking lot lots for Metrolink stations. The City should consider including a program that ensures compliance with the Surplus Land Act, provides incentives and actions along with a schedule to facilitate development of City-owned sites. Actions could include outreach with developers, issuing requests for proposals, incentives, fee waivers, priority processing and financial assistance.

Proposed Housing Overlay: The element states that the City is considering implementing an overlay to increase densities and/or allow for residential uses. If the element is proposing an overlay where the underlying zoning allows for nonresidential uses, the element should include a program that commits to sufficient incentives (beyond State Density Bonus Law) to assure the intended residential uses and affordability.

4. 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).)

A
s noted in Findings B4 and B5, 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.

City of Rialto’s 6th Cycle Draft Housing Element Page 11 December 13, 2021

6. P romote 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 protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov.

Code, § 65583, subd. (c)(5).)

A
s noted in Finding A1, the element does not include a complete Assessment of Fair Housing (AFH). Depending on a complete analysis, the element will need to add and revise programs as appropriate.

E. Public Participation

Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd. (c)(8).)

W
hile the element described various efforts to achieve public participation in the preparation of the housing element update, the element should also describe how comments were considered and incorporated into the element.

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

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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

City of Rialto’s 6
th Cycle Adopted Housing Element Page 1
June 3, 2022

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

City of Rialto’s 6
th Cycle Adopted Housing Element Page 2
June 3, 2022
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
June 3, 2022
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

City of Rialto’s 6
th Cycle Adopted Housing Element Page 4
June 3, 2022
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:

City of Rialto’s 6
th Cycle Adopted Housing Element Page 5
June 3, 2022
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.

City of Rialto’s 6
th Cycle Adopted Housing Element Page 6
June 3, 2022

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.

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

October 3, 2022

Marcus Fuller, City Manager
City of Rialto
150 South Palm Avenue
Rialto, Ca 92376

Dear Marcus Fuller:

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 August 11
th ,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 June 3, 2022, review; however, additional revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code), as follows:

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).)

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).)

Disproportionate Housing Needs including Displacement: The element was not revised to address this finding. Please see HCDs prior review.

Affirmatively Furthering Fair Housing (AFFH) and Identified Sites: The element was not revised to address this finding. Please see HCDs prior review.

Marcus Fuller, City Manager

Page 2 ends

Local Data and Knowledge and Other Relevant Factors: While the element Notes feedback from stakeholders related to the need for community revitalization and affordable housing, it should utilize local data and knowledge and other relevant factors to complement the evaluation of patterns and trends related to fair housing issues. For example, the evaluation could discuss past zoning and land use practices (e.g., role of land use in patterns north of the 210 and south of Foothill Boulevard), redlining, past investment and assessments such as capital improvement programs, the role of freeways or other major roadways, past redevelopment areas, information from code enforcement officers related to housing conditions and demographic trends (e.g., tenure, housing types).

Goals, Actions, Metrics, and Milestones: As noted above, the element does not include a complete analysis of AFFH and based on the outcomes of a complete analysis, the element must add or modify programs as appropriate. In addition, programs generally must be revised with specific commitment, discrete timelines, geographic targeting and metrics or numeric targets related to AFFH outcomes. Finally, the element should consider additional actions related to placed based strategies for community revitalization, particularly in areas of high segregation and poverty and new housing choices and affordability in areas of relatively higher opportunity or income.

2. 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 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).)

Realistic Capacity: The element explains that the calculation of residential capacity is based on various factors such as net versus gross areas, land use controls and conservatively assumes 80 percent of maximum allowable density.

However, as generally stated in prior reviews, the analysis lacks coherence.

First, the net listed area is the same as the gross area. The element now states that those areas are the same but the calculation still only assumes 80 percent of the maximum allowable densities. However, the inventory appears to use maximum allowable densities. Second, the element lists three recent projects from Rialto and several others, mostly from nearby Fontana, despite the City apparently building, permitting or approving many other projects and then provides no information on zones or maximum allowable densities of these Marcus Fuller, City Manager

Page 3 ends

listed projects as requested in HCD’s prior review. Finally, the element does not contain any revisions to address the likelihood of 100 percent nonresidential development. To address this requirement, the element should (1) list all recent projects by zone and allowable densities and either support or rescale the 80 percent assumption, (2) correct the calculations in the inventory (Table B-17) based on the supported realistic capacity assumption and (3) account for the likelihood of 100 percent nonresidential development in zones that allow 100 percent nonresidential uses. Please see HCD’s prior review for additional information and HCD is glad to send sample analyses.

Nonvacant Sites: HCD’s prior review found the element should relate recent experience to identified sites and demonstrate existing uses do not impede additional development such as improvement to land value ratios, existing versus allowable densities, age of structure, absences of investment, for sale signs, space vacancies and frequent property turnover. In response, the element basically only adds improvement to land value ratio and describes recent turnover on a few properties; however, the element must include analysis as found in HCD’s prior review. Please see HCD’s prior review.

Specific Plans: HCD’s prior review found the element should sites in specific plans by specific plan districts, zoning districts or sub-districts utilized to implement the specific plan. The purpose is to better understand the allowable uses and densities. While the element now appears to list some sites by implementing zoning, it still should list sites for the Lytle Creek Ranch Specific Plan and Renaissance Specific Plan as described in HCD’s prior review.

Programs: As noted above, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. The element may need to add or modify programs based on a complete analysis to demonstrate adequate sites to accommodate the regional housing need allocation (RHNA). In addition, the element should be revised as follows:

• Housing Program 2B (Rezone to Accommodate RHNA): The element was not revised to address this finding. Please See HCDs prior review. • Program 2S (Surplus Land Act): HCD’s prior review found the City must go beyond actions to “consider” and must include a schedule of actions to facilitate development. In response, the Program now states the City may take some actions depending on circumstances. This does not constitute a schedule of actions toward development. The Program should include specific commitments and steps with discrete timelines toward development and should eliminate language that potentially leads to no action in the planning period (e.g., “if”, “anticipates”, “plans” and “may”.

Marcus Fuller, City Manager

Page 4 ends

3. 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).)

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).)

Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing... (Gov. Code, § 65583, subd. (c)(3).)

Land Use Controls: The element generally was not revised to address HCD’s prior finding regarding minimum lot size and lot coverage for the R-3 zone.

In addition, Program 4b (Remove Development Constraints) should go beyond reviewing parking standards and make specific commitment to reduce or revise parking requirements and ensure parking requirements do not constrain development, particularly for studio and one-bedroom units.

Approval and Building Permit Timing: The element still must discuss the time between approval and building permit application to identify any hinderance on the development of housing and include programs as appropriate.

Programs: As noted above, 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 element was not revised to address this requirement. Please see HCD’s prior review for additional information.
• Program 5F (Housing for Persons with Developmental Disabilities): The City should remove “should constraints be found” language from the program as constraints have been identified for housing for persons with disabilities.

Marcus Fuller, City Manager

Page 5 ends

The element will meet the statutory requirements of State Housing Element Law once it has been revised and re-adopted to comply with the above requirements.

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.

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), Programs 2B (Adequate Sites) and 2F (AB 1397 By Right Requirements) must be completed no later than one year from the statutory deadline unless the City is found to comply with State Housing Element Law prior to October 15, 2022. 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-plan/guidelines.html.

Marcus Fuller, City Manager

Page 6 ends

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

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