DATE: APRIL 26, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, DIRECTOR
TITLE: ZONING CODE AMENDMENT 2022-002; AN ORDINANCE AMENDING SECTIONS 37-10.290 (“E” DEFINITIONS), 37-10.430 (“S” DEFINITIONS), 37-30.60 (RESIDENTIAL LOW DENSITY DISTRICT), 37-30.110 (RESIDENTIAL MEDIUM DENSITY DISTRICTS), 37-30.160 (RESIDENTIAL HIGH DENSITY DISTRICTS), 37-30.200 (COMMERCIAL DISTRICTS), 37-30.230 (MIXED USE DISTRICTS), AND 37-30.390 (PUBLIC/SEMIPUBLIC DISTRICT), AND ADDING SECTION 37-50.235 - SCHOOL DISTRICT OR COMMUNITY COLLEGE DISTRICT HOUSING TO CHAPTER 37 OF THE MUNICIPAL CODE (ZONING CODE) RECOMMENDED MOTION:
A motion finding Zoning Code Amendment 2022-002 categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15305 and adopting an Ordinance amending Chapter 37 of the Salinas Municipal Code (Zoning Code) to allow a school district or community college district to acquire, construct, rehabilitate, or preserve affordable rental housing for its staff or public consistent with the Teacher Housing Act of 2016.
RECOMMENDATION:
Staff recommends that the City Council find Zoning Code Amendment 2022-002 categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15305 and introduce and adopt an Ordinance amending Chapter 37 of the Salinas Municipal Code (Zoning Code) to allow a school district or community college district to acquire, construct, rehabilitate, or preserve affordable rental housing for its staff or public consistent with the Teacher Housing Act of 2016.
EXECUTIVE SUMMARY:
The Salinas Union High School District (SUHSD) approached City staff regarding the possible acquisition of an empty apartment complex to provide affordable housing for teachers and other school employees. Unfortunately, existing regulations restricting large employer housing would not allow the school district to acquire property for this use. As outlined in various plans such as the Salinas Plan and Housing Element, the City has a vested interest in increasing affordable housing. Moreover, the State has passed the Teacher Housing Act of 2016, which allows school districts to facilitate the acquisition, construction, rehabilitation, and preservation of affordable housing at low and moderate rental rates for teachers and employees, local public employees, or the general public. The State Legislature is in the process of amending this Act to include community college districts.
As a result, staff is recommending that City Council adopt Zoning Code Amendment (ZCA 2022-002) to eliminate current restrictions on employee housing for a school district or community college district consistent with the Teacher Housing Act 2016. ZCA 2022-002 includes provisions to minimize displacement that could occur should a school district or community college district purchase an existing occupied rental building. Under these circumstances, the school or community college district would be subject to notification and relocation assistance requirements. In addition, the ZCA stipulates that construction and rehabilitation would be subject to the regulations and standards of the underlying zoning district.
BACKGROUND:
Zoning Code Amendment 2022-002 would amend Sections 37-10.290 (“E Definitions”), 37-30.420 (“S Definitions”), 37-30.60 (Residential Low Density District), 37-30.110 (Residential Medium Density District), 37-30.160 (Residential High Density District), 37-30.200 (Commercial Districts), 37-30.240 (Mixed Use Districts) and adds Section 37-50.235 – School District orCommunity College District Housing to Chapter of the Salinas Municipal Code (Zoning Code).
The Salinas Union High School District (SUHSD) approached Community Development Department staff regarding the possible acquisition of an empty apartment complex to provide affordable housing for teachers and other school employees. Unfortunately, existing regulations restrict large employer housing and would not allow the school district to acquire property for this use. Upon further discussions with the SUHSD, staff learned about the California Teacher Housing Act of 2016. To facilitate affordable housing for school employees and to be consistent with the Act, staff initiated the ZCA. The provisions of the ZCA closely follow the regulations outlined in the Teacher Housing Act of 2016. The Act is currently in the amendment process to include community college districts and is expected to pass.
A public hearing notice for the April 6, 2022 Planning Commission meeting regarding the proposed ZCA was published in the Monterey County Herald on Saturday March 26, 2022. On April 6, 2022, at a duly noticed public hearing, the Salinas Planning Commission recommended 4-0 that the City Council introduce and adopt Zoning Code Amendment 2022-002.
DISCUSSION:
In drafting the proposed ZCA, staff is proposing a change to the definition of employee housing under Section 37-10.290 (“E Definitions”) to exclude a school district or community college district. Employee housing as currently defined in the code includes “dwellings and other housing accommodations provided and maintained by an employer for employees in connection with work or the place where work is being performed, whether or not rent is involved. Employee housing may be developed or managed by a party other than the employer, provided the employer retains control and ultimate responsibility for the facility”. Clearly, any type of housing controlled by a school district or community college district would meet this definition. Therefore, it was necessary to not only modify the definition of “employee housing”, but to add a new definition under 37-30.420 (“S Definitions”) for school district or community college district housing.
One of the reasons for the current restriction on employee housing is to prevent employers from acquiring occupied apartment buildings and displacing tenants. As the need for housing for H2A workers continues to explode, there is a real worry by residents that lifting the restriction will result in agricultural employers purchasing housing complexes for these temporary employees thereby causing widespread displacement. To be sensitive to these concerns, the proposed amendment is very narrow in scope applying only to school and community college districts as defined under the Teacher Housing Act of 2016. In addition, staff included provisions for notification and relocation assistance to minimize any impacts if a school or community college district acquires occupied housing that may result in displacement. These provisions are outlined in Section 37-50.235 – School District and Community College District Housing under Division 1. – Special Regulations Applying to All Districts.
To provide clarity to planners on implementation, ensure consistency with the General Plan, and promote neighborhood compatibility, the use classification of “School District or Community College District Housing” has been added to the tables of all Zoning Districts that allow residential uses including Sections 37-30.60 (Residential Low Density District), 37-30.110 (Residential Medium Density District), 37-30.160 (Residential High Density District), 37-30.200 (Commercial Districts), 37-30.240 (Mixed Use Districts), and 37-30.390 (Public/Semipublic District). These tables contain footnotes that require construction or rehabilitation to conform to the development regulations and design standards of the underlying zoning district. This will ensure projects fit in with the character of the neighborhood.
The proposed ZCA is part of an ongoing effort of the City to eliminate barriers to the production of housing. There is no doubt that the City of Salinas is experiencing a housing shortage. As a result, the City has been exploring creative ways to increase opportunities for housing given the limited availability of land for infill development and funding. Over the last couple of years, the City has used grant funding to initiate Zoning Code Amendments or zone changes to facilitate housing opportunities throughout the City. For example, on October 22, 2019, the City approved Zoning Code Amendment (ZCA 2019-003) allowing residential with a CUP in the Public/Semipublic (PS) Zoning District. One of the reasons for that change was to encourage school districts to build housing on their available sites. Since the State of California is mandating significant increases in a jurisdiction’s Regional Housing Needs Allocation (RHNA), it is even more critical to partner with the school and community college districts to build workforce units.
Findings
The proposed Amendment would not result in uses inconsistent with any land use designation. It would allow a school district or community college district to acquire, construct, rehabilitate, or preserve affordable rental housing for its staff or public. This use is consistent with the Teacher Housing Act of 2016. The Zoning Code Amendment (ZCA 2022-002) would be consistent with General Plan Goal LU-1 by providing housing for school/community college employees to “achieve a balance of land uses to provide for a range of housing, jobs, libraries, and educational and recreational facilities that allow residents to live, work, shop, learn, and play in the community”. ZCA 2022-002 is also consistent with General Plan Policy LU-1.2 which states “provide a plan for land uses that includes the capacity to accommodate growth projected for 2020 and beyond” and Policy LU3.8 to “encourage the production of housing that meets the needs of agricultural and other essential workers within the community. Multiple studies including a 2018 report from UC Berkely, Terner Center for Housing Innovation have identified lack of affordable housing for teachers and educational employees as a cause for worker shortages in California schools. Allowing this use, will enable school and community college districts to meet the housing needs of this essential workforce.
ZCA 2022-002 will not reverse existing policies, because the proposed changes would be consistent with the General Plan. The proposed amendment is in substantial conformance with the purposes, intent, and provisions of the General Plan. In fact, the proposed amendment actually advances multiple provisions in the Land Use and Housing Elements. As stated above, the proposed Amendment would be consistent with General Plan Policy LU-3.8 which encourages “the production of housing that meets that needs of agricultural and other essential workers within the community”. ZCA 2022-002 will not only help stabilize the educational workforce, but it will ensure that we have the staff to prepare the next generation of Salinas’ workforce currently attending local schools and Hartnell Community College.
Finally, ZCA 2022-002 would further Policy H-3.8, which aims to support collaborative partnerships of nonprofit organizations, affordable housing developers, major employers, and market-rate housing developers to expand affordable housing opportunities for those working in the City of Salinas and surrounding areas”. When the City was first approached by the Salinas Union High School District, staff was excited about the opportunity to facilitate this type of collaboration by eliminating a restriction that would prevent the district from acquiring or developing new affordable housing units.
Additional findings in support of the proposed Zoning Code Amendment are incorporated in the attached Planning Commission Resolution.
CEQA CONSIDERATION:
The environmental impacts of the Zoning Code Amendment 2022-002 has been analyzed in accordance with the California Environmental Quality Act (CEQA) and is found to be categorically exempt (Class 5) from further environmental analysis per CEQA Guidelines Section 15305 (Minor Alterations in Land Use Limitations), because it would not result in a significant environmental impact. The proposed Amendment would not result in a significant environmental impact since it would only allow a school district or community college district to acquire, construct, rehabilitate, or preserve affordable rental housing for its staff or public. This use is consistent with the Teacher Housing Act of 2016.
DEPARTMENTAL COORDINATION:
The proposed Amendment has been coordinated among the Current Planning and Plan and Project Implementation Divisions of the Community Development Department. The Legal Department always provides critical review of proposed zoning code amendments.
STRATEGIC PLAN INITIATIVE:
The proposed Zoning Code Amendment (ZCA) advances the City Council Goal of Housing/Affordable Housing by helping increase affordable workforce housing for school and community college employees.
FISCAL AND SUSTAINABILITY IMPACT:
This is a regulatory change to the Zoning Code. Other than staff time, there are no significant impacts to the City’s General Fund ATTACHMENTS:
Draft City Council Ordinance
Planning Commission Resolution
Teacher Housing Act of 2016
Publication
Powerpoint Presentation
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