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
August 22, 2022
Cecilia Gallardo-Daly, Director
Department of Community Development
City of San Clemente
910 Calle Negocio #100
San Clemente, CA 92673
Dear Cecilia Gallardo-Daly:
RE: City of San Clemente’s 6th Cycle (2021-2029) Revised Draft Element Thank you for submitting the City of San Clemente’s (City) revised draft housing element received for review on June 23, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on August 18, 2022 with you and Jennifer Savage, Assistant City Manager. In addition, HCD considered comments from Public Law Center and Connor, Fletcher & Hedenkamp LLP pursuant to Government Code section 65585, subdivision (c).
The revised 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), 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).) Integration and Segregation: While the element was revised to include isolation index data for racial/ethnic groups, it does not provide analysis for the identified patterns of segregation. Specifically, the element identifies a 49.3 percent concentration of lower-income households in racial/ethnic block groups with 41-60 percent minority concentrations. However, the element must evaluate this pattern such as discussing coincidence across various components (e.g., segregation Cecilia Gallardo-Daly, Director
and integration and disproportionate housing needs) of the assessment of fair housing and utilizing outreach, local data and knowledge and other relevant factors to better formulate policies and programs.
Racially Concentrated Areas of Affluence (RCAA): While the element reports data on concentrations of race and income and compares some statistics to the County, it must also evaluate this data to better formulate policies and programs.
As noted above and in the prior review, the element should discuss coincidence across various components (e.g., segregation and integration and disproportionate housing needs) of the assessment of fair housing and utilizing outreach, local data and knowledge and other relevant factors. This analysis should specifically address the disparities within the City and the disparities when the City is compared to the broader region. For example, southern Orange County has a significantly higher number of concentrated areas of affluence when compared to the County as a whole. The element should examine this relationship to better prioritize contributing factors to fair housing issues and formulate appropriate actions such as increasing new opportunities in higher opportunity areas (above and beyond the regional housing need allocation (RHNA)). HCD recommends the City utilize the new RCAA data available at https://www.hcd.ca.gov/affirmatively-furthering-fair-housing.
Site Inventory and Affirmatively Furthering Fair Housing (AFFH): While the element expands discussion of the sites inventory against fair housing components, it must still quantify impact at the locational level (e.g., neighborhood, census tract, etc.) and evaluate any isolation of the RHNA.
Additionally, the element must identify actions and programs to address the concentration of lower-income units in majority-minority populations, as identified in the Integration/Segregation analysis.
Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should re-assess and prioritize contributing factors to fair housing issues.
Goals, Actions, Metrics, and Milestones: Based on the outcomes of a complete analysis, the element must be revised to add or modify goals and actions accordingly. 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.
For example, the element should have significant actions to promote new housing choices and affordability in higher opportunity areas and place-based strategies toward community revitalization. Actions must have appropriate specific commitment, milestones, geographic targeting and metrics.
Cecilia Gallardo-Daly, Director
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 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, singleroom occupancy units, emergency shelters, and transitional housing. (Gov.
Code, § 65583, subd. (c)(1).)
Suitability of Nonvacant Sites: While the element summarizes past experiences converting existing uses to higher density residential development, it must still relate those trends to the sites in the inventory. Specifically, the element identifies low existing floor area ratio, building structures older than 30 years old, and existing uses operating marginally or sites with surface parking as factors considered to identify sites. The element should connect these factors with the redevelopment examples (pp. HE-88, table 4-5) or if the trends do not support the utilized factors, the element should revise its methodology or identify other sites.
In addition, the City does not appear to rely on nonvacant sites to accommodate over 50 percent of the RHNA for lower-income households. For your information, based on the outcomes of a complete analysis of sites, future versions may trigger this requirement to make findings based on substantial evidence that the existing uses are not an impediment and will likely discontinue in the planning period.
Electronic Sites Inventory: For your information, 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/communitydevelopment/housing-element/index.shtml for a copy of the form and instructions. The City can reach out 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].
Cecilia Gallardo-Daly, Director
Programs: As noted above, 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 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:
• Program 5 (Affordable Housing Overlay): This Program should be revised to add a specific commitment beyond “evaluating” development standards for height limits and other standards.
• Program 15 (Monitoring of Emergency Shelter Overlay): This Program must go beyond evaluating areas and development standards. The Program should specifically commit to identify additional acreage, including minimum acreages that are suitable for development with access to transportation and services earlier in the planning period (e.g., 2025).
Further, the Program should specify when development standards will be updated and should specifically commit to updating parking and the overall unit cap on shelters that is benchmarked to the Point in Time survey.
• Large Sites: The element identifies a large site (p. 89) and while it describes the developable area is smaller, programs should be added or modified to facilitate development affordable to lower income households.
For example, the element could commit to coordinate with property owners and developers and establish incentives to facilitate parceling or site planning at appropriate sizes (e.g., 0.5 to 10 acres) as well as a numerical target for units affordable to lower-income households.
3. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …land use controls... (Gov. Code, § 65583, subd. (a)(5).) 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... (Gov. Code, § 65583, subd. (c)(3).) Land Use Controls: While the element now mentions some recent projects under the City’s zoning and development standards, it generally does not evaluate the impacts of development standards, particularly two story height limits. For example, the element mentions one project that was built at maximum densities but does not discuss the number of stories, whether adjustments were made, including exceptions or how those standards impact feasibility. The element also mentions some affordable projects but again does not provide specifics like the number of stories, number of units, built densities, whether exceptions were Cecilia Gallardo-Daly, Director
utilized and general feedback on whether development was made difficult by the standards. The City could engage the development community to assist with this analysis and programs (Program 5) should be added or modified based on the outcomes of this analysis.
Housing for Persons with Disabilities: Program 14 (Zoning Amendments) should specifically commit to amend zoning to allow group homes for seven or more persons with all residential zones and revise procedures to permit these uses with objectivity to facilitate approval certainty.
The element will meet the statutory requirements of State Housing Element Law once it has been revised and adopted to comply with the above requirements.
For your information, pursuant to Senate Bill 197 (Chapter 70, Statutes of 2022), as the City did not adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021), as of this writing, any rezoning must be completed within one year of the statutory deadline (October 15, 2022). This includes Programs 1 (Provide Adequate Sites) and 2 (By-right Approvals). However, if the City’s adopted element is found in compliance by October 15, 2022, the City may use a rezone deadline of later than October 15, 2022. HCD encourages the City to revise the element, adopt and expeditiously submit the housing element. If the element is not found in compliance by October 15, 2022, HCD cannot find the element in compliance until the rezoning is complete.
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.
We 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 Mashal Ayobi, of our staff, at [email protected].
Sincerely,
Paul McDougall
Senior Program Manager