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
April 12, 2022
Dr. Marcella Marlowe, City Manager
City of San Marino
2200 Huntington Drive
San Marino, CA 91108
Dear Dr. Marcella Marlowe:
RE: City of San Marino’s 6th Cycle (2021-2029) Adopted Housing Element Thank you for submitting the City of San Marino’s (City) housing element adopted February 9, 2022 and received for review on February 11, 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.
The adopted housing element addresses most statutory requirements described in HCD’s December 31, 2021 review; however, additional revisions are necessary to fully comply with State Housing Element Law (Article 10.6 of the Gov. Code), see enclosed Appendix.
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 1.7, 1.8, 1.11, and 1.12 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 Attachment 3
Dr. Marcella Marlowe, City Manager
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.
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 Molivann Phlong, of our staff, at [email protected].
Sincerely,
Paul McDougall
Senior Program Manager
Enclosure
City of San Marino’s 6th Cycle Adopted Housing Element Page 1 April 12, 2022
APPENDIX
CITY OF SAN MARINO
The following changes are necessary to bring the City of San Marino’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 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).)
The element includes revisions to Table 4 (p. 22) and additional text (p. 19) describing the connection of Table 3 to Table 4. However, the element should quantify the actual results of the prior element’s programs where possible. For example, Program 1.3 of Table 4 states that the previous planning period had a goal of 16 second units over the previous planning period and states that the program was “achieved”. The element should quantify how many second units were constructed to better evaluate the effectiveness of the program and revise current programs as appropriate. In addition, the element must provide an explanation of the effectiveness of 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). Please see HCD’s December 31, 2021 review.
B. 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).) Fair Housing Enforcement and Outreach: The element includes an updated Program
3.1 (p. 38) and additional information (p. 97) on enforcement and outreach. However, the element must further describe the City’s ability to provide enforcement and outreach capacity and describe what necessary specific actions the city will take to remedy complaints and maintain compliance. This can consist of actions such as the City’s ability to investigate complaints, obtain remedies, or the City’s ability to engage in fair housing testing.
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Disproportionate Housing Needs and Displacement: The element includes the City of San Marino: Insight Market Analysis (Appendix C) to supplement data related to disproportionate housing needs. However, the element should analyze this and other data for trends and patterns in relation to the disproportionate housing needs and displacement and conclude with a summary of issues. Wherever possible, the analysis and summary should include a discussion at a geographic level such as neighborhoods or any other sub-section of a locality, appropriate to better determine any locational trends.
Site Inventory: The element did not address this finding. While the element states that sites are located throughout the community; and as entire City is high resourced and meets requirements to AFFH; the element must still include the required analysis to support these conclusions. For example, the analysis should discuss the magnitude of the impact including the number of units by income group relative to locations or neighborhoods within the City, including any isolation of the Regional Housing Needs Allocation (RHNA) and then address whether sites exacerbate or improve existing patterns for all components of the assessment of fair housing (e.g., segregation and integration, access to opportunity).
Goals, Priorities, Metrics, and Milestones: The element did not address this finding.
Goals and actions must significantly seek to overcome contributing factors to fair housing issues. Programs generally must address enhancing housing mobility strategies; encouraging development of new affordable housing in high resource areas; improving place-based strategies to encourage community conservation and revitalization, including preservation of existing affordable housing; and protecting existing residents from displacement. Given that most of the City is considered a high and highest resource community (pg. 3-50), the element could focus on programs that enhance housing mobility and encourage development of more housing choices and affordable housing. Furthermore, the element must include metrics and milestones for evaluating progress on programs, actions, and fair housing results. Please see HCD’s December 31, 2021 review for additional information.
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).) Units in Need Rehabilitation or Replacement: The element includes a list of housing assistance programs (p. 68) and some information on substandard housing (p. 126) but does not address this finding. Please see HCD’s December 31, 2021 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).)
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Realistic Capacity: The element was not revised to address this finding. The element seems to rely on the establishment of new overlays to accommodate most of the RHNA.
However, it remains unclear what the proposed minimum and maximum allowable densities will be for each overlay area. The element should clarify where it is using minimum density to estimate capacity and when that capacity is based on the gross acreage or net acreage as the assumptions stated in the analysis do not seem to match the calculations in the sites inventory. Please be aware, for sites to accommodate the shortfall of lower-income RHNA, the overlay must require a minimum of 20 units per acre. In addition, as per the previous review, the element must analyze the likelihood that the identified units will be developed as noted in the inventory in zones that allow 100 percent nonresidential uses (e.g., mixed-use) or in areas that will be subject to an overlay, pursuant to the underlying zoning.
Small Sites: The element did not address this finding. Please see HCD’s December 31, 2021 review for more information.
Suitability of Nonvacant Sites: The element did not address this finding. While the element now includes an economic development market analysis in Appendix C, referenced in the City’s response letter to HCD (Attachment B), it is unclear how this information relates to the redevelopment potential of the sites selected for the inventory.
Please see HCD’s December 31, 2021 review for additional information.
In addition, the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households. Please be aware absent findings (e.g., adoption resolution) based on substantial evidence that uses are likely to discontinue within the planning period, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA. HCD is not aware that the City has made the appropriate finding. Any future re-adoption of the housing element must include the appropriate finding as part of the adoption resolution.
Missing Middle Projections: The element was not revised to address this finding. The element included (p. 60) Program 1.8 to amend the zoning code to allow missing middle housing. However, this analysis must include a site-specific inventory where the ordinance is being applied and include a nonvacant sites analysis demonstrating the likelihood of redevelopment and that the existing use will not constitute as an impediment. The element should support this analysis with local information such as local developer or owner interest to utilize zoning and incentives established through the ordinance. Please see HCD’s December 31, 2021 review for additional information.
Accessory Dwelling Units (ADU): The element revised (p. 29) Programs 1.1, 1.2, and 1.4 to include monitoring components and annual ADU and JADU reporting as part of the General Plan Annual Report. However, pursuant to HCD’s December 31, 2021 review, it is not clear if the ADU and JADU production level of 30 ADU and/or junior accessory dwelling unit (JADU) per year will be achievable in the planning period given historic averages of 9 units per year since 2018. As a result, the element should be updated to City of San Marino’s 6th Cycle Adopted Housing Element Page 4 April 12, 2022
include a realistic estimate of the potential for ADUs and include policies and programs that incentivize the production of ADUs.
Electronic Sites Inventory: While the City submitted an electronic sites inventory, it was not prepared with standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/community-development/housingelement/index.shtml for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.
Zoning for a Variety of Housing Types:
• Emergency Shelters: The element states (p. 26) the zoning code was updated to allow emergency shelters by right in 2019, with the approval of land use permit in the C-1 zone. The element lists some development and management standards.
However, the element must demonstrate that the permit processing, development and management standards are consistent with Government Code section 65583 (a)(4)(A). Standards must be designed to encourage and facilitate the development of, or conversion to, an emergency shelter. As stated in the previous review, the element must analyze the ten-bed limit and parking standards for every five (5) beds or one parking space for each bedroom designated for families with children, as potential constraints. The element must also demonstrate the commercial zone has sufficient capacity to accommodate the housing need for at least one emergency shelter.
• Low Barrier Navigation Centers: This finding was not addressed. Please see HCD’s December 31, 2021 review for more information.
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. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Government Code section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7).
Design Review: The element did not address this finding. Program 1.7 states that the City will facilitate preparation of objective design standards within the Housing Overlay.
However, this seems to be only for projects that use SB 35 streamlining. The element should clarify if all projects under the housing element will be allowed pursuant to objective design standards and if the requirement to present plans to neighbors will remain for multifamily housing in areas covered by the various overlays. Please see HCD’s December 31, 2021 review for more information.
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Local Ordinances: This finding was not addressed. Please see HCD’s December 31, 2021 review for more information.
Constraints on Housing for Persons with Disabilities: This finding was not addressed.
Please see HCD’s December 31, 2021 review for additional information.
5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, 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).) This finding was not addressed. Please see HCD’s December 31, 2021 review for more information.
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).)
General: The element provided (p. 67) a listing of local housing programs that could be applicable to the City. However, this finding was not fully addressed. Please see HCD’s December 31, 2021 review.
Persons with Developmental Disabilities: This finding was not addressed. Please see HCD’s December 31, 2021 review.
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).)
To address the program requirements of Government Code section 65583, subdivision (c)(1-6), and to facilitate implementation, programs should include: (1) a description of City of San Marino’s 6th Cycle Adopted Housing Element Page 6 April 12, 2022
the City’s specific role in implementation; (2) definitive implementation timelines; (3) objectives, quantified where appropriate; and (4) identification of responsible agencies and officials.
As stated in the prior review, programs must be revised to demonstrate that they will have a beneficial impact within the planning period. Beneficial impact means specific commitment to deliverables, measurable metrics or objectives, definitive deadlines, dates, or benchmarks for implementation. Programs containing unclear language (e.g., “Evaluate”; “Consider”; “Encourage”; etc.) should be amended to include more specific and measurable actions. Programs with unclear language that should be assessed include Programs 1.2, 1.3, 1.7. 2.6, 2.7, 2.8, and 3.5.
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).)
As 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 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:
Shortfall of Adequate Sites: Programs 1.7, 1.11, and 1.12 commit to the rezoning sites with an overlay to accommodate the lower-income RHNA. However, while the programs were amended to commit to provisions facilitate development, further revisions are necessary to ensure compliance with Government Code sections 65583.2 (h) and (i).
The element must include the following revisions:
• The element currently says it will “consider” adoption overlays. Program(s) must specifically commit to rezoning to accommodate 100 percent of the shortfall of sites to accommodate the lower-income RHNA.
• The element must clearly commit to minimum densities of at least 20 units per acre. Currently the element references varying densities (16-24 units in one reference and 20 units in another). Please note the overlay should not establish 20 units per acre minimum as both a minimum and maximum density but rather allow for a range of density so as not to constrain potential housing development. • Attachment B indicates that 100 percent housing on sites located in the C-1 zone is allowed under the Housing Overlay if they are without frontage on Huntington Drive. It is HCD’s understanding that ground floor commercial would be required for these sites. However, pursuant to Government Code section 65585.2 (h) City of San Marino’s 6th Cycle Adopted Housing Element Page 7 April 12, 2022
100 percent residential must be allowed on all sites rezoned to accommodate the shortfall for lower-income RHNA.
• As stated above, it is unclear whether the City will adopt objective design standards for all new residential projects within the overlay or just projects that qualify for SB 35 streamlining. Please be aware, pursuant to Government Code section 65583.2 (i) the phrase “use by-right” means that the local government’s review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.
• Finally, the element should commit to ensuring that development standards adopted as part of the overlay including height, lot coverage, parking will facilitate the development of multifamily housing at the allowable densities assumed in the inventory.
Programs 1.1 and 1.2: While the program commits to monitoring ADU production, it should also monitor ADU affordability.
Program 3.4: The programs must be revised with clear commitment to address the provision of single-room occupancy housing in the C-1 zone.
3. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderateincome households. (Gov. Code, § 65583, subd. (c)(2).) The element contains Programs 1.1-1.4 for ADUs, Program 3.1 for reasonable accommodation, and Program 3.2 for access to fair housing service providers.
However, the element must include a program(s) with specific actions and timelines to assist in the development of housing for lower-income households, including extremely low-income (ELI) and special needs housing. Please see HCD’s December 31, 2021 review for more information.
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).) As noted in Findings B4 and B5, the element requires a complete analysis of potential governmental and nongovernmental 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.
5. 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 City of San Marino’s 6th Cycle Adopted Housing Element Page 8 April 12, 2022
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).) As noted in Finding B1, the element must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis.