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POST MEETING MATERIAL

City Council and Authorities Concurrent
January 31, 2023

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POST MEETING MATERIAL
Meeting
January 31, 2023
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City Council and Authorities Concurrent
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6
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Text extracted from the city's file for reading and search. Open the original on santaclara.legistar1.com. That file is the official record.

Community Development
Memorandum
Date: January 27, 2023
To: Mayor and City Council
From: Andrew Crabtree, Director of Community Development Subject: Supplement to Item 5. 23-276 Public Hearing: Action on Amendment to the City of Santa Clara General Plan by Adopting an Updated Housing Element for the 2023-2031 Housing Element Cycle: Planning Commission Recommendation

This memorandum provides supplemental information for Item 5 on the January 31, 2023 City Council meeting agenda, including summaries of the January 26, 2023 Planning Commission discussion and public testimony, and the Planning Commission’s recommendations to City Council to:

1. Adopt the Addendum to the 2010-2035 General Plan Environmental Impact Report (EIR); and

2. Amend the General Plan by adopting an updated Housing Element for the 2023- 2031 Cycle, incorporating proposed changes from SV@Home to Housing Plan Implementing Action 13: Residential Displacement.

The Planning Commission resolutions are attached.

Planning Commission Meeting
Staff presented the proposed amendment to the City’s General Plan to adopt the City’s 2023-2031 Housing Element. The Planning Commission then asked questions of staff, took public testimony and conducted a discussion of the hearing items.

Planning Commission Questions
Commissioner Biagini, regarding Housing Plan Implementing Action 13: Residential Displacement on page 13.2-17 of the Adoption Draft Housing Element, asked for staff’s response to written comments from Mathew Reed with SV@Home. Staff indicated support for the requested clarifications and suggested that the changes could be included as part of the Planning Commission’s recommendation to City Council.

Commissioner Bhatnagar questioned the RHNA buffer shown on slide 11 (Sites to Meet the 2023-2031 RHNA table) of staff’s presentation, noting that the largest buffer is for Above Moderate housing, and the greatest need/challenge is providing Very Low Income (VLI) and Low Income (LI) housing. He suggested the buffer should be larger for VLI, so we could meet the need with more confidence. Staff responded that HCD guidance is to provide a buffer of between 15 and 30-percent, which we are meeting at all income levels. Staff added that, after cities determine a realistic capacity for the Supplement to Item 5. 23-276 Public Hearing: Action on Amendment to the City of Santa Clara General Plan by Adopting an Updated Housing Element for the 2023-2031 Housing Element Cycle: Planning Commission Recommendation
January 27, 2023

Page 2 ends

number of units that could be accommodated on a site, they can decide how those units are spread-out to the different affordability categories. Staff shared that there was opportunity to have moved more units into the VLI category to increase the buffer, but it was important to balance what could realistically be accommodated on the sites in our inventory. To help achieve the RHNA, particularly at deeper affordability levels, the City is proposing a number of actions and more specific and timely objectives, including revisiting the City’s Affordable Housing Ordinance requirements.

Commissioner Bhatnagar offered that the real consequence of not meeting the City’s RHNA are people living on the streets.

Commissioner Bouza provided comments regarding ADU incentives, high interest rates being a dis-incentive, and asked what will happen if the property owners do not want to build ADUs. He also noted that many of the ADUs are in the area of the City close to Santa Clara University and asked if they are being occupied by students, which he stated should not be considered as low income units. He noted that for subsidized units, there is a lack of funding and that he would like to see more emphasis on providing low income housing.

Commissioner Saleme asked questions about the outreach for the Housing Element, including if the City kept statistics on what cross-sections of the population were reached and how many unique individuals provided feedback. He also asked if the City’s population is increasing or decreasing and, if increasing, have we worked with Fire and Police to plan for increased service needs for additional residents. Staff responded regarding outreach, that there were many forms and opportunities for participation throughout the process, including a significant response to the City’s housing survey, which was promoted and available in multiple languages, that received 1,651 unique responses. Regarding population, staff noted that the City is forecast to grow by 25% through 2040 (by ABAG) and the majority of that growth is located in specific plan areas that went through their own extensive planning process that included coordination with all City services providers, including Fire and Police.

Commissioner Saleme suggested that we should gather feedback from people who want to be residents such as people who currently live outside of the city and who want to move to Santa Clara to reduce their commute. Staff indicated that during the update process we met with stakeholders and advocates that represent more than just current Santa Clara residents and held outreach meetings with residents of senior, affordable, and supportive housing projects at their sites.

Commissioner Bouza added to Commissioner Saleme’s comment, noting that he would like to hear from people who grew up here but cannot afford to move back.

Commissioner Biagini recognized that we have challenges in developing a Housing Element that complies with state law within the required period. To her question about Supplement to Item 5. 23-276 Public Hearing: Action on Amendment to the City of Santa Clara General Plan by Adopting an Updated Housing Element for the 2023-2031 Housing Element Cycle: Planning Commission Recommendation
January 27, 2023

Page 3 ends

where affordable housing funding comes from, staff listed some of the more typical federal, state, and local funding sources, including tax credits, new state funding programs, and the City’s inclusionary housing program. Staff emphasized that to address the growing need for more housing, particularly at deep affordability levels, the federal government needs to do more and offer more funding.

Commissioner Biagini expressed concern about Section 8 vouchers, that there is not enough to serve those that need it and the wait times are too long. Staff acknowledged the challenge with the Housing Choice Voucher Program and that the City will continue to advocate for more vouchers. Staff also mentioned the continued investment into the City’s Tenant Based Rental Assistance (TBRA) program.

Chair Cherukuru referenced from an ABAG report that 0.0-percent of homes in Santa Clara are experiencing displacement or gentrification, but that some residents are spending 30 to 50 percent of their income on housing. She also noted that the report mentioned 5.4 percent of residents live in high segregation by poverty levels, which AFFH aims to reduce.

The Chair then questioned whether or not the Related Santa Clara project was included in the Pending and Approved Projects (pipeline) table (13.6-2). Staff responded that it is included in the list of “other” sites, which are not associated with a focus area. The chair noted that there are “Related” projects listed in the Tasman East Specific Plan. Staff responded that those projects in Tasman East are being developed by Related California, which is a separate entity from Related Santa Clara, and that staff could note the difference in the table to help avoid confusion.

Chair Cherukuru asked if the City looked at housing that may be subject to flooding and how/if adding housing density in those areas was being addressed. Staff responded that review of potential impacts, including flood impacts, is a part of the City’s standard review as well as the environmental review, and any project that was identified as having a potential flood risk, would be required to address/mitigate that risk as part of their conditions of approval.

The Chair added that during a flood or other natural disaster, emergency shelters will be needed and encouraged there to be more places for them to locate. Staff responded that as a part of the Housing Element Update and Zoning Ordinance Update, per recent changes in state law, emergency shelters will be allowed by right in more zoning districts (R-3 and R-4 Residential, C-C and C-R Commercial, MU-VHD Mixed Use, and LI Light Industrial districts), whereas currently the City only allows them by right in the ML Light Industrial district. Staff noted that the City Council has asked staff to find a site for a HomeKey project, which would be a transitional shelter site. Staff shared that a potential HomeKey site was presented to the City Council at a recent study session, and staff is working with the County on outreach for exploring this site. The City already has one project HomeKey site under development on El Camino Real.

Supplement to Item 5. 23-276 Public Hearing: Action on Amendment to the City of Santa Clara General Plan by Adopting an Updated Housing Element for the 2023-2031 Housing Element Cycle: Planning Commission Recommendation
January 27, 2023

Page 4 ends

Chair Cherukuru asked about HCD’s comment on ELI housing and the City’s response – that the City must analyze the housing needs (cost, over payment, etc.). Staff responded that new information/analysis was added in the Adoption Draft Housing Element, Chapter 13.4, under Extremely Low Income (ELI) Housing in response to the HCD comments. This section includes a table of existing properties with ELI units and notes that the 233 existing income restricted ELI units is far lower than the 5,462 ELI households in Santa Clara.

To the Chair’s question about the City’s strategy for achieving the number of ELI units, the analysis in Chapter 13.4 in the ELI section, as well as additional analysis in the AFFH chapter, informed the development of objectives under Actions 2, 3, 6, 12, and 14 in the Housing Plan to specifically address ELI (and VLI) housing needs.

The Chair expressed a concern that the City’s approach to housing the homeless is very passive and that the City should identify property to locate ELI housing; a more proactive approach instead of waiting to be approached by developers.

Assistant City Attorney Alexander Abbe provided the Planning Commission with several responses to the comments received on January 22, 2023 in a letter from the law firm Farella, Braun & Martel on behalf of the Housing Action Coalition (the “HAC”). The HAC alleged that the City had an obligation to build all of the units listed in the 2015-2023 Housing Element, and so any unbuilt units should be added to the 2023-2031 element; Mr. Abbe explained that the law requires cities to “identify” and “make available” sufficient sites, but not actually construct them. The HAC also alleged that the City improperly listed sites in the 2023-2031 Element that had previously been listed in the 2015-2023 Element, and that the City should allow residential development “by right” on these sites as a result. Mr. Abbe acknowledged that some sites in the Lawrence Station Area Plan (LSAP) appeared in both elements, but that this was an allowable practice given the rezoning of the properties that took place during the 2015-2023 cycle; he also noted that residential projects in the LSAP are non-discretionary. The HAC letter further alleged that the City overestimated the number of units that could be built in the specific plan areas, given that the developers will need to dedicate land for parks and roadways.

Mr. Abbe explained that the property owners and developers had been involved in the specific plan process and park planning process from the start, that all unit totals were calculated assuming that parkland would be built, and that the residential acreages in the specific plans were gross acreages. The HAC also criticized the City’s calculation of development capacity in its sites inventory, alleging that the sites would not be able to accommodate as many units at the densities predicted by the City. Mr. Abbe explained the statutory requirements for evaluating development capacity, showed how the City had complied with those requirements, and demonstrated several errors in the HAC’s calculations. Finally, the HAC letter alleged that four specific sites should not be included in the City’s sites inventory, due to insufficient evidence that they would redevelop during the 2023-2031 cycle. Mr. Abbe went through some of the evidence Supplement to Item 5. 23-276 Public Hearing: Action on Amendment to the City of Santa Clara General Plan by Adopting an Updated Housing Element for the 2023-2031 Housing Element Cycle: Planning Commission Recommendation
January 27, 2023

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the City had relied upon in assessing realistic development capability, including the designation of several of the sites as high-resource areas for affordable housing development by the California Tax Credit Allocation Committee and the State Department of Housing and Community Development. He also noted that the City also received a letter from the Housing Action Coalition in November 2022 and that those comments were addressed in the Adoption Draft Housing Element.

Public Comment (2 Speakers)
Mathew Reed (SV@Home) thanked the Commission and staff for the significant work that was done and acknowledged staff efforts to reach out to underserved residents. He also noted that there are significant new laws for this housing element cycle. Mr. Reed suggested the Assistant City Attorney’s responses to the Housing Action Coalition letter were too dismissive. He also noted that in the Los Angeles region, half of the cities are over 14 months out of compliance. We are required to create opportunities and remove barriers.

Rigo Gallardo (NorCal Carpenters, Local Union 405) asked the Commission to please keep in mind livable wages, and the importance of having local hire provisions and supporting apprenticeship programs.

The Commission then took action to close the public hearing.

Planning Commission Recommendation
The Chair appreciated the effort by staff on outreach and the thorough response to HCDs comments and thanked members of the community for providing feedback. In appreciation that there is a timeline that needs to be met for Housing Element adoption and certification, while acknowledging that there is always room for improvement, the Chair supported the recommendation to recommend City Council adopt the Addendum to the 2010-2035 General Plan EIR and amend the General Plan by adopting the updated Housing Element for the 2023-2031 cycle.

Commissioner Biagini motioned to recommend that the council adopt a resolution for the addendum to the General Plan EIR. The motioned passed 6-0-1, Commissioner Herro absent.

Commissioner Biagini motioned to approve the staff recommendation on the adoption of the Housing Element including the recommended text changes from the letter from SV@ Home on Action 13 in the housing element. The motioned passed 6-0-1, Commissioner Herro absent.

The Planning Commission’s recommended changes to Housing Plan Action 13 are shown below in red underline/strikethrough text:

Supplement to Item 5. 23-276 Public Hearing: Action on Amendment to the City of Santa Clara General Plan by Adopting an Updated Housing Element for the 2023-2031 Housing Element Cycle: Planning Commission Recommendation
January 27, 2023

Page 6 ends

Within one year of Housing Element adoption, evaluate and provide recommendations to City Council on new programs and policies that prevent displacement and/or facilitate soft landings when relocation is unavoidable. This evaluation will include the following policy areas at a minimum:
• Requiring no net loss of income-restricted residential units during the construction of new housing or rehabilitation of existing housing. • Requiring the replacement of existing income-restricted, and unrestricted affordable units at the same or lower income level as a condition of development.
• Requiring landlords to notify tenants and the City at least one year in advance of redevelopment and/or potential conversion of an income restricted property to market rate housing. Provide information regarding tenant rights and conversion procedures.
• Require developers to provide relocation benefits beyond those required by the state. - Within two years of Housing Element adoption, as necessary and appropriate, adopt programs and policies to address displacement with bi-annual monitoring and reporting of effectiveness.

Attachments to this Supplement:

1. Planning Commission Resolution to Recommend the City Council Adopt the Addendum to the General Plan EIR.

2. Planning Commission Resolution to Recommend the City Council Amend the General Plan by Adopting an Updated Housing Element for the 2023-2031 Cycle.

Resolution/ Housing Element Update Page 1 of 6
Rev. Rev: 11/22/17
RESOLUTION NO. 23-003

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF SANTA CLARA, CALIFORNIA RECOMMENDING

THAT THE CITY COUNCIL ADOPT A GENERAL P LAN

AMENDMENT TO UPDATE THE HOUSING ELEMENT OF THE
GENERAL PLAN FOR THE PERIOD OF 2023 -2031 TO
COMPLY WITH STATE HOUSING ELEMENT LAW.

BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA CLARA AS FOLLOWS:

WHEREAS, the California legislature has found that “California has a housing s upply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling econom ic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives.” (Gov. Code Section 65589.5.); and
WHEREAS, the legislature has further found that “Among the consequences of those actions are discrimination against low -income and m inority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration.” (Gov. Code Section 65589.5.); and WHEREAS, the legislature recently adopt ed the Housing Crisis Act of 2019 (SB 330) which states that “In 2018, California ranked 49th out of the 50 states in housing units per capita… California needs an estimated 180,000 additional homes annual ly to kee p up with population growth, and the Governor has called for 3.5 million new homes to be built over 7 years”; and WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Hous ing Element for the eight -year period 2023- 2031 to accommodate the City of Santa Clara (City) regional housing need allocation (RHNA) of 11,632 housing units, comprised of 2,872 very-low income units, 1,653 low-income units, 1,981 moderate-income units, and 5,126 above moderate-income units; and Resolution/ Housing Element Update Page 2 of 6
Rev. Rev: 11/22/17
WHEREAS, to comply w ith State Housing Element Law , the City of Santa Clara has prepared its Housing Element Update for the years 2023-2031 (the Housing Element); and WHEREAS, as pr ovided in Government Code Section 65350 et. seq., the Housing Element constitutes a General Plan Amendment; and
WHEREAS, as provided in Government Code Sections 65352 – 65352.5, the City of Santa Clara referred the Housing Elem ent to all California Native American tribes on the contact list provided by the Native American Heritage Commission, to cities abutting Santa Clara’s borders and to Santa Clara County; to local school districts; to the Santa Clara Valley Water District and San Francisco Public Utilities Commission ; and to other entities listed . No California Native American tribe requested consultation; and
WHEREAS, State law requires that the City take meaningful steps to promote and affirmatively further fair housing (Gov. Code Section 65583(c)(5)); and WHEREAS, State law requires that the City make zoni ng ava ilable for all types of housi ng, including multifamily housing (Gov. Code Sections 65583.2 and 65583(c)); and WHEREAS, the Housing Element must be adopted to comply wit h State law, accommodate the RHNA, affirmatively further fair housing, and facilit ate and encourage a variety of housing types for all income levels, including multifamily housing (Gov. Code Sections 65583.2 and 65583(c)); and
WHEREAS, the preparation, adoption, and implementation of the Housing Element and Zoning Code Update requires a diligent effort to include all economic segments of the community; and WHEREAS, the City conducted extensive community outreach over the last 20 months , including 27 meetings and activities that included community meetings/events, stakeholder workshops, meetings /interviews with resident s, and City task for ce meetings and study sessions; and
Resolution/ Housing Element Update Page 3 of 6
Rev. Rev: 11/22/17
WHEREAS, in accordance with Government Code Section 65585 (b), on August 22, 2022, the City submitted the draft Housing Element to t he State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, on October 12, 2022, HCD and City staff had an introductory meeting, which included an informal conversation and feedback from HCD about the City’s Initial Draft Housing Element; and
WHEREAS, on November 18, 2022, the City received a letter from HCD stating that while the draft Housing Element addresses many s tatutory requirements, revisions will be necessary to fully comply with State Housing Element Law (Article 10.6 of the Government Code); and WHEREAS, on November 29, 2022, HC D and City staff ha d a meeting to discuss HCDs findings letter; and
WHEREAS, on January 24, 2023, the City published a revised draft Housing Element with the changes required by HCD (see Exhibit A – HCD Comments and R eponses) and request ed public comment on the draft; and
WHEREAS, a notice of the public hearing on the proposed General Plan Amendment was published in the Santa Clara Weekly , a newspaper of general circulat ion for the City, on December 11, 2022, for the January 11, 2023 Planning Commission Meeting and the January 31, 2023 City Council meeting; and
WHEREAS, on January 11, 2023, the Planning Commission opened the public hearing to consider the proposed General Plan Amendment, and then continued the hearing to January 23, 2023; and
WHEREAS, on J anuary 23, 2023, the Planning Commission opened the public hearing to consider the proposed General Plan Amendment, and then due to technical difficulties continued the hearing to January 26, 2023; and

Resolution/ Housing Element Update Page 4 of 6
Rev. Rev: 11/22/17
WHEREAS, the City has prepared an Addendum to the 2010-2035 General Plan Environmental Impact Report adopted by the City Council on November 16, 2010, and to the environmental review documents that were prepared for subsequent amendm ents to the General Plan that affected housing development in the City, all of which provide environmental clearance for all of the units in the 6th cycle Housing Sites Inventory; and WHEREAS, the Planning Commission held a duly noticed public hearing on January 26 , 2023, at the conclusion of which, the Planning Commission determined that the proposed 6th Cycle Housing Element would not result in any new or substantially mor e severe impacts than previously identified in the General Plan EIR and recommended that the City Council approve the Addendum to the 2010 - 2035 General Plan EIR prepared for the Housing Element Update; and
WHEREAS, on January 26, 2023, the Planning Commission conducted a duly and properly noticed public hearing, reviewed the Housing Element and all pertinent maps, documents and exhibits, including HCD’s findings, the City’s response to HCD’s findings, the staff report and all attachments, and oral and written public comments.

WHEREAS, on January 2 6, 2023, t he Planning Commission considered the correspondence submitted by Mathew Reed of SV@Home on January 23, 2023 re garding proposed changes to Housing Plan Action 13 of the Housing Element. The Planning Commission supported the inclusion of the proposed edits in to the H ousing Element as indicated in the January 23 correspondence by SV@Home.

NOW THEREFORE, BE IT FURTHE R RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA CLARA AS FOLLOWS:

1. The foregoing recitals are t rue and correct and are incorporated by reference into thi s action.

Resolution/ Housing Element Update Page 5 of 6
Rev. Rev: 11/22/17

2. General Plan Amendment Fi ndings. That the Planning Commission hereby finds and determines that the General Plan Ame ndment is in the interest of th e public good for the following reasons:

A. The proposed Amendment is deemed to be in the public int erest, in that the proposed Am endment is consistent and compatible with the rest of the Ci ty’s General Plan and any implementation programs that may be affected, in that the Housing Element is consistent with the General Plan’s Land Use and Circulation policies, and does not increase development capacity under the General Plan, as amended.

B. The proposed amendment has been processed in accordance with the applicable provisions of the California Government C ode and the California Environmental Quality Act (CEQA), in that the impacts of the Housing Element are disclosed by the General Plan EIR as addended by subsequent amendments to the General Plan that affected housing development in the City, including but not limited to the December 2013 Climate Action Plan Negative Declaration; the February 2016 Mission Town Center EIR; the 2016 Related Santa Clara EIR; the November 2016 Lawrence Station Area Plan EIR; the July 2018 575 Benton Project Addendum; the July 2019 Gateway Cros sings EIR; the March 2022 Patrick Henry Drive Specific Plan EIR; the June 2022 Climate Action Plan Addendum; and the June 2022 Freedom Circle Future Focus Area EIR (collectively, the “Subsequent Documents”).

C. The potential impacts of the proposed General Plan Amendment have been assessed and have been determined not to be detrimental to the public health, safety, or welfare, in that the Housing Element creates a policy framework that provides opportunities for the development of housing in the City through the year 2031. The impacts of the Housing Element have been disclosed through the Resolution/ Housing Element Update Page 6 of 6
Rev. Rev: 11/22/17
CEQA process, and the Planning Commission has determined that any impacts from the Hou sing Element are within the scope of the General Plan E IR, as addended.

3. The Planning Commission recommends City Council approval of the 6th Cycle Housing Element Update (2023- 2031) in its entirety as provided in Attachment 1, attached hereto, and with SV@Home’s proposed changes to Action 13 as provided in Attachment 2, attached hereto, plus any non- substantive edits or corrections made as directed by the State Department of Housing and Community Development after thei r re view of the adopted 2023- 2031 Housing Element or Addendum to the 2010 General Plan Update EIR.

4. Effective date. This resolution shall become effective immediately.

I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED

AND ADOPTED BY THE PLANNING COMMISSION OF THE CITY OF SANTA CL ARA, CALIFORNIA, AT A SPECIAL MEETING THEREOF HELD ON THE 26

TH DAY OF JANUARY,
2023, BY THE FOLLOWING VOTE:

AYES: COMMISSIONERS: Biagini, Bhatnagar, Bouza, Cherukuru, Huang, Saleme NOES: COMMISSIONERS:

ABSENT: COMMISSIONERS: Herro
ABSTAINED: COMMISSIONERS:

ATTEST:

ANDREW CRABTREE

DIRECTOR OF COMMUNITY DEVELOPMENT

CITY OF SANTA CLARA

Attachments Incorporated by Reference:

1. City of Santa Clara Housing Element

2. SV@ Home Letter

S:\Attorney\RESOLUTIONS\Form Resolution-Planning Commission.doc

Resolution/Housing Element Update 2023 Addendum Page 1 of 4 Rev. Rev: 11/22/17

RESOLUTION NO. 23-004

A RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF SANTA CLARA, CALIFORNIA TO ADOPT AN

ADDENDUM TO THE GENERAL PLAN ENVIRONMENTAL
IMPACT REPORT, FOR ADOPTION OF THE 6 TH CYCLE
HOUSING ELEMENT (2023-2031)

WHEREAS, BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA CLARA AS FOLLOWS:

WHEREAS, the California legislature has found that “California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives.” (Gov. Code Section 65589.5.); and
WHEREAS, the legislature has further found that “Among the consequences of those actions are discrimination against low -income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration.” (Gov. Code Section 65589.5.); and WHEREAS, the legislature recently adopted the Housing Crisis Act of 2019 (SB 330) which states that “In 2018, California ranked 49th out of the 50 states in housing units per capita… California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over 7 years”; and WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Housing Element for the eight -year period 2023- 2031 to accommodate the City of Santa Clara (City) regional housing need allocation (RHNA) of 11,632 housing units, comprised of 2,872 very -low income units, 1,653 low- income units, 1,981 moderate-income units, and 5,126 above moderate-income units; and

Resolution/Housing Element Update 2023 Addendum Page 2 of 4 Rev. Rev: 11/22/17

WHEREAS, to comply with State Housing Element Law, the City of Santa Clara has prepared its Housing Element Update for the years 2023-2031 (the Housing Element); and WHEREAS, as provided in Government Code Section 65350 et. seq., the Housing Element constitutes a General Plan Amendment; and
WHEREAS, the Project approvals will include a resolution approving the Addendum to the General Plan EIR ; and a r esolution approving the General Plan Amendment (collectively, the “Approvals”);
WHEREAS, the City has prepared an Addendum to the 2010-2035 General Plan Environmental Impact Report adopted by the City Council on November 16, 2010 , and to the environmental review documents that were prepared for subsequent amendments to the General Plan that affected housing development in the City, including but not limited to the December 2013 Climate Action Plan Negative Declaration; the February 2016 Mission Town Center EIR; the 2016 Related Santa Clara EIR; the November 2016 Lawrence Station Area Plan EIR; the July 2018 575 Benton Project Addendum; the July 2019 Gateway Crossings EIR; the March 2022 Patrick Henry Drive Specific Plan EIR; the June 2022 Climate Action Plan Addendum; and the June 2022 Freedom Circle Future Focus Area EIR (collectively, the “Subsequent Documents”), all of which provide environmental clearance for all of the units in the 6th cycle Housing Sites Inventory; WHEREAS, a notice of the public hearing on the proposed General Plan Amendment was published in the Santa Clara Weekly, a newspaper of general circulation for the City, on December 11, 2022, for the January 11, 2023 Planning Commission Meeting and the January 31, 2023 City Council meeting; and
WHEREAS, on January 11, 2023, the Planning Commission opened the public hearing to consider the proposed General Plan Amendment, and then continued the hearing to January 23, 2023; and
Resolution/Housing Element Update 2023 Addendum Page 3 of 4 Rev. Rev: 11/22/17

WHEREAS, on January 23, 2023, the Planning Commission opened the public hearing to consider the proposed General Plan Amendment, and then due to technical difficulties continued the hearing to January 26, 2023; and
WHEREAS, the Planning Commission reviewed the Addendum to the General Plan EIR , in accordance with the requirements of CEQA, along with the City Staff report pertaining to the Project, and all evidence received at a duly noticed public hearing on January 23, 2023. All these documents and evidence are incorporated herein by reference into this Resolution; and WHEREAS, on January 26, 2023, the Planning Commission conducted a public hearing, at which time all interested persons were given an opportunity to give testimony and provide evidence in support of and in opposition to the proposed Addendum to the General Plan EIR.

NOW THEREFORE, BE IT FURTHER RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA CLARA AS FOLLOWS:
1 That the Planning Commission hereby finds that the above Recitals are true and correct and by this reference makes them a part hereof.

2. That the Planning Commission hereby finds that the Addendum to the General Plan EIR has been completed in compliance with CEQA.

3. That the Planning Commission hereby finds that the Addendum to the General Plan EIR has been presented to the Commission , which reviewed and considered the information and analysis contained therein, and that the Addendum represents the independent judgment of the Commission.

4. That the Planning Commission hereby finds that the proposed General Plan Amendments do not involve substantial changes to the General Plan that would require major revisions to the previous EIR or Subsequent Documents.

5. That the Planning Commiss ion hereby finds that there is no substantial change in circumstances as a result of modifications to the General Plan that would require major revisions Resolution/Housing Element Update 2023 Addendum Page 4 of 4 Rev. Rev: 11/22/17

to the previous EIR and Subsequent Documents or cause new or substantially more severe significant impacts.

6. That the Planning Commission hereby finds that there is no new information of substantial importance that identifies new or more intense significant impacts than those identified in the General Plan EIR and Subsequent Documents.

7. Based on the findings set forth in this Resolution and the evidence in the City Staff Report, the Planning Commission hereby recommends that the City Council approve the Addendum to the General Plan EIR, in accordance with CEQA for the Project.

8. Effective date. This resolution shall become effective immediately.

I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED

AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A SPECIAL MEETING THEREOF HELD ON THE 26
TH DAY OF JANUARY, 2023, BY THE FOLLOWING VOTE:

AYES: C OMMISSIONERS: Biagini, Bhatnagar, Bouza, Cherukuru, Huang, Saleme NOES: C OMMISSIONERS:

ABSENT: C OMMISSIONERS: Herro
ABSTAINED: C OMMISSIONERS:

ATTEST:

ANDREW CRABTREE

DIRECTOR OF COMMUNITY DEVELOPMENT

CITY OF SANTA CLARA

From: Mathew Reed <[email protected]>
Sent: Monday, January 23, 2023 6:00 PM
To: Andrew Crabtree <[email protected]>; Reena Brilliot <[email protected]>; John Davidson <[email protected]>
Cc: PlanningCommission <[email protected]> Subject: 6th Cycle Housing Element Update - Action Item 13

Andrew Crabtree - Director
Reena Brilliot – Assistant Director
John Davidson – Principle Planner
Community Development Department
City of Santa Clara

Re: 6th Cycle Housing Element Update

Mr. Crabtree, Ms. Brilliot and Mr. Davidson.

We want to begin by thanking your team for the time and energy that has been invested in the Housing Element Update process, and to apologize for the delay in relaying this comment. We believe that significant progress has been made since receipt of the comment letter from HCD on the first draft. This is not an easy process, but the investments you have you made are going to make Santa Clara a better place for all of its residents as we collectively commit to addressing the housing crisis we are in. We have a number of comments that we will share under separate cover ahead of the council session, but wanted to draw attention to one detailed comment ahead of that correspondence.

We believe that Action Item 13 in the current Draft Housing Element would benefit significantly from some clarification and expansion. This item proposes to evaluate and propose recommendations to council on tenant relocation benefits, and requirements for replacement units at affordable levels in cases where tenants are displaced due to demolition and redevelopment, substantial rehabilitation requiring that the property be vacated, or expiration of deed-restrictions. Because this is an “evaluation and propose” item, it allows for significant flexibility in its potential scope and effect. As currently proposed, however, this item is a bit confusing and appears to conflate two identified risks of displacement of Santa Clara residents and loss of existing housing resources in the city.

For clarity we would propose the following revisions to Action 13.

Within one year of Housing Element adoption, evaluate and provide recommendations to City Council on new programs and policies that prevent displacement and/or facilitate soft landings when relocation is unavoidable. This evaluation will include the following policy areas at a minimum:
• Requiring no net loss of income-restricted residential units during the construction of new housing or rehabilitation of existing housing.
• Requiring the replacement of existing income-restricted, and unrestricted affordable units at the same or lower income level as a condition of development. • Requiring landlords to notify tenants and the City at least one year in advance of redevelopment and/or potential conversion of an income restricted property to market rate housing. Provide information regarding tenant rights and conversion procedures. • Require developers to provide relocation benefits beyond those required by the state. - Within two years of Housing Element adoption, as necessary and appropriate, adopt programs and policies to address displacement with bi-annual monitoring and reporting of effectiveness.

Discussion
The type of housing, explicitly referenced in Action Item 13 as affordable, is income-restricted affordable housing where rents are subsidized to be below market rate, and households are eligible based on their lower household incomes. This is traditional affordable housing, and could be 100% of the units in a single building, or “inclusionary” units integrated into an existing market rate property. Unfortunately, Santa Clara has relatively few of these homes, even as they are an essential resource to the city and its lower-income residents.

The vast majority of lower-income renter households in Santa Clara live in older market-rate housing where the rents are more affordable, but are not deed restricted affordable housing. (Often referred to as naturally occurring affordable housing – NOAH.) It is the households living in these apartments that are most likely to be significantly rent burdened, live in overcrowded conditions, and are most often displaced by rent increases or unexpected life shocks, such as a family illness or loss of a job, that push them beyond their budgets.

Nonetheless, this housing plays a critical role for working people in Santa Clara because it is often the only way for them to stay in the city. As such these lower-rent homes, which are not traditionally considered “affordable housing,” are nonetheless a critical asset to the city in meeting the housing needs of its residents.

The challenge for the city, and our region, is that both of these types of housing are at-risk due to redevelopment, and their current tenants are at risk of displacement through no fault of their own. This has not been an active problem in Santa Clara to date, but it has been in other cities in the county and creates tremendous hardship unless policies in place to assist tenant’s with a “soft landing” that would ideally enable them to stay housed, and remain in Santa Clara connected to their communities. In addition, when these properties are redeveloped there is a loss of more-affordable homes in the city, and a “no net loss” provision would ensure that the city doesn’t experience a reduction in the number of homes that people can afford.

These policies are included in existing state laws -- AB 1482 and SB 330 -- but their local application really requires more local discussion and planning.

The relocation policy is generally referred to as a Tenant Relocation Assistance Ordinance (TRAO). Local jurisdictions that currently have some version of this ordinance in place include: Palo Alto, Mountain View, Campbell, Milpitas, Monte Sereno, Santa Clara County and San Jose. Sunnyvale has an ordinance under development as part of its Housing Element process. The no net loss provisions of SB 330 are newer, and overlap with a smaller number of local ordinances.

Please feel free to follow up if you have any questions or concerns with our comments. Thank you again for all that you do.

Mathew Reed
Director of Policy
Silicon Valley at Home

Mathew Reed
Director of Policy
669-254-1009

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