Agenda Item: 17
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: May 10, 2022
SUBJECT: HOUSING ELEMENT AND SAFETY ELEMENT UPDATE (MASTER CASE 21-088)
DEPARTMENT: Community Development
PRESENTER: James Chow
RECOMMENDED ACTION
City Council:
1. Conduct the public hearing and receive testimony from the public; and
2. Adopt a resolution adopting the Negative Declaration prepared for the project and approve Master Case 21-088 (General Plan Amendment 21-001) and adopt the Housing Element and Safety Element Updates.
BACKGROUND
STATE LAW
The City of Santa Clarita (City) is mandated by California state law to prepare an update to its Housing Element for certification by the state. This update covers the planning period between 2021 and 2029, also referred to as the sixth Housing Element cycle. The sixth Housing Element cycle process unofficially began in October 2019 when the California Department of Housing and Community Development (HCD) provided a Regional Housing Needs Assessment (RHNA) allocation of 1.34 million units to the Southern California Association of Governments (SCAG).
In March 2021, SCAG adopted the final RHNA allocation plan and distributed an allocation of 10,031 units to the City of Santa Clarita, for which the City is responsible to plan and zone. The proposed update to the Housing Element provides the capacity needed to accommodate the RHNA for the planning period under existing zoning, and thus does not require any re-zoning. It should also be noted that Housing Elements do not require or propose the actual construction of housing, but rather require the appropriate zoning to accommodate it.
All cities in California are required by state law to produce, update, and certify their Housing Elements every eight years. The Housing Element is one of seven mandated elements that comprise a city’s General Plan. It is the only element of the General Plan that must be certified by a state agency. The HCD is the certifying agency that evaluates each city’s Housing Element.
The City’s General Plan contains eight elements, including Land Use, Economic Development (nonmandatory), Circulation, Noise, Conservation and Open Space (two elements combined), Safety, and Housing.
OVOV GENERAL PLAN AND 2013-2021 HOUSING ELEMENT
A comprehensive update to the City’s General Plan was adopted by the City Council in June 2011, following years of planning and collaboration between the City and County of Los Angeles (County), through the One Valley One Vision (OVOV) process. The OVOV process reflected the City’s and County’s decision to coordinate land uses and future development of the Santa Clarita Valley.
A major component of the OVOV was an update to the General Plan land use map, which was developed by balancing the goals and requirements of reducing future greenhouse gas emissions (e.g. Senate Bill 375) and planning for future regional housing needs. The General Plan land use map maximized opportunities for increasing jobs, redeveloping infill areas, and creating additional suitable housing sites near transit, while decreasing densities in the more environmentally sensitive areas at the City’s periphery.
Following the OVOV General Plan update, the 2013-2021 Housing Element was adopted by the City Council in October 2013 and certified by HCD. The 2013-2021 Housing Element provided adequate sites at a range of densities to accommodate future housing needs and planned for the maintenance and improvement of the existing housing stock. The City’s 2013-2021 Housing Element RHNA allocation was 8,322 units, which then increased to 10,981 units through annexations. A summary and evaluation of the City’s progress towards achieving the implementation programs is provided in Section 1.14 of the Draft Housing Element (attached).
2021-2029 HOUSING ELEMENT
Following receipt of Senate Bill (SB) 2 grant funding, the City Council authorized a contract with the City’s consulting team, consisting of 4LEAF, Inc., and Rincon Consultants, Inc., on January 26, 2021, to prepare the update to the Housing Element (hereafter “Housing Element Update” or “2021-2029 Housing Element”). Since that time, staff and the consultant team have been preparing the Housing Element Update for the 2021-2029 planning period.
Extensive public outreach was conducted for the Housing Element Update between January and September 2021. Various public participation opportunities were provided, including the creation of the Housing Element Update webpage, stakeholder meetings, an online opinion survey, a virtual workshop, a study session before the Planning Commission, and a City Council Development Committee meeting. A thorough summary of the public participation conducted and how comments were incorporated can be found attached in Appendix B of the Housing Element Update.
A draft of the Housing Element Update was published on the City’s website on October 29, 2021, for public review and was submitted to HCD on November 12, 2021. Following its 60-day review of the Draft Housing Element Update, HCD issued a letter to the City on January 11, 2022, finding that the “draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Government Code).” A copy of this letter is attached.
Since receipt of the letter, staff and the consultant team have coordinated with HCD and prepared the necessary revisions to the Housing Element Update to ensure compliance with Housing Element Law. A draft response matrix summarizing HCD’s comments and how each of the comments are addressed in the public hearing Draft Housing Element is attached. State law requires the City Council to consider HCD’s comments and make appropriate findings as part of the Housing Element adoption process. City staff will then forward the final response matrix and Housing Element Update to HCD for its final review.
The City Council public hearing draft of the Housing Element Update that reflects the revisions required by HCD is attached. Included as part of the Housing Element Update are various implementing programs to ensure consistency with state laws and local planning objectives. Key components of the Housing Element Update are summarized under the Statutory Requirements section of this agenda report.
Key conclusions of the 2021-2029 Housing Element are as follows:
▪ No General Plan land use changes or zoning changes were necessary to accommodate the City’s RHNA allocation. Future residential development is expected to occur in those areas already identified for residential uses. No areas have been identified for re-zoning or up- zoning.
▪ The Housing Element Update recommends minor modifications to the City’s current Housing Element goals and policies. Other updates to goals, policies, objectives, and programs are required to comply with state law.
▪ The Housing Element Update includes a number of new programs to address state housing law, including future amendments to the Unified Development Code (UDC), new programs to support affirmatively furthering fair housing, and tracking and reporting requirements for housing sites.
SAFETY ELEMENT UPDATE
As required by state law, upon the next revision of the Housing Element on or after January 1, 2014, the Safety Element is required to be reviewed and updated as necessary to address the risk of wildfire for land classified as state responsibility areas and as very high fire hazard severity areas. The updated Safety Element is also required to include updates to address climate adaptation as required by SB 379. The proposed updates to the Safety Element incorporate goals, policies, objectives, and implementation measures to address climate adaptation and wildfire risks. The update of the Safety Element does not warrant a comprehensive rewrite, but rather, includes revisions to address new statutory requirements and incorporates information from the Local Hazard Mitigation Plan, which was adopted by the City Council on September 14, 2021.
In accordance with California Government Code Section 65302.5, the updated Safety Element was submitted to the California Board of Forestry and Fire Protection (BOF) and the California Geological Survey for review. On January 18, 2022, the Resource Protection Committee of the BOF completed its review and assessment of the updated Safety Element and determined it meets the requirements of Government Code Section 65302. The updated Safety Element and the redlines reflecting changes to the Safety Element are attached.
PLANNING COMMISSION RECOMMENDATION
On April 5, 2022, the Planning Commission conducted a duly-noticed public hearing on the proposed updates to the Housing Element and Safety Element. The Planning Commission, in a 5-0 vote, recommended the City Council adopt the Negative Declaration prepared for the project and adopt the Housing Element and Safety Element Updates. Included in their recommendation was a request to make a minor revision to the Safety Element clarifying the service area for the Pitchess Detention Center. The Planning Commission Resolution and staff report are attached.
STATUTORY REQUIREMENTS
NEW HOUSING ELEMENT REQUIREMENTS
Recent changes to state law have imposed new requirements for the 2021-2029 Housing Element. These more stringent requirements, combined with a high RHNA allocation, have presented various challenges with this Housing Element Update. Key new Housing Element requirements are described below:
1. Higher RHNA Allocations
As compared to the prior Housing Element cycle, RHNA allocations have increased significantly across the state, especially in the SCAG region. The SCAG region’s allocation increased threefold from 412,000 units for the prior cycle to 1.34 million units for this current cycle.
Although the City is seeing a 950-unit decrease in the RHNA (from 10,981 units to 10,031 units) as compared to the last cycle, the relatively high RHNA allocation presents challenges due to new and more stringent requirements and the decreasing number of vacant and eligible sites to accommodate the RHNA. A detailed discussion of the City’s RHNA allocation is provided below and in Section 1.13 of the Housing Element.
2. Eligibility of Sites (Assembly Bill (AB) 1397)
AB 1397 amended the Housing Element Law and places stricter requirements on local jurisdictions when identifying adequate and available sites to meet their RHNA allocations. This law resulted in added scrutiny and more eligibility requirements for identifying housing sites, including a strong justification threshold if non-vacant sites and sites smaller than one-half acre or greater than 10 acres are included. The legislation also includes new requirements for streamlining the permitting of projects on sites included in previous Housing Elements that are reused in the updated sites inventory.
3. No Net Loss (SB 166)
SB 166, the “No Net Loss” law, requires a jurisdiction to ensure a Housing Element sites inventory with continual capacity to accommodate the RHNA by income group throughout the eight-year planning period. If sites identified for lower‐income housing are developed with less units than identified in the Housing Element, or are developed for a higher income group, the jurisdiction must demonstrate that there are sufficient remaining sites or additional substitute sites to meet the jurisdiction’s RHNA obligation in all income categories. Because of this requirement, HCD recommends an increased buffer of at least 15 to 30 percent more capacity than required, especially for the lower-income RHNA. The Housing Element sites inventory includes roughly a 23 percent surplus or buffer for lower-income units and utilizes conservative estimates for development capacity in order to account for this need.
4. Affirmatively Furthering Fair Housing (AFFH) (AB 686)
AB 686 requires state and local agencies to take proactive measures to correct any housing inequalities related to race, national origin, color, ancestry, sex, marital status, disability, religion, or other protected characteristics. Agencies must ensure that their laws and programs affirmatively further fair housing, and that they take appropriate actions to do so.
Under state law, affirmatively furthering fair housing, or AFFH, means “taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” Agencies must include a program in their Housing Elements that promotes fair housing opportunities for all persons. In the context of a community’s housing needs, AFFH is not just about the number of units needed, but also about where the units are located and who has access to them. A full assessment of fair housing can be found in Section
4.5 of the Housing Element Update.
KEY COMPONENTS OF THE HOUSING ELEMENT
1. Public Participation
Despite restrictions on gatherings due to the COVID-19 pandemic, extensive public outreach was completed during the preparation process, which resulted in meaningful public participation.
Various public participation opportunities were provided, including the creation of the Housing Element Update webpage, stakeholder meetings with various nonprofit housing providers and service providers, an online opinion survey, a virtual workshop, a study session before the Planning Commission, and a City Council Development Committee meeting. A thorough summary of the public participation conducted and how public comments were incorporated into the Housing Element Update can be found in Appendix B of the Housing Element Update.
Prior to the posting of the public review draft of the Housing Element, staff received 163 form letters from members of the Southwest Regional Council of Carpenters (SWRCC) requesting that labor standards be incorporated into the plan. An additional 29 letters were provided to the Planning Commission at their meeting. Three additional comment letters were provided during the preparation of the Housing Element Update, including letters from the attorney representing
SWRCC, Los Angeles County Sanitation District, and Californians for Homeownership. Copies of these letters are attached for the City Council’s consideration.
2. Housing Needs Assessment and RHNA Allocation
The Housing Element Update must include an analysis of current and projected housing needs in the City. Goals, policies, and programs are based on such an assessment. Detailed data on household characteristics, housing stock conditions, and demographic and employment trends are also required. Other data requirements include updated demographic information such as the following: 1) the total population; 2) the number of households overpaying for housing; 3) the number of households living in overcrowded conditions; and 4) special housing needs. It must also include the number of housing units that need rehabilitation, as well as assist affordable units at risk of converting to market rate.
The Housing Element Update must also discuss the City’s fair share of the RHNA established by SCAG. The RHNA allocation establishes the number of new units anticipated to be needed (by income category) to accommodate the expected population growth over the planning period.
State law requires that cities incorporate this allocation into their Housing Elements and plan accordingly. The Housing Element Update identifies the City’s RHNA, sets forth housing goals, policies, and programs and plans housing production for all household types and income categories, including seniors, large households, persons with disabilities, and the workforce.
Most importantly, the Housing Element Update must demonstrate that the City can accommodate its RHNA over the next eight-year planning period. Table 1 provides a summary of the City’s RHNA and its breakdown by income category:
Table 1: Regional Housing Needs Assessment Allocation for the City of Santa Clarita
Very Low-
income
(0-50% AMI)
Low-income
(51-80%
AMI)
Moderate-
income
(81-120%
AMI)
Above
Moderate-
income
(above
120% AMI)
Total
RHNA
Allocation
3,397
1,734
1,672
3,228
10,031
Income Category (based on AMI – Area Median Income for Los Angeles County)
3. Housing Sites and Inventory
The 2021-2029 Housing Element Update must include a sites inventory demonstrating the City has enough suitable sites to accommodate the number of units by each income category included in the City’s RHNA allocation. The Housing Element sites inventory demonstrates that the City has adequate sites to meet its RHNA allocation under existing zoning. All sites included in the sites inventory are currently zoned appropriately for residential development; therefore, no re- zoning of sites is required. Table 2 provides the City’s 2021-2029 RHNA allocation and a summary of the sites inventory and RHNA surplus by income category.
Maps and a corresponding table of the sites can be found in Figures 14 and 15 and Appendix D, respectively, in the Housing Element Update. Of the City’s 10,031-unit total RHNA obligation, 186 lower-, 22 moderate-, and 9,177 above moderate-income units are accounted for by approved and planned units (refer to Table 12 of the Housing Element Update) and through Accessory Dwelling Unit (ADU) development. After subtracting these units from the RHNA allocation, there is a sum of 6,595 units needed to accommodate the City’s remaining RHNA allocation, including 3,349 units affordable at the very low- and extremely low-income levels, and 1,596 units affordable at the low-income level. The City has identified suitable sites to realistically accommodate an additional 9,845 potential units under current zoning, with an approximately 23 percent buffer for the very low- and low-income categories and a 46 percent buffer for the moderate-income category, as shown in Table 2. More than 50 percent of the City’s low-income RHNA obligation can be met on vacant sites.
Table 2: RHNA Surplus by Income Group
Very
Low-
income
Low-
income
Moderate-
income
Above
Moderate-
income Total
RHNA Allocation 3,397 1,734 1,672 3,228 10,031
Approved and Planned Units 0 53 0 9,082 9,135 ADUs 48 85 22 95 250
Remaining RHNA Allocation
After Credits 3,349 1,596 1,650 0 6,595
Units on Vacant Sites 1,956 920 1,777 -- 4,653 Units on Non-vacant Sites 2,181 1,027 625 1,359 5,192 Total Units After Credits 4,137 1,947 2,402 1,359 9,845 Total Unit Surplus 788 351 752 7,308 9,199
Buffer above Remaining
RHNA After Credits 24% 22% 46% >100%
4. Housing Constraints
In compliance with Government Code Section 65583, sections 4.4.1 and 4.4.2 of the Housing Element Update identify and analyze potential non-governmental and governmental constraints to the production and retention of housing.
Housing Element law requires local jurisdictions to identify governmental constraints to the production of housing, such as land use regulations, housing policies, fees, zoning, and other factors that influence the price and availability of housing. The Housing Element must analyze land use controls, fees and exactions, on- and off-site improvement requirements, building codes, permit and processing procedures, and potential constraints on the developments or improvements of housing for persons with disabilities. The Housing Element Update generally finds that the City’s land use controls do not create unnecessary constraints to housing development. In addition, non-governmental constraints must be analyzed, including the availability and cost of land, as well as construction. These constraints are often out of the City’s
control and can result in housing that is not affordable to low- and moderate-income households.
5. Housing Resources
Section 4.3 of the Housing Element Update identifies housing resources, including financial and administrative resources that are available to assist the City in meeting its housing needs.
Identified housing resources include housing assistance programs, resources for the homeless population, supportive and transitional housing resources, an inventory of assisted rental housing developments, and planning and zoning programs.
6. Goals and Policies
The Housing Element Update includes four goals that serve as the framework for implementing its housing policies and programs. The Housing Element Update recommends minor modifications to the City’s current Housing Element goals and policies. Other updates to goals, policies, objectives, and programs are required to comply with state law. The following is a summary of those goals. A complete list of the 35 policies that implement these goals is provided in Section 2.1 of the Housing Element Update.
▪ Goal H1: Identify and maintain adequate sites to accommodate the City’s regional housing need through the planning period.
▪ Goal H2: Promote the production of housing units, including affordable units, to meet the City’s identified housing needs.
▪ Goal H3: Sustain and improve existing housing units and programs. ▪ Goal H4: Ensure fair access to quality housing and services for all members of the community, including those with special needs.
7. Programs
The Housing Element Update includes 37 programs that implement the housing policies referenced above. Many of the programs are existing programs that will be continued. The update also includes a number of new programs to address state housing law, including future required updates to the UDC, new programs to support affirmatively furthering fair housing, and tracking and reporting requirements for housing sites. The following is a summary of the key implementing programs. A complete list of programs is provided in Section 2.2 of the Housing Element Update.
▪ Housing Sites and No Net Loss
o HP-1.1 – Track units built on identified housing sites to ensure sufficient residential capacity is maintained to accommodate the RHNA for each income category. o HP-1.2 – Identify replacement sites and ensure compliance with SB 166.
▪ Zoning Programs
o HP-1.4 – Complete a study to determine potential additional local density bonuses and incentives for affordable housing developments.
o HP-1.7 – Complete a feasibility study to determine the financial and programmatic feasibility of an inclusionary housing ordinance/requirement.
o HP-1.5 – Continue incentives allowed for developments in the mixed use overlay zone. o HP-1.6 – Continue the density/height incentives granted to certain development projects in Old Town Newhall.
o HP-1.13–Amend the zoning code and/or create an overlay zone for housing sites used for multiple Housing Elements and allow by-right approval requirements if at least 20 percent of units are affordable to lower-income households. o HP-2.1 – Amend the zoning code to address recent changes to state law; update the ADU ordinance to ensure compliance with state law.
▪ Housing Rehabilitation, Preservation, and Affordable Housing Programs o HP-2.5 – Collaborate with non-profit affordable housing developers. Enter into an agreement with a developer to identify suitable land for the development of an affordable housing project.
o HP-3.2 – Continue to provide financial support to the handyworker program, which offers grants up to $5,000 to lower-income households for home repairs. o HP-3.3 – Continue to provide financial support to the property rehabilitation program, which offers grants up to $1,500 to lower-income households for property maintenance and repairs.
o HP-3.5 – Work to preserve the affordable units that are at risk of converting to market- rate rents.
o HP-3.6 – Continue to implement the mobilehome rent adjustment policies to protect park residents from unreasonable rent increases.
▪ Fair Housing
o HP-4.4 – Continue to update the fair housing assessment every five years. o HP-4.5 – Continue to contract with the City’s fair housing services consultant and conduct outreach and education on fair housing.
o HP-4.11–Implement the identified actions to address fair housing issues.
IMPLEMENTATION MEASURES
Several housing programs include implementation components that will require review by the Planning Commission and/or the City Council at a future date. Some of these include future amendments to the City’s UDC, as required by the state. A summary of these implementation measures is provided below:
1. Program HP-1.7: Inclusionary Housing Feasibility Study – Complete a feasibility study to determine the financial and programmatic feasibility of an inclusionary housing ordinance/requirement. Once completed, present the study to the City Council Development Committee by early 2025.
2. Program HP-1.4: Affordable Housing Density Bonus – As a part of the inclusionary housing feasibility study, a study will be completed by 2024 to determine the appropriate additional local densities and incentives, above those allowed by the state, to development projects that meet the City’s housing needs.
3. Program HP-1.13: Sites that were identified in prior Housing Elements and are used again in
the Housing Element Update are subject to by-right approval requirements if at least 20 percent of units are affordable to lower-income households. A future UDC amendment and/or overlay zone to address this statute will be completed by 2024. By adopting a local ordinance, the City will be able to reserve its ability to apply design review to these projects.
4. Programs HP-2.1 and HP-2.3: Zoning Code and Specific Plan Amendments for a Variety of Housing Types:
▪ Several new bills were recently signed into law that require revisions to permitting requirements for transitional and supportive housing, low barrier navigation centers, and employee and agricultural worker housing. UDC amendments will be completed by the end of 2023 to ensure consistency with state law.
▪ The City submitted its adopted ADU ordinance to HCD in February 2021 but has not received a formal review letter; however, HCD indicates it will be providing a review letter and will be requiring amendments to the ADU ordinance to ensure consistency with state law.
CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
CERTIFICATION
BENEFITS OF CERTIFICATION AND RISKS OF NONCERTIFICATION
Because housing needs are recognized as a matter of statewide concern, the state, through HCD, must certify the compliance of every jurisdiction’s Housing Element upon adoption.
Benefits of a certified Housing Element include maintaining eligibility for state funding, maintaining discretionary review over housing projects, and the presumption of legal adequacy if litigated. A noncompliant Housing Element, however, can result in consequences including loss of certain state funding sources, reduced local zoning control, and more abbreviated timelines for re-zoning. State Housing Element laws have been greatly strengthened in recent years and includes referring jurisdictions to the Office of the Attorney General. Cities could be fined by the Court and could also lose their ability to issue residential building permits; therefore, certification of the Housing Element is very important.
STATUTORY DEADLINE
The statutory deadline and the grace period for the City to adopt the 2021-2029 Housing Element Update was October 15, 2021, and February 11, 2022, respectively. According to SCAG, 191 out of 197 Southern California jurisdictions, including the City, did not have certified Housing Elements as of February 11, 2022. Delays in adopting and certifying Housing Elements could be attributed to a number of factors including stringent new requirements, additional HCD scrutiny, record-high RHNA allocations, delayed final RHNA allocations, and the COVID-19 pandemic.
The City posted the Draft Housing Element for public review and submitted it to HCD in October and November 2021, respectively, prior to the deadline. The City has made significant progress in addressing all of the comments provided by HCD following its review of the Draft Housing Element and remains committed to completing the public hearing process and
diligently working with HCD to address its comments and complete the Housing Element Update.
NEXT STEPS
Following this public hearing, staff will work with the consultant team to incorporate any City Council direction into the final Housing Element Update. If adopted by the City Council, staff would then submit the final Housing Element to HCD for a 60-day review, where HCD should determine it is consistent with the state Housing Element Law and certify the Housing Element.
If HCD determines that the Housing Element needs additional analysis and revisions to comply with state Housing Element Law, staff will make the revisions and may bring the Housing Element back for re-adoption at future public hearings, if needed. Once HCD certifies that the Housing Element is compliant, the City’s 2021-2029 Housing Element Update will be complete.
ENVIRONMENTAL REVIEW
A Draft Negative Declaration and Initial Study were prepared for the proposed project and made available for public review from December 16, 2021, to January 18, 2022, during which the Community Development Department received five comment letters. During the public review period, a copy of the Negative Declaration and all supporting documents were available on the City’s website and in the City Clerk’s Office. The Final Initial Study, including responses to comments, was made available for public review and sent to all commenters on March 18, 2022.
The Final Negative Declaration and Initial Study are attached.
PUBLIC NOTICING
All noticing requirements for the public hearing have been completed as required by Section
17.06.110 of the UDC. A one-eigth page advertisement was placed in The Signal newspaper on April 19, 2022. An email notification was sent to the project notification list. The public hearing notice is attached.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
There is no fiscal impact associated with this proposed project.
ATTACHMENTS
Public Hearing Notice
Resolution
HCD Findings Letter
City's Response to HCD Letter Matrix
Comment Letters
Housing Element Update (available in the City Clerk's Reading File) Safety Element Update (available in the City Clerk's Reading File) Safety Element Update Redlines (available in the City Clerk's Reading File) Planning Commission Resolution and Staff Report (available in the City Clerk's Reading File) Draft Negative Declaration and Initial Study (available in the City Clerk's Reading File) Final Negative Declaration and Initial Study (available in the City Clerk's Reading File)