FOR THE COUNCIL MEETING OF DECEMBER 5, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Assistant City Manager/Director of Community Development Chuen Wu
SUBJECT: Adoption of a Resolution Adopting a Negative Declaration Pursuant to Government Code Section 65580 et seq and Adoption of a Resolution Repealing the 2015 -2023 Housing Element and Adopting the 2023 - 2031 Sixth Cycle Housing Element
Description:
The City Council will c onsider the repeal of the 2015 -2023 Housing Element and the adoption of the 2023 -2031 Sixth -Cycle Housing Element of the City’s General Plan in accordance with Section 65588 of the California Government Code.
Environmental Notice: Environmental Review for this project was completed through the preparation of an Initial Study and Negative Declaration pursuant to the California Environmental Quality Act State Guidelines.
RECOMMENDATIONS:
1) Adopt a Resolution adopting a negative declaration for the adoption of the 2023 sixth cycle Housing Element, Pursuant to State Government Code Section 65580 et seq Citywide; and 2) Adopt a Resolution repeal ing the 2015 -2023 Housing Element and adopting the 2023 -2031 Sixth Cycle Housing Element and forward ing the adopted document to the State Department of Housing and Community Development for their certification pursuant to State Government Code Section 65585.
BACKGROUND:
The Housing Element, as one of the many required elements of the City’s General Plan, provides a written framework for meeting the housing goals of the City. The City adopted the current Housing Element in 2015 . California Government Code Sections 65580 through 65589.11 establish the requirements for housing elements in California . Unlike the other required elements of the General Plan, State law requires that the Housing Element be updated every eight years. This periodic update is required to reflect recent changes in State Law, provide updated information on City housing programs, review and adjust the City’s strategy for meeting its housing needs, and to demonstrate that the City has the land capacity to meet its Regional Housing Needs Allocation (RHNA).
Additionally, the Housing Element is the only component of the General Plan required by 2 State law to be reviewed by the State Department of Housing and Community Development (HCD) prior to official certification.
Planning Commission Review
The draft Housing Element and associated Initial Study and Negative Declaration (IS/ND) were reviewed by the Planning Commission at a public hearing on November 15, 2023, where both items were recommended for adoption by the City Council.
DISCUSSION:
The draft Sixth-Cycle Housing Element is provided as Attachment A to this report. Section I provides the introduction, including descriptions of the analysis methods, data sources, and public outreach efforts used in its preparation. Section II provides a summary of the projected housing need s, including the RHNA . Section III summarizes the adequacy of the City’s housing sites and housing resources with references to relevant appendices.
Section IV contains goals, policies, and actions related to housing in Santa Maria .
Appendices ‘A’ through ‘G’ provide the full background data, comprehensive research, and analysis used to inform the development of the Element, including the City’s goals, policies, and programs presented in Section IV.
2023-2031 Housing Element Subjects
California Government Code Section 65583 requires local governments to address specific subjects and analyses within their Housing Elements. These include:
A Housing Needs Assessment, to examine the current demographic, employment, and housing trends and conditions in the City, and from that develop the projected housing needs of the community, with attention paid to special housing needs (e.g., large families, persons with disabilities). Evaluation of the Current Housing Programs, to gauge the City’s progress in implementing policies and programs and determine if current programs warrant amendment.
Inventory of Potential Available Housing Sites, to demonstrate that within the City there are enough residential and mixed-use zoned properties of sufficient size to accommodate the projected number of new housing units needed per income level (RHNA).
A Constraints Analysis, where existing and potential governmental and nongovernmental barriers to housing development are identified and analyzed. Affirmatively Furthering Fair Housing (AFFH), through analysis of significant disparities in housing needs and access to opportunity which may lead to segregated living patterns.
Updated Policies and Programs, to be carried out during the 2023-2031 planning period to fulfill the identified housing needs, relieve constraints, facilitate the 3 development of adequate housing for all income levels, and facilitate integrated and balanced living patterns and fostering compliance with civil rights and fair housing laws. Each program is required to include specific, quantifiable actions the City will undertake during the sixth-cycle planning period. Documentation of Community Engagement Efforts. State law emphasizes and requires robust community engagement during the Housing Element update process, which includes reaching out to individuals of all economic levels and historically underrepresented groups within the community.
Regional Housing Needs Allocation
The draft Sixth -Cycle Housing Element incorporates the RHNA assigned to the City of Santa Maria by the Santa Barbara County Association of Governments (SBCAG). For the sixth-cycle of the RHNA, which is the statuary planning period of February 2023 to February 2031, the City’s assigned RHNA is 5,418 units.
The total RHNA requirement is divided into four affordability categories, established according to the Area Median Income (AMI) for Santa Barbara County. These categories include very low-income residential units, which are affordable to households earning less than 50 percent of AMI; low-income residential units, which are affordable to households earning between 50 percent and 80 percent of AMI; moderate-income residential units, which are affordable to households earning between 80 percent and 120 percen t; and above moderate -income residential units which are affordable to households earning upwards of 120 percent of AMI.
Appendix B (Sites Inventory & Methodology) to the proposed Housing Element provides a detailed list of the potential available housing sites and a map of the sites, documenting that the City of Santa Maria has sufficient suitable sites available to accommodate the City’s RHNA for each income level. The housing sites inventory analysis considered various factors in site selection including whether the site is vacant or very underutilized, whether the infrastructure is available, or whether other limitations that would constrain the future development of housing units. The underutilized sites have been analyzed and are considered viable si tes based on the age and/or condition of the existing structure, high demand for housing, and recent development trends.
2023-2031 Housing Element Programs
The 2023 Housing Element goals include promoting new housing construction, conserving, and improvi ng the City’s existing housing stock, reducing, or removing government constraints on housing, addressing housing for those with special needs, and promoting equal housing opportunities. The element includes policies and programs related to each of these goals.
An analysis of the 22 programs contained within the current 2015 Housing Element, along with the input received during the public outreach efforts have been incorporated into the proposed programs (draft Element Section IV.B ). The draft Element includes the continuation of those successful existing programs, as well as new programs developed 4 to address emerging housing opportunities and constraints, address changes in State law, and provide innovative approaches to accommodate the sixth cycle RHNA.
Some of the programs that will continue from the 2015 Housing Element include Programs 1.B: Density Bonus , 1.E: Prioritization of Services, 2.B: Code Enforcement,
5.A: The Homebuyer Assistance Program , 5.B: Tenant-Based Assistance , and 5.C:
Rental Assistance.
Programs responding to new State laws include Programs 1.H: Housing on Religious Institution Sites, 1.I: Surplus Land Act Sites, 3.B: Objective Design Standards, 5.D: Fair Housing Program , 5.E: Tenants Rights Information , 5.F: Environmental I ssues Identification and Action, and 5.G: Environmental Justice. Additionally, Program 3.F: R-2 and R-3 Zoning District Densities will directly increase housing production by increasing the maximum multi -family residential densities above what is currently permitted.
Program 1.F: Annexation Program also has the potential to increase housing production.
The City has included programs to support the needs of extremely low -income households, such as supporting accommodation for seniors and persons with disabilities (Program 4.A), supporting the development and preservation of housing for unhoused individuals and support services to the homeless (Program 4.B: Supportive Housing for Homeless Persons). Since State law now allows the City to credit Accessory Dwel ling Units (ADUs) toward the City’s RHNA, the City will monitor ADU production through Program 1.D: Accessory Dwelling Units to ensure targets are met. Part of that effort will be to conduct annual ADU rental income surveys and report the results with the City’s General Plan Annual Reporting.
For the full list and description of programs please see Housing Element Section IV.B Goals, Policies, and Programs. The new programs are intended to significantly increase the amount and types of housing for all inc ome levels in Santa Maria. These efforts are expected to be initiated throughout the planning period, which is from February 15, 2023, to February 15, 2031.
Community Engagement and Outreach
The Community Development Department conducted a comprehensive community engagement and outreach strategy and has used the community input gathered to help develop the 2023 Housing Element.
Four public workshops, specifically on the topic of A ffirmatively Furthering Fair Housing, were conducted during October and November 2022. These workshops were held at various locations throughout the city, including Maramonte Park Community Center, Grogan Community Center, and the Santa Maria Public Library’s Shepard Hall. In total, approximately 150 people attended the workshops, with an additional ten attendees over Zoom available for the November 7th workshop. The City was available to provide translation and interpretation services at all events upon request. The Mixteco Indigenous Community Organizing Project (MICOP) has been a partner of the City of Santa Maria in 5 the General Plan Update, ensuring that traditionally underrepresented groups, such as Mixteco residents, are proactively sought for input in shaping the future of Santa Maria.
The Housing Element update was presented to the Planning Commission at a study session on March 3, 2022, and to the City Council as an Informational Report/Briefing on April 5, 2022. At these meetings, city staff provided an over view of the City’s demographics and housing needs. These meetings provided decision -makers and the public an opportunity to provide input early in the process.
Notifications of public outreach events were distributed to the City’s email database in English and Spanish as well as information and updates provided through the City’s Housing Element Update webpage. Direct outreach to stakeholders and organizations that provide housing and related support services in the community was also completed, as well as news releases, social media notifications, and an online Housing survey. The full listing of outreach efforts is provided in draft Element Section 1.E, with descriptions of the outreach strategy and methods, an overview of the public comments received, and copies of the City’s outreach materials, provided in Appendix E.
State Department of Housing and Community Development Review The Community Development Department provided the draft Housing Element document to HCD for their review on two separate occasions , modifying the draft each time in response to HCD comments. Prior to each submittal to HCD, the City requested public comment on the draft, including posting the updated draft Element on the City website, publishing news release s, and sending e -mails to those who signed up for Housing Element and General Plan process announcements. On October 25, 2023, HCD issued their confirmation that the draft Housing Element is in substantial compliance with state law (Attachment B) and may be certified following City Council adoption.
Alternative(s)
The City Council may direct minor modifications to be made to the draft Sixth-Cycle Housing Element document. Significant modifications, such as revisions to goals, policies, and/or programs of the draft, will necessitate an additional review of the draft by HCD. HCD would need to determine that the modified draft substantially complies with state law prior to the modified draft retu rning to the City Council for adop tion consideration.
Environmental Review
Under the requirements of the California Environmental Quality Act (CEQA), a Negative Declaration (MND) was prepared and circulated for a public review period of 30 days, starting on December 15, 2022, and conclu ding on January 17, 2023. Staff and the Planning Commission recommend that the Negative Declaration be adopted. No additional environmental review is required.
Fiscal Considerations
The costs for preparation of the Draft sixth-cycle Housing Element are covered under the approved budget for the General Plan Update, which is $1.7 million from the City’s General Fund as well as funding from the Regional Early Action Planning (REAP) and the 6 Local Early Action Planning (LEAP) grants. City Council adoption of the Housing Element, and subsequent certification by HCD, is a pre -requisite for the City to be eligible for various federal, state, and regional funding programs, including Caltrans and HCD grants.
Impact to the Community
The 2023-2031 Sixth-Cycle Housing Element will serve as the primary source of information on housing policies, programs , and resources for the next eight years, and will facilitate a housing-inclusive communit y, where existing and projected demands for housing are adequately met across all income levels.
Other Agency Review
Upon final adoption by the City Council, the final draft Housing Element becomes the official Sixth Cycle Housing Element for the City of Santa Maria. The adopted Sixth Cycle Housing Element will then be provided to HCD for their review and certification.
ATTACHMENTS
A: Draft Sixth Cycle Housing Element 2023-2031
B: HCD Letter dated October 25, 2023
C: CEQA Initial Study/ Negative Declaration