1 City Council Meeting: October 11, 2022 Santa Monica, California RESOLUTION NUMBER ______ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING AN AMENDED 6TH CYCLE (2021-2029) HOUSING ELEMENT OF THE CITY’S GENERAL PLAN
WHEREAS, State Housing Element Law, California Government Code Sections 65580 et seq., requires the City to review and update the Housing Element of its General Plan every eight years; and
WHEREAS, as the City prepares its 6th Cycle (2021-2029) Housing Element (the “6th Cycle Housing Element”), the State is experiencing a housing supply crisis, with housing demand far outstripping supply; and
WHEREAS, in 2018, California ranked 49th out of the 50 states in housing units per capita; and
WHEREAS, the housing crisis has particularly exacerbated the need for affordable homes at prices below market rates; and
WHEREAS, the housing crisis has resulted in increased poverty and homelessness, especially first-time homelessness, forced lower income residents into crowded and unsafe housing in urban areas, and forced families into lower cost new housing in greenfields at the urban-rural interface with longer commute times and a higher exposure to fire hazard; and
2 WHEREAS, 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, the City has received a Regional Housing Needs Assessment (“RHNA”) allocation for the 6th Cycle Housing Element of approximately 8,895 housing units, with approximately 70 percent allocated as affordable housing; and WHEREAS, this RHNA allocation will require the City to permit approximately 1,000 housing units annually between 2021 and 2029, 700 of which are required to be affordable housing, representing an increase of approximately five times over the City’s RHNA allocation for the 5th Cycle (2013-2021) Housing Element; and WHEREAS, in September 2020, the City commenced a public outreach process for the 6th Cycle Housing Element, which has consisted of creation of a dedicated website, presenting informational webinars, seeking input through questionnaires and surveys, forming two technical working groups, and conducting a series of study sessions with the Planning Commission, Housing Commission, Rent Control Board, and the City Council; and
WHEREAS, on or about May 24, 2021, City staff published a draft 6th Cycle Housing Element (“Draft Housing Element”) built around four primary principles: 1) housing production—providing access to increase housing production, with an emphasis on affordable housing; 2) housing stability—ensuring that existing residents are protected from displacement; 3) location—incentivizing and locating housing close to daily services and amenities like parks and schools in addition to places around the city that have historically not accommodated housing; and 4) equitable housing access—overcoming 3 historic patterns of segregation by expanding access to housing choices in high opportunity areas; and
WHEREAS, on June 2 and 3, 2021, the Planning Commission conducted a public hearing on the Draft Housing Element and made recommendations to the City Council; and
WHEREAS, on June 15, 2021, the City Council conducted a public hearing to discuss the Draft Housing Element and directed staff to transmit the Draft Housing Element to the California Department of Housing and Community Development (“HCD”) with revisions; and
WHEREAS, on July 1, 2021, City staff transmitted the Draft Housing Element, as revised by the City Council, to HCD for a 60-day review period; and WHEREAS on August 4, 2021, in accordance with Santa Monica Municipal Code Section 9.45.060(A), the Planning Commission adopted a Resolution of Intention, Resolution Number 21-006 (PCS), declaring its intention to consider recommending to the City Council that the City Council adopt the 6th Cycle (2021-2029) Housing Element of the City’s General Plan and amendments to the Land Use and Circulation of the City’s General Plan, the Bergamot Area Plan and the Downtown Specific Plan for consistency with the goals, policies and programs set forth in the Housing Element; and WHEREAS, on August 30, 2021, in accordance with Government Code Section 65585, HCD issued a letter to report on its review of the Draft Housing Element; and WHEREAS, HCD’s review concluded that the draft Housing Element addressed many statutory requirements, but that revisions would be necessary to comply with State Housing Element Law; and
4 WHEREAS, in its review letter, HCD set forth recommended revisions to the Draft Housing Element to, among other things, provide additional information and analysis of the City’s: housing needs, resources, and constraints related to fair housing; population and employment trends; household characteristics; Suitable Sites Inventory (“SSI”); zoning regulations for a variety of housing types; governmental and nongovernmental constraints on housing; special housing needs; and “at risk” housing units; and WHEREAS, HCD further recommended that the City make revisions to housing programs set forth in the Draft Housing Element to: demonstrate adequate capacity for the RHNA allocation; address, and where legally possible, remove, constraints to the maintenance, improvement and development of housing; promote and affirmatively further fair housing; and preserve assisted housing development for low-income households; and
WHEREAS, on September 8, 2021, the Planning Commission held a discussion to consider HCD’s review and recommendations and to discuss concepts that would address those recommendations; and
WHEREAS, on September 20, 2021, the Planning Commission conducted a discussion to review proposed revisions to the Draft Housing Element to address HCD’s recommendations; and
WHEREAS, on September 24, 2021, Planning Commission conducted a duly noticed public hearing, and after considering oral and written testimony, adopted a Resolution of Recommendation, Resolution Number 21-011 (PCS), recommending to the City Council that the City Council adopt the 6th Cycle Housing Element; and 5 WHEREAS, on October 12, 2021, the City Council conducted a duly noticed public hearing to consider HCD’s comments and the recommendation of the Planning Commission, and, after considering oral and written testimony, adopted Resolution Number 11371 (CCS) adopting the 6th Cycle Housing Element; and WHEREAS, on November 10, 2021, the City transmitted the adopted 6th Cycle Housing Element to HCD for review; and
WHEREAS, the Housing Element includes a variety of programs intended to achieve goals and policies related to new housing production for all income categories and the preservation of existing housing, ensuring there is equitable housing access to all neighborhoods, housing for the homeless including housing assistance and supportive services to low-income households, and eliminating housing discrimination; and WHEREAS, the Housing Element sets forth a range of goals, policies and programs, including, but not limited to, procedural changes related to streamlining the review of housing projects, updating development standards and the Affordable Housing Production Program (“AHPP”) to ensure housing projects are feasible, providing opportunities for housing in areas of the City that do not currently permit housing, incentivizing housing in areas of the City that have not historically supported housing production, amending the City’s density bonus ordinance to ensure consistency with State law and integration into the City’s land use system, and committing to the production of affordable housing on City-owned/publicly owned land; and WHEREAS, on February 8, 2022, the City received a letter from HCD determining that although the Adopted 6th Cycle Housing Element addressed “many statutory 6 requirements,” “revisions would be necessary to comply with State Housing Element Law”; and
WHEREAS, the City immediately began efforts to address HCD’s letter, including scheduling a teleconference with HCD staff on February 14, 2022 to determine the City’s required next steps in order to achieve an HCD-compliant Housing Element and conducting a Study Session with the Planning Commission on March 2, 2022; and WHEREAS, since that February 14, 2022 teleconference, the City has continued to meet with HCD on a consistent basis, including most recently on August 18, 2022, in an effort to work toward addressing HCD’s concerns to allow for the submission of a compliant Housing Element; and
WHEREAS, the City also initiated other efforts to bring the 6th Cycle Housing Element into compliance, including an April 26, 2022 study session with Council, and Study Sessions with the Planning Commission on May 11 and June 1, 2022; and WHEREAS, in consideration of the comments received in the February 8, 2022 letter, consultations with HCD, and input received during study sessions with the City Council and Planning Commission, City staff prepared draft redline revisions to the Housing Element to primarily: 1) make technical revisions; 2) address affirmatively furthering fair housing obligations; and 3) strengthen the City’s commitment to development of affordable housing on City-owned sites; and WHEREAS on June 15, 2022, the Planning Commission considered the draft redline amendments to the 6th Cycle Housing Element in response to HCD’s comments, that, among other things, made technical revisions, and proposed amendments to the element’s affirmatively furthering fair housing requirements and program related to City- 7 owned sites, made recommended revisions, and recommended that the City Council direct staff to transmit the redline revisions to HCD for review; and WHEREAS, on June 21, 2022, the City Council reviewed the draft revisions to the 6th Cycle Housing Element, made recommended revisions, and directed staff to transmit to HCD for review and comment; and
WHEREAS, on September 6, 2022, HCD issued a letter determining that the Draft Revised Housing Element will comply with State Housing Element Law once adopted, submitted to, and reviewed by, HCD; and
WHEREAS, AB 1398, which became effective on January 1, 2022, requires local governments that did not adopt a 6th Cycle Housing Element that HCD determined to be in substantial compliance with State Housing Element Law within 120 days of the statutory deadline for adoption to rezone to accommodate the local government’s RHNA for the 6th Cycle within one year of the statutory deadline; and WHEREAS, in accordance with AB 1398, the June 21, 2022 amended draft of the 6th Cycle Housing Element sets forth implementation dates for rezoning and related programs as of October 15, 2022, one-year after the City’s statutory deadline of October 15, 2021; and
WHEREAS, on June 30, 2022, SB 197 amended the Government Code to add Section 65583.4, which extends the one-year deadline for rezoning set forth in AB 1398 to three years, or October 15, 2024, for local governments that meet certain conditions, including adopting a 6th Cycle Housing Element that is compliant with State Housing Element law within one year of the statutory deadline, or October 15, 2022; and 8 WHEREAS, implementation dates for the June 21, 2022 draft amended 6th Cycle Housing Element have been updated to allow for an extension for rezoning should the City meet all conditions set forth in Government Code Section 65583.4; and WHEREAS, on September 22, 2022, Planning Commission conducted a duly noticed public hearing to consider recommending to the City Council that the City Council adopt the amended 6th Cycle Housing Element, and after considering oral and written testimony, adopted Resolution Number 220-18 (PCS) recommending that the City Council adopt the amended the 6th Cycle Housing Element; and WHEREAS, on September 26, 2022, in accordance with Government Code Section 65585(b), the City posted the final draft of the amended 6th Cycle Housing Element incorporating the Planning Commission’s recommendations for updated implementation dates on the City’s website for public review, and emailed a link to all individuals and organizations that previously requested notices relating to the City’s 6th Cycle Housing Element; and
WHEREAS, on October 11, 2022, the City Council adopted a duly noticed public hearing to consider HCD’s comments and the recommendation of the Planning Commission.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.45.080, after consideration of all oral and written testimony presented on October 11, 2022, including, but not limited to, public comments received by the City and compiled by City staff, the City Council does hereby adopt the amended 6th Cycle (2021-2029) Housing Element as 9 set forth in Exhibits A and B, attached to this Resolution and incorporated herein by reference.
SECTION 2. Pursuant to Government Code Section 65585(e), the City Council has considered the findings and recommendations set forth HCD’s letter dated September 6, 2022, determining that the draft amended Housing Element will comply with State Housing Element Law once adopted, submitted to, and reviewed by, HCD.
SECTION 3. Pursuant to Government Code Section 65583.2(g)(2), based on substantial evidence set forth in Chapter 4, Summary of Land Available for Housing, and Appendix F, Suitable Sites Inventory Report of the amended 6th Cycle Housing Element, after examining such factors as physical characteristics; existing uses; redevelopment potential (including improvements to land value ratio, ownership, and known developer interest); location and context; local knowledge; and environmental and infrastructure constraints, the City determined that the existing uses on nonvacant sites identified in the SSI to accommodate lower income housing are likely to be discontinued during the planning period, and therefore do not constitute an impediment to additional residential development during the period covered by the Housing Element.
A. Parcels with existing uses that were not likely to be discontinued during the planning period were not examined for suitability, as follows:
Parcels in the RMH (Residential Mobile Home) and OS (Open Space) Districts;
Parcels with existing historic resources;
Parcels that are under construction, or have recently completed projects, approved entitlements, or pending entitlements for commercial uses only; 10 Parcels that have unique land uses, such as Santa Monica City Hall, Los Angeles County Courthouse, Civic Auditorium, hospitals, cemetery, schools, parks, churches/religious facilities, utilities, government offices, libraries, police/fire stations, transportation infrastructure/Metro Expo Light Rail, and airport;
Parcels developed with affordable housing, condominium units, and rent control units; and
Parcels with newer buildings developed post 1980.
B. All remaining parcels (approximately 1,300) were placed into categories and examined for suitability. Parcels with existing uses were selected for the SSI based on the following factors and evidence:
1. Category 1 (Approved/Pending Project Sites): Sites for which entitlements have been issued for housing development projects or applications have been received for housing development projects; evidence that in the previous planning period, only 15 percent of approved or pending projects are withdrawn and/or have had permits expire.
2. Category 2 (Prior 5th Cycle Housing Element Sites): Evidence that property owners have expressed past or current development interest; the properties are underdeveloped below current maximum floor area ratio (“FAR”) allowed, or have single tenants. Evidence that past and current proposed housing projects all occurred on similar nonvacant sites with existing uses consisting of older buildings (at least 40 years of age) or surface parking lots. Evidence that in the past decade development in Santa Monica has trended towards new 11 residential development rather than new commercial development, and recent financial feasibility studies that concluded residential projects will be more likely to occur than commercial projects with increased development potential (i.e., greater permitted FAR and height) for housing development projects, as proposed by Program 1 J of the Housing Element. Evidence that in the previous planning period, on parcels that allowed for 100% commercial or residential projects, only 15 percent of development projects were 100% commercial
3. Category 3 (Downtown Community Plan buildout): Evidence that the sites have low improvements to land ratio (“ILR”) (less than 0.5), are developed with low-scale buildings more than 40 years of age, are developed below current maximum FAR allowed, are located in proximity to many other recent housing projects in the Downtown, and have been previously identified as high potential for redevelopment in the 2017 Downtown Community Plan. Evidence that in the past decade development in Santa Monica has trended towards new residential development rather than new commercial development, and that past and current proposed housing projects all occurred on similar nonvacant sites with existing uses consisting of older buildings (at least 40 years of age) or surface parking lots.
Evidence that in the previous planning period, on parcels that allowed for 100% commercial or residential projects, only 15 percent of development projects were 100% commercial.
4. Category 4 (City-owned Sites): Evidence that these City-owned sites do not have long-term leases with outside parties that extend beyond the 6th Cycle 12 Housing Element planning period and do not have existing uses that are non-City operated.
5. Category 5 (Parking Lot Sites): Evidence that these surface parking lots do not serve existing uses that have demonstrated longevity (e.g., uses that are more unique in a particular location such as a successful grocer in a residential neighborhood, a popular restaurant, long-standing reputable business, etc.) and that past and current proposed housing projects occurred on similar nonvacant sites with existing uses consisting of surface parking lots. Evidence that in the past decade development in Santa Monica has trended towards new residential development rather than new commercial development, and recent financial feasibility studies that concluded residential projects will be more likely to occur than commercial projects with increased development potential (i.e., greater permitted FAR and height) for housing development projects, as proposed by Program 1 J of the Housing Element. Evidence that in the previous planning period, on parcels that allowed for 100% commercial or residential projects, only 15 percent of development projects were 100% commercial
6. Category 6 (Auto Inventory Sites): Evidence that property owners of such sites have expressed past or current development interest; there is common ownership with adjacent parcels, or there are other multiple parcels located elsewhere that are also owned by the same property owner. Evidence that in the past decade development in Santa Monica has trended towards new residential development rather than new commercial development, and recent financial feasibility studies that concluded residential projects will be more likely to occur 13 than commercial projects with increased development potential (i.e., greater permitted FAR and height) for housing development projects, as proposed by Program 1 J of the Housing Element. Evidence that in the previous planning period, on parcels that allowed for 100% commercial or residential projects, only 15 percent of development projects were 100% commercial.
7. Category 7 (Recently Sold/For Sale Sites): Evidence that the sites are for sale or recently sold, and existing buildings on the sites are vacant or have upcoming expiring lease terms. Evidence that in the past decade development in Santa Monica has trended towards new residential development rather than new commercial development, and recent financial feasibility studies that concluded residential projects will be more likely to occur than commercial projects with increased development potential (i.e., greater permitted FAR and height) for housing development projects, as proposed by Program 1 J of the Housing Element. Evidence that in the previous planning period, on parcels that allowed for 100% commercial or residential projects, only 15 percent of development projects were 100% commercial
8. Categories 8, 9, and 10 (Underutilized Sites, Remaining Large Parcels, Remaining Sites with 0.5 ILR or Less): Evidence that the existing buildings on the sites are low-scale buildings and more than 40 years old, have single tenancy or minimal tenancy, there is known developer interest, or the existing use does not appear to have longevity (e.g.,uses that are more unique in a particular location such as a successful grocer in a residential neighborhood, a popular restaurant, long-standing reputable business, etc.). Evidence that in the 14 past decade development in Santa Monica has trended towards new residential development rather than new commercial development, and recent financial feasibility studies that concluded residential projects will be more likely to occur than commercial projects with increased development potential (i.e., greater permitted FAR and height) for housing development projects, as proposed by Program 1 J of the Housing Element. Evidence that in the previous planning period, on parcels that allowed for 100% commercial or residential projects, only 15 percent of development projects were 100% commercial.
SECTION 4. The City Council hereby authorizes staff to make non-substantive changes to the Housing Element as necessary to make it internally consistent, including, but not limited to, typographical errors, in conformity with the final City Council action, and approved as to form by the City Attorney. Should HCD require substantive changes to the Housing Element adopted herein, staff shall bring such changes back to City Council for review and adoption.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
15 EXHIBIT A
JUNE 21, 2022 DRAFT REVISED 6TH CYCLE (2021-2029) HOUSING ELEMENT Proposed Redline Changes to Housing Element (Chapters 1-5) Appendix A, Outreach Summary (no change)
Appendix B, Housing Needs Assessment (no change)
Appendix C, LUCE Goals and Policies (no change)
Appendix D, Housing Resources (no change)
Proposed Redline Changes to Appendix E, Housing Constraints Proposed Redline Changes to Appendix F, Report on Suitable Sites Inventory Analysis Appendix G, Review of Past Performance (no change)
Appendix H, Opportunities for Energy Conservation (no change) Appendix I, 2020 Assessment of Fair Housing (no change) 16 EXHIBIT B
AMENDMENTS TO EXHIBIT A TO REFLECT UPDATED IMPLEMENTATION
DEADLINES
September 2022 Redline Draft (changes to June 2022 draft)