City Council
Report
City Council Meeting: March 21, 2023
Agenda Item: 10.A
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To: Mayor and City Council
From: David Martin, Director, City Planning
Subject: Housing Element Implementation
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding that the proposed amendments to the LUCE, DCP, BAP, and Zoning Ordinance, LUCE designation map, and Zoning Districting Map, LUCE designation map, and Zoning Districting Map were analyzed as part of the 2021- 2029 6th Cycle Housing Element Environmental Impact Report (EIR) and Addendum, and no further review pursuant to the California Environmental Quality Act (CEQA);
2. Adopt a finding that the proposed extension of the Urgency Interim Zoning Ordinance are categorically exempt from the provisions of the CEQA pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exemption);
3. Adopt Resolution Amending the Text of the Land Use and Circulation Element of the General Plan for Consistency with the Goals, Policies and Programs set forth in the 6th Cycle (2021-2029) Housing Element; (Requires 5 votes to pass)
4. Adopt Resolution Amending the Text of the Bergamot Area Plan for Consistency with the Goals, Policies and Programs set forth in the 6th Cycle (2021-2029) Housing Element;
5. Adopt Resolution Amending the Text of the Downtown Community Plan for Consistency with the Goals, Policies and Program set forth in the 6th Cycle (2021-2029) Housing Element; (Requires 5 votes to pass)
6. Introduce for First Reading of an Ordinance Amending the Text of the Zoning Ordinance for Consistency with the Goals, Policies, and Programs set forth in the 6th Cycle (2021-2029) Housing Element; for Consistency with Updates to State Law Related to Housing Production and Minimum Parking Requirements; and to Make Minor Changes, Clarifications and Corrections Including Modifications to Parcel Coverage Limitations for Existing Structures in the R1 (Single-Unit) District and Modifications to the Standards for Accessory Structures;
7. Adopt Resolution Amending the General Plan Land Use Map for Consistent Designation of Identified Parcels;
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8. Introduction for First Reading of an Ordinance Amending the Official Districting Map for Consistent Designation of Identified Parcels;
9. Introduction and First Reading of an Ordinance Amending the Official Districting Map for Properties Located at 1811 Warwick and 1808 34th Avenue; and
10.Introduce and Adopt an Emergency Interim Zoning Ordinance to extend interim regulations established by Emergency Interim Zoning Ordinance Number 2633 (CCS) and amended and extended by Emergency Interim Zoning Ordinance Numbers 2645, 2692, and 2699 (CCS) to increase thresholds for review of one hundred percent affordable housing projects and certain Tier 2 housing projects subject to the Housing Accountability Act by Administrative Approval.
Summary
On October 14, 2022, the State of California’s Housing and Community Development Department (HCD) certified the City’s 6th Cycle 2021-2029 Housing Element. The certified Housing Element represents the City’s commitment to implement the Housing Element programs. Council adoption of the amendments to the Land Use and Circulation Element (“LUCE”), Bergamot Area Plan (“BAP”), Downtown Community Plan (“DCP”), and Zoning Ordinance for consistency with the certified Housing Element is necessary to ensure that the City remains in compliance with State Housing Element Law. This first phase of Housing Element implementation focuses on the following programs necessary to ensure compliance with the Housing Element that are most relevant to housing production or are required for consistency with State law that is already in effect. Under the adopted 6th Cycle Housing Element, the City committed to implementing Programs 1F, 1J, 2C and 2D no later than October 15, 2023, and committed to implementing the remaining programs listed below per their implementation deadlines. Implementation of other Housing Element programs will be forthcoming in accordance with the timelines adopted in the Housing Element.
Program Name Implementation
Deadline per
certified
Housing
Element
Streamlined Process for Housing Projects
Program 1.A (By-Right Approvals for Housing Projects) 10/15/24 Program 1.B (Streamline the Architectural Review Process) 10/15/24 Rezoning for Housing
Program 1.F (Revise Downtown Community Plan Standards) 10/15/23 3 of 11
Program 1.J (Revising Development Standards for Housing Projects) 10/15/23 Program 2.C (Update the City’s AHPP - Part 1) 10/15/23
Program 2.D (Update Density Bonus Ordinance) 10/15/23
Program 4.A (Permit Multi-Unit Housing in Non-Residential Zones where Currently Not Permitted)
10/15/24
Special Standards to Encourage Housing Production
Program 1.C (Incentivize Housing on Surface Parking Lots in Residential Zones)
10/15/24
Program 2.A (Establish a Moderate-Income Housing Zoning Overlay) 10/15/24 Program 2.E (Affordable Housing on City-owned sites) 6/30/23 and ongoing
Program 4.B (Housing on Surface Parking Lots Owned by
Community Assembly Uses),
10/15/24
Program 4.C (Incentives for Additional ADUs in R1 Zones) 10/15/24 Consistency with State Law (Regardless of Implementation Deadline, the following are required for compliance with State Law already in effect) Program 1.D (Reduce Minimum Parking Requirements for Housing Projects) and Assembly Bill 2097 (“AB 2097”)
Program 1.G (Incentivize and Facilitate the Development of ADUs) Program 4.E (Incentives for SB9 Units in R1 Zones)
Senate Bill 478 (SB 478) FARs in Multi-Unit and Mixed-Use Zones Reconciliation of LUCE/Zoning Map Inconsistencies
On February 22 and February 28, 2023 Council held study sessions, discussed key policy questions, and provided direction to staff regarding proposed amendments to the Land Use and Circulation Element, Bergamot Area Plan, Downtown Community Plan, and Zoning Ordinance. Council directed staff to:
• Return with amendments to the LUCE, BAP, DCP, and Zoning Ordinance that implement Housing Element programs as recommended by the Planning Commission;
• Submit a letter to HCD requesting technical assistance regarding upzoning of the Neighborhood Commercial (NC) Zone;
• Mitigate NC Zone concerns by revising the draft zoning code redlines to insert a limit on lot consolidation in the NC Zone; and
• Return with a proposal for timelines to process housing projects.
This report presents the proposed amendments implementing Housing Element programs noted above, as directed by the City Council for adoption. The letter to HCD 4 of 11
has been prepared and is currently under review as of publication of this report. It is expected that the letter will be submitted to HCD no later than March 24, 2023.
Background
City Council Direction on Proposed Amendments
The following table presents the key policy question discussed at the February 22 meeting, Council’s direction, and changes that were made to the proposed redlines that were published at the February 22, 2023 Council meeting.
Policy Question Council Direction Changes to
Redlines
1. For consistency with the remainder of the
city, should the definition of a housing
project in Downtown be amended to allow
up to 33% non-residential floor area
consistent with the Housing Accountability
Act?
Yes None
2. For consistency with the remainder of the
city, should the definition of a
“streamlined” housing project that is
eligible for administrative approval in
Downtown be amended to allow up to
25% non-residential floor area?
Yes None
3. Should the administrative approval
threshold for housing projects in
Downtown be changed from 90,000
square feet (sf) project size to a site size
of 1 acre, consistent with the remainder of
the city?
Yes Yes
4. For consistency with development
standards established for housing projects
outside of Downtown, should the tier
system in Downtown be eliminated for
housing projects?
Yes None
5. In light of public comments from housing
developers and the Planning Commission
expressing concern regarding increased
development/construction costs and State
law parameters (AB1505) related to
inclusionary requirements that exceed
15%, should the affordable housing
requirement for Downtown housing project
be lowered from 20% to 15% consistent
Yes None
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with the remainder of the city?
6. In addition to what is already required for
Main Street and Montana Avenue, should
ground floor commercial also be required
in the Neighborhood Commercial zones
on Pico Boulevard and Ocean Park
Boulevard?
Yes None
7. The Moderate Income Housing Overlay
(MHO) was originally applied only to halfmile from the Expo Stations. Should the MHO Overlay be expanded citywide
instead excluding R1 and OP1 zoning
districts?
Yes None
8. Should MHO Projects allow some
percentage of market rate units?
Yes None
9. Expanding on AB 2097 and for ease of
implementation, should minimum parking
requirements be eliminated for all housing
projects, alterations/additions to multi-unit
buildings, and ADUs citywide, except for
R1 zones?
Yes None
10.Should parking maximums within ½ mile of
transit and for housing projects outside of
½ mile of transit be eliminated outside of
Downtown?
Yes None
11.Should SB9 projects be incentivized
through development impact fee waivers
to include the Affordable Housing Fee,
Transportation Impact Fee, Parks &
Recreation Development Impact Fee, and
Childcare Linkage Fee?
Yes (except that
only the affordable
housing fee shall be
waived. All other
impact fees shall
continue to apply.)
Yes
In addition to the above direction regarding the key policy questions, Council further directed staff to include a lot consolidation limit for NC Zones except for parcels on the Suitable Sites Inventory (SSI) in the proposed zoning amendments in order to mitigate the impacts of upzoning the NC Zone. Staff reviewed lots sizes across the NC Zones on Main Street, Ocean Park Boulevard, Montana Avenue, and Pico Boulevard in order to understand potential lot consolidation limits. 15,000 sf is generally a minimum parcel size that would physically support housing development. As indicated below, each of the NC Zone areas under discussion have some existing parcels that are 15,000 sf and greater. As a result, staff recommends establishing a lot consolidation limit of 15,000 sf in the NC Main, Montana, Ocean Park, and Pico areas. Establishing a lot consolidation 6 of 11
limit of less than 15,000 sf would effectively eliminate almost all opportunities to consolidate NC parcels and severely constrain housing production, potentially conflicting with the certified Housing Element. The 15,000 sf limit would support the preservation of the majority of small-scale businesses in these NC areas, and also represents the site size typically needed to support housing. This approach balances existing commercial activity with ensuring that some housing opportunities remain in each commercial district.
Main Street Ocean Park Blvd Pico Blvd Montana Ave
Lot
Count %
Lot
Count %
Lot
Count %
Lot
Count %
Under 15,000sf 87 94% 39 72% 94 87% 75 90%
15,000 sf and
greater 6 6% 15 28% 14 13% 8 10%
Average Size 5,772 sf 12,436 sf 7,690 sf 8,124 sf
At the February 28, 2023, City Council study session, the Council further discussed three issues related to streamlined approvals of housing projects, streamlined design review, and special incentives for redevelopment of residentially-zoned surface parking lots. None of the motions passed. The only major Council direction that resulted from these discussions was for staff to return with an alternative proposal for processing timelines in lieu of codifying processing timelines.
Discussion
Alternative Proposal for Processing Timelines
At the February 22, 2023, study session, Council directed staff to return with a proposal for processing timelines for housing projects. Council discussed that a goal would be to create certainty for applicants in the permitting process. As a result, staff proposes the creation of administrative guidelines with processing timeline goals that would expand upon and continue timelines established by Senate Bill 330 (SB 330) that would be published on the website, similar to how the City communicates anticipated plan check (building permit) turnaround times. The anticipated processing timelines for housing projects would be as follows:
• Application submittal completeness determination – 30 days (pursuant to SB 330)
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• Code compliance review to deliver written comments after application determined complete:
o Projects with 150 units or less – 30 days (pursuant to SB 330) o Projects larger than 150 units – 60 days (pursuant to SB 330) • Subsequent turn around times to deliver written comments after receipt of revised plans from applicant:
o Projects with 150 units or less – 30 days
o Projects larger than 150 units – 60 days
• Timeline to receive final determination once project has been determined to be code compliant:
o Projects with 150 units or less – 30 days
o Projects larger than 150 units – 30 days
The above timelines represent City targets and does not commit the City to any particular action(s) including, but not limited to, approval of projects if such targets are not met. The timelines also account for formal design review by the Architectural Review Board, which must occur before project approval.
Reconciling LUCE/Zoning Map Inconsistencies
Staff has identified 40 parcels where there are inconsistencies between the LUCE and the Zoning Map, of which 6 are on the Suitable Sites Inventory and 8 of the 40 inconsistencies appear to be drafting errors. Reconciling these inconsistencies between LUCE and Zoning Map are guided by State law. SB 330 prohibits reducing intensity of land use within an existing zoning district below what was allowed under the general plan, specific plan, and zoning ordinances in effect as of January 1, 2018 [Government Code Section 66300(b)(1)(A)]. State density bonus law also requires that where the zoning ordinance is inconsistent with the density allowed under the general plan, the greater density standard shall prevail [Government Code Section 65915(o)]. 8 of 11
Map showing Parcels with LUCE/Zoning Inconsistencies
Attachment E provides a listing of the 40 parcels to be rezoned and/or redesignated and includes the redistricting maps for the LUCE and the Zoning Ordinance.
Other Clarifying Amendments
In the course of preparing proposed amendments, Staff identified areas in the Zoning Ordinance that have repeatedly been misunderstood by applicants. The proposed changes to development standards do not change the meaning or implementation of the development standards but are simply being proposed to ensure clearer understanding and reading of the language by staff and applicants. These amendments include, but are not limited to, clarification of projections into daylight plane and setbacks, nonsubstantive R1 Zone changes, and parking/loading design standards. In addition, as the redline amendments were being prepared for final adoption, staff incorporated amendments to the Zoning Ordinance adopted by the Council in October 2022 (Attachment I) related to economic recovery and made non-substantive changes for 9 of 11
clarity and to correct inconsistencies and clerical errors. Staff also made additional clarifying amendments to SMMC Chapter 9.22 (Density Bonus) for consistency with State Law updates that went into effect on January 1, 2023 as well as recent judicial guidance interpreting State Density Bonus Law.
Emergency Interim Zoning Ordinance Extension of Streamlined Approvals for Housing Projects
On April 12, 2022, Council adopted Interim Zoning Ordinance 2692 (“IZO”) extending interim procedures authorizing an administrative process with no public hearing for 100% affordable housing projects and Tier 2 housing projects compliant with the Housing Accountability Act (“HAA”) on parcels of 43,560 square feet (1 acre) or less that meet all objective general plan, zoning, and subdivision standards and criteria in effect at the time the project application is deemed complete.
Supporting housing production, particularly affordable housing, has long been a core policy focus for the City and is embedded in the City’s adopted land use plans including the 2010 Land Use and Circulation Element, 2013 Bergamot Area Plan, and 2017 Downtown Community Plan. These plans have been implemented through the 2015 Zoning Ordinance Update and subsequent amendments. The 6th Cycle (2021-2029) Housing Element was certified by the California Department of Housing and Community Development (HCD) on October 14, 2022. Program 1.A in the certified Housing Element requires that the City make permanent the provisions of the IZO. The IZO is due to expire on March 31, 2023, which would be before the effective date of Zoning Code changes implementing the Housing Element.
As a result, staff proposes to extend the IZO until June 30, 2023 to provide the time necessary for Housing Element implementation to become effective through zoning changes. With the economic challenges brought by the COVID-19 pandemic, there is even more need to ensure that affordable housing and housing production continues to be supported through a streamlined process. Within the context of California’s housing crisis and the continued urgent need to produce affordable housing, staff recommends 10 of 11
extension of the IZO to continue to support housing production while providing the time necessary to accomplish the entire Housing Element certification and initial phase of zoning changes.
Environmental Review
The proposed amendments to the LUCE, DCP, BAP, and Zoning Ordinance, LUCE designation map, and Zoning Districting Map, LUCE designation map, and Zoning Districting Map were analyzed as part of the 2021-2029 6th Cycle Housing Element Environmental Impact Report (EIR) [SCH No. 20212269242021] that was certified by Council on October 12, 2021, with an Addendum to the EIR approved on October 11, 2022. These amendments implement the programs that were described and analyzed in the 6th Cycle Housing Element EIR. Therefore, no further environmental documentation is required.
The proposed extension of the Urgency Interim Zoning Ordinance establishing application process thresholds for 100% affordable housing projects and Tier 2 housing projects on parcels of 43,560 sf or less that are compliant with the Housing Accountability Act are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed changes may have a significant effect on the environment. The recommended amendments represent procedural changes in how projects are reviewed and do not substantively affect the policy decisions regarding development standards or land use regulations made with the City Council’s adoption of the 2015 Zoning Ordinance Update. Therefore, no further environmental review under CEQA is required.
Financial Impacts and Budget Actions
Implementation of the proposed amendments are necessary to comply with the certified Housing Element. If Santa Monica takes an action that is inconsistent with its certified Housing Element and falls out of compliance with Housing Element law, the City would 11 of 11
be at risk of enforcement action from the State, up to and including judicial action, fines of at least $10,000 per month, loss of eligibility for grants and state funding programs, and loss of local control over land use decisions. The State has in recent years demonstrated its willingness to take legal action to compel cities to bring their Housing Elements into compliance.
Prepared By: Rachel Kwok, Environmental Planner
Approved Forwarded to Council
Attachments:
A. Attachment A_CDD-Reso-6th Cycle HE (LUCE) 032123
B. Attachment B_CDD-Reso-6th Cycle HE (BAP) 032123
C. Attachment C_CDD-Reso-6th Cycle HE (DCP) 032123
D. Attachment D_CDD-Ord-6th Cycle HE (ZO) 032123revised E. Attachment F_CDD-Ord-Zoning Map Amendments 032123
F. Attachment E_CDD-Reso-Map Amendments (LUCE) 032123
G. Attachment G_CDD-Ord-1811 Warwick 1808 34th Zone Changes 032123 H. Attachment H_CDD-Housing Process Thresholds 4th IZO Extension 03.21.2023 I. Attachment I_February 22, 2023 City Council Staff Report J. Attachment J_October 11, 2022 City Council Staff Report K. Written Comment
L. PowerPoint Presentation
M. Councilmember Zwick's Presentation