A G E N D A
SPECIAL MEETING OF THE CITY COUNCIL
Tuesday, May 27, 2025 ~ 5:30 PM
City Council Chambers
211 Eighth Street
Seal Beach, California
LISA LANDAU
MAYOR
Third District
NATHAN STEELE
MAYOR PRO TEM
Fifth District
JOE KALMICK
COUNCIL MEMBER
First District
BEN WONG
COUNCIL MEMBER
Second District
PATTY SENECAL
COUNCIL MEMBER
Fourth District
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CALL TO ORDER
COUNCIL ROLL CALL
STUDY SESSION
A. California Housing Laws Update
ORAL COMMUNICATIONS
At this time members of the public may address the Council regarding items on the agenda. Pursuant to the Brown Act, the Council cannot discuss or take action on any items not on the agenda unless authorized by law. Matters not on the agenda may, at the Council' s discretion, be referred to the City Manager and placed on a future agenda.
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ADJOURNMENT
1 Presented by:
Housing Legislation Update
Seal Beach City Council
May 27, 2025
Diana Varat, City Attorney’s Office
2 Outline of Presentation
Housing Element
The HAA & “Builder’s Remedy” Projects
Streamlined / Ministerial Approval Processes • Housing in Commercial Areas • Density Bonus Law
• Duplexes, Urban Lot Splits, Small Lot Subdivisions,
Accessory Dwelling Units (“ADUs”)
State Enforcement of Housing Laws
2 3
Broad Trends in Housing Law
GOAL: To build more housing!
• Reduce Local Discretion over Housing Projects
• Increase Residential Development Capacity
• Encourage More Affordable / Denser Housing
• Streamline / Expedite Housing Approvals
• Strengthen State Enforcement
3 4
Housing Element Update
Both of the following must be completed to
receive HCD approval
• Adopt 6th Cycle Housing Element
– Draft preliminarily approved by HCD
• Complete required rezoning (Program 1b)
– Adopt Mixed Commercial / Residential
High Density Zone to allow housing in
commercial centers at 40-46 units / acre
• Anticipated adoption in Fall 2025
4 5
Housing Element – Substantial
Compliance (AB 1886)
Housing element only in compliance when
adopted and either HCD or a court so declares
Housing element compliance is determined when
“deemed complete” (per HAA definition)
• Either on date of submittal of complete preliminary
application, or, if no preliminary application, when project application determined to be complete or complete by
operation of law
5 6
Consequences of Lack of
Housing Element Certification
State Enforcement Actions & Litigation
• Fines, Attorneys’ Fees, Costs
• Loss of Local Approval Authority
Reduced Access to State Funding
Builder’s Remedy Projects
6 7
Housing Accountability Act (HAA)
7 8
Basics of the HAA
Reduces local discretion to “disapprove”
housing development projects
Two main provisions: • “Housing for very low, low-, or moderate-income households” / emergency shelters [subd. (d)] – “Builder’s Remedy Projects” • Housing development projects that comply with
applicable objective standards [subd. (j)]
8 9
Broadly Applicable HAA Provision
City cannot “disapprove” or lower the
density of a housing development project
that complies with all applicable objective
planning standards in place at the time a
preliminary application is submitted or a
formal application is deemed complete
• Unless city makes a “specific, adverse
impact” finding
9 10
“Builder’s Remedy Projects”
A “housing development project” that provides
“housing for very low, low, or moderate income
households” and meets state law requirements
Project avoids compliance with General Plan
and Zoning Code requirements for the site if:
• On or after the project is “deemed
complete”, city fails to have a substantially
compliant housing element
10 11
“Housing for Very Low, Low, or
Moderate Income Households”
• 100 % affordable for lower income
• 100 % affordable for moderate income
• Mixed-income projects with at least:
– 7 % extremely low households
– 10 % very low households – 13 % lower income households • Percentages based on DBL “base density”
• Project with ≤ 10 (base density) units on a
site smaller than one acre with minimum
density of 10 units / acre
1111
12 Maximum Density for BR Projects
“Base Density” shall be the greatest of: • 50 % above “default density” (e.g., 45 du / acre) • 3 x the greatest density allowed by GP, ZC, or state law • Density identified in housing element
BUT add 35 du / acre if: • Within ½ mile of “major transit stop” • In very low vehicle travel area • In High or Highest Resource Census Tract per “CTCAC/
HCD Opportunity Map”
12 13
Minimum Density for BR Projects
Minimum Density must be:
• The minimum density applicable to the site if
located within ½ mile of “commuter rail” or
“heavy rail” station
• Otherwise, it’s the applicable minimum
density for the site or half of the default
density, whichever is lower
13 14
What Applies to BR Projects?
Only objective, quantifiable written standards can
be applied to BR projects
• Use standards from GP designation / zoning that allow density and unit type proposed by applicant • If no such district / zone, then applicant decides BR projects get two additional “concessions”
Affordable units must have comparable numbers
of bedrooms & bathrooms to market-rate units
14 15
Avoiding the Builder’s Remedy
Maintain Housing Element Certification (6th Cycle)
• Implement Housing Element programs on time
• Submit Annual Progress Reports
• Maintain Adequate Capacity for RHNA
Obtain Housing Element Certification (7th Cycle)
• Engage consultant / begin planning process early
• Work collaboratively with HCD
• Think proactively about future capacity for housing
15 16
Density Bonus Law
17 5 % Very Low Income Households
10 % Lower Income Households
10 % Moderate Income Persons / Families (For-Sale)
100 % “Affordable” Projects (80 / 20 Split)
Senior Citizen Housing Development • New: Residential Care Facilities for the Elderly Student Housing (20 % Lower Income)
• New: Changed Parameters / Additional Benefits
Qualifying Projects
17 18
Qualifying projects entitled to receive:
• A density bonus (based on a sliding scale)
plus “stackable” density bonus;
• Specific number of “incentives / concessions”
(based on affordability);
• Waivers / reductions of development
standards (where standards would “physically
preclude” the development); and
• Reductions in parking requirements
Benefits for the Applicant
18 19
Density Bonus Calculations
(Low & High Ends of Sliding Scale)
19 Level of
Affordability
Percentage
Affordable Density Bonus
Very Low 5 % 20 %
Very Low 15 % 50 %
Low 10 % 20 %
Low 24 % 50 %
Moderate 10 % 5 %
Moderate 44 % 50 %
20 New “Stackable” Density Bonuses
(Low & High End of Sliding Scale)
20 Level of
Affordability
Additional
Percentage
Affordable
Additional
Density Bonus
Very Low 5 % 20 %
Very Low 10 % 38.75 %
Moderate 5 % 20 %
Moderate 15 % 50 %
21 Concessions / Incentives
Number of
Concessions
Required Amount of Affordable Units
Very Low Lower Moderate
1 5 % 10 % 10 %
2 10 % 17 % 20 %
3 15 % 24 % 30 %
4 16 % - 45 %
5 100 % Affordable
(at least 80 % Lower; up to 20 % Moderate)
21 22
Waivers of Development Standards
Applicant may request reduction or
waiver of any development standard that
has the effect of physically precluding a
development meeting the affordable
housing thresholds at the densities or with
the concessions or incentives permitted
by state density bonus law
22 23
Waivers - “Development Standard”
A site or construction condition
• For example, a height limitation, a setback
requirement, a floor area ratio, an onsite
open-space requirement, a minimum lot area
per unit requirement, or a parking ratio that
applies to a residential development
– pursuant to local planning and zoning
documents and regulations
• Including those adopted by the voters
23 24
Reductions in Parking Requirements
Density bonus eligible applicants can
request the following parking ratios:
– 0-1 Bedroom: 1 onsite parking space
– 2-3 Bedrooms: 1.5 onsite parking spaces
– 4+ Bedrooms: 2.5 parking spaces
No parking requirements for some
wholly affordable projects for senior
rental housing projects and special
needs populations
24 25
Density Bonus Project Example
Assume 1-acre site with base density of 30 du / acre
Project proposes 20 studios & 10 two-bedroom units
with 5 Very Low and 5 Moderate Income Units
• Allowed 100 % Density Bonus (Stackable Bonus)
– Ultimate project of 60 units with 10 affordable units • Allowed three concessions / incentives
• Waivers of development standards
• Default DBL Parking = 25 parking spaces
25 26
Housing on Commercial Sites
27 Affordable Housing and
High Roads Jobs Act of 2022 (AB 2011)
Creates a ministerial approval process for two
types of housing projects on sites where office,
retail, or parking are “principally permitted uses”:
• Wholly affordable projects
• Mixed-income housing projects along
“commercial corridors”
Development standards in state law
Labor requirements
27 28
Middle Class Housing Act
of 2022 (SB 6)
Housing projects are an allowable use on
sites where office, retail, or parking are
principally permitted uses:
• 100-percent residential project, or
• Mixed-use project (at least 50 % of square
footage dedicated to residential use)
Mandatory minimum density
No mandatory affordability requirement
28 29
Middle Class Housing Act of
2022 (SB 6)
Does not create ministerial approval process
• Projects may invoke other streamlining (e.g.,
SB 35 ministerial process), or
• Rely on processing for housing in closest zone
that allows default density
Labor requirements
29 30
AB 2243: Amendments to SB 6
and AB 2011
More projects qualify for AB 2011 and SB 6 • Allowed on site of “regional mall” up to 100 acres Some significant AB 2011 changes include: • Parking is a “principally permitted use” even if a CUP is required
• Now allowed within 500 feet of freeways (with air
filtration for future residents)
• Minimum density requirements
• Additional processing requirements / deadlines
30 31
Ministerial Approvals
31 32
Gentle Density / Missing Middle
Source: APA Planning Magazine, “5 Practical Zoning Hacks for Missing Middle Housing,” Kati Woock, March 21, 2022, photo courtesy of Opticos Design, Inc. 33 Ministerial Approvals
Duplexes / Urban Lot Splits
– Maximum 4 units
– Gov. Code §§ 66411.7, 65852.21 (SB 9 / SB 450)
ADUs / JADUs
– Maximum differs (SF v. MF lots)
– Gov. Code §§ 66310 et seq. Small Lot Subdivisions
– Maximum 10 Units
– Gov. Code §§ 66499.41, 65852.28 (SB 684 / SB 1123)
33 34
Duplexes / Urban Lot Splits
35 SB 450 Legislative Findings
Housing crisis of availability and affordability
requires a multifaceted, statewide approach: • Increase in the overall supply of housing • Develop housing affordable to all income levels
• Remove barriers to housing production
• Expand homeownership opportunities
• Expand the availability of rental housing
Applies SB 9 to charter cities (again)
35 36
SB 9 “Duplex” Projects
Must ministerially approve a housing
development with two units on one singlefamily zoned lot • Possibly results in 4 units on original lot
36 37
Duplexes: Objective Local Standards
Ok to impose objective zoning, subdivision,
and design review standards
• Except standards that physically preclude
construction of up to two units of at least 800
square feet each
New: Cannot impose standards that “do
not apply uniformly to development within
the underlying zone” • SB 9-specific standards okay if they’re “more permissive” than standards for underlying zone
37 38
SB 9 “Urban Lot Splits”
City must ministerially approve parcel maps
for urban lot splits of single-family zoned lots
that meet the following:
• No more than two parcels created
• The new parcels must be approximately
equal in size, with one parcel being no
smaller than 40% of the original parcel size
• Each parcel must be at least 1,200 sq. ft
38 39
SB 9 Urban Lot Splits
No demolition of deed-restricted or (recently)
tenant-occupied housing
Intent to occupy one of the houses on the
resulting lots for three years
No short-term rentals of any units
39 40
Processing SB 9 Applications
New: Must approve or deny within 60 days
from receiving a “complete application”
• Otherwise, application is deemed approved
• If denial, must return “full set” of written
comments with a “list of items that are
defective or deficient” and description of how
application can be remedied
40 41
ADUs and JADUs
42 Building Permit Approvals
Building Permit Only Approvals
• Subject only to the standards in state law
Single-Family Context
• Conversion of existing space / accessory
structure on a lot with a SFR into one ADU
and one JADU
• New construction of detached ADU with SFR
42 43
Building Permit Approvals
Multi-Family Context
• ADUs from converted nonlivable space
– up to 25 % of existing number of units
• Detached ADUs – Existing Multi-Family Structure
• Up to 8 detached ADUs
• But no more than existing units onsite
– Proposed Multi-Family Structure • Up to 2 detached ADUs 43 44
Processing Applications
Existing Dwellings: Approve or deny the
application to create an ADU or JADU within
60 days from the date it receives a completed
application if there is an existing dwelling
Proposed Dwellings: City may delay review for
the ADU / JADU until it approves or denies the
application to create the new single-family or
multifamily dwelling
44 45
Small Lot Subdivisions
46 Small Lot Subdivision (SB 684)
Must ministerially approve residential
subdivisions of 10 legal lots and related units
if they meet state law standards
• Cannot impose requirements for minimum
lot size, width, frontage, or depth
Approve within 60 days
Specific, adverse impact finding for denial
46 47
SB 1123: Amendments to SB 684
Single-Family Zone
Only if lot is “vacant”
Existing Lot Size must
be ≤ 1.5 acres
Resulting Lot Sizes
must be ≥ 1,200 sq. ft.
N/A for sites with
affordable housing or
recent tenantoccupied housing
Multi-Family Zone
Vacant or
Redevelopment
Existing Lot Size must
be ≤ 5 acres
Resulting Lot Sizes
must be ≥ 600 sq. ft.
47 48
Residential Developments
Average “net habitable square feet” of units ≤ 1,750
Apply objective zoning, subdivision, design
standards, but limits on local requirements: • Cannot physically preclude project at default density • Setbacks:
– No setback between units
– 4-foot rear / side yard (but none for existing)
• Parking:
– No enclosed / covered parking requirement
– One space per unit (but none near transit / car share) • FAR limits:
– At least 1.0 for 3-7 units
– At least 1.25 for 8-10 units
48 49
Residential Developments
Okay to impose height limit on developments
on SF zoned sites but must be at least the height
limit of the underlying zone
Cannot impose objective standards that:
• “Imposes any requirement that applies to a
project solely or partially on the basis that the
subdivision or housing development receives
approval” under this section
49 50
Processing Applications
Must approve or deny within 60 days from
receiving a “complete application”
• Otherwise, application is deemed approved
• If denial, must return “full set” of written
comments with a “list of items that are
defective or deficient” and description of
how application can be remedied
50 51
State Enforcement
52 Housing Element – Presumptions
(AB 2023)
Previously, there was a “rebuttable presumption of
compliance” if HCD certified a housing element • AB 2023 created a rebuttable presumption of invalidity if HCD makes such a finding
Also creates a rebuttable presumption of invalidity
in legal actions if HCD finds that a city’s action or
failure to act does not substantially comply with its
adopted housing element or housing element law
52 53
Enforcement Actions (SB 1037)
Allows additional penalties if AG or HCD enforce
housing element compliance or any law
requiring ministerial housing approval • Civil penalty of $10,000 to $50,000 per month • Cost of investigating / prosecuting action (includes attorney’s fees)
Payment only may be made from funds not
already dedicated for affordable housing
53 54
Thank you! Questions?