HomeMy WebLinkAbout2018-05-09 - Agenda Packet Supplemental 3 - PC-HPC• To increase the suooly and affordability of housing in California
• To strengthen Planning for, and production of, housing for
people at all income levels, especially lower income households
• To create tools for local agencies to plan and encourage the
production of more dwelling units, and more affordable housing
• To reduce borders to the development of new housing
• To strengthen enforcement mechanisms to ensure local
agencies plan and approve housing to reduce the State's
housing shortage
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Many, Many Laws ...
• Housing Element Low, Gov't Code § 65583
• No Net Lass. Gov't Code § 65863 (net applicable to charter cities... yet?(
• Housing Accountability Act, Gov't Code § 65589.5
• Streamlined Housing Approval ("SB 35" (. Gov't Code § 65913.4
• Accessory Dwelling Units, Gov't Code § 65852.2
• Density Bonus Law, Gov't Code § 65915
• Inclusionary Housing, Gov't Code § 65850
• workforce Housing Opportunity Zones, Gov't Code §§ 65620 to 65625
• Housing Sustainability Districts. Gov't Code §§ 66200 to 66210
• Housing Element Annual Reports, Gov't Code § 65400
//RWG
Categories of State Housing Laws
1. Laws that require local agencies to plan for
housing production in specific ways
2. Laws that restrict local authority to approve or
deny specific project applications
3. Laws that create optional tools for cities to
encourage the production of more housing,
and more affordable housing
//RWG
Planning for Housing - Housing Elements
• Analyze local demographic trends and local housing needs
• Analyze constraints that prevent the development of housing
• Regional Housing Needs Assessment (RHNA) Allocation
• The number of units needed to meet the City's projected
household growth, at various income levels
• Current RHNA for Rancho Cucamonga (2013 - 2021)
- 848 total dwelling units
- 350 units for Lower Income Households
//RWG
2013 - 2021 RHNA
City of Rancho Cucamonga
Income Level
2014 Starting RHNA
Very Low `
209
Low
141
Moderate
158
Above Moderate
340
TOTAL
848
' "Very Low" includes "Extremely Low" Income Households
//RWG
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Housing Element - Site Inventory
• Prepare a "Site Inventory" that identifies parcels where
housing can be developed to meet RHNA allocation
List of properties showing the number of units -at each income
level -that can be accommodated on each site based on
zoning standards (i.e., allowable density)
• Maybe required to identify sites where the maximum
density is "deemed appropriate" for lower income
households - known as the "default density"
Default density` - 30 dwelling units / acre
• New site requirements for next Housing Element Update
//RWG
No Net Loss (SB 166)
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No Net Loss of Unit Capacity
• Cities must maintain, at all times during the
planning period, adequate sites to meet their
unmet share of the RHNA
■ Cities may not take any action that would
allow or cause the sites identified in its Site
Inventory to be insufficient to meet its
remaining unmet share of the City's RHNA for
lower and moderate -income households
• Government Code § 65863
//RWG
No Net Loss - When to be Concerned
• Downzoning - i.e., reducing allowed density - for
any site in the Site Inventory
■ Approving a specific project on a site included in
the Site Inventory, either:
• With fewer units than were indicated in the Site
Inventory, or
• With fewer units at the income level than were
indicated in the Site Inventory, or
• At a "lower residential density" (as defined by statute)
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No Net Loss - Maintaining Unit Capacity
• A city may reduce the density or approve development
of a parcel at a "lower residential density" only if it
makes the following findings:
Reduction consistent with General Plan and Housing
Element; and
• Remaining sites in the Site Inventory are adequate to
meet the City's RHNA share at all income levels
- Must quantity the unmet RHNA need and the remaining
capacity of sites identified in the Site Inventory to
accommodate the City's RHNA at each Income level
//RWG
No Net Loss - Duty to "Up -Zone" Other Sites
• If the remaining sites are not adequate, the City
must identify "additional, adequate, and available
sites" so there is no net loss in unit capacity!
• Rezoning must occur within 180 days
of the initial project approval
• City cannot disapprove a project simply because it
would result in the need to up -zone other sites to
comply with No Net Loss provisions
//RWG
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No Net Loss - CEQA Review
• CEQA analysis for the initial
project does not need to consider
any subsequent rezoning of other
sites that may be necessary to
comply with the no net loss
requirements
• Subsequent rezoning subject to
CEQA as a separate project
• The City must cover the cost of
any rezoning required. including
CEQA review process
//RWG
No Net Loss - Practice Tips
• Review Site Inventory and ensure that the sites identified
in the Site Inventory can accommodate the RHNA at
each income level
• Calculate the City's "unmet share of RHNA"
• Keep a log of all sites listed in the Site Inventory
• Keep a log of all housing units approved for sites that
are not included in the Inventory— by income category
• Keep track of all sites that are not included in the Site
Inventory that could be used as replacement sites
//RWC
New Focus on Housing Production
• Previously, the State required cities / counties to zone at
densities that would allow for the development of
housing to meet RHNA
With 2017 Housing Package, the State seeks to address
failure to build enough housing
Now, the State wants cities / counties to demonstrate
that they're actually producing housing to meet RHNA
at all income levels
//RWG
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Housing Accountability Act (HAA)
"The Legislature's intent in enacting this section in
1982 and in expanding its provisions since then was to
significantly increase the approval and construction
of new housing for all economic segments of
California's communities by meaningfully and
effectively curbing the capability of the local
governments to deny, reduce the density of, or
render Infeasible housing development projects. This
intent has not been fulfilled."
Government Code § 65589.5(a)(2)(K)
//RWC
HAA Applicability
HAA applies to all "housing development projects":
• Residential units only
• Mixed use developments, with at least 2/3 of the
square footage designated for residential use
• Applies to market -rate and affordable housing!
• Transitional housing or supportive housing
• Emergency shelters
//RWG
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Basic Standard under the HAA
■ If a housing development project complies with
"objective" general plan, zoning, and subdivision
standards and criteria, including design review
standards, ... the City can only lower the density
or deny the Proiect if there is "specific, adverse
impact" to public health and safety that cannot
be mitigated in any other way.
• Government Code § 65589.5(j)
//RWG
Objective v. Subjective Standards
• Density requirements
• Height limitations
• Lot coverage
• Setbacks
• FAR requirements
• Required list of materials
• Facade variation
(sometimes)
• Reflect the look and feel
of the community
• Site is not Physically
suitable for the
proposed use
• Must produce high
ua ality design
• Must be compatible with
adjacent uses
//RWG
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HAA - Letter of Inconsistency
• Significant, new burden on City staff:
To analyze the project and send written documentation
explaining if / how a proposed project does not conform
to "objective" general plan, zoning, and subdivision
standards / criteria, including design review standards
• Letter must be sent:
Within 30 days of application being deemed complete
(for projects of <_ 150 units)
Within 60 days of application being deemed complete
(for projects of > 150 units)
//RWG
HAA - Failure to Send Adequate Letter
• If the City does not provide an
adequate letter, the housing
development project shall be deemed
consistent, compliant, and in
conformity with the applicable plan,
program, policy, ordinance, standard,
requirement or other similar provision
Result -1 City can only deny, or
approve project at lower density, if
the "specific, adverse impact"
finding can be made
//RWG
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HAA - Specific, Adverse Impact
■ A significant, quantifiable,
direct, and unavoidable�s
impact, based on objective,
identified written public health
and safety standards, policies,
or conditions as they existed
on the date the application
was deemed complete.
• Very hard standard to meet!
HAA - Burden on the City
■ City findings are
evaluated based on
"preponderance of the s
evidence," not merely
"substantial evidence"
• Majority of the evidence
in the record must
support the City's
findings under the HAA
//RWG
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HAA - Who Can Sue?
• An applicant, an individual
who is a potentially eligible
resident, and a housing
organization
• Includes housing advocacy
groups, and trade / industry
groups "whose local members
are primarily engaged in the
construction or management
of housing units"
• Government Code §65599.5ikl
//RWG
HAA - Penalties
• If the City acted in bad faith, the court
shall direct the City to approve the
project and award reasonable attorney's
fees and costs to the plaintiff
• Failure to comply within 60 days
• Minimum$10,000 fine per dwelling unit
• Court can multiply by 5 -• up to $50.000 per unit!
• Money from fines must be put in a local
housing trust fund and used within 5 years
to financusing- construction of new affordable
St j
housing- otherwise. funds revert to the State
//RWG
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Complying with HAA
■ Review the General Plan, Specific Plans,
Zoning Code, and Subdivision standards to
determine which standards are "objective"
■ Consider adopting objective design
standards that apply to all projects
Ii RWG
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SB 35 - Streamlined Approval Process
• Creates a streamlined, ministerial approval process for multi-
family residential developments that an applicant can
request if the project meets certain criteria
• Substantially limits City's ability to impose parking and other
requirements on developments applying under SB 35 process
• No discretionary review may be imposed for an SB 35 eligible
project - e.g., no CUP or Site Development Review
• Only objective design review standards may apply
• Projects are statutorily exempt from CEQA review (ministerial)
//RWG
SB 35 - Eligible Projects
• Must be a multi -family residence or qualifying mixed -use
development containing at least two units
• Project must be consistent with the "objective zoning
standards and objective design review standards"
established before the application is submitted
• Developer must dedicate at least 50 % of the proposed
units for households making below 80 % of AMI
• Labor Requirements for projects of > 10 units
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No Streamlining under SB 35 if ...
With limited exceptions, SB 35
projects cannot be located in:
• Coastalzone
• High or very high fire hazard
severi ly zone
• Hazardous waste site
• Earthquake fault zone
• FEMA flood plain
• FEMA floodway
• Protected species habitat
• Protected agricultural. farmland
or wetlands
Projects cannot be subject to:
• Mobilehome Residency Low
• RV Park. Occupancy Low
• Mobilehome Parks Act
• Special Occupancy Parks Act
• Conservation easement
• Conservation plan
//RWG
SB 35 - Demolition / Eviction Restrictions
• No SB 35 streamlining if:
The project would require the demolition of any of
the following:
- Deed -restricted affordable housing;
- Rent or price controlled housing;
- Housing that was occupied by tenants within the
past 10 years; or
- A structure placed on a historic register
• The site was previously used for housing that was
occupied by tenants, but was demolished within
the 10 years prior to the project application date
//RWG
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SB 35 - Limited Review Period
• If an SB 35 application is submitted, the City must review
the application to determine if the project meets the
objective olannina standards:
Within 60 days of submittal for projects of 5 150 units, or
Within 90 days of submittal for projects of > 150 units
• If the project does not meet the standards, the City must
provide written exolanatlon within these timeframes-
otherwise, the project will be deemed to satisfy the
objective planning standards
//RWG
SB 35 - Design Standard Review
• Planning Commission or Design Review Committee may
review the project's design, but review is limited to
assessing whether the project conforms to the
"reasonable oblective design standards"
• If the City chooses to allow for design review, the review
must be completed:
• within 90 days of a project's submittal for approval
(for projects containing 5 150 units), or
• within 180 days of a project's submittal for approval
(for projects > 150 units)
//RWG
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SB 35 - Parking Requirements
• At most, one space per dwelling unit
• No parking required if:
• Located within'/ -mile of public transit;
• Within an architecturally or historically
significant district:
• Within one block of a car share vehicle; or
• in areas where street parking permits are
required but not offered to the project's
occupants
//RWG
Expiration of Project Approvals
• Approvals are generally valid for three Years, with a
possible one-year extension
• Allows extension if applicant shows significant progress
toward getting the development "construction
ready" (e.g., filing a building permit application)
• Approval valid if "vertical construction ... is in progress"
• But, if the project designates at least 50 % of the units for
households making below 80 % of AMI, and includes
public investment in housing affordability (beyond tax
credits), the project approval does not expire
//RWG
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Complying with SB 35
• Determine what areas of the City may (and may not)
be subject to SB 35 (given exclusions)
• Create a checklist for SB 35 projects
• Review zoning / design review standards to
determine whether those standards are "objective"
and may be applied to SB 35 projects
• Consider adopting or refining objective zoning and
especially, design review, standards for all projects
//RWG
Accessory Dwelling Units
• Required ministerial approval
process (Gov. Code § 65852.2)
• 2017 Legislative Changes
(AB 494 / SB 229)
• City may require a maximum of
one parking space per ADU
May not prohibit tandem parking
unless specific topographical /
safety findings
Applicable to ADUs on lots with
Proposed dwellings (not just
existing single-family dwellings) //RWG
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Density Bonus Ordinance
• Agencies must provide a density bonus to
qualifying projects for Transitional Foster Youth,
Disabled Veterans, and Homeless Persons
• New Density Bonus for Transitional Foster Youth,
Disabled Veterans, and Homeless Persons
• Confirms applicability to Mixed -Use Developments
• Clarification of requirements for replacement units
• Developer can get incentives/concessions and
waivers without actually using the density bonus
• Gov't Code § 65915 //RWG
Incentives and Concessions
• Eligible applicants are entitled to receive:
A density bonus;
• A specific number of incentives and concessions depending on
the type of housing development;
• Waivers or reductions of development standards (where the
standards would physically preclude the construction of the
development); and
• Reductions in parking ratios
• City must grant incentives and concessions, up to
the number allotted under State law, unless it can
make certain findings
//RWG
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Inclusionary Housing Ordinance
■ Cities may adopt an ordinance requiring
that new rental and for -sale residential
developments must include a percentage
of affordable units
■ Important tool for cities to actually produce
affordable units
• Gov't Code § 65850(g) (AB 1505, eff. Jan 1, 2018)
//RWG
Additional Tools to Develop Housing
• Workforce Housing Opportunity Zones (SB 540)
City may prepare a Specific Plan (and an EIR) for an area of the City that
includes parcels identified on the City's Housing Element Site inventory
• Minimum densities; affordability requirements: prevailing wages
Streamlined project approval once the WHOZ is created
Housing Sustainability Districts (AS 73)
City may establish HSDs to create regulations for housing projects in areas
located within '4-mlle of public transit pZ "highly suitable for a residential or
mixed -use" district due to existing infrastructure (or underutilized utilities),
transportation access, or location
Minimum densities: affordability requirements; prevailing wages
• Streamlined project approval once the District is created
//RWG
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Annual Housing Reports
Each city must submit a report to the Department
of Housing & Community Development, showing
progress towards meeting the local share of RHNA
Report describes progress towards programs
identified in Housing Element
• Report is due to HCD each year on April 1
Gov't Code § 65400
//RWG
New Housing Report Requirements
For the prior year, Housing Report must now include:
• The number of housing development applications received
• The number of units included in all development applications
• The number of units approved and disapproved
• List of sites rezoned because the City's share of RHNA could not
be accommodated on land identified in the Site Inventory
(listed for each income level)
• List of any additional sites that were rezoned pursuant to the
No Net Loss provisions
//RWG
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New Housing Report Req'ts (Cont.)
List of, and the number of, net new housing units (both
rental and for -sale) that have been issued a
"completed -entitlement, a building permit, or a
certificate of occupancy" during the relevant housing
element cycle, and identifying the income category
designated for each unit
• The number of applications submitted for consideration
under SB 35, as well as the total number of
developments approved, building permits issued, and
housing units constructed pursuant to the SB 35 process
//RWG
Increased Enforcement - HCD Review
• HCD shall review any city's action or failure to act that
HCD determines to be inconsistent with adopted
Housing Element or Housing Element Law
• HCD shall notify a city if HCD finds that:
• The City's housing element or an amendment to its housing
element does not substantially comply with State law;
• The City's action or failure to act is inconsistent with an adopted
housing element;
• The City has taken an action in violation of HAA, No Net Loss
provisions, Density Bonus Law, or housing discrimination laws
//RWG
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Consequences of HCD Review
• HCD may revoke a Finding
that the City's housing
element "substantially
complies" with State law
• HCD may notify the Office of
the Attorney General that the
City has violated State law
//RWG
Financial Incentives
• Building Homes and Jobs Act (SB 2)
Imposes a $75 real estate transaction fee
- For 2018 revenues, 50 % of the money will be available for local
agencies to update planning and zoning documents Ito
streamline housing production)
■ NOFA from HCD expected in Spring 2019
- For 2019 revenues, 70 %will go to local planning efforts
• Veteran's and Affordable Housing Bond Act (SB 3)
November 2018 ballot measure that would establish a $4-billion
fund for housing and veteran's assistance programs
//RWG
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• Subsidize and/or partner with affordable
housing developers to build lower -income units
■ "Up -zone" strategically to target growth in
specific areas and ensure City maintains unit
capacity (to comply with No Net Loss)
• Consider adopting inclusionary housing
requirements to ensure development of at
least some lower -income units
■ Consider reviewing City codes and adopting
objective design review standards
//RWG
• Transit -Oriented Housing?
• RHNA Allocation Process?
• More Streamlined Approval Processes?
• Accessory Dwelling Units?
• Density Bonus?
• Rent Control and Eviction Restrictions?
//RWG
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