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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 /iRWG u 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 3 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) 4 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) //RWG 5 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 C 93 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 �.I' RWG f7 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 we 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 10 iD 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 11 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 //RWG 12 „4 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 13 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 //RWG 14 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 //RWG 15 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 16 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 17 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 M 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 0 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 20 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 21 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 22 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 23 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 24 • 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 25