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Item 2 - Staff Report and Attachments 1 to 8 PREPARED BY: ERIN WALTERS AND JOCELYN SHOOPMAN Associate Planner and Associate Planner 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov MEETING DATE: 11/17/2022 ITEM NO: 2 TOWN OF LOS GATOS HOUSING ELEMENT ADVISORY BOARD REPORT DATE: November 11, 2022 TO: Housing Element Advisory Board FROM: Joel Paulson, Community Development Director SUBJECT: Discuss Anticipated Comments on the Town’s Draft Housing Element Based on Comments Other Jurisdictions Have Received From the California Department of Housing and Community Development (HCD) on Their Draft Housing Elements. BACKGROUND: On August 29, 2022, the Town released the Initial Public Review Draft of the 2023-2031 Housing Element for a 30-day public comment period which ran from August 29, 2022, to September 27, 2022. Per Assembly Bill 215 (AB 215), signed by the Governor on September 28, 2021, a 30-day public comment period of the Initial Public Review Draft Housing Element is required before the Town can submit to the California Department of Housing and Community Development (HCD) for preliminary review. On September 15, 2022, the Housing Element Advisory Board (HEAB) held a meeting to provide an opportunity for the public to provide verbal comments during the 30-day public review period. The public comment period for the Initial Public Review Draft of the Housing Element ended on September 27, 2022. Town staff and the consultants prepared responses to the public comments and made changes to the Draft Housing Element as appropriate, during the required review and response period, prior to submittal to HCD for its first preliminary review. On Friday, October 14, 2022, the Town submitted the Draft Initial Review Housing Element to HCD for preliminary review. All documents submitted to HCD are available on the Town’s Housing Element Update website at: https://engagelosgatoshousing.com/. Staff anticipates receiving a first review comment letter from HCD in mid-January 2023. The Town’s HCD reviewer has been assigned and based on the experience of surrounding jurisdictions, staff expects to meet with the HCD reviewer at the approximately 45-day mark in early-December to receive initial feedback on the Town’s Draft Housing Element. PAGE 2 OF 5 SUBJECT: Discuss Anticipated Comments on the Town’s Draft Housing Element. DATE: November 11, 2022 DISCUSSION: The purpose of this meeting is to receive information and to review and discuss the comments other jurisdictions have received from HCD on their Draft Housing Elements. In anticipation of the Town’s first review comment letter, staff has reviewed comment letters received by other jurisdictions, including, the cities of Campbell, Dublin, Menlo Park, Mountain View, Redwood City, Saratoga, and Sunnyvale. Staff has identified the following recurring topics in the comment letters from other jurisdictions which the Town may also receive: Implementation Programs 1. An Implementation Program to modify the Town’s Accessory Dwelling Unit (ADU) Ordinance for compliance with State law. For example, the Town’s current ADU ordinance requires that a new ADU in the Hillside Residential (HR) zone comply with the primary structure setbacks for the rear and side setbacks; whereas, HCD has previously provided correspondence to staff that the Town may only utilize minimum rear and side setbacks of four feet. 2. An Implementation Program to modify the Town’s Density Bonus Ordinance for compliance with Assembly Bill 1763, which became effective in January 2020. The Town’s Density Bonus Ordinance was last modified in June of 2012. 3. Provide more definitive implementation timelines and objectives, quantified where appropriate, for each Implementation Program. Site Inventory List 1. HCD has provided a comment in the City of Menlo Park comment letter that the Housing Element could utilize a minimum density and this methodology may be accepted without further analysis or methodology. The Town’s current methodology for calculating the realistic residential capacity for the Site Inventory utilizes the typical density identified in the 2040 General Plan Residential Buildout table. The following table demonstrates the existing 2020 General Plan Land Use designations, the 2040 General Plan minimum density, and the 2040 General Plan typical density. Should the Town choose to utilize a minimum density for calculating the residential capacity of the Site Inventory, additional sites would be required to be selected from either the Tier 2 or Tier 3 Site Inventory list. 2020 General Plan Designation 2040 General Plan Minimum Density (du/ac) 2040 General Plan Typical Density (du/ac) Low Density Residential 0 4 Medium Density Residential 14 18 High Density Residential 30 36 Neighborhood Commercial 10 18 Central Business District 20 26 Mixed-Use 30 36 PAGE 3 OF 5 SUBJECT: Discuss Anticipated Comments on the Town’s Draft Housing Element. DATE: November 11, 2022 DISCUSSION (continued): 2. HCD has deemed sites smaller than a half-acre as inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size and affordability were successfully developed during the prior planning period or unless the Housing Element provides other evidence to HCD that the site is adequate to accommodate lower-income housing. The Town’s Site Inventory includes three sites that are less than half an acre (Site A- 7, Site D-3, Site D-4, and Site D-7). Site A-7 (165 Los Gatos-Saratoga Road) is identified in the Site Inventory; however, it has not been identified as a site to accommodate lower-income housing. Site D-3 (16240 Burton Road), Site D-4 (16270 Burton Road), and Site D-7 (14823 Los Gatos Boulevard) have been identified as sites to accommodate lower-income housing as they are located within the North Forty Specific Plan Area. Program D of the Draft Housing Element proposes to amend the North Forty Specific Plan to increase the density to more than 30 du/ac and to increase the total number of dwelling units allowed in the Specific Plan. The HCD Housing Element Site Inventory Guidebook allows jurisdictions to use a higher density (default density of 30 du/ac) as a proxy for lower income affordability. 3. HCD has stated that the Housing Element must demonstrate that existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. The Site Inventory currently relies upon nonvacant sites to accommodate more than 50 percent of the Regional Housing Needs Allocation (RHNA) for lower-income households. Sites that are nonvacant have been included in the Site Inventory due to either a Property Owner Interest Form being submitted to the Town, staff contact regarding potential residential development, or submittal of a Conceptual Development Advisory Committee application. 4. HCD has stated that in order for Senate Bill 9 housing units to be included as a strategy to accommodate the Town’s need of above-moderate housing, additional analysis will be required to be provided. The analysis may include, but is not limited to: experience; trends; and market conditions that allow lot splits; and the likelihood of redevelopment, including whether existing uses constitute an impediment for additional residential use to support the proposed projection within the eight-year planning period. The Town has provided a SB 9 projection of 96 housing units within the eight-year planning period. 5. It is likely that HCD is aware of the 2040 General Plan referendum for the Land Use and Community Design Elements, as demonstrated in their comment letter to the City of Menlo Park regarding a voter initiative for a proposed ballot measure for single-family rezoning. In response to the referendum to repeal the Land Use and Community Design Elements of the 2040 General Plan, the Draft Housing Element included Implementation Programs BF and BG to amend the Zoning Code and General Plan for the sites that are included in the Site Inventory. The amendments would consider modification of the development standards, including, but not limited to the: density; lot coverage; floor area ratio; and height for the parcels in the Site Inventory. PAGE 4 OF 5 SUBJECT: Discuss Anticipated Comments on the Town’s Draft Housing Element. DATE: November 11, 2022 DISCUSSION (continued): Staff is awaiting HCD feedback on this approach that was included in the Draft Housing Element submittal to ensure adequate sites are available to accommodate the Town’s RHNA. Public Participation 1. HCD has commented that Housing Elements need to describe the efforts made to circulate the document to low-and moderate-income households, and organizations that represent them, and to involve such groups and persons in the update of the Housing Element throughout the process. Staff has also seen feedback requesting information on how the Housing Element has targeted outreach efforts to renters. In response, staff and the Housing Element consultant are creating an anonymous, online survey that will be available on the Town’s Housing Element Update website. Hard copies of the survey will also be available at the Community Development Department counter, the Town Library, and at the November 13, 2022, and December 11, 2022, Farmers’ Market. Staff has also reached out to West Valley Community Services and SV@Home regarding other community outreach opportunities. Builder’s Remedy Under the Housing Accountability Act, jurisdictions who do not have an adopted Housing Element that is in substantial compliance with State law by the statutory deadline (January 31, 2023, for the Bay Area) could be required to approve a residential development even if it did not meet local zoning regulations. The “builder’s remedy” has been in the Housing Accountability Act since 1990 and pertains to residential developments that have at least 20 percent low-income units or 100 percent moderate income units. In past Housing Element cycles, HCD has applied a 120-day grace period past the statutory deadline for local agencies to adopt a Housing Element. Recently, HCD informed local agencies that the 120-day grace period will not be applied in this sixth cycle Housing Element. This provision in the Housing Accountability Act has been available for quite some time and in Los Gatos, no applications have come forward during the last two Housing Element cycles when the Town missed the statutory deadlines for adoption of a Housing Element. The statutory deadline for adoption of a Housing Element for the fourth cycle (2007-2014) was June 30, 2009. The Town’s Housing Element was adopted by Town Council on March 5, 2012. The statutory deadline for adoption of a Housing Element for the fifth cycle (2015-2023) was January 31, 2015. The Town’s Housing Element was adopted by Town Council on May 5, 2015. Staff fully recognizes that the current Housing Element cycle is unlike any past cycle. It is possible that a developer could submit an application to the Town in February if the Town Council does not adopt a Housing Element that is in substantial compliance with Housing Element Law by January 31, 2023. Discussions are on-going with the Town Manager, Town Attorney, and Community Development Director on options moving forward. PAGE 5 OF 5 SUBJECT: Discuss Anticipated Comments on the Town’s Draft Housing Element. DATE: November 11, 2022 NEXT STEPS: The Town’s HCD reviewer has been assigned and based on the experience of surrounding jurisdictions, staff expects to meet with the HCD reviewer at the approximately 45-day mark in early-December to receive initial feedback on the Town’s Draft Housing Element. This early feedback will provide an opportunity to work on modifications to the Draft Housing Element. The Town Council is tentatively scheduled to meet on December 20, 2022, to discuss the initial feedback received from the Town’s HCD reviewer and provide initial direction. Once HCD’s formal comment letter is received in mid-January, staff intends to bring the Draft Housing Element, public comments and responses, and HCD comments to the Town Council for the Council to provide policy direction regarding modifications to the Housing Element in light of HCD’s comments. Based on the experience of other California communities, the process is expected to include multiple reviews by HCD. The HEAB will also participate in the revisions to the Housing Element. Once HCD determines and communicates that the Town’s Housing Element is ready for certification, the formal public hearing process will occur with the Planning Commission making a recommendation and the Town Council making the final decision on adoption of the Housing Element. PUBLIC COMMENTS: Attachment 8 includes public comments received between 11:01 a.m., Thursday, October 20, 2022, and 11:00 a.m. on Friday, November 11, 2022. Public comments are encouraged throughout the Housing Element update process and can be emailed to HEUpdate@losgatosca.gov. ATTACHMENTS: 1. City of Campbell Draft Housing Element HCD Comment Letter 2. City of Dublin Draft Housing Element HCD Comment Letter 3. City of Menlo Park Draft Housing Element HCD Comment Letter 4. City of Mountain View Draft Housing Element HCD Comment Letter 5. City of Redwood City Draft Housing Element HCD Comment Letter 6. City of Saratoga Draft Housing Element HCD Comment Letter 7. City of Sunnyvale Draft Housing Element HCD Comment Letter 8. Public Comments received between 11:01 a.m., Thursday, October 20, 2022, and 11:00 a.m. on Friday, November 11, 2022 N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\11-17-2022\Item 2 - Discuss Anticipated Comments on the Town’s Draft Housing Element\Item2.Staff Report.docx This Page Intentionally Left Blank STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916)263-2911 / FAX (916) 263-7453 www.hcd.ca.gov November 3, 2022 Rob Eastwood, Director Community Development Department City of Campbell 70 North First Street Campbell, CA 95008 Dear Rob Eastwood: RE: City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Campbell’s (City) draft housing element update received for review on August 5, 2022 along with draft revisions on October 26, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by conversations on September 20 and 27, 2022 with you; Stephen Rose, Senior Planner; and your consultants, Geoff Bradley and Sung Kwon. In addition, HCD considered comments from several stakeholders and members of the community, pursuant to Government Code section 65585, subdivision (c). The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law. For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until rezones pursuant to Government Code section 65583, subdivision (c) (1) (A) and Government Code section 65583.2, subdivision (c) are completed. ATTACHMENT 1 Rob Eastwood, Community Development Director Page 2 Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at: https://www.opr.ca.gov/planning/general-plan/guidelines.html. HCD appreciates the hard work and dedication you; Stephen Rose, Senior Planner; and your consultants, Geoff Bradley and Sung Kwon provided in preparation of the City’s housing element and looks forward to receiving the City’s adopted housing element. If you have any questions or need additional technical assistance, please contact Shawn Danino, of our staff, at shawn.danino@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager Enclosure City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 1 November 3, 2022 APPENDIX CITY OF CAMPBELL The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/building-blocks and includes the Government Code addressing State Housing Element Law and other resources. A. Review and Revision Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).) Special Housing Needs: As part of the review of programs in the past cycle, the element must provide an evaluation of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers, and persons experiencing homelessness). While the element includes some general reporting such as the City’s website including links to homeless services (p. III.A-6), it should still evaluate whether programs were effective, individually and cumulatively, and add or modify programs appropriately. B. Housing Needs, Resources, and Constraints 1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Enforcement and Outreach: While the element describes some outreach and capacity to enforce fair housing laws, it should also address compliance with existing fair housing laws as well as any past or current fair housing lawsuits, findings, settlements, judgements, or complaints. Racially Concentrated Areas of Affluence (RCAA): The element identifies that “much of the city is identified as within a Racially Concentrated Area of Affluence,” (p. H-II-63) but should also include specific analysis to better formulate appropriate programmatic response. This analysis should utilize local data and knowledge and other relevant factors. For example, the element could examine past land use practices, investments, quality of life relative to the rest of the City and region and then formulate appropriate programs to promote more inclusive communities and equitable quality of life. For City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 2 November 3, 2022 example, the City should consider additional actions (not limited to the Regional Housing Needs Allocation (RHNA)) to promote housing mobility and improve new housing opportunities throughout the City. Disparities in Access to Opportunity: The element provides information on the access to opportunity through the TCAC opportunity map but must also provide a complete local and regional analysis of patterns and trends for all components. A comprehensive analysis should include the local and regional disparities of the educational, environmental, and economic scores through local, federal, and/or state data. It should also analyze persons with disabilities as well as access to transit. Please refer to page 35 of the Affirmatively Furthering Fair Housing (AFFH) guidebook (https://www.hcd.ca.gov/community-development/affh/index.shtml#guidance) for specific factors that should be considered when analyzing access to opportunities as it pertains to educational, employment, environmental, transportation, and any other relevant factors. Disproportionate Housing Needs, including Displacement risk: The element provides some discussion on cost burdened households and overcrowding. However, the element must evaluate trends and patterns within the City, with regards to overpayment, substandard housing and persons experiencing homelessness. This analysis should utilize local data and knowledge and other relevant factors (Please see pages 24 and 25 of HCD’s Guidance at https://www.hcd.ca.gov/planning-and-community- development/affirmatively-furthering-fair-housing). For example, the element could utilize information from the City’s code enforcement to evaluate patterns of housing conditions or could contact service providers regarding patterns (areas of higher need) of persons experiencing homelessness and availability of services. Based on the outcomes of this analysis, the element should add or modify programs as appropriate. Identified Sites and AFFH: While the element provides some analysis of the identified sites and socio-economic concentrations, the element must analyze the identified sites with regards to the City’s RCAAs. In addition, the element should analyze the lack of units in higher opportunity or income areas, including census tracts in the Northwest and Southeast portion of the City, including two of the City’s census tracts labeled highest opportunity areas by the Tax Credit and Allocation Committee (Figure IV-5), which appear to have no identified sites or opportunity sites. A complete analysis should fully assess how the site inventory is expected to improve and/or exacerbate fair housing conditions, including any isolation of the RHNA. This analysis should address the location, number of units by income group, magnitude of the impact, and could consider topics such housing choice (not limited to the RHNA) in other areas of the City, existing or proposed anti-displacement policies, place-based investments, and how such strategies will improve fair housing conditions when paired with the identified sites. Based on the outcomes of this analysis, the element should add or modify programs as appropriate. Contributing Factors to Fair Housing Issues: Based on the outcomes of a complete analysis, the element should re-evaluation and prioritize contributing factors to fair housing issues. City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 3 November 3, 2022 Goals, Priorities, Metrics, Actions & Milestones: While the element includes general metrics for some programs, the element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or income areas (throughout the City), place-based strategies for community preservation and revitalization and displacement protection. The element may, for example, commit to a firm date by which it will establish development standards for smaller housing types, including bungalow courts. The element may also, for example, as discussed on the September 27, 2022 call, revise Program H-1m to make a specific commitment for establishing development standards for small units including missing middle housing types that are feasible in higher opportunity or income areas. To improve housing opportunities for persons experiencing homelessness or lower-income households employed in the City, the City may, for example, commit to identifying supportive housing projects in the City as part of Project Homekey and provide a date by which sites will be identified and by which the City will apply for funding. The City may also, for example, revise Program HE-6.D to make specific commitments to improve pedestrian safety and active mobility as a way to increase disparities in access to opportunity. Additionally, the element should commit to assessing and revising programs through a mid-cycle review. Please see HCD’s AFFH memo for more information: https://www.hcd.ca.gov/community- development/affh/docs/affh_document_final_4-27-2021.pdf#page=23. 2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).) Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).) Extremely Low-Income (ELI): While the element briefly quantifies ELI households but should specifically analyze their housing needs, including tenure, overpayment, available resources and strategies, effectiveness of past program and the magnitude or disproportionate impacts on housing needs. Then, the element should add or modify programs as appropriate. City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 4 November 3, 2022 Housing Cost: While the element includes estimated rents for residents, it utilizes American Community Survey (ACS) data. The element should supplement census data with other sources (e.g., local knowledge). Overpayment: The element must quantify and analyze the number of lower-income households overpaying by tenure (i.e., renter and owner). Persons Experiencing Homelessness: The element provides some analysis of persons experiencing homelessness and describes some facility capacity in the County ( Table II-25). However, given the magnitude of the need and the significant increase in the Point in Time Count between 2019 and 2022, the City should evaluate resources and strategies, gaps in addressing needs and formulate appropriate strategies to address the unmet need. For example, the element could identify and evaluate capacity for permanent supportive housing, or other housing types, for example Single Room Occupancies (SROs), within the City, to evaluate needs and address unmet needs through program actions. 3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Small Sites: The site inventory currently includes 64 sites that are less than 0.5 acres, including several sites with existing housing (p. H-IV-30 and Table A). Sites smaller than a half-acre in size are deemed inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size and affordability were successfully developed during the prior planning period or unless the housing element describes other evidence to HCD that the site is adequate to accommodate lower- income housing (Gov. Code, § 65583.2, subd. (c)(2)(A).). The element identifies several site groupings with potential for consolidation. However, the element must also evaluate whether those sites are suitable to accommodate housing for lower-income households and add or modify programs as appropriate. For example, the element could list past consolidations by the number of parcels, number of owners, zone, number of units, affordability and circumstances leading to consolidation and then relate those trends to the identified sites or could explain the potential for consolidation on a site-by-site basis. Based on the outcomes of the analysis, the element should modify policies and programs, including a specific commitment to ensure that maximum densities can be accommodated on all sites in the inventory. Large Sites: The inventory includes several sites over ten acres, including one 16.4- acre site with an operating commercial shopping center. While the element clarifies there is interest from the property owner, it should analyze the suitability of these sites to accommodate housing for lower-income households or rescale assumptions. The City described its strategy for “carving out” portions of some larger parcels, where some portions of parcels can be developed while maintaining other existing residential and commercial uses. However, the City should clarify the timeline and procedure by which these carveouts will occur. For example, the element should City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 5 November 3, 2022 discuss any recent developments of similar size and affordability, opportunities for parceling, phasing or site planning and generally address how housing affordable to lower-income households will occur given typical state funded developments are approximately 50 to 150 units then rescale assumptions if necessary and add or modify programs as appropriate. City-Owned Sites: The element identified two City-Owned sites to accommodate 231 housing units; however, must analyze the suitability and availability of those sites for development in the planning period, including how the sites will be available (e.g., surplus or lease), any known barriers, an anticipated schedule and other relevant factors. In addition, the element should include a program with numerical objectives that ensure compliance with the Surplus Land Act, provides incentives and actions along with a schedule to facilitate development of City-owned sites. Actions should include outreach with developers, issuing requests for proposals, incentives, fee waivers, priority processing, financial assistance and alternative actions if the sites do not become available at a reasonable point in the planning period (e.g., 2028). Suitability of Nonvacant Sites: The element must include analysis demonstrating the potential for additional development on nonvacant sites and describes existing property owner interest (p. H-IV-21). While the element mentions underutilized sites were identified based on interest in development, structure/site conditions and development on adjacent sites with similar characteristics, it must support the validity of these factors in demonstrating the potential for redevelopment. For example, the element currently lists prior uses in recent development activity but could also discuss how the recent trends support the various factors. In addition, the element could consider additional factors such existing versus allowable floor area and reflect those values in the sites inventory. Finally, the element should account for the extent existing uses impede additional residential development including market demand for the existing use and existing leases or contracts that would perpetuate the existing use or prevent additional residential development. The housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households. As a result, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) For your information, absent findings in the resolution as part of adoption based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA. Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and- community-development/housing-elements for a copy of the form and instructions. The City can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance. City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 6 November 3, 2022 Zoning for a Variety of Housing Types: • Single Room Occupancy (SRO) Units: The City categorizes SROs under the definition of rooming and boarding houses, “that are rented to between 3 to 5 persons for profit…”(p. H-II-109). The City should analyze this definition as a possible constraint. In addition, the City allows SROs in only certain zones and requires a Conditional Use Permit (CUP) in all zones allowed. The element should demonstrate zoning, development standards, including parking, and permit procedures encourage and facilitate SROs or add or modify programs as appropriate. • By-right Permanent Supportive Housing: While the element states that supportive housing is permitted in all residential zoning districts by right (p. H-II-109), supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with these requirements and include programs as appropriate. • Emergency Shelters: The element was revised to state that emergency shelters are allowed by-right in a “portion of the M-1 zone” and states that the area is “well served by transit and commercial services” (p. H-III-107). However, the element must also identify and analyze any development standards (e.g., spacing, parking, concentration requirements) and other requirements imposed on emergency shelters. Lastly, the element must describe compliance with Government Code section 65583, subdivision a)(4)(A) or include a program to comply with this requirement. For your information, pursuant to Government Code section 65583, subdivision a)(4)(A), parking requirements should be limited to allowing sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone. • Accessory Dwelling Units (ADU): HCD records indicate permitted ADUs of 5 in 2018, 8 in 2019, 54 in 2020, and 38 in 2021, figures that are inconsistent with those in the element. The element should reconcile these numbers either in the element or Annual Progress Reports (APRs) and adjust assumptions as appropriate. After a cursory review of the City’s ordinance, adopted August 16, 2022, HCD discovered some areas which are inconsistent with State ADU Law. HCD will provide a complete listing of ADU non-compliance issues under a separate cover. As a result, the element should add a program to update the City’s ADU ordinance to comply with state law. 4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 7 November 3, 2022 codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls. The analysis should specifically address requirements related to parking for small units including SROs and missing middle housing types; height limits particularly in multifamily zones; maximum lot coverages; minimum lot areas; minimum site sizes; public and private open space requirements; lot coverage and limits on allowable densities. The analysis should address any impacts on cost, supply, feasibility, timing, approval certainty and ability to achieve maximum densities and include programs to address identified constraints. Finally, pursuant to public comments, the City must make a firm commitment to reduce its parking requirements across residential zones. Processing and Permit Procedures: The element identifies that most developments are subject to a Site and Architectural Review and lists various finding, most notably “The project will aid in the harmonious development of the immediate area”. The element then mentions this is similar to other jurisdictions but should evaluate the impacts of the finding on housing supply (number of units), cost, timing, feasibility and particularly approval certainty and then add programs to address identified constraints. Persons with Disabilities: The element describes the City’s reasonable accommodation process and lists its factors for consideration (pp. H-II-141), including the potential impact on surrounding uses. The element then notes this factor can be addressed by evaluating alternatives to addressing the needs of persons with disabilities. First, a factor such as impact on surrounding uses is essentially a conditional use finding and a reasonable accommodation procedure should be a unique exception process, instead using factors such as whether the accommodation poses a fundamental alternation of zoning and land use – a far different standard that should be employed in a manner to promote access to housing opportunities for persons with disabilities. Second, the surrounding use factor appears to be employed in a manner that seeks to alter requests and fit with the surrounding areas as opposed to considering the exception request. For these reasons alone, the element should identify this finding as a constraint and modify Program H-5g (Reasonable Accommodation) to remove the constraint early in the planning period (within two years). In addition, the element indicates group homes for seven or more persons are allowed in all residential zones but subjects group homes to a conditional use permit (CUP), unlike other similar uses. The element should specifically analyze these constraints for impacts on housing supply and choices and approval certainty and objectivity for housing for persons with disabilities and include programs as appropriate. City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 8 November 3, 2022 C. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).) Programs must demonstrate that they will have a beneficial impact within the planning period. Beneficial impact means specific commitment to deliverables, measurable metrics or objectives, definitive deadlines, dates, or benchmarks for implementation. Deliverables should occur early in the planning period to ensure actual housing outcomes. Several programs and actions have timelines that could be moved earlier in the planning period to ensure a beneficial impact. Examples include Programs H-1E (Preapproved ADU Plans), H-1m (Microunit Standards), H-2c (Short term Rental Ordinance), H-3e (Reuse Site Ministerial Review), and H-5t (Employee Housing). Additionally, programs must have specific commitment to clear housing outcomes or deliverables. Several programs include actions with no description of how those actions will be implemented (e.g., “support”, “study”, “explore”, “evaluate”, etc.,). Programs should be amended, to include specific commitment to a housing related outcome. Examples include Programs H-1b (Commercial Linkage Fee), H-1c (Affordable Housing Overlay Zone), H-1k (Achieve Target Densities), H-1m (Micro-unit Standards), H-2d (Workforce Housing Ordinance), H-2e (Housing Rehabilitation Loans), H-2g (Preservation of Assisted Housing), H-3a (Parking Requirement Reduction) H-5d (Shared Housing Program), H-5o (ELI Unit Development), and H-5s (City Density Bonus). 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).) As noted in Finding B3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 9 November 3, 2022 In addition, programs targeting development of publicly owned land (e.g., Program H- 5q) should include a schedule of actions for development in the planning period consistent with the assumptions in the sites inventory, including coordination with developers, requests for proposal, facilitating entitlements, incentives, issuing building permits and compliance with the Surplus Land Act. 3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding B4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. 4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding B1, the element must include a complete assessment of fair housing. Based on the outcomes of that analysis, the element must add or modify programs. 5. The housing program shall preserve for low-income household the assisted housing developments identified pursuant to paragraph (9) of subdivision (a)... (Gov. Code, § 65583, subd. (c)(6).) Program H-2g states an objective to “participate in the preservation of at-risk units by providing financial and/or technical assistance” (p. H-IV-55). However, the program should make a specific and firm commitment to maintain the long-term affordability of these units, including a clear commitment of financial assistance or support of funding applications, coordination with qualified entities and support, education and assistance for tenants. D. Quantified Objectives Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).) While the element includes quantified objectives for new construction, it should also consider quantified objectives for rehabilitation and preservation of existing affordable City of Campbell’s 6th Cycle (2023-2031) Draft Housing Element Page 10 November 3, 2022 housing. For your information, the quantified objectives do not represent a ceiling, but rather set a target goal for the City, based on needs, resources, and constraints. E. Public Participation Local governments shall make a diligent effort to achieve public participation oof all segments of the community in the development of the Housing Element and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the City made efforts to include the public through workshops and surveys, moving forward, the City should employ additional methods for public outreach efforts in the future, particularly to include lower-income and special needs households and neighborhoods with higher concentrations of lower-income households. In addition, several comments questioned the lack of commitments around reducing parking minimums and ensuring the feasibility of missing middle housing types. The City should consider these comments and make adjustments as appropriate. The City should also analyze the feasibility of sites identified by members of the public, including the site of a former Elephant Bar and Fry’s Electronics and make adjustments as appropriate. The City could also, for example, target higher densities around the Hamilton 880 corridor. To AFFH, the element could revise Program H-3f and commit to development of a rent stabilization ordinance that limits annual rent increases or develop a city-wide portal for affordable rentals available. Finally, to address noted jobs-housing relationships, the City could also, for example, conduct targeted stakeholder interviews or establish a committee representative of lower-income households and commuters who work inside the City in future public outreach efforts. For additional information, see the Building Blocks at http://www.hcd.ca.gov/community- development/building-blocks/getting-started/public-participation.shtml. STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov August 29, 2022 Kristie Wheeler, Assistant Director Community Development Department City of Dublin 100 Civic Plaza Dublin, CA 94568 Dear Kristie Wheeler: RE: City of Dublin’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Dublin’s (City) draft housing element received for review on May 31, 2022, along with revisions received on July 25, 2022 and August 15, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on July 7, 2022 with Michael Cass, Principal Planner and consultants Bill Wiseman and Ines Galmiche. In addition, HCD considered comments from Tom Evans, South Bay YIMBY, and Building Industry Association of the Bay Area (BIA) pursuant to Government Code section 65585, subdivision (c). The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law. For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until rezones to accommodate a shortfall of sites are completed. Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly ATTACHMENT 2 Kristie Wheeler, Assistant Director Page 2 available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at: https://www.opr.ca.gov/planning/general-plan/guidelines.html. HCD appreciates the hard work and dedication the housing element team provided during the review. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Jose Ayala, of our staff, at Jose.Ayala@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager Enclosure City of Dublin’s 6th Cycle Draft Housing Element Page 1 August 29, 2022 APPENDIX CITY OF DUBLIN The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/building-blocks and includes the Government Code addressing State Housing Element Law and other resources. A. Housing Needs, Resources, and Constraints 1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Enforcement and Outreach: The element includes a general statement that the City complies with State and local fair housing laws; however, it should provide discussion to support this statement such as listing some state and federal housing laws and describing how the City complies with these laws. For more information on fair housing laws, please see HCD’s guidance (p. 28) at https://www.hcd.ca.gov/affirmatively- furthering-fair-housing. Integration and Segregation: While the element adds additional information and data, it must analyze this data for trends over time, patterns across census tracts, and coincidence with other components of the assessment of fair housing. Additionally, the element must evaluate patterns on a regional basis, comparing the City within the Tri- Valley subregion and Alameda County or bay area region as a whole. This analysis should particularly emphasize disparities in income compared to the region and include appropriate programmatic responses to encourage housing mobility and promote new affordable housing opportunities, regardless of the regional housing need allocation (RHNA). Racially Concentrated Areas of Affluence (RCAA): While the element adds information for HCD’s AFFH Data Viewer, the element must also include an analysis regarding the presence of a RCAA in the jurisdiction. The analysis should evaluate the patterns and changes over time at a local (e.g., neighborhood to neighborhood) and regional level (e.g., City to Tri-Valley and City to County). Disproportionate Housing Need: While the element adds data regarding homelessness counts over the past five years, it should include meaningful analysis from this data, including disproportionate impacts on protected characteristics (e.g., race, family, City of Dublin’s 6th Cycle Draft Housing Element Page 2 August 29, 2022 disability), patterns of need and access to opportunities, including services, and transportation. Identified Sites and Affirmatively Furthering Fair Housing (AFFH): The element includes some discussion of the number of sites by concentrations of socio-economic characteristics. However, this approach to whether identified sites affirmatively further fair housing does not account for where the sites are located. The analysis should address the number of units by all income groups, and location (e.g., neighborhood, planning area, census tract), discuss any isolation of the RHNA by income group and evaluate the magnitude of the impact on existing concentrations of socio-economic characteristics by area. The analysis should be supported by local data and knowledge and other relevant factors and address overlapping fair housing issues with other components of the assessment of fair housing (e.g., segregation and integration, concentrated areas of poverty, disparities in access to opportunity). Local Data and Knowledge: The element includes some code enforcement data and public outreach, but generally does not meet this requirement. The element must incorporate public outreach into the evaluation of fair housing. For example, the element includes public comment about how the City needs more affordable housing and then another public comment to not build apartments. These comments could be incorporated into the discussion of segregation and integration, explaining a high need for housing choices but then opposition to address that could contribute to the disparities of incomes when comparing the City to the broader region. Further, the City could utilize other sources of local data and knowledge to supplement the data and mapping including planning documents such as locally adopted ordinances, other elements of the general plan, infrastructure assessments, and mobility assessments to fully describe the impacts on fair housing patterns and trends. Other Relevant Factors: While the element adds general information regarding redlining and anti-displacement policies, the element should complement federal, state, and regional data with other relevant factors. Other relevant factors include describing historical zoning and land use practices, the presence of any CC&Rs (or lack thereof), Camp Parks, and local, state, federal investments in Dublin, such as any community improvement plans, Bay Area Rapid Transit (BART), and the expansion of Dublin east of Dougherty Blvd to fully analyze factors related to fair housing issues in the City. This analysis should discuss how other relevant factors affect the patterns and disparities in access to opportunities in the City and region. Contributing Factors: The element mentions fair housing issues and goals and priorities from the analysis on fair housing. However, these issues and goals do not appear adequate to facilitate the formulation of significant and meaningful action to AFFH. The element should re-assess and prioritize contributing factors upon completion of analysis and make revisions as appropriate. Goals, Actions, Metrics, and Milestones: The element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing City of Dublin’s 6th Cycle Draft Housing Element Page 3 August 29, 2022 factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitments, milestones, geographic targeting, and metrics and given that most of the City is considered a higher-income community, the element should focus on programs that enhance housing mobility and encourage the development of more affordable housing choices in an inclusive manner. 2. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Realistic Capacity: The element does not meet this requirement. Currently, the element (pp. D-9 and D-10) state the City calculated unit capacity on sites, there is no supportive information to justify buildout assumptions. While the element provides assumptions of buildout for sites included in the inventory, it must also describe the specific trends, factors, and other evidence that led to the assumptions. For some sites, the City appears to list the maximum density allowed in a zone multiplied by the size of the parcel. The estimate of the number of units for each site must be adjusted as necessary, based on the land use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and the current or planned availability and accessibility of sufficient water. In addition, the element must account for the likelihood of 100 percent nonresidential uses in zones that allow 100 percent nonresidential uses or are designed for nonresidential uses. The analysis should discuss what zones allow 100 percent nonresidential uses, the presence or absence of any performance standards requiring residential uses, recent trends of all development in these zones, how often 100 percent nonresidential uses occurs, and account for that likelihood in the calculation of residential capacity. Suitability of Nonvacant Sites: The element must include an analysis demonstrating the potential for redevelopment of nonvacant sites. The analysis shall consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the city’s or county’s past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites. For example, Sites 18-20 are identified with existing big box store and parking lot uses, but no analysis was provided to demonstrate whether these existing uses would impede residential development of these sites. Additionally, Sites 23 and 25 have existing residential uses on the site. The description of existing uses should be sufficiently detailed to facilitate an analysis demonstrating the potential for residential development within the planning period. The element can summarize past experiences converting City of Dublin’s 6th Cycle Draft Housing Element Page 4 August 29, 2022 existing uses to higher density residential development, include current market demand for the existing use, provide analysis of existing leases or contracts that would perpetuate the existing use or prevent additional residential development and include current information on development trends and market conditions in the City and relate those trends to the sites identified. The element could also consider indicators such as age and condition of the existing structure expressed developer interest, low improvement to land value ratio, and other factors. Accessory Dwelling Units (ADU): The element projects 248 ADUs over the planning period which well exceeds recent production (15 units per year). While the element includes Program B-7 (ADUs) with a few actions to promote ADUs, the element should reduce the number of ADUs assumed per year (e.g., 20 units per year) and utilize more recent information on permitted units to support realistic assumptions. Large Sites: While the element states large sites will only use ten acres of buildable acreage to accommodate lower-income RHNA, it must still provide analysis regarding the development of housing for lower-income households on large sites where the acreage exceeds ten acres. For example, the element should describe how development will work on site, including opportunities and timing for specific-plan development, further subdivision, parceling, site planning or other methods to facilitate appropriately sized sizes and encourage the development of housing affordable to lower-income households on the identified site within the planning period. Absent sufficient evidence that sites of equivalent size with affordability were successfully developed during the planning prior planning period or other evidence that demonstrates the suitability of these sites, the large sites are deemed inadequate to accommodate housing for lower-income households. Based on the outcomes of this analysis, the element should add or modify programs. Publicly-Owned Sites: Pursuant to Government Code section 65583, subdivision (c)(1), rezones to accommodate a shortfall must occur within three years of adoption of the housing element. While Program C.1 (Sites Inventory and RHNA Monitoring) states rezoning strategies will occur within three years of the January 31, 2023 submittal deadline, Program B.16 (Publicly-Owned Lands) states has a timeframe of three to five years. Program B.16 should include a specific commitment to facilitate development on these sites in the planning period. For example, instead of stating the City will coordinate with the Alameda County Surplus Property Authority within three to five years, the element should include the actual schedule and the actual actions with timing necessary to allow development in the planning period, including any known impediments to development (e.g., leasing, surplusing). In addition, Program C.1 or B.16 should include actions to facilitate development such as zoning, outreach with developers, incentives, fee waivers, priority processing, and financial assistance. Therefore, the City must amend Program B.16 to address the timing inconsistency and include the relevant development actions described herein, or identify additional sites to ensure available sites for the planning period. Environmental Constraints: While the element generally concludes that identified sites are not environmentally constrained, it should also discuss whether there are any other City of Dublin’s 6th Cycle Draft Housing Element Page 5 August 29, 2022 known conditions precluding development on identified sites (e.g., irregular shapes, leases, contamination, title conditions, lawsuits) and add or modify programs as appropriate. Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/community- development/housing-element/index.shtml#element for a copy of the form and instructions. The City can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance. Zoning for a Variety of Housing Types: • Emergency Shelters: The element includes a discussion of capacity and a program to modify parking requirements but it should also list all development standards and evaluate compliance with state requirements, including any constraints on the development of emergency shelters. • Transitional and Supportive Housing: Transitional and supportive housing must be permitted as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. (Gov. Code, § 65583, subd. (a)(5).) The element must demonstrate compliance with these requirements or add or revise programs that comply with the statutory requirements. 3. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Land Use Controls: While the element describes development standards and some land use controls, it must also analyze those land use controls for impacts on housing supply (number of units), costs, financial feasibility, timing, approval certainty and ability to achieve maximum densities without exceptions (e.g., conditional use permits, variance, planned development). In addition, the element concludes parking requirements are not an impediment to development; however, no analysis or supporting information was provided. The element should address parking requirements for multifamily development, particularly the covered or garaged parking requirement plus guest parking space for smaller bedroom types for impacts on cost, supply, housing choice, and financial feasibility and include programs to address identified constraints. City of Dublin’s 6th Cycle Draft Housing Element Page 6 August 29, 2022 Processing and Permit Procedures: While the element now describes that most residential development requires a site development review and lists the approval body and required findings, it must also analyze the impacts on housing supply, cost, timing and approval certainty. For example, the element notes site development reviews are subject to planning commission approval but should also discuss the typical number of hearings and whether projects often are subject to subsequent submittal. Also, some listed approval findings appear subjective and should be evaluated for impact approval certainty, costs and timing. In addition, the element generally describes a Planned Development (PD) Zoning District Ordinance process but must analyze this process for impacts on supply, cost, financial feasibility, timing and approval certainty. For example, the analysis should clearly state whether the Planned Development process is mandatory or optional, whether the burden of establishing zoning and development standards typically rests with the City or developers, particularly on identified sites, impacts of the PD Zoning Ordinance’s process to obtain a Stage 2 Development Plan, the potential for projects to be subject to a referendum under the Ordinance, any additional legislative approvals and any other requirements or mechanisms that may act as a constraint. For your information, a zone that lacks fixed development standards is not zoning and is considered a constraint on development and may not be utilized toward the RHNA unless a program is added to establish zoning and development standards pursuant to Government Code section 65583 (c)(1). In addition, the element must also describe the Ordinance’s compliance with state housing laws, including, but not limited to, SB 330’s five-hearing limit, time limits associated with the Permit Streamlining Act, and any additional constraints that might only be resolved through litigation under the Housing Accountability Act, creating an additional constraint on residential development. The element must add or modify programs to address this constraint on development. Inclusionary Housing: While the element describes the City’s inclusionary requirements, it should also describe how the City’s inclusionary requirements work with other state housing laws, such as State Density Bonus Law. Constraints on Housing for Persons with Disabilities: The element must evaluate constraints on housing for persons with disabilities, as follows: • Reasonable Accommodation: The element indicates a reasonable accommodation is subject to a zoning clearance and must meet various development standards like design compatibility, setbacks and lot coverage. The element further describes no requests have occurred in recent years and applicants may utilize the planned development process – a highly complicated and costly discretionary process that takes a year. First, the lack of requests is not an indicator that the current process works and is more an indicator the process acts as a constraint. Second, a reasonable accommodation is intended as an exception process to zoning, development standards and any other land use controls to provide access to housing for persons with disabilities. Contrarily, the City requires requests for exceptions to meet development standards. This City of Dublin’s 6th Cycle Draft Housing Element Page 7 August 29, 2022 process is a clear constraint on housing for persons with disabilities and the element must add or modify programs to establish an appropriate process. • Definition of Family: The element defines a family as “one or more persons occupying a dwelling and living as a single, nonprofit housekeeping unit, including any servants”. The element distinguished this definition from a group occupying a boarding house, community care facility, supportive or transitional housing when configured as group housing, hotel or motel, club, fraternity, or sorority house. These housing types should not be excluded from residential zones, most notably low-density zones, which can constrain the availability of housing choices for persons with disabilities. The element should analyze the definition of family and exclusion of several housing types as a potential constraint for persons with disabilities and add or modify programs as appropriate. 4. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584... (Gov. Code, § 65583, subd. (a)(6).) Approval Times: The element mentions requirements to analyze the length of time between application approval and building permits and then concludes projects are constructed in a reasonable time. However, to better inform the analysis and policies and programs, the element must identify the actual length of time between receiving approval for housing development and submittal of application for building permits and discuss any hindrances on construction. B. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).) To have a beneficial impact in the planning period and address the goals of the housing element, programs must be revised with discrete timelines (e.g., month and year), including for Program A.4 (Condominium Conversion Ordinance), Program A.5 (Preserve and Monitor Affordable Units At-Risk of Converting to Market Rate), Program B.4 (Inclusionary Zoning), Program B.5 (Commercial Linkage Fee), Program B.7 (Accessory Dwelling Units and Junior Accessory Dwelling Units), Program B.9 (Non- Vacant Adequate Sites to Satisfy By-Right Requirements of AB 1397), Program B.11 (Transitional and Supportive Housing), Program B.12 (Single-Room Occupancy), Program B.15 (Replacement Housing), Program B.16 (Publicly-Owned Lands), Program City of Dublin’s 6th Cycle Draft Housing Element Page 8 August 29, 2022 B.17 (Community Care Facilities), Program C.2 (Safety Element and Environmental Justice Policies), Program D.3 (Emergency Shelters), Program D.4 (Monitoring of Development Fees), Program E.1 (Affirmatively Further Fair Housing), Program E.2 (Equal Housing Opportunity), Program E.4 (Low-Barrier Navigation Centers), Program E.5 (Housing for Persons with Developmental Disabilities), Program E.6 (Farmworker and Employee Housing), and Program E.7 (First-Time Homebuyer Loan Program). Additionally, all programs should be evaluated to ensure meaningful and specific actions, objectives, and commitments. Programs containing unclear language (e.g., “consider”; etc.) should be amended to include specific and measurable actions. These programs include Program B.12 (Single-Room Occupancy). In addition, many program actions involve a review of existing standards, procedures, and practices, and additional actions “as necessary” or “if needed”. However, the programs should list the specific trigger for additional action, such as the amount of code enforcement cases in Program A.3 (Code Enforcement) or the pace of condominium conversions for Program A.4 (Condominium Conversion Ordinance). The element should review all programs with such language, and describe what action, or lack thereof, would trigger additional program changes. 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09... (Gov. Code, § 65583, subd. (c)(1).) As noted in Finding A2, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City must add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element must be revised as follows: Adequate Sites: The element describes a shortfall of sites (p. D-15) and indicates rezoning will occur to accommodate the RHNA. While the element includes Program C.1 (Sites Inventory and RHNA Monitoring), it must specifically commit to acreage, allowable densities and anticipated units. In addition, if necessary, to accommodate the housing needs of lower-income households, programs should specifically commit to rezoning pursuant to Government Code section 65583.2, subdivisions (h) and (i). Publicly-Owned Sites: As previously described, Program B.16 must be revised to ensure sites on publicly-owned land are made available within three years of the beginning of the planning period. This program should commit to a schedule of actions for development, such as coordinating with developers, making zoning available, issuing requests for proposals, facilitating subsequent entitlement and issue permits. City of Dublin’s 6th Cycle Draft Housing Element Page 9 August 29, 2022 The program should also include a numeric objective consistent with the assumptions in the sites inventory. Large Sites: The element must add a program to facilitate the development of lower- income housing on sites with an acreage of more than ten acres. This program should include a schedule of actions to facilitate parceling and zoning consistent with site inventory assumptions on appropriately sized sites (e.g., 1 to 10 acres). 3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings A3 and A4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. In addition, Program B.17 (Community Care Facilities) should commit to amend zoning to allow these uses in all zones allowing residential uses. 4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding A1, the element must include a complete assessment of fair housing. Based on the outcomes of that analysis, the element must add or modify programs. 5. The housing program shall preserve for low-income household the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (Gov. Code, § 65583, subd. (c)(6).) Program A.5 (Preserve and Monitor Affordable Units At-Risk of Converting to Market Rate) should be revised to commit to proactively seeking funding for units at-risk of converting to market rate uses. City of Dublin’s 6th Cycle Draft Housing Element Page 10 August 29, 2022 C. Public Participation Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the element describes the public input received through the community outreach process, it generally describes why changes are not needed instead of responding with revisions. The City should re-consider public comments and make changes to the element. STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov October 21, 2022 Deanna Chow, Assistant Director Community Development Department City of Menlo Park 701 Laurel Street Menlo Park, CA 94025 Dear Deanna Chow: RE: City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Menlo Park’s (City) draft housing element received for review on July 25, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on September 30, 2022 with yourself, Calvin Chan, Chris Turner, Tom Smith and consultants Sung Kwon, Geoff Bradley, and Asher Kohn. In addition, HCD considered comments from Housing Leadership Council of San Mateo County, Campaign for Fair Housing Elements and YIMBY Law, Misha Silin, Sheppard Mullin, YIMBY Law and Greenbelt Alliance, Kevin Burke, and Menlo Together pursuant to Government Code section 65585, subdivision (c). The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law. For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make sites identified in prior planning period(s) or accommodate the regional housing needs allocation, including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until rezones to accommodate a shortfall of sites pursuant to Government Code section 65583, subdivision (c)(1) (A) and Government Code section 65583.2, subdivision (c) are completed. ATTACHMENT 3 Deanna Chow, Assistant Director Page 2 Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at: https://www.opr.ca.gov/planning/general-plan/guidelines.html. HCD appreciates the dedication of the housing element team during the review. We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Hillary Prasad, of our staff, at Hillary.Prasad@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager Enclosure City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 1 October 21, 2022 APPENDIX CITY OF MELNO PARK The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/building-blocks and includes the Government Code addressing State Housing Element Law and other resources. A. Housing Needs, Resources, and Constraints 1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Integration and Segregation: The element reports and maps data on components of the assessment of fair housing but should evaluate patterns and trends. The element should describe what contributes to the concentration of Hispanic residents within the City, as well as what contributes to the identified segregation in the Belle Haven neighborhood. In addition, the element should describe what contributes to the concentration of female headed households north of Highway 101. The element should also describe the concentration of low-income residents east of Highway 101 as well as describe and analyze the City’s high median income in relation to the immediate surrounding region (i.e., East Palo Alto, Palo Alto, Redwood City). Racial/Ethnic Areas of Concentration of Affluence (RCAA): The element currently states that there are no RCAAs within the City. However, HCD’s fair housing data viewer indicates that the City and much of the surrounding region is considered a RCAA. The analysis should include updated data regarding the City’s RCAA designations and as noted above this should be analyzed relative to the broader region, County, and neighboring communities including the City’s eastern neighbors. For more information, please visit: https://affh-data-resources-cahcd.hub.arcgis.com. Disparities in Access to Opportunity: While the element included some data, additional information is required. The element should analyze the identified disparities in access to opportunity locally as well as include a regional analysis (City compared to the broader region). In addition, the element should describe whether there is access to jobs for protected classes and analyze the relationship between the least positive economic outcomes located in the same areas with the highest proximity to jobs. The element should also describe availability and access to transit geographically within the City and whether protected classes have access to transit. Lastly, the element must describe what contributes to the low environmental scores other than location of the highway. City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 2 October 21, 2022 Disproportionate Housing Needs including Displacement: While the element reports some data on disproportionate needs, it should analyze what contributes to the concentration of cost burdened renters and owners. In addition, the element should analyze the identified concentration of substandard housing and provide a regional analysis. The element should also describe and analyze disproportionate housing needs for persons experiencing homelessness, including impacts on protected characteristics and patterns or areas of higher need relative to access to transportation and services. Lastly, the element must also describe and analyze areas sensitive to displacement, including displacement risk due to disaster (e.g., earthquake, fire, and flood). Affirmatively Furthering Fair Housing (AFFH) and Identified Sites: While the element includes a general summary of fair housing related to the sites inventory, it must analyze how the identified sites contribute to or mitigate fair housing issues. The element must identify and analyze sites throughout the community to foster inclusive communities and affirmatively further fair housing. An analysis should address all of the income categories of identified sites with respect to location, the number of units by all income groups and how that affects the existing patterns for all components of the assessment of fair housing (e.g., segregation and integration, access to opportunity). If sites exacerbate conditions, the element should identify further program actions that will be taken to promote equitable quality of life throughout the community (e.g., anti-displacement and place-based community revitalization strategies). Goals, Actions, Metrics, and Milestones: The element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or higher income areas, place-based strategies for community preservation and revitalization and displacement protection. 2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).) Extremely Low Income (ELI): While the element includes the total number of ELI households in the City, it must include this data by tenure (i.e., renter and owner) and analyze their housing needs. 3. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Overpayment: The element must quantify and analyze the number of lower-income households overpaying by tenure (i.e., renter and owner). City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 3 October 21, 2022 Overcrowding: The element must quantify the total number of overcrowded households within the City and analyze their housing needs. Housing Costs: While the element includes estimated rents for residents, it utilizes American Community Survey (ACS) data. The element should supplement census data with other sources (e.g., local knowledge) to reflect more current market conditions. 4. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Progress in Meeting the Regional Housing Need Allocation (RHNA): As you know, the City’s RHNA may be reduced by the number of new units built since June 30, 2022, however, the element must demonstrate the affordability and availability of units in the planning period. The availability or likelihood the units will be built in the planning period should account for any barriers to development, phasing, anticipated build out horizons, market conditions and other relevant factors. This analysis should specifically address proposed projects, particularly the 1,729 units in Willow Village, rescale assumptions if appropriate and, given the magnitude of the project relative to the RHNA, should include a program to monitor progress and make adjustments as appropriate. Realistic Capacity: The element must include a methodology for calculating the realistic residential capacity on identified sites. The methodology must account for land use controls land use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities. The element includes a methodology that essentially starts with developable area then multiplies that area by maximum densities then a series of adjustments. This method can be generally consistent with statute. However, in many cases the adjustments are 100 percent or more, do not appear to discount from the maximum allowable density and conflate non-residential likelihood and nonvacant development potential in a manner that the reasoning for the assumption is indiscernible. To address this requirement, the element could utilize a minimum density and HCD shall accept that methodology without any analysis or demonstration or the element could utilize a conservative methodology that will also assist in maintaining sites throughout the planning period pursuant to Government Code section 65863. Otherwise, the element must provide adequate supporting information for the various adjustment factors, rescale assumptions as appropriate and should separate the non-residential and nonvacant adjustment factor. Adequate supporting information would include a listing of all recent developments in the City by acreage, zone, allowable density, built density and affordability and then relate that information to the assumptions utilized in the inventory. For example, if the characteristics of past development are not similar to identified sites then the assumptions should not be utilized. With respect to the non-residential adjustment factor, the element should list or evaluate all development (residential and non-residential) to determine the likelihood for 100 percent nonresidential development than account for that trend in the adjustment City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 4 October 21, 2022 factor. For example, the element could list and evaluate all recent development in the City by acreage, zone, allowable density, allowable uses, built uses, built densities and affordability. Small and Large Sites: Sites smaller than a half acre and larger than ten acres in size are deemed inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size and affordability were successfully developed during the prior planning period or unless the housing element describes other evidence to HCD that the site is adequate to accommodate lower-income housing (Gov. Code, § 65583.2, subd. (c)(2)(A).). The element lists small and large sites but also evaluate whether those sites are suitable to accommodate housing for lower income households and add or modify programs as appropriate. For example, the element could list past consolidations by the number of parcels, number of owners, zone, number of units, affordability and circumstances leading to consolidation and then relate those trends to the identified sites or could explain the potential for consolidation on a site-by-site basis. Suitability of Nonvacant Sites: The element must include an analysis demonstrating the potential for redevelopment of nonvacant sites. While the element includes a detailed description of existing uses, it must also demonstrate the potential for additional development in the planning period. In addition, the element must analyze the extent that existing uses may impede additional residential development. For example, the element includes sites identified as religious institutions, a post office, parking lots, a supermarket, and office buildings. The element should describe how residential development is likely to occur on sites including an office building built in 2013, as well as a supermarket, and an operating post office. The element can summarize past experiences converting similar existing uses to higher density residential development, include current market demand for the existing use, provide analysis of existing leases or contracts that would perpetuate the existing use or prevent additional residential development and include current information on development trends and market conditions in the City and relate those trends to the sites identified. In addition, the element should tie the feasibility of parking lot developments mentioned in nearby cities to the sites listed in the inventory. The element should also provide additional support for development on church sites including a history of development with few units affordable to lower income, especially on the sites where there is not church interest. In addition, as noted in the housing element, the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households. For your information, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period (Gov. Code, § 65583.2, subd. (g)(2).). Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the regional housing need allocation. City-Owned Sites: The element must include additional discussion on each of the City- owned sites identified to accommodate the RHNA. Specifically, the analysis should address general plan designations, allowable densities, support for residential capacity City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 5 October 21, 2022 assumptions, existing uses and any known conditions that preclude development in the planning period and the potential schedule for development. If zoning does not currently allow residential uses at appropriate densities, then the element must include programs to rezone sites pursuant to Government Code section 65583.2, subdivisions (h) and (i). In addition, the housing element must include a description of whether there are any plans to sell the property during the planning period and how the jurisdiction will comply with the Surplus Land Act Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5. Federally-Owned Sites and School Sites: The element identifies two federally-owned sites, the USGS and Veterans Affairs hospital site in addition to the Ravenswood School District site. The element should provide additional discussion on each of the sites and address general plan designations, allowable densities, support for residential capacity assumptions, existing uses, whether lot splits are needed, and any known conditions that preclude development in the planning period and the potential schedule for development. If zoning does not currently allow residential uses at appropriate densities, then the element must include programs to rezone sites pursuant to Government Code section 65583.2, subdivisions (h) and (i). The element must provide additional support and describe whether the City has contacted the owners regarding feasibility of development on these sites and whether they will be available during the planning period. Replacement Housing Requirements: The element identifies sites with existing residential uses. Absent a replacement housing policy, these sites are not adequate sites to accommodate lower-income households. The replacement housing policy has the same requirements as set forth in Government Code section 65915, subdivision (c), paragraph (3). Availability of Infrastructure: The element must demonstrate sufficient existing or planned water, sewer, and other dry utilities supply capacity, including the availability and access to distribution facilities, to accommodate the RHNA. Environmental Constraints: While the element generally describes a few environmental conditions within the City, it must describe any other known environmental constraints or conditions within the City that could impact housing development in the planning period. Zoning for a Variety of Housing Types: • Emergency Shelters: The element should describe the permit processing, development, and management standards of the Homeless Overlay that allows emergency shelters by-right and should provide an analysis of proximity to transportation and services for these sites, hazardous conditions, and any conditions in appropriate for human habitability. In particular, the element describes a limit of 16 beds per facility, which is a constraint. In addition, the element should describe the capacity of sites included in the overlay to accommodate the City’s need. Lastly, the element should describe how emergency shelter parking requirements comply with AB139/Government Code section 65583, subdivision (a)(4)(A) or include a program to comply with this requirement. City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 6 October 21, 2022 • Transitional and Supportive Housing: Transitional housing and supportive housing must be permitted as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. (Gov. Code, § 65583, subd. (c)(3).) The element must demonstrate compliance with these requirements and include programs as appropriate. • By-Right Permanent Supportive Housing: Supportive housing shall be a use by- right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with these requirements and include programs as appropriate. • Housing for Employees: The Employee Housing Act permits housing under specific provisions. Section 17021.5 requires employee housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. Section 17021.6 requires employee housing consisting of no more than 12 units or 36 beds to be permitted in the same manner as other agricultural uses in the same zone. The element must demonstrate compliance with these requirements and include programs as appropriate. • Accessory Dwelling Unit (ADU): The element indicates the City modifies its zoning code to ease barriers to the development of ADU’s. However, after a cursory review of the City’s ordinance, HCD discovered several areas which are not consistent with State ADU Law. HCD will provide a complete listing of ADU non-compliance issues under a separate cover. As a result, the element should modify Program H4-F to update the City’s ADU ordinance to comply with state law. For more information, please consult HCD’s ADU Guidebook, published in December 2020, which provides detailed information on new state requirements surrounding ADU development. 5. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls. The analysis should specifically address requirements related to parking, heights, lot coverage and limits on allowable densities. The analysis should address any impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities and include programs to address identified constraints. For example, the element should analyze the conditional use permit (CUP) requirement for multifamily development in the R4 zone where densities are allowed at 40 dwelling units per acre. In addition, the element should describe whether three stories are allowed without a use City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 7 October 21, 2022 permit in the R-3, R3A, R3-C, C-2B, and R-MU zones where height limits are 35 feet or less. The element should also analyze the land use controls including landscaping, parking, and floor area ration (FAR) requirements in the R-3 zone and whether they allow maximum build out at allowed densities. The element should also describe and analyze densities and development standards that are allowed in the Affordable Housing Overlay. In addition, the element must describe and analyze the X Conditional Development District (p. 5-14) and any related land use controls. Lastly, the element should add programs as appropriate to address any identified constraints. Voter Initiative: HCD was made aware of a proposed ballot measure in the City seeking to put any single-family rezoning to a vote, seemingly blocking affordable housing. The City must monitor and analyze the proposed ballot measure. If it passes, the element must add a program to include outreach and mitigation measures for the impact of the ballot measure on housing development throughout the planning period. The element should analyze the measure as a constraint on development based on site suitability for development and add or modify programs to address the constraint. Parking: The element must analyze the parking requirements (p. 5-16) of more than one space per studio and one-bedroom unit and more than two spaces for two or more bedroom units. In addition, the element must describe what determines the parking requirements for C-2B and R-MU zones and analyze potential constraints. Should the analysis determine the parking standards or permit procedures are a constraint on residential development, it must include a program to address or remove any identified constraints. Density Bonus: The City’s current density bonus ordinance should be reviewed for compliance with current state density bonus law and programs should be added as necessary. (Gov. Code, § 65915.). In addition, the City’s Affordable Housing Overlay states that the overlay will be an alternative to state density bonus law. This is in conflict with state law and must be revised. Fees and Exaction: The element must describe all required fees for single family and multifamily housing development, including impact fees, and analyze their impact as potential constraints on housing supply and affordability. While the element lists some standard fees in Table 5-4, it must list typical fees including, but not limited to, CUPs, zone changes, general plan amendments, variances, site plans, specific plans, affordable housing in lieu fee, lot line adjustment, and other environmental fees. In addition, the element should describe and analyze fees as a proportion to the development costs for both single family and multifamily housing. Based on the outcomes of the analysis, the element should include programs to address identified constraints. Local Processing and Permit Procedures: While the element describes the use permit procedure for single family housing, it must describe and analyze the City’s permit processing and approval procedures by zone and housing type (e.g., multifamily rental housing, mobilehomes, housing for agricultural employees, supportive housing). The analysis must evaluate the processing and permit procedures’ impacts as potential constraints on housing supply and affordability. For example, the analysis should consider City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 8 October 21, 2022 processing and approval procedures and time for typical single- and multi-family developments, including type of permit, level of review, approval findings and any discretionary approval procedures. The element should also describe and analyze the process and approval for a CUP and architectural control review. Lastly, the element should analyze the total processing time for both single family and multifamily developments and add a program as needed. Design Review: The element must describe and analyze the design review guidelines and process, including approval procedures and decision-making criteria, for their impact as potential constraints on housing supply and affordability. For example, the analysis could describe required findings and discuss whether objective standards and guidelines improve development certainty and mitigate cost impacts. The element must demonstrate this process is not a constraint or it must include a program to address this permitting requirement, as appropriate. Streamlining Provisions: The element must clarify whether the City has procedures in place consistent with streamlining procedures pursuant to Government Code section 65913.4 and include programs as appropriate. Codes and Enforcement: The element must describe the City’s building and zoning code enforcement processes and procedures, including any local amendments to the building code, and analyze their impact as potential constraints on housing supply and affordability. Constraints on Housing for Persons with Disabilities: The element must include an analysis of zoning, development standards, building codes, and process and permit procedures as potential constraints on housing for persons with disabilities. For example, the analysis must describe any zoning code definitions of family and any spacing or concentration requirements for housing for persons with disabilities. While the element describes the City’s definition of family, it should analyze the requirement of “a common housekeeping management plan based on an internally structured relationship providing organization and stability”, whether this is a potential constraint on housing for persons with disabilities and add or modify programs as appropriate. In addition, the element must describe the findings and approval procedure for the City’s Reasonable Accommodation procedure. Lastly, the element must describe and analyze how group homes for six or fewer and seven or more are allowed within the City and add programs as appropriate. For your information, zoning should simply implement a barrier-free definition of family instead of subjecting, potentially persons with disabilities, to special regulations such as the number of persons, population types and licenses. These housing types should not be excluded from residential zones, most notably low-density zones, which can constrain the availability of housing choices for persons with disabilities. Requiring these housing types to obtain a special use or CUP could potentially subject housing for persons with disabilities to higher discretionary exceptions processes and standards where an applicant must, for example, demonstrate compatibility with the neighborhood, unlike other residential uses. Zoning Fees and Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning and development standards, inclusionary City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 9 October 21, 2022 requirements, and fees for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1(a)(1). 6. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584... (Gov. Code, § 65583, subd. (a)(6).) Developed Densities and Permit Times: The element must be revised to include analysis of requests to develop housing at densities below those anticipated, and the length of time between receiving approval for a housing development and submittal of an application for building permits that potentially hinder the construction of a locality’s share of the regional housing need. 7. Analyze existing assisted housing developments that are eligible to change to non-low- income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of use restrictions. (Gov. Code, § 65583, subd. (a)(9) through 65583(a)(9)(D).). While the element includes Table 3-9 listing at-risk properties within the next 10 years, it must provide additional information on the expiration date on projects listed “n/a” and “beyond 2025” to help determine whether these properties are eligible to change to non- low-income housing uses during the next ten years. In addition, the element must identify public and private nonprofit corporations known to the City to have the legal and managerial capacity to acquire and manage at-risk units, as well as identify federal, state and local financing and subsidy programs. B. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).) To address the program requirements of Gov. Code section 65583, subd. (c)(1-6), and to facilitate implementation, programs should include: (1) a description of the City’s specific role in implementation; (2) definitive implementation timelines; (3) objectives, quantified where appropriate; and (4) identification of responsible agencies and officials. Programs to be revised include the following: City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 10 October 21, 2022 • Program H2.C (Assist in Implementing Housing Rehabilitation Programs): The program should include proactive outreach as well as specify how often sponsors and the City will apply for funding. • Program H2.D (Accessory Dwelling Unit Amnesty Program): The program should include proactive outreach to owners. • Program H2.E (Anti-Displacement Strategy): The program should include outreach to owners and organizations in the identified neighborhoods. It should also define which neighborhoods will be the focus. Lastly, the program should include timing for implementing the actions that result from the new programs identified. • Program H3.E (Continue Support for Countywide Homeless Programs): The program should describe what the City is doing to implement the results of the check-in meetings. The program should also include timing of implementing the resulting actions. • Program H3.F (Work with the U.S. Department of Veterans Affairs on Homeless Issues): This program should include specific timing to implement the potential programs identified. • Program H3.H (Inclusionary Accessible Units): This program should describe what the City will do to encourage the units and whether incentives will be provided. • Program H3.L (Large Units): This program should include proactive outreach to developers. • Program H5.B (Undertake Community Outreach When Implementing Housing Element Programs): This program should clarify how often outreach will occur throughout the planning period. • Program H5.D (Address Rent Conflicts): This program should describe whether the progress is in place or include timing for implementation. The program should also include proactive outreach. • Program H5.F (First-Time Homebuyer Program): This program should be revised to include proactive outreach. In addition, the program should include specific implementation timing. • Program H7.A (Create Residential Design Standards): This program includes timing to start implementation two years after adoption but should also specify when the actions will be completed. 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).) As noted in Finding A4, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 11 October 21, 2022 sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows: Shortfall of Adequate Sites: if the element does not identify adequate sites to accommodate the regional housing need for lower-income households, it must include a program(s) to identify sites with appropriate zoning to accommodate the regional housing need within the planning period. The program should identify the shortfall by income group, acreage, allowable densities, appropriate development standards and meet all by right requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i), including but not limited to permitting multifamily uses by-right for developments in which 20 percent or more of the units are affordable to lower income households. The element must clarify whether programs 4H.I (Create New Opportunities for Mixed-Use Development), 4H.J (Increase Residential Density), 4.HK (Maximize Development Proposals), and 4H.L (Modify El Camino Real/Downtown Specific Plan) are needed to meet the City’s RHNA, and if so, address the requirements above. In addition, program 4H.L should include specific commitment to the action, beyond considering implementation. Program H4.G (Consider City-Owned Land for Housing): This program should commit to comply with surplus lands requirements for City owned sites. In addition, the program should describe when the sites will be offered, when an RFP will be issued during the planning period and include a numerical objective consistent with assumptions in the sites inventory. 3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings A5 and A6, the element requires a complete analysis of potential governmental and non-governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. In addition, the element should be revised as follows: Program H4.E (Ministerial Review of 100 Percent Affordable Housing): This program should clarify whether creating objective design standards are included within this program. Proactive outreach should also be included throughout the planning period. Program H4.M (Update Parking Requirements and Design Standards): The program should clarify what parking requirements will be revised and ensure updates will result in addressing constraints on development. 4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 12 October 21, 2022 marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding B1, the element must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics, and milestones as appropriate and must address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place- based strategies for community preservation and revitalization and displacement protection. In addition, Program H5.C (Provide Multilingual Information on Housing Programs) should clarify whether the multilingual information is currently available or whether they will need to be translated. If translation needs to occur, the program should include timing related to the action. 5. The housing program shall preserve for low-income household the assisted housing developments identified pursuant to paragraph (9) of subdivision (a)... (Gov. Code, § 65583, subd. (c)(6).) Program H2.A (Adopt Ordinance for “At-Risk” Units): While this program commits to actions for at-risk properties, it should also include a commitment to reach out to owners to ensure compliance with state preservation notice law (Gov. Code Sections 65863.10, 65863.11, and 65863.13). C. Quantified Objectives Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).) The element must include quantified objectives to establish an estimate of housing units by income category that can be constructed, rehabilitated, and conserved over the planning period. While the element includes these objectives by income group for very low-, low-, moderate- and above-moderate income, the element must also include objectives for extremely low-income households. In addition, while the element includes these objectives for construction, it must also include estimates for rehabilitation and conservation/preservation. City of Menlo Park’s 6th Cycle (2023-2031) Draft Housing Element Page 13 October 21, 2022 D. Public Participation Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the element includes a summary of public participation including outreach to the community, it must also describe how comments from public participation were considered and incorporated into the element. This Page Intentionally Left Blank STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov September 29, 2021 Aarti Shrivastava, Director Community Development Department City of Mountain View 500 Castro Street, PO Box 7540 Mountain View, CA 94039 Dear Aarti Shrivastava: RE: City of Mountain View’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Mountain View’s (City) draft housing element received for review on July 1, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on September 13, 2022 with yourself, Ellen Yau, Senior Planner, Erica Anderson, Advanced Planning Manager, Wayne Chen, Assistant Community Development Director, Micaela Hellman-Tincher, Housing Neighborhood Services Manager, Beverly Choi, Community Planning Program Manager, Grace Nelson, Environmental Intern, and BAE Consultant Stephanie Hagar. In addition, HCD considered comments from Liwen Chen, League of Women Voters Los Altos-Mountain View area, Mountain View YIMBY, Deniece Smith, the Mountain View Chamber of Commerce & Foundation, SV@Home, James Kuszmaul, Greenbelt Alliance, Salim Damerdji, TransForm, and Kevin Ma pursuant to Government Code section 65585, subdivision (c). HCD also received comments from Mountain View Mobile Home Alliance, Susan Morales, and Anna Marie Morales on September 28, 2022. However, HCD was unable to fully examine the information and consider the comments as part of this review. Consequently, HCD will retain the comments for full consideration in the next review of the housing element The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). In particular, the element must clarify its use and definition of “pending projects” in the sites inventory, and provide further analysis to demonstrate its local density bonus requirements are not in violation of State Law. The enclosed Appendix describes these and other revisions needed to comply with State Housing Element Law. For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the ATTACHMENT 4 Aarti Shrivastava, Director Page 2 statutory deadline (January 31, 2023), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until rezones to accommodate a shortfall of sites pursuant to Government Code section 65583, subdivision (c), paragraph (1), subparagraph (A) and Government Code section 65583.2, subdivision (c) are completed. Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City meets housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at: https://www.opr.ca.gov/planning/general-plan/guidelines.html. Aarti Shrivastava, Director Page 3 HCD appreciates the hard work of the City’s entire housing element team during the course of our review. We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Reid Miller, of our staff, at Reid.Miller@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager Enclosure Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 1 September 29, 2022 APPENDIX CITY OF MOUNTAIN VIEW The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/building-blocks and includes the Government Code addressing State Housing Element Law and other resources. A. Review and Revision Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).) As part of the evaluation of programs in the past cycle, the element must also provide an explanation of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers and persons experiencing homelessness). Programs should be revised as appropriate to reflect the results of this evaluation. B. Housing Needs, Resources, and Constraints 1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction (Gov. Code, § 65583, subd. (c)(10)(A)) Enforcement and Outreach: The element must state whether or not there were any judgements, lawsuits, or enforcement actions against the City as a result of fair housing complaints. The element must also provide a clear statement that the City complies with all existing State and Federal fair housing laws and regulations. Integration and Segregation: While the element provided most of the necessary data and analysis for integration and segregation patterns in the City in the local context, it must discuss and analyze data for trends over time and patterns across census tracts for familial status, income, and persons with disabilities. Additionally, it must evaluate these patterns at a regional basis, comparing the City to the region. Racial/Ethnic Areas of Concentration of Affluence (RCAA): The element correctly states on pg. 156 that a RCAA does not exist within the City. However, the City is predominantly Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 2 September 29, 2022 a high resource category according to TCAC/HCD Opportunity Maps and higher income, with areas of concentrated higher incomes being predominantly white. These patterns are similar to the surrounding region, but the element should include specific analysis of the City compared to the region and should formulate policies and programs to promote an inclusive community. For example, the City should consider additional actions (not limited to the RHNA) to promote housing mobility and improve new housing opportunities throughout the City. This is particularly important since the City did not permit adequate housing affordable to lower income households in the prior planning period. Disparities in Access to Opportunity: While the element provides information on the access to opportunity through the TCAC opportunity maps and provides a complete local and regional analysis of patterns and trends for most components of the affirmatively furthering fair housing (AFFH) analysis, HCD has received public comments concerning racial disparities in access to opportunities in education in the City. The element should provide a comprehensive analysis of local and regional disparities of the educational scores through local, federal, and/or state data. Additionally, the element should provide additional local analysis related to access to opportunity in relation to a healthy environment. Please refer to page 35 of the AFFH guidebook (link: https://www.hcd.ca.gov/community-development/affh/index.shtml#guidance) for specific factors that should be considered when analyzing access to opportunities as it pertains to education, and any factors that are unique to Mountain View. Disproportionate Housing Needs including Displacement Risks: While the element includes some local data on cost burdened households (overpayment), the element must evaluate regional trends and patterns for overpayment. In addition, the element briefly and generically mentions displacement and homelessness in other areas of the housing element, it must still provide data, analysis, and conclusions on displacement risk and homelessness in the AFFH section. Site Inventory: While the element includes some general discussion and conclusions beginning on pg. 273 that identified sites for lower-income households are not concentrated in any areas of the City, the element should include analysis to support these conclusions, including the number of units per site by income group for each of the AFFH categories relative to the existing patterns (number of households), impacts on patterns of disproportionate housing needs (e.g., overpayment, overcrowding, displacement) and expanding on the reasoning of the distribution of the regional housing need allocation (RHNA) for lower income households. Further, if the inventory does isolate the RHNA for lower income households in central areas, the element must have commensurate programs with place-based strategies for community revitalization and new opportunities in higher opportunity areas (beyond RHNA) to result in an equitable quality of life and affirmatively further fair housing throughout the City. Contributing Factors: The element mentions four main fair housing issues and connects them to goals and priorities. However, these issues and goals do not appear to be connected to programs adequate to facilitate the formulation of meaningful action to overcome these contributing factors. The element should re-assess contributing factors upon completion of analysis and make revisions as appropriate, ensuring these Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 3 September 29, 2022 contributing factors are linked to programs that have meaningful actions to address concerns specific to the City. Goals, Priorities, Metrics, and Milestones: Goals and actions must significantly seek to overcome contributing factors to fair housing issues. Currently, the element identifies programs to encourage and promote affordable housing; however, most of these programs do not appear to facilitate any meaningful change nor address AFFH requirements. Given that most of the City is considered a high-income community, the element could focus on programs that enhance housing mobility and encourage development of more housing choices and affordable housing in an inclusive manner. Programs also need to be based on identified contributing factors, be significant and meaningful. The element must add and revise programs based on a complete analysis and listing and prioritization of contributing factors to fair housing issues and include geographic targeting as appropriate. Furthermore, the element must include metrics and milestones for evaluating progress on programs, actions, and fair housing results. 2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).) Extremely Low-Income Households: While the element identifies the projected number of extremely low-income (ELI) households, it must still analyze their existing housing needs. This is particularly important given the unique and disproportionate needs of ELI households. For example, the element could analyze tenure, cost burden, overcrowding and other household characteristics then examine trends and the availability of resources to determine the magnitude of gaps in housing needs. 3. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Housing Conditions: The element identifies the age of the housing stock (p. 74, Figure 10). However, it must include analysis of the condition of the existing housing stock and estimate the number of units in need of rehabilitation and replacement. For example, the analysis could include estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable builders/developers, including non-profit housing developers or organizations. 4. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) The City has a RHNA of 11,135 housing units, of which 4,370 are for lower-income households. To address this need, the element relies on approved and pipeline projects, as well as nonvacant sites and sites in proposed master plan areas. To demonstrate the Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 4 September 29, 2022 adequacy of these sites and strategies to accommodate the City’s RHNA, the element must include complete analyses: Progress in Meeting the RHNA: The element indicates (p. 238) that 379 units affordable to very low-income and low-income households have been built or are under construction or approved, but provides no information documenting how affordability of the units was determined. As you know, the City’s RHNA may be reduced by the number of new units built since , however, the element must describe the City’s methodology for assigning these units to the various income groups based on actual sales price or rent level of the units and demonstrate their availability in the planning period. Additionally, the element identifies a number of “pending” projects that are listed in the sites inventory with no additional analysis as to where these projects are in the development process. First, to count these units as progress towards RHNA, the element should describe the status all projects, not just those with anticipated affordability. Second, the element must demonstrate these units are expected to be constructed during the planning period. To demonstrate the availability of units within the planning period, the element could analyze infrastructure schedules, City’s past completion rates on pipeline projects, outreach with project developers, and should describe any expiration dates on entitlements, anticipated timelines for final approvals, and any remaining steps for projects to receive final entitlements. Lastly, given the element’s reliance on pipeline projects, the element must include programs with actions that commit to facilitating development and monitoring approvals of the projects (e.g., coordination with applicants to approve remaining entitlements, supporting funding applications, expediating approvals, rezoning or identification of additional sites should the applications not be approved). Specific/Master Plan Areas: The element identifies the Middlefield Park Master Plan, and the North Bayshore Master Plan as pending projects. It is unclear whether the expected units from these master plans are from actual proposed projects or are anticipated capacity from yet to be proposed projects that will require subsequent approvals. If there are no actual proposed projects, parcels within these master plans should be listed not as a “pending project” but as sites. Additionally, the element may utilize residential capacity in specific plans to accommodate the RHNA but should account for the number of units realistically anticipated to occur in the planning period. For example, if the master plan has an anticipated build out horizon of 20 years, the number of units should be adjusted for the 8-year planning period. The element should include additional discussion for the Middlefield Park Master Plans and North Bayshore master plans including their anticipated timeline or build out horizon and adjust capacity assumptions if appropriate. Realistic Capacity: While the element provides assumptions of buildout for sites included in the inventory, the capacity estimate must consider land use controls and site improvements. Nonvacant Sites: The element states on page 255 that nonvacant opportunity sites in were screened based on specific criteria related to floor area ratio, date of structure, type of Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 5 September 29, 2022 existing use, underutilized surface parking lots occupying a major portion of the site, and/or have landowners that expressed interest in redevelopment. However, the element should clearly relate these criteria to the sites identified. For example, it is unclear which properties have underutilized surface parking or which had expressed interest in redevelopment. In addition, to further demonstrate the development potential of these underutilized sites, the element could also include information related to the condition of the structure and where the uses are operating, marginalized, or for shopping centers, current rate of occupancy. Additionally, the element identifies appears to identify sites with existing residential uses. Absent a replacement housing policy, these sites are not adequate sites to accommodate lower-income households. The replacement housing policy has the same requirements as set forth in Government Code section 65915, subdivision (c), paragraph (3). Sites Identified in Prior Planning Periods: Sites identified in prior planning periods shall not be deemed adequate to accommodate the housing needs for lower-income households unless a program, meeting statutory requirements, requires rezoning within three years. The element must include a program to address this requirement, and it should clarify which sites were identified in prior planning periods. For more information on program requirements, please see HCD’s Housing Element Sites Inventory Guidebook at https://www.hcd.ca.gov/community-development/housing-element/housing-element- memos.shtml. Environmental Constraints: While the element generally describes a few environmental conditions within the City (page 3-35), it must relate those conditions to identified sites and describe any other known environmental or other constraints that could impact housing development on identified sites in the planning period. Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/community- development/housing-element/index.shtml#element for a copy of the form and instructions. The City can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance. Zoning for a Variety of Housing Types (Single Room Occupancy (SRO) Units): The element does not state in what zones it allows SRO units and should be revised to include this information. 5. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 6 September 29, 2022 meeting its share of the regional housing need in accordance with Government Code section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7). (Gov. Code, § 65583, subd. (a)(5).) Governmental Constraint (General): The cumulative impact of governmental constraints can impact the feasibility of development as well as costs and supply. Given the complexity of the regulatory and political environment, the element should include an analysis of the combination of potential governmental constraints, including but not limited to land use controls, discretionary actions, permit and entitlement procedures, fees and exactions, and any other ordinances or requirements affecting development. Please note, HCD received many public comments noting concerns related to constraints on the permit and processing of development within the City. In addition, HCD notes Appendix H in the element which provides some analysis of potential constraints and impacts. The City should incorporate this information into the analysis and add or modify programs as appropriate to address constraints. Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls. The analysis should specifically address requirements related to parking, heights, lot coverage and limits on allowable densities. The analysis should address any impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities and include programs to address identified constraints. Fees and Exaction: While the element provides some basic information on residential development fees starting on pg. 211, it must describe all required fees for single family and multifamily housing development, including impact fees, and analyze their impact as potential constraints on housing supply and affordability. For example, the analysis could identify the total amount of fees and their proportion to the development costs for both single family and multifamily housing. For additional information and a sample analysis and tables, see the Building Blocks at http://www.hcd.ca.gov/community- development/building-blocks/constraints/fees-and-exactions.shtml. This analysis is particularly important given the fact that HCD has received numerous public comments that fees the City is charging are high and constitute a constraint on development. Local Processing and Permit Procedures: While the element includes some information about the permit process and processing time, a complete analysis must evaluate the processing and entitlement procedures for potential constraints on housing supply, cost, timing, financial feasibility, approval certainty and ability to achieve maximum densities. While the element includes information about processing times, it should also describe the procedures for a typical single family and multifamily development. The analysis should address the approval body, the number of public hearing if any, approval findings and any other relevant information. For example, the element should identify and analyze approval findings for impacts on approval certainty, the presence of processes or guidelines to promote certainty and add or modify programs as appropriate. Additionally, the element briefly mentions a “gatekeeper” process on pg. 215. The element should provide further Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 7 September 29, 2022 description and analysis of this process and add or modify programs as appropriate to ensure that the process is not a constraint on housing production. On/Off Site Improvements: While the element provides a basic description of on and off site improvements on pg. 214, it must identify subdivision level improvement requirements, such as minimum street widths (e.g., 40 foot minimum street width), and analyze their impact as potential constraints on housing supply and affordability. For additional information and a sample analysis, see the Building Blocks at http://www.hcd.ca.gov/community-development/building-blocks/constraints/codes-and- enforcement-on-offsite-improvement-standards.shtml. Codes and Enforcement: While the element provides some information on relevant codes the City has adopted starting on pg. 219, it must also provide and analysis of the systems the City has in place to enforce these codes. Constraints on Housing for Persons with Disabilities: The element subjects group homes of seven or more persons to a conditional use permit, unlike other similar uses. For your information, zoning should simply implement a barrier-free definition of family instead of subjecting, potentially persons with disabilities, to special regulations such as the number of persons, population types and licenses. These housing types should not be excluded from residential zones, most notably low-density zones, which can constrain the availability of housing choices for persons with disabilities. Requiring these housing types to obtain a special use or CUP could potentially subject housing for persons with disabilities to higher discretionary standards where an applicant must demonstrate compatibility with the neighborhood, unlike other residential uses. The element should specifically analyze these constraints for impacts on housing supply and choices and approval certainty and objectivity for housing for persons with disabilities and include programs as appropriate. Finally, starting on pg. 225, the element identifies approval findings for granting a reasonable accommodation including finding related to impacts on surrounding uses – essentially a conditional use permit finding. However, reasonable accommodation should be a unique exception process from a conditional use permit, especially given its importance in addressing barriers to housing for persons with disabilities. The element should include revise Program 2.4 (Reasonable Accommodations) to amend the Reasonable Accommodation Ordinance and remove constraints, namely the “potential impact on surrounding uses” approval finding. Zoning, Development Standards and Fees: The element must clarify compliance with new transparency requirements for posting all zoning, development standards and fees on the City’s website and add a program to address these requirements, if necessary. Other Local Ordinances: The element must analyze any locally adopted ordinances that directly impacts the cost and supply or residential development (e.g., inclusionary requirements, short term rentals, growth controls). Specifically, the element should further analyze inclusionary requirements starting on pg. 209 to ensure that they are not a constraint, and modify Programs as appropriate based on the complete analysis. Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 8 September 29, 2022 Additionally, HCD has been in contact with the City regarding its implementation of State Density Bonus Law (SDBL), and has provided technical assistance to that effect in a letter dated October 8, 2021. Specifically, HCD offered guidance on the manner in which the City applies SDBL in concert with its Community Benefit Zoning program, namely the implementation of floor area ratio (FAR) as a measure of density, and the incompatibility of the State waivers and concessions process with the City’s program. The City should review this correspondence and revise Program 1.5 (Density Bonus) to state that the City will review and modify it its density bonus ordinance and policies to comply with state law. 6. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).) While the element quantifies the number of the elderly, persons with disabilities, large families, families with female heads of households, and families and persons in need of emergency shelter, it must still quantify the number of farmworkers in the City, and analyze all special housing needs categories. The analysis should include, but is not limited to, factors such as household income, tenure, housing types, zoning, and available resources. Local officials, special needs service providers, or City/County social and health service providers may be able to assist with information to complete the analysis. For additional information and a sample analysis, see the Building Blocks at http://www.hcd.ca.gov/community-development/building-blocks/housing-needs/large- families-female-head-household.shtml. C. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).) To address the program requirements of Government Code section 65583, subdivision (c)(1-6), and to facilitate implementation, programs should include: (1) a description of the City’s specific role in implementation; (2) definitive implementation timelines; (3) objectives, quantified where appropriate; and (4) identification of responsible agencies and officials. Programs to be revised include the following: Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 9 September 29, 2022 Program 1.1 (Zoning Ordinance Update): This program should describe the desired outcomes or achievements related to the review of local development standards, and provide a distinct milestones for what constitutes a complete assessment. The program’s goals and metrics should be reflective of the results of this analysis. Additionally, the program should be revised to carry out a more concrete actions than merely “considering” updated standards for 100 percent affordable housing and other residential development. Program 1.2 (Religious and Community Assembly Sites for Housing): This program should be revised to provide further detail as to the proposed allowable density for affordable multifamily projects developed in conjunction with nonprofit religious and community assembly uses on large sites. It should also provide greater detail on what the overall process will look like when it is applied. Program 1.3 (Conservation of Units): The program should be revised to provide a quantifiable outcome for how many units the City anticipates preserving during the planning period. Program 1.5 (Density Bonus): As noted in finding B5, this program should be revised to state that the City will review and modify it its density bonus ordinance and policies to comply with State Law, particularly regarding the giving of incentives and concessions to developers. Program 1.6 (No Net Loss): This program should be revised to ensure that its activities align with State No Net Loss Law, such as making findings on a project-by-project basis in addition to monitoring sites statuses every six months. Program 1.7 (Code Enforcement Program): This program should be revised to include further detail as to how exactly reported code violations will be remedied or addressed (e.g. will this enforcement be tied to a housing rehabilitation and/or replacement program?). Program 1.8 (Multifamily Housing Inspection Program): This program should be revised to provide further detail as to exactly how the Multifamily housing program will be implemented, and provide assurances that its implementation does not violate the City’s obligation to AFFH. Program 1.11 (BMR Program Review): This program should be revised to provide more detail as to what the review of the City’s Below-Market-Rate (BMR) program will actually encompass, and provide more concrete and measurable outcomes resulting from this review. Program 2.1 (Subsidize and support affordable housing programs to meet an array of housing needs, with a particular emphasis on underserved populations): This program should be revised to commit to doing more than just “exploring” innovative programs as appropriate to meet gaps in affordable housing need. All program activities must have concrete actions, timelines, metrics and milestones in order to demonstrate whether progress is being made during the planning period. Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 10 September 29, 2022 Program 3.1 (Homelessness Prevention and Services for the Unhoused): The program should be revised to clearly articulate what the City will do to “support” emergency rental programs and pathways to housing, with specific goals and quantifiable outcomes for the planning period. Program 3.2 (Displacement Prevention and Mitigation): This program should be revised to increase its quantifiable outcomes and assist more than one naturally occurring affordable project during the planning period, especially given the fact that displacement risk seemed to be a major concern in the public comment HCD received. Program 4.1 (Development Streamlining and Processing Revisions): This program should be revised to be completed earlier in the planning period, and should also clearly state how its goals and actions reflect the needs highlighted in the analysis of the Governmental Constraints section of the element. Program 4.2 (Federal, State, and Regional Policy initiatives): This program should be revised to provide concrete goals, metrics and milestones to measure effectiveness throughout the planning period. Program 4.4 (Partnerships to support affordable housing): This program should be revised to provide concrete goals, metrics and milestones to measure effectiveness throughout the planning period. The program should also make clear if there is already a list of partners the City is considering. Program 4.7 (Neighborhood Engagement): This program should be revised to demonstrate what actions the City will take to “encourage” developers to engage with community. 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).) As noted in Finding B4, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. 3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 11 September 29, 2022 housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding B5, the element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. 4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding B1, the element must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics and milestones as appropriate and must address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place- based strategies for community preservation and revitalization and displacement protection. Currently the element only associates programs with contributing factors, but it does not explain or provide analysis as to how these programs actually address these issues. The element should revise program actions to address the City’s obligation to AFFH including how programs address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for community preservation and revitalization and displacement protection. In addition, the element should also describe how all the City’s housing programs comply with and further the requirements and goals of Government Code section 8899.50, subdivision (b). 5. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).) The element is required to include a program that incentivizes or promotes accessory dwelling unit (ADU) development for very low-, low-, and moderate-income households. While the element included Program 1.4, this program only commits to tracking and monitoring ADU construction, and updating the webpage with resources. The program should be revised to include incentivizes or otherwise promotes ADU development. Examples of incentives include pursuing funding opportunities, modifying development standards, and reducing fees beyond state law, increasing awareness, pre-approved plans, and homeowner/applicant assistance tools. Other strategies could include developing information packets to market ADU construction, targeted advertising of ADU development opportunities or establishing an ADU specialist within the planning department. Review of the City of Mountain View’s 6th Cycle Draft Housing Element Page 12 September 29, 2022 D. Public Participation Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the City made effort to include the public through workshops and surveys, and employed additional methods for public outreach efforts, particularly including lower-income and special needs households and neighborhoods with higher concentrations of lower- income and special needs households, HCD received comments with many meaningful suggestions related to program timing, program commitment and other issues related to zoning and AFFH. HCD encourages the City to consider these comments. For additional information, see the Building Blocks at http://www.hcd.ca.gov/community- development/building-blocks/getting-started/public-participation.shtml. This Page Intentionally Left Blank STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov July 8, 2022 Mark Muenzer, Director Community Development and Transportation Department City of Redwood City 1017 Middlefield Road Redwood City, CA 94063 Dear Mark Muenzer: RE: Redwood City’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting Redwood City’s (City) draft housing element received for review on April 11, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on June 8, 2022 with Diana O’Dell, Alin Lancaster, and consultants Genevieve Sharrow and Lisa Brownfield. In addition, HCD considered comments from Housing Leadership Council (HLC) of San Mateo County pursuant to Government Code section 65585, subdivision (c). The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law. For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be ATTACHMENT 5 Mark Muenzer, Director Page 2 aware, any revisions to the element must be posted on the local government’s website and an email with the link sent to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at: https://www.opr.ca.gov/planning/general-plan/guidelines.html. HCD appreciates the dedication the City provided in the housing element update. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Hillary Prasad, of our staff, at Hillary.Prasad@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager Enclosure Redwood City’s 6th Cycle Draft Housing Element Page 1 July 8, 2022 APPENDIX CITY OF REDWOOD CITY The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD’s website at http://www.hcd.ca.gov/community-development/housing-element/housing-element-memos.shtml. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources. A. Review and Revision Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).) As part of the review of programs in the past cycle, the element must provide an evaluation of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers, and persons experiencing homelessness). B. Housing Needs, Resources, and Constraints 1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Enforcement and Outreach: While the element provides some data, the element should also describe whether there have been any fair housing lawsuits or enforcement actions within the City. Integration and Segregation: While the element includes some data on race, familial status, disability, and income, it must also analyze this data such as addressing patterns, trends, conditions, characteristics, coincidence with other fair housing components (e.g., disparities in access to opportunity, disproportionate housing needs), other relevant factors and local data and knowledge. For race, the analysis should be geographic and describe concentrations of different races throughout the City. Regarding disability, the data showed one census tract where the concentration of persons with disabilities was higher; the element should describe and analyze the data provided and relate it to other factors to understand the quality of life conditions and better formulate appropriate policies and programs. The analysis for familial status must analyze the data within the City as well as how the City differs from the surrounding region. The element must also analyze income Redwood City’s 6th Cycle Draft Housing Element Page 2 July 8, 2022 and the concentration of poverty within the City that was identified. It should also compare the City to the surrounding areas. Racial/Ethnic Areas of Concentration of Poverty (R/ECAP) and Concentrated Areas of Affluence: While the element identified R/ECAPs, it must provide an analysis. In addition, the element should address concentrated areas of affluence (Please see HCD’s AFFH Data Viewer). The combination of the R/ECAP and areas of affluence analyses will help guide goals and actions to address fair housing issues. The analysis should evaluate the patterns and changes over time at a local (e.g., neighborhood to neighborhood) and regional level (e.g., city to region). Disparities in Access to Opportunity: While the element provided some data, additional data and analysis is needed. The element should relate the overall disparities in access to opportunity in the City to the rest of the affirmatively furthering fair housing (AFFH) analysis. In addition, the element included data on education, but it must analyze the data on both a local and regional level as well as describe the proximity of proficient schools to areas of segregation and R/ECAPs. The element must describe what affects the disparities in access to jobs within the City and how it affects protected groups. While the element describes transit plans in the region, it should describe and analyze local and regional access to transit and provide a map of transit access. The element must analyze local and regional disparities of environmental access to opportunity. While the local data states where there are worse scores, it must describe the rest of the City and analyze the data. Disproportionate Housing Need, Including Displacement Risk: While the element included some data, some additional data and analysis for cost burden, overcrowding, substandard housing, homelessness and displacement are needed. The element must describe and analyze cost burden geographically at a local and regional level. In addition, the element must describe the concentrated area of overcrowding within the City as well as provide a regional analysis. The element must describe any concentrations of substandard housing. The element must also provide demographic information on the homeless population and evaluate impacts on protected characteristics and disparities in access to opportunity (e.g., access to services). Lastly, the element must describe displacement due to disinvestment and disaster. Sites Inventory: While the element included some data on identified sites and AFFH, it must evaluate whether sites improve or exacerbate conditions and whether sites are isolated by income group. A full analysis should address the income categories of identified sites with respect to location, the number of sites and units by all income groups and how that affects the existing patterns for all components of the assessment of fair housing (e.g., segregation and integration, access to opportunity). Almost all sites are identified in moderate or low resource areas, the element must discuss whether the distribution of sites improves or exacerbates conditions. If sites exacerbate conditions, the element should identify further program actions that will be taken to promote equitable quality of life throughout the community (e.g., anti-displacement and place-based community revitalization strategies). Redwood City’s 6th Cycle Draft Housing Element Page 3 July 8, 2022 Contributing Factors to Fair Housing Issues: While the element identifies many contributing factors to fair housing issues, it should prioritize these factors to better formulate policies and programs and carry out meaningful actions to AFFH. Goals, Priorities, Metrics, and Milestones: The element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics, milestones and geographic targeting and must address housing mobility enhancement, new housing choices and affordability in high opportunity areas, place-based strategies for community preservation and revitalization and displacement protection. 2. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Overcrowding: The element should include the rate of severe overcrowding, as well as analyze and address the need of overcrowded households. Housing Conditions: The element must include an analysis of the condition of the existing housing stock and estimate the number of units in need of rehabilitation and replacement. For example, the analysis could include estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable builders/developers, including non-profit housing developers or organizations. 3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Progress in Meeting the Regional Housing Need Allocation (RHNA): The element lists various approved and proposed projects by affordability. But in some cases, the element must still discuss how affordability was determined based on actual or anticipated sales prices and rents or other mechanisms ensuring affordability (e.g., deed-restrictions, inclusionary requirements). Namely, the element should include additional affordability information for 1601 El Camino, 1057 El Camino Real, 901 El Camino Real, 1900 Broadway and 2300 Broadway. In addition, the element lists several projects utilizing the “Gatekeeper” process. Given the pending complexity of entitlements potentially associated with these projects, the element should include discussion of their availability in the planning period such as an anticipated schedule for development. Lastly, the element should modify Program H1-1 to monitor approved and proposed projects and commit to alternative actions within a reasonable time (e.g., within one year) of projects are not moving toward completion as anticipated. Redwood City’s 6th Cycle Draft Housing Element Page 4 July 8, 2022 Realistic Capacity: The element provides various assumptions for calculating residential capacity on identified sites and describes the assumptions are based on recent projects. However, the element should list projects to support these assumptions. Similar to the listing of recent projects in the Downtown Precise Plan (Table H3-12), the listing should address acreage, zone, number of units built, maximum allowable density, built density and percent of maximum allowable densities. Suitability of Nonvacant Sites: The element must include an analysis demonstrating the potential for redevelopment of nonvacant sites. To address this requirement, the sites inventory includes a generic description of existing uses such as “restaurant” or “shopping center”. However, the description of existing uses should be sufficiently detailed to facilitate an analysis demonstrating the potential for additional development in the planning period. For example, the inventory could list which sites have expressed interest from developers or owners, age of structure and degree of underutilization. In addition, the element should analyze recent experience in redevelopment and the extent that existing uses may impede additional residential development. For example, the element includes sites identified as single-family residents, restaurants, parks, open storage, service station, and shopping center, but should discuss how these uses will discontinue or be redeveloped in the planning period. The element should also expand the discussion of existing uses in recent projects (including approved and proposed projects) and relate those characteristics to sites identified. For example, many identified sites appear with shopping and retail. The element could discuss how some recent, approved or pending development had existing uses with similar characteristics (e.g., use, age of structure, degree of underutilization, ample parking, vacancy, expiring leases). In addition, as noted in the housing element, the housing element relies upon nonvacant sites to accommodate more than 50 percent of the regional housing needs allocation (RHNA) for lower-income households. For your information, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period (Gov. Code, § 65583.2, subd. (g)(2).). Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the regional housing need allocation. SB 9 and Missing Middle Sites: The element identifies SB 9 and Missing Middle as strategies to accommodate the part of the City’s need of moderate and above-moderate RHNA. To support these assumptions, the analysis must include experience, trends and market conditions that allow lot splits and missing middle uses. The analysis must also include a nonvacant sites analysis demonstrating the likelihood of redevelopment and the existing use will not constitute as an impediment for additional residential use. The analysis should describe how the Terner Center study determined eligible properties, whether the assumed lots will have turnover, if the properties are easy to subdivide, and the condition of the existing structures. The analysis should also describe interest from property owners as well as experience. The analysis should provide support for the assumption of 25 percent of eligible properties being developed within the planning period. Based on the outcomes of this analysis, the element should modify Programs H4-5 (SB 9 Zoning) and H4-3 (Middle Housing) to establish zoning and development standards early Redwood City’s 6th Cycle Draft Housing Element Page 5 July 8, 2022 in the planning period and implement incentives to encourage and facilitate development as well as monitor development every two years with and identify additional sites within six months if assumptions are not being met. The element should support this analysis with local information such as local developer or owner interest to utilize zoning and incentives established through SB 9. A similar analysis should also be completed for sites identified as accommodating missing middle and clarify whether the sites identified under SB 9 overlap with the sites identified to accommodate missing middle. City-owned Sites: Given the element identifies publicly-owned sites, it should include a discussion of suitability and availability for development in the planning period, including an anticipated schedule for development, any necessary steps to develop the properties and any known constraints to development in the planning period. Lastly, the element should add or modify programs based on the outcomes of this analysis and commit to a schedule of action to facilitate development, numerical objectives consistent with assumption and compliance with the Surplus Land Act. Sites Identified in Prior Planning Periods: Sites identified in prior planning periods shall not be deemed adequate to accommodate the housing needs for lower-income households unless a program, meeting statutory requirements, requires rezoning within three years. The element should include a program if utilizing previously identified sites in the current planning period. Availability of Infrastructure: The element includes a general statement on availability of utilities. However, it must also analyze whether sufficient total water and sewer capacity (existing and planned) can accommodate the regional housing need and add or modify programs if necessary. For your information, water and sewer service providers must establish specific procedures to grant priority water and sewer service to developments with units affordable to lower-income households. (Gov. Code, § 65589.7.) The element should clarify whether the City is a water or sewer service provider and if so, demonstrate compliance with this requirement either through discussion or a program to establish a procedure. Zoning for a Variety of Housing Types (Manufactured Housing): As noted on page H2-16, the element should include a program to amend zoning and procedures to permit manufactured housing in compliance with state law. 4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Land Use Controls: While the element identifies development standards on page H2-8, it must analyze whether the development standards are a constraint to development. The analysis should address all development standards (e.g., lot coverage, heights, setbacks, Redwood City’s 6th Cycle Draft Housing Element Page 6 July 8, 2022 parking) and any impacts on housing supply, cost, timing, ability to achieve maximum densities and any preponderance of utilizing exception processes. Local Processing and Permit Procedures: The element lists various permit procedures (e.g., design review, conditional use permit (CUP), planned development), it should clarify which procedures are typical for development, particularly developments consistent with zoning and the general plan. The analysis should describe the components of the procedure, list and evaluate approval findings and address any impacts on housing supply (number of units), cost, timing, and approval certainty. If exception processes such as CUPs or planned developments are typical or required, the element should include specific analysis and programs to address constraint. For example, the element should clarify whether the CUP is required for all developments that exceed three stories or 35 feet in height and whether the planned development permit is optional. Lastly, the element must analyze the significant discrepancies in length of approval time for single family and multifamily projects under ministerial review. Design Review: The element must describe and analyze the design review guidelines and process, including approval procedures and decision-making criteria, for their impact as potential constraints on housing supply and affordability. For example, the analysis could describe required findings and discuss whether objective standards and guidelines improve development certainty and mitigate cost impacts. The element must demonstrate this process is not a constraint or it must include a program to address this permitting requirement, as appropriate. Inclusionary Requirements: The element must analyze the inclusionary requirement for impacts on housing cost, supply and timing. The analysis should address the 20 percent requirement, relationship to State Density Bonus Law, whether impact fees are imposed if meeting inclusionary requirements and impacts of the live/work preference on housing mobility. On/Off-Site Improvements: The element must identify actual on and off-site requirements for a typical development and evaluate the impacts on housing costs and timing. Codes and Enforcement: The element must describe the City’s code enforcement process and procedure (i.e., whether the City’s code enforcement is proactive or complaint based) and analyze its impact as potential constraints on housing supply and affordability. Constraints on Housing for Persons with Disabilities: The element briefly describes its reasonable accommodation procedure. However, the element should also describe the process and decision-making criteria such as approval findings and analyze any potential constraints on housing for persons with disabilities. Zoning, Development Standards and Fees: The element must clarify compliance with new transparency requirements for posting all zoning, development standards, fees, and inclusionary requirements on the City’s website and add a program to address these requirements, if necessary. 5. Analyze any special housing needs such as elderly; persons with disabilities, including a Redwood City’s 6th Cycle Draft Housing Element Page 7 July 8, 2022 developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).) Farmworkers: The element describes farmworkers are a small percentage of the City’s labor force, that Redwood City has no farmland and; therefore, specific programs are not needed. However, the housing needs of farmworkers are often under-counted and are not limited to the amount of farmland in Redwood City. As a result, the element should at least consider the housing needs at a county level and add or modify programs as appropriate to address the specific and unique needs of farmworkers. The analysis may utilize United States Department of Agricultural data (Agricultural Census) and information available through the Department of Education to address this requirement. C. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).) To have a beneficial impact on housing outcomes in the planning period, programs must have specific commitment (beyond considering) to housing outcomes, discrete timing (e.g., at least annually) and where appropriate numerical targets. To address this requirement, programs should be revised, as follows: • Program H1-1 (Adequate Sites): The program should include annual implementation. • Program H1-3 (Replacement Unit Requirements): The program should implement revisions by a specified date (e. g., month and year). • Program H1-4 (Densities in High Opportunity Areas): The program should include an implementation component beyond a study, especially if the City is relying on the program to implement missing middle housing. • Program H1-5 (Accessory Dwelling Units): The program should include annual reviews and updates as needed. • Programs H1-6 (Densities in Mixed Use Zoning Districts) and H2-6 (Rezone Commercial Office): The timing of these programs should clarify amendments will be completed by the housing element due date. • Program H2-3 (Preservation of At-Risk Affordable Housing): The program should include specific timing as well as include proactive outreach to owners. The program should also include outreach to owners to comply with Government Code sections 65863.10, 65863.11, and 65863.13 beginning three years before expiration of affordability for at-risk properties. Redwood City’s 6th Cycle Draft Housing Element Page 8 July 8, 2022 • Program H2-5 (Fist-Time Homebuyer Opportunities): The program should include proactive outreach to developers and homebuyers as well as other actions if the code amendments are not adopted. • Program H4-1 (Site Improvements and Fees): The program should include implementation beyond considering an action to revise undergrounding requirements. • Program H4-3 (Middle Housing Development): The program should include timing for implementing Phase two. • Program H4-4 (Density Bonuses): The program should include timing on how often the ordinance will be reviewed during the planning period. • Program H4-9 (Housing Accountability Act): The program should include specific timing (e.g., month and year). • Program H5-1 (Equity and Outreach Plan): The program should describe how often the City will partner with advocates and organizations throughout the planning period. • Program H5-2 (Consult with Public Agencies): The program should include annual proactive outreach. • Program H5-3 (Affirmatively Market Accessible and Affordable Units): The program should describe how often the list will be updated, how often coordination will occur, as well as proactive outreach. • Program H6-1 (Anti-Displacement Strategy): The program should include implementation timing. • Program H6-2 (Fair Housing Services): The program should describe how often actions and outreach will occur. • Program H6-3 (Affirmatively Further Fair Housing): The program should include implementation beyond “consider”. 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning… (Gov. Code, § 65583, subd. (c)(1).) As noted in Finding B4, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows: Programs H1-6 (Densities in Mixed Use Zoning Districts) and H2-6 (Rezone Commercial Office): The programs commit to, among other things, increase allowable densities in several mixed-use zones concurrently with adoption of the housing element. Please be aware, if these changes to zoning are necessary to accommodate the RHNA for lower- income households and adoption does not occur before the beginning of the planning period, the element may need to address a shortfall of adequate sites and trigger meeting Redwood City’s 6th Cycle Draft Housing Element Page 9 July 8, 2022 by-right requirements pursuant to Government Code section 65583, subdivision (c)(1) and section 65583.2, subdivisions (h) and (i). Program H4-5 (SB 9 Zoning and Subdivision Ordinance Amendments): As the City is relying on developing units utilizing SB 9, the program must commit to adopting updated definitions, use regulations, and development standards beyond “considering” and modified based on the outcomes of a complete analysis, including monitoring production and affordability every two years and taking alternative action if necessary. 3. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderate-income households. (Gov. Code, § 65583, subd. (c)(2).) Special Needs: While the element includes programs to assist in the development of very low-, low-, and moderate-income households, it must also include a program(s) to assist in the development of housing for all special needs households (e.g., elderly, homeless, farmworkers, persons with disabilities, female-headed households). Specifically, programs should be added or modified to address the needs of persons with disabilities. For example, program actions could include proactive outreach and assistance to non-profit service providers and developers, prioritizing some funding for housing developments affordable to special needs households and offering financial incentives or regulatory concessions to encourage a variety of housing types. Program H3-1 (Senior Housing Needs): The program should include an action beyond “consider” as well as describe how the City will support organizations and how often. As the element identified a high need for senior housing, the program should specifically help seniors stay in their homes to address the identified need. In addition, the program should include timing to revise the definitions. 4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding B5, the element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. In addition, the element should be revised as follows: Program H1-8 (Small Lots): The program should implement the incentives and changes to development standards, as well as list out potential revisions that are being considered. Program H3-2 (Residential Care Facilities and Group Homes): The program must clarify what the City will do to allow group homes with seven or more residents. The program should clearly address this constraint and commit to revise zoning and permit procedure to Redwood City’s 6th Cycle Draft Housing Element Page 10 July 8, 2022 permit group homes for seven or more persons with objectivity to facilitate approval certainty in all residential zones. Program H3-3 (Special Needs and Extremely-Low Income (ELI) Households): The program should remove “consider” from the second action to amend zoning for ELI housing options. In addition, the program should describe how the City will support the homeless outreach team and how often they will consult with the County’s center on homelessness. Lastly, the program must include specific timing and commitment for completing zoning amendments earlier in the planning period (beyond presenting in a study session in four years). Program H4-2 (General Plan/Zoning Consistency): The program should specify timing as well as describe what amendments will be made. Program H4-6 (Permit Processing): The program should include specific timing to implement the described actions. The program should also describe how often the process will be evaluated and improved. Program H4-7 (Revised Parking Standards): The program should go beyond considering revised parking standards as the parking standards were identified as a potential constraint. For example, the City currently requires two spaces per multifamily unit regardless the number of bedrooms and “up to” a certain number of spaces in the Downtown. The program should reduce parking constraints for multifamily units within the City, as well as in the Downtown and Mixed-Use zones. In addition, the program should include specific timing for implementation. Program H4-8 (Employee Housing Act): The program should be implemented earlier in the planning period (e.g., within one year). 5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding B1, the element must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis. 6. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).) Programs must be expanded to include incentives to promote the creation and affordability of Accessory Dwelling Units (ADUs). Examples include exploring and pursuing funding, modifying development standards and reducing fees beyond state law, increasing awareness, pre-approved plans and homeowner/applicant assistance tools. In addition, given the City’s assumptions for ADUs, the element should include a program to monitor permitted ADUs and affordability every other year and take appropriate action such as adjusting assumptions or rezoning within a specified time period (e.g., 6 months). Redwood City’s 6th Cycle Draft Housing Element Page 11 July 8, 2022 D. Public Participation Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the element describes public participation and key themes from public engagement, it should describe how public comments were incorporated into the element. This Page Intentionally Left Blank STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov October 26, 2022 Debbie Pedro, Director Community Development Department City of Saratoga 13777 Fruitvale Avenue Saratoga, CA 95070 Dear Debbie Pedro: RE: The City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Saratoga’s (City) draft housing element received for review on July 28, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on October 17, 2022 with yourself, Nicole Johnson, and consultants Carla Violet, Curtis Banks, and Arly Cassidy Dolbakian. In addition, HCD considered comments from Faisal Haq, Anne Muller, Karthick Lyer, South Bay YIMBY, YIMBY Law and Greenbelt Alliance, Anne Paulson, Joanne Cornbleet, Stephen A. Smith, Joseph B. Houston Jr. and Elizabeth M. Houston, Curt Bianchi, and Marc Barberis pursuant to Government Code section 65585, subdivision (c). The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law. For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (January 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until rezones to accommodate a shortfall of sites pursuant to Government Code section 65583, ATTACHMENT 6 Debbie Pedro, Director Page 2 subdivision (c) (1) (A) and Government Code section 65583.2, subdivision (c) are completed. Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City meets housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at: https://www.opr.ca.gov/planning/general-plan/guidelines.html. HCD appreciates the effort and cooperation the housing element team provided during the review. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Hillary Prasad, of our staff, at Hillary.Prasad@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager Enclosure City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 1 October 26, 2022 APPENDIX CITY OF SARATOGA The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/building-blocks and includes the Government Code addressing State Housing Element Law and other resources. A. Review and Revision Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).) A thorough program-by-program review is necessary to evaluate City's performance in addressing housing goals. As part of this analysis, the element should report progress in implementation, evaluate the effectiveness of programs and make adjustments in current programs as appropriate. While the element reports progress in implementation, it must evaluate the effectiveness of programs in achieving the goals and objectives of the housing element. For example, the element should specifically analyze the effectiveness of several programs that were essential to past compliance and part of the current programs without meaningful adjustment, including but not limited to Programs 4-1.5 (Lot Consolidation), 4- 1.6 (Parking: especially for higher density non-affordable developments), 4-4.2 (Special Needs Zoning), 4-4.4 (Persons with Developmental Disabilities), 4-4.5 (Extremely Low- income Households) and 4-5.3 (Development Partnerships). Based on the outcomes of this evaluation, the element should add or modify programs as appropriate. In addition, as part of the review of programs in the past cycle, the element must provide an evaluate of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers and persons experiencing homelessness). B. Housing Needs, Resources, and Constraints 1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 2 October 26, 2022 Enforcement and Outreach: While the element describes some outreach and capacity to enforce fair housing laws, it should also include information on local enforcement, including the characteristics of complaints. In addition, the analysis must address compliance with existing fair housing laws as well as any past or current fair housing lawsuits, findings, settlements, judgements, or complaints. Integration and Segregation: While the element includes recent data for most requirements, the information on income is from 2015 and should be updated. In addition, the element notes the significant differences in income relative to the region, but should analyze those differences, including consideration of local data and knowledge, other relevant factors (see below) and coincidence with other components of the assessment of fair housing (e.g., disparities in access to opportunity and disproportionate housing needs). This analysis is essential to the City’s assessment of fair housing and appropriate programs should be added to promote housing mobility and new housing opportunities throughout the City. Lastly the element should describe any local concentrations of familial status within the City geographically as well as what contributes to the higher concentration of families within the City in comparison to the region. Racial/Ethnic Areas of Concentration of Affluence (RCAA): The element currently uses 2013 data to state there are no RCAAs within the City and describes where they are regionally. However, HCD’s fair housing data viewer indicates that areas within the City and much of the immediately surrounding region is considered a RCAA. The analysis should include updated data regarding the City’s RCAA designations and as noted above this should be analyzed relative to the broader region, County, and neighboring communities including the City’s eastern neighbors. For more information, please visit: https://affh-data-resources-cahcd.hub.arcgis.com. Disparities in Access to Opportunity: The element provides information on the access to opportunity through the TCAC opportunity map but must also provide a complete local and regional analysis of patterns and trends for all components. A comprehensive analysis should include the local and regional disparities of the educational, environmental, and economic scores through local, federal, and/or state data. It should also analyze persons with disabilities as well as access to transit. Please refer to page 35 of the Affirmatively Furthering Fair Housing (AFFH) guidebook (https://www.hcd.ca.gov/community- development/affh/index.shtml#guidance) for specific factors that should be considered when analyzing access to opportunities as it pertains to educational, employment, environmental, transportation, and any factors that are unique to Saratoga. Disproportionate Housing Needs Including Displacement: While the element includes some data on disproportionate needs, additional information is needed. The element must describe any geographic concentration of cost burden, overcrowding, and persons experiencing homelessness both locally and regionally. Lastly, the element must describe and analyze areas sensitive to displacement risk due to disaster (e.g., earthquake, fire, and flood). City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 3 October 26, 2022 AFFH and Identified Sites: While the element includes a summary of fair housing related to the sites inventory, it must analyze how the identified sites contribute to or mitigate fair housing issues. An analysis should address all of the income categories of identified sites with respect to location, the number of units by all income groups and how that affects the existing patterns for all components of the assessment of fair housing (e.g., segregation and integration, access to opportunity). This analysis should specifically address isolation of the regional housing need allocation (RHNA) by income group and incorporate public comments as appropriate. If sites exacerbate conditions or isolates the RHNA by income group, the element should identify further program actions (not limited to the RHNA) that will be taken to promote equitable quality of life throughout the community (e.g., housing mobility and new opportunities in higher resource areas). Local Data and Knowledge: The element notes some County documents (e.g., assessment of fair housing) and outreach with stakeholder, but it should incorporate the relevant content of those documents into the assessment of fair housing. Other Relevant Factors: The element broadly mentions discriminatory practices in land use but should discuss the practices of the City, particularly related to zoning and other land use measures such as local initiatives and combine that discussion with other relevant factors such as demographics (e.g., tenure, housing types, incomes) and past investments or lack of investments, including applying for state and federal resources. Contributing Factors: The element identifies many contributing factors to fair housing issues. In addition, the element must prioritize these factors to better formulate policies and programs and carry out meaningful actions to AFFH. Goals, Actions, Metrics, and Milestones: While the element includes general metrics for some programs, the element must be revised to add or modify goals and actions based on the outcomes of a complete analysis. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity areas (throughout the City), place-based strategies for community preservation and revitalization and displacement protection. 2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).) Extremely Low-Income (ELI): While the element briefly quantifies ELI households but should specifically analyze their housing needs, including tenure, overpayment, available resources and strategies, effectiveness of past program and the magnitude or City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 4 October 26, 2022 disproportionate impacts on housing needs. Then, the element should add or modify programs as appropriate. 3. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Housing Cost: While the element includes estimated rents for residents, it utilizes American Community Survey (ACS) data. The element should supplement census data with other sources (e.g., local knowledge). Overpayment: The element must quantify and analyze the number of lower-income households overpaying by tenure (i.e., renter and owner). 4. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Progress in Meeting the RHNA: The City’s RHNA may be reduced by the number of new units built, approved, or pending since June 30, 2022; however, the element must demonstrate their affordability based on actual sales price, rent level or other mechanisms ensuring affordability (e.g., deed restrictions). The element should also discuss the status, any barriers to development and other relevant factors to demonstrate the availability or likelihood of development in the planning period. Small Sites: Sites smaller than a half-acre in size are deemed inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size and affordability were successfully developed during the prior planning period or unless the housing element describes other evidence to HCD that the site is adequate to accommodate lower-income housing (Gov. Code, § 65583.2, subd. (c)(2)(A).). The element lists small sites but must also evaluate whether those sites are suitable to accommodate housing for lower income households and add or modify programs as appropriate. For example, the element could list past consolidations by the number of parcels, number of owners, zone, number of units, affordability and circumstances leading to consolidation and then relate those trends to the identified sites or could explain the potential for consolidation on a site-by-site basis. Suitability of Nonvacant Sites: The element must include an analysis demonstrating the potential for redevelopment of nonvacant sites. While the element includes adequate analysis for most sites, it should specifically evaluate the potential for redevelopment on the Village East and Fellowship Plaza Housing Sites. The analysis should address the extent that existing uses may impede additional residential development. For example, the element can summarize past experiences converting similar existing uses to higher density residential development, discuss the lack of market demand for the existing use, address existing leases or contracts that would perpetuate the existing use or prevent City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 5 October 26, 2022 additional residential development and consider additional indicators such as age and conditions or the structure and existing versus allowable floor area. In addition, the element should describe the appropriateness of zoning and feasibility of developing additional housing on the Fellowship Plaza Housing site if the developer and owner acknowledged that they are having difficulty obtaining new funding and a conditional use permit (CUP) to add additional housing on the site expired in 2013. The element should also describe how much of the Wardell housing site will be rezoned, and whether the rezoned portion will include the existing use (p. 6-34). In addition, specific analysis and actions are necessary if the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower- income households. For your information, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period (Gov. Code, § 65583.2, subd. (g)(2).). Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the regional housing need allocation. Finally, the element identifies sites with existing residential uses. Absent a replacement housing policy, these sites are not adequate sites to accommodate lower-income households. The replacement housing policy has the same requirements as set forth in Government Code section 65915, subdivision (c), paragraph (3). SB 9 Sites: The element identifies SB 9 as a strategy to accommodate the part of the City’s need of above-moderate RHNA. To support these assumptions, the analysis must include experience, trends and market conditions that allow lot splits and missing middle uses. The analysis must list the potential SB 9 sites and demonstrate the likelihood of redevelopment, including whether existing uses constitute as an impediment for additional residential use. The analysis should describe how the City determined eligible properties, whether the assumed lots will have turnover, if the properties are easy to subdivide, and the condition of the existing structures. The analysis should also describe interest from property owners as well as experience. The analysis should provide support for the 80 units being developed within the planning period. Based on the outcomes of this analysis, the element should add or modify to establish zoning and development standards early in the planning period and implement incentives to encourage and facilitate development as well as monitor development every two years with and identify additional sites within six months if assumptions are not being met. The element should support this analysis with local information such as local developer or owner interest to utilize zoning and incentives established through SB 9. City-Owned Sites: The element must include additional discussion on each of the City- Owned sites identified to accommodate the RHNA. Specifically, the analysis should address general plan designations, allowable densities, support for residential capacity assumptions, existing uses and any known conditions that preclude development in the planning period and the potential schedule for development. If zoning does not currently allow residential uses at appropriate densities, then the element must include programs City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 6 October 26, 2022 to rezone sites pursuant to Government Code section 65583.2, subdivisions (h) and (i). In addition, the housing element must include a description of whether there are any plans to sell the property during the planning period and how the jurisdiction will comply with the Surplus Land Act Article 8 (commencing with Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5. Accessory Dwelling Units (ADU): The element projects 480 ADUs over the planning period or approximately 60 ADUs per year over the eight-year planning period. The element also notes permitting 16 ADUs in 2018, 24 in 2019, 68 in 2020, and 69 in 2021. These trends are inconsistent with HCD records (nothing reported in 2018, 24 in 2019, 43 in 2020, and 66 in 2021) and do not support an assumption of 60 ADUs per year. To support assumptions for ADUs in the planning period, the element should reduce the number of ADUs assumed per year and reconcile trends with HCD records, including additional information such as more recent permitted units and inquiries, resources and incentives, other relevant factors and modify policies and programs as appropriate. Availability of Infrastructure: While the element generally discusses water and sewer infrastructure capacity, it should clearly state whether there is sufficient existing or planned capacity to accommodate the RHNA. For your information, water and sewer service providers must establish specific procedures to grant priority water and sewer service to developments with units affordable to lower-income households. (Gov. Code, § 65589.7.) Local governments are required to immediately deliver the housing element to water and sewer service providers. Environmental Constraints: While the element generally describes a few environmental conditions, it must relate those conditions to identified sites and describe any other known environmental or other constraints that could impact housing development on identified sites in the planning period. Zoning for a Variety of Housing Types: • Emergency Shelters: The element indicates the CN (RHD) zone permits emergency shelters by right including adoption of design and development standards but should also clarify emergency shelters are permitted without discretionary action, describe capacity and potential for reuse, including proximity to transportation and services for these sites and any conditions in appropriate for human habitability. In addition, the element should list and analyze the actual design and development standards, including how parking requirements comply with AB139/Government Code section 65583, subdivision (a)(4)(A) or include a program to comply with this requirement. • Housing for Employees: The Employee Housing Act permits housing under specific provisions. Section 17021.5 requires employee housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. Section 17021.6 requires employee housing consisting of no more than 12 units or 36 beds to be City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 7 October 26, 2022 permitted in the same manner as other agricultural uses in the same zone. The element must demonstrate compliance with these requirements and include programs as appropriate. • Manufactured Housing: Manufactured homes that are built on a permanent foundation must be allowed in the same manner and in the same zones as conventional or stick-built structures. Specifically, manufactured homes on a permanent structure should only be subject to the same development standards that a conventional single-family residential dwelling would be subject to. The element must demonstrate consistency with this requirement or add or modify programs as appropriate. • Accessory Dwelling Units (ADUs): The element indicates the City modified its zoning code to ease barriers to the development of ADU’s. However, after a cursory review of the City’s ordinance, HCD discovered several areas which are not consistent with State ADU Law. HCD will provide a complete listing of ADU non-compliance issues under a separate cover. As a result, the element should add a program to update the City’s ADU ordinance in order to comply with state law. For more information, please consult HCD’s ADU Guidebook, published in December 2020, which provides detailed information on new state requirements surrounding ADU development. 5. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Land Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls. The analysis should specifically address requirements related to parking, heights, lot coverage, minimum lot size and limits on allowable densities. The analysis should address any impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities and include programs to address identified constraints. For example: • The element must identify and analyze heights and maximum lot coverage are allowed in the P-A, CN, C-N(RHD), C-V, CH-1, and CH-2 zones as well as the maximum density allowed and open space requirements in the C-N(RHD) zone. • The element should also analyze the 40 percent maximum lot coverage (including all impervious surfaces), setbacks, and two-story height limits in multifamily zones as constraints on development and add programs as appropriate. • The element should identify and analyze the specific findings in the P-A zone when more than 50 percent of the total floor area is residential (the identified note City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 8 October 26, 2022 is missing on page 4-5) and whether the CUP requirements are constraints for multifamily development in that zone. • The element must identify the allowed densities in the R-M 5,000, R-M 4,000, and R-M 3,000 zones. • Page 4-10 lists densities for multifamily based on population density per acre as well as dwelling units per acre. The element must analyze how the population density requirement is determined for a project, how it interacts with the dwelling unit per acre standard, and weather it acts as a development cap for proposed projects. • The element should discuss minimum lot sizes and any impacts on identified sites to accommodate the RHNA. • The element must analyze the parking requirements (p. 4-13) of one garage space and 1.5 additional spaces per dwelling unit or one garage space and an additional 0.5 space for a one-bedroom unit. This is particularly important since parking requirements were identified as a constraint in the prior housing element and the program appears to only have been partially implemented. Should the analysis determine the parking standards or permit procedures are a constraint on residential development, it must include a program to address or remove any identified constraints. Fees and Exaction: While the element includes the cumulative impact of fees on single family and multifamily development on a per unit basis, it should clarify whether the analysis includes all impact fees, including non-locally controlled fees or modify the analysis as appropriate. Local Processing and Permit Procedures: The element must describe the processing and permit procedures for a typical single-family and multifamily development. The analysis should address the approval body, the number of public hearings if any, approval findings, design review and any other relevant information. The analysis should address impacts on housing cost, supply, timing, feasibility, and approval certainty. Measure G: While the element describes Measure G (p. 4-24) which only allows the City to amend residential and parkland designations by the vote of the people, it does include some exemptions for certain state laws. The element must clarify whether the rezone needed to accommodate the City’s RHNA is an exemption. If the rezone is not exempt, the element must add a program to make the zoning available pursuant to statutory requirements, including timing provisions. In addition, the element should analyze the impacts of the voter approval on housing supply, cost, timing and feasibility and add or modify programs as appropriate to address identified constraints. Codes and Enforcement: The element must describe and analyze any local amendments to the building code and their degree and type of enforcement for impacts on housing supply and affordability. Constraints on Housing for Persons with Disabilities: The element must include an analysis of zoning, development standards, building codes, and process and permit City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 9 October 26, 2022 procedures as potential constraints on housing for persons with disabilities. The analysis must describe the findings and approval procedure for the City’s Reasonable Accommodation procedure. In addition, the element must describe and analyze how group homes for six or fewer and seven or more are allowed within the City and add programs as appropriate. For your information, zoning should simply implement a barrier-free definition of family instead of subjecting, potentially persons with disabilities, to special regulations such as the number of persons, population types and licenses. These housing types should not be excluded from residential zones, most notably lower-density zones, which can constrain the availability of housing choices for persons with disabilities. Requiring these housing types to obtain a special use or CUP could potentially subject housing for persons with disabilities to higher discretionary exceptions processes and standards where an applicant must, for example, demonstrate compatibility with the neighborhood, unlike other residential uses. C. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).) To have a beneficial impact and achieve the goals and objectives of the housing element, program should have specific commitment, discrete timing (e.g., at least annually) and numerical objectives where appropriate. Examples of programs to be revised include: • Programs 1-2.3 (Encourage and Facilitate Lot Consolidation), 3-1.1 (Pre- Approved Plan Sets for ADUs), and 3-1.2 (Reduced Fees for ADUs and JADUs): The programs must include proactive outreach during the planning period. • Program 2-2.1 (Community Education Regarding the Availability of Rehabilitation Programs): The program should include specific timing related to outreach during the planning period. In addition, the element should modify the identified quantified objectives to match the metric associated with this program. • Program 2-2.2 (Code Compliance Program): The program should include specific timing tied to enforcement as well as program implementation. • Program 3-1.4 (Educational Campaign and Information): The program should include specific timing related to outreach during the planning period. • Program 5-2.2 (Develop Comprehensive Outreach Strategy for Housing): This program should include specific timing of when the strategy will be updated. In addition, the program should include proactive outreach throughout the planning period. 2. Identify actions that will be taken to make sites available during the planning period with City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 10 October 26, 2022 appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).) As noted in Finding B4, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows: Program 1-1.1 (Adequate Sites for Housing or RHNA Rezoning): The program must commit to allowable densities, appropriate development standards to facilitate maximum densities. The program must also commit to all of the by-right requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i)., including but not limited to permitting development with 20 percent or more of the units are affordable to lower income households without discretionary action, requiring minimum densities, accommodating at least 16 units per site and residential performance standards. Program 1-2.4 (Lot Consolidation Program): The program must include a commitment to establish incentives by a specified date, beyond “consider appropriate” incentives, especially with the strong reliance on lot consolidation to accommodate the lower- income RHNA. In addition, the program should be modified based on the outcomes of the review and revise of the previous program and include a mid-term evaluation of the effectiveness of the program and commit to adjustment as necessary. This is particularly important given the apparent lack of implementation or outcomes in the prior planning period. Program 3-2.4 (Low Barrier Navigation Center): The program should clarify zoning will be updated to permit these uses in multifamily zones as well as mixed use zones pursuant to Government Code section 65660. Sites Identified in Prior Planning Periods: The element identifies sites from the prior planning period and as a result must include a program to make the site available or remove the site. The program must be implemented within the first year or three years of the planning period and commit to zoning that will meet the density requirements for housing for lower-income households and allow by-right approval for housing developments that include 20 percent or more of its units affordable to lower-income households. City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 11 October 26, 2022 3. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderate- income households. (Gov. Code, § 65583, subd. (c)(2).) Program 4-3.1 (Development of Housing for ELI): This program should describe what additional incentives are provided for developments with ELI units. In addition, the element should include specific time of when the incentives will be implemented and steps beyond meeting with developers such as annually identifying development opportunities. Special Needs: While the element includes programs to assist in the development of very low-, low-, and moderate-income and some special needs households, it must also include a program(s) to assist in the development of housing for all special needs households (e.g., elderly, homeless, farmworkers, persons with disabilities, female- headed households). Program actions could include proactive outreach and assistance to non-profit service providers and developers, prioritizing some funding for housing developments affordable to special needs households and offering financial incentives or regulatory concessions to encourage a variety of housing types. 4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding B5, the element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. In addition, the element should be revised as follows: Program 3-2.1 (Increase C-H Height Limit): The program should clarify whether the 35- foot height limit in the C-H zones will allow 3 story developments by-right. Program 3-2.2 (Reduced Setbacks for Smaller Parcels): The element should describe what the setbacks for small parcels will be reduced to, and what size parcels would qualify for the reduction. Program 4-1.1 (Continue to Implement Density Bonus Ordinance): The program should be revised to commit to steps beyond an annual assessment and revise the ordinance by a specified date. 5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) City of Saratoga’s 6th Cycle (2023-2031) Draft Housing Element Page 12 October 26, 2022 As noted in Finding B1, the element must include a complete analysis of AFFH. The element must be revised to add goals and actions based on the outcomes of a complete analysis. D. Public Participation Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While the element includes a summary of the public participation process, the element should also demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element. The element could describe the efforts to circulate the housing element among low- and moderate-income households and organizations that represent them and to involve such groups and persons in the element throughout the process. The element could also describe which organizations participated and provided feedback out of the organizations that were contacted and describe how the City notified organizations of small group meetings. The element should also describe whether translations services were available throughout the process. In addition, while the element describes how public comments were received and incorporated during the 30-day review period, it should summarize and describe how public comments were considered and incorporated throughout the entire review process. STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916)263-2911 / FAX (916) 263-7453 www.hcd.ca.gov October 6, 2022 Trudi Ryan, Director Community Development Department City of Sunnyvale 456 West Olive Avenue Sunnyvale, CA 94086 Dear Trudi Ryan: RE: City of Sunnyvale’s 6th Cycle (2023-2031) Draft Housing Element Thank you for submitting the City of Sunnyvale’s (City) draft housing element update received for review on July 8, 2022. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by a conversation on September 6 and 22, 2022 with you, Ryan Dyson, Housing Specialist; Jenny Carloni, Housing Officer; and your consultants, Chelsey Payne, Kim Untermoser, and Rebecca Pope. In addition, HCD considered comments from YIMBY Law, Livable Sunnyvale, TransForm, Greenbelt Alliance, and SV @ Home, pursuant to Government Code section 65585, subdivision (c). The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law. Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill ATTACHMENT 7 Trudi Ryan, Director Page 2 (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at: https://www.opr.ca.gov/planning/general-plan/guidelines.html. HCD appreciates the hard work and dedication you, Ryan Dyson, Housing Specialist; Jenny Carloni, Housing Officer; and your consultants, Chelsey Payne, Kim Untermoser, and Rebecca Pope, provided in preparation of the City’s housing element and looks forward to receiving the City’s adopted housing element. If you have any questions or need additional technical assistance, please contact Shawn Danino, of our staff, at shawn.danino@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager Enclosure City of Sunnyvale’s 6th Cycle (2023-2031) Draft Housing Element Page 1 October 6, 2022 APPENDIX CITY OF SUNNYVALE The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/building-blocks and includes the Government Code addressing State Housing Element Law and other resources. A. Housing Needs, Resources, and Constraints 1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Disproportionate Housing Needs, Including Displacement Risk: The element reports data on housing conditions and persons experiencing homelessness; however, it should also utilize local data and knowledge and analyze the patterns and magnitude of needs throughout the City. For example, the element discusses a housing condition survey and observations by City staff but could also discuss neighborhood planning areas with higher and less concentrations of housing rehabilitation needs. Further, the element briefly mentions the number of persons experiencing homelessness and disproportionate needs relative to protected characteristics such as disability and race but should also discuss patterns (areas of higher and lower need) throughout the City and access to opportunities such as shelter and services. Affirmatively Furthering Fair Housing (AFFH) and Identified Sites: The element provides some analysis of the identified sites and socio-economic concentrations and brief statements on areas such as displacement vulnerability in the downtown area and high proportion of the regional housing need allocation (RHNA), including lower-income in northern planning areas. However, it should provide some quantification by area and evaluate the impacts on the existing patterns of socio-economic characteristics. For example, the element should discuss the impacts of isolating a large portion of the RHNA by income group or lack of RHNA by income group in other planning areas. A complete analysis should fully assess how the site inventory is expected to improve and/or exacerbate fair housing conditions. This analysis should address the location, number of units by income group, magnitude of the impact and any isolation of the RHNA and could consider topics such as existing or proposed anti-displacement policies and place-based investments, and how such strategies will improve fair housing conditions when paired with the identified sites. Based on the outcomes of this analysis, the element should add or modify programs. City of Sunnyvale’s 6th Cycle (2023-2031) Draft Housing Element Page 2 October 6, 2022 Local Data and Knowledge and Other Relevant Factors: The element provides demographics and information on housing choice vouchers and location of publicly supported affordable housing. However, the purpose of local data and knowledge and other relevant factors is to complement state and federal data and complete an analysis of fair housing conditions. The element could consider knowledge from City officials such as the Neighborhood Preservation staff and other related planning and needs assessment documents such as infrastructure assessments or capital improvement programs. Other relevant factors could include past and current land use and zoning practices (e.g., low intensity, specific plans, inclusionary) and state, federal and local investments, including transportation relative to socio-economic patterns. Contributing Factors to Fair Housing Conditions: Based on a complete analysis, the element should re-assess and prioritize contributing factors. Goals, Priorities, Metrics, Actions & Milestones: While the element provides additional analysis and identifies contributing factors to fair housing issues, it does not include sufficient action to overcome patterns of segregation and foster inclusive communities. As a result, programs must be added as appropriate to sufficiently respond to contributing factors to fair housing issues. In addition, all actions related to AFFH must contain specific commitment, timing, geographic targeting and metrics or numerical targets. The element may, for example, as discussed on the August 11, 2022 call, revise Program H20 (Zoning Code Amendments) to make a firm commitment for removing design review requirements and establishing development standards for missing middle housing types that are feasible in higher opportunity or income areas. The element may also, for example, revise Program H20 to allow SROs by right in additional zones, for example in the El Camino Real Specific Plan Area. To improve housing opportunities for persons experiencing homelessness or lower-income households employed in the City, the element could also evaluate zones to expand residential uses, including the North Washington District or target investments such as Project Homekey in areas of higher need and opportunity. The City may also, for example, discuss its efforts to improve pedestrian safety and active mobility as a way to increase access to opportunity. Additionally, the element should commit to assessing and revising programs through a mid-cycle review. Please see HCD’s AFFH memo for more information: https://www.hcd.ca.gov/community-development/affh/docs/affh_document_final_4-27- 2021.pdf#page=23. 2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).) Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) City of Sunnyvale’s 6th Cycle (2023-2031) Draft Housing Element Page 3 October 6, 2022 Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).) Extremely Low-Income (ELI) Households: The element includes analysis regarding ELI households such as the number of households and overpayment but must also identify projected housing needs. The projected housing need for ELI households can be calculated by using available census data to determine the number of very low-income households that qualify as ELI households or presume that 50 percent of the RHNA for very low-income households qualify as ELI households. Overpayment: The element must quantify and analyze the number of lower-income households overpaying by tenure (i.e., renter and owner). Housing Costs: While the element includes estimated rents for residents, it utilizes American Community Survey (ACS) data. The element should supplement census data with other sources (e.g., local knowledge). Special Needs Populations: While the element quantifies the City’s special needs populations, it must also analyze their special housing needs, particularly for persons with disabilities, large households, and female-headed households. For a complete analysis, the element should discuss challenges faced by the population, the existing strategies, and resources to meet those needs, an assessment of any gaps in resources and magnitude of needs, and proposed policies, programs, and funding to help address those needs. 3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Progress in Meeting the RHNA: The City’s RHNA may be reduced by pending, approved, or completed projects; however, the element must demonstrate their availability in the planning period. The element lists many projects by affordability and status in various stages of the entitlement process, including several projects that are pending approval. The element should generally discuss any remaining steps, barriers to development, phasing, build out or planning horizons and other relevant factors to demonstrate their availability in the planning period. Realistic Capacity: The element describes a realistic capacity of 9,626 units as part of the Moffett Park Specific Plan, 3,852 of which will be available to lower-income households, with a realist capacity of 100 percent of allowable densities in the planning period. However, the element must clarify, as stated on the September 22, 2022 call, the build out period for the Specific Plan and provide supporting evidence that these units will be constructed during the planning period. City of Sunnyvale’s 6th Cycle (2023-2031) Draft Housing Element Page 4 October 6, 2022 Additionally, the element should support or adjust realistic residential capacity assumptions in the Downtown Specific Plan and El Camino Real Specific Plan. For the Downtown Specific Plan, the element should support the assumption of 100 percent of maximum base densities based on land use controls and recent trends by affordability. This analysis may utilize minimum density policies (Policy H-1.4). For the El Camino Real Specific Plan, the element should discuss assumptions relative to the 10 to 15 year build out period that exceed the 8 year housing element planning period. Suitability of Nonvacant Sites: The element must include analysis demonstrating the potential for additional development on nonvacant sites. While the element mentions underutilized sites were identified based on assessed value (AV) and floor area (FAR) ratios, it must support the validity of these assumption in demonstrating the potential for redevelopment. For example, the element could utilize recent development activity. In addition, the element should consider additional factors such as building age, structural conditions, expressed interest in residential development and reflect those values in the sites inventory. Finally, the element should account for the extent existing uses impede additional residential development including market demand for the existing use and existing leases or contracts that would perpetuate the existing use or prevent additional residential development. In addition, if the housing element relies upon nonvacant sites to accommodate more than 50 percent of the RHNA for lower-income households, the housing element must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period (Gov. Code, § 65583.2, subd. (g)(2).). Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA. Environmental Constraints: While the element generally describes environmental constraints were considered (p. C-68), it must also describe any other known environmental or other conditions (e.g., shape, easements, contamination) that could impact housing development on identified sites in the planning period. Priority Water and Sewer: For your information, water and sewer service providers must establish specific procedures to grant priority water and sewer service to developments with units affordable to lower-income households. (Gov. Code, § 65589.7.) The element should demonstrate compliance with this requirement or include a program to establish a procedure by a specified date. Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and- community-development/housing-elements for a copy of the form and instructions. The City can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance. City of Sunnyvale’s 6th Cycle (2023-2031) Draft Housing Element Page 5 October 6, 2022 Zoning for a Variety of Housing Types: • Accessory Dwelling Units (ADUs): HCD records indicate permitted ADUs of 29 in 2018, 17 in 2019, 56 in 2020, and 30 in 2021, figures that are inconsistent with those in the element submitted. The element should reconcile these numbers, resubmit Annual Progress Reports (APRs) and adjust assumptions as appropriate. In addition, after a cursory review of the City’s ordinance, HCD discovered some areas which are not consistent with State ADU Law. HCD will provide a complete listing of ADU non-compliance issues under a separate cover. As a result, the element should add a program to update the City’s ADU ordinance to comply with state law. • Single Room Occupancies (SRO): The element describes the zones in which SROs are currently permitted. However, given the success of SROs in providing housing for ELI households, the element should also describe how zoning will encourage and facilitate SRO development. 4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Land Use Controls: The element identifies many land use controls as potential constraints on a variety of housing types. However, the analysis should analyze land use controls independently and cumulatively with other land use controls. The analysis should specifically address requirements related to floor area ratios, open space, setbacks, height limits, parking and limits on allowable densities. The analysis should address any impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities and include programs to address identified constraints. Fees and Exactions: The element includes some discussion of required fees for single family and multifamily housing development, including impact fees. However, the element must analyze their impact as potential constraints on housing supply and affordability. For example, the analysis could identify the total amount of fees on ADUs, Junior Accessory Dwelling Units (JADUs), and other forms of small housing, and analyze their proportion to the development costs for both single family and multifamily housing. Specifically, the element must analyze the use of its $95,832 park in-lieu fee applied to lot splits in addition to all “Sense of Place” fees provided. For additional information and a sample analysis and tables, see the Building Blocks at http://www.hcd.ca.gov/community-development/building-blocks/constraints/fees-and- exactions.shtml. City of Sunnyvale’s 6th Cycle (2023-2031) Draft Housing Element Page 6 October 6, 2022 Processing and Permit Procedures: While the element provides a description of the types of permits required for housing developments (p. 6-31), it must describe and analyze the permits’ processes, identify what is reviewed, typical findings and approval procedures by zone and housing type. The analysis must specifically address the threshold for a conditional use permit on multifamily uses and special development permits. The analysis must evaluate impacts on housing supply (number of units), costs, timing, feasibility and approval certainty. Persons with Disabilities: The element identifies the definition of family and concludes the definition is not a constraint on housing for persons with disabilities. However, the element should evaluate the impacts of the provision for an “individual or group is in possession of the entire unit” and include a program to address identified constraints. B. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).) Some programs list implementation timelines as “ongoing.” While this may be appropriate for some programs, programs with specific implementation actions must include completion dates resulting in beneficial impacts within the planning period. Examples include Program H6 (Affordable Housing Development Assistance) and H29 (Programs to Address Homelessness). Additionally, several programs and actions have timelines that should be moved earlier in the planning period to ensure a beneficial impact. Examples include Programs H4 (ADU Toolkit with Preapproved Plans and DUO Units), H17 (Open Space Requirements), H18 (Review Development Fees). Additionally, programs must have specific commitment to clear outcomes or deliverables. Several programs include actions with no description of how those actions will be implemented (e.g., “support”, “study”, “explore”, “evaluate”, etc.,). For example, Program H18 states that the City will "review and consider whether reductions to the park in-lieu fee... and development impact fees are appropriate". However, it does not state when and to what extent these fees will be reduced. Programs should be amended, to include specific commitment to a housing related outcome. Examples include Programs H3 (Increase Affordable Housing in High Resource Areas), H12 (Preservation of Government Assisted Housing, H16 (El Camino Real Specific Plan Active Ground Floor Requirement), H17 (Open Space Requirements) H18 (Review Development Fees), H19 (Adaptive Reuse), H20 (Preventing Displacement / Homelessness), H29 (Programs to Address Homelessness), H32 (New Age Friendly Housing), H35 (Prioritize Capital Improvement Program in low resource areas). City of Sunnyvale’s 6th Cycle (2023-2031) Draft Housing Element Page 7 October 6, 2022 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).) As noted in Finding A3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. 3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Finding A4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. In addition, Program H20 (Zoning Amendments) commits to amend zoning (“as necessary”) to ensure requirements for group homes (6 or fewer and seven or more persons) are consistent with fair housing requirements. These uses, in most cases, are either excluded from residential zones or subject to a use permit which typically acts as a constraint on housing for persons with disabilities. The Program should specifically commit to amend zoning to allow these uses in all residential zones and replace or revise procedures to promote objectivity and approval certainty. 4. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding A1, the element must include a complete assessment of fair housing. Based on the outcomes of that analysis, the element must add or modify programs. Programs to AFFH should go beyond status quo actions, include specific commitment, timing, geographic targeting and metrics or numerical targets and should, City of Sunnyvale’s 6th Cycle (2023-2031) Draft Housing Element Page 8 October 6, 2022 as appropriate, address housing mobility, encourage new housing choices in higher resource areas, improve place-based strategies toward community revitalization and protect existing residents from displacement. 5. The housing program shall preserve for low-income household the assisted housing developments identified pursuant to paragraph (9) of subdivision (a)... (Gov. Code, § 65583, subd. (c)(6).) Program H12 states an objective to preserve 46 at risk units and notes the importance of facilitating long-term preservation of existing below market rate housing, committing to “track affordability agreements” (p. 2-10). However, the program should make a specific and firm commitment to maintain the long-term affordability of these units, including compliance with all noticing requirements, coordination with qualified entities and assistance with funding and support, education and assistance for tenants. 6. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent... (Gov. Code, § 65583, subd. (c)(7).) Program H4 (ADU Toolkit) should commit to monitor permitted ADUs and affordability every other year and take appropriate action such as adjusting assumptions or rezoning within a specified time (e.g., 6 months) if assumptions are not realized. In addition, as noted in Finding A3, the Program should commit to amend the ordinance as necessary to comply with ADU law by a specified date. C. Public Participation Local governments shall make a diligent effort to achieve public participation oof all segments of the community in the development of the Housing Element and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) While The City made extensive efforts to reach the public, including hosting events and meeting with key stakeholders and summarizing community feedback, it should also discuss how input was incorporated into the housing element. In addition, HCD received comments with many meaningful and valuable suggestions related to the housing element and HCD strongly encourages the City to consider and address these comments, including revising the document as appropriate. Examples include park-in-lieu fees for lot splits, timing and affordability of housing in specific plans (e.g., Moffett Park Specific Plan), specific commitment with metrics to promote housing choices or affordability in relatively higher income neighborhoods, additional suitable sites (e.g., Village Centers along Hollenbeck Avenue and Homestead Road), parking and facilitating missing middle housing types throughout the City. From: Lee Fagot <> Sent: Monday, October 31, 2022 9:30 PM To: Laurel Prevetti <LPrevetti@losgatosca.gov>; Arn Andrews <aandrews@losgatosca.gov>; Rob Rennie <RRennie@losgatosca.gov>; Maria Ristow <MRistow@losgatosca.gov>; Marico Sayoc <MSayoc@losgatosca.gov>; Mary Badame <MBadame@losgatosca.gov>; Matthew Hudes <MHudes@losgatosca.gov> Cc: Joel Paulson <jpaulson@losgatosca.gov> Subject: Item NOT on the Agenda for Nov 1 Council Meeting Council and Staff, I regret I am not able to join the meeting Nov 1, but want to submit this message, as a resident of Town, not representing anyone but myself, for your consideration of an item that was not on the Agenda, but I believe needs further consideration by the Council very soon: Several concerns have been expressed by citizens that the far reaching impact of the increased housing opportunities listed throughout Town as submitted to HCD to satisfy RHNA allocation for development, or in some sites, for redevelopment for more housing, will have a very deleterious impact on our community: •The final version of the submission was NOT reviewed by the Town Council nor citizens, and while not required by law, voids the kind of oversight citizens expect in their Town government. •Confusion whether the Town listed sites, heights and densities can be changed once ratified in the final GP or Housing Element. Folks misunderstood that these could be reduced at a later date, but in fact can only be increased or maintained. •Townsfolk were led to believe there was a “90 day allowance” for revisions to the HCD submission after Jan 31, 2023. This communication error needs to be made public - no such grace period. •Most importantly, the changes to all the impacted designations for sites density and height should NOT be Town-wide, but limited to the individual sites to be specified in the document. Not doing so allows building to be done any place in the labeled “land use designation” once the new zoning laws are approved. •There is an absence of specifying how identifying a variety of sites helps achieve the various housing needs for different income levels, and this should be better defined in the draft. The consequence of the Council not reviewing, with public participation before submission, has lead to the confusion I believe each of you have witnessed, especially, while also trying to develop the new 2040 GP at the same time, which necessitated citizens to take action with the referendums. And most importantly, the submitted document to HCD provided the possibility of “overdevelopment”, yes, 12,000 + new housing units, in the 2040 GP due not specifying exactly where in the zones the sites will be identified. Consider also the changes possible in Town due to SB 35 and other bills coming out of Sacramento usurping local governance in housing as developers only have to meet the current codes at the time of development. Recognize this next 8 year RHNA allocation of 1993 + 15% is already more than 3 times any prior target or even achieved goal. More clarity, more Council and community review for consistency is necessary, and ASAP. Approving all the sites with the false and wishful thinking “it won’t get built” is not the way we want our local government to function. For example, full build out in MIXED USE COMMERCIAL design alone, at the new Density, would achieve the assigned 1993 + target. ATTACHMENT 8 Therefore, please convene a special workshop ASAP to demand the two Elements under review to put in place the design and density targets ONLY to the specific sites, not all the acreage in those zones. Do this now so you can amend the submission currently being reviewed by HCD so you can meet the Jan 31, 2023. Remember too, the committees and commissions are additional resources you can bring to work with you on this task. We have a competent and hard working Town Staff and our Council has committed significant time and energy to work for our community. THANK YOU. And, now, please channel these resources to this housing number challenge so our Town maintains its SMALL TOWN and vibrant character. The 2040 GP can be dealt with after you sort out the sites and design elements in this new - 1993 targeted - RHNA allocation. Thank you again, and know folks are appreciative of how challenging all this is, and wish you success over these next few months with this issue and learning how the process is going. Lee Fagot . From: Phil Koen Sent: Saturday, October 29, 2022 7:03 AM To: Laurel Prevetti <LPrevetti@losgatosca.gov>; Joel Paulson <jpaulson@losgatosca.gov> Cc: Matthew Hudes <MHudes@losgatosca.gov>; Mary Badame <MBadame@losgatosca.gov>; Maria Ristow <MRistow@losgatosca.gov>; Marico Sayoc <MSayoc@losgatosca.gov>; Rob Rennie <RRennie@losgatosca.gov>; Gabrielle Whelan <GWhelan@losgatosca.gov>; Rick Van Hoesen () <>; David Weissman <>; Lee Fagot <>; ; ; ; Brent Ventura <>; 'Jim Foley' <> Subject: 120 day grace period and statutory deadline of January 31, 2023 Dear Ms. Prevetti, At the Town Council meeting on October 18, the Staff memo for agenda item 11 (attached) stated, “The Town has a legal obligation to adopt the final Housing Element within 120 days of the statutory deadline of January 31, 2023.” This suggests the Town has until May 31, 2023, to adopt a compliant Housing Element. However, this is incorrect and is based on a fundamental misunderstanding of statutory provisions and a misunderstanding of the authority California’s Department of Housing and Community Development (HCD) under the Housing Accountability Act (HAA). HCD has confirmed that there is no 120-day grace period as suggested by the Staff report. As pointed out in the attached notification from HCD, the Town has a legal obligation to adopt a compliant Housing Element by January 31, 2023. If an adopted housing element is not found substantially compliant by HCD as of the statutory deadline of January 31, 2023, it will be out of compliance and the onerous, “builder’s remedy,” will be in effect, along with all other consequences such as ineligibility for certain funding. We also have attached two technical notes from the Association of Bay Area Governments (ABAG) which further discusses the timeline for adoption of the Housing Element and the “builder’s remedy”. The ABAG technical notes point out that HCD approval is not required for a housing element to be found substantially compliant with State Law. The Town may adopt its own findings explaining why its housing element is substantially compliant with State law despite HCD’s contrary findings. However, it is extremely difficult to see how the Town Council could legally and in good faith make such a finding in the absence of a certified 6th cycle Housing Element. The Staff report to the Housing Element Advisory Board (HEAB) dated October 14, 2022 (attached) also incorrectly mentions, “the Town’s legal obligation to adopt a final Housing Element within 120 days of the statutory deadline of January 31, 2023.” The memo goes on to set forth, “next steps,” once the Town receives HCD’s written comment letter on the initial draft of the Housing Element, which draft was submitted to HCD for review on October 14, 2022. Based on the HCD’s published guidelines, the HCD’s written comment letter is expected to be received within 90 days of the submittal date. That suggests the Town will receive HCD’s written comment letter on or around January 12, 2023. This would leave the Town only 13 business days to complete all of the tasks outlined in the Staff report to the HEAB. Based on the facts as we know them today, it is highly likely – if not almost certain – that the Town will not meet the statutory deadline of January 31, 2023. This certainly heightens the possibility that the powerful Builder’s Remedy will soon be available in the Los Gatos housing market. We strongly suggest that the Staff review all of the implications of missing this very important statutory deadline and advise both the Town Council and the HEAB of the consequences. Lastly, we have attached the Planning Commission minutes of the April 13, 2022, meeting. At that meeting, LGCA’s legal counsel, Matthew Francois, addressed the Planning Commission, urging it to, “first focus on the mandatory changes to the Housing Element due in January 2023.” The LGCA was keenly aware of the statutory deadline and was very concerned as of April 2022 the Town was running far behind other jurisdictions in preparing a 6th cycle Housing Element. Our concern was driven by the fact that as of April 13, 2022, the HEAB had cancelled 6 of the 7 meetings that had been scheduled since January 1, 2022. It is our view that the Town’s current problematic situation could have been avoided if as we suggested in April the Staff had pivoted its focus and energy to completing the Housing Element (which has a hard deadline of January 31) and away from the General Plan update, which has no statutory completion date. Regrettably, this did not happen, and the Town must now scramble to deal with the consequences of this lapse. Thank you. Los Gatos Community Alliance September 2022 1 DISCLAIMER: This document is intended to provide general information and does not constitute legal advice. Additional facts, facts specific to a particular situation, or future developments may affect the subjects discussed in this FAQ. Seek the advice of your attorney before acting or relying upon the following information. Timing Requirements for Adoption of the Housing Element and Required Rezoning Technical Memo, August 2022 AB 1398 (Chapter 358, Statutes of 2020) amended the provisions of state housing element law related to the implications of adopting a housing element after the due date. The current deadline for jurisdictions in the nine counties that are members of the Association of Bay Area Governments (ABAG) to adopt the housing element is January 31, 2023. Previous Cycle Rules To understand the new rules for adoption of a housing element, it may be helpful to compare them with those adopted in the last housing element cycle, the fifth cycle, when housing elements were due in January 2015. In the fifth cycle, if housing elements were not adopted by 120 days after the due date, the local jurisdiction was required to prepare a new housing element every four years, rather than every eight years. Those jurisdictions that adopted housing elements more than 120 days after the due date were required to adopt a mid-cycle housing element in 2019. New Sixth Cycle Rules AB 1398 has eliminated any requirement for a four-year housing element once the Department of Housing and Community Development (HCD) has found a community’s sixth cycle housing element in conformance with state law (Government Code1 Section 65588(e)(4)(A)). Instead, state law sets deadlines for housing element adoption and rezoning and consequences if those deadlines are not met. 1 Subsequent citations are to the Government Code unless otherwise stated. September 2022 2 Housing Element Adoption and Timeline to Rezone If a housing element is adopted and found by HCD to be in compliance with state law by May 31, 2023, then the jurisdiction has approximately three years after the date it adopts its housing element to complete all rezoning required to provide adequate sites (Section 65583(c)(1)(A)).2 If HCD does not find a housing element to be in compliance by May 31, 2023, then all rezoning required to provide adequate sites must be accomplished by January 31, 2024 (Section 65588(e)(4)(C)(i)). o Note that HCD has 60 days to review an adopted housing element (Section 65585(b)(3)). Any community desiring to have three years to adopt the necessary zoning should adopt a compliant housing element by April 1, 2023. If a housing element is adopted after January 31, 2024, HCD cannot find it in compliance with state law until all necessary rezoning is adopted (Section 65588(e)(4)(C)(iii)). In the Southern California Association of Governments (SCAG) region, the due date for Housing Elements, October 15, 2021, has passed, and most jurisdictions are still working with HCD to receive certification. Rezoning of Adequate Sites If rezoning is not complete by the appropriate rezoning deadline as stated above, HCD is authorized to: Revoke its findings of compliance until rezoning is complete; and/or Refer the agency to the Attorney General (Section 65585(i), (j)). HCD has adopted an additional policy relating to rezoning sites for lower income housing: If zoning required to provide adequate sites for lower income housing is adopted after the housing element due date of January 31, 2023, it must provide for “by right” approval. o “By right” approval means that a housing project that does not require a subdivision and that contains 20 percent lower income housing is exempt from the California Environmental Quality Act (CE A jurisdiction may require design review based on objective standards, but only if its “by right” ordinance requires design review approval (Section 65583.2(i)). 2 The due date for these jurisdictions is either three years after the date the jurisdiction adopted its housing element, or three years after the date that is 90 days after the jurisdiction received HCD’s comments on its draft element, whichever is earlier. September 2022 3 Limitations on Denial of Certain Housing Projects Once January 31, 2023 passes without adoption of a sixth cycle housing element, the locality’s adopted fifth cycle housing element may no longer comply with all provisions of state housing element law. This may have impacts on a jurisdiction’s ability to deny housing projects. Some factors that may be relevant include whether the housing project includes a minimum of either 20% or 49% affordable units. Other laws, such as the Housing Accountability Act and SB 35 (2017), may also affect a jurisdiction’s ability to deny a housing project. Consult with your jurisdiction’s attorney before considering the denial of a housing project. Eligibility for Certain Funding Programs If a housing element is not consistent with state law or not found to be consistent by HCD, the jurisdiction may not be eligible for certain funding programs. Funding programs that may require the local jurisdiction’s adopted housing element to be in compliance with HCD include3: Community Development Block Grant Program Infill Infrastructure Grant Program Transit Oriented Development Program Local Housing Trust Fund Program Affordable Housing and Sustainable Communities Program Permanent Local Housing Allocation Program Caltrans Sustainable Communities Grant Program MTC’s One Bay Area Grant (OBAG) Program 3 This list may not be exhaustive. Please check the regulations and guidelines for any funding program your jurisdiction is considering. State funding programs that reward or incentivize projects in jurisdictions with compliant housing elements include: Local Partnership Program: Projects are evaluated on how they advance housing element goals. Transit and Intercity Rail Capital Program: Projects must document how transit ridership growth is supported by housing policies including evidence of compliance with state-required housing plans. Active Transportation Program: Infrastructure projects must address their potential to support existing and planned housing, and planning projects must be consistent with local housing policies. HOME Investment Partnerships Program: Applications receive points for housing element compliance. September 2022 4 Solutions for Congested Corridors Program: Projects must address how they support infill development, which may include identifying housing element policies that streamline multifamily housing development. Some Housing Element Dates to Remember January 31, 2023 Deadline to have Housing Elements adopted by City Council or Board of Supervisors Any rezonings that happen after this date, or need to happen after this date, must provide for "by right" approval of sites designated for lower income housing. May 31, 2023 (120 days after the housing element adoption deadline) If HCD finds a housing element in compliance by May 31, 2023, the jurisdiction has approximately 3 years from the date of adoption to complete all rezoning. If a housing element is NOT found in compliance by May 31, 2023, all rezoning must be completed within one year of the adoption deadline. January 31, 2024 (One year after the original adoption deadline) Rezoning deadline for jurisdictions that did not meet the May 31, 2023 compliance deadline.4 Starting January 31st, HCD will not certify any new housing elements, unless the required zoning is in place. 2026 (Three years after compliant housing element adoption) Rezoning deadline for jurisdictions that meet the May 31, 2023 compliance deadline.5 4 If rezoning is not complete by the appropriate deadline, HCD is authorized to (1) revoke its findings of compliance until rezoning is complete and (2) refer the agency to the state attorney general. 5 If rezoning is not complete by the appropriate deadline, HCD is authorized to (1) revoke its findings of compliance until rezoning is complete and (2) refer the agency to the state attorney general. 1 DISCLAIMER: This document is intended solely as a technical overview of the provisions of certain provisions of the Housing Accountability Act. It is not intended to serve as legal advice regarding any jurisdiction's specific policies or any proposed housing development project. Local staff should consult with their city attorney or county counsel when determining the applicability of these provisions to any proposed housing development project in their jurisdiction. The “Builder’s Remedy” and Housing Elements There have recently been press reports regarding the so-called “Builder’s Remedy” that can be used to avoid local zoning requirements when a locality’s housing element does not substantially comply with state law. These reports have stated that, if a locality has a noncompliant housing element the city or county must approve the housing development project, regardless of the local zoning. The “Builder’s Remedy” arises from the Housing Accountability Act (Government Code Section 65589.5 1; the HAA). This paper describes the provisions of the HAA that constitute the “Builder’s Remedy” and how they may apply to a proposed housing development project. How Does the “Builder’s Remedy” Work? The HAA requires that cities and counties make one of five findings to deny, or to apply conditions that make infeasible, a housing development project “for very low, low- or moderate-income households” or an emergency shelter. (Section 65589.5(d).) A housing development project with 20 percent of the total units available to lower income households or with all of the units available for moderate or middle income households may qualify as housing “for very low, low- or moderate income households” (see detailed description below). The five findings which would allow denial of an eligible project can be summarized as follows: 1. The city or county has met or exceeded its Regional Housing Needs Allocation (RHNA) for the proposed income categories in the development. 2. The housing development or emergency shelter would have a specific adverse impact on public health and safety, and there is no way to mitigate or avoid the impact without making the development unaffordable. The impact must be based on objective, written public health or safety standards in place when the application was deemed complete. 3. The denial or condition is required to meet state or federal law, and there is no feasible method to comply without making the development unaffordable. 4. The project is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agriculture or resource preservation or there are not adequate water or sewage facilities to the serve the project. 1 All future references are to the Government Code unless otherwise specified. Regional Housing Technical Assistance Program 2 5. The project is inconsistent with both the zoning ordinance and the land use designation as specified in any general plan element. However, a city or county cannot make this finding if it has not adopted a housing element in substantial compliance with state law. If a locality has not adopted a housing element in substantial compliance with state law, developers may propose eligible housing development projects that do not comply with either the zoning or the general plan. The term “Builder’s Remedy” is used to describe the situation where a local agency may be required to approve an eligible housing development project because it cannot make one of the other four findings. Are Projects Using the “Builder’s Remedy” Exempt from CEQA Review? The HAA contains no exemptions from the California Environmental Quality Act. The HAA states specifically that nothing relieves the local agency from making the required CEQA findings and otherwise complying with CEQA. (Section 65589.5(e).) A project may be exempt from CEQA under other provisions of CEQA, other state laws, or the CEQA Guidelines. When Does a Housing Element No Longer Comply with State Law? Is There a Grace Period If the Housing Element Is Not Adopted by the Due Date? Housing elements are required to comply with current state housing element law on the established due date (January 31, 2023 in the ABAG region). State law has changed significantly since fifth cycle housing elements were adopted, and it would be unlikely that a fifth cycle housing element would substantially comply with current state law. If a sixth cycle element has not been adopted by the due date, the housing element would likely be out of compliance with state law until a complying sixth cycle housing element is adopted. There is no grace period, even for the period when a housing element is being reviewed by the Department of Housing and Community Development (HCD). HCD approval is not required for a housing element to be found substantially compliant with state law. State law provides that a city or county may adopt its own findings explaining why its housing element is substantially compliant with state law despite HCD’s findings. (Section 65585(f).) However, HCD is authorized to refer agencies to the Attorney General if it finds a housing element out of compliance with state law. (Section 65585(j).) Are a Local Agency’s Development Standards Null and Void If the Housing Element is Not in Compliance with State Law? No, the local agency’s development standards are not null and void if the housing element is not in substantial compliance with state law. The “Builder’s Remedy,” however, may require a local agency to approve an eligible housing development project despite its noncompliance with local development standards. Conversely, other projects may be challenged because a finding of general plan consistency cannot be made if the general plan is out of compliance with state law. What Projects Are Eligible to Use the “Builder’s Remedy”? The “Builder’s Remedy” applies only to a housing development project “for very low, low- or moderate-income households” and to emergency shelters. The HAA defines a “housing development project” as either: • Residential units only; • Mixed-use developments with at least two-thirds of the square footage designated for residential use; or Regional Housing Technical Assistance Program 3 • Transitional housing or supportive housing.2 (Section 65589.5(h)(2).) “Housing for very low, low-, or moderate-income households” includes either: • 20% of the total units sold or rented to lower income households; • 100% of the units sold or rented to moderate income households; or • 100% of the units sold or rented to middle income households.3 Monthly housing costs for lower income households cannot exceed 30 percent of 60 percent of median income, adjusted for household size, and the units must remain affordable for 30 years. Monthly housing costs for moderate income households cannot exceed 30 percent of 100 percent of median income. There are no standards in the HAA for housing costs for middle income households. (Sections 65589.5(h)(3), (h)(4).) An emergency shelter is housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay. (Section 65582(d); Health & Safety Code Section 50801(e).) 2 As defined in Section 65582. 3 Those earning no more than 150 percent of median income. PREPARED BY: Gabrielle Whelan, Town Attorney Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Community Development Director, Planning Manager, and Interim Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 10/18/2022 ITEM NO: 11 DATE: October 13, 2022 TO: Mayor and Town Council FROM: Laurel Prevetti, Town Manager SUBJECT: Discuss the Housing Element Process and the Next Steps for the Referendum of the 2040 General Plan Land Use and Community Design Elements, and Provide Direction on the Preferred Approach for the Referendum RECOMMENDATION: Discuss the Housing Element process and next steps for the referendum of the 2040 General Plan Land Use and Community Design Elements, and provide direction on the preferred approach for the Referendum. BACKGROUND: In accordance with the State Elections Code, sufficient signatures have been collected on a petition to referend the Land Use and Community Design Elements of the Town’s 2040 General Plan. This means that the question of whether or not the Land Use and Community Design Elements of the 2040 General Plan should be adopted has qualified for placement on an upcoming ballot. In accordance with Elections Code Section 9237, t he effective date of those two Elements is currently “suspended.” Elections Code Section 9241 provides that, if the Town Council does not repeal the legislation that is being referended, the Town Council shall submit the legislation to the voters at either a special election or a regular municipal election. Either the special election or the regular municipal election must be conducted at least 88 days after the Town Council votes to put the Page 74 PAGE 2 OF 4 SUBJECT: Housing Element Process and Next Steps on Referendum of 2040 General Plan Land Use and Community Design Elements DATE: October 18, 2022 BACKGROUND (continued): legislation on the ballot. The legislation (e.g., the Land Use and Community Design Elements of the 2040 General Plan) would not take effect until approved by a majority of the voters. The options are discussed in more detail later in this report. There is no immediate deadline for the Town Council to decide its preferred approach to address the Referendum. At the last Council meeting, the Council expressed interest in understanding the relationship between the Referendum and the Housing Element. Regardless of the Referendum option the Town Council ultimately chooses, the Housing Element update process will continue to move forward concurrently. The public comment period for the Initial Public Review Draft of the Housing Element ended on September 27, 2022. After making some changes to the Draft Housing Element , the Town has submitted it along with a response to comments to the California Department of Housing and Community Development (HCD) for its first preliminary review. The review by HCD can take up to 90 days to complete. Based on the experience of other California communities, the process is expected to include multiple reviews by HCD, and this review is a chance for preliminary feedback to guide future revisions. Initiating this first review by HCD is critical, both because of the tight timeline available for this process, and so the Town Council, Planning Commission, and Housing Element Advisory Board (HEAB) have input from HCD for their future discussions. The Town has a legal obligation to adopt the final Housing Element within 120 days of the statutory deadline of January 31, 2023. Staff has included two implementation programs in the Draft Housing Element submitted to HCD that require updates to the 2020 General Plan Land Use Element and Zoning Regulations. These implementation measures would affect the regulations in the 2020 General Plan Land Use Element while it is in effect during the suspension period imposed by the referendum, and the Zoning Regulations for those sites included in the Site Inventory of the Draft Housing Element. DISCUSSION: The Town Council’s options in response to the Referendum are: A. Hold a Special Election for Consideration of the Ballot Measure The Town Council could vote to place the measure on the ballot at a special election in 2023. Page 75 PAGE 3 OF 4 SUBJECT: Housing Element Process and Next Steps on Referendum of 2040 General Plan Land Use and Community Design Elements DATE: October 18, 2022 DISCUSSION (continued): The established Special Election dates for 2023 are March 7, May 2 (mail-in ballot only), August 29 (mail-in ballot only), and November 7. Following are the dates between which a resolution can be submitted to the Registrar of Voters to place a measure on the ballot and call a Special Election:  March 7, 2023 election: November 24 – December 9, 2022  May 2, 2023 election: January 19 – February 3, 2023  August 29, 2023 election: May 18 – June 2, 2023  November 7, 2023 election: July 27 – August 11, 2023 The estimated cost for a stand-alone Special Election is approximately $900,000 - $1,000,000 and the estimated cost for a stand-alone mail in ballot only Special Election is approximately $600,000 - $700,000. B. Place the Measure on the Ballot at the November 2024 General Municipal Election The Town Council could vote to place the measure on the ballot for the General Municipal Election in November of 2024. The deadline for placing a measure on the November 5, 2024, General Election has not yet been posted on the Registrar of Voters website. Typically, the deadline to submit a resolution placing a measure on the ballot is 88 days before the Election Day, which would be August 9, 2024. The estimated cost for placing a measure on the November 5, 2024 ballot is approximately $145,000. C. Rescind the Land Use and Community Design Elements of the 2040 General Plan and Adopt Revised Elements The Town Council could vote to rescind its adoption of the Land Use and Community Design Elements of the 2040 General Plan and adopt revised Land Use and Community Design Elements. This option could be completed at any time prior to the November 2024 general municipal election. Doing so no later than three months prior to the election would give the referendum proponents an opportunity to remove the ballot measure from the ballot. If the Town Council wishes to place a competing ballot measure on the ballot, the competing ballot measure should be submitted no later than six months before the election in order to meet the deadline for providing ballot materials to the County Page 76 PAGE 4 OF 4 SUBJECT: Housing Element Process and Next Steps on Referendum of 2040 General Plan Land Use and Community Design Elements DATE: October 18, 2022 DISCUSSION (continued): Registrar. Development of revised Land Use and Community Design Elements would include review by the General Plan Committee (GPC) and the Planning Commission (PC) prior to Town Council consideration and adoption. Please note that regardless of the Referendum option the Town Council chooses, the Housing Element update process will continue to move forward concurrently. CEQA: The Town Council’s decision with regard to next steps is not a project subject to the California Environmental Quality Act (CEQA). The environmental impacts of any revisions to the Land Use and Community Design Elements will undergo CEQA review. CONCLUSION AND NEXT STEPS: Staff looks forward to the Town Council’s discussion and direction. To structure the Council conversation, the Council may wish to follow the organization of this report by first discussing the Housing Element and then each Referendum option. If the Council decides to move forward with one of the election options, staff will bring forward the appropriate resolution during the required timeframe for the preferred election date. If the Council prefers to rescind the two Elements, a resolution for the rescission will be brought forward at a later date and at that time, the Council may provide additional direction for the preparation of new Land Use and Community Design Elements. COORDINATION: This report was coordinated with the Town Attorney, Town Clerk, and Community Development Director. FISCAL IMPACT: The fiscal impacts are outlined above. Page 77 PREPARED BY: ERIN WALTERS AND JOCELYN SHOOPMAN Associate Planner and Associate Planner 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov MEETING DATE: 10/20/2022 ITEM NO: 2 TOWN OF LOS GATOS HOUSING ELEMENT ADVISORY BOARD REPORT DATE: October 14, 2022 TO: Housing Element Advisory Board FROM: Joel Paulson, Community Development Director SUBJECT: Review of the HCD Draft Initial Review Housing Element that was Submitted to HCD for Preliminary Review. BACKGROUND: On August 29, 2022, the Town of Los Gatos released the Initial Public Review Draft of the 2023 - 2031 Housing Element for a 30-day public comment period which ran from August 29, 2022, to September 27, 2022. Per Assembly Bill 215 (AB 215) signed by the Governor on September 28, 2021, a 30-day public comment period of the Initial Public Review Draft Housing Element is required before the Town can submit to the California Department of Housing and Community Development (HCD) for preliminary review. On September 15, 2022, the Housing Element Advisory Board (HEAB) held a meeting to provide an opportunity for the public to provide verbal comments during the 30-day public review period. Three members of the public provided verbal public comments and their comments have been summarized in the Response to Public Comments (Attachment 2). The public comment period for the Initial Public Review Draft of the Housing Element ended on September 27, 2022. Town staff and the consultants prepared responses to the public comments and made changes to the Draft Housing Element as appropriate prior to submittal to HCD for its first preliminary review. The responses to comments are analogous to responses to comments on an Environmental Impact Report in that they are technical in nature and must be reviewed against the statutory requirements for Housing Elements. On Friday, October 14, 2022, the Town submitted the Draft Initial Review Housing Element to HCD for preliminary review. The purpose of this meeting is to review and discuss the HCD Draft Initial Review Housing Element submittal documents including the following: 1. HCD Draft Initial Review Housing Element (Attachment 1); and 2. Response to Public Comments (Attachment 2). PAGE 2 OF 4 SUBJECT: Review of the Submittal of the HCD Draft Initial Review Housing Element that was Submitted to HCD for Preliminary Review DATE: October 14, 2022 DISCUSSION: Modifications to the HCD Draft Initial Review Housing Element include general edits based on State Law and HCD submittal requirements, discussions with property owners, further review by the Town’s housing consultant and the Town’s Affirmatively Furthering Fair Housing (AFFH) consultant (Root Policy Research), and the current status of the 2040 General Plan Land Use and Community Design Elements. On June 30, 2022, the Town Council adopted the 2040 General Plan. As of September 27, 2022, the Land 2040 General Plan Use and Community Design Elements are suspended pending the results of a referendum. The 2020 General Plan Land Use and Community Design Elements will govern during the suspension period. The following provides a summary of modifications that have been made to the HCD Draft Initial Review Housing Element: 1. Added Implementation Program BF to require amendments of the Zoning Code which includes: • Including a Housing Element Overlay Zone (HEOZ) to apply to the sites included in the Site Inventory to modify the development standards on those sites only to meet the Town’s RHNA and a 15 percent buffer; • Amending the Affordable Housing Overlay Zone (AHOZ) to increase the maximum allowable density from 20 dwelling units per acre to 40 dwelling units per acres; • Clarifying the text of the non-residential zones with regard to housing; and • Rezoning the Caltrans ROW – Site E3 to allow for residential development. 2. Added Implementation Program BG to require amendment of the General Plan to establish new densities for the sites included in the Site Inventory; 3. Revised housing density for the Site Inventory to be consistent with the typical density identified in the 2040 General Plan Residential Buildout table; 4. Removed 404 North Santa Cruz Avenue, 420 North Santa Cruz Avenue, and 430 North Santa Cruz Avenue (Los Gatos Shopping Center) from the Site Inventory List per the property owner’s request and therefore deleted the North Santa Cruz Avenue Area; 5. Added Site I-1, 401-409 Alberto Way to the Site Inventory as the property owner submitted a Property Owner Interest form and a Conceptual Development Advisory Committee Application to the Town for a mixed-use project with 54 housing units; 6. Created Appendix H, Site Inventory Form per HCD formatting requirements; 7. Updated site descriptions for each site as described in Appendix D; and 8. Updated Chapter 10 and Appendix D to provide additional information regarding AFFH data per direction from the Town’s AFFH consultant, Root Policy Research. PAGE 3 OF 4 SUBJECT: Review of the Submittal of the HCD Draft Initial Review Housing Element that was Submitted to HCD for Preliminary Review DATE: October 14, 2022 DISCUSSION (continued): Response to Public Comments A total of 11 written public comments and a total of three verbal comments were received during the 30-day public comment period (Attachment 2). Staff and the Town’s Consultant reviewed these comments carefully, provided written responses to each comment, and made the following modifications to the Draft Housing Element: • Added Implementation Program BH – Provide Adequate Sites for Lower Income Households on Nonvacant and Vacant Sites Previously Identified in the 5 th Cycle Housing Element; • Revised the housing density for the Site Inventory to be consistent with the typical density identified in the 2040 General Plan Residential Buildout; • Increased the density within the North Forty Specific Plan area to align with the related Implementation Program D; • Increased the density within the Affordable Housing Overlay Zone (AHOZ) to align with the related Implementation Program BF; and • Corrected employment characteristics. Modifications made as the result of public comments have been incorporated into the following sections of the HCD Draft Initial Review Housing Element: • Section 10.1, Introduction; • Section 10.2, Overview of Housing Needs and Constraints; • Section 10.3, Site Inventory and Opportunities; • Section 10.4, Energy and Resource Conservation; • Section 10.5, Goals and Polices; • Section 10.6, Implementation Programs; • Appendix A, Affirmatively Furthering Fair Housing Reports; • Appendix B, Housing Needs Assessment; • Appendix C, Governmental and Non-Governmental Constraints; • Appendix D, Site Inventory Analysis; • Appendix F, List of Organizations Contacted; and • Appendix H, Site Inventory Form. NEXT STEPS: By law, HCD has up to 90 days to complete its first review. For this reason, it was critical that the Town submit the document as soon as possible to get the clock started in order to try to meet the Town’s legal obligation to adopt the final Housing Element within 120 days of the statutory deadline of January 31, 2023. PAGE 4 OF 4 SUBJECT: Review of the Submittal of the HCD Draft Initial Review Housing Element that was Submitted to HCD for Preliminary Review DATE: October 14, 2022 NEXT STEPS (continued): Based on the recent experience of surrounding jurisdictions, HCD will meet with staff at the approximately 45-day mark to provide initial feedback on the HCD Draft Initial Review Housing Element. This early feedback will provide an opportunity to begin work on modifications to the HCD Draft Initial Review Housing Element. Once HCD’s formal comments are received, staff intends to bring the HCD Draft Initial Review Housing Element, public comments, and responses, and HCD comments to Town Council for the Council to provide policy direction as to how best to modify the Housing Element in light of HCD’s concerns. Based on the experience of other California communities, the process is expected to include multiple reviews by HCD. The HEAB will participate in the revisions to the Housing Element. Once HCD determines and communicates that the Town’s Housing Element is ready for certification, the formal public hearing process will occur with the Planning Commission making a recommendation and the Town Council making the final decision. On Thursday, November 3, 2022, the HEAB is tentatively scheduled to meet to discuss topics likely to be included in HCD comments. PUBLIC COMMENTS: Attachment 3 includes public comments received between 11:01 a.m., Thursday, September 15, 2022, and 11:00 a.m. on Friday, September 9, 2022. Although 30-day public review period is complete public comments are encouraged throughout the Housing Element update process and can be emailed to HEUpdate@losgatosca.gov. ATTACHMENTS: 1. HCD Initial Review Draft Submittal 2. Response to Public Comments 3. Public Comments received between 11:01 a.m., Thursday, September 15, 2022, and 11:00 a.m. on Friday, October 14, 2022 N:\DEV\HEAB\2021-2023\HEAB Staff Reports and Attachments\2022\10-20-2022\Item 2 -\Item2.Staff Report.docx 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS PLANNING COMMISSION REPORT MINUTES OF THE PLANNING COMMISSION MEETING APRIL 13, 2022 The Planning Commission of the Town of Los Gatos conducted a Regular Meeting on Wednesday, April 13, 2022, at 7:00 p.m. This meeting was conducted utilizing teleconferencing and electronic means consistent with Government Code Section 54953, as Amended by Assembly Bill 361, in response to the state of emergency relating to COVID-19 and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.). Consistent with AB 361 and Town of Los Gatos Resolution 2021 -044, all planning commissioners and staff participated from remote locations and all voting was conducted via roll call vote. MEETING CALLED TO ORDER AT 7:00 P.M. ROLL CALL Present: Chair Melanie Hanssen, Vice Chair Jeffrey Barnett, Commissioner Kylie Clark, Commissioner Kathryn Janoff, Commissioner Steve Raspe, Commissioner Reza Tavana, and Commissioner Emily Thomas Absent: None. VERBAL COMMUNICATIONS None. CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION) 1. Approval of Minutes – March 23, 2022 MOTION: Motion by Vice Chair Barnett to approve adoption of the Consent Calendar. Seconded by Commissioner Clark. VOTE: Motion passed unanimously. PAGE 2 OF 9 MINUTES OF PLANNING COMMISSION MEETING OF APRIL 13, 2022 PUBLIC HEARINGS 2. 33 Walnut Avenue APN 510-41-007 Property Owner/Applicant/Appellant: Jeffrey Siegel Project Planner: Erin Walters Consider an Appeal of the Historic Preservation Committee Decision to Deny the Removal of a Presumptive Historic Property (Pre-1941) from the Historic Resources Inventory on Property Zoned R-1:8. Erin Walters, Associate Planner, presented the staff report. Opened Public Comment. Jeffrey Siegel (Applicant/Appellant) - Attachment 7 provides an in-depth assessment of whether there is historic integrity remaining on the property. In the expert opinion of Jay Correia of the California Office of Historic Preservation this house would not be eligible for the California Register because: too much modern intervention, new construction; new materials instead of an in-kind restoration; footprint has been dramatically expanded; and an altered roofline. The next- door neighbor of 62 years has stated the house looks nothing like it did in 1961. “Presumptive” means the house is pre-1941, not that there was ever a determination of any historic significance. The key question is whether or not there is historic integrity remaining after massive alterations over 60 years by multiple homeowners, and the answer, as verified by professional historic preservationists, is there is no historic integrity. David Hernandez, Architect, 1150 Pedro Street, San Jose - I concur with Jay Correia of the California Office of Historic Preservation that the current house does not resemble anything that would be considered historic given the number of changes structurally and aesthetically. The front porch expansion allowed us to maintain some of the character of the building front, but beyond that there is not much that remains of the original residence; the character of the building was lost long ago with the many changes made over time. I also concur with Mr. Correia and the applicant that this residence should be removed from the historical registry. Closed Public Comment. Commissioners discussed the matter. MOTION: Motion by Commissioner Janoff to deny an appeal of a Historic Preservation Committee decision for 33 Walnut Avenue. Seconded by Commissioner Clark. PAGE 3 OF 9 MINUTES OF PLANNING COMMISSION MEETING OF APRIL 13, 2022 Commissioners discussed the matter. VOTE: Motion passed 5-2 with Vice Chair Barnett and Commissioner Tavana dissenting. 3. Draft 2040 General Plan and Final Environmental Impact Report Review and Make Recommendations on the Draft 2040 General Plan and Final Environmental Impact Report to the Town Council. Jennifer Armer, Planning Manager, presented the staff report. Opened Public Comment. Guilianna Pendleton, Environmental Advocacy Assistant, Santa Clara Valley Audubon Society - I hope the Planning Commission will support the inclusion of a Dark Sky and Bird Safe Design Ordinance in the General Plan to reduce artificial light at night and protect our birds, hundreds of millions of which die each year due to building or structure collisions related to artificial light at night. Please also consider removing any goals or policies within the plan that would lead to over-lighting Los Gatos. Also, please strengthen biodiversity protections, native habitat enhancement, and wildlife connectivity as you review and make recommendations on the Draft General Plan. Karen Rubio, Los Gatos Plant-Based Advocates - I’m asking the Planning Commission and Town Council to take action to ensure a habitable planet for our children by including plant-based diet education into Section 8.12 of the General Plan. 47 percent of California’s water goes to meat and diary production and the livestock industry plays a key role in climate change. Any plan to achieve a sustainable environment must include education about plant-based diets. Lisa Wade, Los Gatos Plant-Based Advocates - Plant-Based Advocates has submitted a petition with 265 signatures requesting a plant- based education program be added to the Environmental section of the General Plan, Section 8.12. Mountain View has such a program and we would like to see Los Gatos have something similar. Our initiative has the support of health and environmental NGOs, prominent citizens of Los Gatos and neighboring cities, the Center for Biological Diversity, and the Sierra Club. PAGE 4 OF 9 MINUTES OF PLANNING COMMISSION MEETING OF APRIL 13, 2022 Jak Van Nada, Los Gatos Community Alliance - The Department of Finance for the State of California believes that Los Gatos will not grow more than 1,954 households in 20 years, so why would the GPAC double that number to 3,738? We advocate a major effort by the Town to provide affordable housing and believe the Housing Element Advisory Board should be focused on low- and very-low income categories. It will be a major challenge in a built-out town with high land costs, but two successful housing developers have said it can be done and we encourage the Planning Commission to focus on the challenge of getting more affordable housing into Los Gatos. Lee Quintana - As a member of GPAC I voted to recommend the Draft General Plan go to the Planning Commission, but put it on the record that I did not agree to it’s current form because it has many problems, including: 1) The manner in which GPAC was conducted, with very little leeway in recommendations or changes; 2) One of the biggest flaws of the process is that the General Plan base map was never reviewed for consistency between the General Plan and the Zoning Code; 3) There are no incentives in this General Plan to help get the type of housing we want, which are smaller units; and 4) Policies do not give true and clear direction. Matt Francois, Rutan & Tucker - I am the land use counsel for Los Gatos Community Alliance, who has concerns with the proposed General Plan and EIR. The proposed plan significantly and indiscriminately upzones almost the entire town, including low-density residential neighborhoods and the downtown, but the EIR does not study those changes, as required by CEQA. If the Draft General Plan is approved in its current form, the Town could not legally deny a project that complied with the new density standards. The Town should first focus on the mandatory changes to its Housing Element, due in January 2023, because the Housing Element will provide critical information as to where housing should be located and at what density. If the General Plan goes ahead in its current form, the Commission should recommend it be amended to provide for no more than 2,300 units, which would satisfy market demand and the Town’s new RHNA number, plus a reasonable buffer. Gina - I’m particularly passionate about our need for wildlife crossings. I agree with the other speakers about the dark skies, bird safety, protecting biodiversity, protecting the environment and reducing pollution and greenhouse gases, and including education on a plant-based diet to the General Plan. I agree with approximately 2,000 units versus 4,000 units. I am, as much as possible, against the high-density and upzoning. I support eliminating pesticides that are devastating to the Monarch butterfly population , which migrates through Los Gatos. PAGE 5 OF 9 MINUTES OF PLANNING COMMISSION MEETING OF APRIL 13, 2022 Connie Hamra - One of my concerns is maintaining the integrity and beauty of the Town of Los Gatos. We do not have enough water for all the development planned throughout Santa Clara Valley. How is Los Gatos addressing that in terms of the Town’s continued growth? I agree with keeping the number of units to be added to Los Gatos at the lowest level possible, because we want to keep our community the way it is. Rosalee - I support a plant-based diet education program in the General Plan. I also support the dark sky petition. With plans for so much expansion in Los Gatos we have to keep in mind that wildlife is one of the things that gives Los Gatos its character and charm. The main sale point of the North Forty was to address the affordable housing crisis, but once the project was started, this was not upheld. Who is accountable to ensure that what happened with the North Forty will not happen again in the next development proposed under the guise of satisfying affordable housing in Los Gatos? Catherine Somers, Los Gatos Chamber of Commerce - I also support the dark skies. I get criticized a lot in my job for not looking out for all of the commercial hubs in Los Gatos. One very important thing the Commission has on its plate is to wrap those hub communities into the whole, and yet make them very special and unique so that they serve their individual neighborhoods, and I would love to see that reflected in the Land Use portion of the General Plan. The Commission has a unique opportunity when looking at these different neighborhoods to look at what would make Los Gatos special and what would be community hubs 20 years from now. Jesus - With respect to the General Plan Zoning Map, I own a property on Los Gatos Boulevard and Farley Road that has been a professional office building for all of its 35 years, is part of Santa Clara County, and is zoned for administrative and professional office use. If the property were annexed into Los Gatos it would be zoned for residential. Please consider the zoning in that area, because my property is already in a commercial area, but a technicality could stop me from renovating and updating the facility. Arvin - I would like to suggest that the General Plan consider turning downtown Santa Cruz Avenue into a pedestrian street that would allow Los Gatos residents and visitors to come to downtown and support the businesses and socialize. Tony Alarcon - The RHNA numbers provided by the state to Los Gatos should be appealed. I do not support exceeding the RHNA numbers or the approximately 4,000 units proposed in the General Plan. I agree with a prior speaker that the North Forty was promised as affordable housing and it is anything but that. Other solutions to create affordable options, such as PAGE 6 OF 9 MINUTES OF PLANNING COMMISSION MEETING OF APRIL 13, 2022 smaller units, are needed. I would like to see the historic districts retain their character. We have yet to see the impacts of SB 9 and SB 10. We should slow down on the General Plan and not be too aggressive with the number of proposed housing units, and further study should be done before making drastic changes in that direction. Joe Rodgers - I am very much opposed to a request being considered by the Town Council to add one to three cannabis dispensaries in the Town. It sends the wrong message about the quality and nature of Los Gatos, but my concerns also go to traffic and parking problems. The first step is a dispensary, then packaging and processing, and then growing cannabis with the accompanying water and electrical power needs. I request the Planning Commission and Town Council do an environmental impact study and include it in the General Plan. Joanne Rodgers - For every dollar taken in for a cannabis sale, four dollars is spent on policing, traffic management, crime, etc. We are asking for the environmental review to be included in the General Plan. John - I am generally supportive of additional housing units. What pops out in the plan are the 804 opportunities in Land Development, and maybe 1,200 opportunities in the Redevelopment section. The 3,900 new units and another approximately 9,000 residents in Los Gatos would not work well in terms of traffic, especially Los Gatos’ summer traffic. It would great if most housing development were converting commercial properties along strong road corridors to multi-use. Wildfire is referenced extensively in the plan, but there is not much strength in the Wildfire Fuels, Mitigation, and Management; this is an essential area to pay attention to. Closed Public Comment. Commissioners discussed the matter. MOTION: Motion by Vice Chair Barnett to approve changes to the Vision and Guiding Principles section of the Introduction, as recommended in Exhibit 7 to the staff report. Seconded by Commissioner Tavana. VOTE: Motion passed unanimously. Commissioners discussed the matter. PAGE 7 OF 9 MINUTES OF PLANNING COMMISSION MEETING OF APRIL 13, 2022 MOTION: Motion by Commissioner Clark to add language regarding the Ohlone and Tamien Indians to the Los Gatos Community section of the Introduction. Seconded by Commissioner Thomas. VOTE: Motion passed unanimously. Commissioners discussed the matter. MOTION: Motion by Commissioner Janoff to accept the suggested changes listed as Items 2 through 7 in Exhibit 7 to the staff report. Seconded by Chair Hanssen. VOTE: Motion passed unanimously. Commissioners discussed the matter. MOTION: Motion by Commissioner Thomas to recommend Town Council approval of the Racial, Social, and Environmental Justice Element, subject to the following modifications: 1) Add an implementation program for Policy RSEJ-4.1 to do research on coordinating and promoting acceptance of government-issued food vouchers; 2) Make the changes to reflect the definitions submitted by Commissioner Clark for key terms of equality and equity; 3) Approve Item 17 in Exhibit 7 of the staff report with the addition of “historically marginalized” to the language in Policy RSEJ-6.2; and 4) Approve Items 11, 15, and 18 from Exhibit 7 to the staff report. Seconded by Commissioner Janoff. Commissioners discussed the matter. VOTE: Motion passed unanimously, with Vice Chair Barnett recommending the Town Council consider the terms “equality” and “equity” after further review by members of the Planning Commission of their use in the document. Vice Chair Barnett will provide further comment in writing after his review. Commissioners discussed the matter. PAGE 8 OF 9 MINUTES OF PLANNING COMMISSION MEETING OF APRIL 13, 2022 MOTION: Motion by Commissioner Janoff to recommend Item 67 from Exhibit 7, and add Items 62 and 63 from Exhibit 7 as a single implementation program in the Mobility Element. Commissioner Thomas requested the motion be amended to change “Implementation Program D” to the 2020-2025 timeframe. The maker of the motion accepted the amendment to the motion. Seconded by Commissioner Thomas. VOTE: Motion passed unanimously. Commissioners discussed the matter. MOTION: Motion by Commissioner Tavana to extend the meeting past 11:00 p.m. to 11:30 p.m. Seconded by Commissioner Raspe. VOTE: Motion passed unanimously. Commissioners discussed the matter. MOTION: Motion by Commissioner Thomas to recommend Town Council approval of the Public Facilities, Services, and Infrastructure Element subject to the following modifications: 1) Add a definition of recycled and reclaimed water; 2) Change Implementation Program C to the 2020-2025 timeframe and expand it to looking at artificial turf and other ground cover alternatives; and 3) Accept Items 70, 73, and 80 of Exhibit 7 to the staff report. Seconded by Commissioner Clark. VOTE: Motion passed unanimously. MOTION: Motion by Chair Hanssen to continue the public hearing for the Draft 2024 General Plan and Final Environmental Impact Report to a date certain of April 25, 2022 at 7:00 p.m. Seconded by Vice Chair Barnett. VOTE: Motion passed unanimously. PAGE 9 OF 9 MINUTES OF PLANNING COMMISSION MEETING OF APRIL 13, 2022 OTHER BUSINESS REPORT FROM THE DIRECTOR OF COMMUNITY DEVELOPMENT Joel Paulson, Director of Community Development  Town Council met April 5, 2022: o Discussed whether or not additional fiscal analysis should be performed for the General Plan and determined no additional analysis was necessary. o Considered an appeal of 118 Olive Street, which was approved with modifications. o Considered 110 Wood Road, which was remanded back to the Planning Commission.  A Study Session on affordable housing was held on April 6, 2022. A video is available for viewing on the Town’s Housing Element website.  The next Housing Element Advisory Board meeting will be April 21, 2022, via Zoom. The public is encouraged to attend. SUBCOMMITTEE REPORTS/COMMISSION MATTERS None. ADJOURNMENT The meeting adjourned at 11:29 p.m. This is to certify that the foregoing is a true and correct copy of the minutes of the April 13, 2022 meeting as approved by the Planning Commission. _____________________________ /s/ Vicki Blandin From:Phil Koen To:Phil Koen Subject:HCD Date:Thursday, October 27, 2022 12:45:40 PM Attachments:IMG_2049.PNG see Sent from my iPhone