Loading...
HomeMy WebLinkAbout20 - Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory CommitteeTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report PREPARED BY: PHONE: TITLE ABSTRACT: January 14, 2020 Agenda Item No. 20 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov Jim Campbell, Deputy Community Development Director 949-644-3210 Housing Action Plan to Address State Mandate for Additional Housing and Resolution No. 2020-6: Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory Committee At the November 7, 2019, Southern California Association of Governments (SCAG) meeting, the Regional Council radically changed the Regional Housing Needs Allocation (RHNA) methodology that was developed without input from the City. The "substitute motion" RHNA methodology submitted by the County of Riverside cities, was approved by SCAG's Regional Council, and changed the City's RHNA allocation from 2,751 to 4,832 housing units while reducing the County of Riverside cities' RHNA allocations. The City's increased RHNA number accelerates four decades worth of planning and development into the next decade. Due to this State mandate to plan for additional housing and the un -vetted changes by SCAG, the City Council directed staff to create an action plan to immediately address the exceptionally high number of housing units. Staff was also directed by the General Plan Update Steering Committee to seek guidance from the City Council about how the revised RHNA affects the City's General Plan update process. Staff has drafted the Housing Action Plan (Attachment B) that takes an aggressive approach to addressing the recent SCAG change that significantly increased the City's RHNA allocation. As part of the Housing Action Plan, staff is also recommending the City Council consider establishing a Housing Element Update Advisory Committee to focus on updating the necessary elements of the City's General Plan that address the RHNA allocation. RECOMMENDATION: a) Determine the recommended actions exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly-, 20-1 Housing Action Plan to Address State Mandate for Additional Housing and Resolution No. 2020-6: Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory Committee January 14, 2020 Page 2 b) Direct staff to file an appeal to SCAG regarding the RHNA methodology; c) Adopt Resolution No. 2020-6, A Resolution of the City Council of the City of Newport Beach, California, Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory Committee; and c) Provide direction to staff on the Housing Action Plan and amending Section 423 of the City's Charter to be voted upon by the residents. FUNDING REQUIREMENTS: No additional funding is being requested at this time. DISCUSSION - At the November 7, 2019, SCAG meeting, the Regional Council radically changed the RHNA methodology that had been developed and vetted over a long period of time without meaningful analysis by SCAG staff or member jurisdictions. The "substitute motion" RHNA methodology approved by SCAG would change the City's RHNA allocation from 2,751 to 4,832 housing units. To obtain compliance with the State mandate, the City must update its Housing and Land Use Elements. The Housing Element must be submitted to the California Department of Housing and Community Development (HCD) by October 15, 2021. Combining excessively high housing units with recent changes to Housing Element law limiting what would potentially qualify as a housing opportunity site will make it nearly impossible for the City of Newport Beach to obtain Housing Element certification. Furthermore, the City's Charter Section 423 will require a vote of the electorate given the magnitude of the RHNA housing unit increase. Given the October 2021 deadline, a special election will be necessary, costing the City approximately $400,000. At its November 19, 2019, meeting, the City Council requested that staff bring forward an action plan to address the estimated 4,832 RHNA housing units anticipated to be distributed to the City through the State's mandate. Staff has developed a 12 -point Housing Action Plan with four main objectives: A. Pursue legislative amendments to assist the City to obtain compliance with the Housing Element deadline of October 15, 20211- With 021; With the projected 4,832 RHNA housing units to be distributed to the City, the Land Use Element of the General Plan would be required to increase residential development opportunities. The update would necessitate a vote of the residents due to Charter Section 423, which requires a vote for any major General Plan amendment resulting in a density increase greater than 100 dwelling units. A special election vote would increase cost and add significant time to the overall schedule for updating the necessary elements. Therefore, to help ensure a successful adoption of a certified Housing Element, staff believes the City must pursue the following legislative amendments to housing element law: 20-2 Housing Action Plan to Address State Mandate for Additional Housing and Resolution No. 2020-6: Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory Committee January 14, 2020 Page 3 1. An extension of time beyond the current October 15, 2021, Housing Element due date; 2. Reform CEQA to allow for an exemption for general plan element updates due to the housing crisis declared by the State; 3. Amend Government Code Section 65583.2 to allow for more flexibility or automatic approval of sites meeting certain objective standards when determining suitability of housing opportunity sites needed to meet RHNA; and 4. Amend allowance that permits a local government to credit up to 25 percent of their RHNA sites requirements through existing units that will be substantially rehabilitated, converted from non -affordable to affordable housing, or preservation of affordable units that are at -risk of converting to market -rate units. The current allowance is severely limiting and revisions to the law may allow for greater use of this credit. B. Find ways to reduce Regional Housing Needs Allocation; Staff recommends the City file an appeal after HCD issues their comments to SCAG's methodology and SCAG adopts the final RHNA in February 2020. C. Review priorities of the General Plan Update process to focus on housing; Staff recommends the City Council redirect the City's resources (staffing and budget) towards a focused update of the Housing, Land Use, and Circulation Elements. As part of this shift, staff also recommends dissolving the General Plan Update Steering Committee and establishing a Housing Element Update Advisory Committee to provide guidance on policy decisions and act as the advisory committee for the more focused update. D. Regional Collaboration Collaborate with surrounding and regional cities, the League of California Cities, and Association of California Cities of Orange County. General Plan Uodate Steerina Committee Feedback It is important to note that the General Plan Update Steering Committee (Committee) was created by City Council resolution in January 2019 and has been meeting since February 2019. The Committee was not tasked with guiding policy decisions, rather its focus was on overseeing the outreach and engagement process. In this capacity, the Committee has worked with City staff and City Council to select an outreach consultant and has shaped the Listen and Learn (i.e., the community engagement and outreach process). During the 13 meetings the Committee held, and even since the Listen and Learn kickoff in October, a lot has changed. The Committee frequently received updates from City staff on SCAG's determination of 4,832 new housing units for the City. The Committee was consistently mindful of this requirement, as it worked to guide the Listen and Learn process. 20-3 Housing Action Plan to Address State Mandate for Additional Housing and Resolution No. 2020-6: Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory Committee January 14, 2020 Page 4 Most recently, the Committee met on December 4, 2019, to discuss the Listen and Learn process and to consider staff's recommendation on immediately forming a broader General Plan Advisory Committee (GPAC) to help guide policy decisions. The Committee expressed frustration with the State mandating the City to plan for 4,832 RHNA housing units, especially given a seemingly unreasonable time constraint with an October 15, 2021, deadline to update the City's Housing Element. The Committee believed there were still unanswered questions, such as: what will the final RHNA number be for the City? What will the HCD guidelines state? How many ADUs can the City utilize in the Housing Element? Instead of recommending or not recommending the formation of a GPAC, the Committee believed that staff should seek further direction from the City Council on the General Plan update process, as much has changed since they received their initial charge. Of particular concern is how the City Council would like to address the immediate need of pursuing a General Plan update in response to the updated RHNA numbers. The Committee discussed the current update efforts and concluded the City's focus should be on planning for the 4,832 RHNA housing units. A more broad and comprehensive General Plan update would follow later. In summary, the Committee believes there should be an immediate pause in the overall General Plan update process and a redirection of the priorities and resources towards addressing the RHNA housing numbers. Some of the comments received from the Committee are: 1. Go back to City Council and receive direction on the General Plan update process before forming the GPAC; 2. Redirect the General Plan update process and focus on addressing the RHNA housing numbers; 3. It is premature to continue with further community workshops on a broader General Plan update; 4. The City should not let the Housing Element submittal deadline dictate the City's process; 5. The City should not rush the update process, as it should be done right; 6. Our City is too important and this issue is so very transformational; and 7. The City may compromise too much if it goes too fast. Staff's Recommendations Based on the Committee's comments and recommendation to seek guidance from the City Council on these issues, City staff recommends the following: Pause the overall General Plan update and refocus the City's resources on updating the Housing, Land Use, and Circulation Elements. Environmental justice policies would be included where appropriate to be compliant with State law; 20-4 Housing Action Plan to Address State Mandate for Additional Housing and Resolution No. 2020-6: Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory Committee January 14, 2020 Page 5 2. Create a new advisory committee (the Housing Element Update Advisory Committee) to guide the refocused update and build upon the progress already established by the General Plan Update Steering Committee. Staff recommends nine voting members with the Mayor or a City Council Member serving as a non- voting ex -officio member. The committee would serve as a forum for public participation and they would provide guidance on policy decisions. The GPUSC would dissolve with the appointment of the new committee; and 3. With consultation and direction from the new committee, redirect the existing outreach consultant to focus on obtaining community consensus on where and how to plan for the RHNA-mandated housing units. Charter 423 Amendment Accommodating the State -mandated increase in dwelling units (the RHNA) within the City's General Plan will necessitate a vote of the residents because one or more General Plan Statistical Areas will likely receive increases over 100 units. The residents might not approve the General Plan amendment, resulting in a non-compliant Housing Element potentially subjecting the City to significant penalties and fines. The City would likely need to seek intervention from the Courts in that circumstance. One way to avoid this potential situation is to consider a Charter amendment for the November 2020 General Election exempting the City's General Plan amendment to accommodate the State mandate. The Charter amendment would be carefully written to not apply to any other proposed amendment. In other words, only the City's plan to accommodate a State -mandated increase in housing units would not require a vote. If a property owner requested a change to the Land Use Element to accommodate additional housing at a site not included in the Housing Element update sponsored by the City, then that application would require a vote if it were classified as a major amendment. While this concept may be controversial and might not be successful if pursued, the attempt to avoid a non-compliant Housing Element requiring Court intervention might be viewed favorably by the State and the Courts. If such a Charter amendment is successful, it would simplify the Housing Element update process. Staff is requesting that the City Council consider placing this amendment on the November 2020 ballot. ENVIRONMENTAL REVIEW: Staff recommends the City Council find the recommended actions is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. None of the recommended actions authorize development but only provide a framework for future planning. The future update of the General Plan to accommodate the RHNA will require environmental review consistent with CEQA prior to adoption. 20-5 Housing Action Plan to Address State Mandate for Additional Housing and Resolution No. 2020-6: Dissolving the General Plan Update Steering Committee and Establishing the Housing Element Update Advisory Committee January 14, 2020 Page 6 NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution No. 2020-6 Attachment B — January 2020 Housing Action Plan 20-6 ATTACHMENT A RESOLUTION NO. 2020-6 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DISSOLVING THE GENERAL PLAN UPDATE STEERING COMMITTEE AND ESTABLISHING THE HOUSING ELEMENT UPDATE ADVISORY COMMITTEE WHEREAS, on January 22, 2019, the City Council of the City of Newport Beach ("City") adopted Resolution No. 2019-7 creating the General Plan Update Steering Committee ("Committee") to consider amendments to the City's General Plan and Local Coastal Program; WHEREAS, Resolution No. 2019-7 was repealed and replaced by Resolution 2019-20, which maintained the same purpose but revised the number of members of the Committee; WHEREAS, the Committee's primary purpose is to ensure there is sufficient public outreach and stakeholder input regarding the proposed General Plan Update and to guide the initial public outreach effort; WHEREAS, the Committee began meeting in February 2019, worked with City staff and the City's outreach consultant, Kearns & West ("K&W'), and guided the community engagement and outreach process ("Listen and Learn") during this time; WHEREAS, the Committee received regular updates from City staff regarding the California Department of Housing and Community Development ("HCD") Regional Housing Need Determination for the Southern California region of 1,344,740 housing units and the City's estimated Regional Housing Needs Assessment ("RHNA") from the Southern California Association of Governments ("SCAG") for the sixth cycle (2021- 2029); WHEREAS, City staff and K&W officially launched the Listen and Learn on October 26, 2019, with a community -wide fair event hosted at the Civic Center followed by a series of seven (7) identical workshops conducted within each of the seven (7) council districts in November and December; WHEREAS, as an element of the General Plan Update, the Committee sought input from the community and discussed the RHNA as part of the City's Housing Element during the Listen and Learn; WHEREAS, also during this time, SCAG's RHNA Subcommittee worked to identify a recommended methodology for distributing HCD's Regional Housing Need Determination that would result in an estimated RHNA allocation of 2,751 new housing units for the City; 20-7 Resolution No. 2020 - Page 2 of 3 WHEREAS, on November 7, 2019, the SCAG Regional Council voted to adopt a substitute methodology resulting in an increased RHNA estimate of 4,832 new housing units ("Proposed RHNA Methodology"), which has been submitted to the California Department of Housing and Community Development ("HCD") for final consideration; WHEREAS, recognizing the significant impact of SCAG's allocation of housing units to the City in the Proposed RHNA Methodology, the Committee met on November 6, 2019, and December 4, 2019, and recommended the Committee focus on the Housing Element, Land Use Element, and Circulation Element and to retain a qualified consultant to assist with preparation of amendments to these elements; WHEREAS, the Housing Element requires immediate focus in light of the fact that the City will likely be required to obtain voter approval of the sixth cycle Housing Element Update (2021- 2029), in accordance with Section 423 of the City of Newport Beach Charter, by October 2021; WHEREAS, with the Committee's guidance, City staff worked to release a Request for Proposal ("RFP") for consultant services related to updating the City's General Plan Housing Element, Land Use Element, and Circulation Element on December 20, 2019; and WHEREAS, the aforementioned circumstances require the establishment of a new Committee titled the Housing Element Update Advisory Committee ("Housing Element Update Advisory Committee") to provide community input on the Housing Element update. The Housing Element Update Advisory Committee will be well-suited to help articulate the community's values and vision while providing guidance on shaping policies and goal for the Housing Element. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby creates the Housing Element Update Advisory Committee to serve as a forum for public participation, to guide a focused update of the Housing, Land Use and Circulation Elements of the General Plan, and to build upon the progress already established by the General Plan Update Steering Committee. Section 2: The Housing Element Update Advisory Committee shall be an ad hoc committee and the term, qualification of appointees, selection of appointees, appointment process, membership, and responsibilities shall be done in conformance with this resolution and Attachment 1, which is incorporated herein by reference. Section 3. The City Council hereby repeals Resolution No. 2019-20 effective upon appointment of the Housing Element Update Advisory Committee Members, at which time the General Plan Update Steering Committee is dissolved. = cc• Resolution No. 2020 - Page 3 of 3 Section 4: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 5: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly and the formation of a committee is not a project. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 14th day of January, 2020. Will O'Neill Mayor ATTEST: Leilani i. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Attachment 1: Description of the Housing Element Update Advisory Committee 20-9 ATTACHMENT 1 Housing Element Update Advisory Committee AUTHORIZATION: Established by Resolution No. 2020-_ adopted on January 14, 2020. MEMBERSHIP: Ten (10) total. The Mayor, or a City Council Member designated by the Mayor, shall be an ex officio member without the right to vote. Nine (9) residents appointed by the Mayor and confirmed by the City Council. MEMBERSHIP TERM: The person elected as Mayor, or the City Council Member designated by the Mayor, shall be a member of the Housing Element Update Advisory Committee ("Committee'). The term of the appointed members of the Committee shall be indefinite pending City Council action, or expiration of the Committee. MEETINGS: Meetings shall be held as required by the business needs of the Committee in such locations, dates and times as allowed by the Ralph M. Brown Act. QUALIFICATIONS OF APPOINTED MEMBERS: Appointed Committee Members shall be: A. A resident of the City of Newport Beach ("City"); B. A registered voter in the City of Newport Beach; C. Appointed by the Mayor; and D. Confirmed by the City Council. The Committee shall have a Chairperson and a Vice Chairperson appointed by the Mayor. SELECTION OF APPOINTED MEMBERS: Selection of Committee Members shall be done as follows: 1 20-10 A. The City Clerk shall prepare a notice letting members of the public know of the opportunity to serve on the Committee and the application process. The notice shall include, but not be limited to, details regarding what information is necessary to be considered for appointment, where to submit an application, and the application deadline. B. The application notice shall be published at least once in a newspaper of general circulation in the City and posted in the City's normal posting location for agendas, as well as the Newport Beach Public Library located at 1000 Avocado Avenue. C. The deadline to submit applications for the Committee shall be one (1) week after the application notice is published in a newspaper of general circulation in the City. D. The Mayor shall form an ad-hoc Appointments Committee, which shall be comprised of the Mayor and two (2) Council Members to review the applications, the applicants' answers to any questions, and to conduct any necessary interviews. E. In conducting their review of applications and interviews with the individual applicants, if any, the ad-hoc Appointments Committee shall attempt to determine if there exists a potential conflict of interest, which might interfere with the performance of the applicant's duties in an impartial manner free from bias. F. After the applications have been reviewed and any necessary interviews conducted, the two (2) Council Members on the ad-hoc Appointment Committee shall make a recommendation to the Mayor regarding who should be appointed to the Committee. In making a recommendation to the Mayor, the two (2) Council Members on the ad-hoc Appointment Committee shall 2 20-11 endeavor to avoid recommending appointments of applicants with a substantial conflict of interest, which would require repeated disqualification from voting on issues that are likely to come before the Committee. G. The Mayor shall consider the recommendation of the two (2) Council Members on the ad-hoc Appointment Committee and, after consideration of the recommendation, decide, in the Mayor's discretion, whom should be appointed to the Committee. H. The Mayor shall inform the City Clerk of the names of the members to be appointed to the Committee and the City Clerk will submit the names of the appointees to the City Council, at an open and noticed meeting, to be considered for confirmation by the City Council. I. Except as otherwise required by law, the process for selecting, appointing and confirming members to the Committee shall follow the process set forth herein. PURPOSE & RESPONSIBILITIES: A. Ensure there is sufficient public outreach and stakeholder input regarding the update to the Housing, Land Use, and Circulation Elements of the City of Newport Beach General Plan and any other Elements deemed necessary; B. Review responses to the Request for Proposal for services to update the Housing, Land Use, Circulation, and other Elements deemed necessary; C. Make a recommendation to the City Council regarding the selection of consultants to assist in the update of the Housing, Land Use, Circulation, and other Elements deemed necessary; D. Provide guidance to City staff and the consultant through the outreach process; 3 20-12 E. Provide guidance to City staff, and the consultant, on goals and policies related to the update of the Housing, Land Use, Circulation Elements, and any other Elements deemed necessary by the Committee or City Council; and F. Make other recommendations to the City Council regarding the update of the General Plan, as necessary. COMMITTEE EXPIRATION: The Committee shall expire and sunset without further action upon completion and submittal of a certifiable Housing Element to the California Department of Housing and Community Development. 4 20-13 Attachment B JANUARY 2020 HOUSING ACTION PLAN 20-14 CITY OF NEWPORT BEACH JANUARY 2020 HOUSING ACTION PLAN Objective Action Action Steps Stake Holders Due Date A. Pursue legislative 1. Request a two-year extension beyond the a. Request assistance from I. Assemblywoman Feb. 2020 amendments to October 2021 deadline to provide Assemblywoman Cottie Petri -Norris. Cottie Petri -Norris assist the City to realistic and adequate time complete the obtain compliance Housing Element. b. Request assistance from Senator II. State Senator John with the Housing Moorlach. Moorlach Element due date of 2. Request to waive or partially waive the October 15, 2021 California Environmental Quality Act c. Send formal communication to the III. HCD (CEQA) requirements for updating the Department of Housing Community Housing Element due to State mandates. Development (HCD). IV. League of California Cities 3. Amend Govt Code 65583.2 to allow more d. Collaborate with Governor Newsom's flexibility or automatic approval of sites office. meeting certain clear standards when determining suitability of housing e. Collaborate with the League of opportunity sites. California Cities. 4. Amend the allowance that permits a local government to credit up to 25 percent of their RHNA sites requirements through existing units that will be substantially rehabilitated B. Reduce Regional 5. Reduce the current RHNA of 4,832 f. File an appeal of final allocation I. OCCOG Feb. 2020 Housing Needs housing units. numbers to Southern California Allocation (RHNA) Association of Governments (SCAG). II. SCAG 6. Support regional efforts to revise RHNA allocation methodology prior to final g. Letter to HCD regarding concerns with II. HCD adoption by SCAG in February. last minute changes to the RHNA allocation at the SCAG hearings. 20-15 CITY OF NEWPORT BEACH JANUARY 2020 HOUSING ACTION PLAN 20-16 C. Change the priorities 7. Change the priority of updating the City's h. Commence with the update of the I. City Council Jan. 2020 of the General Plan General Plan to focus on submitting a Housing Element with the goal of Update to focus on certifiable Housing Element to HCD. meeting the October 2021 deadline. II. Housing Element housing, impacts Update Advisory generated and 8. Commence updating the Housing, Land i. Form a policy committee that can Committee compliance with the Use and Circulation elements. provide recommendations to staff on state requirements housing policy and housing opportunity III. Community 9. Form a goals and policy committee to sites (location of future housing sites). make policy recommendations. D. Regional 10. Work with surrounding cities on j. Collaborate with surrounding Cities, I. Surrounding Cities Jan. — March Collaboration regional solutions to RHNA numbers. such as: 2020 • Costa Mesa II. OCCOG 11. Work with OCCOG on regional • Seal Beach solutions. • Huntington Beach III. League of • Fountain Valley California Cities 12. Request the League of California Cities . Laguna Beach for a coordinated statewide response Irvine to excessive allocation. k. Send a formal request to the League of California Cities for assistance. 20-16