HomeMy WebLinkAbout07 - Opposing the Modified RHNA Allocation Methodology Approved by the Southern California Association of Governments Regional CouncilQ �EwPpRT
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FROM
CITY OF
NEWPORT BEACH
City Council Staff Report
PREPARED BY:
PHONE:
January 28, 2020
Agenda Item No. 7
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Seimone Jurjis, Community Development Director - 949-644-3232,
sjurjis@newportbeachca.gov
Benjamin M. Zdeba, AICP, Senior Planner
949-644-3253
TITLE: Resolution No 2020-8: Opposing the Modified RHNA Allocation
Methodology Approved by the Southern California Association of
Governments Regional Council
ABSTRACT:
City staff actively participated and collaborated with Southern California Association of
Governments (SCAG) staff in creating an equitable Regional Housing Needs Assessment
(RHNA) allocation methodology that furthers the State's objectives on housing. On
November 7, 2019, this RHNA allocation methodology, which was recommended for
approval by SCAG staff, came before the SCAG Regional Council. Prior to any vote, an
alternative was proposed by way of a substitute motion made by the Mayor of the City of
Riverside. This alternative methodology effectively shifted a substantial portion of the
allocations away from developing inland areas, such as Riverside and San Bernardino
Counties, and increased allocations in constricted and congested coastal areas in Orange
County, including Newport Beach. The City Council requested City staff draft a resolution
expressing the City's opposition to the alternative methodology.
RECOMMENDATION:
a) Determine this action is 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;
and
b) Adopt Resolution No. 2020-8, A Resolution of the City Council of the City of Newport
Beach, California, Opposing the Modified Regional Housing Needs Assessment
Allocation Methodology Approved by the Southern California Association of
Governments Regional Council.
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item.
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Resolution No 2020-8: Opposing the Modified RHNA Allocation Methodology Approved
by the Southern California Association of Governments Regional Council
January 28, 2020
Page 2
BACKGROUND AND DISCUSSION:
Following months of public input and collaboration with local jurisdictions within the SCAG
region, SCAG Regional Council approved the public release of three draft 6t" cycle RHNA
allocation methodologies for consideration in August 2019. Multiple public hearings were
held over the next month allowing SCAG staff to present each of the three methodologies
and receive additional public input. City staff attended and provided oral and written
comments. At the conclusion of these hearings, SCAG staff identified its recommended
methodology to bring before the RHNA Subcommittee of the SCAG Regional Council.
In October 2019, the RHNA Subcommittee, as well as the SCAG Community, Economic,
and Human Development (CEHD) Committee, voted to recommend that SCAG Regional
Council forward staff's recommended methodology to the California Department of
Housing and Community Development (HCD) for consideration. This resulted in the City
of Newport Beach's allocation of 2,751 housing units.
On November 7, 2019, SCAG Regional Council held a hearing and received a substitute
motion from the representative for the City and County of Riverside for approval of a
modified and un -vetted methodology. This last-minute alternative effectively shifted
significant portions of the RHNA allocations away from developing inland areas and
towards constrained coastal areas, including most of Orange County. On a contested
vote of 43-19 the alternative draft methodology was approved for submittal to HCD
despite a lack of detail regarding the associated impacts, supporting documentation as to
the merit of the changes, and any opportunity for stakeholder input. This un -vetted
methodology raised the City's share of RHNA allocation from 2,751 to 4,832 housing
units.
On January 13, 2020, HCD issued a letter to SCAG indicating its agreement with and
support for the un -vetted methodology.
At the January 14, 2020, City Council meeting, the City Council discussed a proposed
Housing Action Plan detailing the steps forward to challenge the alternative methodology
yet pursuing compliance with the RHNA allocation. The City Council directed staff to
prepare a resolution (Attachment A) expressing the City's opposition to the alternate
un -vetted methodology.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action 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.
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Resolution No 2020-8: Opposing the Modified RHNA Allocation Methodology Approved
by the Southern California Association of Governments Regional Council
January 28, 2020
Page 3
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).
ATTACHMENT:
Attachment A — Resolution No. 2020-8
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ATTACHMENT A
RESOLUTION NO. 2020-8
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, OPPOSING THE
MODIFIED REGIONAL HOUSING NEEDS ASSESSMENT
ALLOCATION METHODOLOGY APPROVED BY THE
SOUTHERN CALIFORNIA ASSOCIATION OF
GOVERNMENTS REGIONAL COUNCIL
WHEREAS, California state housing law requires that each city and county plan
for existing and future housing needs in accordance with the outcome of the Regional
Housing Needs Assessment ("RHNA") process;
WHEREAS, the Southern California Association of Governments ("SCAG") is
responsible for developing a uniform methodology for the distribution of the RHNA
allocation among member cities and counties;
WHEREAS, a transparent and collaborative approach to regional planning,
involving opportunity for informed stakeholder input and thoughtful deliberation, is critical
to achieving desirable and equitable outcomes;
WHEREAS, the SCAG process to develop the allocation methodology for the sixth
(6th) cycle RHNA, covering the planning period from October 2021 through October 2029,
included opportunities for stakeholder engagement throughout, including detailed
discussion of three (3) draft allocation methodology options during a series of public
meetings and hearings intended to ensure robust participation by the public and affected
agencies;
WHEREAS, the City of Newport Beach ("City") has expended significant local
resources over the past decade toward addressing housing related issues and has far
surpassed the total number of units stipulated by its fifth (5th) cycle jurisdictional RHNA
allocation, and has similarly been a cooperative and active participant in the fourth (4th)
and fifth (5th) cycle RHNA, providing comments on the draft SCAG methodologies;
WHEREAS, based in part on stakeholder input, SCAG staff developed a single
recommended RHNA allocation methodology which was introduced in September 2019,
at a public workshop, subsequently reviewed by the SCAG RHNA Subcommittee
(including the Orange County representative) and SCAG Community, Economic, and
Human Development ("CEHD") Committee, and ultimately recommended for SCAG
Regional Council consideration and submittal to the California Department of Housing
and Community Development ("HCD");
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Resolution 2020 -
Page 2 of 4
WHEREAS, at the November 7, 2019 meeting of the SCAG Regional Council to
consider the recommended RHNA allocation methodology, a substitute motion was made
by the City of Riverside introducing a modified RHNA methodology, which effectively would
shift a significant portion of the sixth (6th) cycle RHNA regional allocation away from
developing areas such as Riverside and San Bernardino County and toward already
congested and impacted coastal areas including predominately Orange County
jurisdictions;
WHEREAS, the modified RHNA allocation methodology was approved for
submittal to HCD by the SCAG Regional Council on a contested vote of 43-19 (opposed
by all Orange County SCAG representatives), despite a lack of detail regarding the
associated impacts of the proposed methodology changes, supporting documentation as
to the merit of the proposed changes, nor any opportunity for informed stakeholder input;
WHEREAS, the City of Newport Beach did not receive sufficient or adequate
advance notice that SCAG would entertain a substantially modified methodology and,
until November 7, 2019, SCAG had consistently and repeatedly set forth certain
methodologies upon which the City has relied in developing its plans and position on the
RHNA allocation process;
WHEREAS, the modified methodology fails to adequately account for local input,
growth forecast data and other government agencies' laws and regulations affecting
housing growth. Due to the late introduction by substitute motion, the modified
methodology was not fully analyzed for potential impacts by SCAG staff before a vote of
the Regional Council;
WHEREAS, the modified methodology would increase the City's affordable
housing target by approximately one -hundred and seventy-five (175) percent, as
compared to the proposed methodology that was vetted and recommended by SCAG
staff;
WHEREAS, adopting future policies to accommodate the increased target RHNA
allocation would be detrimental to the health, safety and welfare of Newport Beach
residents and its millions of visitors, while also undermining community character and any
future vision that is not wholly housing -centric;
WHEREAS, this increased target, that does not take into account the City and
other government agencies' laws and regulations, is untenable for a mid-sized suburban
coastal community with tremendous environmental and topographical constraints such
as Newport Beach;
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Resolution 2020 -
Page 3 of 4
WHEREAS, the ramifications of this abrupt, unvetted methodology shift are
further compounded by and should be viewed in the context of recently passed state
housing laws with which local jurisdictions are obligated to comply, including, but not
limited to, SB 35 streamlining requirements, which purport to preempt the full exercise of
local land use authority over development applications proposing affordable housing
production for jurisdictions that fail to make sufficient progress toward meeting their
RHNA allocations;
WHEREAS, HCD has reviewed SCAG's Draft RHNA methodology and found that
it furthers the five (5) statutory objectives of RHNA, as described in its letter to SCAG
dated January 13, 2020; and
WHEREAS, the City disagrees with HCD's findings for the reasons stated in the
letter from Newport Beach Mayor Will O'Neill to HCD dated December 23, 2019.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council is a strong advocate of the development of housing,
including affordable housing, and of local control as the best means to protect the City of
Newport Beach, its residents and business owners, and promote the goals and priorities
of the community. The modified RHNA allocation methodology undermines the integrity
of what is mandated to be a collaborative RHNA process, negating months of local
participation conducted in good faith and posing a significant threat of lasting damage to
the region as well as City of Newport Beach if permitted to stand. The City Council
therefore publicly states its opposition to the modified RHNA allocation methodology
approved by the SCAG Regional Council and intends to file an appeal of the RHNA
allocation methodology.
Section 2: The City's Community Development Director is hereby directed to
take all reasonable steps to reduce the allocation resulting from the modified RHNA
allocation methodology and to take the action described in Section 1.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
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Resolution 2020 -
Page 4 of 4
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 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.
Section 6: 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 28th day of January, 2020.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
<c Aaro C. Harp
City ttorney
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