HomeMy WebLinkAbout5c_Additional Materials Presented by Staff_Understanding No-Let-LossNo
Net
Loss
March 3, 2021
HEUAC Meeting
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"
“No Net Loss”: What does it mean?
If a site is developed at a lower density
or affordability level than planned,the
City must demonstrate there is no net
loss of remaining inventory capacity to
meet RHNA.
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"
“No Net Loss”: What does it mean?
If a site is developed at a lower density
or affordability level than planned,the
City must demonstrate there is no net
loss of remaining inventory capacity to
meet RHNA.
If unable to demonstrate capacity,
City must identify new sites and
complete land use changes
within 180 days.
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"
Example:Let’s Look at Parcel A
Parcel A is identified in the sites inventory as accommodating a
capacity of 200 low-income housing units.
200 low-income
units
Parcel A
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"
Parcel A is identified in the sites inventory as accommodating a
capacity of 500 low-income housing units.
As developed,only 20%(40)of the 200 dwelling units are
affordable to low-income households.
160 market-rate
units
40 low-income units
Example:Let’s Look at Parcel A
Parcel A
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"
If no capacity buffer in sites inventory,this approval now results in
a net loss of capacity for 160 low-income units.
The City must then identify additional sites to accommodate the
difference in planned versus developed affordable units (160).
Must also make required land use changes for those
sites within 180 days.
(160 low-income
units)
Example:Let’s Look at Parcel A
Parcel X?Parcel Y?
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"
Also,Charter Section 423 Implications…
Will require a vote of the electorate to
increase density each time.
•Timing (nearly impossible within 180 days)
•Cost of special election
•Uncertainty of outcome
(160 low-income
units)
Parcel X
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"
Why don’t we just deny the project?
City cannot deny the project based on
the need to identify additional sites for
affordable units.
160 market-rate
units
40 low-income units
Parcel A
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"
Violating No Net Loss is violating Housing Element Law.
Why is it important?
HCD can de-certify Housing Element and refer the violation to the
Attorney General’s Office.
•Significant fines
•Withholding State funding
•Court-ordered prevention on building permits,etc.
•Rollover unmet need into 7th Cycle RHNA
•Lawsuits
No Net Loss should be considered during the initial sites
identification process to prevent future shortfall scenarios.
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"
Thank you!
Questions?
Seimone Jurjis,CDD Director
Jim Campbell,Deputy CDD Director
Jaime Murillo,Principal Planner
Ben Zdeba,Senior Planner
GPUpdate@newportbeachca.gov
Housing Element Update Advisory Committee - March 3, 2021 Item No. V(c) Additional Materials Presented at Meeting by Staff Understanding "No-Let-Loss"