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c�<,FORN'P City Council Staff Report
October 26, 2021
Agenda Item No. SS2
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Community Development Director - 949-644-3232,
sjurjis@newportbeachca.gov
PREPARED BY: Jim Campbell, Deputy Community Development Director
PHONE: 949-644-3210, jcampbell@newportbeachca.gov
TITLE: Housing Element Update Status Report (PA2017-141)
ABSTRACT:
The State Department of Housing and Community Development (HCD) has provided
comments on the draft Housing Element. During the study session presentation, staff will
provide a summary of the more noteworthy comments and the efforts to revise the draft
Housing Element consistent with HCD's comments.
RECOMMENDATION:
Provide input and direction on staff's efforts to revise the draft Housing Element.
DISCUSSION:
HCD has provided comments on the draft Housing Element (Attachment A) submitted by
the City of Newport Beach. Addressing the comments in full is necessary to allow HCD
to certify the Housing Element as consistent with State Housing Element laws.
During the study session presentation, staff will provide a summary of the more
noteworthy comments and the efforts to revise the draft Housing Element consistent with
HCD's comments. Additionally, staff will provide an update on the environmental review
process as well as the schedule going forward.
No final action on the Housing Element update will occur at this meeting.
ATTACHMENT:
Attachment A — Letter Dated October 12, 2021 from HCD
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Attachment A
Letter dated 10/12/2021 from HCD
on City's Draft Housing Element
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
0 0'
2020 W. EI Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
October 12, 2021
Seimone Jurjis, Director
Community Development Department
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Dear Seimone Jurjis:
RE: City of Newport Beach's 6th Cycle (2021-2029) Draft Housing Element
Thank you for submitting the City of Newport Beach's (City) draft housing element
received for review on August 13, 2021. 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 telephone
conversation on October 6, 2021 with you, Deputy Community Development Director Jim
Campbell, Principal Planner Jaime Murillo, and consultant Dave Barquist of Kimley-Horn.
In addition, HCD considered comments from the Campaign for Fair Housing Elements,
the Kennedy Commission, YIMBY Law, and individuals such as Anne Paulson and Josh
Albrektson, 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).
For example, the site inventory must further demonstrate the suitability and availability of
several sites in the planning period, various program actions must be revised to fulfill
statutory requirements, and the Assessment of Fair Housing must be updated to meet
the obligation to Affirmatively Further Fair Housing (AFFH). The enclosed Appendix
describes these and other revisions needed to comply with State Housing Element Law.
The City's statutory deadline to adopt a housing element is October 15, 2021. 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 this statutory
deadline, 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).
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Seimone Jurjis, 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.
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:
http://opr.ca.gov/docs/OPR Appendix C final.pdf and
http://opr.ca.gov/docs/Final 6.26.15.pdf.
HCD is 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 Colin Cross, of our staff, at colin.crossCc-_)hcd.ca.gov.
Sincerely,
WVVA( Ze7
Paul McDougall
Senior Program Manager
Enclosure
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APPENDIX
CITY OF NEWPORT BEACH
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.shtmi.
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. Housing Needs, Resources, and Constraints
1. Affirmatively furthering] 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).)
The element includes some data and information regarding affirmatively furthering fair
housing (AFFH) but it must still add data, local knowledge, analysis, and other relevant
factors to address this statutory requirement, as follows:
Regional Patterns and Trends: For all categories of analysis (segregation and
integration, racially and ethnically concentrated areas of poverty and affluence, access
to opportunity, and disproportionate housing needs, including displacement), the
element addresses some requirements to analyze local patterns and trends. However,
the element must also analyze regional patterns and trends for each category and
subcategory of analysis. A regional analysis should compare conditions at the local
level to the rest of the region. This analysis could compare the locality at a county level
or other subregional geography.
Segregation and Integration: The element analyzes segregation and integration on the
basis of race at the local level. However, this component of the analysis should also
address segregation and integration by disability, familial status, and income. The
analysis must also conclude with a summary of fair housing issues.
Access to Opportunity: The element addresses some of the requirements for access to
opportunity, discussing economic, environmental, and transportation opportunity. It
should also address access to educational opportunity.
Disproportionate Housing Needs: Currently, the element provides data and limited
analysis for cost burden and overcrowding. The analysis of disproportionate housing
needs should also address substandard housing, homelessness, and displacement
risk.
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Local Data and Knowledge: In addition to the data sources relied on in the current
draft, the element must support its analysis with local data and knowledge, including
information obtained through community participation or consultation.
Site Inventory: The element contains an analysis of the site inventory that does not fully
identify whether sites improve or exacerbate conditions or whether the 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 effects the existing patterns for all components of the assessment
of fair housing (e.g., segregation and integration, access to opportunity). The element
should also 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 mitigate this (e.g. anti -displacement strategies).
Contributing Factors: The element describes contributing factors from the Orange
County Analysis of Impediments (p. 3-60) but should also tailor contributing factors
unique to the City. Contributing factors should be based on all the prior efforts and
analyses (outreach, assessment of fair housing, and site inventory) and should be
prioritized to demonstrate the most salient fair housing issues in Newport Beach. The
analysis shall result in strategic approaches to inform and connect goals and actions to
mitigate contributing factors to fair housing issues.
Strategies and Actions: Goals and actions must significantly seek to overcome
contributing factors to fair housing issues. Currently, the element includes Policy Action
4A (Affirmatively Furthering Fair Housing), which commits the City to reviewing
discrimination complaints, assisting in dispute resolution, and referring complaints to
the proper authority, in collaboration with local and regional organizations. This is not
adequate to satisfy the requirement for specific and meaningful actions. Program
actions should be proactive, facilitate meaningful change, and respond directly to the
contributing factors to fair housing that were identified. Furthermore, the element must
include metrics and milestones for evaluating progress on programs, actions, and fair
housing results. The element must add and revise programs based on a complete
analysis and drawn from the identified and prioritize contributing factors to fair housing
issues.
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).)
While the element quantifies the existing housing needs of extremely low-income (ELI)
households, it must still quantify projected ELI 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 very low-income households qualify as ELI households.
3. An inventory of land suitable and available for residential development, including
vacant sites and sites having realistic and demonstrated potential for redevelopment
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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 regional housing need allocation (RHNA) of 4,845 housing units, of
which 2,386 are for lower-income households. To address this need, the element relies
on vacant and nonvacant sites across six Focus Areas throughout the City. To
demonstrate the 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 (pp. B-7-10) that five projects
consisting of 120 affordable units and 1,471 above moderate -income units are in the
pipeline, but it provides no information about these projects except their names. The
City's RHNA may be reduced by the number of new units built since June 30, 2021;
however, the element must demonstrate the affordability of these units to the various
income groups based on actual sales price, rent level or other mechanisms ensuring
affordability (e.g., deed restrictions). The element must also describe the approval
status and basic features of these projects to demonstrate their anticipated availability
in the planning period.
Realistic Capacity: The element provides various assumptions of buildout for sites
included in the inventory's six Focus Areas, assuming close to the maximum yield on
each site and then applying a percentage to the Focus Area as a whole (e.g., 18
percent for the Airport Area Environs Focus Area). It must also provide support for
these assumptions. For example, the element should demonstrate what specific
trends, factors, and other evidence led to the assumptions. The estimate of the number
of units for each site may need to be adjusted 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 on the current or planned availability
and accessibility of sufficient water, sewer, and dry utilities.
In addition, for sites where zoning allows 100 percent nonresidential uses, this analysis
must adjust for the likelihood of nonresidential development. For example, the element
could describe the underlying zoning, whether 100 percent nonresidential development
is allowed in these zones, and any relevant programs or policies the City is undertaking
to facilitate residential development in nonresidential zones.
Suitability of Nonvacant Sites: The element must include an analysis demonstrating the
potential for redevelopment of nonvacant sites. To address this requirement, the
element describes in general the existing use of each nonvacant site (e.g., office
building). This alone is not adequate or to demonstrate the potential for redevelopment
in the planning period. The analysis should consider factors including the extent to
which existing uses may constitute an impediment to additional residential
development, the City'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
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additional residential development on these sites. For example, the element could
consider indicators such as age and condition of the existing structure, presence of
expiring leases, expressed developer interest, low improvement to land value ratio, and
other factors. The element should describe and support (through development trends)
the thresholds used to identify sites for redevelopment.
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 RHNA.
Small and Large Sites: While the narrative claims that sites smaller than 0.5 acres and
larger than 10 acres were excluded from consideration for lower-income RHNA, the
parcel listing appears to include several such sites. The element must describe
whether these parcels are expected to develop individually or consolidated with the
other small parcels. For parcels anticipated to be consolidated, the element must
demonstrate the potential for lot consolidation. For example, analysis describing the
City's role or track record in facilitating small -lot consolidation, policies or incentives
offered or proposed to encourage and facilitate lot consolidation, conditions rendering
parcels suitable and ready for redevelopment, recent trends of lot consolidation, and
information on the owners of each aggregated site. For parcels anticipated to develop
individually, the element must describe existing and proposed policies or incentives the
City will offer to facilitate development of small sites. This is important given the
necessary economies of scale to facilitate development of housing affordable to lower-
income households.
To demonstrate the viability of appropriate development in the Coyote Canyon and
Banning Ranch Focus Areas, the element must include analysis demonstrating the
feasibility of large parcel development of housing affordable to lower-income
households. In Coyote Canyon, the primary site is 243.23 acres with 22 buildable
acres, and Banning Ranch includes several hundred acres of land. The element must
demonstrate the suitability and availability of these areas for residential development
affordable to lower-income households, particularly considering that typical affordable
developments range in size from 50 to 150 units. The analysis could describe
strategies such as opportunities for specific -plan development and further subdivision
or other methods to facilitate the development of housing affordable to lower-income
households on large sites.
Banning Ranch: The element assumes 1,475 units in the Banning Ranch Focus Area,
explaining without further detail that "the City understands that future opportunities may
still exist for housing development on the Banning Ranch" (p. B-56). HCD understands
this area might not be available for residential development in the planning period. The
element must analyze potential environmental constraints and any other known
conditions that may preclude or impact residential development during the planning
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period. Based on the outcomes of this analysis, the element should adjust assumptions
and add or modify programs as appropriate.
Accessory Dwelling Units (ADUs): The element assumes an average of 125 ADUs per
year will be constructed during the planning period, for a total of 1,000 ADUs. The
element's analysis and programs do not support this assumption. Based on HCD
records and numbers reported in the element, the City is averaging about 5 ADU
permits per year since 2018. To include a realistic estimate of the potential for ADUs,
the element must reduce the number of ADUs assumed per year and include policies
and programs that incentivize the production of ADUs. Depending on the analysis, the
element must commit to monitor ADU production throughout the course of the planning
period and implement additional actions if not meeting target numbers anticipated in
the housing element. In addition to monitoring production, this program should also
monitor affordability. Additional actions, if necessary, should be taken in a timely
manner (e.g., within 6 months). Finally, if necessary, the degree of additional actions
should be in stride with the degree of the gap in production and affordability. For
example, if actual production and affordability of ADUs is far from anticipated trends,
then rezoning or something similar would be an appropriate action. If actual production
and affordability is near anticipated trends, then measures like outreach and marketing
might be more appropriate.
Sites with Zoning for a Variety of Housing Types:
Single Room Occupancy (SRO) Units: The element does not demonstrate a
zone(s) where SROs are an allowable use. The analysis should clarify the City's
process for SROs and add or modify programs as appropriate.
Accessory Dwelling Units (ADUs): For your information, HCD's ADU team has
identified several areas in which the City's ADU ordinance appears to be out of
compliance with State ADU Law. HCD will reach out with findings and guidance
under separate cover.
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. The analysis shall
also demonstrate local efforts to remove governmental constraints that hinder the
locality from 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). Transitional housing and supportive housing shall
be considered a residential use of property, and shall be subject only to those
restrictions that apply to other residential dwellings of the same type in the same zone.
(Gov. Code, § 65583, subd. (a)(5).)
Land -Use Controls: The element must identify and analyze all relevant land -use
controls as potential constraints on a variety of housing types, both independently and
cumulatively with other land -use controls. The analysis should further address height
City of Newport Beach's 6t" Cycle Draft Housing Element Page 5
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maximums in the Multiple Residential (RM) zone and the various Mixed -Use (MU)
zones, especially as they relate to the Height Overlay and describe if the height overlay
or heights allowing more than two stories will apply to the sites included in the
inventory. Additionally, the element should analyze the requirement for two covered
parking spaces per unit plus 0.5 spaces of guest parking for every dwelling in a multi-
family development of four or more units. Programs to mitigate potential constraints
should be added or modified as appropriate.
Design Review: The element must describe and analyze any design review guidelines
and processes the City has, 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.
Constraints to Housing for Persons with Disabilities: While the element provides some
details on residential care facilities and other group homes, the City did not provide an
analysis of the impact on housing for lower-income households and persons with
disabilities. The element details that residential care facilities serving six or fewer persons
are permitted in all residential zones. However, residential care facilities serving seven or
more persons require a conditional use permit (CUP). The element should analyze the
process as a potential constraint on housing for persons with disabilities and add or modify
programs as appropriate to ensure zoning permits group homes objectively with approval
certainty. For example, imposing standards such as compatibility with surrounding uses
would be considered a constraint. Although local ordinances and policies are enacted to
protect the health and safety of citizens and further the general welfare, it is useful to
periodically reexamine local ordinances and policies to determine whether, under current
conditions, they are accomplishing their intended purpose or constituting a barrier to the
maintenance, improvement, or development of housing for all income levels. Such an
examination may reveal that certain policies have a disproportionate or negative impact on
the development of particular housing types or on housing developed for persons with
disabilities. Ordinances, policies, or practices that have the effect of excluding protected
populations such as persons with disabilities may also violate state and federal fair housing
laws that prohibit any land -use requirements that discriminate (or have the effect of
discriminating) against affordable housing.
City Charter Section 423: The element describes the background and process of City
Charter Section 423, which subjects certain amendments to the City's general plan to
voter approval. However, the analysis of Section 423's potential as a constraint to
housing development is limited. A full analysis should demonstrate local efforts to
remove governmental constraints that hinder the locality from meeting its share of the
regional housing need and from meeting the need for housing for persons with
disabilities, supportive housing, transitional housing, and emergency shelters. In
addition, the element should indicate if any of the potential rezones to accommodate
the RHNA will be subject to voter approval and include a program that outlines the
steps, timing for voter approval and alternative actions with dates if milestones are not
met.
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5. An analysis of potential and actual nongovernmental constraints upon the
maintenance, improvement, or development of housing for all income levels, including
the availability of financing, the price of land, the cost of construction, the 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. The analysis shall also demonstrate local efforts to remove nongovernmental
constraints that create a gap between the locality's planning for the development of
housing for all income levels and the construction of that housing. (Gov. Code, §
65583, subd. (a)(6).)
The element must include analysis of 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 the jurisdiction's share of the regional housing
need.
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 City's special needs populations, it must also analyze
their special housing needs. For a complete analysis of each population group, the
element should discuss challenges faced by the population, the existing resources to
meet those needs (availability senior housing units, number of large units, number of
deed restricted units, etc.), an assessment of any gaps in resources, and proposed
policies, programs, and funding to help address those gaps.
B. Housing Programs
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. For example, Policy Action 1J (ADU Amnesty Program) should be revised
to include a quantified objective for the number of households expected to utilize the
program.
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Please note that several programs involve taking action to comply with state law, and
as such should include timelines that ensure a beneficial impact by committing to
compliance within the first year of the planning period. Programs with actions that
require an accelerated timeframe include Policy Action 3B (SB 35 Streamlining) and
Policy Action 7A (Supportive Housing / Low Barrier Navigation Centers).
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. In addition, the element should be revised as follows:
Zoning to Accommodate a Shortfall of Site for Lower: Pursuant to Government Code
65583.2, subdivisions (h) & (i), Policy Actions 1A-1 F, which rezone sites to
accommodate the City's shortfall in satisfying the RHNA, must commit to the following:
• permit owner -occupied and rental multifamily uses by -right for developments in
which 20 percent or more of the units are affordable to lower-income households.
By -right means local government review must not require a CUP, planned unit
development permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites
designated for residential use only or on sites zoned for mixed uses that
accommodate all of the very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a mixed-use
project.
In addition, if the rezoning of sites is subject to a voter approval City Charter Section
423, the program must detail any necessary steps, timing for completion of those steps
and alternative measures with dates if milestones are not met. Please be aware, if
voter approval is required and subsequently rejected, the housing element may no
longer comply with state law.
Sites Identified in Prior Planning Periods: The element includes Policy Action 1 G
(5th Cycle Housing Element Sites), which addresses the requirement for nonvacant
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October 12, 2021
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sites identified in a prior planning period to permit residential uses by -right for
developments in which 20 percent of units are affordable to lower-income
households. This program must also commit to zoning those sites to allow Newport
Beach's default density of 30 du/ac, pursuant to Government Code 65583.2,
subdivision(c) or at densities demonstrated to be appropriate for the development
of housing for lower-income households. Additionally, if any vacant sites in the
inventory are being used to accommodate the lower RHNA and have been
identified in two prior planning periods, the program must ensure that those sites
meet the same requirements.
ADU Monitoring: The element includes Policy Action 11 (ADU Monitoring Program),
which commits the City to establishing an ADU monitoring program. This program
should commit explicitly to monitoring ADU production by affordability, and to
implementing additional actions if not meeting target numbers at affordability levels
anticipated in the housing element. Additional actions, if necessary, should be taken in
a timely manner (e.g., within 6 months).
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(s) A4 and A5, 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 AFFH 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 Al, the element must include a complete Assessment of Fair
Housing, and Policy Action 4A (AFFH) does not satisfy the requirements for specific
and meaningful program actions. Based on the outcomes of that analysis, the element
must add or modify programs. 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. For additional guidance on
program requirements to AFFH, please see HCD's guidance at
https://www.hcd.ca.gov/community-development/housing-element/housing-element-
memos.shtml.
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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).)
The element includes Policy Action 2C (Preservation of At -risk Units). The element
identifies 19 units at -risk of converting to market -rate uses in the planning period.
Therefore, the element must include a program(s) with specific and proactive actions to
preserve the at -risk units such as developing a plan or strategy for quickly moving
forward in the case units are noticed to convert to market -rate uses in the planning
period, and ensure tenants receive proper notifications.
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) (8).)
While the element profiles the strategies undertaken to achieve public participation, it must
also describe how the City reached all economic segments of the population in conducting
outreach related to its survey and workshops, particularly lower-income households; this
should also consider language access. The element should also clarify whether and how
any nongovernmental organizations and other parties were notified. 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.
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