Loading...
HomeMy WebLinkAbout3.0_2021-2029 6th Cycle Housing Element Update_PA2017-141CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT December 9, 2021 Agenda Item No. 3 SUBJECT: 2021-2029 6th Cycle Housing Element Update (PA2017-141) ▪General Plan Amendment No. GP2021-005 SITE LOCATION: Citywide APPLICANT: City of Newport Beach PLANNERS: Jim Campbell, Deputy Community Development Director 949-644-3210, jcampbell@newportbeachca.gov Benjamin M. Zdeba, AICP, Senior Planner 949-644-3253, bzdeba@newportbeachca.gov SUMMARY An amendment to the Newport Beach General Plan updating the 6th Cycle Housing Element for the 2021-2029 planning period. The Housing Element is one of the mandatory elements of the General Plan, and state law requires it to be updated periodically. The Newport Beach Housing Element details the City’s strategy for enhancing and preserving the community’s character and identifies constraints to the development of housing. It also identifies strategies for expanding housing opportunities and services for all household types and income groups while demonstrating capacity to accommodate the Regional Housing Needs Assessment (RHNA) allocation of 4,845 new housing units. Most importantly, it provides the primary policy guidance for local decision-making related to housing. The draft 6th Cycle Housing Element is an update and revision of the adopted 5th Cycle Housing Element for the 2014-2021 planning period, and it contains updated community data, policies, and programs. The latest draft and prior iterations of the 6th Cycle Housing Element for the 2021-2029 planning period are accessible online at http://www.newportbeachca.gov/DraftHEUpdate. RECOMMENDATION 1)Conduct a public hearing; 2)Find this activity exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; and 3)Adopt Resolution No. PC2021-034 recommending adoption of General Plan Amendment No. GP2021-005 for the 2021-2029 6th Cycle Housing Element Update to the City Council (Attachment No. PC 1). 1 INTENTIONALLY BLANK PAGE2 DISCUSSION Introduction and Background For over two years, City staff has worked alongside the Housing Element Update Advisory Committee (HEUAC), the consultant team, the community, Planning Commission and City Council to prepare a draft General Plan Housing Element update. Staff is committed to working with HCD to submit a final compliant, adopted Housing Element by the end of the 120-day grace period (or February 12, 2022). The following is a brief chronology of past key dates: •March 10, 2021, staff released an initial draft of the General Plan Housing Element Update for the community’s review. This draft was posted online and comments were accepted until April 30, 2021. A summary of those comments is provided in Appendix C of the Draft. •March 22, 2021, virtual community workshop to provide an overview of the draft. •April 8, 2021, staff presented the draft to the Planning Commission for comment. •April 27, 2021, staff presented an updated initial draft with a refined housing plan scenario to the City Council. •June 8, 2021, staff returned to City Council at a study session with updated scenarios to accommodate RHNA growth need. •June 21, 2021, staff conducted a virtual community workshop to discuss an updated housing scenario to accommodate RHNA growth need and discussion policy solutions including housing overlays, inclusionary housing ordinances, and accessory dwelling units. •June 22, 2021, staff returned to City Council at a study session with updated scenarios to accommodate RHNA growth need. •July 13, 2021, staff brought a revised draft of the update to City Council for review and consideration for submittal to HCD for their 60-day statutory review. Direction was provided to delay submittal by 30 days. •August 13, 2021, staff submitted the draft update to HCD. •October 12, 2021, on the 60th day, HCD provided comments to the City regarding the draft. •October 26, 2021, staff presented the HCD comment letter to City Council for review and guidance. 3 •November 16, 2021, staff brought the latest revised draft that is responsive to HCD’s comments to the City Council for review and authorization to submit to HCD for a second 60-day review. •November 17, 2021, staff submitted the latest revised draft to HCD for review. Comments must be provided to the City no later than January 14, 2022. Staff worked carefully to address every HCD comment and believes this draft is nearly in final format, pending HCD’s current 60-day review. Attachment No. PC 2 includes a summary of HCD’s comments and how they were addressed. Navigating the Housing Element The Housing Element is divided into four (4) major sections and includes all necessary information and analysis as required by state law. The complete document, including versions illustrating strike-out changes, is viewable online at http://www.newportbeachca.gov/DraftHEUpdate. The following is an outline of the Housing Element Sections: Section 1: Introduction The Introduction provides a summary of the statutory authority of the Housing Element, discussion of the RHNA, relationship to other Elements of the General Plan, and data sources used in the analyses. It also provides a summary of the content of the Housing Element. Section 2: Community Profile The Community Profile provides a description of the demographic and housing characteristics of Newport Beach. All statutory requirements for analyzing the characteristics of residents and housing units are summarized in this Chapter. Emphasis is provided showing housing trends, areas where overpayment is occurring, areas where overconcentration of units is occurring, and the status of existing housing stock. The analysis contained in this section uses the most currently available data from a variety of federal, state and local sources. Section 3: Housing Resources, Constraints and Affirmatively Further Fair Housing This Section analyzes governmental and non-governmental constraints in the production of housing in the City. It also describes market conditions and land use controls governing the development of residential lands. Constraints related to infrastructure and environmental issues are also described. A summary of housing resources, including a summary of sites available, financial resources and opportunities for energy conservation, is also included. 4 Pursuant to Assembly Bill AB 686 (Chapter 958, Statutes 2018), a needs assessment for affirmatively furthering fair housing is provided. The new statute requires analysis of disparities and dissimilarities in the provision of housing being accessible to all persons regardless of racial, ethnic or economic status. The section evaluates local and regional policies and evaluates resources to address fair housing issues. Section 4: Housing Plan The Housing Plan represents the City’s official policies related to housing. Due to the unique requirements in Housing Element law, these policies may be more detailed and prescriptive than other policies in the General Plan. It also describes overall housing goals, supported by policies and program actions. Each action includes a description of the action, a timeline for its implementation, the party responsible for implementation, and an assumed funding source. The Housing Plan has the following eight goals: Housing Goal #1: Provision of adequate sites to accommodate projected housing unit growth needs identified by the 2021-2029 RHNA. Housing Goal #2: Quality residential development and the preservation, conservation, and appropriate redevelopment of housing stock. Housing Goal #3: A variety of housing types, designs, and opportunities for all social and economic segments. Housing Goal #4: Housing opportunities for as many renter- and owner-occupied households as possible in response to the market demand and RHNA obligations for housing in the city. Housing Goal #5: Preservation of the city’s housing stock for extremely low-, very low-, low-, and moderate-income households. Housing Goal #6: Housing opportunities for special needs populations. Housing Goal #7: Equal housing opportunities in the city for all people. Housing Goal #8: Effective and responsive housing programs and policies. Policies and policy actions follow and are summarized in the next subsection (see “Policy Actions Summary”). Appendix A – Review of Past Performance Evaluates 5th Cycle Housing Element programs by describing accomplishments and summarizing its status for the 6th Cycle. Many of the existing 5th Cycle programs are continued in the 6th Cycle to provide continuity and consistency with the General Plan and to preserve active and currently funded programs or policies. 5 Appendix B – Adequate Sites Analysis Provides a detailed summary of focus areas and a complete list of sites to accommodate the City’s 2021-2029 RHNA allocation of 4,845 units. The analysis includes mapping and identification of sites that will constitute the inventory of sites available for residential uses during the upcoming 2021-2029 planning period. Table B- 1 on Page B-9 (excerpted below) provides a summary of the RHNA allocation and demonstrates how the City is meeting the required need. Table B-1: Summary of RHNA Status and Sites Inventory Extremely Low/ Very Low Income Low Income Moderate Income Above Moderate Income Total Total RHNA Obligations 1,456 930 1,050 1,409 4,845 Sites Available Projects in the Pipeline 175 32 1,455 1,662 Accessory Dwelling Units (ADUs) 163 72 5 240 5th Cycle Sites 0 287 40 327 Remaining RHNA 2,048 659 -- 2,707 Airport Area Environs Rezone 558 186 1,116 1,860 West Newport Mesa Rezone 292 97 584 973 Dover-Westcliff Rezone 119 40 238 397 Newport Center Rezone 526 175 1,052 1,753 Coyote Canyon Rezone 330 132 858 1,320 Banning Ranch Rezone 443 148 884 1,475 Total Potential Capacity of Rezones 2,268 778 4,732 7,778 Total Potential Development Capacity 2,606 1,169 6,236 10,011 Sites Surplus/Shortfall (+/-) +220 +119 +4,823 +5,166 Percentage Buffer 9% 11% 343% 107% 6 The top row identifies the RHNA breakdown by income category. The next three rows under “Sites Available” indicate what the City currently has in the development pipeline. This includes projects that are entitled and not yet built or projects that have been applied for, as well as those sites that were previously identified as housing opportunity sites within the 2014-2021 5th Cycle Housing Element. Also included in this section is the City’s accessory dwelling unit (ADU) strategy of 240 units. This amount represents a growth factor of approximately 1.5 times the City’s actual past four-year average production of 19 ADUs, resulting in a total anticipated production of approximately 30 ADUs per year or a total of 240 ADUs for the 2021-2029 planning period. The growth factor of 1.5 accounts for anticipated growth associated with increased public awareness of ADU opportunities and the City’s demonstrated commitment to ADU development through policies and programs such as Council Policy K-4, fee waivers, and proposed programs committing to developing pre- approved plans increased public outreach. Staff consulted closely with HCD to determine an appropriate projection. The unit counts in those three rows are deducted from the “Total RHNA Obligations” and result in the “Remaining RHNA.” The next six rows identify focus areas for residential rezoning to help meet the remaining, unmet need. The “Total Potential Development Capacity” row is the sum of the three development pipeline rows and the six rezoning rows. The resultant surpluses are shown in the row below and translate to the buffer percentages. Please note, this table correlates to all tables in Appendix B. Appendix C – Community Engagement Summary Provides a summary of all community engagement activities, including meetings, workshops, HEUAC Meetings and other print and digital engagement with the community and stakeholders. Appendix D – Accessory Dwelling Unit Analysis Provides expanded discussion in support of the City’s desire to assume 240 accessory dwelling units, which is above the “Safe Harbor” provisions described in the HCD’s guidance document. The discussion in the Appendix is further supported by Policies 1H, 1I and 1J described below. Policy Actions Summary While there are many carryover policies from the current 5th Cycle Housing Element, there are also newly required updates and changes in policy for compliance with State law and new legal requirements. Most of the updates relate to demonstrating adequate sites to accommodate the 6th Cycle RHNA allocation and to meet the State’s housing goals 7 expressed through Housing Element and related laws. Several of the key policy actions are summarized below and all the actions can be found in Section 4 of the draft. Policy Actions 1A – 1G The draft provides several key focus areas for housing production and indicates those areas will be subject to rezoning for, by-right housing development, using housing opportunity overlays or similar rezoning strategies. Those focus areas include Airport Area Environs, West Newport Mesa, Dover/Westcliff, Newport Center, Banning Ranch, Coyote Canyon, and remaining 5th Cycle Housing Element Sites. The unit targets included in each of these draft policy actions are subject to change based upon City Council and community input, but likely will not result in a material change to the policy actions. Each of the focus areas, except for Banning Ranch, include sites that are not presently designated for housing. The Airport Area Environs focus area is noteworthy as the inventory includes sites that are within the 65 dBA CNEL noise contour from John Wayne Airport where the City has not envisioned new housing previously. The proposed sites are not within the more restrictive safety zones established by the Airport Environs Land Use Plan (AELUP). Creating these opportunity sites will require an amendment of the Noise Element and an override of the Airport Land Use Commission since they found the change inconsistent with the AELUP. On October 12, 2021, City Council voted unanimously to issue a Notice of Intent to Override related to ALUC’s September 16, 2021, determination of inconsistency with the AELUP. The second public hearing on this matter will occur with the Council’s anticipated adoption of the update on February 8, 2022. Policy Actions 1H – 1J In addition, the draft provides policies to encourage the production of accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs). These policies aim to support the construction of at least 240 ADUs or JADUs and include incentives for development, a monitoring program, and an amnesty program for existing unpermitted units to become legal. Policy Action 1K An inclusionary housing program is also proposed to require the production of affordable housing for new residential development projects. This policy is seen as imperative to meeting the higher affordability required in the 6th Cycle RHNA allocation and includes a base of 15 percent affordable. 8 Policy Action 1L This new policy provides for the development of policies, programs and priorities for senior housing. The Policy seeks to develop a comprehensive strategy to further opportunity for senior housing in the community through various policy and regulatory approaches to be determined. Policy Actions 3A – 3B These new policies are required for compliance with State law. They discuss the creation of objective design standards for projects with affordable housing, as well as streamlining residential projects under Senate Bill SB 35, and limit the City’s local review authority under certain conditions. Policy Action 4A This new policy is required under Assembly Bill AB 686, which requires the City take steps to affirmatively further fair housing. Affirmatively furthering fair housing intends to resist discrimination by overcoming patterns of segregation and foster inclusive communities that are free from barriers that restrict access to opportunity based on protected classes. Policy Action 7A – 7D In response to recent changes in State law, the City must address supportive housing and low-barrier navigation centers for people who are experiencing homelessness. These policies include by-right zoning for centers meeting certain criteria, maintaining an inventory of adequate sites for supportive housing facilities, and providing regulatory incentives for housing for persons with developmental disabilities. Summary The 6th Cycle RHNA allocation of 4,845 new housing units for Newport Beach is unprecedentedly high and presents unique challenges for demonstrating compliance. The City has made every effort to work with the community to create a 2021-2029 6th Cycle Housing Element that demonstrates capacity to accommodate the RHNA allocation and complies with state law. Although there may be more comments forthcoming from HCD because of the current 60-day review, it is not anticipated that significant changes to the draft will be required prior to the final review by City Council. To ensure the final update is adopted prior to the February 12, 2022, deadline, City staff requests the Planning Commission’s recommendation for the City Council to adopt a final draft at its regular meeting on February 8, 2022. 9 Environmental Review This action is covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment (Section 15061[b][3] of the State CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment. The proposed 2021-2029 6th Cycle Housing Element Update involves policies, programs, and actions to meet the City’s RHNA allocation that would not cause a significant effect on the environment. The Housing Element Update is a policy document and does not provide development entitlements to any specific land use projects, nor does it make any changes to the General Plan land use map or modify land use designations, densities, or land use intensities. Given their nature and scope, the proposed Housing Element Update programs and policies would not result in physical environmental impacts. Future housing development pursuant to the Housing Element Update would be subject to compliance with the established regulatory framework, including federal, state, regional, and local regulations. Public Notice Given the citywide nature of this activity, notice of this hearing was published in the Daily Pilot in a one-eighth-page format at least 10 days before the scheduled meeting, consistent with Section 20.62.020(B)(2)(c) of the NBMC. Additionally, the item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Prepared by: Prepared and Submitted by: _____________________ Benjamin M. Zdeba, AICP Senior Planner ATTACHMENTS PC 1 Draft Resolution PC 2 Matrix of HCD Comments and City Responses PC 3 Draft 6th Cycle Housing Element Update for 2021-2029 01/12/18 10 Attachment No. PC 1 Draft Resolution 11 INTENTIONALLY BLANK PAGE12 RESOLUTION NO. PC2021-034 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING THE CITY COUNCIL ADOPT THE 6TH CYCLE DRAFT HOUSING ELEMENT FOR THE 2021-2029 PERIOD, GENERAL PLAN AMENDMENT NO. GP2021-005 (PA2017-141) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. 1. Section 65580 of the California Government Code (“Government Code”) finds and declares that the availability of housing is of vital statewide importance and that early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order. 2. Sections 65580 to 65589 of the Government Code require each city and county adopt a housing element that identifies and analyzes existing and projected housing needs within their jurisdiction and prepare goals, policies, and programs, and quantified objectives to further the development, improvement, and preservation of housing (“Housing Element”). 3. The Housing Element is one of the mandatory elements of the General Plan that must be periodically updated in accordance with state law. 4. The 6th Cycle Draft Housing Element for the 2021-2029 period (“Draft”) presents a framework for meeting the housing needs of existing and future resident populations within the City of Newport Beach (“City”) based on the Regional Housing Needs Assessment (“RHNA”) allocation of 4,845 new housing units. 5. Pursuant to Government Code Section 65583(c)(7), a robust public participation effort concerning housing has been ongoing. Since October 2019, the City held thirteen community workshops, worked with the Housing Element Update Advisory Committee (“HEUAC”) at fourteen Brown Act meetings, and brought iterations of the draft to one (1) duly noticed Planning Commission study session and six (6) duly noticed City Council study sessions. 6. On August 13, 2021, the City submitted the Draft to the State Department of Housing and Community Development (“HCD”) for a 60-day statutory review. 7. On October 12, 2021, HCD issued preliminary comments to the City necessitating revisions to the Draft for compliance with the statutory requirements. 8. On November 16, 2021, staff presented a revised draft that incorporated and addressed all revisions required by HCD to the City Council for authorization to resubmit to HCD. 13 9. On November 17, 2021, the Draft was submitted to HCD for a second 60-day review with comments due back to the City no later than January 14, 2022. While there may be further changes to the Draft required depending on the comments received from HCD, it is not anticipated these comments will significantly change the Draft. Moreover, the penalties set forth in Assembly Bill 1398 dictate strict compliance with the statutory deadlines for completion of the Draft. 10. On December 9, 2021, a public hearing was held in the Council Chambers at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the hearing was given in accordance with California Sections 54950 et seq. (“Ralph M. Brown Act”) and 65353 of the Government Code and consistent with City Council Policy K-1 (General Plan and Local Coastal Program). Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this hearing. SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION. 1. The Draft is not a project under the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the California Code of Regulations, Title 14, Division 6, Chapter 3 (“CEQA Guidelines”), the common-sense exemption because it involves policies, programs, and actions to meet the City’s RHNA allocation that would not cause a significant effect on the environment. Moreover, the Draft is statutorily exempt under Section 15262 of the California CEQA Guidelines, which exempts projects involving feasibility or planning studies for future actions which the City has not approved or funded. Section 423 of the Charter and Council Policy A-18 require any amendment to the General Plan be reviewed to determine if a vote of the electorate would be required. If a project includes a general plan amendment, and, separately or cumulatively with other projects over a 10-year span, exceeds more than 100 additional peak hour trips (a.m. or p.m.), adds 40,000 square feet or more of non-residential floor area or adds more than 100 dwelling units in a statistical area, a vote of the electorate is required. The Draft adds at least 100 dwelling units in several statistical areas; therefore, voter approval of amendments to the Land Use Element of the General Plan and the Zoning Code is likely to be required in order to implement the Draft. 2. As a result, the Draft is a policy document and does not provide development entitlements to any specific land use projects, nor does it make any changes to the General Plan land use map or modify land use designations, densities, or land use intensities. Other similarly situated cities with voter-adopted growth initiatives have not been alleviated, either through State Legislation or judicial determination, of their obligations to comply with the voter initiative process. Given the nature and scope, the Draft programs and policies would not result in physical environmental impacts. Future housing development pursuant to the Housing Element Update would be subject to compliance with the established regulatory framework, including federal, state, regional, and local regulations. 14 SECTION 3. DECISION. NOW, THEREFORE, BE IT RESOLVED: 1. The Planning Commission of the City of Newport Beach hereby finds this action is covered by the general rule that the CEQA applies only to projects that have the potential for causing a significant effect on the environment (Section 15061(b)(3)) and is statutory exempt pursuant to Section 15262 in accordance with the recitals under Section 2 of this Resolution. 2. The Planning Commission of the City of Newport Beach hereby finds that the Draft complies with the statutory requirements set forth in Sections 65580 to 65589 of the Government Code. 3. In conformance with City Council Policy K-1, the Planning Commission reviewed and recommended the City Council approve General Plan Amendment No. GP2021-005 by adoption of Resolution No. PC2021-034. PASSED, APPROVED, AND ADOPTED THIS 9TH DAY OF DECEMBER, 2021. AYES: NOES: ABSTAIN: ABSENT: BY:_________________________ Lee Lowrey, Chairman BY:_________________________ Curtis Ellmore, Secretary 15 INTENTIONALLY BLANK PAGE16 Attachment No. PC 2 Matrix of HCD Comments and City Responses 17 INTENTIONALLY BLANK PAGE18 HCD Comments Revised Document Section Reference 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).) 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. Pg. 3-56 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. Pg. 3-66 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. - Pg. 3-75 to 3-80, and Figure 3-7 Figure 3-8 Figure 3-9 Disproportionate Housing Needs: Currently, the element provides data and limited analysis for cost burden and overcrowding. The Pg 3-98 See new Figure in Section 3 19 HCD Comments Revised Document Section Reference analysis of disproportionate housing needs should also address substandard housing, homelessness, and displacement risk. 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. Pg. 3-116 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). See added Figures: Figure 3-22 Figure 3-23 Figure 3-24 Figure 3-25 See narrative: Pg. 3-110-116 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. Pg. 3-56 Pg. 3-116 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 Pg. 4-15 20 HCD Comments Revised Document Section Reference 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. Pg. 2-29 to 2-32 21 1. 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 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. New Table B-2 Projects in the Pipeline summary 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. Section Pg. B-1 Additional narrative in each focus area summary discussion See new section of narrative Pg B- 15. Where we have history/projects in the pipeline, we have added a table to the Focus Area summaries. New narrative for all areas, extra for Coyote Canyon and Banning Ranch. 22 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. We have adjusted for the likelihood of residential development as a whole. Excepting Coyote Canyon and Banning Ranch, redevelopment percentages are <50%, which accounts for mixed- uses. Supportive evidence found in New Table B- 9. Attachment B-1 describes past performance of projects 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 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. . Pg. B-3 to B-9 Pg. B-17 Narrative in Tables B-8 to B-18 Summary of non vacant past history in Table B-2 Attachment B-1 describes past performance of projects 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. See analysis in Table B-8 to B-18 and additional supportive narrative on Pg. B-17, B-4, B-5, B-21, B-36, B-41, B-55, B-73, B-77 23 (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. Attachment B-1 describes past performance of projects 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. We have adjusted the buildable acreage on the large site and support with the development history provided, as well as the written interest provided within the letters to bolster this comment. 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 PG. B-74 and B-77 24 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 period. Based on the outcomes of this analysis, the element should adjust assumptions and add or modify programs as appropriate. See narrative Pg. B-77 to B-80 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. Methodology added to accommodate HCD’s stated acceptable count of 240 ADUs for the planning period. Supportive methodology is provided in Appendix D. Table B-1 reflects revised ADU counts 25 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. Zones described in Pg. 3-19 • 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. to accommodate HCD’s stated acceptable count of 240 ADUs for the planning period. Supportive methodology is provided in Appendix D. Table B-1 reflects revised ADU counts 2. 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 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 Pg. 3-16 (height) Pg. 3-18 (parking) 26 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. Pg. 3-38 Pg. 3-42 and Policy 3A 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 Pg. 3-22 to 3-24 27 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. Pg. 3-28 to 3-30 Pg. 4-3 3. 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. Pg. 3-38 28 4. 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. Summary added for all special needs groups: Pg. 2-19 Pg. 2-22 Pg. 2-23 Pg. 2-24 Pg. 2-25 Pg. 2-27 Pg. 2-28 Pg. 2-29 Pg. 2-31 Pg. 2-32 Pg. 2-34 Pg. 2-35 A. 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. For example, Policy Action 1J (ADU Amnesty Summary of quantified objectives provided in Table 4.1 29 Program) should be revised to include a quantified objective for the number of households expected to utilize the program. 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). See revised programs, as appropriate. Please note implementation timelines do not absolve city from compliance with the law immediately. 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: See Appendix B edits as referenced above. Zoning to Accommodate a Shortfall of Site for Lower: Pursuant to Government Code 65583.2, subdivisions (h) & (i), Policy Actions 1A– 1F, 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 See revise Policy 1G. 30 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. Pg. 4-3 Sites Identified in Prior Planning Periods: The element includes Policy Action 1G (5th Cycle Housing Element Sites), which addresses the requirement for nonvacant 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. Pg. 4-6 ADU Monitoring: The element includes Policy Action 1I (ADU Monitoring Program), which commits the City to establishing an ADU monitoring program. This program should commit explicitly to See Revised Policy 1I 31 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). 2. 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. See additions added per findings above. Policy changes to 4A 1G to 1J and Pg. 4-3 3. 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 A1, 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 memos.shtml. See AFFH Edits Pg.3-55 to 3-117 See Policy amendments to 4A. 4. The housing program shall preserve for low-income household the assisted housing developments 32 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. Pg. 3-99 to 3-103 See Policy 2C 5A 5B 5C 5E 5. 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. Pg. C-4 to C-5 Intro Pg. 1-4 to 1-5 33 INTENTIONALLY BLANK PAGE34 Attachment No. PC 3 Draft 6th Cycle Housing Element Update for 2021-2029 DIGITAL DUE TO SIZE Please visit: www.newportbeachca.gov/DraftHEUpdate 35 2021-2029 6th Cycle Draft Housing Element Planning Commission Public Hearing December 9, 2021 Seimone Jurjis, Community Development Director Jim Campbell, Deputy Community Development Director Benjamin Zdeba, Senior Planner Dave Barquist, Kimley-Horn & Associates Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) Regional Housing Needs Assessment (RHNA) Community Development Department 2 Income Category % of Area Median Income (AMI) RHNA Allocation (Housing Units) Very Low Income 0 -50% AMI 1,456 units Low Income 51 –80% AMI 930 units Moderate Income 81 –120% AMI 1,050 units Above Moderate Income >120% AMI 1,409 units Total 4,845 units Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) Community Development Department 3 HEUAC Meetings GPUSC Meetings Workshops PC Study Session CC Study Sessions Drafts Posted Outreach and Engagement Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) Housing Element Update •Four Sections 1)Introduction 2)Community Profile 3)Resources, Constraints and AFFH 4)Housing Plan •Four Appendices a)Past Performance b)Adequate Sites Analysis c)Community Engagement d)Accessory Dwelling Units Community Development Department 4 Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) Key Policy Actions •See Section 4 –Housing Plan Policy Actions 1A – 1G: Focus Areas Policy Actions 1H –1J: ADUs Policy Action 1K: Inclusionary Policy Action 1L: Senior Housing Priority Policy Actions 3A –3B: Mandatory Standards Policy Action 4A: AFFH Policy Actions 7A –7D: Supportive Housing Community Development Department 5 Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) No Net Loss – SB 166 Community Development Department 6 Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) Community Development Department 7 65-70 dBA CNEL 60-65 dBA CNEL 70-75 dBA CNEL 75-80 dBA CNEL Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) No Net Loss – SB 166 Community Development Department 8 Fashion Island Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) Housing Strategy Community Development Department Revised Scenario -Focus Area Strategies Affordability Net Units Invent ory Area % Redevelo p Total Affordabil ity % Low/V L % Mod Assum ed Densit y Total Net Units (Low Very Low) Total Net Units (Moderat e) Total Net Units (Above Moderate) Total Net Units Original Delta Rezone Strategies (A) Airport Area Airport Area 162 23%40%30%10%50 560 187 1,120 1,866 1,400 466 (B) West Newport Mesa Area West Newport Mesa Area 49 40%40%30%10%50 292 97 584 973 580 393 (C) Dover-Westcliff Dover-Westcliff 18 45%40%30%10%50 119 40 238 396 227 169 (D) Newport Center Area Newport Center Area 153 23%40%30%10%50 526 175 1,052 1,754 1,388 366 (E) Coyote Canyon Area *Coyote Canyon 44 50%35%25%10%60 330 132 858 1,320 1,056 264 (F) Banning Ranch *Banning Ranch 30 100%40%30%10%50 443 148 884 1,475 1,475 0 Existing Capacity 5th Cycle - Existing Zoning 5th Cycle - Existing Zoning 17.2 100%N/A N/A N/A N/A 0 287 40 327 Total Development Potential Category Low/Ver y Low Moderat e Above Mod Grand Total RHNA ALLOCATION 2,386 1,050 1,409 4,845 Total Development Potential 2,607 1,169 6,236 10,013 9,042 971 ADU's (Aggressive Approach)163 72 5 240 1,000 -760 Pipeline Projects, 5th Cycle Sites 175 319 1,495 1,989 1,918 71 Rezone Strategies 2,269 778 4,736 7,784 6,124 1,660 Surplus/Deficit 221 119 4,827 5,168 4,197 971 Percentage Over Need 9%11%343%107% Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) HCD Review •Submitted August 13, 2021 •Comments received October 12, 2021 (60th Day) •Resubmitted November 17, 2021 •Comments due back January 14, 2022 Must submit adopted Element no later than February 12, 2022 Community Development Department 10 Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) Recent and Upcoming Schedule DATE TASK Nov. 17, 2021 Submittal of revised draft to HCD for second 60-day review Nov. 17, 2021 Housing Element Update Advisory Committee (HEUAC) Dec. 9, 2021 Planning Commission Public Hearing Jan. 14, 2022 HCD to provide comment letter on revised draft HE Feb. 8, 2022 City Council public hearing -adoption of Housing Element Feb. 9, 2022 Submit adopted HE to HCD for 60-day certification review Apr. 10, 2022 HCD to provide certification findings letter on adopted HE Community Development Department 11 Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) CEQA •AB 1398 timely adoption of a certifiable Element •The “project” continues to be in flux •Implementation requires other amendments (e.g., Land Use Element and Zoning) –EIR prepared o Also, Charter Section 423 vote •CEQA provides exemptions: o 15061(b)(3) and 15262 Policies and programs to meet RHNA Feasibility or planning studies The action is supported by CEQA categorical and statutory exemptions Community Development Department 12 Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) Staff Recommendation •Hold a public hearing; •Find this action exempt from CEQA; and •Adopt Resolution No. PC2021-034 recommending adoption to City Council Community Development Department 13 Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141) 14 Questions and Discussion Seimone Jurjis, Community Development Director Jim Campbell, Deputy Community Development Director Benjamin Zdeba, Senior Planner Dave Barquist, Kimley-Horn & Associates GPUpdate@newportbeachca.gov Planning Commission Public Hearing December 9, 2021 Planning Commission - December 9, 2021 Item No. 3a - Additional Materials Presented at Meeting by Staff 2021-2029 6th Cycle Housing Element Update (PA2017-141)