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HomeMy WebLinkAbout17 - Amending Portions of the Adopted and Certified 6th Cycle Housing Element, and Amending Title 20 (Planning and Zoning) to Create the Housing Opportunity (HO) Overlay Zoning DistrictsQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report September 24, 2024 Agenda Item No. 17 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Benjamin M. Zdeba, AICP, Planning Manager - 949-644-3253, bzdeba@newportbeachca.gov TITLE: Resolution No. 2024-73: Amending Portions of the Adopted and Certified 6t" Cycle Housing Element, and Ordinance Nos. 2024-16 and 2024-17: Amending Title 20 (Planning and Zoning) to Create the Housing Opportunity (HO) Overlay Zoning Districts and Establish Multi -Unit Objective Design Standards (PA2022-0245) ABSTRACT: For the City Council's consideration is a narrowly focused amendment to the adopted and certified 6t" Cycle Housing Element. The amendment would revise portions of Section 3 (Housing Constraints, Resources, and Affirmatively Furthering Fair Housing) and Section 4 (Housing Plan) to change the narrative and implementing actions to remove the requirement for a vote of the electorate pursuant to Charter Section 423. Also for the City Council's consideration is the second reading and adoption of two ordinances that will amend Title 20 (Planning and Zoning) of the Newport Beach Municipal Code to create the Housing Opportunity (HO) Overlay Zoning Districts and to establish multi -unit objective design standards. RECOMMENDATIONS: a) Conduct a public hearing; b) Find that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly, that the action is also exempt from environmental review under CEQA pursuant to Class 21 as set forth in Section 15321 of the CEQA Guidelines, which exempts actions that involve enforcement of a law, general rule, standard, or objective, administered or adopted by a regulatory agency, and further that all significant environmental concerns for the City of Newport Beach Housing Element and its implementation have been addressed in a previously certified environmental document (Housing Element Implementation Program Environmental Impact Report [PEIR] - State Clearinghouse Number 2023060699); c) Adopt Resolution No. 2024-73, A Resolution of the City Council of the City of Newport Beach, California, Approving and Adopting a Narrowly Focused Amendment to the Adopted and Certified 61" Cycle Housing Element for the 2021-2029 Planning Period (PA2022-0245); 17-1 Resolution No. 2024-73: Amending Portions of the Adopted and Certified 6th Cycle Housing Element, and Ordinance Nos. 2024-16 and 2024-17: Amending Title 20 (Planning and Zoning) to Create the Housing Opportunity (HO) Overlay Zoning Districts and Establish Multi -Unit Objective Design Standards September 24, 2024 Page 2 d) Conduct second reading and adopt Ordinance No. 2024-16, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 20 (Planning and Zoning) of the Newport Beach Municipal Code to Implement the General Plan 6t" Cycle Housing Element (PA2022-0245); and e) Conduct second reading and adopt Ordinance No. 2024-17, An Ordinance of the City Council of the City of Newport Beach, California, Amending Title 20 (Planning and Zoning) of the Newport Beach Municipal Code to Adopt Objective Development Standards (PA2022- 0245). DISCUSSION: The Housing Element is a required element, or chapter, of the General Plan. It presents how a city plans to accomplish the state -mandated Regional Housing Needs Allocation (RHNA) on sites within city limits. Local jurisdictions, like the City of Newport Beach, are responsible for creating a regulatory environment in which the private market can build the unit types included in the RHNA. The City is required to prepare an update to its housing element every eight years. After conducting wide-ranging public outreach involving extensive public participation opportunities, including numerous meetings of the City Council -appointed Housing Element Update Advisory Committee (HEUAC), the City Council adopted the City's 6th Cycle Housing Element for the 2021-2029 planning period (Housing Element) on September 13, 2022. The Housing Element was later certified as statutorily compliant with state law by the California Department of Housing and Community Development (HCD) on October 5, 2022. Since adoption and certification, the City has diligently pursued implementation in alignment with Housing Element Policy Actions 1A through 1G, which collectively serve to rezone sites identified in Appendix B of the Housing Element to allow for residential development. To remain compliant, the amendments must take effect by the statutory deadline of February 2025. Should the City not meet this deadline, the Housing Element may be considered non -compliant with state housing law. This will enable developers of affordable housing projects to have their residential projects approved as a "builder's remedy" in accordance with the Housing Accountability Act allowing higher density housing on any site. Further ramifications could include, but are not limited to, increased exposure to public and private litigation, loss of permitting authority, financial penalties, loss of eligibility for state and regional funding sources, court receivership, and increased exposure to monitoring by the newly formed Housing Accountability Unit of HCD. A public hearing was held by the City Council on July 23, 2024, to consider the implementing amendments of the Housing Element. At the conclusion of the hearing, the City Council adopted the following resolutions to take the related actions: 17-2 Resolution No. 2024-73: Amending Portions of the Adopted and Certified 6th Cycle Housing Element, and Ordinance Nos. 2024-16 and 2024-17: Amending Title 20 (Planning and Zoning) to Create the Housing Opportunity (HO) Overlay Zoning Districts and Establish Multi -Unit Objective Design Standards September 24, 2024 Page 3 • California Environmental Quality Act (CEQA) Clearance: Resolution No. 2024- 50 Certifying Environmental Impact Report (State Clearinghouse SCH Number 2023060699), Including a Mitigation Monitoring and Reporting Program and Adopting Findings, and a Statement of Overriding Considerations Related to the Housing Element Implementation Program Involving Amendments to the General Plan, Coastal Land Use Plan, and Title 20 (Planning and Zoning) and Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code; • Land Use Element Amendment: Resolution No. 2024-51, Amending the General Plan Land Use Element to Implement the General Plan Housing Element Implementation Program; • Local Coastal Program Amendment: Resolution No. 2024-52, Authorizing the Submittal of a Local Coastal Program Amendment to the California Coastal Commission to Amend the City of Newport Beach Coastal Land Use Plan and Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code Related to the Implementation of the Housing Element; • ALUC Override: Resolution No. 2024-53, Finding the Housing Element Implementation Amendments Consistent with the Purposes of the State Aeronautics Act and Overriding the Orange County Airport Land Use Commission's Determination of Inconsistency with the 2008 John Wayne Airport Environs Land Use Plan; and • Initiation of Housing Element Amendment: Resolution No. 2024-58, Initiating a Narrowly Focused Amendment to the Adopted and Certified 6th Cycle Housing Element to Remove the Reference to Charter Section 423 Voter Approval. It is important to highlight that, with all the above -mentioned actions, the City Council considered evidence presented at the hearing and determined that a vote of the electorate pursuant to Charter Section 423 is precluded because state law mandates the City adopt and implement the Housing Element. Specifically, Charter Section 423 is described as a possible constraint in Section 3 (Housing Constraints, Resources, and Affirmatively Furthering Fair Housing), and further discussed as an implementation action in Section 4 (Housing Plan) of the 6th Cycle Housing Element. Moreover, the 6th Cycle Housing Element must take effect by February 2025 to avoid significant penalties and loss of local control dictated by state law including, but not limited to, allowing housing development projects to bypass the City's zoning requirements altogether; loss of permitting authorities on other projects; loss of eligibility for state and regional funding sources; financial penalties, including monthly fines of up to $600,000; increased exposure to monitoring by the newly formed Housing Accountability Unit of HCD; court receivership; and increased exposure to public and private litigation. 17-3 Resolution No. 2024-73: Amending Portions of the Adopted and Certified 6t" Cycle Housing Element, and Ordinance Nos. 2024-16 and 2024-17: Amending Title 20 (Planning and Zoning) to Create the Housing Opportunity (HO) Overlay Zoning Districts and Establish Multi -Unit Objective Design Standards September 24, 2024 Page 4 Narrowly Focused Amendment In accordance with the City Council's action and direction through the adoption of Resolution No. 2024-058, City staff prepared a narrowly focused amendment to the Housing Element. The proposed amendment involves targeted revisions to Section 3 (Housing Constraints, Resources, and Affirmatively Furthering Fair Housing) and Section 4 (Housing Plan) of the Housing Element. Both sets of revisions serve to modify the narrative and implementing actions related to removing the requirement for a vote of the electorate pursuant to Charter Section 423. The balance of the Housing Element, including the sites analysis and all Policy Actions would remain unchanged. A redline -strikeout version of Section 3 is included in this report as Attachment D. A redline -strikeout version of Section 4 is included as Attachment E. As required by state law, on July 26, 2024, City staff published online and circulated the draft to previously interested parties for a seven-day public review period. Direct recipients included The Kennedy Commission, People for Housing Orange County, Still Protecting Our Newport (SPON), The Public Law Center, and YIMBY Law. At the conclusion of the seven-day public review period on August 2, 2024, City staff transmitted the draft amendment to the HCD for a formal review along with one piece of written correspondence received from Newport Beach resident Jim Mosher, included as Attachment F. No other correspondence was received in response to the published and circulated amendment. On August 20, 2024, the City received a letter from HCD confirming the amendment maintains the City's compliant status and, with its adoption, the Housing Element will remain certified as statutorily compliant. This letter is incorporated into the draft resolution as Exhibit "A" and attached separately as Attachment G. Litigation On August 8, 2024, SPON filed a lawsuit against the City, alleging that this amendment violated Charter Section 423 by amending the General Plan without voter approval. It was followed by a second lawsuit on August 23, 2024, alleging that the City of Newport Beach violated CEQA by approving amendments to the General Plan, Local Coastal Program, and Zoning Code without adequately analyzing the environmental impacts of the proposed density bonus units. Both filings are included as Attachment H for reference. 17-4 Resolution No. 2024-73: Amending Portions of the Adopted and Certified 6t" Cycle Housing Element, and Ordinance Nos. 2024-16 and 2024-17: Amending Title 20 (Planning and Zoning) to Create the Housing Opportunity (HO) Overlay Zoning Districts and Establish Multi -Unit Objective Design Standards September 24, 2024 Page 5 Planning Commission Review and Recommendation On September 5, 2024, the Planning Commission considered and recommended the City Council approve the amendment to the Housing Element by a vote of 5 ayes and 1 no. Planning Commission Resolution No. PC2024-019 and the draft minutes from the September 5, 2024, meeting are included as Attachment I. The Planning Commission staff report is available as Attachment J. Ordinance Nos. 2024-16 and 2024-17 Also, at the conclusion of the public hearing on July 23, 2024, the City Council introduced the following two ordinances, initiating the related actions and passing to second reading at a date to be determined in alignment with the narrowly focused amendment to the Housing Element: • Zoning Code Amendment for Overlay Rezoning: Ordinance No. 2024- 6 Amending Title 20 (Planning and Zoning) of the Newport Beach Municipal Code to Implement the General Plan 6th Cycle Housing Element; and • Zoning Code Amendment for Objective Design Standards: Ordinance No. 2024-17, Amending Title 20 (Planning and Zoning) of the Newport Beach Municipal Code to Create Multi -Unit Objective Design Standards. Now that the narrowly focused amendment to the Housing Element is ready for City Council consideration and adoption, both ordinances are also ready for second reading and adoption. Should the ordinances be adopted, they will become effective 30 days after their adoption. Next Steps If the City Council adopts the resolution to approve the narrowly focused amendment to the Housing Element, City staff will transmit the adopted amended version to HCD for a final certification review. Once Ordinance No. 2024-16 becomes effective, the City will fulfill its rezoning obligation in compliance with the statutory deadline, a necessary action to maintain certification of a compliant Housing Element throughout the 2021-2029 planning period. FISCAL IMPACT: The potential fiscal impacts associated with this matter were previously analyzed as part of the July 23, 2024, materials for the City Council's consideration in conjunction with the amendment to the General Plan Land Use Element. A summary of the analysis prepared by Keyser Marston Associates (KMA) is provided below for reference. 17-5 Resolution No. 2024-73: Amending Portions of the Adopted and Certified 6th Cycle Housing Element, and Ordinance Nos. 2024-16 and 2024-17: Amending Title 20 (Planning and Zoning) to Create the Housing Opportunity (HO) Overlay Zoning Districts and Establish Multi -Unit Objective Design Standards September 24, 2024 Page 6 As there are no specific projects proposed and the dwelling unit capacity added through implementation does not contemplate any replacement of existing uses, KMA's evaluation is highly conservative and theoretical. In summary, KMA found the following: • Rents, sales prices and assessed values in the City are all very high, benefiting General Fund revenues; • Total buildout of all the potential residential would have a net negative impact on the City's General Fund; however, this may be mitigated if projects continue to be developed at higher price points; • The replacement of land uses that generate minimal public revenues can offset the negative impact of the residential. For example, the recently approved 1400 Bristol Street project demonstrates that office development can have a net negative impact on the General Fund and higher rents/values can significantly reduce the residential impact to the General Fund; and • Cities will often adopt a development fee program, negotiate development agreements, and pursue other methods to mitigate the fiscal impact of residential development. KMA understands the City is currently preparing a development fee program, which could potentially offset some of the projected impacts. ENVIRONMENTAL REVIEW: Staff recommends the City Council find that action is not subject to the California Environmental Quality Act (CEQA) as set forth in the Public Resources Code Section 21000 et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations (CEQA Guidelines), and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines because it has no potential for resulting in physical change to the environment, directly or indirectly. Staff further recommends the City Council also find this action is exempt from environmental review under CEQA pursuant to Class 21, as set forth in Section 15321 of the CEQA Guidelines which exempts actions that involve enforcement of a law, general rule, standard, or objective, administered or adopted by a regulatory agency. Lastly, staff recommends the City Council also find the implementation of the Housing Element was evaluated in the Housing Element Implementation Program Amendments Final Program Environmental Impact Report (PEIR) (SCH No. 2023060699), which was prepared in compliance with the California Environmental Quality Act (CEQA) as set forth in the Public Resources Code Sections 21000 et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations (CEQA Guidelines), and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act). On July 23, 2024, the City Council adopted Resolution No. 2024-50, to certify the PEIR as complete and adequate, inclusive of all required findings, a statement of overriding considerations, and a mitigation monitoring reporting program. 17-6 Resolution No. 2024-73: Amending Portions of the Adopted and Certified 6t" Cycle Housing Element, and Ordinance Nos. 2024-16 and 2024-17: Amending Title 20 (Planning and Zoning) to Create the Housing Opportunity (HO) Overlay Zoning Districts and Establish Multi -Unit Objective Design Standards September 24, 2024 Page 7 NOTICING: Given the citywide nature of this activity, notice of the public 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. ATTACHMENTS: Attachment A — Resolution No. 2024-73 (Housing Element Amendment) Attachment B — Ordinance No. 2024-16 (Housing Opportunity Overlay Zoning Districts) Attachment C — Ordinance No. 2024-17 (Multi -Unit Objective Design Standards) Attachment D — Redline -Strikeout Version of Housing Element Section 3 Attachment E — Redline -Strikeout Version of Housing Element Section 4 Attachment F — Correspondence Regarding Draft Housing Element Amendment Attachment G — HCD Letter Attachment H — Lawsuits Attachment I — Planning Commission Resolution No. PC2024-019 and Meeting Minutes Attachment J — Planning Commission Staff Report 17- 7 Attachment A Resolution to Adopt the Housing Element Amendment 17-8 RESOLUTION NO. 2024- 73 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING AND ADOPTING A NARROWLY FOCUSED AMENDMENT TO THE ADOPTED AND CERTIFIED 6T" CYCLE HOUSING ELEMENT FOR THE 2021-2029 PLANNING PERIOD (PA2022-0245) WHEREAS, City Council Policy K-1 (General Plan and Local Coastal Program) requires amendments to the City of Newport Beach ("City") General Plan to be initiated by the City Council; WHEREAS, Section 65580 et seq. of the Government Code requires 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; WHEREAS, the City of Newport Beach ("City") 6th Cycle Housing Element for the 2021-2029 period ("Housing Element") presents a framework for meeting the housing needs of existing and future resident populations within Newport Beach based on the Regional Housing Needs Assessment ("RHNA") allocation of 4,845 new housing units; WHEREAS, the Housing Element was adopted by the City Council on September 13, 2022, and certified as statutorily compliant with State Housing Element Law on October 5, 2022, by the State Department of Housing and Community Development ("HCD"); WHEREAS, Charter Section 423 is described as a possible constraint in Section 3 (Housing Constraints, Resources, and Affirmatively Furthering Fair Housing), and further discussed as an implementation action in Section 4 (Housing Plan) of the 6th Cycle Housing Element; 17-9 Resolution No. 2024- Page 2 of 5 WHEREAS, the 6th Cycle Housing Element Implementation must take effect by February 2025 to avoid significant penalties and loss of local control dictated by state law, which may include, but are not limited to: • Increased exposure to public and private litigation; • Loss of permitting authority; • Financial penalties, including monthly fines of up to $600,000; • Loss of eligibility for state and regional funding sources; • Court receivership; • Allowing housing developers to bypass the City's zoning requirements; and • Increased exposure to monitoring by the newly formed Housing Accountability Unit of HCD; WHEREAS, a public hearing was held on July 23, 2024, by the City Council to consider the Housing Element Implementation, including consideration of certifying the Program Environmental Impact Report ("PEIR"), adoption of CEQA Findings, Mitigation Monitoring and Reporting Program and a Statement of Overriding Considerations. A notice of time, place, and purpose of the hearing was given in accordance with CPUC Section 21676(b), California Sections 54950 et seq. ("Ralph M. Brown Act"), Chapters 20.62 (Public Hearings), 20.66 (Amendments), and 21.62 (Public Hearings) of the Newport Beach Municipal Code ("NBMC"), and City Council Policy K-1 (General Plan and Local Coastal Program) and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act). Evidence both written and oral, was presented to, and considered by, the City Council at this hearing; WHEREAS, at the conclusion of the hearing, the City Council adopted Resolution No. 2024-58 to initiate a narrowly focused amendment to the Housing Element to remove the reference to Charter Section 423 from Sections 3 and 4 of the 6th Cycle Housing Element based on evidence presented at the hearing that voter approval is precluded by state law; WHEREAS, City staff published and circulated draft revisions to Section 3 (Housing Constraints, Resources, and Affirmatively Furthering Fair Housing) and Section 4 (Housing Plan) of the Housing Element ("Amendment") on July 26, 2024, that incorporates the legal basis for the removal of Charter Section 423 voter approval requirement to previously interested parties for a seven-day public review period, including The Kennedy Commission, People for Housing Orange County, Still Protecting Our Newport, The Public Law Center, and YIMBY Law; 17-10 Resolution No. 2024- Page 3 of 5 WHEREAS, at the conclusion of the seven-day public review period, City staff transmitted the draft Amendment to HCD on August 2, 2024, for a formal review along with one piece of written correspondence received from Jim Mosher. No other correspondence was received in response to the published and circulated Amendment; WHEREAS, the City received a letter from HCD, attached hereto and incorporated by reference as Exhibit "A," on August 20, 2024, confirming the Amendment maintains the City's compliant status and, with its adoption, the Housing Element will remain certified as statutorily compliant; WHEREAS, a public hearing was held on September 5, 2024, in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the 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; WHEREAS, at the conclusion of the public hearing, the Planning Commission adopted Resolution No. PC2024-019 by a majority vote (5 ayes, 1 nay) recommending the City Council approve the Amendment to the Housing Element; and WHEREAS, a public hearing was held on September 24, 2024, by the City Council in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California to consider amendment to the Housing Element. A notice of time, place, and purpose of the hearing was given in accordance with the Ralph M. Brown Act and City Council Policy K-1. Evidence both written and oral, was presented to, and considered by, the City Council at this hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby finds the Amendment is necessary and that the voter approval requirement set forth in Charter Section 423 is precluded by state law based on the Growth Management Measures set forth in the Amendment which is attached hereto as Exhibit "B," and incorporated herein by reference. The City Council does hereby approve the Amendment adopting the revised Housing Element, of which the affected portions are set forth in Exhibit "B." The City Council directs staff to transmit the Amendment to HCD for certification review. 17-11 Resolution No. 2024- Page 4 of 5 Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 4: The City Council finds the Amendment is not subject to the California Environmental Quality Act ("CEQA") as set forth in the Public Resources Code Section 21000 et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations ("CEQA Guidelines"), and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines because it has no potential for resulting in physical change to the environment, directly or indirectly. The City Council finds the Amendment is exempt from CEQA environmental review pursuant to Class 21 as set forth in Section 15321 of the CEQA Guidelines which exempts actions that involve enforcement of a law, general rule, standard, or objective, administered or adopted by a regulatory agency. The Housing Element was adopted by the City Council on September 13, 2022, and certified as statutorily compliant with State Housing Element Law on October 5, 2022, by HCD as a framework for meeting the housing needs of existing and future resident populations within Newport Beach based on the RHNA allocation of 4,845 new housing units. The environmental impacts associated with the Housing Element were analyzed by way of the Housing Element Implementation Program Amendments Final PEIR (SCH No. 2023060699) discussed below. The Amendment does not result in any direct or indirect physical change to the environment. It simply removes the Charter Section 423 voter approval requirement of the Housing Element Implementation since it is precluded by state law. Additionally, the Amendment is categorically exempt under Section 15321. Charter Section 423 was described in Section 3 (Housing Constraints, Resources, and Affirmatively Furthering Fair Housing) of the Housing Element as a constraint on implementation of the Housing Element and possibly violative of the City's obligation to affirmatively further fair housing as set forth in California Government Code Section 8899.50 et seq. The 6t" Cycle Housing Element Implementation must take effect by 17-12 Resolution No. 2024- Page 5 of 5 February 2025 to avoid significant penalties and loss of local control dictated by state law and described above. Since the Amendment involves the enforcement of a law, general rule, standard, or objective, administered or adopted by a regulatory agency, it is categorically exempt under Section 15321. Finally, the City Council hereby finds the adoption of this Amendment is covered under the Housing Element Implementation Program Amendments Final Program Environmental Impact Report. The Housing Element Implementation Program Amendments Final PEIR (SCH No. 2023060699) was prepared for the 6t" Cycle Housing Element Implementation (also referred to as the "Project") in compliance with the California Environmental Quality Act ("CEQA"). On July 23, 2024, the City Council adopted Resolution No. 2024-50, to certify the PEIR as complete and adequate, inclusive of all required findings, a statement of overriding considerations, and a mitigation monitoring reporting program. The City Council hereby finds that the action to adopt this Resolution approving the Amendment was considered within the PEIR. Resolution No. 2024-50 is hereby incorporated by reference. Section 5: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 24th day of September, 2024. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY TTORNEY'S OFFICE Aaron C. Harp City Attorney Attachments: Exhibit A — HCD Letter Exhibit B — Housing Element Amendment 17-13 EXHIBIT A HCD Letter STATF OF ('At IFORNIA - 8USlN SS ONS lMFR R41C' S AND HOUSING AGENCY GA IN NEWSOM GovoraLhr DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 651 Bannon Street Sacramento. CA 95811 (916) 263-2911 1 FAX (916) 263-7453 WAW. hcd.ca.onv is August 20, 2024 Seimone Jurjis, Community Development Director Community Development Department City of Newport Beach 100 Civic Center Drive, Newport Beach, CA 92660 Dear Seimone Jurjis: RE: City of Newport Beach 6"' Cycle (2021-2029) Draft Housing Element Amendment Thank you for submitting the City of Newport Beach (City) draft amendment to the adopted housing element that was received for review on August 2, 2024. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. The City's housing element was found in compliance on October 5, 2022. The draft amendment incorporates modifications to Section 3: Housing Constraints, Resources, and Affirmatively Furthering Fair Housing and Section 4: Housing Plan, Housing Policy 1.1 Implementation Action - Adequate Sites to Accommodate 2021-2029 RHNA and will not negatively impact demonstrating adequate sites to accommodate the regional housing need allocation (RHNA) or the current compliance status of the housing element. Therefore, the element will remain in compliance with State Housing Element Law (Gov. Code, § 65580 et seq) when the draft amendment is adopted, submitted to and approved by HCD, in accordance with Government Code section 65585. 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 must continue to engage the community, including organizations that represent lower -income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. 17-14 Seimone Jurjis, Director Page 2 HCD appreciates the hard work and dedication provided in the preparation of the City's housing element and looks forward to receiving the County's adopted housing element. If you have any questions or need additional technical assistance, please contact me at Melinda.Cov.(dd)hcd.ca.00v. Sincerely, Melinda Coy Proactive Housing Accountability Chief 17-15 EXHIBIT B Housing Element Amendment Section 1: Amend the Subsection entitled "Growth Management Measures" beginning on Page 3-28 within Section 3: Housing Constraints, Resources, and Affirmatively Furthering Fair Housing as follows: Growth Management Measures Growth management measures are techniques used by a government to regulate the rate, amount, and type of development. Growth management measures allow cities to grow responsibly and orderly, however, if overly restricted can produce constraints to the development of housing, including accessible and affordable housing. On November 7, 2000, the Newport Beach electorate approved Measure S, which amended the Newport Beach City Charter by adding Section 423. Charter Section 423 requires voter approval of certain major amendments of the Newport Beach General Plan, unless state or federal law precludes a vote of the electorate on the amendment. In the case of Charter Section 423, in general, a major amendment to the General Plan is defined as one that significantly increases allowed density or intensity by increasing over 100 peak hour trips (traffic), or over 40,000 square feet of floor area (intensity), or over 100 dwelling units (density) when compared to the General Plan prior to approval. These thresholds are calculated as the sum of the amendment itself and eighty percent (80%) of the increases resulting from other amendments affecting the same neighborhood that were adopted within the preceding ten (10) years. When the electorate approved Measure S, the electorate encouraged the City Council to adopt implementing guidelines that are consistent with the purpose and intent of Measure S; however, the Guidelines for Implementing Charter Section 423 do not provide guidance as to when a state or federal law precludes a vote on a major amendment of the General Plan. The City Council determines if a proposed amendment requires voter approval pursuant to Charter Section 423, based on the following conditions: • The Amendment modifies the allowed use(s) of the property or area that is the subject of the Amendment such that the proposed use(s) generate(s) more than one hundred (100) morning or evening peak hour trips than are generated by the allowed use(s) before the Amendment; or 17-16 • The Amendment authorizes an increase in floor area for the property or area that is the subject of the Amendment that exceeds forty thousand (40,000) square feet when compared to the General Plan before approval of the Amendment; or • The Amendment authorizes an increase in the number of dwelling units for the property or area that is the subject of the Amendment that exceeds one hundred (100) dwelling units when compared to the General Plan before approval of the Amendment; or • The increase in morning or evening peak hour trips, floor area or dwelling units resulting from the Amendment when added to eighty percent (80%) of the increases in morning or evening peak hour trips, floor area or dwelling units resulting from Prior Amendments, within the preceding ten (10) years (see definition in Section 2J) exceeds one or more of the voter approval thresholds in Section 423 as specified in Subsection 1, 2 or 3. If the City Council determines a General Plan Land Use Element Amendment requires voter approval, after approving the Amendment, the City Council then adopts a resolution calling an election on the Amendment. The City Council schedules the election at the next regular municipal election, as specified by the City Charter. The City Attorney then prepares an impartial analysis of the Amendment, which contains information about the Amendment, any related project or land use approval, and the environmental analysis conducted that will help the electorate make an informed decision. In the absence of an ordinance or Charter provision that establishes a procedure for submittal of arguments or rebuttals relative to City measures, the City Council will adopt a resolution that authorizes the filing of arguments and rebuttals in accordance with the general procedures specified in the Elections Code. It is important to understand that Charter Section 423 only applies to General Plan amendments. Individual housing development projects that do not require a General Plan amendment are already accommodated within the General Plan and zoning framework. They would not be subject to Charter Section 423 and would never require a vote of the electorate. If a housing development project requires a General Plan amendment, any unit and peak hour traffic increases added to the project through bonus units awarded by the Density Bonus process are not counted toward Charter Section 423 thresholds and a determination whether a vote is required. Ultimately projects that require a vote of the electorate pursuant to Charter Section 423 may require additional costs and be subject to delays due to the election process that may yield uncertain election results. 17-17 To implement the Housing Element, the City must move forward with adding housing units that would qualify as a major amendment for purposes of Charter Section 423, which raises the question whether a vote under Charter Section 423 is precluded by state or federal law. In recent legislation, such as Senate Bill 1333, the legislature has specifically found that the lack of affordable housing is a matter of statewide concern and that state housing laws related to land use, planning and zoning apply to charter cities. Similarly, the court in Anderson v. City of San Jose (2019) 42 Cal.App.Sth 683, found that that the lack of affordable housing is a matter of statewide concern. To comply with state laws, the City must have a general plan, which serves as the long-range plan for future physical development in the community. (Government Code § 65000, et seq.) One of the mandatory elements of a general plan is a housing element, which must be updated by the City every eight (8) years and identify sites sufficient to meet the City's share of the Regional Housing Needs Assessment (RHNA) allocation. (Government Code §§ 65302, 65588, 65863.) In determining the RHNA allocation, the council of governments does not take into consideration any zoning or other local land use restrictions, such as Charter Section 423, but is directed by state law to "consider the potential for increased residential development under alternative zoning ordinances and land use restrictions." (Government Code § 65584.04(e)(2)(B).) Furthermore, the City has a continuing obligation to always ensure that adequate sites exist to accommodate lower -income housing development, not just at the beginning of the eight (8)-year Regional Housing Needs Allocation cycle. (Government Code § 65863.) In this RHNA cycle, the City has been allocated 4,845 new housing units. To comply with state law, the City must not only plan for these units, but the City must also take action to establish the appropriate zoning designations and development standards to allow the private market to develop these units. After developing a plan for these units, the City must submit the Housing Element to the Department of Housing and Community Development for them to find that the Housing Element is in compliance with state law. But having the California Department of Housing and Community Development find the City's Housing Element is compliant with state law is only one step of many. The City is then required to implement the Housing Element. Under Government Code Section 65585 (i)(1)(A), implementation is not optional, and the California Department of Housing and Community Development is charged with ensuring the City is implementing the Housing Element and taking action to revoke its finding that the Housing Element complies with state law if the City fails to implement the Housing Element. In addition to the loss of local zoning control, permitting authority, and fines of up to $600,000 per month for not having a compliant Housing Element, state law provides that the Attorney General may appoint an agent to take all necessary actions to bring the City into compliance with state law. (Government Code § 65585(I).) 17-18 Because providing residential housing opportunity sites to accommodate the City's RHNA allocation is mandated by state law and the City is required to implement the Housing Element, a Charter Section 423 vote is precluded, and the City will move forward with implementing the Housing Element without a Charter Section 423 vote. Section 2: Amend the Subsection entitled "Implementation Actions" beginning on Page 4-2 within Section 4: Housing Plan as follows: Implementation Actions The City of Newport Beach has a total Regional Housing Needs Assessment (RHNA) allocation of 4,845 units. State law requires the City of Newport Beach to identify adequate sites to accommodate its fair share allocation for the 6th Cycle Housing Element. This City has identified a variety of candidate sites through extensive analysis in collaboration with the community and stakeholders through Newport Together's "Listen and Learn" process, multiple meetings of the City's Housing Element Update Advisory Committee (Committee), participation by interested residents at a variety of public meetings, workshops, and consultation with property owners. The City of Newport Beach has identified an adequate amount of land that was determined by the Committee as "Feasible" or "Potentially Feasible" for future development. Only a portion of these candidate sites will be necessary to accommodate the City's RHNA planning obligation. These sites have undergone a rigorous process to evaluate site features, development potential, developer/owner interest and other factors to deem them appropriate for housing during the 2021-2029 Planning Period. As part of the analysis of adequate sites, the City has comprehensively reviewed opportunity sites citywide and has identified eight primary areas of opportunity: • Airport Area Environs • Dover/Westcliff • West Newport Mesa • Newport Center • Banning Ranch • 5th Cycle Housing Element Sites • Coyote Canyon • Accessory Dwelling Units Since the City has identified several opportunity sites in the 5th Cycle Housing Element that will be utilized in the 6th Cycle Housing Element, additional policy considerations are stated in this Policy Program. These opportunities sites are described in map and tabular format in Appendix B of this Housing Element. 17-19 Each of the opportunity areas described in this Housing Element have been assigned a targeted acreage, and a targeted number of new housing units (see following implementing Policy Action statements). Collectively, these targets must meet the unmet RHNA need as required by state law. It is expected there may be deviations from the targets with future implementing zoning actions. New opportunity sites may be identified, and other sites may be deemed unsuitable, or densities may be modified, all based on new information received over time. The City may adopt future zoning strategies that are more or less than the identified targets in this Housing Element provided the total unmet RHNA need by income category is accommodated within state -defined deadlines. If future zoning strategies deviate from the targets expressed in this Housing Element but still meet the requirement to identify adequate sites to accommodate unmet RHNA need, no amendment to the Housing Element would be required and deviations of any magnitude may be considered subject to the City Council's review and approval in consultation with the Community. For all Rezone Policy Actions 1A to 1F, Pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits 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 sitesdesignated • 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. 5788168.1 17-20 Attachment B Ordinance to Create the Housing Opportunity Overlay Zoning Districts 17-21 ORDINANCE NO. 2024-16 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING TITLE 20 (PLANNING AND ZONING) OF THE NEWPORT BEACH MUNICIPAL CODE TO IMPLEMENT THE GENERAL PLAN 6T" CYCLE HOUSING ELEMENT (PA2022-0245) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, California Government Code Section 65580 et seq. ("State Housing Element Law") requires 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; WHEREAS, the City's General Plan Land Use Element is a mandatory element that governs the ultimate pattern of development and requires updating every now and then for consistency with other General Plan elements; WHEREAS, every eight years, State Housing Element Law requires the City to update its General Plan Housing Element to identify and analyze existing and projected housing needs for the City along with a housing plan that provides adequate land use capacity to meet those needs; WHEREAS, the City was assigned a Regional Housing Needs Assessment ("RHNA") allocation of 4,845 new units as its projected housing need for the planning period covering 2021-2029 and, as a result, the City worked diligently to prepare its 6tn Cycle Housing Element in compliance with state law; WHEREAS, preparation of the 6th Cycle Housing Element involved extensive public participation with community groups at numerous workshops, as well as meetings with the Planning Commission and City Council, and was assisted by an ad -hoc committee called the Housing Element Update Advisory Committee ("HEUAC") formed and appointed by the City Council; 17-22 Ordinance No. 2024-16 Page 2 of 6 WHEREAS, after several meetings with the State Department of Housing and Community Development ("HCD") and numerous drafts, the City Council adopted the final 6th Cycle Housing Element on September 13, 2022; WHEREAS, HCD certified the City's 6th Cycle Housing Element on October 5, 2022, as statutorily compliant with state law; WHEREAS, Section 4 (Housing Plan) of the 6th Cycle Housing Element presents a framework and strategy for meeting the needs of existing and future resident populations in Newport Beach based on the RHNA allocation of 4,845 new housing units, the "fair share" of regional housing need and demand, by planning for units within the following site groupings or 'focus areas" that are best suited for residential growth: Airport Area Environs, West Newport Mesa, Newport Center, Dove r/Westcl iff, and Coyote Canyon; WHEREAS, the 6t11 Cycle Housing Element opportunity sites are to be rezoned per Housing Element Policy Actions 1A through 1F to accommodate the City's RHNA obligation, including a buffer necessary to address future "no net loss" of available sites and to preclude the need to identify replacement sites during implementation; WHEREAS, the rezoning includes the establishment of overlay zoning districts and accompanying development standards, as well as corresponding amendments to the General Plan Land Use Element and the Local Coastal Program; WHEREAS, to comply with state law, the City has been working diligently to implement the 6th Cycle Housing Element no later than February 2025 ("6th Cycle Housing Element Implementation"), which requires the following amendments and actions: • General Plan Amendment ("GPA") - To revise the necessary goals and/or policies within the City's Land Use Element to support housing production in the focus areas identified by the 6th Cycle Housing Element; • Amendment to Title 20 (Planning and Zoning) ("ZCA") - To implement the Land Use Element's policy changes by allowing housing development as an opportunity and establishing appropriate objective design and development standards for multi -unit residential and mixed -use development projects; 17-23 Ordinance No. 2024-16 Page 3 of 6 • Local Coastal Program Amendment ("LCPA") - To revise and create new policies within the City's Coastal Land Use Plan and update Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code ("NBMC") to support housing production in the focus areas identified by the 6th Cycle Housing Element that are within the Coastal Zone; and • Program Environmental Impact Report ("PEIR") (SCH No. 2023060699) - To analyze potential environmental impacts under the California Environmental Quality Act ("CEQK) related to the 6"1 Cycle Housing Element Implementation, a Draft Housing Element Implementation Program Amendments Program Environmental Impact Report ("Draft PEIR"), to address reasonably foreseeable environmental impacts resulting from the 6th Cycle Housing Element Implementation; WHEREAS, the 6th Cycle Housing Element Implementation must take effect by February 2025 to avoid significant penalties and loss of local control dictated by state law, which may include, but are not limited to: • Increased exposure to public and private litigation; • Loss of permitting authority; • Financial penalties including monthly fines of up to $600,0000; • Loss of eligibility for state and regional funding sources; • Court receivership; • Allowing housing developers to bypass the City's zoning requirements; and • Increased exposure to monitoring by the newly formed Housing Accountability Unit of HCD; WHEREAS, City staff worked closely with the community through the City Council -appointed General Plan Advisory Committee ("GPAC") and General Plan Update Steering Committee ("GPUSC") from March 2023 to August 2023 to draft Land Use Element goals and policies that support 6th Cycle Housing Element Implementation, including the ZCA; WHEREAS, the draft GPA that was supported by the GPAC and the GPUSC was posted online along with the draft ZCA on August 30, 2023, with additional public comments and participation at the Planning Commission Study Session on September 21, 2023, and City Council Study Session on February 13, 2024; WHEREAS, the draft GPA was revised and reposed online on January 16, 2024, and March 28, 2024, based on the public's input; 17-24 Ordinance No. 2024-16 Page 4 of 6 WHEREAS, a public hearing was held by the Planning Commission on April 18, 2024, in the Council Chambers at 100 Civic Center Drive, Newport Beach, California to consider the actions and amendments required for the 6th Cycle Housing Element Implementation. A notice of time, place, and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act"), Chapter 20.62 (Public Hearings) and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by the Planning Commission at this hearing; WHEREAS, at the conclusion of the public hearing, the Planning Commission adopted Resolution No. PC2024-006 by a unanimous vote (5 ayes, 2 recusals) recommending the City Council certify the Housing Element Implementation Program Amendments Draft PEIR and approve the 6th Cycle Housing Element Implementation; WHEREAS, California Public Utilities Code ("CPUC") Section 21676(b) requires the City to refer the 6t" Cycle Housing Element Implementation to the Orange County Airport Land Use Commission ("ALUC") to review for consistency with the 2008 John Wayne Airport Environs Land Use Plan ("AELUP"); WHEREAS, on May 16, 2024, the ALUC determined the 6t" Cycle Housing Element Implementation is inconsistent with the AELUP; WHEREAS, pursuant to Sections 21670 and 21676 of the CPUC, the City Council held a duly noticed public hearing on May 28, 2024, and adopted Resolution No. 2024-32 (7 ayes, 0 nays), to notify the ALUC and State Department of Transportation Aeronautics Program of the City's intent to override ALUC's inconsistency finding and on May 29, 2024, the City issued the Notice of Intent to Override ALUC's determination and received two comments in response; and WHEREAS, a public hearing was held on July 23, 2024, by the City Council in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California to consider the 6th Cycle Housing Element Implementation, including consideration of certifying the PEIR, adoption of CEQA Findings, Mitigation Monitoring and Reporting Program and a Statement of Overriding Considerations. A notice of time, place, and purpose of the hearing was given in accordance with CPUC Section 21676(b), the Ralph M. Brown Act, Chapter 20.62 (Public Hearings), Chapter 20.66 (Amendments), and Chapter 21.62 (Public Hearings) of the NBMC, and City Council Policy K-1 (General Plan and Local Coastal Program) and City Council Policy K-3 (Implementation procedures for the California Environmental Quality Act). Evidence both written and oral, was presented to, and considered by, the City Council at this hearing. 17-25 Ordinance No. 2024-16 Page 5 of 6 NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council finds amendments to Title 20 (Planning and Zoning) of the NBMC are legislative acts. Neither Title 20 nor State Planning Law set for any required findings for either approval or denial of such amendments. Notwithstanding the foregoing, the ZCA is consistent with the corresponding GPA and LCPA. Section 2: The City Council does hereby make the findings attached hereto as Exhibit "A" and incorporated by reference, and approves the ZCA, as set forth in Exhibit "B," which is attached hereto and incorporated herein by reference. Section 3: The Housing Element Implementation Program Amendments Final PEIR (SCH No. 2023060699) was prepared for the 6th Cycle Housing Element Implementation (also referred to as the "Project") in compliance with the California Environmental Quality Act ("CEQA") as set forth in the Public Resources Code Section 21000 et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations ("CEQA Guidelines"), and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act). On July 23, 2024, the City Council adopted Resolution No. 2024-50, to certify the PEIR as complete and adequate, inclusive of all required findings, a statement of overriding considerations, and a mitigation monitoring reporting program. The City Council hereby finds that the action to adopt this Resolution approving the ZCA was considered within the PEIR. Resolution No. 2024-50 is hereby incorporated by reference. Section 4: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 5: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the NBMC shall remain unchanged and shall be in full force and effect. 17-26 Ordinance No. 2024-16 Page 6 of 6 Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This Ordinance shall take effect thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 23rd day of July, 2024, and adopted on the 24th day of September, 2024, by the following vote, to -wit: AYES: NAYS: ABSENT: WILL O'NEILL, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY TTORNEY'S OFFICE A R N C. HARP, CITY ATTORNEY Attachments: Exhibit "A" — Findings for Approval Exhibit "B" — Title 20 (Planning and Zoning) Housing Opportunity (HO) Overlay Zoning Districts 17-27 EXHIBIT "A" Findings for Approval General Finding: An amendment to the City's Zoning Code is a legislative act. Neither Title 20 (Planning and Zoning) of the NBMC nor California Government Code Section 65000 et seq., set forth any required findings for approval of such amendments. Notwithstanding the foregoing, the following amendments to the Zoning Code will create internal consistency with the certified 6th Cycle Housing Element: Facts in Support of Finding: 1. The Zoning Code is a tool designed to implement the General Plan. Since the 6th Cycle Housing Element Implementation involves an amendment to the General Plan, it is necessary to also amend Title 20 (Planning and Zoning) to achieve its goals and policies. 2. The Zoning Code Amendment ("ZCA"), attached to this ordinance as Exhibit "B" incorporated herein, including the Housing Opportunity (HO) Overlay Zoning Districts with associated development standards, are consistent with the implementation program in the Housing Plan of the Housing Element, as discussed in Resolution No. 2024- under the Findings for the General Plan Amendment. The ZCA will enable the implementation of the Housing Element's key objective, which is to accommodate the development of housing projects to fulfill City's "fair share" of regional housing need and demand. 17-28 EXHIBIT "B" Title 20 (Planning and Zoning) Housing Opportunity (HO) Overlay Zoning Districts Chapter 20.28 (Overlay Zoning Districts) of the NBMC is amended to include a new Section 21.28.050 (Housing Opportunity [HO] Overlay Zoning Districts) as follows: Chapter 20.28 OVERLAY ZONING DISTRICTS (MHP, PM, B, HO, H) Sections: 20.28.010 Purposes of Overlay Zoning Districts. 20.28.020 Mobile Home Park (MHP) Overlay Zoning District. 20.28.030 Parking Management (PM) Overlay District. 20.28.040 Bluff (B) Overlay District. 20.28.050 Housing Opportunity (HO) Overlay Zoning Districts. 20.28.060 Height (H) Overlay District. Section 20.28.010 (Purposes of Overlay Zoning Districts) is amended to include a new Subsection (D) as follows: D. HO (Housing Opportunity) Overlay Zoning Districts. The HO Overlay Zoning Districts are intended to accommodate housing opportunities consistent with the Housing Element's focus areas and to ensure the City can meet its allocation of the Regional Housing Needs Assessment (RHNA). The specific areas are identified in Part 8 of this title (Maps). New Section 20.28.050 (Housing Opportunity [HO] Overlay Zoning Districts) is incorporated into the Chapter as follows: 20.28.050 Housing Opportunity (HO) Overlay Zoning Districts. A. Applicability. This section applies to properties located in one of the Housing Opportunity (HO) Overlay Zoning Districts, as identified in Part 8 of this title (Maps - NOTE: Maps largely mirror the focus areas in Appendix B of the Housing Element and will be posted once available). This includes the following subareas: 1. HO-1 - Airport Area Environs Area - The Airport Area Environs Area is located north of the Upper Newport Bay Nature Reserve, primarily around the John Wayne Airport. 17-29 2. HO-2 - West Newport Mesa Area - The West Newport Mesa Area is located near the southwest corner of the City and primarily consists of industrial properties along 16th Street, Production Place, and 15th Street. 3. HO-3 - Dover-Westcliff Area - The Dover-Westcliff Area includes property on both sides of West Coast Highway and the west of Dover Drive. Properties in the Lido Village area are included. 4. HO-4 - Newport Center Area - The Newport Center Area is generally bounded by San Joaquin Hills Road, MacArthur Blvd, Coast Highway, and jamboree Road. 5. HO-5 - Coyote Canyon Area - The Coyote Canyon Area is located on the south side of California State Route 73, at the junction of Newport Coast Drive. The above listed are general descriptions of each subarea and additional properties may be included with the subarea. To be eligible for the provisions of this chapter, the property must be listed on the HO area map as an "Opportunity Site". 6. HO-6 - 5th Cycle Housing Element Sites - Those sites that are identified as 5th Cycle Housing Element sites on Figure B-5 of the 6th Cycle Housing Element. See subsection 20.28.050(E) for alternative review process. B. Uses Allowed. The following uses shall be permitted in the Housing Opportunity (HO) Overlay Zoning Districts with exception of HO-6 where only the base zoning standards apply: 1. Any use that is permitted or conditionally permitted in the base zone; 2. Multiple -unit development that meets the density requirements set forth in this section; 3. Mixed -use development that includes a residential component which complies with the minimum density set forth in this section; and 4. Residential supporting uses such as leasing/sales/property management offices, fitness facilities, recreation facilities, etc. C. Subarea Development Standards. 1. 1. Development Standards. The following development standards shall apply to any residential or mixed -use project permitted pursuant to this section. Unless otherwise modified by this section, all applicable development standards, including any adopted objective design standards, shall apply. 17-30 TABLE 2-16 DEVELOPMENT STANDARDS FOR HOUSING OPPORTUNITY OVERLAY ZONES Development Feature Housing Opportunity Subareas HO-1 HO-2 HO-3 HO-4 HO-5 HO-6 Development Limit 2,577 1,107 521 2,439 1,530 N/A (units)(') Lot Size/Dimension Per Base Zone Lot area required per unit Minimum: Minimum: Minimum: All (sq. ft.)(z) 2,178 (20 2,178 (20 du/ac) 2,178 (20 Standards du/ac) Maximum: du/ac) Per Base Maximum: 871 (50 du/ac) Maximum: Zone 871 (50 726 (60 du/ac) du/ac)(10) Setbacks Front 0 ft.(3) 10 10 ft.(3)(4) 0(3) 10 ft.(3) ft.(3) Rear 0 20 ft. 20 ft. 0 20 ft. Side 0 (4) Street Side 0(3) 10 10 ft.(3) 0 ft.(3) 10 ft.(3) ft.(3) Height Per Base 65 ft. 65 ft.(6) Per 65 ft. Zone Base unless Zone(') otherwise identified on the map Building Separation 10 ft. Floor Area Ratio (FAR) No restriction(8) Common Open Space(9) Minimum 75 square feet/dwelling unit. (The minimum dimension [length and width] shall be 15 feet.) Private Open Space(9) 5% of the gross floor area for each unit. (The minimum dimension [length and width] shall be 6 feet.) Fencing See Section 20.30.040 (Fences, Hedges, Walls, and Retaining Walls). Landscaping See Chapter 20.36 (Landscaping Standards). Lighting See Section 20.30.070 (Outdoor Lighting). Outdoor Storage/Display See Section 20.48.140 (Outdoor Storage, Display, and Activities). Parking See Subsection (D)(3) below and Chapter 20.40 (Off - Street Parking). Satellite Antennas See Section 20.48.190 (Satellite Antennas and Amateur Radio Facilities). Signs See Chapter 20.42 (Sign Standards). 17-31 (1) Development limits are additional residential development opportunities beyond the base allowances in this Title and General Plan, including projects approved under those base allowances and units identified as pipeline units in the 611 Cycle Housing Element (Table B-2). Development limits shall not include density bonus units. Furthermore, eligible units are only counted against the development limits when they are either entitled or are issued a building permit if allowed by right. However, 25% of the development limit within each HO Overlay Zoning District that includes properties within the Coastal Zone shall be reserved until such a time as the Citys Local Coastal Program has been amended to allow for housing consistent with the implementation of the 6th Cycle Housing Element. Following the Citys Local Coastal Program Amendment, priority for the reserved units will be given to sites located within the Coastal Zone. (2) Minimum/maximum allowable density range may be based on an average density of the entire project site, excluding density bonus units. (3) Any portion of the building that is over 20 feet in height shall be setback a minimum 20 feet from the street right-of- way. (4) Except in the Mixed -Use Mariners Mile (MU-MM) Zoning District wherein residential uses are only allowed beginning 100 feet north of Coast Highway. (5) The combined total from both sides shall be 15 feet. (6) The height shall be limited to 35 feet in the Shoreline Height Limit Area, as identified in Map H-1. (7) "Base Zone" includes all height limitations established by the Sight Plane Ordinance (Ordinance No. 1371 and Ordinance No. 1596). (8) The FAR in this table only applies to residential floor area, including any supporting facilities. In mixed -use developments, the FAR for nonresidential is still applicable. (9) For purposes of this section, common and private open space in HO-1 may include enclosed shared amenities such as a clubhouse, swimming pool, tennis court, basketball court, racquetball court, weightlifting facility, children's playground equipment, sauna, jacuzzi, day care facility, or any other recreational amenities/facilities as deemed appropriate by the Community Development Director. (10) This density is intended for the former Coyote Canyon Landfill site only. The Sage Hill School site is limited to a maximum of 20 dwelling units. 2. Airport Area Environs Area (HO-1). The following development standards shall only apply to projects with the Airport Area Environs Area: a. Sound Mitigation. The interior ambient noise level of all new residential dwelling units shall meet applicable standards of the Section 10.26.030 (Interior Noise Standards). An acoustical analysis report, prepared by an acoustical engineer, shall be submitted describing the acoustical design features of the structure that will satisfy the interior noise standard. The residential units shall be constructed, and noise attenuated in compliance with the report. b. Advanced Air Filtration. The design of all new residential and mixed -use residential developments shall include advanced air filtration systems to promote cleaner air within living environments. c. Notification to Owners and Tenants. A written disclosure statement shall be prepared prior to sale, lease, or rental of a residential unit within the development. The disclosure statement shall indicate that the occupants will be living in an urban type of environment adjacent to an airport and that the noise, odor, and outdoor activity levels may be higher than a typical suburban residential area. The disclosure statement shall include a written 17-32 description of the potential impacts to residents of both the existing environment (e.g., noise from planes, commercial activity on the site and vehicles streets) and potential nuisances based upon the allowed uses in the zoning district. Each and every buyer, lessee, or renter shall sign the statement acknowledging that they have received, read, and understand the disclosure statement. A covenant shall also be included within all deeds, leases or contracts conveying any interest in a residential unit within the development that requires: (1) the disclosure and notification requirement stated herein; (2) an acknowledgment by all grantees or lessees that the property is located within an urban type of environment and that the noise, odor, and outdoor activity levels may be higher than a typical suburban residential area; and (3) acknowledgment that the covenant is binding for the benefit and in favor of the City of Newport Beach. 3. West Newport Mesa Area (HO-2). The following development standards shall only apply to projects with the West Newport Mesa Area: a. West Newport Mesa Streetscape Master Plan. Any residential or mixed -use residential development shall implement applicable components of the adopted West Newport Mesa Streetscape Master Plan. 4. Coyote Canyon Area (HO-5). The following development standards shall only apply to projects with the Coyote Canyon Area: a. Public Park. Any future residential development within this subarea shall include a public park that is no less than 3.5 acres, in aggregate. As part of the review for the overall project, the developer shall provide a detailed description of the public park, including timing, dimensions, and location within the project site. b. Public Trails. Any future residential development shall include public trails for the entire subarea that accommodate multiple modes of transit (i.e., walking and bicycling) and connect to nearby community resources, as well as the existing trail system. As part of the review for the overall project, the developer shall provide a detailed description of the trail system, including timing, dimensions, alignment, and location within the project site. D. General Development Standards. The following development standards shall apply to all projects within the Housing Opportunity zone, regardless of subarea: 1. Mixed -use developments. All mixed -use developments shall comply with Section 20.48.130 (Standards for Mixed -Use Projects). In addition, a minimum of 50% of the 17-33 floor area of mixed -use developments shall be dedicated to residential uses. For purposes of this section, floor area be defined as all enclosed floor space, but exclude parking garages/spaces, utility areas, and storage areas that are not directly accessible from the interior of a dwelling unit. 2. Landscaped Setbacks. All front and street side setbacks shall be landscaped, except for areas that provide vehicle and pedestrian access to the right-of-way. 3. Residential Off -Street Parking Requirements. Residential parking requirements for projects within the Housing Opportunity Overlay Zones shall be provided in accordance with Table 2-17 below. Parking for all other uses not included in this table shall be provided in accordance with Chapter 20.40 (Off -Street Parking Requirements) of the NBMC. TABLE 2-17 RESIDENTIAL OFF-STREET PARKING FOR HOUSING OPPORTUNITY OVERLAY ZONES Land Use Subtype Parking Requirement Residential Studio 1.1 spaces per dwelling unit (Rental) 1 Bedroom 1.5 spaces per dwelling unit 2 Bedrooms 1.8 spaces per dwelling unit 3 Bedrooms 2.0 spaces per dwelling unit Visitor Parking 0.3 spaces per dwelling unit Residential Studio 1.4 spaces per dwelling unit (Ownership) 1 Bedroom 1.8 spaces per dwelling unit 2 Bedrooms 1.8 spaces per dwelling unit 3 Bedrooms 2.0 spaces per dwelling unit Visitor Parking 0.3 spaces per dwelling unit E. Review Process. Notwithstanding Sections 20.48.130(A) and 20.52.080, any residential or mixed -use development in the HO Overlay Zones that includes a minimum of 20% of the units reserved for very -low- and low-income residents shall not require a Site Development Review, but shall require an affordable housing implementation plan (AHIP) and shall meet all the following criteria: 1. All units designated as affordable to very -low and/or low-income residents shall be subject to a minimum 30-year affordability covenant; 2. Affordable units shall reflect the range of numbers of bedrooms provided in the residential development project as a whole, but may be smaller and have different interior finishes and features than market -rate units; 17-34 3. Affordable units shall be comparable in the facilities provided (e.g., laundry, recreation, etc.) and in the quality of construction and exterior design to the market - rate units; and 4. Affordable units shall be dispersed throughout the residential development. Subsection 20.48.130(B) shall be amended to include a reference to the HO Overlay Zoning Districts as follows: B. Development Standards. In addition to the development standards provided in this section, development standards for mixed -use projects are provided in: 1. Table 2-10 (Development Standards for MU-V; MU-MM; MU-DW; and MUCV/15th St.); 2. Table 2-11 (Development Standards for MU-W1 and MU-W2 Mixed -Use Zoning Districts); 3. Table 2-16 (Development Standards for Housing Opportunity Overlay Zones); and 4. Other sections in this Part 4 for specific uses that may be part of the proposed mixed -use project. Part 8. Maps, Chapter 20.80 (Maps) is amended to include new Section 20.80.025 (Housing Opportunity Overlay Zoning Districts maps) as follows: Chapter 20.80 MAPS Sections: 20.80.010 Area maps. 20.80.020 Bluff overlay. 20.80.025 Housing Opportunity Overlay Zoning Districts maps. 20.80.030 Height limit areas. 20.80.035 Parking Management Overlay District maps. 20.80.040 Setback maps. 17-35 Section 20.80.025 (Housing Opportunity Overlay Zoning Districts maps) is added in its entirety to include an indexing of maps as follows: HO-1 - Airport Area Environs Area (PDF) HO-2 - West Newport Mesa Area (PDF) HO-3 - Dover-Westcliff Area (PDF) HO-4 - Newport Center Area (PDF) HO-5 - Coyote Canyon Area (PDF) HO-6 - 5th Cycle Housing Element Sites (PDF) The corresponding maps for each of the Housing Opportunity Overlay Zoning Districts, as indexed in Section 20.80.025 and linked as a PDF, are to be in a similar format to the following series of maps beginning on the next page: 17-36 Legend Housing Opportunity Sites Overlay (Coastal Zone) \ Housing Opportunity Sites Overlay 151311 Coastal Zone Boundary 60' maximum 1 1 a35' maximum %� t_ ,f ff, } r t f {' . f X / I 4l� �i t, r - ,,•xv HO-1 Airport Area Environs Area p C-.Yof N.-P. 5-1, - 1 Gt5 D:�idv Ii 20, W)4 17-37 _-Legend ® Housing Opportunity Sites Overlay (Coastal Zone) I Housing Opportunity Sites Overlay 1111111 Coastal Zone Boundary LjL (1 —� f'A" r roes , ) ./'�'.'' • i HO-2 West Newport Mesa Area _ c r or Ne,.00n aao�n GIS pivitron lww 20, 7dZ+ 17-38 Legend X. Housing Opportunity Sites Overlay (Coastal Zone) Housing Opportunity Sites 111111 Coastal Zone Boundary p �Ili 1IF -7k L .. .......... NIE HO-3 Dover-Westcliff Area ,== I 17-39 {: Legend - Housing Opportunity Sites Overlay (Coastal Zone) Housing Opportunity Sites i ?=' 111111 Coastal Zone Boundary y J S '•I � ��ti� rl jr f f f�`� :! , � 1 ` is `.c'`,_ ' J �t r' i HO-4 Newport Center Area n d n.rav5 roar Arwn.mrri NBGIS Cny W N—P-15-1, 015 D.-.t+:o tun. 20, 2024 17-40 Legend` \ ti 3I1111 Coastal Zone Boundary Housing Opportunity Sites IN }, IL CJ FIT ko �44- ` ✓ `� t5�,44tti } }� , � NEG HO-5 Coyote Canyon Area -a C»y or Naw�orr Beach GIs p4w., mr» xa, 20 n Cara±Cnnrrn p,<a mrtl 17-41 HO-6 Existing 5th Cycle Sites Balboa Village NE 17-42 Attachment C Ordinance to Establish the Multi -Unit Objective Design Standards 17-43 ORDINANCE NO. 2024-17 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING TITLE 20 (PLANNING AND ZONING) OF THE NEWPORT BEACH MUNICIPAL CODE TO ADOPT OBJECTIVE DEVELOPMENT STANDARDS (PA2022-0245) WHEREAS, Section 200 of the City of Newport Beach ("City") Charter vests the City Council with the authority to make and enforce all laws, rules, and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California; WHEREAS, California Government Code Section 65580 et seq. ("State Housing Element Lave') requires 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; WHEREAS, the City's General Plan Land Use Element is a mandatory element that governs the ultimate pattern of development and requires updating every now and then for consistency with other General Plan elements; WHEREAS, every eight years, State Housing Element Law requires the City to update its General Plan Housing Element to identify and analyze existing and projected housing needs for the City along with a housing plan that provides adequate land use capacity to meet those needs; WHEREAS, the City was assigned a Regional Housing Needs Assessment ("RHNA") allocation of 4,845 new units as its projected housing need for the planning period covering 2021-2029 and, as a result, the City worked diligently to prepare its 6th Cycle Housing Element in compliance with state law; WHEREAS, preparation of the 6th Cycle Housing Element involved extensive public participation with community groups at numerous workshops, as well as meetings with the Planning Commission and City Council, and was assisted by an ad -hoc committee called the Housing Element Update Advisory Committee ("HEUAC") formed and appointed by the City Council; 17-44 Ordinance No. 2024-17 Page 2of6 WHEREAS, after several meetings with the State Department of Housing and Community Development ("HCD") and numerous drafts, the City Council adopted the final 6th Cycle Housing Element on September 13, 2022; WHEREAS, HCD certified the City's 6th Cycle Housing Element on October 5, 2022, as statutorily compliant with state law; WHEREAS, Section 4 (Housing Plan) of the 6th Cycle Housing Element presents a framework and strategy for meeting the needs of existing and future resident populations in Newport Beach based on the RHNA allocation of 4,845 new housing units, the "fair share" of regional housing need and demand, by planning for units within the following site groupings or "focus areas" that are best suited for residential growth: Airport Area Environs, West Newport Mesa, Newport Center, Dove r/Westcl iff, and Coyote Canyon; WHEREAS, the 6th Cycle Housing Element opportunity sites are to be rezoned per Housing Element Policy Actions 1A through 1 F to accommodate the City's RHNA obligation, including a buffer necessary to address future "no net loss" of available sites and to preclude the need to identify replacement sites during implementation; WHEREAS, the rezoning includes the establishment of overlay zoning districts and accompanying development standards, as well as corresponding amendments to the General Plan Land Use Element and the Local Coastal Program; WHEREAS, to comply with state law, the City has been working diligently to implement the 6th Cycle Housing Element no later than February 2025 ("6th Cycle Housing Element Implementation"), which requires the following amendments and actions: • General Plan Amendment ("GPA") - To revise the necessary goals and/or policies within the City's Land Use Element to support housing production in the focus areas identified by the 6th Cycle Housing Element; • Amendment to Title 20 (Planning and Zoning) ("ZCA") - To implement the Land Use Element's policy changes by allowing housing development as an opportunity and establishing appropriate objective design and development standards for multi -unit residential and mixed -use development projects; 17-45 Ordinance No. 2024-17 Page 3 of 6 • Local Coastal Program Amendment ("LCPA") - To revise and create new policies within the City's Coastal Land Use Plan and update Title 21 (Local Coastal Program Implementation Plan) of the Newport Beach Municipal Code ("NBMC") to support housing production in the focus areas identified by the 6t" Cycle Housing Element that are within the Coastal Zone; and • Program Environmental Impact Report ("PEIR") (SCH No. 2023060699) - To analyze potential environmental impacts under the California Environmental Quality Act ("CEQA") related to the 6th Cycle Housing Element Implementation, a Draft Housing Element Implementation Program Amendments Program Environmental Impact Report ("Draft PEIR"), to address reasonably foreseeable environmental impacts resulting from the 6th Cycle Housing Element Implementation; WHEREAS, the 6th Cycle Housing Element Implementation must take effect by February 2025 to avoid significant penalties and loss of local control dictated by state law, which may include, but are not limited to: • Increased exposure to public and private litigation; • Loss of permitting authority; • Financial penalties including monthly fines of up to $600,000; • Loss of eligibility for state and regional funding sources; • Court receivership; • Allowing housing developers to bypass the City's zoning requirements; and • Increased exposure to monitoring by the newly formed Housing Accountability Unit of HCD; WHEREAS, City staff worked closely with the community through the City Council -appointed General Plan Advisory Committee ("GPAC") and General Plan Update Steering Committee ("GPUSC") from March 2023 to August 2023 to draft Land Use Element goals and policies that support 6th Cycle Housing Element Implementation, including the ZCA; WHEREAS, the draft GPA that was supported by the GPAC and the GPUSC was posted online along with the draft ZCA on August 30, 2023, with additional public comments and participation at the Planning Commission Study Session on September 21, 2023, City Council Study Session on February 13, 2024; WHEREAS, the draft GPA was revised and reposed online on January 16, 2024, and March 28, 2024, based on the public's input; 17-46 Ordinance No. 2024-17 Page 4of6 WHEREAS, a public hearing was held by the Planning Commission on April 18, 2024, in the Council Chambers at 100 Civic Center Drive, Newport Beach, California to consider the actions and amendments required for the 6t" Cycle Housing Element Implementation. A notice of time, place, and purpose of the hearing was given in accordance with Government Code Section 54950 et seq. ("Ralph M. Brown Act"), Chapter 20.62 (Public Hearings) and Chapter 21.62 (Public Hearings) of the NBMC. Evidence, both written and oral, was presented to, and considered by the Planning Commission at this hearing; WHEREAS, at the conclusion of the public hearing, the Planning Commission adopted Resolution No. PC2024-006 by a unanimous vote (5 ayes, 2 recusals) recommending the City Council certify the Housing Element Implementation Program Amendments Draft PEIR and approve the 6th Cycle Housing Element Implementation; WHEREAS, California Public Utilities Code ("CPUC") Section 21676(b) requires the City to refer the 6th Cycle Housing Element Implementation to the Orange County Airport Land Use Commission ("ALUC") to review for consistency with the 2008 John Wayne Airport Environs Land Use Plan ("AELUP"); WHEREAS, on May 16, 2024, the ALUC determined the 6tn Cycle Housing Element Implementation is inconsistent with the AELUP; WHEREAS, pursuant to Sections 21670 and 21676 of the CPUC, the City Council held a duly noticed public hearing on May 28, 2024, and adopted Resolution No. 2024-32 (7 ayes, 0 nays), to notify the ALUC and State Department of Transportation Aeronautics Program of the City's intent to override ALUC's inconsistency finding and on May 29, 2024, the City issued the Notice of Intent to Override ALUC's determination and received two comments in response; and WHEREAS, a public hearing was held on July 23, 2024, by the City Council in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California to consider the 6th Cycle Housing Element Implementation, including consideration of certifying the PEIR, adoption of CEQA Findings, Mitigation Monitoring and Reporting Program and a Statement of Overriding Considerations. A notice of time, place, and purpose of the hearing was given in accordance with CPUC Section 21676(b), the Ralph M. Brown Act, Chapter 20.62 (Public Hearings), Chapter 20.66 (Amendments) and Chapter 21.62 (Public Hearings) of the NBMC, and City Council Policy K-1 (General Plan and Local Coastal Program) and City Council Policy K-3 (Implementation procedures for the California Environmental Quality Act). Evidence both written and oral, was presented to, and considered by, the City Council at this hearing. 17-47 Ordinance No. 2024-17 Page 5 of 6 NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: The City Council finds amendments to Title 20 (Planning and Zoning) of the NBMC are legislative acts. Neither Title 20 nor State Planning Law set for any required findings for either approval or denial of such amendments. Notwithstanding the foregoing, the ZCA is consistent with the corresponding GPA and LCPA. Section 2: The City Council does hereby make the findings attached hereto as Exhibit "A" and incorporated by reference, and approves the ZCA, as set forth in Exhibit "B," which is attached hereto and incorporated herein by reference. Section 3: The Housing Element Implementation Program Amendments Final PEIR (SCH No. 2023060699) was prepared for the 6th Cycle Housing Element Implementation (also referred to as the "Project") in compliance with the California Environmental Quality Act ("CEQA") as set forth in the Public Resources Code Section 21000 et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations ("CEQA Guidelines"), and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act). On July 23, 2024, the City Council adopted Resolution No. 2024-50, to certify the PEIR as complete and adequate, inclusive of all required findings, a statement of overriding considerations, and a mitigation monitoring reporting program. The City Council hereby finds that the action to adopt this Resolution approving the ZCA was considered within the PEIR. Resolution No. 2024-50 is hereby incorporated by reference. Section 4: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 5: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 17-48 Ordinance No. 2024-17 Page 6 of 6 Section 6: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the NBMC shall remain unchanged and shall be in full force and effect. Section 7: The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall be effective thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 23rd day of July, 2024, and adopted on the 24th day of September, 2024, by the following vote, to -wit. - AYES: NAYS: ABSENT: WILL O'NEILL, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY TTORNEY'S OFFICE A R N C. HARP, CITY ATTORNEY Attachments: Exhibit "A" — Findings for Approval Exhibit "B" — Title 20 (Planning and Zoning) Multi -Unit Objective Design Standards 17-49 EXHIBIT "A" Findings for Approval General Finding: An amendment to the City's Zoning Code is a legislative act. Neither Title 20 (Planning and Zoning) of the NBMC nor California Government Code Section 65000 et seq., set forth any required findings for approval of such amendments. Notwithstanding the foregoing, the following amendments to the Zoning Code will create internal consistency with the certified 6th Cycle Housing Element: Facts in Support of Finding: 1. The Zoning Code is a tool designed to implement the General Plan. Since the 6th Cycle Housing Element Implementation involves an amendment to the General Plan, it is necessary to also amend Title 20 (Planning and Zoning) to achieve its goals and policies. The Zoning Code Amendment ("ZCA"), attached to this ordinance as Exhibit "B" incorporated herein, including the Multi -Unit Objective Design Standards, are consistent with Senate Bill 330 which limits discretion for housing development projects that are consistent with the general plan and zoning code. The objective development standards provided herein will provide for the orderly development of residential development projects that are consistent with SB 330. 17-50 EXHIBIT "B" Title 20 (Planning and Zoning) Multi -Unit Objective Design Standards Section 20.48.185 (Multi -Unit Objective Design Standards) is added in its entirety as follows: 20.48.185 Multi -Unit Objective Design Standards A. Purpose. The purpose of the Objective Design Standards is to ensure the highest possible design quality and to provide a baseline standard for all new multi -unit development in Newport Beach. Multi -unit housing proposals must, at a minimum demonstrate compliance with all the standards contained herein. Proposals not consistent with any of these standards shall be required to seek approval through a discretionary site development review process as provided by Chapter 20.52.080 (Site Development Reviews). Applicants may request site development review to demonstrate that a project meets or exceeds the intent of the standards in this document by other means. The Objective Design Standards shall serve as the basis for evaluating proposed deviations; applicants using a discretionary review process shall refer to the Objective Design Standards to demonstrate how the proposal meets or exceeds the intent of the Newport Beach Development Code. B. Intent. The objective design standards are intended to result in quality design of multi -unit residential and mixed -use development. Review under these standards supports development that builds on context, contributes to the public realm, and provides high quality and resilient buildings and public spaces. These standards shall be applied uniformly and without discretion to enhance the built environment for both affordable and market - rate multi -unit residential development. C. Applicability. The standards shall be used for review of multi -unit development applications, including by -right and discretionary applications. The development standards in this subsection shall apply to residential and mixed -use development projects that include a residential density of a minimum of 20dwelling units per acre, which is calculated as an average over a project site. When an applicant elects to deviate from these objective development standards, approval of site development review by the Planning Commission shall be required in compliance with Chapter 20.52.080. The Planning Commission may waive any of the design and development standards in this section upon finding that: 1. The strict compliance with the standards is not necessary to achieve the purpose and intent of this section; and 2. The project possesses compensating design and development features that offset impacts associated with the modification or waiver of standards. D. General Standards 17-51 1. Multi -unit development orientation shall comply with the following standards: a. Residential developments with more than 8 buildings shall provide a minimum of two (2) distinct color schemes. A single -color scheme shall be dedicated to no less than 30 percent of all residential buildings. b. Residential developments with 30 or more buildings shall provide a minimum of three (3) distinct color schemes. The number of buildings in single style shall be no less than 30 percent. c. Pedestrian linkages to nearby neighborhoods, schools, parks, commercial projects, and parking areas shall be provided. d. Visual interest shall be provided through architectural variety, especially where several new buildings face streets, such as by using different layouts and/ or architectural features. Abutting buildings shall have complimentary architectural styles. e. Except for garage entrances, structured parking shall not be visible from the primary streets or any public open space, unless treated in an architectural manner subject to the approval of the Director. f. Loading docks and service areas on a corner lot must be accessed from the side street. g. In order to accommodate a minimum of one vehicle entering the facility, controlled entrances to parking facilities (gates, doors, etc.) shall be located a minimum of 18 feet from the back of sidewalk. 2. Mixed -use buildings orientation shall comply with all the standards mentioned above and the following standards: a. Commercial/office unit entrances shall face the street, a parking area, or an interior common space. b. Entrances to residential units shall be physically separated from the entrance to the permitted commercial uses and clearly marked with a physical feature. 17-52 46 $ gp g d r ra RM i�di.•� r ,. - - r Ve Buildings along streets and open space shall provide visual interest by using different form, color, and materials E. Orientation Building entries shall face the primary public street with direct pedestrian connections to the public sidewalks, unless determined to be infeasible due to topographic constraints by the Director. Pedestrian connections to the public sidewalks shall also be provided to parking areas and publicly accessible open space. For larger sites with multiple buildings, building entries may also be oriented to face internal open spaces, paseos, and recreation amenities. 2. Parking areas, covered and uncovered, shall be screened from public street frontages. Screening may be accomplished through building placement, landscaping, fencing, or some combination thereof. 3. For multi -unit projects located across the street from a single -unit family zoning district, parking lot areas and carports shall not be located along the single -unit neighborhood street frontages. 4. Buildings shall be arranged to provide functional common outdoors spaces (such as courtyards, paseos, or parks) for the use of residents. 17-53 �4 Public Street Public Street Building entries shall face a public street, internal open space, or paseo F. Parking Standards 1. Parking Lots. Parking shall comply with standards as specified in NBMC Section 20.40.070. a. Parking lots shall be placed to the side or rear of buildings. Parking lots shall be connected to building entrances by means of internal pedestrian walkways. 17-54 b. In surface parking lots with 10 or more spaces, a minimum of 14 square feet of landscape area shall be provided per parking space. Landscaping may be provided in parking lot planters and/or for perimeter screening. Palkingl osid andb�nlnd , the huiidng �. OAV 4i k`3 Par8lnyblaf Wed and a Cteewty .. fences, xwlla, and landscaping Parking lots shall be shielded from view from adjoining streets 2. Residential Garages a. Street -facing garage doors serving individual units that are attached to the structure must incorporate one or more of the following so that the garage doors are visually recessive and complementary to other building element: i. Garage door windows or architectural detailing consistent with the main dwelling. ii. Arbor or other similar projecting feature above the garage doors. 3. Parking Structures and Loading Bays a. Parked vehicles at each level within the structure shall be shielded from view from adjoining streets. b. The exterior elevations of parking structures shall be designed to minimize the use of blank concrete facades. This shall be accomplished through the use of decorative textured concrete, planters or trellises, or other architectural treatments. 17-55 so' r Parking structures shall be shielded from view from adjoining streets G. Common Open Space 1. The required front yard area shall not be counted toward satisfying the common recreation area requirement. 2. Residential unit entries shall be within a 114 mile walking distance of common open space. 3. Pedestrian walkways shall connect the common open space to a public right-of-way or building entrance. 4. Open space areas shall not be located directly next to arterial streets, service areas, or adjacent commercial development to ensure they are sheltered from the noise and traffic of adjacent streets or other incompatible uses. Alternatively, a minimum of ten (10) foot wide, dense landscaping area shall be provided as screening, but does not count towards the open space requirement. 5. An area of usable common open space shall not exceed an average grade of ten (10) percent. The area may include landscaping, walks, recreational facilities, and small decorative objects such as artwork and fountains. 6. All common open spaces shall include seatings and lighting. 17-56 H. Recreation Amenities 1. All play areas shall be located away from high automobile traffic and shall be situated for maximum visibility from the dwelling units. 2. Senior housing and/or housing for persons with disabilities shall be exempt from the requirement to provide play areas, but shall provide areas of congregation that encourage physical activity. 3. One common recreational amenity shall be provided for each 50 units or fraction thereof. Facilities that serve more people could be counted as two amenities. Examples of amenities that satisfy the recreational requirements include: a. Clubhouse at a minimum of 750 square feet. b. Swimming Pool at a minimum of 15x30 feet or equal surface area. 17-57 c. Tennis, Basketball or Racquetball court. d. Children's playground at a minimum of 600 square feet. e. Sauna or Jacuzzi. f. Day Care Facility. g. Community garden. h. Other recreational amenities deemed adequate by the Director. 17-58 I. Landscaping. All landscaping shall comply with all standards as specified in Chapter 20.36. 1. A minimum of 8 percent of the total site shall be landscaped. Required setbacks and parking lot landscaping may be counted toward this requirement. 2. Landscaping materials shall comply with the following: a. Ground cover instead of grass/turf, and/or b. Decorative nonliving landscaping materials including, but not limited to, sand, stone, gravel, wood or water may be used to satisfy a maximum of 25 percent of the required landscaping area. c. Turf areas shall be placed in areas for recreational use only and must have a 10 foot minimum dimension. 3. Landscaping and irrigation shall follow local and regional requirements and guidance for approved plant lists to meet the needs of local conditions, where available. For plants and planting materials addressing water retention areas, recommended resources include the Low Impact Development Manual for Southern California prepared by the Southern California Stormwater Monitoring Coalition, State of California Model Water Efficient Landscape Ordinance (MWELO) or Newport Beach Municipal Code Chapter 14.17 (Water -Efficient Landscaping). 17-59 ). Frontage Types and Standards. Frontage is the side of a building facing a public street right- of-way. 1. Storefronts for ground floor commercial in mixed -use projects. A frontage that reinforces the commercial character and use of the ground floor of the building. The elevation of the ground floor is located at or near the grade of sidewalk to provide direct public access into the building. a. The ground floor elevation shall be located at the elevation of the sidewalk to minimize the need for external steps and ramps at public entrances. b. Entrance shall be emphasized and clearly recognizable from the street. One or more of the following methods shall be used to achieve this result: i. Projecting non -fabric awnings or canopies above an entry (covered entry); ii. Varied building mass above an entry, such as a tower that protrudes from the rest of the building surface; iii. Special corner building entryway treatments, such as a rounded or angled facets on the corner, or an embedded corner tower, above the entry; iv. Special architectural elements, such as columns, porticoes, overhanging roofs, and ornamental light fixtures; v. Projecting or recessed entries or bays in the facade; vi. Recessed entries must feature design elements that call attention to the entrance such as ridged canopies, contrasting materials, crown molding, decorative trim, or a 45-degree cut away entry; or vii. Changes in roofline or articulation in the surface of the subject wall. 17-60 c. Windows and/or glass doors shall cover not less than 50 percent of the first floor elevation along street frontages. d. At least 25 percent of the surface area of each upper floor facade shall be occupied by windows. e. Development with retail, commercial, community or public uses on the ground floor shall have a clear floor to floor height of at least 15 feet. Floor -to -floor height may be reduced on sloping sites. f. The minimum height for awnings or marquees is 8 feet above finished grade and the maximum height for awnings or marquees is 12 feet above finished grade; except as otherwise required in the Building Code approved by the City. Ground Floor Commercial Residential Flats Retail/C feet in.) 17-61 11 | ` 2f 3 ># /� Ph docredit: UmAil Weather 2. Live-work/office fronts. A frontage that reinforces both residential and work activities that can occur in the building. The elevation of the ground floor is located at or near the grade of sidewalk to provide direct public access to the building. a. The ground floor elevation shall be located near the elevation of the sidewalk to minimize the need for external steps and ramps at public entrances. b. All ground floor tenant spaces that have street frontage shall have entrances on a facade fronting a street. All other ground floor uses may have a common lobby entrance along the front facade or private entrances along other facades. c. Entrances to upper floor units may be provided through a common lobby entrance and/or by a common entrance along a facade fronting a street. d. At least 40 percent of the surface area of the ground floor facade shall be occupied by display windows or translucent panels. e. At least 25 percent of the surface area of each upper floor facade shall be occupied by windows. f. The ground floor shall have a clear floor -to -ceiling height of at least 12 feet. g. The minimum height for awnings or marquees is 8 feet above finished grade and the maximum height for awnings or marquees is 12 feet above finished grade; except as otherwise required in the Building Code approved by the City. h. If the front facade is set back from the public sidewalk, the setback shall be landscaped and/or improved as an extension of the public sidewalk. 17-63 Ground Floor Live - Work / Office Grourn COMM live / w Residential q 12 feet (min.) 17-64 3. Residential fronts. A frontage that reinforces the residential character and use of the buildings. The elevation of the ground floor is typically elevated above the grade of the lot to provide privacy for residences by preventing direct views into the home from the sidewalk. Applicable to buildings with no commercial use on the ground floor. a. Residential frontages reinforce the residential character and use of the building. The ground floor may be elevated a maximum of 36 inches above the grade of the nearest adjacent public or private sidewalk to provide privacy for residences by preventing direct views into the home. i. Garages facing a public street shall not exceed 40 percent of the length of the building facade. ii. Entrances to ground floor units that have street frontage may be provided through a common lobby entrance and/or by private entrances from the adjacent sidewalk. iii. Entrances to upper floor units may be provided through a common lobby entrance and/or by a common entrance along a facade fronting a street. iv. At least 20 percent of the surface area of the ground and upper floor facade shall be occupied by windows. v. If the front facade is set back from the public sidewalk, the setback shall be landscaped (excluding stoops/front porches and paved paths to building entrances). 17-65 a c� il __� sc Ilu� s ,r w. ax i� k_ r. �oa�� Ground Floor Residential I"�—� Ground f residenti no more 36 inches sidewalk Parking level dovti K. Walls and Fences 10 feet (min.) Graphic credit. Crandall Arambula 1. Community perimeter or theme walls shall be solid decorative block walls. 2. Wall materials shall be brick, slump stone, tile, textured concrete, stucco on masonry, steel framing, or other material walls which require little or no maintenance. Plain concrete block walls (i.e. precision block) nor chain link fencing with inserts shall not be used as wall materials. 3. The style of the wall shall be the same or similar to the architectural style of the project. 4. All exterior perimeter walls located along public streets shall have an offset of a minimum of 5 feet deep for every 50 linear feet to 75 linear feet of the wall length, or be screened by a minimum of 2 feet of landscaping depth. 5. Retaining walls within a street facing setback and visible from the public sidewalk shall not exceed 4 feet in height and shall provide a minimum of 18 inches deep landscape in front of the wall. 17-67 P L. Utilities 1. All utility equipment shall be located out of the pedestrian path of travel. All utility equipment shall be purposefully and aesthetically placed adjacent to alleyways, within parking areas, rear or side yards, or within building "notch outs" and screened from public view. 2. If the mechanical equipment cannot be placed in rear or side yards, it shall be either placed on the ground and screened with landscape, or placed on the roof and screened with architectural materials such as roof or parapet consistent with the overall architectural style. 3. AI electrical utility equipment, electrical meters, and junction boxes shall be placed within a utility room. If a utility room is not feasible, then all utility equipment shall be purposefully designed as an integral part of the building development, placed adjacent to alleyways, within parking areas, or within rear or side yards, and screened from public view. M. Private Street Standards. The intent of Private Street realm standards is to foster a low speed, multi -modal internal site circulation network. Streets shall provide a limited amount of curbside parking for visitors, loading, service, and accessible ADA spaces. The streets shall be designed as an amenity for the site, including surface treatments and landscaping similar in character and quality to any paseos or common open space. 1. Private Street Right -of -Way. All new multi -unit development sites that provide private streets shall comply with a minimum width right-of-way standard. a. When on -street parallel parking is not provided, the right-of-way width shall be 41 feetin width. 17-69 b. When on -street parallel parking is provided, the right-of-way width shall be 50 feet in width. 2. Private Street Zones. Three zones as described below comprise the right-of-way. Variations in width reflect the presence or absence of on -street parking: a. Street Zone (SZ). Streets shall be 26-35 feet in width from curb -to -curb designed to provide motor vehicle and bicycle access. All Police and Fire emergency and maintenance vehicle access standards shall be met. Parallel curbside parking shall be permitted within roadways. Angled or head -in parking shall be prohibited. b. Sidewalk Zone (SWZ). A minimum of one SWZ, 5-feet-wide, shall be provided.. When on -street parking is provided, the SWZ shall be on the side of street with parking. Shrubs, ground cover, and street trees are prohibited in the zone. c. Landscaping and Paving Zone (LPZ). There shall be a minimum 5-foot Landscaping and Paving Zone. The zone is intended to provide a transition between the street and private residences. Landscaping shall comprise a minimum of 20 percent of the total building frontage(s) area. Landscape planting beds shall have a minimum width of 3 feet. Paving stone, brick or concrete unit pavers or poured in place concrete with integral color pigments is permitted in the Zone. Steps are permitted to above grade first floor entrances. 17-70 .II E E c E Parking Not Provided (When on -street parking not provided) Parking Provided oME;T' c 4' Maximum 36 feet _ 50 feet Right-of-way (When on -street parking is provided) GFaphic credit Crandall Arambul s 17-71 AW N. Private Driveway Standards. The intent of Driveway standards is to provide motor vehicle access to private garages and service areas, pedestrian access between residential garages and doors, and private or public street network. 1. Private Driveway Right -of -Way. All private driveways shall comply with a 26-foot minimum width fire apparatus access standard. No dead-end driveway shall exceed 150 feet in length. 2. Driveway Zones. Two zones described below comprise the driveway: a. Driveway Zone (DZ). Paving shall be asphalt, stone, brick or concrete unit pavers or poured in place concrete with integral color pigment. Stamped concrete shall be prohibited. b. Landscape and Paving Zone (LPZ). A 4-foot minimum width zone shall be provided. The Zone shall be landscaped a minimum of 20 percent of the total site abutting a building. A combination of vines, ornamental, grasses, shrubs, ground cover, and ornamental trees shall be provided. Landscaping in pots is permitted. 17-72 Minimum Build to line I Development Site JLPZ Back of curb t Development iLPZ Site Minumum Build to line m 26 feet I J LPZI Development Site —i— Back of curb curb Development Site Minimum Build to line .�iaphlc credit Crandall or rolled O. Publicly Accessible Open Space (PAOS) Standards. PAOS is intended to serve as an amenity for multi -unit tenant and surrounding neighborhood residents, employees and visitors. The PAOS shall be configured as passive paseo or promenade mobility corridors that provide walking and biking connections through or along the development site, or more active 17-73 courtyard gathering spaces that can be the focus for adjacent ground floor uses, especially where ground floor commercial is provided. The PAOS shall be contiguous, universally accessible, and shall be connected directly to adjacent public realm. Development sites that meet all requirements for providing PAOS, shall include one of the options as specified. OPTIONS Promenades Courtyards Paseos J Q Multi•use path or sidewalk Development Parcel (t net acre minimum) PADS (minimum 3 percent of site) Courtyard PAOS 1. Required PAOS. Development sites with a combined street frontage 200 feet or greater in width and a total development site area of 1 acre or greater shall provide a minimum of 3 percent PAOS of the net site area. All PAOS shall be in addition to all residential zoning common open space. 2. Site Area Calculations. The net site area shall be the total site area minus the following: a. Public Easements. Total area measured between the right-of-way line to the build -to -line. b. Utility Easements. The total area required easements for public utilities through the site. 3. PAOS Design Standards. a. Minimum PADS width. No paseo, promenade, or courtyard right-of-way shall be no narrower than 20 feet in width. If incorporated in a development plan, paseos or promenades shall include an 8-foot minimum width path; all courtyards shall include a minimum 6-foot minimum width path. 17-74 b. Access. All PAOS multi -use path access -ways shall be dedicated as a public easement subject to restrictions on hours of use. Paseo Pub I n Promenade Publicly Accessible Open Space P. Facade Modulation Standards. The intent of the standards is to modulate the building's massing and volume— the external dimensions comprising of height, length, width, and depth in a manner that results in buildings that are in proportion to development site context and provides opportunities for applied facade plane and surface architectural visual interest. All multi -unit dwellings, or multi -unit components of mixed -use buildings shall be modulated both vertically and horizontally. Modulation standards are provided for density ranges that correlate with multi -unit building typologies. Townhome buildings shall adhere to standards for buildings up to 30 dwelling units per acre and apartment buildings shall follow standards for buildings with greater than 30 dwelling units per acre. Applicants shall select a set of standards based upon the density of the building. Where development sites are of sufficient size to accommodate multiple building typologies with varying densities, the following Design Standards shall apply to each typology separately. Density allocations may be transferred within a contiguous property. Q. Vertical Modulation The intent of the standards is to minimize the perceived height of a building by visually organizing the facade in a manner that reflects the function of the underlying building floor(s) through the use of varied yet uniform application of height, form, material, and color articulation. 1. Components. All buildings shall be organized into an identifiable base, middle, and top to differentiate the first floor and upper function of the building. This tripartite articulation provides opportunities to create varied application of materials, color, and fenestration. 17-75 Modern or contemporary building architecture may be approved at the discretion of the Director. a. Base. For multi -story buildings, the first floor primary facade shall constitute the building's base. b. Middle. The primary facade of floor(s) above the base and below the top shall constitute the middle. c. Top. The primary facade of the uppermost floor(s) to the parapet or ridge line of a building and any facade of a floor(s) that steps back shall constitute the building's top. Buildings shall be vertically modulated with a base, middle, and top Buildings shall be horizontally modulated with recesses or projections 2. Vertical Modulation Changes in Facade Material and/or Color a. Banding. Use of functional and/or decorative horizontal facade belt course, trim, or other projections or recesses at floor lines between the base, middle, and top. The 17-76 projection or recess shall have a minimum height of 12 inches and a depth of 4 inches. b. Floor Heights. Change in floor -to -floor facade heights at the second floor or above. No middle or top floor -to -floor height shall be less than 10 feet. c. Fenestration. Changes in building window and door widths, heights, depths, materials, and colors. Changes in trim and inclusion or absence of shutters, mullions, muntins, transoms or other window components. d. Cladding Material. Buildings may express vertical modulation by providing a change of cladding materials to denote base, middle and top. Buildings using cladding material to provide vertical modulation are not required to provide banding. For buildings one hundred feet in height, a curtain wall system may be used above the building base. 3. Additional Vertical Modulation Standards a. First Floor Height. The minimum fist finished floor to second finished floor plate elevation shall be: i. 10 feet -for buildings with density of less than 30 dwelling units per acre. ii. 12 feet - for buildings with density greater than 30 dwelling units per acre, developed as residential only. iii. 15 feet - for buildings with a density greater than 30 dwelling units per acre with commercial uses on the ground floor. b. Vertical Variation. Base, middle and top facade divisions shall be consistent with the underlying floor plate heights. i. Density of less than 30 dwellings per acre — combining, omitting, increasing or decreasing the base or middle facade division height along building frontages shall be prohibited. ii. Density of greater than 30 dwellings per acre— increasing the base and decreasing the middle facade division height shall be permitted for any building facade greater than 60 feet in length. Stepping of plate heights shall be limited to no more than 1/3 of any total facade frontage length. 17-77 t m s `o m c a a 41 In 0 2 les in facade als & colors les in ration ig at nes limum >or Less than 30 Dwelling unit per acre minimum base density buildings (townhome) Ridgeorparapetime Top Midtlle I Base — rl"—M—aximum 1 Change in floor Change in to floor height fenestration Primary facade materials & colors Top cladding material & color Middle cladding material & Base cladding material 8 color vertical n base height Graphic crediL Crandall Va aiia 30+ Dwelling unit per acre minimum base density buildings (apartment) R. Horizontal Modulation The intent of the standards is to shorten the perceived length and mass of a building by providing facade recesses and projections that break up the horizontal thrust of a building. The modulation provides opportunities to accentuate and draw visual attention to key building features such as stairwells, elevators, lobbies, and entries, and create usable open spaces such as courtyards. Horizontal modulation is intended to be complemented and strengthened by accompanying application of different facade materials, color, and fenestration; and layering of additional recessed and projected architectural elements such as bays, balconies, and patios. 1. Building Standards for Developments with Density of less than 30 dwelling per acre a. Maximum building length. No building shall be greater than 150 feet in length. 17-78 b. Required minimum modulation area. A minimum of 10 percent of the total facade area shall be horizontally modulated. c. Minimum depth. All recesses or projections shall be a minimum of 2 feet in depth. d. Maximum number. No facade shall have no more than 2 total recesses or projections per facade. 2. Building Standards for Development with Density of 30 dwellings per acre or greater. a. Maximum facade length. Buildings in excess of 200 feet shall have a horizontal massing break of no less than 20 feet with a depth of 15 feet for every 200 feet of additional overall length. b. Required minimum modulation area. A minimum of 10 percent of the total facade area shall be horizontally modulated. c. Minimum depth. All recesses or projections shall be a minimum of 4 feet in depth. d. Minimum width. All recesses or projections shall be a minimum of 20 feet in width. e. Maximum number. No facade shall have no more than 4 total recesses or projections per facade. 17-79 ball: ti Total recessed or l—I projected fatsade area Primaryfarade Graphic crMft: Cranda 1 _. Less than 30 Dwelling unit per acre minimum base density buildings Excludes balconies, patios, bays or oriel forms Excludes top floor stepback Total recessed or projected facade area Primary facade 10 percent minimum — Minimum depth total facade area ' )4' $ t tf t cC JI EL 20 foot minimum ` _- - Street 30+ Dwelling unit per acre minimum base density buildings S. First Floor Opening and Transparency Standards 17-80 The standards are intended to foster passive 'eyes on the street' surveillance of the public realm by providing an adequate number of clear and direct sightlines between first floor residences and adjacent public realm sidewalks and common areas without compromising residential livability, privacy, and security. For multi -unit buildings with commercial first floor uses, the standards are intended to provide a greater amount of visibility of merchant goods and services for potential walking, rolling, or driving -by clients or customers. For all buildings, the standards apply only to portions of the first floor that contain residential or commercial conditioned/occupied floor areas fronting streets and open common open space. 1. Building Standards for Developments with Density of less than 30 dwellings per acre. a. Minimum Opening Standard. For any at -grade or above -grade residential first floor unit fronting a street or paseo, the building frontages shall be comprised of a minimum 20 percent transparent glazed door and window openings. 2. Building Standards for Developments with Density of 30 dwellings per acre or greater a. Minimum Opening Standard. First floor multi -unit building frontages shall be comprised of transparent glazed door and window openings as follows: i. 25 percent - for any at -grade or above -grade residential first floor unit fronting a street or paseo. ii. 50 percent - for any mixed use multi -unit building with a first floor commercial use fronting a street, courtyard or paseo. _® ON Spercente e e minimumum openingsnings Pin I 10 feet above finished floor — I —._..._._ - Cal cuWbon i area , Finished floor{ First floor facade ,raGnk creac Crenoatl Nambu6 First floor openings Less than 30 Dwelling unit per acre minimum base density buildings 17-81 H: s,.a ww e' ssrw: f ``rsi Hill r w '� * 'i� i ■ I := • •. �i '� _re �.�. as ��! �� r:-i Street irarAk credit C—ida9 A+ ,t la First floor facade First floor openings Excluded non -occupied uses 30+ Dwelling unit per acre minimum base density buildings T. First floor Entry Standards The intent of the standard is to locate building individual unit and lobby entries along street frontages to foster pedestrian neighborhood access and street -oriented activity. Unobstructed sight lines and pedestrian access from the public sidewalk shall be provided. The standards do not apply to service and loading entrances. 1. Individual Residential Unit Entrances a. Residential Front Door Standards. At -grade or above -grade first floor individual residential units' entrances shall be accessed directly adjacent public realm or common area unless determined not feasible by the Director or due to site topographic considerations. i. Minimum entry to sidewalk width — walkway, ramp, and stairs connecting to the public sidewalk shall be a minimum of 5 feet in width. ii. Entry stoop, terrace and patio area — if proposed, entry terraces and patio areas shall be a minimum of 40 square feet. If proposed, entry stoops shall be a minimum of 20 square feet excluding any required stairs or ramp area. 2. Lobby Entrances a. Standards. Lobby entrances shall be located at -grade, unless determined not feasible by the Director. Residential and commercial lobby entrances shall be accessed directly from the adjacent public realm or PAOS. i. No lobby door setback is required. ii. Minimum entry sidewalk width - where entries are setback, walkway width connecting to the sidewalk zone shall be a minimum of 6 feet. 17-82 iii. Entry landing area - shall be a minimum of 60 square feet. iv. Prohibited - lobby entrance primary entries are prohibited from driveways, at -grade parking lots, parking structures, or alleys unless required due to topographic conditions. Primary Primary Minimum entry 200square.foot minimum entrance facade setback entry stoop or terrace t � t Build -TO m + - Direct access - "+ to public realm Public realm .. Grapiuc rrcMii'Uan fall MdinO:.:a Primary facade Stoop, terrace or patio Primary entrance Individual residential unit front door standards Lobby entrances shall be accessed directly from the street 17-83 17-84 Attachment D Redline -Strikeout Version of Housing Element Section 3 (This document is available at the following link due to bulk: https://newportbeachca.gov/home/showdocument?id=74989&t=638575787146870000 ) 17-85 Attachment E Redline -Strikeout Version of Housing Element Section 4 17-86 ta'ills Ie �r:a 4' -71 :. '�r ,��... � �_- i.: I wY ram•_ - �Ist ��- '� ■rly a '.`4 '■ Irv, Mop— LZ . 7"z Oak got v _ ZT- 64 1TiTi L' City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: The Housing Plan describes the City of Newport Beach 2021-2029 policy program. The Housing Plan describes the specific goals, policies, and programs to assist City decision makers to achieve the long-term housing objectives set forth in the Newport Beach Housing Element. This Plan identifies goals, policies, and programs aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents. These goals, policies, and programs further the City's overall housing policy goal to encourage a more diverse, sustainable, and balanced community through implementation of strategies and programs that will result in economically and socially diversified housing choices that preserve and enhance the special character of Newport Beach. The City will make every effort to budget, plan for and comply with the timelines for implementation set forth in this Section, but may be contingent upon funding and staffing resources. The Southern California Association of Governments (SCAG) has conducted a Regional Housing Needs Assessment (RHNA) to determine the City's share of the affordable housing needs for the Orange County region. The RHNA quantifies Newport Beach's local share housing needs for the region by income category. Income categories are based on the most current Median Family Income (MFI) for Orange County. The current 2021 MFI (for an assumed family of 4 persons) for Orange County is $106,700. The MFI may change periodically, as it is updated on an annual basis. The City's 2021-2029 RHNA growth need of 4,845 housing units is allocated into the following income categories: • 1,456 units - Very low-income (0-50% County MFI) • 930 units - Low-income (51-80% of County MFI) • 1,050 units - Moderate -income (81-120% of County MFI) • 1,409 units - Above moderate -income (120% or more of County MFI) Housing Goals The City of Newport Beach has identified the following housing goals as part of this Housing Element Update: 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. Section 4: Housing Plan (September 2022 Final Housing Element) 4-2 17-88 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: 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. The goals listed above are described below and on the following pages with accompanying policies and programs to achieve them. B. Housing Policies and Program Actions This Housing Element expresses the Newport Beach community's overall housing goals and supporting policies and program actions to achieve them. The stated Housing Program Actions are based on a review of past performance of the 5th Cycle Housing Element, analysis of current constraints and resources, and input from Newport Beach residents and stakeholders. Housing Goal #1 Provision of adequate sites to accommodate projected housing unit growth needs. Housing Policy 1.1: identify a variety of sites to accommodate housing growth need by income categories to serve the needs of the entire community. Implementation Actions Adequate Sites to Accommodate 2021-2029 RHNA The City of Newport Beach has a total Regional Housing Needs Assessment (RHNA) allocation of 4,845 units. State law requires the City of Newport Beach to identify adequate sites to accommodate its fair share allocation for the 6th Cycle Housing Element. This City has identified a variety of candidate sites through extensive analysis in collaboration with the community and stakeholders through Newport Together's "Listen and Learn" process, multiple meetings of the City's Housing Element Update Advisory Committee (Committee), participation by interested residents at a variety of public meetings, workshops, and consultation with property owners. The City of Newport Beach has identified an adequate amount of land that was determined by the Committee as "Feasible" or "Potentially Feasible" for future development. Only a portion of these candidate sites will be necessary to accommodate the City's RHNA planning obligation. These sites have undergone a rigorous process to evaluate site features, development potential, developer/owner interest and other factors to deem them appropriate for housing during the 2021-2029 Planning Period. As part of the analysis of adequate sites, the City has comprehensively reviewed opportunity sites citywide and have has fdentify identified eight (8) primary areas of opportunity: • Airport Area Environs • Dover/Westcliff • West Newport Mesa • Newport Center • Banning Ranch • 5th Cycle Housing Element Sites Section 4: Housing Plan (September 2022 Final Housing Element) 4-3 17-89 City of Newport Beachwp� 2021-2029 HOUSING ELEMENTvvo5`S fir. -a ..... • Coyote Canyon • Accessory Dwelling Units Since the City has identified several opportunity sites in the St" Cycle Housing Element that will be utilized in the 6t" Cycle Housing Element, additional policy considerations are stated in this Policy Program. These opportunities sites are described in map and tabular format in Appendix B of this Housing Element. Each of the opportunity areas described in this Housing Element have been assigned a targeted acreage, and a targeted number of new housing units (see following implementing Policy Action statements). Collectively, these targets must meet the unmet RHNA need as required by sState law. It is expected there may be deviations from the targets with future implementing zoning actions. New opportunity sites may be identified, and other sites may be deemed tunsuitable, or densities may be modified, all based on new information received over time. The City may adopt future zoning strategies that are more or less than the identified targets in this Housing Element provided the total unmet RHNA need by income category is accommodated within state -defined deadlines. If future zoning strategies deviate from the targets expressed in this Housing Element but still meet the requirement to identify adequate sites to accommodate unmet RHNA need, no amendment to the Housing Element would be required and deviations of any magnitude may be considered subject to the City Council's review and approval in consultation with the Community. rTs��� rrrir�*rtrrr a3 n'!msr: nor n . ri.MW�s Section 4: Housing Plan (September 2022 Final Housing Element) 4-4 17-90 City of Newport Beach 2021-2029 HOUSING ELEMENT For all Rezone Policy Actions 1A to 1F, Pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits to the following: • permit owner -occupied and rental multifamily uses by -right for developments in which 20 percent 20% 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 sixteen 161 units per site; • require a minimum density of twenty 201 units per acre; and • at least 50 percent J5 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 100% residential use, and o require residential use occupy 50 percent 5 of the total floor area of a mixed -use project. Policy Action 1A: Airport Environs Sub Area The City will establish a housing opportunity overlay district, or similar rezoning strategy, in the Airport Environs area for 172 acres of land to provide for the accommodation of at least 2,577 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted average density of 50 dwelling units per acre. Implementation of this program will also include but not limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. For Policy 1A, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits 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: Section 4: Housing Plan (September 2022 Final Housing Element) 4-5 17-91 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: o allow 100 percent residential use, and o require residential use occupy 50 percent of the total floor area of a mixed-useproject. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1 B: West Newport Mesa The City will establish a housing opportunity overlay, or similar rezoning strategy, in the West Newport Mesa area for 47 acres of land to provide for the accommodation of at least 1,107 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted average density of 50 dwelling units per acre. Implementation of this program will also include but not limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. For Policy 113, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits 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. 0 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-useproject. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (September 2022 Final Housing Element) 4-6 17-92 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: Policy Action 1 C: Newport Center The City will establish a housing opportunity overlay, or similar rezoning strategy, in the Newport Center area for 163 acres of land to provide for the accommodation of at least 2,439 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will allow development of a variety of residential product types at a permitted average density of 50 dwelling units per acre. Implementation of this program will also include but not be limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Low incomes. In developing the Overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. For Policy 1C, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits 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-useproject. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1 D: Dover/ Westcliff The City will establish an overlay, or similar rezoning strategy, in the Dover / Westcliff area for 20 acres of land to provide for the accommodation of at least 521 housing units in the Very Low, Low, Moderate and Above Moderate -income categories. A Map and Table Summary of these sites are provided in Appendix B of this Housing Element. The overlay, or similar rezone strategy, will permit development of a variety of residential product types at a permitted average density of 50 dwelling units per acre. Implementation of this program will also include but not limited to development standards, overlay text and entitlement procedures to, among other things, encourage the development of housing for persons of Very Low and Low incomes. In developing the overlay, or similar rezone strategy, the City will evaluate Section 4: Housing Plan (September 2022 Final Housing Element) 4-7 17-93 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. For Policy 1D, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits 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-useproject. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1E: Banning Ranch The City has identified the Banning Ranch area as a potential site to accommodate future housing needs. The City has previously approved housing development on this site, but the approved project was subsequently denied by the California Coastal Commission. Additionally, there is a potential the site will be purchased by an entity to preserve the area as open space. The State Department of Housing and Community Development and California Coastal Commission have expressed they do not support the City utilizing the site to the accommodate future RHNA needs based on this potential. Despite these statements, the City believes this site is still a viable opportunity to provide housing for a variety of income levels on a small portion of the 400+ acre site while protecting environmental resources. The City will continue to support development potential in the Banning Ranch Area, but will not assume the potential buildout of the area to demonstrate adequate sites for the 2021-2029 RHNA planning period. The site is currently within the City's Sphere of Influence. The City will continue to work collaboratively with the County of Orange for annexation and with other agencies/entities regarding future use of the property. The City will continue to pursue residential opportunities on a portion of the Banning Ranch site, consistent with existing General Plan policies to provide opportunities for up to 1,475 residential units at an average density of 50 dwelling units per acre. Implementation of this program will also include development standards and entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. Section 4: Housing Plan (September 2022 Final Housing Element) 4-8 17-94 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: For Policy 1E, pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits 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-useproject. Timeframe: Complete necessary Code, General Plan and LCP Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1 F. Coyote Canyon The Coyote Canyon property is a closed landfill that is owned and managed by the County or Orange but leased to a private developer. The area is of substantial acreage but has limited development potential due to various environmental considerations. The developer has evaluated the entire landfill area and has concluded that 34 acres of the property is not subject to environmental constraints. Additionally, the City has been advised that the County has expressed interest in participating in a transfer of a portion of the property to accommodate residential opportunity. The City will rezone at least 34 acres of land on the Coyote Canyon site, as shown in Appendix B, to accommodate up to 1,530 housing units at an average density of 60 dwelling units per acre. Implementation of this program will also include development standards and entitlement procedures to encourage the development of housing for persons of Very Low and Low incomes. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1G: 51 Cycle Housing Element Sites The City has identified a number of sites in the sites inventory contained in Appendix B contain infill sites that were identified in the 5th Cycle Housing Element to accommodate the Very Low and Low-income categories. To comply with State law, the City will amend Title 20 of the Newport Beach Municipal Code (NBMC) to permit residential uses by -right for housing development projects in which at least 20-percent Section 4: Housing Plan (September 2022 Final Housing Element) 4-9 17-95 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: of the units are affordable to lower -income households. For the purpose of implementation of this program, by -right shall mean the City will not require a discretionary permit application, such as a Conditional Use Permit or Planned Unit Development Permit, that would constitute a "project" as described in Section 21100 of the Public Resources Code. For sites in the coastal zone, the City will continue to require coastal development permits to determine compliance with the City's certified Local Coastal Program. The City commits to zoning these 5t" Cycle 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. Timeframe: Complete Code Amendments within 36 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1 H: Accessory Dwelling Unit Construction Accessory Dwelling Units (ADUs) are an accepted method of providing affordable housing in the City. Due to recent legislation, the ability to entitle and construct ADUs has increased significantly. The City recognizes the significance of this legislation as evidenced by a marked increase in ADU permit applications. Due to this legislation, the City believes aggressive support for ADU construction will result in increased opportunities for housing including affordable units. The City will aggressively support and accommodate the construction of at least 240 ADUs by a variety of methods, including but not limited to: • Developing and implementing a public awareness campaign for construction of ADUs with a systematic approach utilizing all forms of media and outreach distribution • Preparing and maintaining a user-friendly website committed to information related to codes, processes, and incentives pertaining to the development of ADUs and JADUs in the City. • Evaluating and assessing the appropriateness of additional incentives to encourage ADU development. • Approve permit -ready standard plans to permit new ADU construction to minimize design costs, expedite permit processing, and provide development certainty for property owners. Timeframe: Analyze methods within 12 months of Housing Element adoption; Establish programs within 24 months of Housing Element adoption. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (September 2022 Final Housing Element) 4-10 17-96 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: Policy Action 11: Accessory Dwelling Units Monitoring Program The City will annually monitor its progress in permitting an average of 30 ADUs annually, for a total of 240 ADUs during the planning period, in conjunction with Annual Housing Element Progress Report. The analysis will track applications for ADUs, location, affordability, and other important features. If ADU permitting falls below 20 ADUs for more than two consecutive years, the City re-evaluate the City's ADU standards and procedures and modify accordingly within 6 months. If actual production of ADUs is far from anticipated trends, then the City will commit to increasing the capacity or inventory of sites within six months. This increase in capacity would apply to the proposed rezoning focus areas to demonstrate the City has remaining capacity to accommodate RHNA need previously assumed through ADU construction. If actual production is near anticipated trends, then the City will consider additional outreach and marketing Timeframe: Ongoing, Annual, Developing Monitoring Program within 6 months of adoptions of Housing Element, Increase capacity in rezone areas withing 6 months if monitoring program is far from anticipated trends. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1J: Accessory Dwelling Units Amnesty Program The City will establish a program to allow owners with existing unpermitted ADUs to obtain permits to legalize the ADUs during the 2021-2029 planning period. The Amnesty Program should consist of two parts: 1) education; and 2) incentives. The intent of Part 1 (education) of the program is to create an information guide to help educate and inform the importance and benefits of legalizing and bringing their unpermitted units into compliance. The information guide will include an overview of the necessary life safety code requirements and improvements that will need to be provided for permit issuance and advice on how to discuss and ask questions of permitting staff without the risk of Code Enforcement action. The information guide will also explain how the City's ADU regulations have created an easier path towards compliance whereas previously not feasible. Part 2 (Incentives) of the program will provide property owners incentives, such as fee waivers, courtesy inspections, or grants, to encourage property owners to seek permits to legalize units and make them safe for habitation. Timeframe: Develop Amnesty Program within 24 months of Housing Element adoption, Target 10 Households annually to participate in the program. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 1 K: Inclusionary Housing Policy The City has a substantial RHNA obligation of affordable housing that will be a challenge to accommodate due to prevailing project development costs include high land values. Therefore, the City must evaluate a variety of policy prescriptions that will encourage and facilitate the construction of below market -rate housing. The City will investigate inclusionary housing policy options as an additional means to provide a variety of housing types and opportunities for very low, low- and moderate -income households in Newport Beach. The City will assess and analyze a variety of inclusionary housing policy options, standards, requirements and regulations to determine the best course of action. Based upon this initial assessment, the City will determine the appropriateness and application of inclusionary policies, and Section 4: Housing Plan (September 2022 Final Housing Element) 4-11 17-97 City of Newport Beach 2021-2029 HOUSING ELEMENT adopt policies, programs or regulations that will produce housing opportunities affordable to very low, low and moderate -income households. The City has determined that a base inclusionary requirement of 15 percent for new residential development to be affordable to very low-, low-, and moderate -income households is appropriate as an interim measure prior to the adoption of a final inclusionary ordinance or policy. The final inclusionary policy shall address development of rental and for -sale housing affordable to very low, low- and moderate -income households, as well as the applicability of this requirement and its alternatives. Timeframe: Adopt interim inclusionary policy within 6 months of Housing Element adoption. Evaluate Inclusionary options and adopt an Ordinance within 36 months of Housing Element adoption. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Housing Goal #2 Quality residential development and preservation, conservation, and appropriate redevelopment of housing stock. Housing Policy 2.1: Support all reasonable efforts to preserve, maintain, and improve availability and quality of existing housing and residential neighborhoods, and ensure full utilization of existing City housing resources for as long into the future as physically and economically feasible. Implementation Action: Policy Action 2A: Neighborhood Preservation The City will continue to improve housing quality and prevent deterioration of existing neighborhoods by strictly enforcing applicable Building Code, Fire Code, and Zoning Code regulations and abating Code violations and nuisances. The City of Newport Beach will continue to prepare a quarterly report on code enforcement activities in the 61" Cycle. Timeframe: Ongoing, Semi -Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 2B: Residential Building Record Program The City will maintain and continue to implement the Residential Building Records (RBR) program to reduce and prevent violations of building and zoning ordinances by providing a report to all parties involved in a transaction of sale of residential properties, and providing an opportunity to inspect properties to identify potentially hazardous conditions, resources permitting. The report provides information as to permitted and illegal uses/construction, and verification that buildings meet applicable zoning and building requirements. The City will continue to implement this program as RBR applications are submitted to the City. The City will continue to promote the availability of program to the public and local real estate professionals by maintaining information on its website and developing brochures and other promotional materials. Section 4: Housing Plan (September 2022 Final Housing Element) 4-12 17-98 City of Newport Beach 2021-2029 HOUSING ELEMENT Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 2C: Preservation of At -Risk Units There are a number of assisted housing developments or individual housing units within development that may be at -risk of converting to market rate during the 10-year period from the beginning of the 2021- 2029 Housing Element planning period. "Assisted housing developments" shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Government Code Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in -lieu fees. "Assisted housing developments" shall also include multifamily rental units that were developed pursuant to a local housing program or used to qualify for a density bonus pursuant to Government Code Section 65916. During the planning period, preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs including those listed above, except where a City demonstrates it has other urgent needs for which alternative funding sources are not available. The city will include strategies that involve local regulation and technical assistance, including maintaining registration as a Qualified Preservation Entity with HCD to ensure that the City will receive notices from all owners intending to opt out of their Section 8 contracts and/or prepay their HUD -insured mortgages. The City will proactively consult with the property owners identified in Table 3-31 of the Housing Element and potential preservation organizations regarding use of all federal, state and local resources to be used for maintaining affordable housing opportunities in those developments listed in Table 3-31 of Chapter 3 of this Housing Element. The City will provide technical assistance to non-profit entities for acquisition of the units to ensure long-term affordability, upon receiving notice that a property owner of an existing affordable housing development intends to convert the units to a market -rate development. The City will provide specific assistance to owners of these units by making initial contact within 9 months of Housing Element adoption to identify and coordinate assistance. The City will provide in -kind assistance, through information dissemination, to assist in partnering local assisted unit owners with agencies or entities that can provide financial or other assistance to preserve the affordability of these units. The Citywill maintain registration as a Qualified Preservation entitywith HCD and continuously implement the above policy as notices are received from property owners in the 61" Cycle. Timeframe: Ongoing, as necessary to preserve affordability. Initial contact with owners within 9 months of Housing Element adoption. Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund, State, Federal funding Section 4: Housing Plan (September 2022 Final Housing Element) 4-13 17-99 City of Newport Beach 2021-2029 HOUSING ELEMENT Housing Goal #3 A variety of housing types, designs, and opportunities for all social and economic segments. Housing Policy 3.1: Encourage preservation of existing and provision of new housing affordable to extremely low-, very low-, low-, and moderate -income households. Housing Policy 3.2: Encourage housing developments to offer a wide spectrum of housing choices, designs, and configurations. Implementation Actions Policy Action 3A: Objective Design Standards State Housing law includes various exemptions for projects with an affordable housing component, which limits the City's ability to apply discretionary design review requirements to certain residential projects. State Housing law specifies having objective design standards available to apply to housing projects where the City's discretion over design review is otherwise preempted per State law. The City of Newport Beach will review existing entitlement processes for housing development and will eliminate discretionary review for all housing development proposals that include a minimum affordable housing component. The City will also review the appropriateness of its current development standards to ensure that it reasonably accommodates the type and density of housing it is intended to support. The City will also amend existing development standards to replace or remove all subjective standards for projects with a minimum affordable housing component with objective standards that do not impede the type and density of housing it is intended to allow. Timeframe: Adopt standards within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3B: SB 35 Streamlining The City will establish written procedures to comply with California Government Code Section 65913.4 and publish those procedures for the public, as appropriate, to comply with the requirements of SB 35, Chapter 366 Statues 2017. These requirements apply at any point in time when the City does not meet the State mandated requirements, based upon the SB 35 Statewide Determination Summary Report for Housing Element progress and reporting on Regional Housing Needs Assessment (RHNA)., the City will process development projects with at least 50 percent affordable units through a streamlined permit process (i.e., 90 days for projects with up to 150 units). All projects covered by SB 35 are still subject to the objective development standards of the Newport Beach Municipal Code that includes the Building and Fire Codes. However, qualifying projects cannot be subject to discretionary review or public hearings; and in many cases the City cannot require parking. Reduced parking requirements would be established consistent with the requirements of SB 35 for qualified streamlining projects. Section 4: Housing Plan (September 2022 Final Housing Element) 4-14 17-100 City of Newport Beach 2021-2029 HOUSING ELEMENT The City currently has consistently exceeded RHNA performance goals during the 5t" Cycle. The City's status regarding SB 35 could change during the 6t" Cycle dependent upon RHNA progress throughout the 2021-2029 Planning Period. Timeframe: Adopt procedures within first year of the planning period Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3C: Preservation of Rental Opportunities The City will continue to maintain rental housing opportunities by restricting conversions of rental units to condominiums in a development containing 15 or more units unless the rental housing vacancy rate in Newport Beach is 5 percent or higher, and unless the property owner complies with condominium conversion regulations contained in Newport Beach Municipal Code Chapter 19.64. The City's intent is to ensure no net loss in rental opportunities in existing sites that contain 15 or more units and that the conversion of rentals do not create an imbalance of opportunity in the community. The City will conduct an annual vacancy rate survey to support the implementation of this policy. To protect lower and moderate -income rental housing, the City shall amend the Municipal Code to restrict the demolition of lower and moderate -income rental housing on sites that provide more than 15 units unless the units maintain the same income categories after demolition. Timeframe: Ongoing. Update Municipal Code within 24 months of Housing Element adoption. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3D: Priority of Affordable Housing The City will continue to take all feasible actions, through use of development agreements, expedited development review, and expedited processing of grading, building and other development permits, to ensure expedient construction and occupancy for projects approved with lower- and moderate -income housing requirements. The City will continue to implement this program as affordable housing projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3E: Mortgage Revenue Bonds The City will continue to participate with the County of Orange in the issuance of tax-exempt mortgage revenue bonds to facilitate and assist in financing, development, and construction of housing affordable to low and moderate -income households. The City will continue to implement program per project submittal as the developer applies for these bonds. The City will adjust this policy to include the promotion of available bonds to the public and developers in the 6t" Cycle. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Section 4: Housing Plan (September 2022 Final Housing Element) 4-15 17-101 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: Policy Action 3F. Annual Reporting Program The City will conduct an annual compliance -monitoring program for units required to be occupied by very low-, low-, and moderate -income households. The City of Newport will complete review by the last quarter of each year and report within the annual General Plan Status Report including the Housing Element Report provided to OPR and HCD by April 1st each year. Timeframe: Ongoing. Annual Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 3G: Entitlement Assistance The City will provide entitlement assistance, expedited entitlement processing, and waive application processing fees for developments in which 5 percent of units are affordable to extremely low-income households. To be eligible for a fee waiver, the units shall be subject to an affordability covenant for a minimum duration of 55 years. The affordable units provided shall be granted a waiver of park in -lieu fees (if applicable) and City traffic fair share fees. The City will continue to implement this program as affordable housing projects are submitted to the City in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3H: Prioritization of Affordable Housing Funds The City will give highest priority for use of Affordable Housing Fund monies to affordable housing developments providing units affordable to extremely -low-income households and senior households. The City will continue to implement this program as affordable housing projects are submitted to the City. The City shall establish objective priorities to allow for the ranking/scoring of future affordable housing projects so that expenditures that most meet the City's objectives are prioritized for funding. Timeframe: Ongoing. Establish objective priorities with project ranking/scoring within 16 months of Housing Element adoption. Responsible Agency: City of Newport Beach Community Development Funding Sources: Affordable Housing Fund, based upon available funds Policy Action 31: Public Information About Affordable Housing The City will continue to maintain a brochure of incentives offered by the City for the development of affordable housing including fee waivers, expedited processing, density bonuses, and other incentives. A copy of this brochure shall be located at the Planning Counter, on the City's website and shall also be provided to potential developers. The City will update the brochure as needed to provide updated information regarding incentives including updated fees and a reference to the most up to date Site Analysis and Inventory. Section 4: Housing Plan (September 2022 Final Housing Element) 4-16 17-102 City of Newport Beach 2021-2029 HOUSING ELEMENT Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action V: Priority in Kind Assistance for Affordability The City shall provide more assistance for projects that provide a higher number of affordable units or a greater level of affordability. At least 15 percent of units shall be affordable when assistance is provided from Community Development Block Grant (CDBG) funds or the City's Affordable Housing Fund. The City will continue to implement the program as housing projects are submitted to the City in the 61h Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3K: Coastal Zone Development Affordability The City shall follow Government Code Section 65590 and implement Municipal Code Titles 20.34 and 2134 "Conversion or Demolition of Affordable Housing" for new developments proposed in the Coastal Zone areas of the City. All required affordable units shall have restrictions to maintain their affordability for a minimum of 55 years. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3L: Proactive Education and Outreach to Prospective Developers The City will continue to advise and educate existing landowners and prospective developers of affordable housing development opportunities available within Banning Ranch, the Airport Area, West Newport Mesa, Dove r-Westcl iff, Newport Center, Mariners' Mile, and Balboa Peninsula areas. The City of Newport Beach will continue to implement its program as prospective developers contact the City seeking development information. The City will maintain designated staff persons that can be contacted to provide housing opportunity information and incentives for development of affordable housing during the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 3M: Regional Coordination of Housing Issues The City will continue to participate in other programs that assist production of housing. The City will attend quarterly OCHA (Cities Advisory Committee) meetings to keep up to date on rehabilitation programs offered by the County in order to continuously inform homeowners and rental property owners within the City of opportunities and to encourage preservation of existing housing stock in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (September 2022 Final Housing Element) 4-17 17-103 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: Policy Action 3N: Housing Impact Studies The City will continue to study housing impacts of proposed larger -scale, significant commercial/industrial projects during the development review process. Prior to project approval, a housing impact assessment shall be developed by the City with the active involvement of the developer. Such assessment shall indicate the magnitude of jobs to be created by the project, where housing opportunities are expected to be available, and what measures (public and private) are requisite, if any, to ensure an adequate supply of housing for the projected labor force of the project and any restrictions on development due to the City "Charter Section 423". The City will continue to implement such program as major commercial/industrial projects are submitted to the City in the 61" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 30: Single Resident Occupancies (SROs) The City will continue to study housing impacts of proposed larger -scale, significant commercial/industrial Use State and federal funding to continue to provide assistance and make provisions for development of single -room occupancy (SRO) housing and other forms of housing for people experiencing homelessness in the City. The City will ensure that such housing options include reasonable accommodations and supportive services for people with disabilities. The City will seek to encourage the development of at least one SRO development within the Planning Period. Timeframe: Ongoing, with targeted outreach on an annual basis. Responsible Agency: City of Newport Beach Community Development Funding Sources:: To be determined as State and federal funding sources become available. Policy Action 3P: Residential Care Facilities The City will review and amend the permitting procedures, application requirements, and development standards applicable to residential care facilities for persons of 7 or more to ensure consistency with state and federal laws to promote objectivity and greater approval certainty. Timeframe: By October 2022 and amend the Zoning Code by April 2023 if needed. Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund. Section 4: Housing Plan (September 2022 Final Housing Element) 4-18 17-104 City of Newport Beach 2021-2029 HOUSING ELEMENT 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 Policy 4.1: Mitigate potential governmental constraints to housing production and affordability by increasing the City's role in facilitating construction of market -rate housing and affordable housing for all income groups. Housing Policy 4.2: Enable construction of new housing units sufficient to meet City quantified goals by identifying adequate sites for their construction. mplementation Actions Policy Action 4A: Affirmatively Furthering Fair Housing Pursuant to AB 686, Chapter 958, Statutes 2018, the City will affirmatively further fair housing by taking meaningful actions in addition to resisting discrimination, that overcomes patterns of segregation and fosters inclusive communities free from barriers that restrict access to opportunity based on protected classes, as defined by State law. To accomplish this, the City or designated contracted organization will collaborate with local and regional organizations to review any housing discrimination complaints, assist in dispute resolution, and, where necessary, refer complainants to appropriate state or federal agencies for further investigation, action, and resolution. Section 3 of this Housing Element contains an analysis of fair housing activities in Newport Beach and the Orange County region. The analysis found that: • The City does not have any racial or ethnic groups that score higher than 60 on the dissimilarity index, indicating that while the City of Newport Beach has no racial or ethnic populations with a dissimilarity index above 60, all populations (with the exception of the Hispanic/Latino population) have a score above 30, meaning all groups experience moderate segregation from the White population. • The City does not have any racially or ethnically concentrated census tracts (R/ECAPs) as identified by HUD. This indicates that there are no census tracts within Newport Beach with a non -white population of 50 percent or more or any census tracts that have a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan/ micropolitan area. However, one R/ECAP was identified in the neighboring City of Irvine, near the University of California Irvine. This will be considered in the housing plan as students within the R/ECAP may look for housing in Newport Beach. Section 4: Housing Plan (September 2022 Final Housing Element) 4-19 17-105 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: • The UC Davis Regional Opportunity Index shows that most residents within Newport Beach have a high level of access to opportunity throughout the majority of the City, with only two census tracts showing low access to opportunity. • The analysis of the TCAC/HCD opportunity Area Maps shows that most census tracts in Newport Beach are classified with the "Moderate Resource" "High Resource" or "Highest Resource" designation. This indicates that these census tracts are within the top 40 percent in the region in terms of areas that lower -income residents may thrive if given the opportunity to live there. All but two census tracts within Newport Beach register within the top 20 percent in the index. One census tract registered as a "Low Resource" area, citing high economic opportunity and low educational opportunity. • The Opportunity Indices identify overall high access to quality resources including economic and job proximity, educational access, and transportation access. However, there is a low health index, indicating increased pollution and low environmental quality across all racial/ethnic groups in the City. The opportunity indices identify low affordable transportation options to both the Asian or Pacific Islander (Non -Hispanic) and Native American (Non -Hispanic). Additionally, the index identified that households who earn below the poverty rate in Newport Beach have lower levels of opportunity access across all indicators as well as race and ethnicities. • Racially Concentrated Areas of Affluence (RCAA) are characterized by census tract areas in which 80 percent or more of the population is White and that have a median income of at least $125,000. There are 12 census tracts within the City that are identified as RCAAs. • Newport Beach and the State have the same rate of home ownership, but residents of Newport Beach experience higher rates of cost burden. Housing adequacy and affordability are similar in both the City and State, where California has a slightly higher rate of affordability. • Newport Beach scored a 3.9 AIITransit performance score, illustrating a low combination of trips per week and number of jobs accessible that enable a moderate number of people to take transit to work. In total, 138,164 jobs are accessible within a 30-minute trip from Newport Beach, howeverjust 0.55 percent of commuters use transit. By comparison, Newport Beach scored lower than neighboring jurisdictions of Costa Mesa (5.4), Huntington Beach (4.4), and Irvine (3.6), however slightly higher than Laguna Beach (3.8). Overall, the City of Newport Beach has a lower AIITransit score than the County of Orange (3.9) in Newport Beach and 4.2 in the County). During the planning period, the City will take the following explicit actions to address and implement Fair Housing issues and to affirmatively further fair housing in the community: Section 4: Housing Plan (September 2022 Final Housing Element) 4-20 17-106 City of Newport Beach 2021-2029 HOUSING ELEMENT r Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue Anti- The City does not have any Target Airport Area, To help address this issue, the City will Low Timeline(s): Displacement racially or ethnically adjacent to UC take the following actions: / Housing concentrated census tracts Irvine By December 2024, the City will aim to Mobility (R/ECAPs) as identified by 1. Address potential R/ECAP adopt amendments to the General Plan HUD. This indicates that there and Environmental Justice to include environmental justice policies issues by adopting an that promote a reduction in poverty rate, are no census tracts within promote diversity, and require Newport Beach with a non amendment to include consideration of environmental justice white population of 50 policies addressing principles in City decision -making. percent or more or any environmental justice in the census tracts that have a General Plan; and Evaluative Metric(s): poverty rate that exceeds 2. Facilitate an annual meeting 1. The City will strive to meet 40 percent or is three or more annually with representatives times the average tract with representatives from from the City of Irvine and UC poverty rate for the the City of Irvine and UC Irvine to review whether the metropolitan/ micropolitan Irvine or other major R/ECAP is contributing to any area. However, one R/ECAP employers to address any fair housing issues. If was identified in the local affects these R/ECAP determined to be a contributor, neighboring City of Irvine, areas may have on the City will coordinate near the University of opportunity for housing in additional actions that will seek to reduce or eliminate the California Irvine. This will be Newport Beach. R/ECAP identified adjacent to UC considered in the housing Irvine. plan as students within the R/ECAP may look for housing in Newport Beach. Section 4: Housing Plan (September 2022 Final Housing Element) 4-21 17-107 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue Access to The UC Davis Regional Target Two census To help address this issue, the City will High Timeline(s): Opportunity / Opportunity Index shows that tracts with low take the following actions: Place Based most residents within access to By June 2023, the City will aim to adopt Strategies Newport Beach have a high opportunity. 1. Adopt and codify accessory revised ADU regulations. By December level of access to opportunity In the dwelling unit (ADU) 2023, the City will conduct two regulations that facilitate community workshops that are focused throughout the majority of g J y following g within the geographic target. the City, with portions of only areas: and incentivize ADU two census tracts showing development beyond State Evaluative Metric(s): low access to opportunity. 1. In the law minimum requirements, West create new housing 1. The City will seek to produce 20 Newport development incentives and to 30 ADUs per calendar year Focus fee waivers, and that provide within higher resource areas; Area for access into areas of high and adjacent opportunity that contribute 2. The City will seek to make to Hoag to the following community contact with at least 50% of the Hospital development actions: households in the affected 2. In the o Increase residential census tracts. Airport development Focus opportunities; Area, o Maximize infill adjacent development in to John "built -out" Wayne neighborhoods, and Airport o Increase affordable housing options. 2. Target outreach to the two census tracts with low access to opportunity; and Section 4: Housing Plan (September 2022 Final Housing Element) 4-22 17-108 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue Target 3. Conduct two community workshops that will accomplish the following: o Identify local issues that are influencing low access to opportunity; o Identify potential solutions to address those local issues; o Identify opportunities to increase the housing supply for all income levels; and o Establish economic development priorities to help stimulate the creation of jobs and access to services. Access to The analysis of the TCAC/HCD Two census To help address this issue, the City will Timeline(s): Opportunity / opportunity Area Maps shows tracts with low take the following actions: Place Based that most census tracts in access to Starting 2023, the City will annually Strategies Newport Beach are classified opportunity • Adopt an Inclusionary review and update its housing -related "Moderate Housing Ordinance (See webpages. Within 6 months of Housing with the are in the Policy Action 1K) to ensure Element adoption, the City will adopt an Resource" "High Resource" or following lower income units are interim inclusionary housing policy. "Highest Resource" areas: developed in conjunction Within 36 months of Housing Element Section 4: Housing Plan (September 2022 Final Housing Element) 4-23 17-109 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue designation. This indicates Target with new market -rate adoption, the City will adopt an that these census tracts are 1. In the development equitably inclusionary housing ordinance. within the top 40 percent in West throughout the City and the region in terms of areas Newport higher resource census Evaluative Metric(s): tracts; that lower -income residents Focus 1. By December 2026, the City will may thrive if given the Area • Target outreach to two low- aspire to have approved opportunity to live there. All adjacent access census tracts via between 750 and 1,000 but two census tracts within to Hoag mailers or by other means affordable housing units or to Newport Beach register Hospital including social media to have collected a commensurate within the top 20 percent in 2. In the provide website information in -lieu affordable housing fee for the index. One census tract Airport about local entrepreneurship use to subsidize future and educational affordable housing projects; registered as a "Low Focus opportunities; Resource" area, citing high Area, 2. The City will improve upon its economic opportunity and adjacent • Maintain and promote the existing Business Ambassador low educational opportunity. to John City's Business Ambassador Program and will seek to assist at Wayne Program to local residents as least 35-45 persons annually Airport a way to support local with establishing their own businesses and business opportunities; and entrepreneurship; and 3. The Business Ambassador • Continually update the City's Program will be advertised housing related webpages to within the lower -opportunity ensure current available census tracts with a goal of data. reaching at least 50% of the households. Section 4: Housing Plan (September 2022 Final Housing Element) 4-24 17-110 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue Housing Availability of financing Target Citywide To help address this issue, the City will Medium Timeline(s): Mobility affects a person's ability to take the following actions: purchase or improve a home. By June 2023, the City will provide Under the Home Mortgage 1. Disseminate online information to the community about information to the home loans and the loan process. By Disclosure Act (HMDA), community about home December 2023 , the City will conduct its lending institutions are loans and the loan first biannual affordable housing required to disclose application and approval workshop with affordable housing information on the process; lenders and local affordable housing disposition of loan advocates. applications and the income, 2. Conduct biannually gender, and race of loan affordable housing Evaluative Metric(s): workshops with invited applicants. The primary guests from the local lending 1. The City will seek to reach concern in a review of lending industry and local affordable between 10,000 and 15,000 activity is to determine housing advocates; and households with loan whether home financing is information and will further seek available to residents of a 3. Conduct annual report of to reduce any occurrence of loan community. loan dispositions in the City disposition discrimination, if and identify any trends or found to be prevalent. According to available data, issues. Provide findings to applicants in the 120 percent local lenders and financial institutions. median -income or more had the highest rates of loans approved. Of that income category, applicants who reported White had the highest percentage of approval and the number of applications. Applicants in the less than 50 percent of the MSA/MD median -income Section 4: Housing Plan (September 2022 Final Housing Element) 4-25 17-111 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue categories were showed Target higher percentages of denied loans than loans originated. According to the data, applicants who reported white were, on average, more likely to be approved for a loan than another race or ethnicity. Access to The majority of the City of Citywide w/ To help address this issue, the City will Timeline(s): Opportunity Newport Beach is classified as focus on two take the following actions: a high opportunity zone. This census tracts Within the first half of the planning indicates a high level of in the • Conduct two public workshops period, the City will conduct two public for residents of the two census workshops on entrepreneurship and job relative opportunities that following tracts identifying as lower training. g• people can achieve as well as locations: opportunity; a high level of relative Evaluative Metric(s): opportunities that Newport 1. In the . Collaborate with the Chamber of Beach provides. West Commerce to disseminate 1. The City will improve upon its Newport economic opportunity through existing Business Ambassador While most of the census Focus entrepreneurship, job training on Program and will seek to assist at the City's website; least 35-45 persons annually with tracts within the City are Area establishing their own business areas of high opportunity, adjacent • Maintain and promote the City's opportunities; and there are two census tracts to Hoag Business Ambassador Program to identifying as low Hospital local residents as a way to 2. The Business Ambassador Program opportunity. Together these 2. In the support local businesses and will advertised within the lower - areas contain 86 sites which Airport entrepreneurship; and unity census tracts with a goal opportunity Section 4: Housing Plan (September 2022 Final Housing Element) 4-26 17-112 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue accommodate 1,941 potential Target Focus of reaching at least 50% of affected units intended to meet the Area, • Provide direct contact to households. City's RHNA for lower -income adjacent residents within the lower units (shown in Section 3: to John opportunity census tracts via mailers or other means including Housing Resources and Wayne social media to invite them to outlined in Appendix B). Airport workshop. The data for both regions with lower opportunity show very low housing access, but conversely show high civic life, health, transportation, economic and educational access.. Therefore, the consideration and identification of these areas for housing, affordable to low and very low-income households will address the deficiency to housing access in these otherwise high opportunity and high resources areas. Section 4: Housing Plan (September 2022 Final Housing Element) 4-27 17-113 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue Access to Access to education is Target Citywide To further improve access to High Timeline(s): Opportunity generally above average in education, the City will take the Newport Beach. Additionally, following action: Beginning 2023, the City will conduct access to quality education meetings annually with local educational system is high among all 1. Conduct an annual meeting institutions. racial/ethnic groups (each with local educational institutions to discuss Evaluative Metric(s): group has an opportunity housing needs related to index score above 80). education 1. The City will leverage the input from the annual meetings to identify up to two additional City policies or actions that will help enhance access to education. Place Based The City of Newport Beach Citywide, with To help improve access to transit, the Medium Timeline(s): Strategies / has a low transit performance focus on the City will take the following actions: Access to score overall. The City has Airport Area Starting with the adoption of the FY23-24 Opportunity identified low- and very low- environs. 1. In adopting the annual Capital Improvement Program , the City Capital Improvements will annually consider projects that income housing opportunity Program (CIP), the City will enhance access to transit in the targeted sites in the Airport Area seek and consider projects areas of need. By December 2024, the Environs in the north, the that will help improve access City will consider updating the Land Use West Newport Mesa Area in to transit near housing Element to include policies encouraging the west, and the Newport opportunity sites; denser residential near transit stops. Center Area in the central area of the City. While these 2. Maintain a proactive working Evaluative Metric(s): partnership with the Orange three areas of the City have County Transportation 1. The City will seek improve or trend low transit performance Authority (OCTA) to continue the City's AIITransit Score from 3.9 to scores, they have high to plan and coordinate public 5.0 or greater by the end of the connectivity scores compared transit routes to serve Housing Elementplanning period. to other areas throughout the existing community facilities City. Households within these and future development. Section 4: Housing Plan (September 2022 Final Housing Element) 4-28 17-114 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue areas have better access to Target Continue to provide local jobs and key destinations input on the Long -Range through transit than those Transportation Plan (LRTP); located elsewhere in the City. and The majority of the low- and 3. With the Land Use Element very low-income sites were Update, the City will consider strategically located within policies that would the Airport Area Environs, encourage denser housing West Newport Mesa Area, projects closer to transit and the Newport Center Area stops consistent with the to take advantage of the housing opportunity sites identified in Appendix B. increased transportation assets within these areas. Place Based The City of Newport Beach Citywide To help address this issue, the City will Medium Timeline(s): Strategies / has very high comparative take the following actions: Displacement rental and sales prices. By December 2023, the City will revamp The cost of housing limits 1. Continue to provide quarterly and provide updated information on the upward mobility and the costs and virtual training to website related to fair housing. of upkeep, repairs or landlords and tenants on fair rehabilitation, housing requirements Within 6 months of Housing Element especially for older housing including allowable rent adoption, the City will adopt an interim units, may be prohibitive for increases, source of income inclusionary housing policy. some segments of the discrimination, and benefits population. of marketing housing units Within 36 months of Housing Element for vouchers to expand the adoption, the City will adopt an locations of registered units inclusionary housing ordinance. in the City. Provide update information on the City's Evaluative Metric(s): website; Section 4: Housing Plan (September 2022 Final Housing Element) 4-29 17-115 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue Target 2. Encourage development of 1. Ensure the provision of quarterly fair ADUs in high opportunity housing educational workshops areas through targeted public conducted by a qualified fair housing outreach, user-friendly service provider; websites, pre -approved standard plans, fee waivers, and priority processing; and 2. The City will seek to assist at least 5 households annually through rehab 3. Incentivize development of assistance. The City will seek to affordable housing units abate 75% of major deferred through inclusionary housing maintenance incidents during the policies (Policy 1K). planning period; and 3. The City will seek to produce 20 to 30 ADUs per calendar year within higher resource areas. Access to There are approximately 12 Citywide, To help address this issue, the City will Medium Timeline(s): Opportunity census tracts that are predominately take the following actions: considered racially in the east and By June 2024, the City will conduct a concentrated areas of along the 1. Conduct summary review of summary review of RCAA census tracts. RCAA census tracts to identify By June 2025, the City will use findings affluence (RCAA) in the City. southern and potential redlining; and from the study to develop potential western policies. The RCAA areas are clustered boundaries of 2. Use findings from redlining throughout the City the City study to develop potential Evaluative Metric(s): predominately in the east and ggreenlining policies that can along the southern and be employed to benefit RCAA 1. The City will seek to reduce the western boundaries of the areas. incidents of unlawful redlining (if found) in these RCAA by between 35- City. The concentrations of 50% during the planning period. lower income households located in the northern, Section 4: Housing Plan (September 2022 Final Housing Element) 4-30 17-116 City of Newport Beach 2021-2029 HOUSING ELEMENT Identified Fair Local Contributing Factors Table Geographic 4-1: Fair Housing Actions Housing Issue western, and central areas of Target the City are in high income areas surrounded by RCAAs. The location of these area provides affordable housing opportunities within areas with high access to resources. Section 4: Housing Plan (September 2022 Final Housing Element) 4-31 17-117 City of Newport Beach 2021-2029 HOUSING ELEMENT k1- The City will maintain compliance with Fair Housing Laws and Regulations. The City will annually review and, if necessary, amend its Municipal Code to comply with State Housing Laws and Fair Housing Laws and Regulations. Timeframe: Review annually, amend actions and modify Municipal Code as necessary to continue to affirmatively further fair housing and comply with State Housing Laws and Fair Housing Laws and Regulations. Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4B: Streamlined Project Review The City will provide a streamlined "fast -track" development review process for proposed affordable housing developments. The City of Newport will continue to implement this program as affordable housing projects are submitted to the City in the 61h Cycle. Timeframe: Evaluate program features within 24 months, Adopt updated procedures within 36 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4C: Density Bonus and Incentives for Affordable Housing The City will update its Density Bonus Ordinance (Newport Beach Municipal Code Chapter 20.32) to be consistent with State Law, as amended. Additionally, the City shall either grant a density bonus as required by state law if requested, or provide other incentives of equivalent financial value when a residential developer agrees to construct housing for persons and families of very low, low, and moderate -income above mandated requirements. The City will continue to implement provisions of Chapter 20.32, as amended (Density Bonus) of the Zoning Code as housing projects are submitted to the City during the 6th Cycle. The City will further encourage affordable housing and the potential use of density bonus statutes to accommodate additional affordable units. Timeframe: Update to Newport Beach Municipal Code Chapter 20.32 within 12 months of the adoption of this Housing Element and implement future updates to maintain consistency with applicable State law on an ongoing basis. Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4D: List of Pre -Approved Development Incentives The City will develop a pre -approved list of incentives and qualifications for such incentives to promote the development of affordable housing. Such incentives could include the waiver of application and development fees or modification to development standards (e.g., setbacks, lot coverage, etc.). The City will continue to work with the Affordable Housing Task Force to develop the list within the 6th Cycle. Timeframe: Evaluate program features within 24 months, Adopt procedures within 36 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (September 2022 Final Housing Element) 4-32 17-118 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: Policy Action 4E: Airport Area Policy Exceptions for Affordable Housing The City recognizes that General Plan Policy LU6.15.6 may result in a potential constraint to the development of affordable housing in the Airport Area, and as a result, the City shall maintain an exception to the minimum 10-acre village requirement for projects that include a minimum of 30 percent of the units affordable to lower -income households. It is recognized that allowing a smaller scale development within an established commercial and industrial area may result in land use compatibility problems and result in a residential development that does not provide sufficient amenities (i.e., parks) and/or necessary improvements (i.e., pedestrian walkways). Therefore, it is imperative that the exception includes provisions for adequate amenities, design considerations for the future integration into a larger residential village, and a requirement to ensure collaboration with future developers in the area. The City of Newport Beach will maintain the exception and continue to implement this program as projects are submitted to the City in the 6t" Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4F. Encourage Development of Opportunity Sites The City will continue to encourage and facilitate residential and/or mixed -use development on sites listed in Appendix B by providing technical assistance to interested developers with site identification and entitlement processing. The City will continue to support developers funding applications from other agencies and programs. The City shall post the Sites Inventory, as showing in Appendix B on the City's webpage and produce marketing materials for residential and mixed -use opportunity sites, and it will equally encourage and market the sites for both for -sale development and rental development. The City shall educate developers of the benefits of density bonuses and related incentives, identify potential funding opportunities, offer expedited entitlement processing, and offer fee waivers and/or deferrals to encourage the development of affordable housing within residential and mixed -use developments. The City will continuously implement this program as housing projects are submitted to the City. Review and update as necessary the Site Inventory and provide information to interested developers. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 4G: Annual RHNA Sites Inventory Monitoring The City will monitor and evaluate the development of vacant and underdeveloped parcels on an annual basis and report the success of strategies to encourage residential development in its Annual Progress Reports required pursuant to Government Code 65400. The City of Newport will respond to market conditions and will revise or add additional sites where appropriate or add additional incentives, if identified strategies are not successful in generating development interest. The City will include the report in its annual General Plan Status Report including Housing Element Report to OPR and HCD by April 1st each year. Section 4: Housing Plan (September 2022 Final Housing Element) 4-33 17-119 City of Newport Beach 2021-2029 HOUSING ELEMENT Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund - - ter_ -�,..; � ...�� • _ =: ,;- �'— Policy Action 4H: Review Mixed -Use Zones As part of the 2006 Comprehensive General Plan Update and 2010 Zoning Code Update, new mixed -use housing opportunity zones were created throughout the City as a strategy to enhance and revitalize underperforming and underutilized properties. These areas included the Airport Area, Dove r/Westcliff, Newport Center, Mariners Mile, and portions of the Balboa Peninsula. The Airport Area and Newport Center have proven the most successful with several approved and constructed mixed -use developments, such as Uptown Newport and Villas Fashion Island. The Balboa Peninsula has had some limited success while Dover/Westcliff and Mariners' Mile have not proven successful to -date. Despite the housing opportunity that was created in these areas, a majority of these sites remain underutilized with a single, non-residential use, such as retail or office. It is evident the City's existing development standards (e.g., setbacks, height, density, parking, dedications, etc.) related to mixed -use development may create constraints to the redevelopment of these properties. Therefore, to ensure that mixed -use opportunities are maximized, the City will review established mixed - use land use categories and corresponding zoning regulations in the City and recommend policy or code changes to the City Council that reduce regulatory barriers and incentivize mixed -use residential development. Timeframe: Complete the review and provide recommendations to the City Council within 12 months of Housing Element Adoption, and then complete a review annually thereafter. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 41: Establish Mixed -Use Resort Opportunities Mixed -use resorts are an established trend in the hospitality industry that incorporate hotel -branded residential units as an accessory use located within a resort hotel complex where residents enjoy access to the full range of services, facilities, and amenities provided by the hotel operator or brand. The residential use cannot exist without the hotel's services, facilities, and amenities. The hotel industry has been one of the hardest hit industries due to the COVID-19 pandemic and a full recovery of the industry is not anticipated for many years. Mixed -use resorts provide an opportunity to revitalize older or underperforming hotels and maintain their competitive standing by creating multiple revenue streams. Economies of scale created by shared facilities, amenities, and services add additional benefit to mixed - use resort developments. This cross pollination of business benefits both the hotel and the resident. It may also increase occupancy rates at the resort by creating increased synergy between uses and social gathering opportunities, boosting transient occupancy taxes while providing in -fill housing opportunities to partially assist the City in meeting its RHNA obligation in highly desirable and built -out areas. Section 4: Housing Plan (September 2022 Final Housing Element) 4-34 17-120 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: Incorporating residences also helps to off -set cyclical variations in hotel occupancy rates that can, for instance, result in seasonal decreases in revenue for the hotel's food and beverage offerings. Therefore, to further encourage and incentivize the development of mixed -use hotels, the City will consider policies, regulations and/or interpretations to: 1) clarify ambiguities in General Plan, Zoning Code, and/or Local Coastal Plan Program provisions to allow hotels and motels, located outside of the Coastal Commission Appeal Areas, to convert up to thirty percent (30%) of their permitted hotel and motel rooms into residential units on a one -for -one basis; 2) establish parking programs (e.g., shared parking) and/or reduced residential parking requirements that mitigate the need for any additional parking due to the conversion to residential use; 3) require a fiscal impact analysis to disclose and mitigate any reduction in transient occupancy tax due to a potential conversion; 4) increase the flexibility in use of transfer of development rights to allow for transfer of unbuilt residential units to hotel sites; 5) require property owners converting permitted hotel and motel rooms into residential units to mitigate impacts to on affordable housing production by either constructing affordable housing units within the development or through a contribution of in -lieu fees; 6) require mitigation of impacts to public access for potential conversions located within the Coastal Zone; and 7) require property owners converting permitted hotel and motel rooms into residential units to enter into a development agreement to ensure implementation of this policy at the project level. Timeframe: Establish policies, regulations and/or interpretations within 24 months of Housing Element Adoption. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 4J: Airport Environs Sub Area Environmental Constraints As discussed in Section 3 (Analysis of Exacerbating Current Conditions), the Airport Area is potentially exposed to heightened noise and a lower environmental score primarily due to the proximity of John Wayne Airport. The City will take the following actions to address potential environmental constraints in the Airport Environs Sub Area and ensure continued feasibility of sites, particularly for lower -income RHNA: • Require new residential development projects in the Airport Environs Sub Area provide noise studies and acoustical analyses to ensure designs include proper sound attenuation; • Require new residential development projects in the Airport Environs Sub Area to explore advanced air filtration systems for buildings to promote cleaner air; • Encourage on -site indoor amenities, such as fitness facilities or recreation and entertainment facilities; and • Continue to implement park dedication requirements consistent with the City's Park Dedication ordinance and Land Use Element Policy LU 6.15.13 (Neighborhood Parks — Standards) and Policy LU 6.15.16 (On -Site Recreation and Open Space) to ensure adequate recreational space to ensure at least 8-percent of a project's gross land area (exclusive of existing rights -of -way) of the first phase for any development in each neighborhood or % acre, whichever is greater, is developed as a neighborhood park, unless waived through Density Bonus Law. Section 4: Housing Plan (September 2022 Final Housing Element) 4-35 17-121 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 4K. West Newport Mesa Environmental Constraints As discussed in Section 3 (Analysis of Exacerbating Current Conditions), the West Newport Area is possibly exposed to heightened noise and pollutants largely due to a historic concentration of industrial type uses in the area. The City will take the following actions to address environmental constraints and ensure feasibility of sites, particularly for lower -income RHNA, in the West Newport Mesa Area: • Continue to coordinate with the South Coast Air Quality Management District (SCAQMD) and other responsible regulatory agencies to monitor compliance of industrial operators on an as - needed basis if any issues are identified; • Closely examine new light industrial uses that may locate in the area to avoid and mitigate potential environmental impacts to ensure the use/activity is compatible with nearby residential uses; • Provide a Code Enforcement Division response when complaints are made and track the nature of the complaints; review for trends or patterns that may require stronger enforcement actions to abate identified nuisances; • Require implementation of the West Newport Mesa Streetscape Master Plan for new private development projects and consider including improvement projects in the City's Capital Improvements Program (CIP); • Consider including residential -serving commercial as part of a zoning overlay (or similar rezoning mechanism) to support the future residents and to allow zoning flexibility beyond the underlying industrial zoning limits as part of the overall rezoning program within 36 months of Housing Element adoption; and • Pursue the siting and development of a community center to serve the West Newport area. If a potential site is identified, the Community Development Department will research the feasibility from a land use and entitlement perspective and will present findings during at least one study session with the City Council. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Policy Action 4L: Coyote Canyon Environmental Constraints As noted, the Coyote Canyon property is locates on a closed landfill or is proximate to the landfill. The bulk of conceptual residential development is sited away from former landfill areas; however, the City understands the importance of ensuring the health and safety of future residents and the surrounding neighborhood. The City will take the following actions to address environmental constraints on the Coyote Canyon landfill site: Section 4: Housing Plan (September 2022 Final Housing Element) 4-36 17-122 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: • During the Coyote Canyon project design and entitlement phase, work closely with developer(s) and property owner(s) to ensure all residential units and construction comply with the proper building and safety code requirements (e.g., ensure seismic standards are met, provide appropriately designed landfill gas mitigation); and • Implement the requirements of California Environmental Quality Act and other applicable environmental regulations. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Housing Goal #5 Preservation of the City's housing stock for extremely low-, very low-, low-, and moderate -income households. Housing Policy 5.1: Continue or undertake the following programs to mitigate potential loss of "at risk" units due to conversion to market -rate units. These efforts utilize existing City and local resources. They include efforts to secure additional resources from public and private sectors should they become available. Housing Policy 5.2: Improve energy efficiency of all housing unit types (including mobile homes). Implementation Actions Policy Action 5A: Preservation of Affordability Covenants The City will contact owners of 19 affordable units approaching the expiration of affordability covenants to obtain information regarding their plans for continuing affordability on their properties, inform them of financial resources available, and to encourage the extension of the affordability agreements for the developments listed beyond the years noted. The City will conduct an annual compliance monitoring program and a contact list shall be maintained on City website and updated annually during the 6 1 h Cycle. Timeframe: Ongoing, as necessary Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5B: Section 8 Participation The City shall maintain information on the City's website and prepare written communication for tenants and other interested parties about Orange County Housing Authority Section 8 opportunities and to assist tenants and prospective tenants acquire additional understanding of housing law and related policy issues. The City will attend quarterly OCHA (Cities Advisory Committee) that provide updates on OCHA Section 8 waiting list and housing opportunities to ensure information provided on City website is up to date. If Section 4: Housing Plan (September 2022 Final Housing Element) 4-37 17-123 City of Newport Beach 2021-2029 HOUSING ELEMENT Section 8 waiting list is opened, promote the availability of the program through marketing materials made available to the public. Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5C: Incentivize for Preserving of Affordability Covenants The City will investigate the potential for providing additional incentives or modify its current policy to incentivize property owners to maintain the affordability of units on their property during the 61h Cycle. Timeframe: Investigate and adopt incentives, as appropriate, within 24 months of Housing Element Adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5D: Mobile Home Park Conversions The City will continue to employ the provisions of NBMC Title 20 provision of the Mobile Home Park Overlay to maintain and protect mobile home parks in a stable environment with a desirable residential character. The City will review the existing provisions of the Mobile Home Park Overlay for consistency with State law in accordance with Government Code Section 65863.7. The City will continue to implement program as projects are submitted to the City. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5E: Orange County Housing Authority Advisory Committee The City of Newport Beach will continue to participate as a member of the Orange County Housing Authority (OCHA) Advisory Committee and work in cooperation with the OCHA to provide Section 8 Rental Housing Assistance to residents of the community. The City will continue to attend quarterly OCHA (Cities Advisory Committee). Continue to maintain information on City's website informing landlords of the program benefits of accepting Section 8 Certificate holders. The City will, in cooperation with the Housing Authority, recommend and request use of modified fair - market rent limits to increase the number of housing units within the City that will be eligible to participate in the Section 8 program. The Newport Beach Planning Division will prepare and implement a publicity program to educate and encourage landlords within the City to rent their units to Section 8 Certificate holders, and to make very low-income households aware of availability of the Section 8 Rental Housing Assistance Program. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (September 2022 Final Housing Element) 4-38 17-124 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: Policy Action 5F: Water Efficiency for Residential Projects The City will continue to implement and enforce the Water Efficient Landscape Ordinance and Landscape and Irrigation Design Standards in compliance with AB 1881 (Chapter 559 Statutes 2006). The ordinance establishes standards for planning, designing, installing, and maintaining and managing water -efficient landscapes in new construction and rehabilitated projects. The City will continue to implement such program as housing projects are submitted to the City. The City will also encourage the retrofit of existing residential developments to install water efficient appliances and fixtures. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 5G: Energy Efficiency in Residential Projects The City of Newport Beach will continue to require that any affordable housing developments that receive City assistance from Community Development Block Grant (CDBG) funds or from the City's Affordable Housing Fund shall be required, to the extent feasible, to include installation of energy efficient appliances and devices that will contribute to reduced housing costs for future occupants of the units. The City will continue to implement program as housing projects are awarded funds from the City in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund & Community Development Block Grant (CDBG) funds Housing Goal #6 Housing opportunities for special needs populations. Housing Policy 6.1: Encourage approval of housing opportunities for senior citizens and other special needs populations. Implementation Actionz. Policy Action 6A: Homeless Program Assistance In the 5th Cycle, the City was successful in providing funding to local organizations for providing shelter and services to the individuals experiencing homelessness. The City will continue to apply annually for United States Department of Urban Development Community Development Block Grant (CDBG) funds and allocate a portion of such funds to sub -recipients who provide shelter and other services for the homeless as well as submit Annual Action Plan to HUD in May of each year. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Section 4: Housing Plan (September 2022 Final Housing Element) 4-39 17-125 City of Newport Beach 2021-2029 HOUSING ELEMENT Ap_ Policy Action 6B: Repair Loans and Grant Programs for Seniors, Persons with Physical and Developmental Disabilities and Lower -Income Households The City, in partnership with OASIS Senior Center and Habitat for Humanity Orange County, has developed a Senior Home Repair Assistance Program (SHARP) that is aimed at assisting low-income seniors in need of critical home repair or modifications due to accessibility needs, safety concerns, health and well-being. The program is available to homeowners aged 60 and older who fall within the 50t" percentile of the Orange County median -income. Additionally, the City will continue to cooperate with the Orange County Housing Authority to pursue establishment of a Senior/Disabled or Limited Income Repair Loan and Grant Program to underwrite all or part of the cost of necessary housing modifications and repairs. Cooperation with the Orange County Housing Authority will include continuing City of Newport Beach participation in the Orange County Continuum of Care and continuing to provide CDBG funding. The City will continue to attend quarterly OCHA (Cities Advisory Committee) meetings to keep up to date on rehabilitation programs offered by the County in order to continuously inform homeowners and rental property owners within the City of opportunities and to encourage preservation of existing housing stock. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6C: Leverage CDGB and other Federal Formula Grant Funding The City receives annual allocation of CDBG and other Federal formula grant funds for use in a variety of housing -related activities. The City shall make every effort to leverage these annual funds from various agencies to further the City's housing goals. These may include, but are not limited to, the following State, Regional and private resources: State Resources • State Low -Income Housing Tax Credit Program • Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program • Multifamily Housing Program (MHP) • Housing Related Parks Grant • CalHFA Single and Multi -Family Program • Mental Health Service Act (MHSA) Funding Regional Resources • Orange County Housing & Finance Agency (OCHFA) Funding • Southern California Home Financing Authority (SCHFA) Funding • Orange County Continuum of Care Program • Orange County Housing Authority (OCHA) Programs Private Resources • Federal Home Loan Bank Affordable Housing Program (AHP) Section 4: Housing Plan (September 2022 Final Housing Element) 4-40 17-126 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: • Community Reinvestment Act Programs • United Way Funding • Private Contributions • Public -Private Partnerships In addition, the City of Newport Beach will continue to maintain a list of "Public and Private Resources Available for Housing and Community Development Activities" and maintain a list of resources on City website and update as necessary in the 61h Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6D: Child Daycare Facilities The City will continue to encourage the development of daycare centers as a component of new affordable housing developments and grant additional incentives in conjunction with the review and approval of density bonus projects pursuant to NBMC Chapter 20.32 (Density Bonus). Timeframe: Modify Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6E: Housing Assistance for Seniors The City of Newport Beach was successful in assisting the funding of senior housing services through the 5th Cycle. The City shall continue to encourage senior citizen independence through the promotion of housing and services related to in -home care, meal programs, and counseling, and maintain a senior center that affords seniors opportunities to live healthy, active, and productive lives in the City. The City will encourage and approve senior housing developments if there is a market demand provided the projects include appropriate support services including transportation. Projects that provide housing and services for low- and moderate -income seniors shall take precedence over market -rate senior housing. The City will continue to provide social services, support groups, health screenings, fitness classes, and educational services at the City's OASIS Senior Center or other facilities and offer affordable ride -share transportation and meal services to seniors who are unable to drive and/or prepare their own meals or dine out and have little assistance in obtaining adequate meals during the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6F. Emergency Shelters, Transitional and Supportive Housing To comply with State law, the City of Newport Beach will amend certain sections of its Municipal Code to address the following requirements: Section 4: Housing Plan (September 2022 Final Housing Element) 4-41 17-127 City of Newport Beach 2021-2029 HOUSING ELEMENT • Supportive Housing Streamlined Approvals (AB 2162) - To comply with AB 2162 (Chapter 753, Statues 2018), the City of Newport Beach will amend its Municipal Code to permit supportive housing as a use permitted by right in all zones where multiple family and mixed -use development is permitted. • Emergency and Transitional Housing Act of 2019 (AB 139) — The City will update its Municipal Code to comply with the requirements of Gov Code 65583 to address permit requirements, objective standards, analysis of annual and season needs, and parking and other applicable standards and provisions. • Amend the City of Newport Beach Municipal Code to comply with the definitions for "Supportive Housing," Supportive Services," "Target Population" consistent with applicable sections of the California Government Code. • Amend the Newport Beach Municipal Code to ensure Emergency Shelters, Transitional and Supportive Housing are permitted in appropriate zones, consistent with State law. Timeframe: Adopt Code Amendments within the first year of the planning period. Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 6G: Senior Housing Priority Program The City has an aging population that will require affordable housing options for its existing and future retirement age population. The City seeks to develop explore the feasibility and appropriateness of proactive policies and programs to address and prioritize the needs of its senior population. The City will strategically collaborate with the local senior community and organizations providing senior services to evaluate existing programs, policies, procedures and funding priorities. Upon completion of this initial assessment and determination if there are feasible and practical approaches, the City will develop a comprehensive prioritization program for Senior Housing. The prioritization program will establish the specific methodologies for priority ranking, criteria, scoring and related new policies, programs, regulations and incentives as appropriate. Timeframe: Study and evaluate existing policies within 24 months of Housing Element adoption. Establish formal policies, programs and regulations within 36 months of Housing Element adoption If deemed practical and feasible during initial study. Responsible Agency: City of Newport Beach Community Development Funding Source: General Fund Housing Goal #7 Equal housing opportunities in the City for all people. Housing Policy 7.1: Support fair and equal housing opportunities, and environmental justice considerations for all housing opportunities in the City. Section 4: Housing Plan (September 2022 Final Housing Element) 4-42 17-128 City of Newport Beach 2021-2029 HOUSING ELEMENT Implementation Actions Policy Action 7A: Supportive Housing / Low Barrier Navigation Centers State law has been updated to require approval 'by right' of supportive housing with up to 50 units and low barrier navigation centers that meet the requirements of State law. Low barrier navigation centers are generally defined as service -enriched shelters focused on the transition of persons into permanent housing. Low barrier navigation centers provide temporary living facilities will persons experiencing homelessness to income, public benefits, health services, shelter, and housing. To comply with State law, the City of Newport Beach will adopt policies, procedures, and regulations for processing this type of use to establish a non -discretionary local permit approval process that must be provided to accommodate supportive housing and lower barrier navigation centers per State law. In the interim, any submitted application for this use type will be processed in accordance with State law. The City will provide for annual monitoring of the effectiveness and appropriateness of existing adopted policies. Should any amendments be warranted to existing policies pursuant to State law, the City will modify its existing policies, as appropriate. Timeframe: Adopt Code Amendments within first year of the planning period. Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7B: Transitional and Supportive Housing In compliance with Senate Bill 2 (Chapter 364, Statutes 2017) and SB 745 Chapter 185, Statutes 2013 ) the City will ensure the Zoning Code is amended to encourage and facilitates emergency shelters and limits the denial of emergency shelters and transitional and supportive housing under the Housing Accountability Act. This Program would permit transitional and supportive housing by -right in all zones allowing residential uses, subject onlyto those regulations that apply to other residential uses of the same type in the same zone. In addition, the Zoning Code will be amended to define "supportive housing," "target population" and "transitional housing" pursuant to state law. The City will continue to monitor the inventory of sites appropriate to accommodate transitional and supportive housing and will work with the appropriate organizations to ensure the needs of homeless and extremely low-income residents are met. The City is committed to prioritizing funding and other available incentives for projects that provide housing for homeless and extremely low-income residents whenever possible. Timeframe: Adopt Code Amendments within 12 months of Housing Element adoption within the first year of the planning period. Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7C: Housing for Persons with Developmental Disabilities The housing needs of persons with developmental disabilities are typically not fully addressed by local zoning regulations. Persons with disabilities may require, in addition to basic affordability, slight modifications to existing units, and in some instances, a varying range of supportive housing facilities. To Section 4: Housing Plan (September 2022 Final Housing Element) 4-43 17-129 City of Newport Beach 2021-2029 HOUSING ELEMENT accommodate residents with developmental disabilities, the City will review and prioritize housing construction and rehabilitation including supportive services targeted for persons with developmental disabilities. Newport Beach will also explore the granting of regulatory incentives, such as expedited permit processing, and fee waivers and deferrals, to projects targeted for persons with developmental disabilities. To further facilitate the development of units to accommodate persons with developmental disabilities, the City will encourage development of projects targeted for special needs groups. As housing is developed or identified, Newport Beach will collaborate with the Regional Center of Orange County (RCOC) to implement an outreach program informing families within the City of housing and services available for persons with developmental disabilities. The City will provide information at City Hall and on the City's website. Timeframe: Adopt Code Amendments within 24 months of Housing Element adoption Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 7D: Fair Housing Services The City was successful in reaching out to the community about fair housing services during the 51h Cycle. The City of Newport Beach will continue to contract with an appropriate fair housing service agency for the provision of fair housing services for Newport Beach residents. The City will also work with the fair housing service agency to assist with the periodic update of the Analysis of Impediments to Fair Housing document required by HUD. The City will continue to provide a minimum of two public outreach and educational workshops a year, and distribute pamphlets containing information related to fair housing in the 6th Cycle. Timeframe: Ongoing Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Housing Goal #8 Effective and responsive housing programs and policies. Housing Policy 8.1: Review the Housing Element on a regular basis to determine appropriateness of goals, policies, programs, and progress of Housing Element implementation. Implementation Actions Policy Action 8A: Annual Reporting Program The City of Newport Beach shall report on the status of all housing programs as part of its annual General Plan Review and Annual Progress Report (APR). The Annual Progress Report discusses Housing Programs and is submitted to the California Department of Housing and Community Development in accordance with California state law. The City will continue to annually report its efforts within the annual General Plan Status Report including Housing Element Report provided to OPR and HCD by April 1st each year. Section 4: Housing Plan (September 2022 Final Housing Element) 4-44 17-130 City of Newport Beach 2021-2029 HOUSING ELEMENT .-1 Timeframe: Ongoing, Annual Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund Policy Action 8B: Water and Sewer Service Providers Pursuant to SB 1087, Chapter 727, Statues of 2005, the City of Newport Beach is required to deliver its adopted housing element and any amendments thereto to local water and sewer service providers. This legislation allows for coordination between the City and water and sewer providers when considering approval of new residential projects, to ensure that the providers have an opportunity to provide input on the Element. Additionally, review of the Housing Element ensures that priority for water and sewer services is granted to projects that include units affordable to lower -income households. The City will submit the adopted 61h Cycle Housing Element to local water and sewer providers for their review and input. Timeframe: Transmit document immediately upon adoption of future amendment Responsible Agency: City of Newport Beach Community Development Funding Sources: General Fund +ummary of Quantified Objectives The 2021-2029 Regional Housing Needs Assessment (RHNA) determined the City of Newport Beach had a construction need for 4,845 residential units between October 15, 2021 and October 15, 2029. The forecasted need by income group includes: • Very Low -Income (0-50% County MR); • Low -Income (51-80% County MFI); • Moderate -Income (81-120% County MFI); and, • Above Moderate -Income (>120% County MR) Additionally, the City has goals to rehabilitate and preserve its existing inventory of housing units. As required by State housing law, quantified objectives by income group for the 2021-2029 planning period are summarized in this section. The quantified objectives represent the target number of housing units that the City anticipates will be constructed, rehabilitated, or preserved over the 2021-2029 planning period. Section 4: Housing Plan (September 2022 Final Housing Element) 4-45 17-131 City of Newport Beach 2021-2029 HOUSING ELEMENT - - ter_ -�,..; � ...�� • _ =: Table 4-1: Quantified Objective Summary Quantified Objective Extremely Low Very Low Low Moderate Above Moderate Housing Production Accessory Dwelling Units 163 72 5 RHNA Sites 1,456 930 1,050 1,409 Rehabilitation 5 5 10 284 00 Preservation 95 77 86 10 00 Source: City of Newport Beach Section 4: Housing Plan (September 2022 Final Housing Element) 4-46 17-132 Attachment F Correspondence Regarding Draft Housing Element Amendment 17-133 From: Jim Mosher <jimmosher@yahoo.com> Sent: August 02, 2024 11:56 AM To: Zdeba, Benjamin Subject: Comment on Narrowly Focused 6th Cycle Housing Element Amendment [ A EXTERNAL EMAIL ] DO NOT CLICK links or attachments unless you recognize the sender and know the ,content is safe. Report phish using the Phish Alert Button above. Dear Mr. Zdeba, Thank you for the notice of the opportunity to comment on the City of Newport Beach's "Narrowly Focused 6th Cycle Housing Element Amendment." As you know, I am a member of the City's General Plan Advisory Committee, but the following comments are my personal opinions alone. The notice does not identify the requirement for public review, but that would appear to be California Government Code Subsection 65585LA. Since this proposal is identified as an amendment to the recently certified 6th Cycle revision, and since the timelines are specified only for "revisions," it is not clear to me if this initial draft of the amendment is subject to a 7-day or 30-day review. Nonetheless, I am attempting to comply with the stated deadline, and will refer to the posted 6-page Summary of 6th Cycle Housing Element Amendment Revisions, which I will further assume accurately depicts the revisions requested in the lengthier posted Section 3: Housing Constraints, Resources, and Affirmatively Furthering Fair Housing and Section 4: Housing Plan documents. My first and most obvious comment is that in request Revision 2, on unnumbered page 5 of 6, in the middle of the last long paragraph, the word "unsuitable" is proposed to be deleted and then replaced with the same word. That makes little sense to me. Is this a typo? Or was some other word intended to replace "unsuitable"? If so, not knowing the intended word makes it difficult to comment on. My larger comment is that the cited City Council Resolution No. 2024-58 directs staff to remove from the certified Housing Element "the reference to a vote of the electorate pursuant to Charter Section 423 as a constraint or as an implementing action." I do not understand the significance of that exercise. Charter cities are required to follow their charters, and in the case of Newport Beach, Charter Section 423 requires a vote on amendments adding significant amounts of housing to the general plan unless "state or federal law precludes a vote of the voters on the amendment." While it is possible the state could require the City to proceed despite a negative outcome of the vote, I am unaware of any power the state has to prevent the vote from occurring or any purpose it would have in doing so. 17-134 In particular, since it is not a lawmaking body, I am unaware of any authority HCD has, especially through mere certification of City -provided language in a Housing Element, to absolve a charter city of its obligations under its charter. Nonetheless, and despite it not having anything like the status of a "state or federal law, "in the final proposed new paragraph on unnumbered page 3 of 6, the City appears to be asking HCD to certify a statement that in implementing the Housing Element the Charter Section 423 vote is precluded. Even if HCD had the power to enact a law saying that, the proposed language leading up to the proposed statement of preclusion does not support the conclusion. First, the outcome of the vote could be approval, as it has been in other cities such as Chino. Second, and more importantly, there is no single way in which a RHNA obligation can be met, so it is certainly logical that when there is a voter -approval requirement for general plan amendments, voters should be given a chance to weigh in on alternative implementations, as to number and location of housing units and their affordability requirements, as is happening in Yorba Linda. Again, when such a voter approval requirement exists, the residents do not abdicate their responsibility to their city councils or HCD. Instead, they expect a proposal sufficiently well thought out and sufficiently explained to garner a positive vote. In Newport Beach, the City Council's problem is that the housing deficiency the RHNA process has identified is entirely in the moderate and below income categories. Yet it wants to proceed with an implementation program that would require no affordable construction, despite Policy Action 1 K (Inclusionary Housing Policy), which it has so far chosen to ignore, in Section 4. The Charter Section 423 process is not so much a constraint as an incentive for the Council to come up with a better plan that can be realistically expected to produce the needed affordable units without an excessive amount of new luxury housing and traffic which voters are unlikely to want to approve. The City does not currently have such a plan, and removing the Charter Section 423 language as requested will not produce one. Even if the proposed language could prevent the vote, these revisions would only allow the Council to proceed without a viable plan to produce affordable units. In summary, the Newport Beach City Charter requires a public vote on significant general plan amendments, unless a law prohibits it, as state law does for housing added by density bonus and ADU law. While it is possible the state could require the City to proceed despite a negative Charter Section 423 vote, I am unaware of anything that prohibits the vote from taking place. Adding or removing language about Section 423 from the Housing Element does nothing to change the City's charter responsibilities. Indeed, pretending the Section 423 requirement does not exist, and 17-135 adding a claim that the vote is precluded, creates a less honest Housing Element and removes a key incentive for the Council to create a better plan. Yours sincerely, Jim Mosher Newport Beach resident 17-136 From: Biddle, Jennifer Sent: September 17, 2024 2:19 PM To: City Clerk's Office Subject: FW: September 24th City Council Meeting From: Kingsley Croul <kingsley@croul.com> Sent: September 17, 2024 12:56 PM To: Dept - City Council<CityCouncil@newportbeachca.gov> Subject: RE: September 24th City Council Meeting [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. Dear Mayor & City Councilmembers - The following member of the Newport Beach community submitted the following via NewportCares.or ... RE: September 24th City Council Meeting NAME: Kingsley Croul EMAIL ADDRESS: kingsley(cbcrouLcom COMMENTS: ADDITIONAL COMMENTS: I would like to be able to vote not depend on the city council, but on all of Newport citizens. 17-137 From: Biddle, Jennifer Sent: September 17, 2024 2:19 PM To: City Clerk's Office Subject: FW: September 24th City Council Meeting From: Clarence Turner <cjtsr@sbcgloba1.net> Sent: September 17, 2024 11:58 AM To: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: RE: September 24th City Council Meeting [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. Dear Mayor & City Councilmembers - The following member of the Newport Beach community submitted the following via NewportCares.or ... RE: September 24th City Council Meeting NAME: Clarence Turner EMAIL ADDRESS: c*tsr0bsbcgLobaL.net COMMENTS: I can not attend the meeting. Please include my email comment in the official city record. ADDITIONAL COMMENTS: 17-138 From: Biddle, Jennifer Sent: September 17, 2024 1:11 PM To: City Clerk's Office Subject: FW: September 24th City Council Meeting From: Mary Ker <marycker@me.com> Sent: September 17, 2024 11:56 AM To: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: RE: September 24th City Council Meeting [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. Dear Mayor & City Councilmembers - The following member of the Newport Beach community submitted the following via NewportCares.or ... RE: September 24th City Council Meeting NAME: Mary Ker EMAIL ADDRESS: marycker@me.com COMMENTS: I can not attend the meeting. Please include my email comment in the official city record. ADDITIONAL COMMENTS: Unable to attend as I am temporarily disabled after surgery. It would be totally wrong to Alter the housing plan to accommodate so many more units. Please don't do this. Not what we voted for! This community cannot handle that much more housing and the traffic that goes with it! Mary C Ker 17-139 From: Biddle, Jennifer Sent: September 17, 2024 1:11 PM To: City Clerk's Office Subject: FW: September 24th City Council Meeting From: Carolyn Ross <carolynross@me.com> Sent: September 17, 2024 11:57 AM To: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: RE: September 24th City Council Meeting [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. Dear Mayor & City Councilmembers - The following member of the Newport Beach community submitted the following via NewportCares.or ... RE: September 24th City Council Meeting NAME: Carolyn Ross EMAIL ADDRESS: carolynross me.com COMMENTS: I can not attend the meeting. Please include my email comment in the official city record. ADDITIONAL COMMENTS: I am strongly against the 68 per cent increase. 17-140 From: Biddle, Jennifer Sent: September 17, 2024 1:10 PM To: City Clerk's Office Subject: FW: September 24th City Council Meeting From: Marilyn Brewer <Maybrew@aol.com> Sent: September 17, 2024 11:57 AM To: Dept - City Council <CityCouncil@newportbeachca.gov> Subject: RE: September 24th City Council Meeting [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. Dear Mayor & City Councilmembers - The following member of the Newport Beach community submitted the following via NewportCares.or ... RE: September 24th City Council Meeting NAME: Marilyn Brewer EMAIL ADDRESS: Maybrew@aol.com COMMENTS: I can not attend the meeting. Please include my email comment in the official city record. ADDITIONAL COMMENTS: Mayor & City Council Members, You were all elected to'represent'the citizens of Newport Beach! You were elected to perform in the "best interest" of the city. I am perplexed how voting for 68% more housing units than required is in the best interest of our community? I am perplexed how disallowing a public vote and violating our City Charter serves our community. A vote to approve this measure is a dereliction of your civic duty and ignoring your patriotic obligation. If this is such a good deal...... put it before our citizens and get their vote and support. WHY are you ramming this thru??? 17-141 From: City Clerk's Office Sent: September 18, 2024 7:37 AM To: Mulvey, Jennifer Subject: FW: September 24th City Council Meeting From: Biddle, Jennifer <JBiddle@newportbeachca.gov> Sent: Wednesday, September 18, 2024 7:37:13 AM (UTC-08:00) Pacific Time (US & Canada) To: City Clerk's Office <CityClerk@newportbeachca.gov> Subject: FW: September 24th City Council Meeting From: John Moreiko <iohnmoreiko@gmail.com> Sent: September 18, 2024 12:16 AM To: Dept - City Council<CityCouncil@newportbeachca.gov> Subject: RE: September 24th City Council Meeting [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. Dear Mayor & City Councilmembers - The following member of the Newport Beach community submitted the following via NewportCares.org... RE: September 24th City Council Meeting NAME: John Moreiko EMAIL ADDRESS: johnmoreiko@gmail.com COMMENTS: I can not attend the meeting. Please include my email comment in the official city record. ADDITIONAL COMMENTS: I am totally opposed to the new housing units to be built that you used a loophole to not go to vote to the public. This is way too important of an issue that the public as a whole should not decide. 17-142 From: City Clerk's Office Sent: September 18, 2024 7:37 AM To: Mulvey, Jennifer Subject: FW: Concerning Newport Beach Golf Course From: Biddle, Jennifer <]Biddle@newportbeachca.gov> Sent: Wednesday, September 18, 2024 7:36:57 AM (UTC-08:00) Pacific Time (US & Canada) To: City Clerk's Office <CityClerk@newportbeachca.gov> Subject: FW: Concerning Newport Beach Golf Course From: Drew Loughran <drewloughran@gmail.com> Sent: September 17, 2024 9:10 PM To: Dept - City Council<CityCouncil@newportbeachca.gov> Subject: Concerning Newport Beach Golf Course [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. To whom it may concern, I have recently learned the news that the Newport Beach Golf Course is at risk of closure due to a potential project for a private wave pool. I am writing in hopes that you will keep the Newport Beach Golf Course open. The golf course is one of the most affordable and accessible in Orange County. Closing the course that has been a staple in the community to serve a few wealthy enthusiasts would be a disappointment, and would leave many without an opportunity to learn the sport of golf. Thanks for your consideration, Drew 17-143 From: City Clerk's Office Sent: September 18, 2024 7:37 AM To: Mulvey, Jennifer Subject: FW: September 24th City Council Meeting From: Biddle, Jennifer <]Biddle@newportbeachca.gov> Sent: Wednesday, September 18, 2024 7:36:40 AM (UTC-08:00) Pacific Time (US & Canada) To: City Clerk's Office <CityClerk@newportbeachca.gov> Subject: FW: September 24th City Council Meeting From: Lynn Lorenz <lynnierlo@aol.com> Sent: September 17, 2024 9:10 PM To: Dept - City Council<CityCouncil@newportbeachca.gov> Subject: RE: September 24th City Council Meeting [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. Dear Mayor & City Councilmembers - The following member of the Newport Beach community submitted the following via NewportCares.or ... RE: September 24th City Council Meeting NAME: Lynn Lorenz EMAIL ADDRESS: lynnierlo@aol.com COMMENTS: ADDITIONAL COMMENTS: I don't know if I can attend but I expressed my views to some Council members and most likely wrote about it in the Daily Pilot where one can practice total freedom of speech without having to please the owner or main influencer of the news source. The Council most certainly should adhere to Greenlight. You were elected to express your communities' wishes and I HAVE little doubt that a majority of the community resents that you are using a technicality to get around abiding by legislation ( Greenlight) passed by the people. The Councils I have observed always seem to have a symbiotic relationship with the 17-144 development community. It is about time that they stopped joining together to subvert the democratic process. Newport City Council has rarely shown respect for the wishes of the community. They are too busy being concerned about their own political future. I dream of the day that we will get council members who do respect the community they serve and want to make a difference. 17-145 From: City Clerk's Office Sent: September 18, 2024 7:36 AM To: Mulvey, Jennifer Subject: FW: September 24th City Council Meeting From: Biddle, Jennifer <]Biddle@newportbeachca.gov> Sent: Wednesday, September 18, 2024 7:36:06 AM (UTC-08:00) Pacific Time (US & Canada) To: City Clerk's Office <CityClerk@newportbeachca.gov> Subject: FW: September 24th City Council Meeting From: JAMES AND ELIZABETH WARD <jrwecw@sbcglobal.net> Sent: September 17, 2024 5:17 PM To: Dept - City Council<CityCouncil@newportbeachca.gov> Subject: RE: September 24th City Council Meeting [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Report phish using the Phish Alert Button above. Dear Mayor & City Councilmembers - The following member of the Newport Beach community submitted the following via NewportCares.or ... RE: September 24th City Council Meeting NAME: JAMES AND ELIZABETH WARD EMAIL ADDRESS: irwecw(a)sbcglobal.net COMMENTS: I can not attend the meeting. Please include my email comment in the official city record. ADDITIONAL COMMENTS: Newport Beach is one of those one -of -a -kind places left In a burgeoning world. Originally fishermen's shacks built on sand.- a blue-green harbor, an island where families arrived each summer; Snowbird sails fluttering with the wind across the harbor;; the island houses closed, and empty in the winter. waiting for the families who loved it, to come back. And then the fifties and sixties: The winter people fell in love with this little place, beautiful and welcoming as no other and one after another the families made it their own. Until it filled up. Who decided to surrender this near perfect place in this crowded world to cash in. Build it up, like any other city? Please do not do that in our names. 17-146 Attachment G HCD Letter 17-147 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM. Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 651 Bannon Street ,,n V Sacramento, CA 95811 , �� (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov August 20, 2024 Seimone Jurjis, Community Development Director Community Development Department City of Newport Beach 100 Civic Center Drive, Newport Beach, CA 92660 Dear Seimone Jurjis: RE: City of Newport Beach 6th Cycle (2021-2029) Draft Housing Element Amendment Thank you for submitting the City of Newport Beach (City) draft amendment to the adopted housing element that was received for review on August 2, 2024. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. The City's housing element was found in compliance on October 5, 2022. The draft amendment incorporates modifications to Section 3: Housing Constraints, Resources, and Affirmatively Furthering Fair Housing and Section 4: Housing Plan, Housing Policy 1.1 Implementation Action - Adequate Sites to Accommodate 2021-2029 RHNA and will not negatively impact demonstrating adequate sites to accommodate the regional housing need allocation (RHNA) or the current compliance status of the housing element. Therefore, the element will remain in compliance with State Housing Element Law (Gov. Code, § 65580 et seq) when the draft amendment is adopted, submitted to and approved by HCD, in accordance with Government Code section 65585. 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 must continue to engage the community, including organizations that represent lower -income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. 17-148 HCD appreciates the hard work and dedication provided in the preparation of the City's housing element and looks forward to receiving the County's adopted housing element. If you have any questions or need additional technical assistance, please contact me at Melinda. Coy(a hcd.ca.gov. Sincerely, Melinda Coy Proactive Housing Accountability Chief 17-149 Attachment H Lawsuits 17-150 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 JENNIFER L. KELLER (SBN 84412) jkeller@kelleranderle.com BENJAMIN R. BARRON (SBN 257094) bbaffon@kelleranderle.com SHAUN A. HOTING (SBN 260656) shoting@kelleranderle.com KELLER/ANDERLE LLP 18300 Von Karman Avenue, Suite 930 Irvine, California 92612 Telephone: (949) 476-8700 Facsimile: (949) 476-0900 Attorneys for Petitioner, STILL PROTECTING OUR NEWPORT SUPERIOR COURT OF CALIFORNIA COUNTY OF ORANGE STILL PROTECTING OUR NEWPORT, a non- Case No. profit organization, VERIFIED PETITION FOR WRIT OF Petitioner, MANDATE V. CITY OF NEWPORT BEACH, Respondent. UNLIMITED JURISDICTION -1- VERIFIED PETITION FOR WRIT OF MANDATE 17-151 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1. Petitioner Still Protecting Our Newport (SPON) brings this action for a writ of mandate against Respondent City of Newport Beach (City), and alleges as follows: INTRODUCTION 2. More than two decades ago, local residents voted by a landslide in favor of the Greenlight Initiative, a ballot measure that added "Section 423" to the City Charter. Section 423 prohibits the City Council from amending the City's General Plan to authorize major development projects without first obtaining approval from local residents. More specifically, Section 423 mandates local residents approve any amendment to the City's General Plan that authorizes the development of more than 100 dwelling units. 3. The City Council openly violated Section 423. On July 23, 2024, the City Council purported to adopt an amendment to the City's General Plan that would allow for the development of at least 8,100 new dwelling units, and as many as 19,000 new dwelling units. Local residents did not vote on that amendment prior to the July 23 action of the City Council. 4. The City Council asserts, without support, that the right to vote by local residents under Section 423 is preempted by housing mandates adopted by the state Legislature. That is not the law and the City knows it. 5. For example, in September 2022, the City informed the California Department of Housing and Community Development (HCD) that major amendments to the City's General Plan authorizing the development of more than 100 dwelling units are subject to a local vote. Further, the City expressly told HCD that it planned to comply with Section 423 as part of the overall process to meet state housing mandates. A month later, HCD issued a written letter approving the City's plan to comply with Section 423. What's more, City officials, such as the Mayor, told local residents that any General Plan amendment that triggered Section 423 would be submitted to a vote of local residents. The City Council's sudden reversal is stunning in light of the existing public record. 6. A writ of mandate should issue directing the City Council to comply with Section 423. JURISDICTION AND VENUE 7. This Court has jurisdiction under laws that include Code of Civil Procedure § 1085, and Article 6, § 10 of the California Constitution. -2- VERIFIED PETITION FOR WRIT OF MANDATE 17-152 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8. Venue is proper in this Court under California Code of Civil Procedure § 394 because the City is situated in Orange County. 9. SPON has exhausted any administrative remedies and has no plain, adequate, or speedy remedy at law. PARTIES 10. Founded in 1974, Petitioner SPON is a non-profit organization that represents the interests of City residents in connection with environmental matters and related land use issues. SPON has a beneficial interest in the subject matter of this litigation within the meaning of section 1 1086 of the California Code of Civil Procedure. 11. Respondent City is a chartered city under the California Constitution, and operates through a City Charter per Government Code § 34450, et seq. The City is governed by a seven - member City Council, and has adopted a General Plan controlling all residential and commercial development in the City. THE CONTROVERSY A. Local Residents Pass Measure S, Adding Section 423 to the City's Charter. 12. City Charter Section 423—commonly known as the "Greenlight Initiative"is a fundamental section of the City's Charter that requires voter approval of land use decisions that significantly increase the amount or intensity of development in the City. 13. Presented to voters as Measure S, the principal object of the Greenlight Initiative was to amend the City Charter to add Section 423. In November 2000, local residents voted nearly 2-to- 1 to approve Measure S. 14. The current version of Section 423 states, in full: Voter approval is required for any major amendment to the Newport Beach General Plan. A "major amendment" is one that significantly increases the maximum amount of traffic that allowed uses could generate, or significantly increases allowed density or intensity. "Significantly increases" means over 100 peak hour trips (traffic), or over 100 dwelling units (density), or over 40,000 square feet of floor area (intensity); these thresholds shall apply to the total of. 1) Increases resulting from the amendment itself, plus 2) Eighty percent of the increases resulting from other amendments affecting the same neighborhood and adopted within the preceding ten years. "Other amendments" does not include those approved by the voters. "Neighborhood" shall mean a Statistical Area as shown in the Land Use Element of the General Plan, page 89, in effect from -3- VERIFIED PETITION FOR WRIT OF MANDATE 17-153 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1988 to 1998, and new Statistical Areas created from time to time for land subsequently annexed to the City. "Voter approval is required" means that the amendment shall not take effect unless it has been submitted to the voters and approved by a majority of those voting on it. Any such amendment shall be submitted to a public vote as a separate and distinct ballot measure notwithstanding its approval by the city council at the same time as one or more other amendments to the City's General Plan. The city council shall set any election required by this Section for the municipal election next following city council approval of the amendment, or, by mutual agreement with the applicant for the amendment, may call a special election for this purpose with the cost of the special election shared by the applicant and the City as they may agree. In any election required by this Section, the ballot measure shall be worded such that a YES vote approves the amendment and a NO vote rejects the amendment; any such election in which the ballot measure is not so worded shall be void and shall have no effect. This section shall not apply if state or federal law precludes a vote of the voters on the amendment. (Added effective December 15, 2000) B. City Officials Spent Years Telling the State and Local Residents that the City Would Comply with Section 423. 15. The California Legislature requires each city in California to adopt a comprehensive, long-term general plan for the physical development, configuration, and character of the city. (Gov. Code § 65300, et seq.) A city's general plan serves a vital purpose in local planning efforts, with California courts having described the general plan as "a constitution for all further development within the city." (Friends of `B" Street a City of Hayward (1980) 106 Cal.App.3d 988, 997; see also Endangered Habitats League, Inc. a Cnty of Orange (2005) 131 Cal.AppAth 777, 181 ["The general plan functions as a `constitution for all future developments,' and land use decisions must be consistent with the general plan and its elements."].) 16. On September 13, 2022, the City adopted the Housing Element, which is a comprehensive disclosure of the details of the City's plan to comply with the HCD's Regional Housing Needs Allocation. According to the City's Housing Element: for the "2021-2029 planning period the City was allocated a total of 4,845 units[.]" (Housing Element at 1-4.) 17. Two days later, on September 15, 2022, the City submitted the Housing Element to the HCD for review and certification. In its Housing Element, the City made numerous statements recognizing that a Section 423 vote was required to amend other portions of the General Plan to align -4- VERIFIED PETITION FOR WRIT OF MANDATE 17-154 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 with the Housing Element. For example, the City unambiguously stated it "will implement Charter Section 423 when it amends" the General Plan. 18. HCD conducted a review of the proposed Housing Element. In an October 5, 2022, letter, HCD certified that the City's Housing Element was "in full compliance with State Housing Element Law." In that same letter, HCD also informed the City that it "must continue timely and effective implementation of all programs including ... [i]nitiating a Ballot Measure for a Charter Section 423 Vote." 19. Since publishing the Housing Element, the City has made numerous other statements recognizing its obligations to submit the necessary General Plan amendments to a vote under Section 423. 20. For example, on April 18, 2024, the City's Planning Commission held a meeting to provide a recommendation to the City Council regarding various amendments and actions to implement the Housing Element, including an amendment to the General Plan Land Use Element. The Staff Report published in advance of that meeting provided the following: the "proposed General Plan Land Use Element amendments would not take effect unless it has been submitted to the voters and approved by a majority of those voting on it." 21. More recently, in the June 2024 issue of Newport Beach Living, the City's Mayor and Councilmember, Will O'Neill, confirmed that a Section 423 public vote would take place on the proposed General Plan amendment: "[i]n November [2024], our residents will have the choice to approve that approach when the land use element of our city's general plan (implementing the housing element) is in front of them." 22. Despite these numerous promises and representations to local residents, the City Council abruptly reversed course and declined to submit the proposed amendments to the City's General Plan to the local residents for a vote, as required by Section 423. C. The July 23, 2024, City Council Meeting. 23. The City Council held a public meeting on July 23, 2024. Agenda Item No. 23 for the meeting presented the City Council with two options. The first option was to comply with Section 423, and submit the proposed General Plan amendments to the local residents for a vote. The second -5- VERIFIED PETITION FOR WRIT OF MANDATE 17-155 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 option was for the City Council to unilaterally approve the proposed General Plan amendments without calling a local vote as required by Section 423. 24. The City Council adopted the second option. Resolution No. 2024-58 provides in relevant part, that the City Council "does hereby initiate a narrowly focused amendment to the adopted and certified statutorily compliant 6th Cycle Housing Element of the General Plan to remove the reference to a vote of the electorate pursuant to Charter Section 423 as a constraint or as an implementing action." Resolution No. 2024-51 purported to approve amendments to the Land Use Element of the City's General Plan, in particular by authorizing the development of thousands of housing units without submitting the amendment for a local vote. In effect, the City Council ignored Section 423's voter approval requirement. 25. A week later, on July 30, the City published for public comment its proposed amended Housing Element, in which the City removed the previous statements that Section 423 required the City to hold a public vote. The proposed amended Housing Element now provides that a "Charter Section 423 vote is precluded, and the City will move forward with implementing the Housing Element without a Charter Section 423 vote." 26. Mayor O'Neill later confirmed that, despite the City Council's decision, Section 423 required the Housing Element be submitted to a vote of local residents. Specifically, he stated: "I thought that the policies, principles and politics all leaned toward not sending to a vote. But I read 423 to require a vote. So I couldn't support motions that interpreted 423 opposite that." Yet rather than enter a vote at the Council Meeting that was consistent with the law, his stated views, and his assurances to local residents that a Section 423 election would be held, Mayor O'Neill abstained. Mayor O'Neill attempted to justify his conduct as a matter of "professional courtesy" and asserted that it "made sense" in light of claimed threats of litigation. 27. The City has failed to provide any legal basis for its position that California law precludes a Section 423 vote. Nor can it. For example, California law is clear that "courts must resolve all doubts in favor of the people's exercise of the initiative power and uphold the validity of an initiative wherever it is possible to do so." (Lesher Communications, Inc. v. City of Walnut Creek (1990) 52 Cal.3d 531, 539.) And "absent a clear showing of the Legislature's intent to the contrary," -6- VERIFIED PETITION FOR WRIT OF MANDATE 17-156 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 courts presume that initiatives requiring voter approval of local legislative decisions are valid. (Voters for Responsible Retirement v. Bd. of Supervisors (1994) 8 CalAth 765, 777.) No provision of state law allows the City's adoption of the General Plan amendment at issue in this litigation to be immunized from voter review and approval under Section 423. 28. Despite HCD's October 2022 letter directing "timely and effective" implementation of the Housing Element, the City Council waited nearly two years to take any action to amend the General Plan to be consistent with the HCD-certified Housing Element. The City's lack of diligence is no excuse for violating Section 423. FIRST CAUSE OF ACTION (Petition for Writ of Mandate) 29. In general, mandamus relief is available to compel a public agency to comply with a mandatory duty or remedy an abuse of discretion. (See Code Civ. Proc. §§ 1085, 1094.5.) A local government's "failure to follow its own procedures provides the basis for the issuance of a traditional writ of mandate." (CV Amalgamated LLC v. City of Chula Vista (2022) 82 Cal.App.5th 265, 283.) 30. Under City Charter Section 423, "[v]oter approval is required for any major amendment to the Newport Beach General Plan." A "major amendment" is one that "significantly increases" allowed density or intensity, which is defined to include adding more than 100 dwelling units (among other things). Section 423 also mandates that any such amendment "shall not take effect unless it has been submitted to the voters and approved by a majority of those voting on it." 31. The City, through its City Council, has refused to allow local residents to vote on an amendment to the City's General Plan that triggered Section 423. The amended General Plan Land Use Element at issue in this litigation states that it will add 4,845 new dwelling units. On information and belief, the Land Use Element will actually add more than 8,100 dwelling units, and as many as 19,000 dwelling units. By adding more than 100 dwelling units, Section 423 required that the City submit the proposed amendment to the General Plan Land Use Element to a vote of local residents. On July 23, 2024, the City, through a vote of the City Council, violated Section 423 by voting to unilaterally approve the amendment to the General Plan Land Use Element. -7- VERIFIED PETITION FOR WRIT OF MANDATE 17-157 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PRAYER FOR RELIEF WHEREFORE, SPON prays for judgment as follows: 1. A writ of mandate directing the City Council to set aside Resolution No. 2024-58 and Resolution No. 2024-51. 2. A judicial declaration to the effect that the City Council cannot bypass the local voter requirement set forth in Section 423 relative to the subject matter of Resolution No. 2024-58 and Resolution No. 2024-51. 3. An award of SPON'S reasonable fees and costs. 4. For any other relief as the Court deems proper and just. Dated: August 8, 2024 Respectfully submitted, KELLER/ANDERLE LLP By: 0/-Zzl" nnifer L. Keller Bejamin R. Barron Shaun A. Hoting Attorneys for Petitioner, Still Protecting Our Newport -8- VERIFIED PETITION FOR WRIT OF MANDATE 17-158 VERIFICATION I, Charles Klobe, am the President of Stop Polluting Our Newport, Inc., d/b/a Still Protecting Our Newport. I have read this Verified Petition for Writ of Mandate, and am informed and believe that the matters therein are true, and on that ground alleges that the matters stated therein are true. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed this day of August, 2024. Charles Klobe -9- VERIFIED PETITION FOR WRIT OF MANDATE 17-159 30-2( Electronically Filed by Superior Court of California, County of Orange, 08/23/2024 05:25:21 PM. 1421781-CU-WM-CXC - ROA # 2 - DAVID H. YAMASAKI, Clerk of the Court By G. Ramirez, Deputy Clerk. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 JENNIFER L. KELLER (SBN 84412) jkeller@kelleranderle.com BENJAMIN R. BARRON (SBN 257094) bbarron@kelleranderle.com SHAUN A. HOTING (SBN 260656) shoting@kelleranderle.com KELLER/ANDERLE LLP 18300 Von Karman Avenue, Suite 930 Irvine, California 92612 Telephone: (949) 476-8700 Facsimile: (949) 476-0900 Attorneys for Petitioner, STILL PROTECTING OUR NEWPORT Assif n-e d ear Al I Purpo*,es judge Melissa R. McCormick CX-104 SUPERIOR COURT OF CALIFORNIA COUNTY OF ORANGE 30-2024-01421781-CU-WM-CXC STILL PROTECTING OUR NEWPORT, a Case No. non-profit organization, VERIFIED PETITION FOR WRIT OF Petitioner, MANDATE V. CITY OF NEWPORT BEACH, Respondent. UNLIMITED JURISDICTION -1- VERIFIED PETITION FOR WRIT OF MANDATE 17-160 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1. Petitioner Still Protecting Our Newport (SPON) brings this California Environmental Quality Act (CEQA) action for a writ of mandate against Respondent City of Newport Beach (City), and alleges as follows: INTRODUCTION 2. Affordable housing is essential. But equally important is the need to protect the environment. For that reason, CEQA generally requires that potential significant environmental impacts be disclosed to the public, thoroughly analyzed, and avoided altogether or mitigated to make them insignificant absent a finding of overriding considerations. The City recently authorized the development of nearly 20,000 housing units but only analyzed the environmental impacts for a fraction of them. The law demands more. 3. On July 23, 2024, the Newport Beach City Council (City Council) voted to amend the City's General Plan, Local Coastal Program, and Zoning Code to dramatically increase the scale and density of residential development in Newport Beach. These approvals, which were intended to implement the Newport Beach 2021-2029 6th Cycle Housing Element (Housing Element), are referred to collectively as the "6th Cycle Housing Element Implementation Program" (Project). 4. When the City first began to prepare the Housing Element, it assured the community it would allow new development only to extent State housing law requires. Under California law, the City was required to accommodate 4,845 new housing units at varying levels of affordability (e.g., low income, very -low income). This is commonly referred to as the City's Regional Housing Needs Assessment (RHNA) allocation. 5. Despite those assurances, the recently approved Project will allow a massive increase in new development far beyond what the law requires. According to the Environmental Impact Report (EIR) the City certified, the Project purportedly would allow the construction of 9,649 new housing units. However, that number is far below what the City has actually authorized because the EIR ignored the density bonus laws that will dramatically increase the number of housing units constructed. In reality, those density bonus laws will allow developers to construct up to 19,298 new units without any further changes to City laws or regulations —nearly four times the number of units -2- VERIFIED PETITION FOR WRIT OF MANDATE 17-161 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 required by State law. Such development would also add more than 42,000 new residents, increasing Newport Beach's population by more than 50 percent. 6. Under CEQA, the EIR was required to disclose, analyze, and mitigate all direct and reasonably foreseeable indirect environmental impacts associated with the Project, including the massive influx of housing and residents authorized under the Project. This includes any direct or indirect impacts to public services (e.g., utilities), traffic, air quality, noise, biological resources, and more. 7. In the EIR, the City deliberately chose to ignore that future developers will be able to leverage State and local density bonus laws to build far more units than what was disclosed. The City's failure to address this issue infected the entirety of the EIR's analysis, leading to undisclosed environmental impacts and a failure to identify or impose adequate mitigation. The City's obfuscation of the true amount of development also frustrated CEQA's twin goals of informed public participation and agency decision -making. The community deserves better. 8. SPON respectfully asks that this Court enter a writ ordering the City to set aside its approval of the Project and to revise the EIR to address these errors. The issuance of such relief will ensure the City complies with its obligations under CEQA and that both the public and City decisionmakers truly understand the consequences of the Project. JURISDICTION AND VENUE 9. This Court has jurisdiction over this action under sections 1094.5 and 1085 of the Code I of Civil Procedure and sections 21168 and 21168.5 of the Public Resources Code. 10. Venue is proper in this Court under section 394 of the California Code of Civil Procedure because the City is situated in Orange County and the acts and omissions giving rise to the instant controversy took place in Orange County. The Project is also located in Orange County. PARTIES 11. Founded in 1974, Petitioner SPON is a non-profit organization that represents the interests of Newport Beach residents in connection with environmental matters and related land use issues. SPON has a beneficial interest in the subject matter of this litigation within the meaning of section 1086 of the California Code of Civil Procedure. -3- VERIFIED PETITION FOR WRIT OF MANDATE 17-162 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 12. Respondent City is a chartered city under the California Constitution, and operates through a City Charter per Government Code § 34450, et seq. The City is governed by a seven - member City Council. PROCEDURAL REQUIREMENTS 13. SPON has exhausted all available administrative remedies in connection with the City's approval of the Project. (Pub. Resources Code § 21177.) 14. On July 24, 2023, the Notice of Determination for the Project was filed with the Orange County Clerk -Recorder. This action is therefore timely filed in compliance with section 21167 of the Public Resources Code. 15. SPON has complied with section 21167.5 of the Public Resources Code by providing the City with notice of SPON's intent to commence this action. Attached as Exhibit A is a copy of the Proof of Service completed in connection with the mailing of said notice. THE CONTROVERSY A. The RHNA Allocation and Housing Element. 16. Under California law, regional planning agencies are tasked with forecasting the future housing needs across their respective regions. This process, which is conducted every eight (8) years, is known as the Regional Housing Needs Assessment or "RHNA." 17. In March 2021, the Southern California Association of Governments adopted its 6th Cycle RHNA allocation plan. Under that plan, Newport Beach was allocated 4,845 housing units, including 1,456 very -low-income units, 930 low-income units, 1,050 moderate -income units, and 1,409 above -moderate -income units. 18. On September 13, 2022, the City Council adopted the Housing Element to address its RHNA allocation. Three weeks later, on October 5, the California Department of Housing and Community Development (HCD) certified the City's Housing Element was in full compliance with the State Housing Element Law. B. The EIR for the Project. 19. In March 2023, the City began taking steps to implement the Housing Element. For several months City staff and the City Council -appointed General Plan Advisory Committee (GPAC) -4- VERIFIED PETITION FOR WRIT OF MANDATE 17-163 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 and General Plan Update Steering Committee (GPUSC) began the process of identifying the goals and general contents of the Project. 20. On June 27, 2023, the City issued a Notice of Preparation and Scoping Meeting to announce that it was preparing the EIR for the Project. Six months later, on February 12, 2024, the draft EIR was released for public review and comment. 21. The EIR analyzed the future development of 9,649 new housing units in Newport Beach. This figure excludes so-called "Pipeline Projects," which are projects that are in or have completed the entitlement process and would likely be developed during the 2021-2029 planning period. 22. The EIR acknowledges that State density bonus laws —which are also reflected in the Newport Beach Municipal Code (Municipal Code) —could result in the construction of housing units above and beyond the 9,649 units contemplated in the EIR. The EIR provides: "As mandated by State law and set forth in Municipal Code Chapter 20.32, density bonuses are granted where affordable housing for Moderate- to Very -Low -Income households and special housing needs is provided as a percentage of the proposed development." These density bonus laws allow for "a density increase over the maximum allowable residential density under the applicable zoning and Land Use Element of the General Plan." In other words, the EIR is crystal clear that developers could, consistent with State and local law, ultimately build far more than the 9,649 units identified in the EIR. 23. Despite acknowledging the eminently foreseeable possibility of this additional housing, the EIR failed to identify or disclose any impacts from such development. Instead, the EIR merely asserts the 9,649-unit figure "can be reasonably assumed to accommodate potential density bonus units." 24. SPON understands that developers in Newport Beach and the broader Orange County region frequently rely on density bonus laws to build more units than would otherwise be allowed under applicable local land use regulations. The EIR fails to provide any evidence or analysis to support the City's view that future development under the Project would not similarly take advantage of State and local density bonus laws. -5- VERIFIED PETITION FOR WRIT OF MANDATE 17-164 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 25. Because the EIR ignores additional development facilitated under State and local density bonus laws, the EIR fails to fully identify, evaluate, or mitigate the Project's impacts as CEQA requires. C. The City Approves the Project. 26. At its July 23, 2024, public meeting, the EIR was presented to the City Council for approval and certification. 27. Prior to that meeting, SPON's President, Mr. Charles Klobe, submitted a comment letter to the City Council raising concerns about the EIR's analysis. Mr. Klobe's letter states: "All elements of the []EIR under consideration at the July 23, 2024 city council meeting are deficient as they do not analyze the potential density bonus units allowed under state law. Density bonus units were not analyzed and could add thousands of units above the 9,914 studied in the Draft []EIR, therefore it is deficient and must be recirculated." 28. At the July 23 meeting, the City Council received a report from City staff and additional comments from the public. SPON members and other Newport Beach residents once again raised concerns about the EIR's failure to account for and analyze the additional development that would be facilitated by State and local density bonus laws. Ignoring the public comments, the City Council voted unanimously to certify the EIR and approve the Project. FIRST CAUSE OF ACTION (Petition for Writ of Mandate under CCP §§ 1094.5 and/or 1085 — Inadequate Project Description) 29. SPON hereby incorporates each paragraph set forth above. 30. Public agencies like the City must prepare an EIR before approving a project that may have a significant effect on the environment. (Pub. Resources Code § 21152.) CEQA broadly defines a "project" to include "the whole of an action, which has a potential for resulting in ether a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment" and that is undertaken, supported or approved by a public agency. (14 Cal. Code Regs. § 15378.) And to ensure an EIR adequately evaluates the potential impacts of a project, an EIR must include a description of the project's location, objectives, and characteristics. (14 Cal. Code Regs. § -6- VERIFIED PETITION FOR WRIT OF MANDATE 17-165 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 15124.) "An accurate, stable and finite project description is the Sine qua non of an informative and legally sufficient EIR." (County oflnyo v. City of Los Angeles (1977) 71 Cal.App.3d 185, 195.) 31. A EIR's project description must include all relevant aspects of a project, including any activities that are a "reasonably foreseeable consequence" of the project approval. (Laurel Heights Improvement Assn. v. Regents of Univ. of Cal. (1988) 47 Ca1.3d 376, 433.) It is unlawful for an agency to artificially narrow the scope of a project to avoid disclosing or evaluating all potential impacts. (See, e.g., San Joaquin Raptor/Wildlife Rescue Center v. Cmy. of Stanislaus (1994) 27 Cal.App.4th 713, 734-35; Rural Landowners Assn. v. City Council (1983) 143 Cal.App.3d 1013, 1024.) 32. As explained above, the EIR for the Project evaluates only the impacts associated with the future development of 9,649 new housing units in Newport Beach. However, the EIR ignores the fact that far more units would be built pursuant to State density bonus laws and the City's own Municipal Code. Those laws could allow up to double the number of housing units—i.e., a total of 19,298 units. 33. Developers across California often rely on density bonus laws to build larger and more dense projects than would otherwise be allowed under local planning and zoning regulations. Indeed, the EIR acknowledges that density bonus laws could allow developers to build up to double the number of housing units contemplated by the Project. Despite this acknowledgement, the EIR fails to acknowledge or evaluate any of the impacts associated with the likelihood that developers will rely on those same laws in Newport Beach. 34. The EIR's failure to disclose the additional development that is a reasonably foreseeable consequence of the Project renders the EIR's project description legally deficient and frustrated public participation and informed agency decision making. 35. Per sections 1094.5 and/or 1085 of the Code of Civil Procedure, SPON seeks a writ setting aside the City's certification of the EIR and approval of the Project on the grounds that the City failed to proceed in the manner required by law and/or prejudicially abused its discretion by failing to disclose the reasonably foreseeable consequences of Project. -7- VERIFIED PETITION FOR WRIT OF MANDATE 17-166 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECOND CAUSE OF ACTION (Petition for Writ of Mandate under CCP §§ 1094.5 and/or 1085 — Failure to Analyze and Mitigate Environmental Impacts) 36. SPON hereby incorporates each paragraph set forth above. 37. An EIR must identify and describe the significant environmental impacts that will result from a proposed project. (14 Cal. Code Regs. § 15126.2, subd. (a).) "An EIR must be prepared with a sufficient degree of analysis to provide decision makers with information which enables them to make a decision which intelligently takes account of environmental consequences." (14 Cal. Code Regs. § 15151.) 38. In addition to identifying and describing significant impacts, an EIR must "describe feasible measures which could minimize significant adverse impacts." (14 Cal. Code Regs. § 15126.4, subd. (a)(1).) The EIR must also "identify mitigation measures for each significant environmental effect identified in the EIR." (Id. at subd. (a)(1)(A).) 39. As explained above, the City refused to account for the fact that State and local density bonus laws could result in dramatically more housing development than what was disclosed and evaluated in the EIR for the Project. The EIR therefore failed to identify and analyze fully all of the Project's reasonably foreseeable impacts across each topic area. Similarly, by failing to identify and analyze these impacts, the EIR failed to formulate or require implementation of feasible mitigation measures that would avoid or reduce such impacts. 40. Per sections 1094.5 and/or 1085 of the Code of Civil Procedure, SPON seeks a writ setting aside the City's certification of the EIR and approval of the Project on the grounds that the City failed to proceed in the manner required by law and/or prejudicially abused its discretion by failing to identify, analyze, and mitigate all of the Project's foreseeable environmental impacts. PRAYER FOR RELIEF WHEREFORE, SPON prays for judgment as follows: 1. A writ of mandate directing the City to set aside and vacate its certification of the EIR (Resolution No. 2024-50). -8- VERIFIED PETITION FOR WRIT OF MANDATE 17-167 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. A writ of mandate directing the City to set aside and vacate its approvals for the Project (Resolution Nos. 2024-51, 2024-52, 2024-53, and 2024-58; Ordinance Nos. 2024-16 and 2024-17). 3. A writ of mandate directing the City to identify and analyze all of the Project's environmental impacts, including impacts associated with future use of State and local density bonus laws, and to impose appropriate mitigation consistent with CEQA. 4. An award of SPON'S reasonable fees and costs, including under Code of Civil Procedure section 1021.5. 5. For any other relief as the Court deems proper and just. Respectfully submitted, Dated: August 23, 2024 KELLER/ANDERLE LLP By: JYNNIFER L. KELLER SHAUN A. HOTING BENJAMIN R. BARRON Attorneys for Petitioner, STILL PROTECTING OUR NEWPORT -9- VERIFIED PETITION FOR WRIT OF MANDATE 17-168 VERIFICATION I, Charles Klobe, am the President of Still Protecting Our Newport. I have read this Verified Petition for Writ of Mandate, and am informed and believe that the matters therein are true, and on that ground alleges that the matters stated therein are true. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed this 23 day of August, 2024. CHARLES KLOBE -10- VERIFIED PETITION FOR WRIT OF MANDATE 17-169 Exhibit A 17-170 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PROOF OF SERVICE STATE OF CALIFORNIA, COUNTY OF ORANGE I, am over the age of 18 and not a parry to the action. I am employed Keller/Anderle LLP, 18300 Von Karman Avenue, Suite 930, Irvine, California 92612. On August 23, 2024, I served a copy of the following document(s) on the interested parties through their counsel identified on the attached service list by the mean of service indicated below. LETTER FROM JENNIFER L. KELLER TO CITY OF NEWPORT BEACH, CITY CLERK'S OFFICE ❑x BY MAIL: I placed a copy of the document(s) listed above in a sealed envelope for collection by the United States Postal Service, addressed to the persons in the attached service list, following the ordinary business practices of Keller/Anderle LLP. I am readily familiar with the practices of Keller/Anderle LLP for the collection and processing of mail with the United States Postal Service. On the same day that correspondence is placed for collection, it is deposited in the ordinary course of business with the United States Postal Service, in a sealed envelope with postage fully prepaid. ❑ BY ELECTRONIC SERVICE: I sent by email a copy of the document(s) listed above to the email address(es) in the attached service list. ❑ BY OVERNIGHT DELIVERY: I placed a copy of the document(s) listed above in a sealed envelope or package for collection by an overnight delivery carrier and addressed to the persons in the attached service list. I deposited the envelope or package in a box or other facility regularly maintained by the overnight deliver carrier or delivered the envelope or package to a courier or driver authorized by the overnight delivery carrier to receive such documents. ❑ BY PERSONAL SERVICE: I placed a copy of the document(s) listed above in a package and I delivered or directed a courier to deliver the package by hand to the address(es) in the attached service list. 0 (STATE) I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed August 23, 2024, at Irvine, California. Leobardo Cano Type or Print Name . W— PF -0 M--- PROOF OF SERVICE 17-171 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SERVICE LIST Leilani Brown City Clerk for the City of Newport Beach OFFICE OF THE CITY CLERK 100 Civic Center Drive Newport Beach, CA 92660 I PROOF OF SERVICE 17-172 Keller/AnderleLLP BUSINESS TRIAL LAWYERS August 23, 2024 VIA CERTIFIED MAIL City of Newport Beach, City Clerk's Office Attn: Leilani Brown, City Clerk 100 Civic Center Drive, Bay 2E Newport Beach, CA 92660 Re: Notice of Impending Litigation — California Environmental Quality Act Dear Ms. Brown: Per Section 21167.5 of the Public Resources Code, please take notice that our client Still Protecting our Newport (SPON) intends to file a Verified Petition for Writ of Mandate on August 23, 2024, challenging the City of Newport Beach's certification of an Environmental Impact Report for, and its related approval of, the 6th Cycle Housing Element Implementation Program. These decisions are reflected in Resolution Nos. 2024-50, 2025-51, 2025-52, 2024-53, and 2024-58, and Ordinance Nos. 2024-16 and 2024-17. A conformed copy of the Verified Petition for Writ of Mandate will be served under separate cover. Should you have any questions, please feel free to call or write. Sincerely, KELLER/ANDERLE LLP Jennifer L. Keller Keller/Anderle LLP 1 18300 Von Karman Ave., Suite 930 1 Irvine, CA 92612-1057 949.476.8700 1 Fax 949.476.0900 1 www.kelleranderle.com 17-173 Attachment I Planning Commission Resolution No. PC2024-019 and Meeting Minutes 17-174 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 RESOLUTION NO. PC2024-019 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING THE CITY COUNCIL ADOPT A NARROWLY FOCUSED AMENDMENT TO THE ADOPTED AND CERTIFIED 6T" CYCLE HOUSING ELEMENT FOR THE 2021-2029 PLANNING PERIOD (PA2022- 0245) THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS: SECTION 1. STATEMENT OF FACTS. Section 65580 et seq. of the Government Code requires 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. 2. The City of Newport Beach ("City") 6t" Cycle Housing Element for the 2021-2029 period ("Housing Element") presents a framework for meeting the housing needs of existing and future resident populations within Newport Beach based on the Regional Housing Needs Assessment ("RHNA") allocation of 4,845 new housing units. 3. The Housing Element was adopted by the City Council on September 13, 2022, and certified as statutorily compliant with State Housing Element Law on October 5, 2022, by the State Department of Housing and Community Development ("HCD"). 4. A public hearing was held on July 23, 2024, by the City Council to consider the Housing Element Implementation, including consideration of certifying the Program Environmental Impact Report ("PEIR"), adoption of CEQA Findings, Mitigation Monitoring and Reporting Program and a Statement of Overriding Considerations. A notice of time, place, and purpose of the hearing was given in accordance with CPUC Section 21676(b), California Sections 54950 et seq. ("Ralph M. Brown Act"), Chapter 20.62 (Public Hearings), Chapter 20.66 (Amendments), and Chapter 21.62 (Public Hearings) of the Newport Beach Municipal Code ("NBMC"), and City Council Policy K-1 (General Plan and Local Coastal Program) and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act). Evidence both written and oral, was presented to, and considered by, the City Council at this hearing. 5. At the conclusion of the hearing, the City Council adopted Resolution No. 2024-58 to initiate a narrowly focused amendment to the Housing Element to remove the reference to Charter Section 423 based on evidence presented at the hearing that voter approval is precluded because state law mandates the City adopt and implement the Housing Element or else face serious penalties such as loss of state funding and/or lawsuits for failing to comply with the state's housing element requirements pursuant to Section 65000 et seq. of the Government Code in the event voters do not approve the Housing Element Implementation. 17-175 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae 2 of 11 6. On July 26, 2024, City staff published and circulated draft revisions to Section 3 (Housing Constraints, Resources, and Affirmatively Furthering Fair Housing) and Section 4 (Housing Plan) of the Housing Element ("Amendment") that incorporates the legal basis for the removal of Charter Section 423 voter approval requirement to previously interested parties for a seven-day public review period, including The Kennedy Commission, People for Housing Orange County, Still Protecting Our Newport, The Public Law Center, and YIMBY Law. 7. On August 2, 2024, at the conclusion of the seven-day public review period, City staff transmitted the draft Amendment to HCD for a formal review along with one piece of written correspondence received from Jim Mosher. No other correspondence was received in response to the published and circulated Amendment. 8. On August 20, 2024, the City received a letter from HCD, attached hereto and incorporated by reference as Exhibit "A," confirming the Amendment maintains the City's compliant status and, with its adoption, the Housing Element will remain certified as statutorily compliant. 9. On September 5, 2024, a public hearing was held in the Council Chambers at 100 Civic Center Drive, Newport Beach, California. A notice of time, place and purpose of the hearing was given in accordance with the 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. The Housing Element Implementation Program Amendments PEIR (SCH No. 2023060699) was prepared for the Housing Element Implementation in compliance with the California Environmental Quality Act ("CEQA") as set forth in the Public Resources Code Sections 21000 et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations ("CEQA Guidelines"), and City Council Policy K-3 (Implementation Procedures for the California Environmental Quality Act). On July 23, 2024, the City Council adopted Resolution No. 2024- 50, to certify the PEIR as complete and adequate, inclusive of all required findings, a statement of overriding considerations, and a mitigation monitoring reporting program. SECTION 3. DECISION. NOW, THEREFORE, BE IT RESOLVED: The Planning Commission of the City of Newport Beach hereby finds the adoption of this Amendment is covered under the Housing Element Implementation Program Amendments Final Program Environmental Impact Report, certified by the City Council on July 23, 2024, and identified by State Clearinghouse Number 2023060699. 07-29-24 17-176 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae3of11 2. The Planning Commission of the City of Newport Beach hereby finds that the Amendment, attached hereto as Exhibit "B" and incorporated by reference, complies with the statutory requirements set forth in Section 65580 et seq. of the Government Code. 3. In conformance with City Council Policy K-1, the Planning Commission has reviewed and recommends approval of the Amendment to the City Council by the adoption of this resolution. PASSED, APPROVED, AND ADOPTED THIS 5T" DAY OF SEPTEMBER, 2024. AYES: Barto, Rosene, Salene, Ellmore, Langford NOES: Lowrey ABSTAIN: None ABSENT: Harris BY: V-V,-) Mark Rosene, Chair BY: VAW. sd ln.t, David Salene, Secretary Attachment: Exhibit A — HCD Letter Exhibit B — Amendment 07-29-24 17-177 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae 4 of 11 EXHIBIT A HCD Letter STATE OF CALIFORNIA- AUSINFSS_ CONSUMERSERVICFS ANn HOUSINGAGFNCY GAVIN NEWSOM Goverrar DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 861 Gannon Sheet Sacramento, CA 95811 (916) 263-Al1 1 FAX (916j 263-7453 w .hcd-ca-vay (D August 20, 2024 Seimone Jurjis, Community Development Director Community Development Department City of Newport Beach 100 Civic Center Drive, Newport Beach, CA 92660 Dear Seimone Jurjis: RE: City of Newport Beach V1 Cycle (2021.2029) Draft Housing Element Amendment Thank you for submitting the City of Newport Beach (City) draft amendment to the adopted housing element that was received for review on August 2, 2024. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. The City's housing element was found in compliance on October 5, 2022. The draft amendment incorporates modifications to Section 3: Housing Constraints, Resources, and Affirmatively Furthering Fair Housing and Section 4; Housing Plan, Housing Policy 1.1 Implementation Action - Adequate Sites to Accommodate 2021-2029 RHNA and will not negatively impact demonstrating adequate sites to accommodate the regional housing need allocation (RHNA) or the current compliance status of the housing element. Therefore, the element will remain in compliance with State Housing Element Law (Gov. Code, § 65580 et seq) when the draft amendment is adopted, submitted to and approved by HCD, in accordance with Government Code section 65585. 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 must continue to engage the community, including Organizations that represent lower -income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. 07-29-24 17-178 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae5of11 Seimone Jurjis, Director Page 2 HGD appreciates the hard work and dedication provided in the preparation of the City's housing element and looks forward to receiving the County's adopted housing element. If you have any questions or need additional technical assistance, please contact me at Mclinda.CavCcPhcd.ca.aov- Sincerely, Melinda Coy Proactive Housing Accountability Chief 07-29-24 17-179 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae 6 of 11 EXHIBIT B Amendment REVISION 1: Amend the Subsection entitled "Growth Management Measures" beginning on Page 3.28 within Section 3: Housing Constraints, Resources. and Affirmatively Furthering Fair Housing as follows - Growth Management Measures Growth management measures are techniques used by a government to regulate the rate, amount, and type of development. Growth management measures allow cities to grow responsibly and orderly, however, if overly restricted can produce constraints to the development of housing, including accessible and affordable housing. On November 7, 2000, the Newport Beach electorate approved Measure S. whit ,�.: amended the Newport Beach City Charter by adding Sect! an 423. Charter Section 42 requires voter approval of certain major amendments oft he Newport Beach General Plan, unless state or federal law precludes a vote of the electorate on the arnendment_ In the case of Charter Section 423, in g2a ral. 34 maiar amendment to the General Plan+4s defined as&01@4nod ariaw pFspaw' one that significantly increases allowed density or intensity fW64 e0R6ideF90 _,.. r ff _PRFG 90 "•• *Q 4090 v increasine'_r-"4@h� - 4over 100 peak hour trips (traffic), or over 40.000 square feet af- floor area (intensity), or over 100 dwelling units (density) when compared to the General Plan prior to aonroval. These thresholds are calculated- as the sure-�f the amendment itself andefm eighty uercent (80%) of the increases resulting from other amendments affecting the same neighborhood a that were adapted within the preceding ten j 101 years a*aI4 When the electorate approved Measure 5, electorate encourageds the City Council to adopt implementing guidelines that are consistent with thek& purpose and intent of Measure S; however. the Guidelines for Implementing Charter Section 423 do not provide guidance as to when a state or federal law precludes a Vote on a rnaioramendment of the General Plan. Procedure The City Council determines if are proposed aamendment requires voter approval pursuant to Charter 5ection 423, based on the fallowing conditions: ■ The Amendment modifies the allowed use(s) of the property or area that is the subject of the Amendment such that the proposed use(s}generateW more than one hundred 100 morning or evening peak hour trips than are generated by the allowed use(s) before the Amendment; or 07-29-24 17-180 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae 7 of 11 • The Amendment authorizes an increase in floor area for the property or area that is the subject of the Amendment that exceeds forty thousand (40,000) square Peet when compared to the General Plan before approval of the Amendment; or • The Amendment authorizes an increase in the number of dwelling units for the property or area that is the subject of the Amendment that exceeds one hundred (100) dwelling units when compared to the General Plan before approval of the Amendment; or ■ The increase in morning or evening peak hour trips, floor area or dwelling units resulting from the Amendment when added to eighty percent (80%) of the increases in morning or evening peak hour trips, floor area or dwelling units resulting from Prior Amendments, within the preceding ten (10) years (see definition in Section 2JJ exceeds one or more of the voter approval thresholds in Section 423 as specified in Subsection 1, 2 or 3. If the City Council determines a General Plan Land Use Element Amendment requiFes voter approvals after approving the Amendment, the City Council then adopts a resolution calling an election on the Amendment. The City Council schedules the election at the next regular municipal election, as specified by the City Charter. The City Attorney then prepares an impartial analysis of the Amendment, which contains information about the Amendment, any related project or land use approval, and the environmental analysis conducted that will helpthe electorate make an informed decision. Inthe absence of an ordinance or Charter provision that establishes a procedure for submittal of arguments or rebuttals relative to City measures, the City Council will adopt a resolution that authorizes the filing of arguments and rebuttals in accordance with the general procedures specified in the Elections Code. It is important to understand that Charter Section 423 only applies to General Plan amendments. Individual housing development projects that do not require a General Plan amendment are already accommodated within the General Plan and zoning framework. They would not be subject to Charter Section 423 and would never require a vote of the electorate. If a housing development project requires a General Plan amendment, any unit and peak hour traffic increases added to the project through bonus units awarded by the Density Bonus process are not counted toward Charter Section 423 thresholds and a determination whether a vote is required. Ultimately projects that require a vote of the electorate pursuant to Charter Section 423 may require additional costs and be subject to delays due to the election process that may yield uncertain election results. To implement the Housing Element, the City must move forward with adding housing units that would qualify as a major amendment for purposes of Charter Section 423, which raises theguestiarH4whether a vote under CharterSsection 423 is precluded by state or federal law. In recent legislation, such as Senate Bill 1333, the legislature has specifically found that the lack of affordable housing is a matter of statewide concern and that state housing laws related) to land use, planning and zoning apoly to charter cities. Similarly, the court in Anderson v. City of San Jose 12019) 42 CaLAP P.Sth 683, found that that the lack of affordable housing is a matter of statewide concern. 07-29-24 17-181 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae 8 of 11 To comply with state laws, the City must have a general plan, which serves as the Ion¢ -range Plan for future physical development in the community. (Government Code 4 650N. et sea.) one of the mandatory elements of a general plan is a housing element, which must be updated by the City every eight (8) years and identify sites sufficient to meet the City's share of the Recional Housing Needs Assessment (RHNA} allocation. (Government Code §§ 65302, 65588, 65863.1 In determining the RHNA allocation, the council of governments does not take into consideration any zoning or other local land use restrictions, such as Charter Section 423, but is directed by state law to "consider the potential for increased residential development under alternative zoning ordinances and land use restrictions.'' (Government Code 4 65584.04fe1( 18).) Furthermore. the City has a continuing obligation to always ensure that adequate sites exist to accommodate lower -income housing development, not lust at the beginning of the eight (81-year Recional Housing Needs Allocation cycle. (Government Code § 65863.1 Inthis RHNA cycle, the City has been allocated 4,845 new housing units. To comply with state law, the City must not only plan for these units, but the City must also take action to establish the appropriate zoning designations and development standards to allow the private market to develop these units. After developing a plan for these units, the City must submit the Housing Element to the Department of Housing and Community Development for them to find that the Housing Element is in compliance with state law. But haying the California Department of Housing and Community Development find the Citv's Housing Element is compliant with state law is only one step of many. The City is then required to implement the Housing Element. Under Government Code Section 65585 (i)(II(A). implementation is not optional, and the California Department of Housing and Community Development is charged with ensuring the City is implementing the Housing Element and taking action to revoke its finding that the Housing Element complies with state law if the City fails to implement the Housing Element. In addition to the loss of local zoning control, permitting authority. and fines of up to 5600.004 per month for not having a compliant Housing Element state law provides that the Attorney General may appoint an agent to take all necessary actions to bring the City into compliance with state law. (Government Code 4 65585(11.1 (Because providing residential housing opportunity sites to accommodate the City's RHNA allocation is mandated by state law and the City is required to implement the Housing Element. a Charter Section 423 vote is precluded, and the City will move forward with implementing the Housing Element without a Charter Section 423 vote. 07-29-24 17-182 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae9of11 rh.. ,.,J P...-.1 o 6'r.,rin 140616:Fie rl,.M @A; 1IkQ 440 jQQF§ Vow, +l;@ r:i., will i�lt:-.t,... ,.I....F:.... 07-29-24 17-183 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae 10 of 11 REVISION 2: Amend the Subsection entitled "Implementation Actions" beginning on Page 4-2 within Section 4. Housing Plan as follows: Implementation Actions Adequate Site #o Accommodate 2021-2029 RHNA The City of Newport Beach has a total Regional Housing (deeds Assessment (RHNA) allocation of 4,845 units. State law requires the City of Newport Beach to identify adequate sites to accommodate its fair share allocation for the Leh Cycle Housing Element. This City has identified a variety of candidate sites through extensive analysis in collaboration with the community and stakeholders through Newport Together's "Listen and Leam" process, multiple meetings of the City's Housing Element update Advisory Committee (Committee), participation by interested residents at a variety of public meetings, workshops. and consultation with property owners. The City of Newport Beach has identified an adequate amount of land that was determined by the Committee as "Feasible" or "Potentially Feasible" for future development, only a portion of these candidate sites will be necessary to accommodate the City's RHNA planning obligation. These sites have undergone a rigorous process to evaluate site features, development potential, developer/owner interest and other factors to deem them appropriate for housing during the 2021-2029 Planning Period. As part of the analysis of adequate sites, the City has comprehensively reviewed opportunity sites citywide and #are -has 4k-RFi "dentified eight primary areas of opportunity: • Airport Area Environs . ❑over/Westcliff • West Newport Mesa + Newport Center • Banning Ranch + 5th Cycle Housing Element Sites • Coyote Canyon + Accessory Dwelling Units Since the City has identified several opportunity sites in the 51h Cycle Housing Element that will be utilized in the b`h Cycle Housing Element, additional policy considerations are stated in this Policy Program. These opportunities sites are described in map and tabular format in Appendix B of this Housing Element. Each of the opportunity areas described in this Housing Element have been assigned a targeted acreage, and a targeted number of new housing units (see following implementing Policy Action statements). Collectively, these targets must meet the unmet RHNA need as required by s-State law. It is expected there may be deviations from the targets with future implementing zoning actions. New opportunity sites may be identified, and other sites may be deemed oww44leunsuitable. or densities may be modified, all based on new information received over time. The City may adopt future zoning strategies that are more or less than the identified targets in this Housing Element provided the total unmet RHNA need by income category is accommodated within state -defined deadlines. If future zoning strategies deviate from the targets expressed in this Housing Element but still meet the requirement to identify adequate sites to accommodate unmet RHNA need, no amendment to the Housing Element would be required and deviations of any magnitude may be considered subject to the City Council's review and approval in consultation with the Community. 07-29-24 17-184 Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7 Planning Commission Resolution No. PC2024-019 Paae 11 of 11 L .......... 1.... '1!1] ] ......Ir espse+�Y�s+-rv,_ �dA- 1.. EQ4�"a'{sl'+',vwv1+�--s1'7�ei+sr6v�A c..........L.QF 2Q;14 I,..ri n•n Mwllai. ,.. .. i,.r (`hn r•n• Cnrri wr. A']] . 4 9 i 4n.,6 n nlnn.:nn Ia For alI Rezone Policy Actions 1A to 1F, Pursuant to Government Code 65583.2, subdivisions (h) & (i), which rezone sites to accommodate the City's shortfall in satisfying the RHNA, the City commits 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 house holds.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 densityof 20 units per acre; and ■ at least 50 percent of the lower -income need must be accommodated on sites designated • for residential use onlyor on sites zonedfor mixed uses that accommodate all of the very low and low-income housing need, if those sites: o allow 140 percent residential use, and o require residential use occupy 5U percent of the total floor area of a mixed - use project. 07-29-24 17-185 Jim Mosher inquired about what would happen at the end of Phase 2 if the DA was not amended and if the City has a mechanism for refunding overcharges, and questioned the current assessment that determined the current refund size. The applicant clarified that they have not been overcharged and that excess fee credits are available for the park construction costs. Assistant City Attorney Summerhill clarified that the unused park fee credits could be applied towards Phase 2, as allowed by DA. Chair Rosene closed the public hearing. No comments were received from the Commissioners. Motion made by Commissioner Langford and seconded by Commissioner Barto to approve the staff recommendation. AYES: Barto, Ellmore, Langford, Lowrey, Rosene, and Salene NOES: None ABSTAIN: None ABSENT: Harris ITEM NO. 4 AMENDMENT TO THE 6TH CYCLE HOUSING ELEMENT (PA2022-0245) Site Location: Citywide Summary: A narrowly focused amendment to the City's adopted and certified 61h Cycle Housing Element that would revise portions of Section 3 (Housing Constraints, Resources, and Affirmatively Furthering Fair Housing) and Section 4 (Housing Plan) to change the narrative and implementing actions to remove the requirement for a vote of the electorate pursuant to Charter Section 423. Recommended Actions: 1. Conduct a public hearing; 2. Find that all significant environmental concerns for the City's Housing Element and its implantation have been addressed in a previously certified environmental document (Housing Element Implementation Program Environmental Impact Report [PEIR] — State Clearinghouse Number 2023060699); and 3. Adopt Resolution No. PC2024-019 recommending the City Council's adoption of the Amendment. Planning Manager Zdeba used a presentation to review the Housing Element's background, the July 23, 2024, City Council actions and direction received, the narrowly focused amendment for the Housing Element, results of the California Department of Housing and Community Development (HCD) review, and next steps. 17-186 In reply to Commissioner Ellmore's question, Assistant City Attorney Summerhill stated that the City Council had already determined that no vote is required, and it is unlikely the Council would change direction on the matter. She noted the Planning Commission's recommendation on this matter is largely a procedural step that is required by the code. She noted that the 6th Cycle Housing Element has been adopted and certified and the one defining feature is whether a vote would be required. There were no ex parte communications among the Commissioners. Chair Rosene opened the public hearing. Jim Mosher stated that, although he is an appointed member of the City's General Plan Advisory Committee (GPAC), he would only be expressing his personal opposition to this change to the Housing Element. He expressed his belief that the Council has been deceitful about the Housing Element Plan and thought the voters have a right to weigh in on it. Chair Rosene closed the public hearing. Commissioner Lowrey expressed concern for overriding a public vote within the City Charter and did not see the overriding factors from the State. In response, Assistant City Attorney Summerhill noted a lawsuit has been filed against the City on this matter and that Commissioner Lowrey's concern would be resolved as part of the litigation. Additionally, she clarified that the amendment for consideration is to eliminate the specific policy action requirement set forth in the Housing Element. Commissioner Lowrey expressed his discomfort with the amendment. Motion made by Chair Rosene and seconded by Secretary Salene to approve the staff recommendation. AYES: Barto, Ellmore, Langford, Rosene, and Salene NOES: Lowrey ABSTAIN: None ABSENT: Harris VIII. STAFF AND COMMISSIONER ITEMS ITEM NO. 5 MOTION FOR RECONSIDERATION - None ITEM NO. 6 REPORT BY THE COMMUNITY DEVELOPMENT DIRECTOR OR REQUEST FOR MATTERS WHICH A PLANNING COMMISSION MEMBER WOULD LIKE PLACED ON A FUTURE AGENDA Deputy Community Development Director Murillo noted that the September 19 Planning Commission meeting is canceled, and the next meeting will be on October 3 to address two variances and one conditional use permit for a restaurant with a parking waiver. ITEM NO. 7 REQUESTS FOR EXCUSED ABSENCES Secretary Salene requested an excused absence for October 3. IX. ADJOURNMENT — With no further business, Chair Rosene adjourned the meeting at 6:46 p.m. 17-187 Attachment J Planning Commission Staff Report (This document is available at the following link due to bulk: https://ecros.newportbeachca.gov/WEB/DocView.aspx?id=3054184&dbid=0&repo=CNB) 17-178