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Home My WebLink About17 - 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 Districts - PowerPointHOUSING ELEMENT AMENDMENT AND IMPLEMENTATION (PA2022=0245) City Council Public Hearing September 24, 2024 Community Development Department )UND AND COMMUNITY OUTREACH Very Low Income Low Income Moderate Income 0 - 50% AM I 51 — 80% AM 81 — 120% AM I 1,456 units 930 units 1,050 units Above Moderate > o 120 /o AM I 1,409 units Income Total 4,845 units Council directed to "firmly challenge and plan to comply" 1. Facilitate compliance with mandated deadlines and requirements 2. Appeal to reduce the City's RHNA o RHNA appeal denied by SCAG 3. Focus the General Plan Update and community engagement on housing o City Council formed Housing Element Update Advisory Committee (HEUAC) to assist with outreach and guiding the Housing Element o Members had expertise in housing, finance, and design 4. Collaborate regionally o Worked with other jurisdictions to oppose harmful legislation and support helpful legislation I, CITY OF NEWPORT BEACH COMMUNITY ENGAGEMENT: WORKSHOPS Listen & LearnIL7 Workshops 4i rC P y,I,.r a � Housing Plan Strategy — 5 Workshops r � 'a 14 9� r Q w�b�i may' `�♦ `� �, February 20, 2019 March 6, 2019 March 20, 2019 April 3, 2019 00 May 1, 2019 • May 15, 2019 • May 29, 2019 • September 12, 2019 • September 25, 2019 • October 16, 2019 0 November 6, 2019 • December 4, 2019 July 1, 2020 July 15, 2020 September 2, 2020 October 7, 2020 October 21, 2020 November 4, 2020 December 2, 2020 January 20, 2021 February 3, 2021 February 17, 2021 March 3, 2021 March 17, 2021 March 31, 2021 Li.udticl .:%isle Flyers eNotifications Social Media Committee Members Council Announcements City Website Newport, Together Printed Newspaper Online Newspaper Initial Draft of Housing Element ! Circulation Element Available Noi City staff and its consultant team have been working with the Housing Element Update Advisory Committee, the Planning Commission, and the community over the past eight months to prepare an initial draft of the updated General Plan Housing Element & Circulation Element. The initial drafts are now available online. The first comment period will be open until April 30, 2021. Please visit www.NewportTogether.com to download the drafts and to learn how to submit your comments. There are many ways to submit feedback and stay Informed. Everyone Is encouraged to participate! I L, " i Housing Element Ir Workshop March 22, 2021 Circulation Element Initial Draft Review Workshop April 5, 2021 To participate online, register for the workshops, and learn more visit: www.NewportT*gether.com 6T" CYCLE HOUSING ELEMENT AND CITY'S HOUSING PLAN • Substantial Evidence • Must meet criteria and demonstrate realistic capacity to develop • Property owner interest letters, recent development examples, etc. • Affirmatively Furthering Fair Housing (AFFH) • Avoid concentrations of affordable units in low resource areas • No Net Loss • Maintain sites to always accommodate lower -income categories • Can't deny a project for not including affordable units • 15-30% buffer recommended for each income category I, CITY OF NEWPORT BEACH FOCUS AREAS • TNIM j +• � �i' �`"y{� �� :fir.. �/'�� frl, '�_ _ _ 4�5 ' , yy •'ti+�t' IF • 'e: R a 41 73 YVC71�1111 vwl�vvpvl 4 Loy1 ote 1 74 3 Center Canyon4 t~ s 6/8/21, three options presented; City Council directed to develop alternative with higher buffer and rezones 6/22/21, two alternatives presented; City Council directed to proceed with Option "B" ■ Total development potential of 9,119 units, including 1,000 ADUs and the former Banning Ranch 10/26/21, HCD's findings reported to City Council ■ HCD primarily took issue with 1,000 ADUs, the use of Banning Ranch as an opportunity site, and Charter Section 423 as a constraint I, CITY OF NEWPORT BEACH 2/8/22, based on HCD's findings, City Council adopted with increased units across all Focus Areas to offset a reduction of 760 ADUs and the loss of Banning Ranch ■ Total development potential of 10,138 (w/o Banning Ranch) 4/26/22, HCD's findings reported; City Council directed to include additional sites with property owner interest 9/13/22, City Council adopted updated final Housing Element with additional sites ■ Total development potential of 10,403 (w/o Banning Ranch) ✓10/5/22 HCD issued certification letter I, CITY OF NEWPORT BEACH Table R-1: Summary of RHNA Statu-s and Sites Inventory E xtriE rn a ly ,above Lowy �� Lbw f�+l adera#� Moderate T�ta I Income Ir1��rr�e Lour In cone InCorn e 2021-2029 RHNA 1, 4 !2 6 930 1, 0 5c) 1,409 4,945 RHNA Credit (Units Built) -BD I BD 1 BD 70D 7BD Total RHNA Obligations Sites Avai table 1,456 1 !930 1 1,050 1,409 4,845 Projects in the Pipeline 175 32 1,455 1.662 Accessory Dwel lira Units 163 72 5 240 51h CyCle Situ 0 287 40 32 / Remainlrh4 RNNA 2,049 ES9 — 2,707 Airport Area Environs I f3 258 1+546 2, Rezone� West Newport Mesa � �2 111 664 1�107 I�e2o n p De-ve r-Westcliff Rezone 15b 52 313 521 N ew port Cente r Re zone 732 244 1,463 2,439 Comte Ca rr o n Re2o n e 383 153 995 1,530 Total Potential Capacity+ of 21+3 76 81g 4+!951 8,174 Rezones TOTAL POTENTIAL 2-+714 10209 6+451 1Dp4D3 aEVE LOPIKIENT CAPACITY Sites 5utplus/Shortfall +32;8 +155 +5+072 +50559 Percentage Buffer 14 15 360 115 • If No Net Loss is triggered, must identify and rezone additional new sites within 180 days • Rezoning would force City to look elsewhere for housing sites and could jeopardize compliant status Including a buffer helps prevent No Net Loss and reduces exposure of planning for housing outside Focus Areas CITY OF NEWPORT BEACH 14 6THCYCLE HOUSING ELEMENT IMPLEMENTATION General Plan Land Use Element Amendment Provides policy support to establish rezoning for housing projects Title 20 (Planning and Zoning) Amendment Establishes Housing Opportunity Overlay Zones Creates Multi -Unit Objective Design Standards Local Coastal Program Amendment oCoastal Land Use Plan and Title 21 (Implementation Plan) oCompletes rezoning for properties in the Coastal Zone I, CITY OF NEWPORT BEACH Since Housing Element certification in 2022, we have had... Steering Committee Meetings Related to Implementation Advisory Committee Meetings Related to Implementation Land Use Subcommittee Meetings Planning Commission Meetings City Council Meetings Drafts of the Implementation Language Posted The Newport Beach Community City Council Members Diane B. Dixon (2022) Duffy Duffield (2022) Joy Brenner (2022) Kevin Muldoon (2022) Mayor Will O'Neill Mayor Pro Tern Joe Stapleton Brad Avery Eric Weigand Noah Blom Lauren Kleiman Robyn Grant Planning Commissioners Eric Weigand (2022) Lauren Kleiman (2022) Peter Koetting (2022) Sarah Klaustermeier (2022) Chair Curtis Ellmore Vice Chair Mark Rosene Brady Barto David Salene Jon Langford Lee Lowrey Tristan Harris Former General Plan Update Steering Committee Members Chair Nancy Gardner James Carlson Catherine O'Hara Ed Selich Debbie Stevens Larry Tucker Paul Watkins Diane B. Dixon (Ex-Officio) Housing Element Update Advisory Committee Members Chair Larry Tucker Jeff Bloom Susan DeSantis Paul Fruchbom Beth Kiley Geoffrey LePlastrier Stephen Sandland Debbie Stevens Michelle Thrakulchavee Will O'Neill (Ex-Officio) Current General Plan Update Steering Committee Members Chair Nancy Gardner Kimberly Carter Phillip Brown General Plan Advisory Committee Members Co -Chair Jeremy Evans Co -Chair Arlene Greer Nicholas Acevedo Dennis Baker Curtis Black Matthew Brady James Carlson Jeff Cefalia Annie Clougherty Susan DeSantis David Guder Lynn Hackman Laird Hayes Charles Klobe Ruth Kobayashi Scott Laidlaw Katie Love Anthony Maniscalchi Thomas Meng Jim Mosher Maxwell Pearson General Plan Advisory Committee Members (Cont.) Robert Rader Harrison Rolfes Nancy Scarbrough Amber Snider Debbie Stevens Graham Wahlberg Christy Walker Paul Watkins Lori Williams City Staff Members Grace Leung Seimone Jurjis Jim Campbell (Retired) Jaime Murillo Benjamin Zdeba Dan Campagnolo Aaron Harp Yolanda Summerhill Deb Gerdy Leilani Brown Tony Brine (Retired) Brad Sommers Consultants Kimley-Horn & Associates, Inc. Kearns & West, Inc. OVERVIEW OF TODAY'S ITEM PLAN � • 9/13/22, Council adopts 6th Cycle Housing Element • 10/5/22, HCD certifies Housing Element as compliant ACTION • 4/18/24, Planning Commission public hearing (Rezoning) • 7/9/247 City Council study session • 7/23/24, City Council public hearing (Rezoning) I, CITY OF NEWPORT BEACH 20 7/23/24 CITY COUNCIL ACTIONS Environmental Clearance • Certified the Program Environmental Impact Report (PEIR) Coastal Zone Consistency • Authorized submittal of Local Coastal Program Amendment ALUC Consideration • Overrode ALUC's determination of inconsistency General Plan Land Use Element Amendment • Determined Charter Section 423 vote is precluded by state law and amended Land Use Element I, CITY OF NEWPORT BEACH 21 7/23/24 CITY COUNCIL ACTIONS (CONY.) Housing Element Amendment • Initiated narrowly focused Housing Element amendment And introduced Ordinances that would... ✓provide zoning for residential on housing opportunity sites ✓establish multi -unit objective design standards City of Newport Beach 2021-2029 HOUSING ELEMENT omen ae. tmiro� 4gend Neueing appwmrysges WenaVl�aanl ze^¢) ' ..g �m^Po Pa I,sneaweaar .: ,�a�zo^eam�,tlary ® BC wa.Nuwa ® 9R �x.nmss v HO-1 Airport Area Environs Area - V8��95 W menax mo° n a^rs w1 orowa r g tl g connecgans Nraugn or a ang th tleMopIft s°e, or more acwe 22 Section 3 Revise the analysis surrounding Charter Section 423 as an impediment to housing Newport, ;Together. EWPO,gr ; a r i Section 3: HOUSING CONSTRAINTS, RESOURCES, AND AFFIRMATIVELY FURTHERING FAIR HOUSING Ixgumeer mix giml xe �y em�sa unrmnnxM guru g rxo .q 3a Section 4 Revise the implementing actions to remove the Charter Section 423 vote �,EWPORr Newport, ,:Together. _ 23 • 7/26/24, Draft amendment posted online oOne comment letter received • 8/2/24, Sent to HCD for compliance review ✓8/20/24, Received letter from HCD confirming continued compliance with adoption of the amendment City of NewPartE6each _ - CNY of NawP�rt ��h .u.. ,..�,,�i CITY OF NEWPORT BEACH DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT Sarlamento. CA 85611 *' '�� (81612fi12911 (FN(1916)261]453 August 20, 2024 Seimone Jul 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 611'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 considenng and incorporating comments where appropriate. 24 Still Protecting Our Newport (SPON) filed two lawsuits... Claiming the General Plan Land Use Element Amendment violates City Charter Section 423 2 9 5 ] 8 9 10 11 12 13 14 IS 16 1] IB 19 20 21 22 23 24 25 26 2] 28 3ENNDER L KELLER (SBN W12) jkel.@kellemMerkmm BEN3AMM R BARRON (SBN 25]094) SHAM kellemodeek.cmn SHAUN A. HOTMG (SBN 260656) shoring R/ANrandLELLm 183M AI—ALLP 18360 Von Karmen Avenue, Sw. 930 Wine, Califomu 92fi12 Telephone: (949)4]6-8]00 Fauamile: (949)4]6-09R0 At STRL PIIEEOOMO Petitioner, TECfMG OUR NE WPORT SUPERIOR COURT OF CALIFOMIA COUNTY OF ORANGE STB PROTECTING OURNEWPORT,enon- Case No. profit orgm"vmion, VERIFIED PETITION FOR WRIT OF Pettioner. MANDATE CITY OF NEWPORT BEACH,—...E...SDICTION Rasp—, Claiming approval of the Housing Element violates the California Environmental Quality Act (CEQA) 1 —FER L. EELLER(SBN-12) jkelles@kelkmvdeAe.com 2 BENJAMM RBARRON (SBN 25]094) 3 bSAQe. HlmOMe(SwBmN MUM 260656) 4 hELL NDERLrEleL.cLoPm JudgeNRNCmkk 1930VoA Korman Avenue, Suite 930 3 ( 47 Lvine.Califo 92<x k0 Telephone: 9)4]6-8]00 6 Facsimile: (%949)4]6-0900 T Aum forPenn— STRLPROTECTMGOUR NEWPORT 8 9 10 11 SUPERIOR COURT OF CALIFOIA RN COUNTYOFORANGE 12 IS 14 STILL PROTECTING OUR NEWPORT,a vw-pmfit orgmizeriom IS Perino , 16 1] v CITY OFNEWPORT BEACN, 18 Respondent. 19 20 21 M 23 25 26 2] 28 Case No. 30-2024-0142 178 1 LU YM-C1(C VERIFIED PETITION FOR WRIT OF MANDATE -1- FORwRIrOFMANDATE fx-15f f'E&IFIEDPmnoN Fo&wp1T OF MnNDaTE t]-t80 25 • HCD Housing Accountability Unit (HAUL is highly active with education and enforcement of State Housing Element Law • Examples of penalties: oHousing Element certification revoked (Portola Valley) oBuilding permit moratoria (Beverly Hills and Encinitas) oPublic litigation with the State Attorney General's Office (Fullerton and Huntington Beach) oLoss of State grant funding (e.g., SB1 and SB2 funds) oMonthly fines up to $600k at the discretion of the AG oSB 1037 establishes additional new penalties as of 1/1/25 • Builder's Remedy used in dozens of cities, including Beverly Hills, Santa Monica, Redondo Beach, La Habra, Orange, Mission Viejo 0 Signed on 9/19/24, strengthen Builder's Remedy • Reduce minimum affordability from 20% to between 13% and 7% • Eliminate affordability requirement for less than 10 units • Provide up to 3x the max density allowed by the General Plan • Provide additional density bonus incentives • Allow existing projects to convert to Builder's Remedy • Clarify timing of application for Builder's Remedy — even one day of noncompliance can allow for an application • Establish narrow criteria for disapproval • Establish penalties for stalling projects I, CITY OF NEWPORT BEACH 27 TODAY'S RECOMMENDED COUNCIL ACTIONS 1. Follow Planning Commission's recommendation to approve the HCD-reviewed Housing Element Amendment 2. Conduct second readings and adopt: ■ Ordinance No. 2024-16, to approve the rezoning ■ Ordinance No. 2024-17, to establish objective design standards ✓ Ordinances would become effective 10/25/24 ✓ Rezoning will be complete outside Coastal Zone ✓ Helps maintain compliant Housing Element and retain local control I, CITY OF NEWPORT BEACH 28 Seimone Jurjis Assistant City Manager/CDD Director 949-644-3282 sjurjis@newportbeachca.gov Jaime Murillo, AICP Deputy CDD Director 949-644-3209 jmurillo@newportbeachca.gov Benjamin M. Zdeba, AICP Planning Manager 949-644-3253 bzdeba@newportbeachca.gov I, CITY OF NEWPORT BEACH 29