HomeMy WebLinkAboutHousing Element UpdateCITY OF NEWPORT BEACH
PLANNING COMMISSION STAFF REPORT
June 19, 2008 Meeting
Agenda Item No. 4
SUBJECT: Housing Element Update (PA2008 -078)
■ General Plan Amendment No. 2008 -003
PLANNER: Gregg Ramirez, Senior Planner
(949) 644 -3219, gramirez @city.newport- beach.ca.us
PROJECT SUMMARY
State law requires that local jurisdictions update the Housing Element of the General
Plan in accordance with identified planning periods. This update covers the 2008 -2014
planning period. The Housing Element contains goals, polices and programs related to
the development, maintenance and improvement of the city's housing stock.
Additionally, it includes identification of the adopted Regional Housing Needs
Assessment (RHNA), housing opportunities and constraints. '
The Planning Commission and subsequent City Council hearing in July are intended to
be informational only. Following the City Council hearing, staff will incorporate any
changes and forward the document to the State Department of Housing and Community
Development (HCD) for review. Following receipt of HCD's comments (60 -90 days),
staff will determine how best to incorporate any requested changes and then bring the
Element back to the Planning Commission and City Council for formal review and
adoption. The element will then go back to HCD for certification.
RECOMMENDATION
Discuss draft Housing Element and provide comments and recommend any changes to
the City Council.
INTRODUCTION
In accordance with state law, the draft Housing Element has been prepared for the
2008 -2014 planning period. Typically, each planning period is 5 years however, HCD
extended the period due to state budgetary constraints. The current project schedule is
as follows:
June -July 2008 — Planning Commission and City Council Hearings
July 2008 — Submittal of Housing Element to State Department of Housing and
Community Development (HCD)
Housing Element Update
June 5, 2008
Page 2
Fall 2008 - Planning Commission and City Council Hearings following review by
HCD (includes CEQA)
Fall 2008 — Submittal of Final Adopted Housing Element to HCD
Status of Current (2000 -2008) Housing Element
Following the adoption of the comprehensive general plan update and subsequent voter
approval of Measure V, staff submitted the updated Housing Element to HCD for
review. Since the element was adopted by the City Council and not certified by HCD,
the status became "out of compliance". HCD responded with a request that additional
information be included. Their request included: further detailed discussions about
approved, pending and other potential housing projects necessary to clearly
demonstrate that the identified areas were suitable locations for housing development; a
detailed discussion of Measure V and Charter section 423 and their effect on future
housing projects; a discussion of how the Interim Development Review process works
for projects with zoning that is inconsistent with General Plan land use designations;
and a very detailed parcel specific Housing Site Location table (Appendix H5)
necessary to comply with a recent legislative change.
Staff responded with a revised element and HCD responded with an additional letter
(September 2007) requesting more clarification on a few items. With the release of the
RHNA allocation in summer of 2007 and requirement that an updated element for the
2008 -2014 planning period be prepared, staff analyzed the RHNA allocation and the
task of working on the update rather than pursuing certification of an element that would
soon be superseded.
DISCUSSION
Since the City's Housing Element was updated as part of the comprehensive General
Plan update in 2006 staff had an excellent template to work with. The areas of focus
while drafting the update were:
• Updates to the narrative and statistical sections
• The 2006 -2014 Regional Housing Needs Assessment (RHNA)
• Goals, policies and programs
• Consistency with other land use and regulatory documents.
• Public outreach
A more detailed list highlighting the draft changes and an underlined /strikeout version of
the element was provided to the Commission at its June 5th meeting.
Narrative and Statistics
The narrative and statistical sections (pages 1 -80) are generally self explanatory.
Information related to demographics, housing stock, affordability, special needs
Housing Element Update
June 5, 2008
Page 3
population groups, development constraints and an inventory of Land Suitable for
Residential Development are included to provide the basis for the goals, polices and
programs. The primary differences between this draft and the existing element are the
updates to demographic and other statistics, the expanded discussions requested by
HCD during their review of the adopted element and a more in -depth discussion of the
special needs housing as required by SB2.
Regional Housing Needs Assessment (RHNA)
One of the fundamental aspects of the Housing Element is that it must address the
City's RHNA and demonstrate where this additional housing may be located. Therefore,
a detailed inventory and analysis is included in the draft (pages 38 -67). This analysis
shows that Newport Beach does have sufficient sites to provide for the City's share of
regional housing need in this planning period. Since the inventory is consistent with the
Land Use Element, the identified sites would not be subject to a vote pursuant to
Charter Section 423.
� Above.
Very Low Low I Moderate Moderate ': Total'
389 319 359 702 1,769
22% 18% 20% 40% 100%
Polices and programs designed to help ensure a variety of housing types will be
constructed and that housing affordable to all income levels will be preserved and
constructed are included under Goals 2, 3 and 4.
Goals, Policies and Programs
The goals, polices and programs (pages 95 -105) are the foundation of the Housing
Element. The goals provide the end result sought by the City; the polices provide
general guiding language to assist in decision making and describe the general course
of action that will be taken to achieve the goal; the programs are specific activities that
will be undertaken that are necessary to implement a policy and make the goal a reality.
Table H42 on page 5 -84 of the draft provides an overview of the accomplishment
associated with each program and whether the program remains appropriate to retain.
Since the Element received exhaustive review in 2006, only a few necessary changes
were identified. The changes are a result of the need to provide additional actions
necessary to achieve the stated goals and indicate to HCD the specific tasks that will be
undertaken. The following table includes notable changes.
Housing Element Update
June 5, 2008
Page 4
Notable Housina Program Revisions and Additions
Housing Program 2.2.1 (Revised)
Require a proportion of affordable housing in new
residential developments or levy an in -lieu fee. The
City's goal over the five -year planning period is for
an average of 15 percent of all new housing units
to be affordable to very low—, low -, and moderate -
income households. The City shall either
(a) require the payment of an in -lieu fee, or
(b) require the preparation of an Affordable
Housing Implementation Plan (AHIP) that specifies
how the development will meet the City's affordable
housing goal, depending on the following criteria for
project size:
1. Projects of 50 or fewer units shall
have the option of preparing an AHIP or
paying the in -lieu fee.
2. Projects where more than 50 units
are proposed shall be required to prepare
an AHIP.
City of Newport Beach is in the process of
developing an Affordable Housing Ordinance to
implement the Inclusionary, Requirements
described above. The City has retained a
consultant to determine the appropriate levels of in-
lieu fees and to review the existing inclusionary
requirements. It is anticipated that the Ordinance
will be adopted in the summer of 2008.
Implementation of this program will occur in
conjunction with City approval of any residential
discretionary permits or Tentative Tract Maps. To
insure compliance with the 15 percent affordability
requirements, the City will include conditions in the
approval of discretionary permits and Tentative
Tract Maps to require ongoing monitoring of those
projects.
Housing Program 2.2.2 (New)
Periodically review the City's Inclusionary Housing
Old 2.2.2 is now. 2.2.4
Requirements to ensure that the City's in lieu fee is
adequate to support the development of affordable
projects.
Housing Program 2.2.3 (New)
Develop a brochure of incentives offered by the
Old 2.2.3 is now 2.2.5
City for the development of affordable housing
including fee waivers, expedited processing,
Inclusionary Housing requirements, and density
bonuses and other incentives. Provide a copy of
this brochure at the Planning Counter, the website
and also provide a copy to potential developers.
Develop the brochure by the end of 2008.
Housing Element Update
June 5, 2008
Page 5
Housing Program 2.2.11 (New)
The City will adopt a Density Bonus Ordinance to
be reflective of changes that have occurred to State
Law (Government Code Section: 65915- 65918.
This will be accomplished as part of the City's
comprehensive Zoning Code update to be
completed in the summer of 2008.
Housing Program 5.1.6 (New)
As part of the City's comprehensive revision to the
Zoning Ordinance in 2008, the City will comply with
the provisions of SB 2. Specifically, the City will
identify a zone or zones where emergency shelters
are allowed as a permitted use without a
conditional use permit or other discretionary perm t.
Housing Program 5.1.7 (New)
Encourage the development of day care centers
and community parks as a component of new
affordable housing constructed as part of the
requirements of the City's Inclusionary Housing
Ordinance.
Recommended Changes to the May 2008 Draft
Following publication of the draft, staff has determined that Housing Program 3.1.2
should be revised. The new language clarifies that the City will comply with state law
rather than specify that the density bonus is applied only to affordable units built in
excess of the those required by Program 2.2.1 (see preceding table). Housing Program
2.2.11 (New) states that the City will adopt a Density Bonus Ordinance consistent with
state law. That ordinance will provide the details related to when a project is eligible for
a bonus or other concessions.
Existing language:
Housing Program 3.1.2 When a residential developer agrees to construct housing for
persons and families of very low, low and moderate income above mandated requirements, the
City shall either (1) grant a density bonus as required by state law, or (2) provide other incentives
of equivalent financial value.
Proposed Language:
Housing Program 3.1.2 When a residential developer agrees to construct housing for
persons and families of very low, low and moderate income, the City shall grant a density bonus
and/or provide other incentives as required by state law.
Consistency with Other Policy and Regulatory Documents
General Plan
All elements of the General Plan are written to be consistent and complementary. All
housing opportunity sites identified in the inventory (pages 38 -67) and Appendix 4 are
consistent with the Land Use Element.
Housing Element Update
June 5, 2008
Page 6
Coastal Land Use Plan
Several areas included in the inventory are not consistent with the Coastal Land Use
Plan. These include the bay fronting and inland mixed -use properties along Mariners
Mile, mixed -use and residential in Lido Marina Village and some mixed -use portions of
both Balboa Village and Cannery Village. Staff continues to work closely with Coastal
Commission staff on the LCP amendments with the goal of getting all amendments
approved this summer.
Should the Coastal Commission reject some or all of the proposed amendments to the
CLUP, the Housing Element would have to be amended to remove those areas from the
Inventory of Land Suitable for Residential Development and revise other portions
accordingly.
Zoning Code
Staff continues to work on the Zoning Code rewrite which includes several new zoning
districts that are needed to implement the various General Plan and CLUP land use
designations. Staff expects to have a public review of the draft code to the General
Plan /Local Coastal Program Implementation Committee this summer. The draft will
include zoning use and development regulations consistent with the Land Use Element
and the CLUP.
Planned Community Districts
Three planned community districts contain a major portion of potential housing sites.
The recent adoption of the North Newport Center Planned Community created zoning
and general plan consistency for a large portion of Newport Center. The new planned
community allows up to 430 dwelling units.
Koll Center Newport and Newport Place in the Airport Area are the other PC zoned
districts that will require amendment to become consistent with the general plan. Both
Koll and Conexant have submitted development plan applications that propose
residential and mixed -use development regulations. Both applications will be reviewed
for consistency with all general plan policies.
Public Outreach
On March 318t, staff held two public workshops. The afternoon session focused on
those issues pertinent to developers while the evening session provided information of
interest to residents and service providers. Staff received valuable input at both session
and found the perspectives presented by developers, service providers, low- income
advocates and residents valuable.
Housing Element Update
June 5, 2008
Page 7
An additional public workshop was held on June 11th. The staff presentation focused on
the goals, polices and programs contained in the draft. Topics of public input included
compliance with SB2 (Fair Share Zoning Bill) and the count of the homeless population,
use of the In -Lieu Fee fund, the preservation of "at risk" affordable units and what can
be done to retain them and the housing inventory sites. Staff and consultants are
discussing that input and will present any suggested changes at he hearing.
Public outreach that cannot be overlooked is what occurred over four years during the
comprehensive general plan update. The identification of the sub -areas and locations
for housing, beyond what was allowed in the previous general plan as well as policies
and programs to provide affordable housing, were the subjects of many public
workshops, General Plan Advisory Committee meetings and Planning Commission and
City Council hearings. The plan adopted by the City Council and approved by a vote of
the public (Measure V) is consistent with the inventory in the draft Housing Element.
Environmental Review
This hearing is informational only and no action is to be taken at this time. Prior to
formal adoption, CEQA documents will be prepared and required hearings held.
Public Notice
A 1/8h page display add appeared in the daily Pilot advertising the June 5th hearings
That hearing was continued to June 19, 2008. Additionally, attendees of the June 11 .
public workshop also notified of the hearing and e-mail notification was provided to
those persons/organizations on the Housing Interest List.
Prepared by: Submitted by
Greg ami ez, Senior fanner
EXHIBITS
1. Letter received from Orange County Housing Providers — Includes letter to BIA
from HCD