Honorable Chair and Members of the Hermosa Beach City Council
Regular Meeting of July 11, 2023
Title
DISCUSSION OF GENERAL PLAN AMENDMENT (GPA 23-01) TO REVISE THE CITY’S 2021-2029 HOUSING ELEMENT (ADOPTED DECEMBER 2021) AND ASSOCIATED GENERAL PLAN SECTIONS, ZONING TEXT AMENDMENT (TA 23-02) TO EFFECTUATE PROGRAMS IN THE HOUSING ELEMENT, AND ZONE CHANGE (ZC 23-01) TO DESIGNATE HOUSING ELEMENT SITES, CHANGE ZONING FOR SITES TO ALLOW REALIZATION OF CAPACITY, AND ALIGN ZONING ON SITES WITH PLAN HERMOSA (GENERAL PLAN)
(Community Development Director Carrie Tai)
Recommended Action:
Recommendation
Staff recommends City Council receive a staff presentation, provide opportunity for public input, and discuss:
1. Revisions to the previously adopted 2021-2029 Housing Element and associated changes to the Land Use Element of the General Plan; and
2. Draft Zoning Text Amendment (TA) 23-02 and Zone Change (ZC) 23-01 to change zoning for certain sites to allow realization of housing capacity, align zoning on certain sites with the General Plan, and designate Housing Element sites on the Zoning Map.
Body
Executive Summary:
In response to the California Department of Housing and Community Development (HCD) comments on the City’s 2021-2029 Housing Element (adopted December 2021), staff prepared a revised draft Housing Element. State law requires cities to consider HCD comments and make specific findings when adopting a Housing Element amendment. State law also now requires that the City adopt zoning changes to implement the Housing Element prior to HCD certification. The purpose of City Council discussion is to review the revised Housing Element, HCD comments, public comments, and associated General Plan and zoning changes necessary to implement the Housing Element. Staff will return to the City Council at a public hearing on July 25. If adopted, staff would submit the revised Housing Element to HCD for review, approval, and certification.
Background:
State law requires that each city adopt a General Plan to guide land use and development. One mandatory component of the General Plan is the Housing Element, which describes City policies and programs for maintaining and improving existing housing and accommodating development of new housing to meet the City’s assigned share of regional growth under the Regional Housing Needs Assessment (“RHNA”).
PLAN Hermosa, the City’s General Plan, was adopted in 2017 and has a “time horizon” of 25 years. However, State law requires that the Housing Element be updated every eight years. The City’s previous Housing Element covered the planning period 2013 to 2021, which was referred to as the “5th Housing Element cycle” in reference to the five required updates that have occurred since the comprehensive revision to State Housing Element law in 1980. Every city in the Southern California Association of Governments (“SCAG”) region is required to prepare a Housing Element update for the 6th planning cycle, which spans the 2021-2029 period, regardless of when the other elements of the General Plan were adopted. The due date for the 6th Cycle Housing Element update was October 15, 2021, with a grace period of 120 days to February 15, 2022.
The City performed outreach to engage the community of the effort and discuss the “Sites Inventory” portion of the Housing Element to accommodate the assigned RHNA allocation. The City submitted a Draft Housing Element to HCD on August 6, 2021, and received a comment letter from HCD requesting additional information and analyses on October 5, 2021. The City and then-consultant addressed those comments. The City Council conducted a public hearing and adopted the Housing Element on December 21, 2021. Staff submitted the document to HCD for review as required by State Law.
On March 23, 2022, HCD sent the City a comment letter finding that the adopted 2021-2029 Housing Element needed substantial revisions to comply with State Housing Element Law. HCD requested additional revisions to the Housing Element, pertaining to the effectiveness of Housing Element programs, an Affirmatively Furthering Fair Housing Analysis, revisions to the Sites Inventory, and removing governmental constraints.
On November 3, 2022, City Council conducted a study session and supported the incorporation of residential use into commercial corridors to help meet RHNA targets. The City Council also discussed land value recapture and amending parking standards. This guided revisions to the proposed Sites Inventory.
The Planning Commission conducted a study session on March 9, 2023 to receive an update on the Housing Element progress and to provide input on the Sites Inventory sites. On March 23, 2023, the Planning Commission conducted a study session to discuss approaches to zoning, focused on including residential uses along commercial corridors.
Past Board, Commission and Council Actions
|
Meeting Date |
Description |
|
December 15, 2020 |
The Planning Commission conducted a public meeting to introduce the 2021-2029 Housing Element update. |
|
February 3, 2021 |
The City Council and Planning Commission held a joint study session to provide an overview of the Housing Element update process, explanation of the State requirements for Hermosa Beach’s RHNA, to solicit comments regarding housing needs, and to receive feedback. |
|
June 30, 2021 |
The Planning Commission held a Special Meeting to receive a presentation, hear public comments, and provide comments on the Draft 2021-2029 Housing Element. |
|
November 16, 2021 |
The Planning Commission conducted a public hearing and considered the revised 2021-2029 Housing Element and forwarded a recommendation to the City Council to adopt and authorize submittal to HCD. |
|
December 21, 2021 |
City Council conducted a public hearing, adopted the 2021-2029 Housing Element, and authorized submission to HCD. |
|
November 3, 2022 |
City Council conducted discussion and supported the incorporation of residential use into commercial corridors to help meet RHNA targets. |
|
December 5, 2022 |
Planning Commission held a special meeting to review Housing Element efforts, comments received by HCD and discuss integration of the Housing Element and Zoning Code Update efforts. |
|
January 10, 2023 |
City Council approved a Second Amendment to Miller Planning Associates contract to include Housing Element-related updates with laws concurrent with preparation of, with associated environmental review. |
|
March 9, 2023 |
Planning Commission conducted a study session to review and provide input on a revised Housing Element sites inventory meeting HCD criteria. |
|
March 21, 2023 |
Planning Commission conducted a study session to discuss rezoning approaches for Housing Element implementation. |
|
June 20, 2023 |
Planning Commission conducts public hearing, recommends that the City Council adopt the revised Housing Element, and conducts discussion on draft zoning regulations. |
Copies of staff reports and other materials from prior meetings are posted on the City’s website at: www.hermosabeach.gov/housingelement
Regional Housing Needs Assessment (RHNA) Allocation
The City of Hermosa Beach’s RHNA allocation is 558 housing units for the 6th Cycle Housing Element, which represents an eight-year planning period (2021-2029). The units are distributed among the following income categories:
|
6th Cycle RHNA by Income Category-Hermosa Beach |
|
Very Low |
Low |
Moderate |
Above Moderate |
Total |
|
232 |
127 |
106 |
93 |
558 |
The City’s historical RHNA allocation from the past several update cycles are as follows:
1984-1989 765 units
1990-1997 513 units
1998-2008 333 units
2008-2013 562 units
2013-2021 2 units (10 Rehabilitated)
HCD Letter-March 23, 2022
The March 23, 2022 HCD letter (Attachment 5) required additional information and analyses to bring the Housing Element into compliance with State Housing Element Law (Article 10.6 of the Government Code). Generally, HCD request that the City provide:
• A “program-by-program review” of programs in the past Housing Element cycle providing an evaluation of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness).
• An assessment of fair housing in the City (Affirmatively Furthering Fair Housing (AFFH) analysis), including how the City will promote AFFH opportunities and housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act.
• A revised Sites Inventory that complies with State Housing Element Law, achieves the City’s RHNA, and furthers fair housing, along with justification for non-vacant sites used to achieve low-income housing units.
• Revised analysis on realistic development of Accessory Dwelling Units (ADUs).
• An explanation and evaluation of local processing and permit procedures, ensuring that these procedures are transparent and objective.
• An analysis of government and non-governmental constraints on housing, as well as an analysis of methods to remove those constraints.
• Revisions to Housing Element Programs to including implementation timelines, responsible parties, and specific actions.
• Revisions addressing outstanding comments from the October 4, 2021 HCD letter.
Since mid-2022, staff and the consultant team have worked earnestly to revise and update the Housing Element, which has undergone substantial changes. Due to the substantive changes and time that has lapsed since the City Council adoption in December 2021, staff is presenting the revised Housing Element to the City Council as a study session to provide opportunity for questions and public input. A public hearing on the revised Housing Element will follow on July 25. Upon a recommendation from the Planning Commission, City Council is the decision-making body for General Plan Amendments.
Required Zoning Changes
State Housing Element Law now requires zone changes to accommodate the RHNA to be complete by the October 15, 2022 Housing Element due date. Because the City had initiated a comprehensive Zoning Code Update process, staff initially proposed to merge the Zoning Code Update with the General Plan revision. However, staffing changes and workload limitations rendered the inclusion of the entirety of the comprehensive Zoning Code Update infeasible. As such, staff is only able to pursue zoning changes related to the Housing Element at this time, with other sections of the Zoning Code Update to follow.
At its June 20, 2023 meeting, the Planning Commission conducted a discussion and provided input on the Housing Element-related Zoning Text Amendments and Zone Changes. The Planning Commission will next schedule a public hearing and after receiving public input, and considering associated environmental review, will forward a recommendation to City Council.
Discussion:
The revisions to the adopted 2021-2029 Housing Element address comments from HCD and include a revised Sites Inventory, Affirmatively Furthering Fair Housing analysis, revised analysis of opportunities and constraints, and strengthened programmatic commitments to facilitate the development and preservation of housing. The adopted Housing Element contains policies and programs to facilitate the construction, rehabilitation, and preservation of housing for all economic segments of the community; those policies and programs will remain.
Overview of the Revised 2021-2022 Housing Element
The 2021-2029 Housing Element consists of the Housing Element Policy Plan and Housing Element Technical Report divided into two volumes. The following details briefly the purpose of each section. Both the Policy Plan and Technical Report were extensively revised to respond to HCD’s comments.
The revised Housing Policy Plan provides background information and context for the Housing Element and describes the City’s policies, programs, and objectives for the 2021-2029 planning period. Housing programs have been updated to reflect current circumstances and include commitments for specific actions over the next eight years. While most programs reflect a continuation of existing City policy, some recent changes in State housing law will require the City to amend local regulations to conform to current law or other substantive actions, as described in the following programs:
The revised Housing Element Policy Plan (Attachment 1) includes:
• Added information to the Housing Element programs, including schedule of actions during the planning period, each with a timeline for implementation, as well as an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).);
• Added a summary of the City’s AFFH Place-Based strategies, to ensure that every area in the City receives systematic investment;
• Added a summary of AFFH actions.
The revised Housing Element Technical Report (Attachment 2) includes:
• Housing Needs Assessment-an analysis of the City's demographic and housing characteristics, trends, and special needs. Revisions include added information about persons with disabilities and special housing needs.
• An evaluation of resources and opportunities available to address housing issues.
• A review of governmental and non-governmental constraints to meeting housing needs. Revisions include added information about the effect of City standards and regulations on development of housing.
- Appendix A: Evaluation of the 2014-2021 Housing Element. This was revised to include a program-by-program review of accomplishments.
- Appendix B: Sites Inventory of the potential sites for housing development. This was revised to include only sites meeting the criteria for State law, along with requisite analysis on non-vacant sites.
§ Deletion of: 138 1st Street (too small), 725 10th Street (ineligible), City Hall site, 1529 Valley Drive, and 2701 Pacific Coast Highway (no longer available).
§ Addition of: Aviation Boulevard sites, 700 Pacific Coast Highway (developer interest), and 824 1st Street (developer interest).
§ Projected ADUs have been revised to 64 units over eight years to reflect actual ADUs over the past five years as well as realistic estimates.
§ The City has a remaining RHNA obligation of 494 units (221 very low, 99 low, 102 moderate, and 72 above moderate-income units).
Table II-1
Land Inventory Summary vs. RHNA
|
|
Income Category |
Total |
|
|
VL |
Low |
Mod |
Above |
|
|
RHNA (2021-2029) |
232 |
127 |
106 |
93 |
558 |
|
Accessory dwelling units |
11 |
28 |
4 |
21 |
64 |
|
Remaining RHNA |
221 |
99 |
102 |
72 |
494 |
|
Sites Inventory (Table B-4) |
355 |
168 |
80 |
603 |
|
% Buffer Above Remaining RHNA |
11% |
65% |
11% |
22% |
|
Source: Hermosa Beach Community Development Department, 2023 |
|
- Appendix C: A summary of opportunities for public participation during the preparation and adoption of the Housing Element. This was updated to include public participation opportunities since December 2021.
- Appendix D: Affirmatively Furthering Fair Housing analysis, which discusses contributing factors to fair housing issues. This was an entirely new section, necessary to comply with State law.
Proposed General Plan Changes
PLAN Hermosa’s various components must be internally consistent. The Land Use Element includes land use designations for properties. The Housing Element Sites Inventory includes allowing residential uses in areas currently designated by the Land Use Element for non-residential uses. As part of the Housing Element adoption, the Land Use Element must be updated to ensure that respective land use designations allow for residential development. The proposed changes to PLAN Hermosa are included as part of Attachment 6 and detailed below.
• Add language to the following land use designations (Community Commercial, Service Commercial, Creative Industrial, Public Facility) so that mixed use projects (including residential) would also be allowed.
• Amend the General Plan land use designation for Sites 1 and 2 from the Sites Inventory (St. Cross Episcopal Church site) from Low Density and Medium Density Residential uses to High Density Residential uses to achieve the density of 25.1- 33.0 units per acre.
Proposed Zoning Changes
As detailed in the revised draft Housing Element Program 9, the City is required to include changes to the Zoning Map and the Zoning Ordinance to effectuate programs in the Housing Element. The proposed Zone Changes are detailed below and included in Attachments 7, 8, and 9.
1) Create a Housing Element Sites Inventory Overlay (--HE) to identify Housing Element Sites Inventory sites as (--HE) on the Zoning Map. Unless otherwise changed, all sites would retain their current underlying zone.
2) Change zoning for the St. Cross Church sites (Sites 1 and 2 on the Sites Inventory) from R-1 and R-2 to R-3 (Multiple-Family Dwellings) to allow realization of capacity of 25.1-33 dwelling units per acre; and
3) Align zoning for the Civic Center sites (including City Hall and associated grounds, self-storage site, library, fire station, and the community center) with PLAN Hermosa. PLAN Hermosa designated these sites as Public Facility, with an anticipated zoning district of Public Facility to follow. These sites are currently zoned Open Space (OS), which is inconsistent with the Public Facility land use designation. The self-storage and community center sites are listed on the Sites Inventory as possibly accommodating residential density of 34-50 dwelling units/per acre, to enable two sites on the Sites Inventory to realize their development capacity.
The proposed Zoning Ordinance Text Amendment changes consist of the following:
1) Update definitions and regulations for Special Housing Types (low barrier navigation centers, emergency shelters, supportive and transitional housing, and community care facilities) to align with State law and HCD comments.
2) Amend Zoning Ordinance to broaden mixed-use development (including residential uses) to C-2, C-3, SPA-7, SPA-8, and SPA-11 RHNA Sites Inventory sites with an allowable residential density of 25.1-33 units per acre, and M-1 zone with an allowable density of 34-50 units per acre.
3) Created a Housing Element Sites Inventory Overlay (--HE) to identify Housing Element sites and to enable tracking.
4) Establish replacement housing requirements when redevelopment occurs on RHNA sites where existing units occupied by or deed-restricted for lower income households are demolished.
5) Establish a formal procedure to monitor for the No Net Loss of capacity for accommodating the RHNA, pursuant to Senate Bill 166.
6) Revise Density Bonus regulations to align with State law, which has been updated numerous times since the City adopted regulations in 2013. The revisions largely refer to State law, in an effort to remain consistent should State law be revised again.
7) Create a new zone called Public Facility (PF) to align with PLAN Hermosa, allow for Sites Inventory sites to realize capacity, and to create opportunities for private-public housing partnerships.
8) Amend the M-1 zone to be consistent with the PLAN Hermosa Creative Industrial land use designation by allowing live/work configurations as long as they are integral to a creative industrial use.
9) Restructure the lot consolidation provisions to apply to density bonus projects.
10) In response to HCD’s comment that the City’s parking standards for multi-family housing must support a variety of unit types and sizes. Staff proposes to:
• Tier multi-family parking requirements to unit sizes in multiple-family dwellings (developments with 3 units or more) by changing the current requirement from 2 spaces per unit (regardless of size) to:
- Zero to 1-bedroom: 1.5 spaces
- Two-bedroom: 2 spaces
- Three-bedroom: 2.5 spaces
• Incorporate parking maximum requirements for affordable and senior housing, as required by State law.
• Add parking standards for Special Housing Types.
• Allow mixed-use developments to submit for Parking Plans with a fee waiver to encourage sharing parking supply between daytime and evening uses.
11) Revise the reasonable accommodation procedure to be objective and predictable.
12) Amend the findings for Administrative Use Permit, which is used to review Special Housing Types, to be objective.
13) Streamline the Precise Development Permit (PDP) process and develop objective standards to minimize constraints on housing development. Tiered the PDP process to incentivize development of affordable and senior housing.
14) Add findings for the Conditional Use Permit (CUP) process to increase structure in the CUP analysis.
Other Housing Element Implementation
Accessory Dwelling Units (ADU)
City Council adopted an updated ADU ordinance to incorporate State law changes from Fall 2022. In June 2023, the City Council adopted minor changes to the ADU Ordinance, to clarify ambiguities in language relating to accessory structures and height, allowing more flexibility in adding ADUs and Junior ADUs to properties, and lifting the prohibition on roof decks. The City’s ADU Ordinance is in full compliance with State law. No actions related to ADUs are proposed at this time.
Land Value Recapture for Affordable Housing
The adopted Housing Element included Program #7, Land Value Recapture. The City is currently studying terms for a land value recapture program to capture funding for affordable housing. This program would apply to properties on the Housing Element Inventory sites that are not proposing a certain amount of affordable housing. To further the City’s ability to achieve dwelling units in all income levels in accordance with RHNA, this program would also apply to future rezoning of non-residential sites to allow the development of mixed-use or residential uses. Currently, several program components are being evaluated, including a fee that would be charged per unit or per square foot. Funds resulting from the program would serve to fund or subsidize affordable housing and public services supporting added population from additional housing. Staff anticipates returning to the Planning Commission in the immediate future to discuss incorporation of this program into the Zoning Ordinance.
Broader Application of Mixed Uses in Commercial Corridors
Subsequent to a November 5, 2022, meeting, staff has continued to evaluate the broader application of including mixed-uses (and residential uses) along commercial corridors on sites not proposed as part of the Housing Element Sites Inventory. The Planning Commission conducted a study session on March 23, 2023 to consider this approach for zoning and provided support for a broader application, as long as there was a mechanism such as a land value recapture program to ensure construction of affordable housing to serve the community. Staff continues to pursue this, along with the requisite environmental analysis for the broader approach, and plans to present it to the Planning Commission in the near future.
Environmental Determination:
During the initial adoption of the 2021-2029 Housing Element on December 21, 2021, the City found that the proposed Housing Element would not approve any development or change any land use designations; therefore, the City determined that it was exempt from California Environmental Quality Act (CEQA) per Section 15061, Review for Exemption of the CEQA Guidelines. Specifically, Section 15061(b)(3) states, in part, that a project is exempt from CEQA if “the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” The revisions to the Housing Element continue to be consistent with the initial finding that the Housing Element is exempt under CEQA per Section 15061.
At that time, staff indicated that after Housing Element adoption, additional CEQA review will be conducted as part of the required zoning amendments. The proposed zoning changes resulting from the Housing Element generally pertain to allowing residential development in place of commercial development, including in a mixed use or residential configuration. The City is currently performing an analysis to assess whether any new environmental impacts would be created as a result of replacing non-residential land uses with residential uses, with no change in base development standards (height, setbacks, etc.). The primary methodology is to perform a Vehicle Miles Traveled (VMT) analysis to determine whether the change to the mix of land uses results in additional VMT. Staff anticipates preparation of an Addendum in accordance with the PLAN Hermosa Environmental Impact Report (EIR), which will be presented to the Planning Commission in the near future.
General Plan Consistency:
PLAN Hermosa, the City’s General Plan, was adopted by the City Council in August 2017. Since the State requires General Plan Housing Elements in 8-year cycles, the last Housing Element for the 2014-2021 cycle had been recently updated and was not included in the development of PLAN Hermosa. Upon adoption, the 2021-2029 Housing Element will become a component of the PLAN Hermosa General Plan. The purpose of the Zoning Ordinance is to implement the General Plan.
Public Notification:
For the June 20, 2023, Planning Commission public hearing, a legal ad was published on June 8, 2023 in the Easy Reader, a newspaper of general circulation, in accordance with the Municipal Code and State law. Approximately 1,500 emails were sent to community members included on interest lists for the Housing Element and Zoning Update. During the public hearing, 12 members of the community provided verbal comments. Staff also received four written comments. Most of the comments pertained to the St. Cross Church site. Subsequent to the June 20, 2023 Planning Commission public hearing, the City has received numerous inquiries about the St. Cross Church site as well as the Housing Element process.
For the current agenda item, approximately 1,500 emails were sent to community members that are included on interest lists for the Housing Element and Zoning Update. As of the writing of the report, staff has received no public comments.
Fiscal Impact:
There is no fiscal impact associated with the recommended actions.
Attachments:
1) Revised Housing Element Policy Plan (Redlined)
2) Revised Housing Element Technical Report (Redlined)
3) Revised Housing Element Policy Plan
4) Revised Housing Element Technical Report
5) March 23, 2022 HCD Letter
6) General Plan Map Changes / PLAN Hermosa Redlined Changes
7) Draft Zone Change Maps
8) Draft Zoning Text Amendment
9) Red-lined Zoning Changes
10) Existing Zoning Map (For Reference Only)
11) Link to December 15, 2020 Planning Commission meeting
12) Link to February 21, 2021 Joint City Council/Planning Commission meeting
13) Link to June 30, 2021 Planning Commission meeting
14) Link to November 16, 2021 Planning Commission meeting
15) Link to December 21, 2021 City Council meeting
16) Link to November 3, 2022 City Council meeting
17) Link to December 5, 2022 Planning Commission meeting
18) Link to March 9, 2023 Planning Commission meeting
19) Link to March 23, 2023 Planning Commission meeting
20) Link to June 20, 2023 Planning Commission meeting
Respectfully Submitted by: Carrie Tai, AICP, Community Development Director
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager