Honorable Chair and Members of the Hermosa Beach Planning Commission
Regular Meeting of August 15, 2023
Title
STUDY SESSION TO DISCUSS HOUSING ELEMENT RELATED GENERAL PLAN MAP CHANGE (GPA 23-01), ZONING MAP CHANGE (ZC 23-01) AND ZONING TEXT AMENDMENT (TA 23-02), TO EFFECTUATE PROGRAMS IN THE HOUSING ELEMENT
(Community Development Director Carrie Tai)
Recommended Action:
Recommendation
Staff recommends the Planning Commission:
1. Receive a staff presentation;
2. Solicit public comments; and
3. Provide feedback on proposed amendments.
Body
Executive Summary:
This is a continued discussion on zoning changes to effectuate programs in the 2021-2029 Housing Element. This discussion reflects Planning Commission feedback and public input from the June 20, 2023 and July 18, 2023 meetings. Staff will also present a General Plan Map change to reflect the adopted Housing Element Sites Inventory. Staff requests that the Planning Commission receive public input, conduct a discussion, and provide feedback on the proposed amendments.
Background:
Because the City is past the State deadline for certification of its Housing Element, State Law now requires the City to complete zone changes prior to certification of the Housing Element. The City was in the process of conducting a Comprehensive Zoning Code Update to implement PLAN Hermosa which was adopted in 2017. Staff initially proposed to merge the Comprehensive Zoning Code Update with the Housing Element Update, however, as the deadline has passed and resources are limited, staff is only able to include zoning changes related to the Housing Element at this time. As a note, where possible, staff has incorporated provisions from the Comprehensive Zoning Code Update.
The Planning Commission conducted a study session on March 21, 2023, where staff introduced possible zoning approaches to implement the Housing Element and discussed land use policies to facilitate the creation of housing. Staff incorporated the Planning Commission feedback and on June 20, 2023, a draft zone text amendment and zoning changes were introduced along with the draft housing element policy plan and technical report. The Planning Commission discussed a variety of zoning related topics such as residential vehicle and bicycle parking requirements, height limits within the commercial and manufacturing zones, and mixed-use development standards. Planning Commission feedback was incorporated into a revised draft and presented during the July 18, 2023 Planning Commission study session.
The Planning Commission discussed a variety of topics. such as concern with the Planning Commission’s review authority, the proposed amendments to the Manufacturing (M-1) zone including the proposed height limit of 45 feet, and clarity of the Mixed-Use development standards. The Planning Commission also received a presentation on the Land Value Recapture program and discussed potential impacts on future development projects. Staff has further evaluated and revised these provisions, which are summarized under the discussion section of the report.
The City Council conducted a discussion of the Housing Element on July 11, 2023, during which the community expressed concerns about density and the proposed land use designation of the St. Cross Episcopal church site. At the discussion, City Council conducted a public hearing on August 8, 2023 and adopted the Housing Element modifications. The modifications were: 1) adding two sites - 8-26 Pacific Coast Highway and 1706/1734 Pacific Highway to the Sites Inventory; and 2) changing the proposed land use designation of the St. Cross Episcopal church site to Medium Density Residential and the zoning district to R-2A, which is discussed in this staff report.
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 in response to the comment letter received from California Department of Housing and Community Development (HCD), requesting added sites revisions, 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. |
|
September 13, 2022 |
City Council approved a contract with a new consultant, Veronica Tam and Associates, Inc. (VTA) to assist on the Housing Element. Since that time, VTA has been working with staff and Miller Planning Associates to coordinate efforts on the Housing Element and Zoning Code Update. |
|
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 conducted a public hearing and recommended the City Council review and adopt the Housing Element and associated General Plan Amendments. |
|
July 11, 2023 |
City Council conducted a discussion item on the revised 2021-2029 Housing Element and provided direction to staff. |
|
July 18, 2023 |
Planning Commission conducted a study session to discuss rezoning approaches for Housing Element implementation. |
|
August 8, 2023 |
City Council conducted public hearing and adopted the revised 2021-2029 Housing Element. |
Copies of staff reports and other materials from prior meetings are posted on the City’s website at: www.hermosabeach.gov/housingelement <http://www.hermosabeach.gov/housingelement>
Discussion:
Proposed General Plan Changes
As part of the Housing Element adoption, the General Plan Map must be updated to ensure that land use designations reflect the Sites Inventory contained within the Housing Element adopted by the City Council on August 8, 2023. For Sites 1 and 2 from the Sites Inventory (St. Cross Episcopal church site), the General Plan land use designation would be amended from Low Density to Medium Density Residential with a density of 22 - 25 units per acre (Attachment 1).
Proposed Zoning Changes
The City is required to include changes to the Zoning Map and the Zoning Ordinance to effectuate programs in the Housing Element. These are detailed below and included in Attachments 2, 3, and 4.
The proposed Zone Changes would:
1) Create a Housing Element Sites Inventory Overlay (--HE) and designate sites as Housing Element Sites Inventory sites on the Zoning Map. Unless otherwise changed, all sites would retain their current underlying zone (Attachment 3); and
2) Change zoning for the St. Cross church sites (Sites 1 and 2 on the Sites Inventory) to R2-A to allow realization of capacity (Attachment 2); and
3) Align zoning for properties that are zoned inconsistently with the General Plan by rezoning the Civic Center sites as Public Facility, in line with PLAN Hermosa land use designation of Public Facility. The Civic Center sites are currently zoned as Open Space; however, their current use is inconsistent with the Open Space designation (Attachment 4).
Proposed Zoning Text Amendment
Based on the discussion from the July 18, 2023 Planning Commission study session, staff has incorporated the following changes to the proposed Zoning Text Amendment language (Attachment 5):
New Zone - R2-A Medium Density Residential Zone (22)
At its August 8, 2023 City Council meeting, the City Council directed staff to revise the Housing Element Sites Inventory to change the proposed zoning for the St. Cross Episcopal church site (Sites 1 and 2 on the Sites Inventory) to a lower zoning designation. Given the minimum density requirements for the City as well as the City’s RHNA allocation for lower-income sites, staff proposed a zoning district similar to the City’s existing R2 zoning, but with a specified minimum density of 22 dwelling units per acre and a maximum density of 25 dwelling units per acre. Existing R2 zoning allows for development of up to 25 dwelling units per acre. This new zone, titled R2-A - Medium Density Residential (22) is proposed as Chapter 17.13.
Mixed-Use Development
Amend the Zoning Ordinance to revise and 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 residential or live/work in the M-1 zone. Based on the Planning Commission feedback at the July 18, 2023 Planning Commission, the following amendments are proposed:
• Amend 17.40.180.B (Mixed-use Development) to clarify confusing exception categories presented in the July 18, 2023 Planning Commission draft amendments. Updates include removal of ambiguous language, updating setbacks, building design guidelines, building height standards.
• Amend 17.40.180.H (Mixed-use development) to expand long-term bicycle storage for residential and non-residential uses, including regulations.
Housing Element Sites Inventory Overlay (--HE)
Staff proposes to create a Housing Element Sites Inventory Overlay (--HE) to identify Housing Element sites, enable tracking, and to ensure certain provisions of state law are met. This entails adding the (--HE) designation to existing zoning (for example, a property zoned C-3 would be zoned C-3-HE to identify it as a Housing Element Sites Inventory site. Based on the Planning Commission feedback at the July 18, 2023 Planning Commission, the following amendments are proposed:
• Amend 17.39.030 (Minimum Density) to clarify that (--HE) minimum residential density criteria is an obligation of the City to ensure that adequate sites remain to accommodate the City’s RHNA allocation.
• Add 17.39.050 (Short term rentals prohibited) to prohibit short term rentals on any residential unit created on a site zoned (--HE).
M-1 Light Manufacturing Zone
PLAN Hermosa, adopted in 2017, designated the geographical area of the current M-1 zoning district as Creative Light Industrial. This designation is intended to create a suitable environment for small businesses that rely on manufacturing or production to operate, but also to foster new innovation and creative economic activity. Based on the Planning Commission feedback at the July 18, 2023 Planning Commission, the following amendments are proposed:
• Amend 17.28.010 (M-1 Specific purposes). In the M-1zoning district, the City proposed to update the Zoning Ordinance language to reflect the lighter nature of the Creative Industrial use and also to decrease the subjectivity of language that was used in PLAN Hermosa. One reason for this is that the Housing Element identified the need to revise review processes to ensure objectivity about potential uses. All proposed changes are to Section 17.28.020 “Specific Purposes” section of the Zoning Ordinance description of the M-1 District to reflect the creative industrial nature more closely. Further, there were regulations written into the “Specific Purposes” section that are redundant with other sections, so were deleted. These proposed changes do not lessen regulatory standards. However, given community concerns with removal of certain descriptive language, staff has revised the proposed changes to retain language about neighborhood compatibility.
• Amend Section 17.28.030 (M-1 Standards and limitations):
a. For building height, remove the proposed change to a 45-height limit (and retains the 35-foot height limit). The draft amendments retain the proposed removal of a two-story limit to facilitate residential development in accordance with the Sites Inventory.
b. Remove language related to oil and gas operations.
Live/Work Definition and Development Standards
Section 17.42.250 has been added to outline proposed development standards for live/work configurations now allowed in the M-1 zoning district. Standards include permitted and prohibited commercial uses and floor plan and design configurations.
Building Design Guidelines
Section 17.42.260 has been added to with proposed guidelines on new building articulation and design standards. All mixed use and non-residential buildings will be subject to these design criteria to ensure development engages the street, creates visual interest and avoids a monolithic appearance. These guidelines were introduced as part of the Comprehensive Zoning Update in August 2022 and have been incorporated in this building design guidelines.
Precise Development Plan (PDP) Review Process
In response to HCD’s comments to streamline the production of housing, staff has proposed updating Section 17.58. To incentivize the creation of affordable and senior housing and streamline residential development, a modified review authority tiering system is proposed. Building Design Guidelines were added to address Planning Commission’s priority for well-designed and articulated residential and nonresidential development, which are applicable to project with over 20% affordable projects or senior projects, which are exempt from Planning Commission review. The proposed review tier is as follows:
• Exempt from PDP:
o Less than 1,500 square foot addition or remodel in any zone.
o Single Family (1 unit) residential projects.
• PDP Staff/Director Level:
o Projects that qualify for Density Bonus
o Projects including 5 dwelling units or more with an affordability or senior unit component.
o Projects with only 2-4 dwelling units
• PDP Planning Commission Level:
o 5 dwelling units or more that do not have an affordability component.
o Non-residential projects
The Planning Commission provided feedback at the July 18, 2023 Planning Commission meeting, expressing concerns on the proposed staff review of Precise Development Plan (PDP) process for projects with 2-4 residential units. Staff is seeking additional Planning Commission discussion on whether small scale residential projects should continue to be reviewed by the Planning Commission. Specifically, staff is seeking information as to whether specific residential design standards should be incorporated.
Land Value Recapture Update
The adopted Housing Element included Program #7, Land Value Recapture. The Planning Commission received a status update on July 18, 2023 on the program development. The program would apply to properties on the Housing Element Sites Inventory sites that do not propose a certain amount of affordable housing. Staff continues to evaluate program components are being evaluated, including the threshold of affordability before the program would be triggered. The fee structure would ultimately be adopted by the City Council via a fee resolution and would include a unit cost (per dwelling unit or per square foot). All funds would be for the purpose of funding or subsidizing affordable housing and public services supporting added population.
Staff proposes adding Section 17.39.050, with a proposed structure as follows:
• For larger sites (designated capacity of 5 or more units), projects proposing 100% market rate dwellings units would be subject to the program fee. Projects proposing a minimum threshold (still to be determined) of affordability would be exempt from the fee. There would also be a formula for proportional affordability.
• For a smaller site with a designated capacity of 3-4 units, projects constructing to minimum density in the Sites Inventory and proposing at least one moderate-income unit would be exempt from the fee.
• For a smaller site with a designated capacity of 1-2 units, projects constructing to minimum density in the Sites Inventory would be exempt.
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 current agenda item, the City posted an announcement on the City’s Housing Element Update information page (www.hermosabeach.gov/housingelement <https://www.hermosabeach.gov/our-government/city-departments/community-development/plans-programs/housing-element-update/>) and sent an e-blast to community members that are included on interest lists for the Housing Element and Zoning Update. The interest lists include 2,800 email addresses to date. As of the writing of the report, staff has received no public comments.
Attachments:
1) GP Amendment - Monterey Blvd 08.10.23 v1
2) Zone Change - Monterey Blvd 08.10.23 v2Proposed Zoning Text Amendment (Red-lined)
3) Zone Change - Housing Element Sites Inventory Overlay 08.10.23
4) Proposed Zone Change Map Civic Center
5) Proposed Zoning Text Amendment (Red-lined)
6) Link to November 2, 2022 Special Planning Commission Staff Report
7) Link to March 21, 2023 Planning Commission Staff Report
8) Link to June 20, 2023 Planning Commission Staff Report
9) Link to July 11, 2023 City Council Staff Report
10) Link to the July 18, 2023 Planning Commission Staff Report
11) Link to August 8, 2023 City Council Staff Report
12) SUPPLEMENTAL - HB Chamber Letter 8/15/23
13) SUPPLEMENTAL - eComment from Jon David 8/15/23
14) SUPPLEMENTAL - Article Link 1 from Jon David 8/15/23
15) SUPPLEMENTAL - Article Link 2 from Jon David 8/15/23
16) SUPPLEMENTAL - eComment from David Grethen 8/15/23
17) SUPPLEMENTAL - eComment from Laura Pena 8/15/23
18) SUPPLEMENTAL - eComment from Carolyn Petty 8/13/23
Respectfully Submitted by: Maricela Guillean, Associate Planner through Carrie Tai, AICP, Community Development Director
Legal Review: Patrick Donegan, City Attorney
Approved: Carrie Tai, AICP, Community Development Director