Honorable Chair and Members of the Hermosa Beach Planning Commission
Regular Meeting of March 21, 2023
Title
STUDY SESSION TO DISCUSS REZONING APPROACH
FOR HOUSING ELEMENT IMPLEMENTATION
(Community Development Director Carrie Tai)
Body
Recommended Action:
Recommendation
Staff recommends the Planning Commission:
1. Receive staff presentation;
2. Solicit public comments; and
3. Provide feedback on zoning concepts to implement the housing element
Body
Executive Summary:
For this study session, staff will provide conceptual rezoning strategies to support the Housing Element programs. One of the strategies is to achieve development ability for the 558 units required to meet the assigned housing needs identified in the City’s Regional Housing Needs Assessment (RHNA). The rezoning would ensure that at a minimum, the sites identified as part of the Sites Inventory would be able to achieve an anticipated density to meet the RHNA. Staff requests that the Planning Commission conduct a discussion and provide feedback on zoning concepts.
Background:
Since late 2020, staff and consultants have been working with the Planning Commission and City Council to update the Housing Element for 2021-2029.
Past City Council and Planning Commission Actions
|
Meeting Date |
Description |
|
December 15, 2020 |
The Planning Commission conducted an initial 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 Housing and Community Development Department (HCD), added sites revisions, and recommended that the City Council adopt and authorize submittal to HCD. |
|
December 15, 2021 |
City Council adopted the Draft Housing Element and authorized its 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 for additional Zoning Code efforts to update the Zoning Ordinance with Housing Element 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. |
The City has been revising the adopted Housing Element for resubmittal to the California Housing and Community Development Department for certification. State law now requires zone changes to accommodate the RHNA to be complete within one year from the October 15, 2022 Housing Element due date. The City has also been working on a comprehensive Zoning Code Update. The rezoning approach needed for the Housing Element includes changing development standards in certain zones to allow for residential development. The purpose of this study session is to introduce possible zoning approaches to accomplish these goals, as well as discuss land use policies to facilitate the creation of housing.
Proposed Zoning Designations
The Zoning Code Update proposes new zoning designations to reflect the designations in PLAN Hermosa (adopted in 2017) and the zoning district character. For example, C-1 (Limited Business and Residential) will be called NC (Neighborhood Commercial). The discussion of potential areas for housing will be conducted using the proposed zoning designations. For reference, Attachment 3 includes Proposed Zoning Designations. Attachments 4 and 5 include the existing and proposed zoning maps, respectively. The Planning Commission previously conducted discussions on the proposed zoning map in April and August 2022; the draft proposed zoning map has not changed.
Discussion:
Rezoning to Allow for Residential Development
There are several general areas of guidance needed on the rezoning approach to allow for residential development. The revised sites inventory map and list from the March 9, 2023 Planning Commission study session are provided as Attachment 1 and 2. The Sites Inventory list includes sites that meet HCD criteria for inclusion. As the sites in non-residential zones currently do not allow residential development, the City must process General Plan Amendments and zoning changes (rezonings) to allow residential development in addition to existing uses. However, this does not preclude the City from allowing residential development on sites in addition to those on the inventory.
Geographical Boundaries
The first area of guidance is on general geographical areas appropriate for adding residential development ability to existing zoning. The concepts for the following three scenarios are illustrated below.
1) Change zoning to add residential development only for sites on the Sites Inventory. (Sites Inventory sites are outlined in bold lines.)
2)
Change zoning for a general area (marked in red outline) encompassing nodes of parcels on the sites inventory. This would be created through an overlay allowing residential development in only a portion of a zoning district.
3) Change zoning for the complete zoning district (marked in green; includes two commercial zones) to allow residential development on similarly-zoned parcels.
Factors for consideration include creating cohesive land use districts, the presence of existing boundaries (parks, roadways, public services, amenities, or topographical features), and the level of residential development capacity desired.
Sites Inventory sites are currently located in the following proposed zones:
1) Residential Low;
2) Residential Medium;
3) Community Commercial;
4) Gateway Commercial;
5) Service Commercial;
6) Downtown;
7) Light Manufacturing Zone; and
8) Public Facility.
To provide an idea of the residential development capacity that may be created by rezoning concepts, the following table provides estimations of the number of parcels for each above-mentioned scenario.
|
|
Scenario 1 Sites Inventory Only |
Scenario 2 Nodes Around Sites Inventory |
Scenario 3 Include All Non-Residential Zones |
|
Number of Parcels |
93 |
~135 |
~380 |
|
R-1 |
9 |
9 |
N/A |
|
R-2 |
6 |
6 |
N/A |
|
CC |
31 |
55 |
~190 |
|
GC |
4 |
7 |
9 |
|
SC |
12 |
17 |
21 |
|
DT |
24 |
24 |
125 |
|
M1 |
4 |
14 |
36 |
|
PF |
3 |
3 |
3 |
Type of Residential Development
The second area of guidance relates to the type of residential development potentially allowed in rezoning concepts. In general, adding the ability for residential development to existing commercial zoning will result in mixed-use (commercial and residential uses on one site) configurations. Therefore, residential development configurations include mixed-use and all-residential.
The Housing Element program indicates a general density range of 25 to 33 dwelling units per acre (du/ac) for the Site Inventory sites to fulfill the City’s RHNA. Certain zones, like the Public Facilities Zone or the Light Manufacturing zone, may support higher densities like 34-50 du/ac, since mixed-use development is less likely to occur in those zones. Note that Assembly Bill 1397 regulations indicate that zoning on the Sites Inventory sites must allow for an all-residential development project if the project includes a minimum of 20% affordable units. The Planning Commission should discuss and provide feedback for mixed-use concepts areas to be rezoned.
Housing-Related Zoning Topics:
In addition to the location and development configurations contemplated by the rezoning approaches, there are discussion of policy measures to facilitate housing.
Lot Consolidation Program
The City currently offers incentives for lot consolidation in the R-3 (Multiple-Family Residential) zone. These incentives allow for additional density when two or more parcels are consolidated into a single building site over 0.5 acre. For example, 10% of additional density is allowed if a building site of one (1) acre or more is achieved through lot consolidation. As part of the discussion of allowing residential development in non-residential zones, and in light of the Housing Element’s encouragement of lot consolidations, staff recommends that the Planning Commission discuss extending the lot consolidation incentives to all non-residential areas in which residential development will be accommodated.
Land Value Recapture
Accommodating the potential number of new units needed to meet RHNA requires introducing residential as an allowable use in the commercial zones, either as mixed use or as 100% residential with a portion of units designated for low-income or moderate-income housing.
The City’s adopted Housing Element included Program #7 for Land Value Recapture in order to redirect potential increased value derived from rezoning to be dedicated to a public benefit, such as affordable housing. Given the City’s RHNA requires affordable housing, and in support of the South Bay Housing Trust Fund, the Land Value Recapture program could potentially further the City’s ability to meet RHNA goals. The Housing Element indicated that the City would prepare a feasibility study on this Program. One method to integrate Land Value Recapture into the rezoning is to consider that new residential developments include an affordability component (on or off-site) or a fee, to further affordable housing in the community. The feasibility study would then assess the proper amount of affordable housing or fee required.
Other Housing-Related Zoning Topics
In addition to broader policy discussions regarding Housing Element implementation, staff and the consultant team are also reviewing regulations pertaining to specialized types of housing as identified by the Housing Element. These types of housing are as follows: 1) Accessory Dwelling Units; 2) Low Barrier Navigation Centers; 3) Emergency Shelters; 4) Single Room Occupancy Units; 5) Supportive and Transitional Housing; 6) Employee Housing; and 7) Senate Bill 9 (Urban Lot Splits). These are already accommodated within the City, however, staff and the consultant teams are reviewing the existing regulations to ensure compliance with State law. Should refinements be needed, they will be incorporated into the Zoning Code Update.
Next Steps:
After receiving Planning Commission and public input from the study session, the consultant team will assess the likely residential development capacity created by the preferred rezoning approach, which will inform the environmental review process. Meanwhile, the team will draft development standards to achieve the allowable densities to implement the Housing Element. Development standards consists of building envelopes, setbacks, height limits, parking requirements, open space, and other physical parameters to ensure livability. Staff will conduct a follow-up study session in May once more details are developed.
The tentative schedule below was presented previously and has been updated to reflect completed items and next steps.
• March/April 2023 - Planning Commission study sessions to:
- Present Housing Element draft sites inventory, and summary of other items that will be incorporated into the Housing Element revisions. (Completed: March 9, 2023).
- Discuss zoning approaches to accommodate housing in the sites inventory. (March 21, 2023 Study Session)
• May 2023-Planning Commission review of draft Housing Element.
• May 2023-Planning Commission study session to review draft Zoning Code Update summarizing revisions from the public and Planning Commission input.
• June 2023-Planning Commission study session to review draft Zoning Code Update (if needed).
• Summer 2023-Planning Commission adoption hearing(s) to recommend to City Council with Zoning Ordinances, Housing Element, and environmental review; and
• Late Summer 2023-City Council adoption hearing(s) to consider Zoning Code Update, Housing Element update, and CEQA review.
For more information, Housing Element project information, including prior staff reports and attachments, is available at www.hermosabeach.gov/housingelement <http://www.hermosabeach.gov/housingelement>.
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 March 21, 2023, Planning Commission study session, a total of 1,550 public notices were emailed to community members that have added contact information on interest lists for the Housing Element. As of the writing of the report, staff has received no public comments.
Attachments:
1. Sites Inventory Map
2. Site Inventory List
3. Proposed Zoning Designations
4. Existing Zoning Map
5. Proposed Zoning Map
Respectfully Submitted by: Carrie Tai, AICP, Community Development Director
Legal Review: Patrick Donegan, City Attorney
Approved: Carrie Tai, AICP, Community Development Director