Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of August 8, 2023
Title
PUBLIC HEARING ON GENERAL PLAN AMENDMENT
(GPA 23-01) TO REVISE THE CITY’S 2021-2029
HOUSING ELEMENT (ADOPTED DECEMBER 2021)
AND ASSOCIATED GENERAL PLAN SECTIONS
AND DETERMINATION THAT THE REVISED
HOUSING ELEMENT IS EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
(Community Development Director Carrie Tai)
Recommended Action:
Recommendation
The Planning Commission recommends City Council conduct a public hearing and adopt a resolution approving General Plan Amendment (GPA) 23-01 consisting of revisions to the previously adopted 2021-2029 Housing Element and associated changes to the Land Use Element of the General Plan and determine that the revised Housing Element is exempt from the California Environmental Quality Act (Attachment 1).
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 (as HCD must ultimately certify the City’s amended Housing Element) and make specific findings when adopting a Housing Element amendment. The Planning Commission forwarded a recommendation of approval on June 20, 2023. At its July 11, 2023 meeting, City Council conducted a discussion and received substantial public input. The public hearing item on the current agenda is to consider the adoption of the revised Housing Element, suggested sites for the Sites Inventory, and public comments. 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. During this time, staff sent notifications to property owners with eligible site criteria and met with numerous property owners on potential inclusion into the Sites Inventory. The City submitted a Draft Housing Element to HCD on August 6, 2021 and received a comment letter from HCD on October 4, 2021 requesting additional information and analyses. 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 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.
Between November 2022 and March 2023, there were various City Council and Planning Commissions meetings to discuss the approach to the Housing Element sites and 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.
At its June 20, 2023 meeting, the Planning Commission reviewed the draft Housing Element amendment and recommended that the City Council adopt the revised Housing Element, along with associated General Plan changes.
On July 11, 2023, due to the time that had lapsed since the City Council adoption in December 2021, staff presented the Housing Element as a discussion item to City Council. The City Council received a staff presentation on the Housing Element update framework, the progress of the revised Housing Element since December 2021, and the components of the revised Housing Element. After extensive discussion on the Sites Inventory, City Council supported community members’ offers to provide site suggestions to staff for consideration, in accordance with the state’s eligibility criteria.
|
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, explanation of the state requirements for RHNA, to solicit comments regarding housing needs. |
|
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, HCD comments, and 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 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. |
|
July 11, 2023 |
City Council conducts discussion item on the revised 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>.
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 9) 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 requested 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 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 to revise the Housing Element, which has undergone substantial changes. Pursuant to its action at its June 20, 2023, the Planning Commission has forwarded a recommendation to City Council to adopt the revised Housing Element. During this public hearing, City Council should discuss the Planning Commission’s recommendation, as well as the findings on the community-submitted sites.
Required Zoning Changes
State Housing Element Law now requires zone changes to accommodate the RHNA to be complete prior to certification of the Housing Element. Because the City had initiated and was underway with 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 at this time. As such, staff is only currently able to pursue zoning changes related to the Housing Element, 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, AFFH 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 would 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. Redlined versions are included as Attachments 6 and 7.
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 were 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 2) 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; and
• Added a summary of AFFH actions.
The revised Housing Element Technical Report (Attachment 3) 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 (infrastructure), 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 is an entirely new section, necessary to comply with state law.
Suggestions for Additional Sites (Attachment 5)
Subsequent to the July 11, 2023 City Council meeting, the City received several requests for sites to be included on the Sites Inventory List. Staff and the consultant team evaluated the sites, with the following assessment.
1) 8 to 26 Pacific Coast Highway-Mitsubishi site (Hermosa Beach side)-0.7 acres. The property owner submitted a letter of interest indicating that this site was not encumbered by the remainder of the dealership with the Redondo Beach city limits. Due to its size, the site qualifies for lower-income RHNA and could be included in the Sites Inventory based on the density of 25.1 dwelling units per acre for 18 units.
2) 200 Pier Avenue-Based on the site size of 0.4 acres and with improvements in 2008, the site does not qualify for low-income RHNA allocation. The property owner submitted a letter indicating a desire to convert vacant office condominiums to residential uses, along with a conceptual sketch.
Staff and the City’s Housing Element consultant evaluated the office conversion. Based on 52 small (280-400 square feet) office condominiums with no cooking facilities, staff and the consultant team estimated that perhaps every two office condos could form one residential unit sized between 600-650 square feet. For conceptual planning purposes, this would allow the creation of 26 residential units. The allowance of 26 residential units on 0.4 acres would require a zoning district capable of accommodating 65 dwelling units per acre, twice the density of the R-3 which is 25.1 to 33 dwelling units per acre. There currently is no zoning designation in the City that allows 65 dwelling units per acre.
To allow the proposed scenario to be feasible and realistic, the City would need to commit to a Housing Element implementation program that grants a 100 percent density bonus citywide to allow conversions of existing buildings into residential uses. Currently, the highest density bonus granted by the State Density Bonus Law is 80 percent density bonus; the City would be going above and beyond the state density bonus allowance. A project would be required to offer 100 percent affordable units to achieve this density bonus. The use of the density bonus tool would then allow the property owner to request any concessions or waivers, which includes any development standard, height, parking, etc.
An official project submittal as well as a Housing Element implementation program would qualify this property towards the lower-income RHNA. Otherwise, the property qualifies under the moderate or above-moderate category.
3) 1706 and 1738 Pacific Coast Highway-At 0.3 acre, this site does not qualify for the lower-income RHNA category but could be included in the moderate or above moderate category. The property owner submitted a letter of interest.
4) 240 Pier Avenue-Abe’s Liquor-At 0.12 acre, this site does not qualify for the lower-income RHNA category.
5) 25 2nd Street-At 2,868 square feet-At 0.066 acre, this site does not qualify for the low-income RHNA category. Existing zoning allows for residential units on-site in conjunction with a mixed-use project.
Inclusion of these sites would require the Housing Element document to be updated, and internal consistency revisions as well. As such, staff has also provided information pertaining to likely areas of Housing Element revisions post-adoption and prior to submittal to HCD for review the certification. This information, along with property owner communications, is included as Attachment 5.
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 residential development. The proposed changes to PLAN Hermosa are included as part of Attachment 4 and consist of adding language to the following land use designations so that mixed use projects, including residential, would also be allowed-community commercial, service commercial, creative industrial, and public facility.
Planning Commission Recommendation
At its June 20, 2023 meeting, the Planning Commission adopted a resolution (Attachment 9) forwarding a recommendation of approval. This resolution included the revised Housing Element and General Plan text and map changes for specific sites. Due to the possibility of the Sites Inventory list changing, staff has not included any General Plan map changes at this time. Furthermore, should City Council add additional sites to the Sites Inventory, staff would include the added sites when rezoning actions are presented to the Planning Commission.
Due to financial interests of City Councilmembers, decisions regarding specific sites on the Sites Inventory may be taken separately.
Opportunities for Public Participation
Since inception of the Housing Element Update process in December 2020, there have been numerous opportunities for public participation. The following is a sample of public meetings and do not include the numerous individual meetings, phone calls, and written correspondence on the Housing Element. This information is also detailed in Appendix C of the Housing Element, Public Participation Summary.
|
Planning Commission meeting |
December 15, 2020 |
|
Housing Needs Workshop and Study Session |
February 3, 2021 |
|
Planning Commission Meeting |
June 30, 2021 |
|
City Council Meeting |
July 27, 2021 |
|
Planning Commission Public Hearing |
November 16, 2021 |
|
City Council Public Hearing |
December 21, 2021 |
|
City Council Study Session |
November 3, 2022 |
|
Planning Commission Meeting |
December 5, 2022 |
|
Planning Commission Study Session |
March 9, 2023 |
|
Planning Commission Study Session |
March 23, 2023 |
|
Presentation at Mayor’s cleanup event |
April 10, 2023 |
|
Planning Commission Public Hearing |
June 20, 2023 |
|
City Council Study Session |
July 11, 2023 |
|
City Council Public Hearing |
July 25, 2023 |
Additionally, the City has maintained a Housing Element website, www.hermosabeach.gov/housingelement <http://www.hermosabeach.gov/housingelement> as a source for Housing Element information, including Frequently Asked Questions, links to past meetings, and drafts of the Housing Element. The City also has maintained, and distributed information to, an interested parties’ email list, with the latest reports showing approximately 2,800 registered email addresses.
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.
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 eight-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 would become a component of the PLAN Hermosa General Plan.
Public Notification:
For the August 8, 2023, City Council public hearing, a legal ad was published on July 27, 2023 in the Easy Reader, a newspaper of general circulation, in accordance with the Municipal Code and state law. Staff also posted signs at City Hall, the Community Center, and the library. Additionally, approximately 2,800 community members registered for, and received, notifications regarding for the Housing Element and zoning code update.
Fiscal Impact:
There is no fiscal impact associated with the recommended actions.
Attachments:
1. City Council Resolution for Adoption of Housing Element
2. Revised Housing Element Policy Plan
3. Revised Housing Element Technical Report
4. PLAN Hermosa Redlined Changes
5. Potential Housing Element Inclusions/Associated Changes
6. Revised Housing Element Policy Plan (Redlined)
7. Revised Housing Element Technical Report (Redlined)
8. Planning Commission Resolution 23-10
9. March 23, 2022 HCD Letter
10. Link to December 15, 2020 Planning Commission meeting
11. Link to February 3, 2021 Joint City Council/Planning Commission meeting
12. Link to June 30, 2021 Planning Commission meeting
13. Link to November 16, 2021 Planning Commission meeting
14. Link to December 21, 2021 City Council meeting
15. Link to November 3, 2022 City Council meeting
16. Link to December 5, 2022 Planning Commission meeting
17. Link to March 9, 2023 Planning Commission meeting
18. Link to March 21, 2023 Planning Commission meeting
19. Link to June 20, 2023 Planning Commission meeting
20. Link to July 11, 2023 City Council 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