Honorable Chair and Members of the Hermosa Beach Planning Commission
Regular Meeting of September 19, 2023
Title
CONSIDERATION AND RECOMMENDATION FOR GENERAL PLAN MAP CHANGE, ZONING CHANGE (ZC 23-01), AND ZONING TEXT AMENDMENT (TA23-02), TO EFFECTUATE PROGRAMS IN THE HOUSING ELEMENT, AND DETERMINATION THAT THE ACTIONS ARE CONSISTENT WITH THE PLAN HERMOSA FINAL ENVIRONMENTAL IMPACT REPORT PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(Community Development Director Carrie Tai)
Recommended Action:
Recommendation
Staff recommends the Planning Commission:
1. Receive a staff presentation;
2. Conduct a public hearing and solicit public comments; and
3. Adopt Resolutions recommending that the City Council adopt the General Plan Amendment Map Change (GPA 23-01), Zoning Text Amendment (TA 23-02) and Zone Change (ZC 23-01) to change the land use designation and zoning for certain sites to allow realization of housing capacity, align zoning on certain sites with the General Plan, designate Housing Element sites on the Zoning Map, and update the zoning ordinance to implement Housing Element policies.
Body
Executive Summary:
The City Council adopted the revised 2021-2029 Housing Element on August 8, 2023. State law requires that the City complete zoning updates to effectuate the Housing Element prior to obtaining State certification of the Housing Element. The purpose of the Planning Commission hearing is to review the General Plan and zoning maps and text changes necessary to implement the Housing Element and make a recommendation to the City Council. These zoning amendments are required to facilitate the creation of housing to meet the Regional Housing Needs Assessment (RHNA), align regulations with State law, as well as broaden mixed-use development on Housing Element sites.
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 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.
At its July 18, 2023, meeting, the Planning Commission conducted another discussion on a revised draft zone text amendment and zoning changes. The Planning Commission discussed a the proposed Precise Development Plan review authority tiering system, a proposed increased height limit for the Manufacturing (M-1) zone, proposed Mixed-Use Development Standards, and the impact of the Land Value Recapture program on future development projects.
At its August 15, 2023 meeting, the Planning Commission conducted a discussion on a revised draft zone text amendment. The Planning Commission provided feedback on the proposed Live/Work standards in the M-1 zone, Land Value Recapture Program tiering system, Public Facilities height standards, Precise Development Plan review authority tiering system, bike storage in the mixed-use zone, along with some clarification on zone language. Staff has further evaluated and revised these provisions, which are summarized under the discussion section of the report.
Past Board, Commission and Council Actions
|
Meeting Date |
Description |
|
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. |
|
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. |
|
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 adopt the Housing Element and also discussed zoning text amendments. |
|
July 18, 2023 |
Planning Commission conducted a study session to discuss the proposed Zoning Text Amendment for Housing Element implementation. |
|
August 8, 2023 |
City Council conducted a public hearing and adopted the revised 2021-2029 Housing Element. |
|
August 15, 2023 |
Planning Commission conducted a study session to discuss the proposed Zoning Text Amendment for the Housing Element implementation. |
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
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. The General Plan Map change would redesignate nine St. Cross Episcopal church parcels [1900 Monterey Boulevard, 1908 Monterey Boulevard, 1914 Monterey Boulevard, 1730 Loma Drive, 1734 Loma Drive, 1854 Loma Drive, 1902 Loma Drive, 4183-016-037 (Private Parking Lot), 4183-016-038 (Private Parking Lot)], as MDR - Medium Density Residential. These nine parcels are part of 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. (Attachment 2).
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. The proposed Zoning Map changes are detailed below and included in Attachment 3.
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; and
2) Change zoning for fifteen St. Cross Episcopal church parcels [1732 Monterey Boulevard, 1736 Monterey Boulevard, 1818 Monterey Boulevard, 302 19th Street, 1900 Monterey Boulevard, 1908 Monterey Boulevard, 1914 Monterey Boulevard, 1718 Loma Drive, 1722 Loma Drive, 1730 Loma Drive, 1734 Loma Drive, 1854 Loma Drive, 1902 Loma Drive, Parking Lot (4183-016-037), Parking Lot (4183-016-038).] to R2A - Medium Density Residential (22) to align with the Housing Element Sites Inventory to allow realization of capacity; 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
Proposed Zoning Text Amendment
The City is required to include changes to the Zoning Ordinance to effectuate programs in the Housing Element. Based on previous Planning Commission study sessions, the proposed Zoning Text Amendment language (Attachment 4) is summarized with the following changes:
1) Update definitions and regulations for Special Housing Types to align with State law and California Department of Housing and Community Development (HCD) comments. The following Special Housing Types were added or revised in the Zoning Code:
• Low Barrier Navigation Centers. This term is being introduced to the Zoning Code and is included in Section 17.04 (Definitions) and added as a permitted use in the C-1, C-2 and C-3 zones (Section 17.26.030).
• Emergency Shelters. The existing definition, located in Section 17.04, was revised and the process was relocated to a more appropriate location in the Zoning Code (17.42.210). The parking standards (17.44.020) were modified to include parking for staff, and the use was expanded to the R-3 zone. All of the changes made were to be incompliance with State law.
• Supportive and Transitional Housing.
§ The Supportive Housing definition was updated and the Transitional Housing definition was replaced to be in compliance with State law.
§ Outdated terms were revised to reflect the new term Supportive and Transitional Housing as a permitted use in all residential zones.
§ The use and process were expanded to be permitted in the Commercial zones depending on the size of the operation (17.26.030)
§ The parking standards were updated to align with the parking requirements for a residential use.
§ Two new sections were created (17.42.220 and 17.42.230) to provide process for Large Residential Care Facilities and Supportive Housing.
• Residential Care Facilities. Large and Small Residential Care Facilities and Residential Facility, Assisted Living are replacing Medical Care Facility and definitions are being added to Section 17.04. These uses will be permitted within the Residential and Commercial zones and the permit and operation requirements are being added in Section 17.42.230. Parking standards are reflected in 17.44.020.
2) Create 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 density 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.
3) Update the 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, the following amendments are proposed:
• Amend 17.28.010 (M-1 Specific purposes). In the M-1 zoning 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):
§ Retain the 35-foot height limit, but remove a two-story limit to facilitate residential development in accordance with the Sites Inventory.
o Remove language related to oil and gas operations.
• Amend Section 17.28.020 (M-1 Permitted uses.) to allow work/live configurations as long as they are integral to a creative industrial use, in line with PLAN Hermosa.
4) Create a new zone called Public Facility (PF), Section 17.29, to align with PLAN Hermosa. The proposed PF zone includes permitted uses and development standards that support appropriate land uses such as government facilities, institutions, and certain qualified residential uses needed to implement the Housing Element Sites Inventory sites. At the August 15, 2023 Planning Commission meeting, the Planning Commission expressed concern with staff’s proposal to exclude a height limit for the zone. In response to the concerns, a 35-foot height limit was added, but acknowledging existing buildings like Community Center) that may already exceed the limit.
5) Create a Housing Element Sites Inventory Overlay (--HE) to identify Housing Element sites and to enable tracking. 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). The -HE Overlay establishes a formal procedure to monitor for the No Net Loss of capacity for accommodating the RHNA, pursuant to Senate Bill 166. Based on the Planning Commission feedback at the July 18, 2023 and August 15, 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 17.39.060 (Short term rentals prohibited) to prohibit short term rentals on any residential unit created on a site zoned (--HE).
• Establish replacement housing requirements when redevelopment occurs on RHNA sites where existing units occupied by or deed-restricted for lower income households are demolished.
• Add 17.39.050 (Land Value Recapture for Affordable Housing), which would require a fee for residential or mixed-use development any non-residentially-zoned parcel, with exemptions if project proposals meet minimum percentages of affordable units. The proposed thresholds are: 10% very low income; 15% low income; or 20% moderate-income levels. The LVR Program would also allow for combination of different levels of affordability, and could be pro-rated if the project includes fewer affordable units than the minimum percentage. Additional discussion is below.
6) 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 work/live in the M-1 zone. Based on Planning Commission feedback Section 17.40.180 (Mixed-use development) was amended to include the following:
• Include clarifying language around sidewalks, walkways and vehicular and bicycle parking.
• Clarify confusing exception categories, remove ambiguous language, update setbacks, building design guidelines and building height standards.
• Expand long-term bicycle storage for residential and non-residential uses, including regulations and revise standards.
7) Revise Density Bonus regulations (17.42.100) 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, to remain consistent should State law be revised again.
8) Restructure the lot consolidation provisions to apply to density bonus projects. Currently, the lot consolidation provisions are located in Section 17.42.170. completely separately from the density bonus provisions in Section 17.42.100. Since the Housing Element intends for these two provisions to be coordinated, the lot consolidation provisions are proposed to be relocated into the density bonus provisions (17.42.100).
9) Create Work/Live Definition and Development Standards. Section 17.42.250 has been added to outline development standards for work/live configurations now allowed in the M-1 zoning district. Standards include permitted non-residential uses and floor plan and design configurations. During the August 15, 2023 Planning Commission meeting, the Planning Commission provided substantial feedback on the importance of preserving the existing M-1 uses. Based on the Planning Commission feedback Section 17.42.250 (Work/live developments) was amended to include the following:
• Revise Work/Live provisions to prioritize the current permitted uses in the M-1 zone, with a residential component being an accessory to the primary permitted use.
• Revise the section name from live/work to “work/live” to reflect the priority of non-residential use
10) Building Design Guidelines (Section 17.42.260) have been added to require all new mixed use and non-residential buildings to incorporate articulation every 10 feet on walls facing a public right-of-way. The design criteria outline a variety of ways to achieve building articulation to ensure development engages the street, creates visual interest and avoids a monolithic appearance. The Building Design Guidelines were introduced as part of the Comprehensive Zoning Update in August 2022 and have been incorporated in the building design guidelines. Feedback provided at the August 15, 2023 Planning Commission expressed concern design guidelines may be overreach.
11) 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. Section 17.44.020 (Off-street parking - Residential uses.) and Section 17.44.030 (Off-street parking - Commercial and business uses.) was amended to include the following:
a. Tier multi-family parking requirements to unit sizes in multiple-family dwellings (developments with 3 units or more) by changing the requirement from 2 spaces per unit to:
i. Zero to 1-bedroom: 1.5 spaces
ii. Two-bedroom: 2 spaces
iii. Three-bedroom: 2.5 spaces
b. Incorporate parking maximum requirements for affordable and senior housing, as required by State law.
i. Add parking standards for Special Housing Types.
ii. Allow mixed-use developments to submit for Parking Plans with a fee waiver to encourage sharing parking supply between daytime and evening uses.
12) Revise the reasonable accommodation procedure (Section 17.42.120) to be objective and predictable. Some notable changes include removing any discretionary action requirements, including the Community Development Director or designee as the reviewing body for reasonable accommodation applications with objective criteria.
13) Amend the findings for Administrative Use Permit (Chapter 17.55), which is used to review Special Housing Types, to be objective. Special Housing Types such as Emergency Shelters, Low Barrier Navigation Center, Residential Care Facilities, and Supportive Housing for up to 50 units are now subject to an Administrative Use Permit and reflected in the 17.26.030 Commercial Use Table.
14) Update the Conditional Use Permit process (Chapter 17.56) to include objective findings and move Criteria for Review from Chapter 17.40 to the appropriate section.
15) Revise the Precise Development Permit (PDP) (Chapter 17.58) process and add objective standards to minimize constraints on housing development. The proposed review tier is as follows:
c. Exempt from PDP:
i. Less than 1,500 square foot addition or remodel in any zone.
ii. Single Family (1 unit) residential projects.
iii. Projects including 2 dwelling units or more with an affordability or senior unit component.
• PDP Planning Commission Level:
o 2 dwelling units or more that do not have an affordability component.
o Non-residential projects
Redlined zoning text changes are included as Attachment 5.
Land Value Recapture (LVR) Program Analysis
The Housing Element included a program to capture land value gained from adding residential development capacity to parcels zoned non-residential. This program would only apply to residential or mixed-use developments (which include residential units) that do not propose a certain percentage of housing affordable to very low, low, or moderate income units.
After analysis, staff is proposing thresholds for exemption are 10% very low income, 15% low income, or 20% moderate income units in a proposed residential or mixed-use development. This percentage of very low, low, and moderate units for inclusion in a residential project to qualify for exemption from the Land Value Recapture Program fee was established based on an evaluation of local market conditions in conjunction with City and State zoning and entitlement provisions. Factors evaluated include supportable lease and ownership values under the three affordability thresholds, local market rents, local dwelling unit bedroom counts and unit sizes, local property values, and State Density Bonus Law. Ultimately, the percentages were established at ratios that seek to balance the incentives to deliver one affordability threshold versus another and support the development of affordable housing units as part of a given project. The intent of the LVR program is to incentivize the development of affordable housing to meet the City’s RHNA allocation. LVR fees would be used by the City to fund potential affordable housing units or developments in the City. The required fee(s) would be set by resolution of the City Council.
Next Steps
The City Council is the decision-making body for General Plan changes, Zone Changes and Zoning Text Amendments, along associated environmental review. The Planning Commission’s action will serve as a recommendation to the City Council.
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.
Environmental Review
Pursuant to the California Environmental Quality Act (CEQA), the City evaluated the proposed General Map Change, Zoning Changes, and Zone Text Amendments against the PLAN Hermosa Final Environmental Impact Report (EIR) (State Clearinghouse Number 2015081009), certified on August 22, 2017, and determined that an Addendum to the PLAN Hermosa Final EIR is the appropriate document for disclosing changes to the PLAN Hermosa EIR in accordance with Section 15162 through of the CEQA State Guidelines, in that there are no significant effects not previously discussed in the PLAN Hermosa Final EIR. An Addendum has been prepared and is included as Attachment 1.
Public Notification:
For the September 19, 2023, Planning Commission public hearing, a legal ad was published on September 7, 2023 in the Easy Reader, a newspaper of general circulation. 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. A courtesy letter along with the public notice was mailed to all property owners of sites identified on the Sites Inventory List. Public notification materials are included as Attachment 6. As of the writing of the report, staff has received no public comments.
Attachments:
1) Addendum to PLAN Hermosa Final Environmental Impact Report
2) Appendix A: HB_HE_TransportationTechMemo_July2023
3) Resolution - PC Recommendation on General Plan Map Change
a) General Plan Map Change from 8/15
4) Resolution - PC Recommendation on Draft Zoning Changes
a) Draft Ordinance
i) (--HE) Overlay Map from 8/15
ii) St. Cross Map from 8/15
iii) Civic Center Map from 8/15
5) SUPPLEMENTAL - Draft Ordinance: Zoning Text Amendment
a) Draft Ordinance - Zoning Text Amendment
6) SUPPLEMENTAL - Cumulative Proposed Zoning Text Changes (Red-lined)
7) Public Notification Package
8) Link to the November 16, 2021 Planning Commission Staff Report
9) Link to the December 21, 2021 City Council Staff Report
10) Link to the December 5, 2022 Special Planning Commission Staff Report
11) Link to the March 21, 2023 Planning Commission Staff Report
12) Link to the June 20, 2023 Planning Commission Staff Report
13) Link to the July 11, 2023 City Council Staff Report
14) Link to the July 18, 2023 Planning Commission Staff Report
15) Link to the August 8, 2023 City Council Staff Report
16) Link to the August 15, 2023 Planning Commission Staff Report
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