Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of October 24, 2023
Title
CONSIDERATION OF GENERAL PLAN AMENDMENT
(GPA 23-01), INTRODUCTION OF ORDINANCES TO AMEND
THE ZONING MAP (ZONE CHANGE (ZC) 23-01), AND AMEND
TITLE 17 OF THE HERMOSA BEACH MUNICIPAL CODE
(ZONING TEXT AMENDMENT (TA23-02)) TO EFFECTUATE
PROGRAMS IN THE 2021-2029 HOUSING ELEMENT AND A
DETERMINATION THAT THE ACTIONS ARE CONSISTENT WITH
THE PLAN HERMOSA FINAL ENVIRONMENTAL IMPACT
REPORT PURSUANT TO THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA)
(Community Development Director Carrie Tai)
Recommended Action:
Recommendation
Staff recommends City Council:
1. Adopt a resolution approving General Plan Amendment (GPA 23-01) for a land use designation map change (Attachment 2);
2. Introduce by title only and waive first reading of an ordinance of the City of Hermosa Beach, California, approving a Zone Change (ZC 23-01) amending the zoning map for certain sites to allow realization of housing capacity, align zoning on certain sites with the General Plan, and designating Housing Element sites (Attachment 3);
3. Introduce by title only and waive first reading of an ordinance of the City of Hermosa Beach, California, approving Zoning Text Amendment (TA 23-02), to update the zoning ordinance to implement Housing Element policies (Attachment 4); and
4. Direct the City Clerk to publish a summary ordinance.
Body
Executive Summary:
At its August 8, 2023 meeting, City Council adopted the revised 2021-2029 Housing Element. Because the City is past the State deadline for certification of its Housing Element, State Law requires the City to complete zone changes necessary to effectuate the Housing Element prior to its certification. At its September 19, 2023 meeting, the Planning Commission conducted a public hearing and recommended City Council approve a General Plan Map change, zoning map changes, and zoning text changes to implement the Housing Element.
Background:
At its March 21, 2023 meeting, the Planning Commission conducted a study session, 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 at its June 20, 2023 meeting, a General Plan map change, draft zone text amendment, and zoning changes were introduced along with the revised draft 2021-2029 Housing Element. The Planning Commission discussed a variety of zoning related topics such as residential vehicle and bicycle parking requirements, height limits within the commercial and M-1 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 the proposed Precise Development Plan (PDP) review authority, height limit for the Manufacturing (M-1) zone, 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 and provided feedback on the proposed Live/Work standards in the M-1 zone, Land Value Recapture Program tiering structure, Public Facility zone height standards, PDP review authority, bike storage in mixed-use projects, and language clarifications.
At its September 19, 2023 meeting, the Planning Commission conducted a public hearing and recommended that the City Council approve a General Plan Map change, zoning map changes, and zoning text changes necessary to implement the Housing Element. The Planning Commission requested several revisions to the proposed Zoning Text Amendment. To memorialize the revisions, staff presented these revisions to the Planning Commission at its October 17, 2023 meeting.
At its October 10, 2023 meeting, the City Council conducted a discussion of the proposed Land Value Recapture (LVR) Program and provided feedback to staff on the proposed LVR fee. Specifically, the City Council requested a two-tier LVR fee depending on the size of property and consideration of two fees to be $76 and $104 per square foot. City Council also requested additional information on property values for commercially-zoned versus residentially-zoned properties.
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, HCD comments, and discussed integration of the Housing Element and Zoning 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, recommended the City Council adopt the Housing Element, and 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. |
|
September 19, 2023 |
Planning Commission conducted a public hearing and recommended the City Council adopt the Housing Element General Plan Map Changes, Zoning Map Changes, and Zoning Text Amendment, with several minor revisions. |
|
October 10, 2023 |
City Council conducted a discussion on the proposed Land Value Recapture Program and provided feedback to staff. |
|
October 17, 2023 |
Planning Commission reviewed minor revisions to the Zoning Text Amendment discussed on September 19, 2023 and adopted a resolution reflecting those revisions. |
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 City Council at its August 8, 2023 meeting. 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 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;
2) Change zoning for 15 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 changes made were in incompliance with State law.
• Supportive and Transitional Housing.
§ The Supportive Housing definition was updated and the Transitional Housing definition was replaced 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 parking requirements for residential use.
§ Two new sections were created (17.42.220 and 17.42.230) to provide a process for Large Residential Care Facilities and Supportive Housing.
• Residential Care Facilities. Large and Small Residential Care Facilities, Residential Facility, and Assisted Living are replacing Medical Care Facility and definitions are being added to Section 17.04. These uses would 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, 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 innovation and creative economic activity. The following amendments are proposed:
• Amend 17.28.010 (M-1 Specific purposes). In the M-1 zoning district, the City proposes to update 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.
• Amend Section 17.28.030 (M-1 Standards and limitations):
§ Retain the 35-foot height limit.
§ Remove a two-story limit to facilitate residential development in accordance with the Sites Inventory.
§ Remove language related to oil and gas operations.
• Amend Section 17.28.020 (M-1 Permitted uses.) to allow work/live configurations consistent with creative industrial uses, in line with PLAN Hermosa. (Additional discussion about the work/live configuration is further below in the staff report).
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. This includes a 35-foot height 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. Regulations of the --HE Overlay include the following:
• Add 17.39.030 (Minimum Density) to clarify that (--HE) minimum residential density criteria are obligations 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 percent very low income; 15 percent low income; or 20 percent moderate-income levels for sites identified on the Housing Element Sites Inventory with five or more units; and one affordable unit for smaller sites. The LVR Program would also allow 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.
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. separate 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 would 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 to be allowed in the M-1 zoning district. This is intended to implement the Creative Industrial direction specified by PLAN Hermosa but also include possible residential uses. Standards include permitted non-residential uses and floor plan and design configurations.
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.
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 two spaces per unit to:
i. Zero to one-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 (CUP) process (Chapter 17.56) to include objective findings and move Criteria for Review from Chapter 17.40 to the CUP 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 (one unit) residential projects.
iii. Projects including two dwelling units or more with an affordability or senior unit component.
d. PDPs continued to be reviewed by the Planning Commission:
i. Two dwelling units or more that do not have an affordability component.
ii. Non-residential projects.
Redlined zoning text changes are included as Attachment 5.
Land Value Recapture Program (Attachment 6)
The Housing Element included a program to capture land value gained from adding residential development capacity to parcels zoned for non-residential development. The LVR 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.
The proposed Zoning Text Amendment includes the proposed thresholds for exemption from the LVR Program fee. The thresholds for exemption were 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.
Proposed Fee
If approved, the required fee(s) are set by resolution of the City Council. The LVR Summary prepared by Kosmont Companies indicates that a per square foot fee of $66 and $94 was justifiable. The analysis considered the value of land with residential development potential, the likelihood for State density provisions to be used, construction costs, operational costs, and various types of affordable housing funding. Acknowledging the infancy of the program and uncertain market conditions, Kosmont Companies recommended a fee of $60 per square foot.
At its October 10, 2023 meeting, the City Council conducted a discussion of the LVR Program and provided feedback to staff to propose a two-tier fee structure for properties depending on their minimum density designation on the Housing Element Sites Inventory:
• Three units or more-$104 per square foot
• One to two units-$76 per square foot.
Kosmont Companies is in the process of assessing whether this fee potentially impacts development. Once assessed, staff will return with a fee resolution reflecting the fee structure.
Use of Land Value Recapture Funds
The use of funds generated through the LVR Program would be used to fund the creation of affordable housing in the City. This could be in the form of development subsidies for construction of new affordable housing or funding towards conversion of existing units to affordable housing. All funds would be for the purpose of funding or subsidizing affordable housing and public services supporting added population from additional housing.
Furthermore, the City could also contribute to the South Bay Regional Housing Trust, which is in the process of being established by the South Bay Cities Council of Governments (SBCCOG). SBCCOG is pursuing grant funds to secure resources to form the Housing Trust, expected in late 2023. City Managers from cities within the South Bay, including Hermosa Beach, have worked for over a year on developing the framework and bylaws for a Housing Trust. The Housing Trust would be created to fund housing to assist the homeless populations, persons and families of extremely low, very low, and low income within the South Bay.
General Plan Consistency
PLAN Hermosa, the City’s General Plan, was adopted by the City Council in August 2017. Upon adoption, the 2021-2029 Housing Element became a component of PLAN Hermosa. The General Plan Amendment, Zone Change, and Zoning Text Amendment implement the following policies of the Housing Element.
Issue Area 3 - Provision of Adequate Sites for New Housing
Policies:
• 3.2 The City will continue to evaluate the General Plan and zoning to ensure residential development standards are adequate to serve future development.
• 3.3 The City will continue to review current zoning practices for consistency with the General Plan as a way to facilitate new mixed-use development within or near the commercial districts.
Issue Area 4 - Removal of Governmental Constraints to Housing
Policy:
• 4.4 The City will continue to evaluate its Zoning Ordinance and General Plan and remove governmental constraints related to development standards. These may include, but not be limited to, parking requirements, allowing affordable housing on commercial sites, new standards for mixed-use development, lot consolidation incentives, and senior housing requirements.
Furthermore, the Land Value Recapture Program implements Program 7 of the Housing Element, as follows:
Program 7. Land Value Recapture
Program Description: When land is rezoned to allow higher intensity uses, the value of that property typically increases. Land value recapture refers to a policy requiring that a portion of the increased value be dedicated to a public benefit, such as affordable housing. In connection with the rezoning process required under Program 9, the City will conduct a feasibility study to determine whether a land value recapture program should be established for the properties to be rezoned, and if so, what specific requirements are appropriate.
Environmental Review
Pursuant to the California Environmental Quality Act (CEQA), the City evaluated the proposed General Map Change, Zoning Changes, and Zoning 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.
For the October 24, 2023, City Council public hearing, a legal ad was published on October 12, 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 on social media. A courtesy letter along with the public notice was mailed to all property owners of sites identified on the Sites Inventory List. As of the writing of the report, staff has received no public comments.
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Attachments:
1. Addendum to PLAN Hermosa Final EIR
2. Resolution-General Plan Map Change
A) General Plan Map Change
3. Draft Ordinance-Zoning Changes
A) (--HE) Overlay Map
B) St. Cross Map
C) Civic Center Map
4. Draft Ordinance-Zoning Text Amendment
5. Cumulative Proposed Zoning Text Changes (Red-lined)
6. Kosmont Analysis-Land Value Recapture
7. Link to the November 16, 2021 Planning Commission Staff Report
8. Link to the December 21, 2021 City Council Staff Report
9. Link to the December 5, 2022 Special Planning Commission Staff Report
10. Link to the March 21, 2023 Planning Commission Staff Report
11. Link to the June 20, 2023 Planning Commission Staff Report
12. Link to the July 11, 2023 City Council Staff Report
13. Link to the July 18, 2023 Planning Commission Staff Report
14. Link to the August 8, 2023 City Council Staff Report
15. Link to the August 15, 2023 Planning Commission Staff Report
16. Link to the September 19, 2023 Planning Commission Staff Report
17. Link to the October 10, 2023 City Council Staff Report
18. Link to the October 17, 2023 Planning Commission Staff Report
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