City of Hermosa Beach - File #: REPORT 23-0665

Honorable Mayor and Members of the Hermosa Beach City Council

Regular Meeting of November 14, 2023

Title

ADOPTION OF AN ORDINANCE AMENDING THE ZONING MAP (ZONE CHANGE (ZC) 23-01) AND TITLE 17 OF THE HERMOSA BEACH MUNICIPAL CODE (ZONING TEXT AMENDMENT (TA23-02)) TO EFFECTUATE PROGRAMS IN THE 2021-2029 HOUSING ELEMENT AND DETERMINE 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)

Body

Recommended Action:

Recommendation

Staff recommends City Council:

1. Waive the full second reading and adopt by title only an Ordinance of the City of Hermosa Beach, California, amending the Zoning Map (Zone Change (ZC) 23-01) and an Ordinance amending Title 17 of the Hermosa Beach Municipal Code (Zoning Text Amendment (TA23-02)) to effectuate programs in the 2021-2029 Housing Element and determine that the actions are consistent with the PLAN Hermosa Final Environmental Impact Report pursuant to the California Environmental Quality Act (CEQA) (Attachments 1 and 2); and

2. Direct the City Clerk to print and publish the summary ordinances in a newspaper of general circulation within 15 days following adoption and post it on the City’s bulletin for 30 days.

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Executive Summary:

At its October 24, 2023 meeting, City Council introduced and waived full reading of ordinances amending the Zoning Map and Title 17 of the Hermosa Beach Municipal Code to effectuate programs in the 2021-2029 Housing Element. The City Council deferred addition of Section 17.39.050 from the draft ordinance pertaining to Land Value Recapture to a future date.

Background:

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.

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.

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 17, 2023	Planning Commission reviewed minor revisions to the Zoning Text Amendment discussed on September 19, 2023 and adopted a resolution reflecting those revisions.
October 24, 2023	City Council approved Zone Change 23-01 and Zone Text Amendment 23-02, moving Planning Commission recommendation and deferred Section 17.39.050 from the Draft Ordinance relating to Land Value Recapture.

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 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 1.

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 R2-A-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. The proposed Zoning Text Amendment language (Attachment 2) 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 designating the Community Development Director or designee as the reviewing body for reasonable accommodation applications with objective criteria. Language pertaining to “neighborhood character” was also removed to respond to HCD comments about eliminating subjectivity in the reasonable accommodation procedure.

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 Centers, Residential Care Facilities, and Supportive Housing for up to 50 units would be 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.

Land Value Recapture Program

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.

At its October 10 and October 24, 2023 meetings, City Council conducted discussions on the LVR program and directed staff to present more information. Staff is in the process of working with the City’s consultant, Kosmont Companies to prepare a more comprehensive LVR analysis and fee structure. Staff anticipates returning to the City Council with a follow-up discussion in the coming weeks.

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.

Environmental Review

Pursuant to the California Environmental Quality Act (CEQA), the City evaluated the, 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.

Public Notification

Notices and Summary of Ordinances No. 23-1470 and 23-1471 were posted on the City of Hermosa Beach website on November 3, 2023 under City News & Press Releases.