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HomeMy WebLinkAboutAgenda: Study Session: General Plan Update Housing IssuesFebruary 16, 2010 SUMMARY BACKGROUND STAFF REPORT Development Services Department TO: Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director31 SUBJECT: STUDY SESSION: GENERAL PLAN UPDATE HOUSING ISSUES The objective of the study session is to provide the City Council with an update on the Housing Element portion of the General Plan project. The State Department of Housing and Community Development (HCD) require that all Draft Housing Elements be submitted for their review prior to adoption by the local jurisdiction. Prior to submitting the Draft Element to HCD, it is important for the City Council to understand the housing issues and recommendations being presented in the Draft. In 2008, the City began the process of updating the General Plan, which will replace the 1996 General Plan and the 2001 Housing Element. There were numerous meetings and workshops held throughout 2009 to discuss the Land Use Element, most particularly the density and housing numbers that the update to the General Plan would produce. Staff, the General Plan Advisory Committee (GPAC), the Planning Commission, and the City Council all ultimately agreed on the draft land use model incorporated into the General Plan, including changes to the density of the R -3 zone and allowance for mixed -use housing in certain areas. Staff believes that this land use model is a successful attempt to revitalize key portions of the City and meet community goals while also meeting State requirements for housing units and affordable housing. Because the Housing Element is the main vehicle for establishing and updating housing and land -use strategies to reflect the changing needs, resources, and conditions of the community, the law requires that the Housing Element be updated every five years. State law also requires that the Housing Element, unlike other Elements of the General Plan, must be reviewed by the State Department of Housing and Community Development (HCD) for a 60 day period prior to local approval. Many changes to State law have occurred since the last update to the Housing Element in 2001. As a result, General Plan — Housing Element Issues February 16, 2010 Page 1 the draft Housing Element has been designed to be consistent with State Housing law, the Regional Housing Need Allocation (RHNA) for local agencies under jurisdiction of the Southern California Associations of Governments (SCAG), and with the other Elements within the draft General Plan. The form of our submittal to the HCD will include the Housing Element itself, complete with goals and policies for the City's provision of Housing, and a Technical Background Appendix, which includes extensive demographic information, detailed sites inventories, and descriptions of how State law is being met through our housing policies. Both of these documents will be included in the body of the Draft General Plan, which we expect will be released in public draft form in the spring. DISCUSSION As mentioned above, there was a great deal of discussion in the past year related to density and housing in the City of Arcadia. It was determined that increasing density in the R -3 zone and allowing housing in a mixed use format in selected areas (Downtown and Live Oak) was the best way to "activate" those areas of town and meet statewide housing requirements while at the same time protecting single - family neighborhoods and lower density areas. While these changes to Arcadia's zoning standards will be forwarded to HCD for their review and input, there are additional requirements addressed by the Draft Housing Element and Technical Background Appendix that are important to discuss. They include: • Specific Types of Housing • Development Standards for the new R -3 density (30 units /acre instead of 24) and Mixed -Use Zones • Sites Inventory to meet the Regional Housing Needs Allocation Specific Types of Housing Over the past 10 years or so, numerous bills have come out of Sacramento that require cities to permit and /or allow certain housing types. While the City of Arcadia complies with all State laws, we do not have updated code language that addresses certain state - mandated housing types. Now that we are updating our Housing Element, this is the time to modernize our Plan and Code language to address these housing types. The following is a table that shows the Housing Types we will address in the Housing Element and our Zoning Code. Because of existing State law, the City would react to each of these proposed housing types in the manner listed under the "regulation" column below if it were to be submitted as a project today. The reason we list these housing types is that the draft Housing Element will specifically describe these housing types where our current Element and Ordinances do not. General Plan — Housing Element Issues February 16, 2010 Page 2 Housing Type Description Regulation Residential Care Facility 24 hour care, medical or otherwise 6 persons or fewer, allowed by right. More than 6 persons, subject to a CUP in the R -3 and C -O zones. Transitional Housing Temporary housing for individuals who use such housing for 6 months or Tess at which time a new tenant is moved in. For homeless individuals or those in treatment programs 6 persons or fewer, allowed by right. More than 6 persons, subject to a CUP in the R -3 and C -O zones. Supportive Housing No limit on stay, offsite services for health issues, disabilities, drug treatment, etc. 6 persons or fewer, allowed by right. More than 6 persons, subject to a CUP in the R -3 and C -O zones. Housing For Persons with Disabilities Fair housing practices, eliminate barriers to housing. 6 persons or fewer, allowed by right. More than 6 persons, subject to a CUP in the R -3 and C -O zones. Emergency Shelters State requires jurisdiction to allow a zone to house an emergency shelter should one be proposed in the City. Proposed to be allowed in M -1 zone (light industrial) Manufactured and Mobile Home Parks State requires that must be allowed in zones that allow residential uses Comply with State Law. Single Room Occupancy State requires jurisidictions to identify a zone to allow single- room housing. Allow in R -3 zone (Multi - family residential) Definition of Family Definition more expansive than current Arcadia definition Comply with State Law Reasonable Accommodation Rule Create a formal process to request concessions for persons with disabilities Modify existing process of Administrative Modification to be explicitly for this purpose. Second Dwelling Units State requires that second units be allowed in single- family zones. Rewrite existing guest house regulations to comply with state law and set limits on second units through development standards Development Standards for Multi - Family and Mixed -Use Zones Along with the changes to zoning and density recommended for the R -3 zone and the new mixed -use areas, the City will also need to recommend new development standards. For example, if a City changes its density from 24 units an acre to 30 units an acre, but does not change any of the development standards to facilitate this change, it is likely that HCD will not accept the Housing Element. This issue was discussed along with the reports on zoning and growth throughout 2009 and these potential changes would apply to the R -3 and Mixed -Use zones only. Some of the development standards we will include as recommendations in the Draft General Plan will include: General Plan — Housing Element Issues February 16, 2010 Page 3 • Unit size — We currently require a minimum size of dwelling unit and this may not be necessary. • Parking — For multi - family we require a total of 3 parking spaces (two for the unit and one guest space). This will likely need to be reduced for certain zones. • Setbacks — We can explore reductions in side or rear yard setbacks. • Height — We could explore increasing height standards. Sites Inventory and the Regional Housing Need Allocation (RHNA) Simply rezoning and allowing mixed -use areas at certain densities is not enough to satisfy the State concerning the RHNA. The State requires that a physical site inventory be conducted and actual locations be identified where new units at specific densities could be located. As you remember, the City of Arcadia's RHNA is 2,149 housing units, approximately 1 /2 of which need to be affordable units. These numbers are allocated within a "planning period"; in this case 2006 -2014. Therefore, the State gives credit toward the RHNA for building permits issued and units built during this planning period. As a result, the estimated number of remaining units is 1,727 for the remainder of the planning period. The staff and the consultant team have identified sites and made assumptions that estimate a capacity of up to 1,854 units toward the RHNA when a total 1,727 is needed. It is important to remember that these future assumptions of units are simply "capacity ". We are not required to actually build these units, just to provide the "capacity" to potentially allow them to be built. There is no specific formula for these estimates. For example, it is not enough for the City to simply re -zone all of the R -3 property from 24 units to 30 units and take credit for the added capacity. The Housing Element needs to provide addresses, lot sizes, and actual locations where new development at this intensity could actually occur. The State further discounts the number of units a jurisdiction can "count" by only allowing certain percentages of the maximum density to be assumed. For example, the City may have a one acre parcel currently zoned commercial that the new General Plan has changed to Mixed Use with a density of 30 units per acre. Rather than estimating that a mixed -use project could accommodate 30 units on this site, HCD may require that only 15 units for this site be applied to the overall unit count. We expect that there may be issues identified by the State that will need further analysis. However, we also believe that our submittal will be our best attempt to balance community goals of protecting residential neighborhoods and allowing growth in targeted areas over time. RECOMMENDATION This item is for information and discussion only. We will forward the Commission's recommendation and suggestions on to the City Council. Approved by: � " '^"��^-' Donald Penman, City Manager General Plan — Housing Element Issues February 16, 2010 Page 4