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HomeMy WebLinkAboutItem 12b - Revising Sixth Cycle Housing Element Adoption DATE: November 1, 2022 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director SUBJECT: RESOLUTION NO. 7468 REVISING RESOLUTION NO. 7407 (SIXTH CYCLE HOUSING ELEMENT ADOPTION) WITH A CATEGORICAL EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) Recommendation: Adopt SUMMARY The City is required by State law to update its General Plan Housing Element every eight years for certification by the State Department of Housing and Community Development (“HCD”). The City Council approved the Housing Element following receipt of public testimony and the recommendation of the Planning Commission on February 15, 2022, and directed that the adopted documents be submitted to HCD. Through their review, HCD directed that modifications and clarifying language be added to the adopted Housing Element documents, including minor technical revisions to the adopting Resolution. It is recommended that the City Council adopt Resolution No. 7468, which includes the minor technical revisions proposed by HCD. BACKGROUND The Housing Element sets forth goals, policies, and programs that address future housing needs for all income levels over a planning period of 2021-2029, which coincides with a unit count established by the Regional Housing Needs Assessment (“RHNA”). Arcadia was allocated 3,214 housing units under the RHNA for this housing cycle and the adopted documents satisfy this mandate. A Housing Element is one of eight required elements, or chapters, of a City’s General Plan document. State law requires that all cities update their Housing Element once every eight years to be in compliance with the guidelines of the State Department of Housing and Community Development (“HCD”). The City’s current prior Housing Element covered the planning period extending from 2014 to 2021, which is referred to as the “5th Housing Element Cycle” in reference to the five required updates that occurred since a Housing Element Update – Resolution No. 7468 November 1, 2022 Page 2 of 4 comprehensive revision to State law on this topic in 1980. All cities in the Southern California Association of Governments (“SCAG”) region were required to prepare a Housing Element Update for the 6th Planning Cycle, which spans the 2021-2029 time period. The SCAG region includes Los Angeles, Orange, Riverside, San Bernardino, Ventura, and Imperial Counties. The City Council completed a timely adoption of the Housing Element and associated Implementation Plan and Technical Background appendix on February 15, 2022, along with the directive that it be submitted to HCD for certification and any changes required by HCD be incorporated through an administrative process. The City submitted several iterations of the documents to HCD for review and received comments and suggested changes to clarify the documents and meet various State requirements for language and intent. Staff has addressed HCD’s proposed changes and clarifications to the Housing Element documents per the City Council’s prior direction. Even though HCD only certifies housing elements, not the adopting resolutions, HCD is requiring the City to include certain specific language in a revised Resolution as a condition of certification. With the clarifying changes having already been made to the documents themselves, HCD has indicated that the revisions to the Resolution should be the last step to achieve certification. DISCUSSION The primary language that HCD requested be added to the Resolution has to do with the expectation that much of Arcadia’s future housing will be developed on infill sites and locations that currently house non-residential uses. Although the City has a substantial track record of accommodation of infill development, transitioning commercial sites into residential, and approving zone changes to accommodate residential development, HCD requests that a specific recital be added to the Resolution to justify the City’s future strategies. This is specifically geared toward affordable housing provision. As such, the following recital has been added to the Revised Resolution: Pursuant to Government Code Section 65583.2(g)(2), based on substantial evidence set forth in the Technical Background Report of the adopted 2021 – 2029 Housing Element, any existing uses on sites identified to accommodate affordable housing are likely to be discontinued during the planning period, and therefore do not constitute an impediment to additional residential development during the period covered by the Housing Element. Any sites identified to accommodate 2020-2029 RHNA need that have existing structures, improvements and/or activities demonstrate a likelihood for redevelopment during the 2021-2029 planning period. Parcels with existing uses or activities that were not likely to be discontinued during the Housing Element Update – Resolution No. 7468 November 1, 2022 Page 3 of 4 planning period were generally removed if they had conditions suggesting continued use during the planning period; and The documents submitted to HCD by the City addressed this issue by only taking “credit” for the redevelopment of a certain percentage of sites within various zones and areas as it is not realistic to expect 100% of all areas to transition. Nevertheless, the added language provides the assurance that the identified areas will transition over time as identified in the materials. The additional language requested by HCD in the Revised Resolution includes authorization that the Staff be able to make any subsequent revisions required by HCD to the documents following the City Council action. While this was clear in the original February 2022 Staff Report, HCD wanted specific mention of this in the Resolution. The Revised Resolution also includes the declaration that the documents comply with Fair Housing regulations in compliance with the Government Code. With the added language, Resolution No. 7407 meets the requirements of HCD. As mentioned previously, a link to all of the Housing Element documents is provided below. Because of the Negative Declaration and considering all materials were previously adopted by the City Council, there is no need to specifically adopt the materials again. It is therefore recommended that the City Council adopt Resolution No. 7468 (Attachment No. 1), which includes the original adopted Resolution No. 7407 with the revisions shown. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), because it is an action that will not have an impact on the environment. (State CEQA Guidelines, Section 15378.) Even if the action were a project under CEQA, it is exempt under State CEQA Guidelines, Section 15061(b)(3) because it can be seen with certainty that the project would not have an impact on the environment. Thus, no further environmental review is required. FISCAL IMPACT There is no fiscal impact because approval of this Resolution makes only minor technical revisions that HCD has requested as a condition of certification. Failing to achieve certification of the City’s Housing Element would have unknown fiscal impacts. For additional background, the City Council’s original approval of the draft Housing Element itself does not result in a direct fiscal impact to the City. Implementation of the goals and policies within the Housing Element will lead to additional housing units within the City, which generally provide increases in property value and property taxes and a Housing Element Update – Resolution No. 7468 November 1, 2022 Page 4 of 4 positive fiscal benefit to the City. Conversely, loss of commercial property over time in favor of residential development could result in lower sales taxes and other City revenues as land uses change over time. Each zone change or other strategy that is proposed within the Housing Element Update will be reviewed by the City Council prior to adoption, and the specific fiscal impact of each action will be analyzed on a case by case basis as these recommended strategies are presented. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 7468 revising Resolution No. 7407 (Sixth Cycle Housing Element adoption) and find that the Resolution is exempt from the California Environmental Quality Act (“CEQA”). Attachment No. 1: Resolution No. 7468 (including REVISED Resolution No. 7407) Attachment No. 2: Links to Draft Housing Element, Implementation Plan, and Technical Background Report RESOLUTION NO. 7468 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, REVISING RESOLUTION NO. 7407 (SIXTH CYCLE HOUSING ELEMENT ADOPTION) WITH A CATEGORICAL EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ("CEQA") WHEREAS, California State Housing Element Law establishes the requirements for Housing Elements, and California Government Code Section 65588 requires that local governments review and revise the Housing Element of their comprehensive General Plans not less than once every eight years, and currently the State is in the "6th Cycle" of Housing Element Updates, covering the time period of 2021-2029; and WHEREAS, on February 15, 2022, a duly noticed public hearing was held before the City Council on the draft Housing Element Update, and the associated Initial Study and Negative Declaration, at which time all interested persons were given full opportunity to be heard and to present evidence and all public comments on the environmental document were reviewed; and WHEREAS, on February 15, 2022, the City Council, having determined that all legal prerequisites had been fulfilled, adopted Resolution No. 7407 on a 4-0 vote, thereby adopting the 2021-2029 Housing Element, directing the Staff to submit the Housing Element and all associated materials to HCD, and authorizing changes to the adopted documents based on HCD review; and, WHEREAS, after reviewing the 2021-2029 Housing Element in its entirety and suggesting revisions and clarifying language over several iterations, HCD directed the City to revise Resolution No. 7407 to include additional language, which is provided in four additional Recitals; and WHEREAS, in the interest of obtaining a HCD’s certification of the City of Arcadia’s 2021-2029 Housing Element, the City Council hereby adopts this Resolution in order to insert four new Recitals into Resolution No. 7407, with no other technical changes and no substantive changes to the City Council’s prior action. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, HEREBY RESOLVES AS FOLLOWS: SECTION 1. As shown in the attached REVISED Resolution No. 7407, the following Recitals are hereby inserted into Resolution No. 7407: “WHEREAS, the City has prepared a draft 2021-2029 Housing Element in accordance with California Housing Element Law, Government Code section 65580 et seq. (“Housing Element Law”), that may be further revised through consultation and review by the California Department of Housing and Community Development (“HCD”) to comply with state law; and WHEREAS, the City Council authorizes staff to make subsequent revisions or modifications to the draft 2021-2029 Housing Element to comply with state law as requested by the California Department of Housing and Community Development (“HCD”); and WHEREAS, the 2021-2029 Housing Element complies with the duty to Affirmatively Further Fair Housing as required by Government Code Section 65583; and WHEREAS, pursuant to Government Code Section 65583.2(g)(2), based on substantial evidence set forth in Appendix A of the Technical Background Report of the adopted 2021 – 2029 Housing Element, any existing uses on sites identified to accommodate affordable housing are likely to be discontinued during the planning period, and therefore do not constitute an impediment to additional residential development during the period covered by the Housing Element. This finding is based, in part, upon a comprehensive review of all possible opportunities for additional residential development that can accommodate affordable housing during the planning period. This review includes a review of any sites identified to accommodate 2020-2029 RHNA need that have existing structures, improvements and/or activities demonstrate a likelihood for redevelopment during the 2021-2029 planning period. Examples of existing development projects of non vacant sites for residential uses were evaluated as shown in Table A-3 of Appendix A and redevelopment assumptions were analyzed for each of the specific Focus areas and strategies within the document. Based on an analysis of land value ratios, age of existing structures, the history of development in the zone, and how each zone is envisioned to be developed, parcels with existing uses or activities that were not likely to be discontinued during the planning period were generally removed if they had conditions suggesting continued use during the planning period. These included newly built parcels, sites that were not physically able to support housing in place of or in addition to existing uses, or sites that included recent entitlement applications or development plans. Additionally, Table A-24 of Appendix A (the “Adequate Sites Table”), provides a description of existing land uses and a justification for the redevelopment potential of each of the identified sites. This analysis utilized the Southern California Association of Government’s HELPR tool, as well as additional site by site analysis, to provide an accurate picture of each site within each Focus/Strategy Area; and”. SECTION 2. The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), because it is an action that will not have an impact on the environment. (State CEQA Guidelines, section 15378.) Even if the action were a project under CEQA, it is exempt under State CEQA Guidelines, section 15061(b)(3) because it can be seen with certainty that the project would not have an impact on the environment. Thus, no further environmental review is required. The City Council directs staff to prepare, execute and file a Notice of Exemption within five (5) working days of the approval of this Resolution. SECTION 3. The City Clerk shall certify as to the adoption of this Resolution. [SIGNATURES ON THE NEXT PAGE] Passed, approved and adopted this 1st day of November, 2022. _____________________ Mayor of City of Arcadia ATTEST: ______________________ City Clerk APPROVED AS TO FORM: for Stephen P. Deitsch City Attorney RESOLUTION NO. 7407 (REVISED NOV. 1, 2022 By RESOLUTION NO. 7468) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, APPROVING GENERAL PLAN AMENDMENT NO. GPA 21- 02 WITH A NEGATIVE DECLARATION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ("CEQA") UPDATING THE HOUSING ELEMENT FOR THE 2021-2029 HOUSING CYCLE. WHEREAS, California Government Code Section 65358(a) authorizes the City Council to amend the General Plan if it is deemed to be in the public interest or required by State law; and WHEREAS, the General Plan is a long-range, comprehensive document that serves as a guide for the orderly development of the City of Arcadia; and by its very nature, the General Plan is subject to update and revision to account for current and future community needs; and WHEREAS, California State Housing Element Law establishes the requirements for Housing Elements, and California Government Code Section 65588 requires that local governments review and revise the Housing Element of their comprehensive General Plans not less than once every eight years, and currently the State is in the "6th Cycle" of Housing Element Updates, covering the time period of 2021-2029; and WHEREAS, the California State Legislature identifies overall housing policies for the State with the goal of ensuring every resident has access to housing and suitable living environments, and additionally establishes a Regional Housing Needs Assessment ("RHNA") which establishes projected allocations of housing units through local Councils of Governments that are attributed to each jurisdiction in the State; and WHEREAS, the updated Housing Element must be adopted by City Council and certified by the California State Department of Housing and Community Development ("HCD") in concert with statewide housing policies and in compliance with the established RHNA; and WHEREAS, pursuant to the California Environmental Quality Act ("CEQA"), an Initial Study/Negative Declaration ("IS/ND") was prepared for General Plan Amendment No. GPA 21-02 (the "draft Housing Element Update") in compliance with CEQA and the local environmental review guidelines, and a Notice of Intent to Adopt a Negative Declaration for the draft Housing Element Update was posted with the Los Angeles County Clerk's Office on December 17, 2021; and WHEREAS, on January 25, 2022, a duly noticed public hearing was held before the Planning Commission on the draft Housing Element Update, at which time all interested persons were given full opportunity to be heard and to present evidence, and the Planning Commission subsequently voted 4-0, with one member absent, to recommend approval of the draft Housing Element Update to the City Council; and WHEREAS, on February 15, 2022, a duly noticed public hearing was held before the City Council on the draft Housing Element Update, and the associated Initial Study and Negative Declaration, at which time all interested persons were given full opportunity to be heard and to present evidence and all public comments on the environmental document were reviewed; and WHEREAS, the City has prepared a draft 2021-2029 Housing Element in accordance with California Housing Element Law, Government Code section 65580 et seq. (“Housing Element Law”), that may be further revised through consultation and review by the California Department of Housing and Community Development (“HCD”) to comply with state law; and WHEREAS, the City Council authorizes staff to make subsequent revisions or modifications to the draft 2021-2029 Housing Element to comply with state law as requested by the California Department of Housing and Community Development (“HCD”); and WHEREAS, the 2021-2029 Housing Element complies with the duty to Affirmatively Further Fair Housing as required by Government Code Section 65583; and WHEREAS, pursuant to Government Code Section 65583.2(g)(2), based on substantial evidence set forth in Appendix A of the Technical Background Report of the adopted 2021 – 2029 Housing Element, any existing uses on sites identified to accommodate affordable housing are likely to be discontinued during the planning period, and therefore do not constitute an impediment to additional residential development during the period covered by the Housing Element. This finding is based, in part, upon a comprehensive review of all possible opportunities for additional residential development that can accommodate affordable housing during the planning period. This review includes a review of any sites identified to accommodate 2020-2029 RHNA need that have existing structures, improvements and/or activities demonstrate a likelihood for redevelopment during the 2021-2029 planning period. Examples of existing development projects of non vacant sites for residential uses were evaluated as shown in Table A-3 of Appendix A and redevelopment assumptions were analyzed for each of the specific Focus areas and strategies within the document. Based on an analysis of land value ratios, age of existing structures, the history of development in the zone, and how each zone is envisioned to be developed, parcels with existing uses or activities that were not likely to be discontinued during the planning period were generally removed if they had conditions suggesting continued use during the planning period. These included newly built parcels, sites that were not physically able to support housing in place of or in addition to existing uses, or sites that included recent entitlement applications or development plans. Additionally, Table A-24 of Appendix A (the “Adequate Sites Table”), provides a description of existing land uses and a justification for the redevelopment potential of each of the identified sites. This analysis utilized the Southern California Association of Government’s HELPR tool, as well as additional site by site analysis, to provide an accurate picture of each site within each Focus/Strategy Area; and”. WHEREAS, all other legal prerequisites to the adoption of this Resolution have been fulfilled. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, HEREBY RESOLVES AS FOLLOWS: SECTION 1. The factual data submitted by the Development Services Department in the Staff Report dated February 15, 2022, and associated attachments, are true and correct. SECTION 2. The City Council finds that based upon the entire record, including all written and oral evidence presented, pursuant to Section 9108.03.060 of the Arcadia Development Code, all of the following findings can be made. 1. The amendment is internally consistent with all other provisions of the General Plan. FACTS TO SUPPORT THE FINDING: The Housing Element would make the General Plan consistent with state law requirements per Government Code Section 65580 that requires the Housing Element to be updated every eight years upon the adoption of a region's RHNA. The Housing Element Update identifies goals, policies, and implementation programs addressing housing opportunities, removal of governmental constraints, improving the condition of existing housing, and providing equal housing opportunities for all Arcadia residents. These goals, policies and program actions are consistent with all other Elements of the General Plan in that they further the City's overall goals to create a diverse, sustainable, and balanced community by implementing strategies and programs that contribute to economic and socially diverse housing opportunities that preserve and enhance Arcadia's character. 2. The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or general welfare of the City. FACTS TO SUPPORT THE FINDING: The proposed amendments are in the public interest and reflect the input of residents, decision makers, and other stakeholders in the community. No zone changes are proposed under the Housing Element Update that would reduce or compromise existing standards that protect the health, safety or general welfare of the City. The Initial Study/Negative Declaration for the Housing Element Update analyzed all the significant environmental impacts of all candidate housing sites associated with the proposed 6th Cycle Housing Element Update, and it was determined that all the potential impacts would be less than significant. Therefore, the proposed General Plan amendment for the Housing Element Update would not be detrimental to the public health and welfare, and in fact, the promotion and encouragement of diverse and varied housing types throughout the City furthers the public interest and convenience of residents by providing housing options and choices over time. SECTION 3. The draft Housing Element Update has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act ("CEQA") and CEQA Guidelines. An Initial Study/Negative Declaration ("IS/ND") has been prepared for the project for the City, as the lead agency. The IS/ND was prepared pursuant with the requirements of CEQA on the basis that there was no substantial evidence that there may be significant environmental impacts on specific environmental areas as a result of the project. Subsequent housing developments proposed will, of course, be subject to compliance with CEQA as they are submitted. SECTION 4. For the foregoing reasons the City Council approves General Plan Amendment GPA 21-02, updating the General Plan's Housing Element, and approving the associated Initial Study / Negative Declaration prepared for the project. SECTION 5. The City Clerk shall certify as to the adoption of this Resolution. [SIGNATURES ON THE NEXT PAGE] Passed, approved and adopted this 15th day of February, 2022. _____________________ Mayor of City of Arcadia ATTEST: ______________________ City Clerk APPROVED AS TO FORM: ______________________ Stephen P. Deitsch City Attorney