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HomeMy WebLinkAbout01/26/2021 Joint CC-PC HEWritten materials distributed to the City Council within 72 hours of the City Council meeting are available for public inspection immediately upon distribution in the City Clerk’s Office at 21810 Copley Dr., Diamond Bar, California, during normal business hours. Special Joint Meeting of the City Council and Planning Commission Agenda Tuesday, January 26, 2021 5:30 PM PUBLIC ADVISORY: Consistent with the Governor’s latest Executive Order to Stay at Home, avoid gatherings and maintain social distancing, the regular meeting portion of the agenda will be conducted telephonically and Members of the City Council, Planning Commission and staf f will be participating via Teleconference. There will be no physical meeting location for the regular meeting. How to Observe the Meeting: To maximize public safety while still maintaining transparency and public access, members of the public can observe the meeting by calling +1 (562) 247-8422, Attendee Access Code: 764- 910-401 or by visiting https://attendee.gotowebinar.com/register/1437393062983282958 . How to Submit Public Comment: Members of the public may provide public comment by sending written comments to the City Clerk by email at cityclerk@DiamondBarCA.gov by 5:30 p.m. on the day of the meeting. Please indicate in the Subject Line “FOR PUBLIC COMMENT.” Written comments will be distributed to the Council Members and read into the record at the meeting, up to a maximum of five minutes. Alternatively, public comment may be submitted by logging onto the meeting through this link: https://attendee.gotowebinar.com/register/1437393062983282958. Members of the public will be called upon one at a time during the Public Comment portion of the agenda, and will be asked to state their name and agenda item they wish to comment on. Speakers are limited to five minutes per agenda item, unless the Mayor determines otherwise. American Disability Act Accommodations: Pursuant to the Executive Order, and in compliance with the Americans with Disabilities Act, if you need special assistance to participate in the meeting, please contact the City Clerk’s Office (909) 839-7010 within 72 hours of the meeting. JANUARY 26, 2021 PAGE 2 CITY OF DIAMOND BAR SPECIAL MEETING OF THE CITY COUNCIL AND PLANNING COMMISSION WINDMILL COMMUNITY ROOM 21810 COPLEY DRIVE January 26, 2021 CALL TO ORDER: 5:30 p.m. 1. ROLL CALL: Council Members: Andrew Chou, Stan Liu, Steve Tye, Mayor Pro Tem Ruth M. Low, Mayor Nancy A. Lyons Commissioners: Naila Barlas, Mahendra Garg, Raymond Wolfe, Vice Chair William Rawlings, Chair Mok 2. 2021-2029 HOUSING ELEMENT UPDATE WORKSHOP Recommended Actions: • Receive the staff presentation • Receive public comments • Provide feedback and direction to staff to facilitate the preparation of the Draft 2021-2029 Housing Element Update Requested By: Community Development Department 3. ADJOURNMENT Consistent with the Governor’s latest Executive Order to Stay at Home, avoid gatherings and maintain social distancing, the regular meeting portion of the agenda will be conducted telephonically and Members of the City Council, Planning Commission and staff will be participating via Teleconference. There will be no physical meeting location. JOINT MEETING of the CITY COUNCIL and PLANNING COMMISSION MEETING DATE: January 26, 2021 SUBJECT: Diamond Bar 2021-2029 Housing Element Update Workshop #1 Housing Element Update 2021-2029 Workshop #1 | January 26, 2021 Page 1 of 3 SUMMARY: State law requires every California city to adopt a comprehensive, long-range General Plan that includes the following mandatory components, or elements: • Land Use • Circulation • Conservation • Noise • Open Space • Safety • Housing • Environmental Justice In 2019, the City Council adopted a comprehensive update to the Diamond Bar General Plan. The Housing Element is the one mandatory element of the General Plan that was not part of the 2019 General Plan Update because housing elements must be updated on a separate 8-year cycle. The next Housing Element update for Diamond Bar and all other cities and counties in the Southern California Association of Governments (SCAG) region covers the 2021 through 2029 planning period. The due date for these Housing Element updates is October 2021. The Housing Element includes analyses of the community’s housing needs, opportunities and constraints, as well as policies and programs to facilitate the construction, rehabilitation, and preservation of housing for all economic segments of the community. Regional Housing Needs Assessment (RHNA): The RHNA is mandated by State law and requires that each city accommodate a share of the region’s housing need by adopting land use plans and regulations to provide for a variety of housing for all economic segments of the community. SCAG sets the RHNA allocations for all cities and counties within its jurisdiction 3.1 Packet Pg. 3 Housing Element Update 2021-2029 Workshop #1 | January 26, 2021 Page 2 of 3 Diamond Bar’s RHNA allocation for the new planning period is 2,516 housing units, distributed among income categories as follows: Very Low Low Moderate Above Moderate Total 842 433 436 805 2,516 Accommodating RHNA obligations is often the most challenging aspect of the Housing Element update process. Although Diamond Bar is not obligated to produce the housing units set forth in the RHNA, the Housing Element must identify how the City can accommodate these numbers through its availability of suitably zoned sites. Process The Joint City Council/Planning Commission Community Workshop is intended to be a “Housing Element 101” session to provide a general overview of the Housing Element update process and requirements, including the RHNA (Regional Housing Needs Assessment), which, as stated, will likely be the most significant aspect of the Housing Element update. The workshop will provide an opportunity for the public to learn about requirements for the Housing Element, including recent State mandates and legislation that will need to be addressed, and will also solicit public comments regarding housing needs in Diamond Bar and potential programs to address those needs. This is the first step in the public engagement process, and will be followed by Planning Commission and City Council meetings this spring to review the draft Housing Element, and authorize its submittal to the State Department of Housing and Community Development (HDC) for review and conditional certification. The HCD review process typically leads to revisions to the draft document. After HCD provides conditional certification, the final draft will be presented to the Planning Commission and City Council for adoption. Staff anticipates scheduling the adoption hearings during mid- summer of this year. Additional information regarding the Housing Element update is posted on the City’s website at https://www.diamondbarca.gov/963/Housing-Element-Update. This website will be updated with meeting notices and additional information over the coming months. Interested persons may also submit comments regarding the Housing Element update to Senior Planner Grace Lee at GLee@DiamondBarCA.Gov. Attached to this report are Frequently Asked Questions regarding the Housing Element update, as well as the PowerPoint slides to accompany staff’s workshop presentation . RECOMMENDED ACTIONS: 1. Receive public comments. 2. Provide feedback and direction to staff to facilitate the preparation of the Draft 2021 - 2029 Housing Element Update. 3.1 Packet Pg. 4 Housing Element Update 2021-2029 Workshop #1 | January 26, 2021 Page 3 of 3 Prepared by: ___________________________ _________________________ Grace Lee Greg Gubman, AICP Senior Planner Community Development Director Attachments: 1. 3.1.a Housing Element Frequently Asked Questions 2. 3.1.b PowerPoint Presentation 3.1 Packet Pg. 5 2021 Housing Element FAQ July 2020 Page 1 1. What is a Housing Element? State law1 requires each city to adopt a comprehensive, long-term General Plan for its physical development. General Plans include several “elements” that address various topics. The Diamond Bar General Plan2 was comprehensively updated in 2019 and includes the following elements: • Land Use and Economic Development • Community Character and Place Making • Circulation • Resource Conservation • Public Facilities and Services • Public Safety • Community Health and Sustainability • Housing3 While most portions of General Plans typically have a time horizon of 20-25 years, State law requires that the Housing Element be updated in 8-year “cycles.” The City is currently preparing a Housing Element update for the 2021 to 2029 planning period, which is referred to as the “6th Housing Element cycle” in reference to the six required updates that have occurred since the comprehensive revision to State Housing Element law in 1980. State law4 establishes detailed requirements for Housing Elements, which are summarized in California Government Code Section 65583: The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobile homes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. 1 California Government Code Sec. 65300 et seq. 2 http://www.diamondbargp.com/ 3 The Housing Element was last updated in 2014 and was not part of the 2019 General Plan update 4 California Government Code Sec. 65580 et seq. 3.1.a Packet Pg. 6 2021 Housing Element FAQ July 2020 Page 2 2. What is Housing Element “certification” and why is it important? The State Legislature has delegated to the California Department of Housing and Community Development (“HCD”) the authority to review Housing Elements and issue findings regarding the elements’ compliance with the law.5 When HCD issues a letter finding that the Housing Element is in substantial compliance with State law it is referred to as “certification” of the Housing Element. Housing Element certification is important for two main reasons: • Local control. The General Plan and its various elements provide the foundation for the City’s land use plans and development regulations, and the Housing Element is part of the General Plan. If the City were challenged in court on a planning or zoning matter and the General Plan were found by the court to be invalid, the court could order changes to City land use plans or regulations and assume control over City land use decisions. HCD certification establishes a “rebuttable presumption of validity”6 that the Housing Element complies with State law, which would support the City’s legal defense. Recent laws also allow for courts to impose fines on a jurisdiction if it fails to adopt a Housing Element in compliance with State law.7 • Eligibility for grant funds. Some State grant funds are contingent upon Housing Element certification. Grants can help to cover the cost of some projects that would otherwise rely on the City’s General Fund. 3. What are the most important issues that must be addressed in the Housing Element? The major issues that must be addressed in the Housing Element are: 1) how City policies, plans and regulations help to meet the region’s housing needs for persons and families of all income levels; and 2) how City land use regulations accommodate the spec ial housing needs of those with disabilities or other difficulties. • Accommodating Regional Housing Needs. Under State law8 all cities are required to plan for additional housing to accommodate population growth and address existing housing problems such as overcrowding and high housing cost. State law recognizes that cities generally do not build housing, since that is typically the role of private and non-profit developers and builders. However, cities are required to adopt policies, development regulations and standards to encourage a variety of housing types that are affordable for persons of all income levels, such as rental apartments and accessory dwelling units (“ADUs”). The Regional Housing Needs 5 California Government Code Sec. 65585 6 California Government Code Sec. 65589.3. 7 AB 101 of 2019 8 California Government Code Sec. 65583 3.1.a Packet Pg. 7 2021 Housing Element FAQ July 2020 Page 3 Assessment (“RHNA”) is the method by which each jurisdiction’s share of new housing needs is determined (see #5 below). • Housing for Persons with Special Needs. Under State law9 cities must also ensure that their plans and regulations encourage the provision of housing for persons with special needs including: ✓ Reasonable accommodation for persons with disabilities ✓ Transitional housing ✓ Supportive housing ✓ Emergency shelters and other facilities serving the homeless ✓ Large (5+) families 4. What is “affordable” housing? By definition, housing is considered “affordable” when total housing cost, including utilities, is no more than 30% of a family’s gross income. State law describes five income categories, which are based on county median income as shown in Table 1. Table 1. Household Income Categories Income Category % of county median income Extremely low Up to 30% Very low 31-50% Low 51-80% Moderate 81-120% Above moderate Over 120% Source: California Government Code Sec. 65584(f) Affordable housing costs for all jurisdictions in Los Angeles County are determined based on these income categories as shown in Table 2. These incomes, rents and housing prices are based on a 4-person family and are adjusted for different family sizes. Table 2. Income Categories and Affordable Housing Costs – Los Angeles County Income Category Maximum Income Maximum Affordable Rent Maximum Affordable Price (est.) Extremely low $33,800 $845 * Very low $56,300 $1,407 * Low $90,100 $2,252 * Moderate $92,750 $2,319 $375,000 Above moderate Over $123,600 Over $3,090 Over $375,000 Assumptions: -Based on a family of 4 and 2020 State income limits -30% of gross income for rent or principal, interest, taxes & insurance plus utility allowance -10% down payment, 3.75% interest, 1.25% taxes & insurance, $300 HOA dues * For-sale affordable housing is typically at the moderate-income level Source: Cal. HCD; JHD Planning LLC 9 California Government Code Sec. 65583(a)(5) 3.1.a Packet Pg. 8 2021 Housing Element FAQ July 2020 Page 4 5. What is the “RHNA” why is it important? Each California city is required to plan for new housing to accommodate a share of regional needs. The Regional Housing Needs Assessment (“RHNA”) is the process established in State law10 by which housing needs are determined. Prior to each planning cycle the total new housing need for each region of California is determined by HCD based upon economic and demographic trends, existing housing problems such as overcrowding and overpayment, and additional housing needed to ensure reasonable vacancy rates and replace units lost due to demolition or natural disasters. Diamond Bar is located within the Southern California Association of Governments (“SCAG”) region, which includes Los Angeles, Orange, Riverside, San Bernardino, Imperial and Ventura counties. The total housing need for the SCAG region is distributed to cities and counties by SCAG based upon objectives and criteria established in State law.11 In 2019 HCD determined that the total new housing need for the entire SCAG region in the 6th Housing Element cycle is 1,341,827 units. SCAG is currently finalizing the RHNA plan for the 6th cycle, which must fully allocate the total RHNA to jurisdictions in the SCAG region.12 SCAG expects to adopt the final RHNA plan by February 2021. The RHNA also distributes each jurisdiction’s total housing need into four income categories (the extremely-low and very-low categories are combined for RHNA purposes). Diamond Bar’s preliminary 6th cycle RHNA allocation by income category is shown in Table 3. Table 3. Draft 6th RHNA by Income Category – Diamond Bar Extremely Low + Very Low Low Moderate Above Moderate Total 841 432 435 805 2,514 Source: SCAG, 3/5/2020 10 California Government Code Sec. 65584 et seq. 11 California Government Code Sec. 65584(d) 12 http://www.scag.ca.gov/programs/pages/housing.aspx 3.1.a Packet Pg. 9 2021 Housing Element FAQ July 2020 Page 5 6. Is the RHNA a construction mandate? The RHNA allocation identifies the amount of additional housing a jurisdiction would need in order to have enough housing at all price levels to fully accommodate its assigned share projected growth over the 8-year planning period. The RHNA is a planning requirement based upon housing need, not a construction quota or mandate. Jurisdictions are not required to build housing or issue permits to achieve their RHNA allocations, but some provisions of State law establish specific requirements when housing production falls short of RHNA allocations. One such requirement is streamlined review and approval of housing development applications that meet specific standards.13 Other than requirements for streamlined permit processing, there are currently no legal or financial penalties imposed on cities for failing to achieve their RHNA allocations. 7. What must cities do to comply with the RHNA? The Housing Element must provide an evaluation of the city’s capacity for additional housing based on land use patterns, development regulations, other development constraints (such as infrastructure availability and environmental conditions) and real estate market trends. The analysis must be prepared at a parcel-specific level of detail and identify properties (or “sites”) where additional housing could be built consistent with City regulations. This evaluation is referred to as the “sites analysis” and State law requires the analysis to demonstrate that the city has adequate capacity to fully accommodate its RHNA allocation in each income category. If the sites analysis does not demonstrate that adequate capacity exists to fully accommodate the RHNA, the Housing Element must describe what steps will be taken to increase capacity commensurate with the RHNA – typically through amendments to land use and zoning regulations that could facilitate additional housing development. Such amendments typically include increasing the allowable residential density or allowing housing to be built in areas that are currently restricted to only non-residential land uses. Diamond Bar’s new General Plan, adopted in December 2019, estimates that up to 3,750 new housing units could be built in the city by 2040, depending on market conditions. It is expected that much of this growth would occur within the Town Center Mixed Use, Neighborhood Mixed Use, Transit Oriented Development and Community Core Overlay focus areas, while most existing residential neighborhoods will experience less growth and change. While the General Plan identifies potential for significantly more new housing than the draft 6th RHNA allocation of 2,514 units, the Housing Element must demonstrate that realistic capacity exists for the amount of new housing in each income category to be built during the 2021-2029 planning period based on zoning, site conditions and market trends. This analysis is expected to be the primary focus of the Housing Element update. 13 California Government Code Sec. 65913.4 (SB 35 of 2017) 3.1.a Packet Pg. 10 2021 Housing Element FAQ July 2020 Page 6 8. Why are cities in high-cost areas expected to have affordable housing? Low-cost housing is not economically feasible here due to high land prices. State housing laws are based on the premise that every city has an obligation to accommodate a range of housing types for persons at all income levels. Every community is dependent on a variety of low- and moderate-income workers in jobs such as landscaping, building maintenance, child and elder care, medical technicians, personal services, clerical support and retail trade. While the existing housing stock serves the needs of many residents, market rents and prices are higher than some families can afford. In addition, low-wage jobs have increased at a much faster rate than affordable housing is being built. While cities are not required to build new housing, they must ensure that their land use regulations encourage a full range of housing types. Rental apartments typically provide the majority of affordable housing, but other types of housing such as accessory dwelling units14 (ADUs) can also help to address this need. Various governmental programs provide funding assistance for affordable housing, but if a city’s development regulations are too restrictive, affordable housing may be infeasible and the housing needs of the local workforce will be shifted to other cities. 9. There is very little vacant land suitable for housing development left in Diamond Bar. Why is the RHNA allocation so high? SCAG’s 6th cycle RHNA allocation for the entire 6-county region is 1,341,827 units compared to 412,137 units in the 5th cycle. There are two main reasons why the 6th RHNA allocation is so much higher than the 5th cycle. First, the 5th cycle RHNA allocation was established in 2012 while the severe economic effects of the “Great Recession” were discouraging growth. As a result, the 5th RHNA was uncharacteristically low. For comparison, SCAG’s 4th cycle (2006-2013) RHNA allocation was approximately 700,000 housing units. Second, for the 6th cycle the State made a major modification to the process for determining RHNA allocations. In prior RHNA cycles, total housing need was based only on projected population growth. However, for the 6th RHNA cycle the State added existing need to the total RHNA calculation. Existing need includes households that are currently overcrowded (defined as more than one person per room) or are overpaying for housing (defined as more than 30% of gross income). 14 “Accessory dwelling unit” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. (Government Code Sec. 65852.2(j)(1) 3.1.a Packet Pg. 11 2021 Housing Element FAQ July 2020 Page 7 The total 6th cycle RHNA allocation for the SCAG region is comprised of the sum of existing need and projected need, as follows: Existing need: 577,422 units Projected need: 764,405 units Total need: 1,341,827 units As seen from this breakdown, if existing need were excluded (as was the case in prior RHNA cycles) the total need would be similar to the 4th cycle RHNA. With regard to jurisdictional RHNA allocations, the methodology adopted by SCAG for the 6th cycle places greater emphasis on the proximity of jobs and public transit rather than vacant developable land. As a result, the urbanized areas of Los Angeles and Orange counties are assigned much higher housing need as compared to prior cycles even though they generally have much less vacant land than inland areas. Diamond Bar’s RHNA allocation in the 5th cycle was 1,146 units; therefore, the draft 6th cycle allocation of 2,514 units is about 2.2 times the prior cycle. By comparison, SCAG’s total 6th RHNA allocation is 3.3 times the 5th cycle total. . . . 3.1.a Packet Pg. 12 City of Diamond Bar Housing Element 2021-2029 Study Session January 26, 2021 3.1.b Packet Pg. 13 Overview Diamond Bar General Plan ➢Land Use & Economic Development ➢Community Character & Placemaking ➢Circulation ➢Resource Conservation ➢Public Facilities & Services ➢Public Safety ➢Community Health & Sustainability ➢Housing 3.1.b Packet Pg. 14 Overview •Housing Element has been a required part of the General Plan since 1969 •Housing Element updates required every 8 years •2021-2029 update required by State law •All elements of the General Plan must be consistent 3.1.b Packet Pg. 15 Housing Element Guiding Principles •Maintain & improve existing housing •Plan for regional growth needs for all economic segments & housing types •Minimize constraints to housing of all types •Affirmatively further fair housing 3.1.b Packet Pg. 16 Key Requirements Housing for Persons with Special Needs ✓Regulations & procedures consistent with fair housing law Regional Housing Needs Assessment (RHNA) ✓Adequate sites to accommodate assigned need 3.1.b Packet Pg. 17 Special Needs Persons with special needs ✓Elderly ✓Large families (5+) ✓Persons with disabilities ✓Homeless ✓Female-headed households ✓Farmworkers 3.1.b Packet Pg. 18 RHNA •Mandated by State law & prepared by SCAG •Each city must accommodate its assigned share of the region’s new housing need •Housing for all economic segments •Linked to available sites with appropriate zoning 3.1.b Packet Pg. 19 What is Affordable Housing? LA County Median Income = $77,300 Income Limits Affordable Rent Affordable Price (est.) Extremely Low (<30%)$33,800 $845 --- Very Low (31-50%)$56,300 $1,407 --- Low (51-80%)$90,100 $2,252 --- Moderate (81-120%)$92,750 $2,319 $375,000 Above Mod (>120%)>$123,600 >$3,090 >$375,000 Assumptions: Based on a family of 4 30% of gross income for rent or PITI 10% down payment, 4.5% interest, 1.25% taxes & insurance, $300 HOA dues 3.1.b Packet Pg. 20 RHNA 6th Planning Cycle (2021-2029) SCAG region:1,341,827 units Los Angeles County:813,082 units Diamond Bar:2,516 units 3.1.b Packet Pg. 21 RHNA 5th cycle 6th cycle Diamond Bar 1,146 2,516 SCAG Region 412,137 1,341,827 3.1.b Packet Pg. 22 RHNA Diamond Bar (2021-2029) Income Category Units Very low 842 Low 433 Moderate 436 Above mod 805 Total 2,516 3.1.b Packet Pg. 23 RHNA •Planning target, not a construction quota •Sites inventory must accommodate the RHNA, with focus on lower-income need •Lower-income need can be accommodated through: ✓Multi-family residential zoning (30+ units/acre) ✓Mixed-use zoning ✓Accessory dwelling units (ADUs) •If sites inventory does not accommodate the RHNA, rezoning is required 3.1.b Packet Pg. 24 RHNA Sites to Accommodate the RHNA •General Plan Focus Areas: ✓Neighborhood Mixed Use ✓Transit-Oriented Mixed Use ✓Town Center Mixed Use 3.1.b Packet Pg. 25 Importance of the Housing Element •General Plan is the foundation for City land use regulations •Housing Element is a required part of the General Plan •All General Plan elements must be consistent •Housing policy = land use policy 3.1.b Packet Pg. 26 Importance of Certification •State Legislature has delegated authority to HCD to review Housing Elements for compliance (“certification”) •Attorney General or other affected party may file a lawsuit challenging the Housing Element •Courts may impose fines, award attorney’s fees, order zoning changes and freeze building permits •HCD certification supports the legal validity of the Housing Element and General Plan 3.1.b Packet Pg. 27 Next Steps •Prepare draft Housing Element •HCD review (draft Housing Element) •Planning Commission review & recommendation •City Council review & adoption (Due 10/15/2021) •HCD review (adopted Housing Element) •Program implementation & monitoring 3.1.b Packet Pg. 28 Staff Recommendations 1.Receive public comments 2.Provide feedback and direction to staff to facilitate the preparation of the Draft 2021-2029 Housing Element Update. 3.1.b Packet Pg. 29 For more information: https://www.diamondbarca.gov/963/Housing-Element-Update Questions & comments? 3.1.b Packet Pg. 30