HomeMy WebLinkAboutCC_2020_01_28_CC PC Special Meeting AgendaPacket***PLEASE NOTE TIME CHANGE***
SPECIAL JOINT MEETING
Atascadero City Council
Atascadero Planning Commission
Tuesday, January 28, 2020
6:00 P.M.
Or as soon thereafter as can be heard by the
City Council and Planning Commission
Atascadero City Hall Council Chambers, 4th Floor
6500 Palma Avenue, Atascadero, California
(Enter from Lewis Avenue)
AGENDA
ROLL CALL:
DISCUSSION:
1. 6th Cycle Housing Element Update (CPP19-0067)
Fiscal Impact: None.
Recommendation: City Council and Planning Commission provide feedback
to staff and the Housing Element Consultant based on the proposed work
plan and community input. [Community Development]
ADJOURNMENT:
The City Council will adjourn to its Regular Session on January 28, 2020; and the Planning
Commission will adjourn to its next Regular Session on February 4, 2020.
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO )
CITY OF ATASCADERO )
I, Amanda Muther, Deputy City Clerk of the City of Atascadero, declare under penalty of perjury that the
foregoing amended agenda for the Special Joint Meeting of the City Council and Atascadero Planning
Commission was posted on January 22, 2020, at the Atascadero City Hall, 6500 Palma Avenue, Atascadero,
CA 93422 and was available for public review at that location.
Signed this 22nd day of January 2020, at Atascadero, California.
Amanda Muther, Deputy City Clerk
City of Atascadero
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DATE: 01/28/20
Joint Meeting – Housing Element
Staff Report – Community Development Department
6th Cycle Housing Element Update
(CPP19-0067)
RECOMMENDATION:
City Council and Planning Commission provide feedback to staff and the Housing
Element Consultant based on the proposed work plan and community input.
DISCUSSION:
Background
The State requires that Housing Elements be updated and certified regularly to reflect the
most recent trends in demographics and employment that may affect existing and future
housing demand and supply. Atascadero previously updated the General Plan Housing
Element in 2014, and a new Housing Element must now be completed , reviewed by the
State Department of Housing and Community Development (HCD), and adopted prior to
December 2020. If certified by the deadline, the Housing Element will be valid for eight
years (through 2028). If the City does not meet the December 2020 deadline, the housing
element would only be valid for four years from the adoption date and would need to be
recertified in 2024. Additionally, if the Housing element is not updated by the deadline,
the City could face litigation, would be ineligible for certain funding sources and grants,
and would receive penalties in subsequent Housing Element Cycles.
State Housing Element law requires that each City and County identify and analyze
existing and projected housing needs within their jurisdictions, and prepare goals,
policies, programs and quantified objectives to further the development, improvement,
and preservation of housing. The San Luis Obispo Council of Governments (SLOCOG)
provides each City in our County with a specific allocation of additional housing units that
must be accommodated in each jurisdiction’s land use plan. SLOCOG has completed the
Regional Housing Needs Allocation (RHNA) and 843 total units have been allocated to
the City of Atascadero for this RHNA cycle (2019-2028).
At the November 12, 2019 Council meeting the City Council authorized a contract with
MIG to work with City staff and the Community to draft the City’s Housing Element. MIG
has outlined a public outreach and hearing process that will help the City achieve the
2020 deadline to complete this project. Tonight’s Special Meeting is the first step in the
update process, allowing the Council, Commission, and members of the public a chance
to learn about the housing element update process and to provide input on community
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DATE: 01/28/20
housing needs, opportunities, and constraints. Professionals from the building and
housing industries were given an opportunity to speak with staff at a public workshop held
at City Hall prior to tonight’s meeting.
Analysis
Housing Element Role
The Housing Element is a comprehensive statement by the community of its current and
future housing needs and proposed actions to facilitate the provision of additional housing
to meet those needs at all income levels. The policies contained in the Housing Element
are an expression of the Statewide housing goal of meeting the housing needs in our
region, as well as a reflection of the unique concerns of the community. Housing Elements
are required to:
1. Assess and address constraints to housing development
2. Provide an assessment of population housing needs
3. Analyze progress toward implementing the previous housing element
4. Guide housing development policy
5. Identify opportunities to meet the City’s housing needs and identified RHNA
allotment
a. Identify resources
b. Complete an inventory of existing and new sites for housing development
Housing Element law does not require the City to build all units identified as part of the
RHNA, but rather implement a plan to accommodate for these units throughout the City.
The Housing Element is not the only tool solve all housing problems but aims to identify
constraints and barriers and provide realistic solutions where able.
Regional Housing Needs Allocation (RHNA)
The Regional Housing Needs Allocation (RHNA) is determined by the State Department
of Housing and Community Development (HCD) based on population growth and needs
assessments on a County-wide basis. In our County, the San Luis Obispo Council of
Governments (SLOCOG) is responsible for distributing that allocation to all cities and the
unincorporated areas of the County. This distribution was completed by SLOCOG with
input from each City and the County to ensure a fair distribution based on infrastructure
constraints, land constraints, and jobs-housing balance.
The RHNA also specifies affordability level of units, requiring the Housing Element to
provide policies that allow for the achievement of housing for multiple income levels. In
addition to market rate levels, the housing needs allocation distributes units over four
identified affordability levels: very-low, low, moderate, and above moderate (market rate).
Income thresholds for these income groups are based on the Area Median Income (AMI)
for San Luis Obispo County (currently at $87,500/yr), and are as follows:
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Income Level 1-Person 2-Person 3-Person 4-Person 5 Person
Extremely Low
(0-30% AMI) ** $18,900 $21,600 $24,300 $26,950 $30,170
Very Low
(31-50% AMI) $31,500 $36,000 $40,500 $44,950 $48,550
Low
(51-80% AMI) $50,350 $57,550 $64,750 $71,900 $77,700
Moderate
(81-120% AMI) $73,500 $84,000 $94,500 $105,00 $113,400
Affordability is defined by the State as a household paying no more than 30% of its annual
income on housing. It is considered a cost burden when monthly housing costs (including
utilities) exceed this threshold. In Atascadero, 34% of all households experience housing
cost burden. The following chart shows the 30% threshold for each of the jobs listed based
on monthly income estimates.
** It is important to note that the State includes a definition for extremely-low-income levels but does
not include a RHNA target for this income level (it is assumed within the very low-income category).
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The RHNA for the SLOCOG region is 10,810 units. Of those, 843 total units must be
planned for in Atascadero, with the distributions among income groups as follows:
In meeting these RHNA numbers, the City can count all projects that have received
approval since December 31, 2018. Once those units have been subtracted from the
total, accommodation of the remaining units must be incorporated in the Housing
Element. This can be achieved by 1) identifying vacant sites that exist as housing sites
or could be rezoned to accommodate housing, and 2) identifying underutilized sites and
providing incentives to facilitate development of housing units that mee t the RHNA
allocation. In general, the State associates higher density with affordable housing
potential. Recent laws encourage local policies to ensure that those units become part of
any future project.
The City has approved a number of large development projects (listed below) that are
likely to be constructed within the next RHNA cycle and will count toward the City’s State
housing goals.
Emerald Ridge: 208 market rate rental units
Hartberg PD: 3 very low, 6 low, 6 moderate, 45 market rate
People’s Self Help: 5 extremely low, 26 very low, 10 low
Principal Mixed-Use: 3 low income, 3 moderate, 46 market rate units
Grand Oaks micro homes: 27 Moderate by design, 3 deed restricted moderate
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If these projects move forward, the City will have met 46% of our RHNA goals utilizing
existing properties. The City must then focus efforts on providing opportunities for the
construction of 452 additional residential units, a majority of which fall into the affordable
range. In order to meet this allocation, the City must identify sites to meet the remaining
balance. The City will need to plan for the construction of these units and ensure that
adequate land is available to future projects. It is estimated that the City will meet the
remaining above market rate allotment without rezoning. For the affordable units the City
will need to identify targeted land and/or impose project requirements. It is important to
note that new State law includes no net loss provisions for land identified to meet
affordable housing goals. If land is identified in the Housing Element for a designated
number of affordable units and either commercial development or market-rate housing
development occurs on those sites, the City is required to identify new land to
accommodate those affordable units and rezone within 180 days.
When reviewing land identified for housing, HCD looks at the following factors and
conditions:
Existing use on the site – the State prefers the identification of vacant land
Realistic potential for re-use/re-development of underutilized sites
Size and shape of ownership patterns
Development density
The City will have to take these factors into account when identifying opportunity sites in
the Housing Element update. In particular, the State associates higher density with
housing affordability. In general, higher density developments provide smaller units and
greater opportunities to offset restricted affordable units.
Where or how can we accommodate our RHNA in Atascadero?
Note: The affordability level of the affordable by design units at Grand Oaks to be confirmed as part of
the Housing Element update.
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With the recent surge in multi-family development activity, nearly all of the vacant multi-
family zoned land in Atascadero has been allocated for new development. In order to
accommodate the RHNA, the City will need to evaluate infill of existing underutilized land,
potential for higher density on existing sites, mixed-use above commercial zones, or
rezoning of land that has access to services and infrastructure, and is located closer to
jobs and transit. Staff will hear community, housing and development professionals,
Planning Commission and City Council input prior to determining the best strategy to
accommodate our RHNA numbers.
New State Laws
The following summarized new State laws enacted to provide additional guidance and
requirements for 6th cycle Housing Element updates. Additionally, there are new bills that
reduce fees and development exactions for secondary dwelling units.
1. More Robust Sites Inventory (AB 1397)
a. Sites with existing uses must be individually analyzed for development
potential.
b. If non-vacant sites are used to accommodate 50% or more of need for lower
income households, jurisdiction must overcome presumption that existing
use is an impediment to development.
c. Sites re-used from previous inventories must be rezoned by-right for
projects with at least 20% of units affordable to count toward lower income
need.
2. Additional constraints to housing development analysis required (AB 879)
3. No Net Loss: Additional affordable sites required if an identified site is developed
with market-rate housing or commercial (SB 166)
a. If jurisdiction allows development of fewer units by income category than
identified in housing element, must find that either:
i. Sufficient excess capacity exists; or
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ii. Identify and “make available” new sites within180 days
b. Cannot approve development at lower density without making such findings
4. Housing Crisis Act (SB 330)
a. Down-zoning and reductions in density are prohibited through 2024 (SB 330)
b. Restricts local rules that limit housin g production
c. Strengthens the Permit Streamlining Act and the Housing Accountability Act
5. Legality of inclusionary zoning restored for rental projects (AB 1505)
6. Additional density bonus incentives for low-income housing (AB 1763)
a. For housing projects where all units are affordable to low and very low
income residents, AB 1763 more than doubles the density bonus to 80%.
7. Accessory Dwelling Unit Law Updates
a. May prohibit short-term rentals in ADU’s
b. Jurisdictions prohibited from charging Development Impact Fees for ADU’s
750 sq ft or less, must be proportional to the primary unit for ADU’s between
751 sq.ft. and 1200 sq. ft.
Vehicle Miles Travelled (VMT)
Since completion of the City’s previous Housing Element in 2014, environmental policies
have changed, particularly the consideration of placing housing close to jobs and transit.
This factor was taken into consideration when SLOCOG allocated RHNA numbers to each
of the Cities and County in our region. However, locally, units need to be placed close to
transit and commercial areas to comply with VMT environmental thresholds. Atascadero is
currently ranked as the City with the highest number of miles travelled between home and
work compared to all other incorporated Cities in our region. This factor can result in
substantial traffic on Highway 101 and other regional corridors. Therefore, VMT for new
housing projects in our region may be considered a significant environmental impact. The
City of Atascadero will need to establish local VMT thresholds in order to guide housing
development towards appropriate locations and to help streamline the environmental
review process. At the same time, Atascadero will also need to continue to focus on the
establishment of a stronger commercial and job sector to continue to help balance the ratio
between jobs and housing. Significant strides are being made through the planning of a
large business park concept at Del Rio and through strategies suggested through the
El Camino Plan. Additional opportunities will be realized through the development of vacant
Colony Square lots, the completion of La Plaza, development of the Home Depot parcels,
and development of the vacant Dove Creek parcel, along with redeveloment/occupancy of
the K-Mart site.
Inclusionary Housing Ordinance
The City has also contracted with MIG to draft an Inclusionary Housing Ordinance. The
City currently utilizes an interim policy that was adopted by the City Council in 2003. Since
that time, State Density Bonus law and other incentives have changed. An inclusionary
ordinance would replace the policy and recognize more recent State updates. With State
requirements ensuring that affordable units are constructed on identified sites
(No Net Loss), the adoption of an inclusionary ordinance will ensure that affordable units
or in-lieu fees are included in every new residential project as we move forward through
the new RHNA cycle. This will ensure the City’s meets RHNA goals and is one of the only
options that results in the physical construction of affordable units.
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Housing Element Timeline
The City is required to obtain a certified Housing Element by the end of 2020. Factoring
in the HCD review process, this means that a draft document will be brought before the
City Council for public review by May of this year. The draft will then be forwarded to HCD
for review and comment and an environmental analysis will commence. Once HCD has
approved the draft, the Housing Element will be brought back to the Council for final
adoption. The City will receive input from the public throughout the process.
Regional housing and development professionals have been contacted for input and
comment. The City must obtain a Housing Element certification by the end of the year to
remain in compliance and remain eligible for certain funding and grant opportunities.
Conclusion
The Housing Element update is a State mandated process that aims to provide a
regulatory and land-use framework aimed at addressing housing needs and providing
opportunities for the construction of housing that meets the needs of current and fu ture
residents. California’s housing element law acknowledges that, in order for the private
market to adequately address the housing needs and demand of Californians, local
governments must adopt plans and regulatory systems that provide opportunities for (and
do not unduly constrain), housing development.
The Housing Element is constructed to address the goals of the State while being
responsive and respectful of local conditions and characteristics. With that in mind, staff
is looking for input from the public, Planning Commission, and Council to help identify
opportunities, constraints, and barriers for housing production as well as creative
solutions to meet the City’s housing goals. Additionally, it is important to keep in mind that
this is one of seven Elements (Chapters) of our City’s General Plan. As such, we need to
consider input that will make sure this process not only responds to state law but that the
work is crafted to respect local needs.
What are the major housing issues in Atascadero?
What are the challenges to overcome?
Where can new housing be accommodated?
What are creative solutions to address constraints?
What can we do to respond to local needs of Atascadero?
ATTACHMENTS:
1. San Luis Obispo County RHNA Allocation distribution
2. Housing Element Update schedule
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Milestone Target Completion Date
Contract Execution/Start Date November 2019
Kick Off Meeting and Tour December 2019
Initial Consultation with HCD December 2019
Study Session / Public Workshop #1 January 2019
Administrative Draft Housing Element April 2020
City Review of Administrative Draft Element
Complete – Comments to MIG
2 weeks following submittal
Study Session / Public Workshop #2 May/June 2020
HCD Submittal #1 July 2020
City Completes and Circulates CEQA
Documentation
July/August 2020
Respond to HCD Comments and Revise Draft
Housing Element
August/September 2020
Administrative Draft Affordable Housing
Ordinance
August 2020
City Review of Administrative Draft Affordable
Housing Ordinance Complete – Comments to
MIG
2 weeks following submittal
Draft Affordable Housing Ordinance September 2020
Planning Commission Public Hearing October 2020
City Council Public Hearing November 2020
HCD Submittal (Adopted Housing Element) Due December 31, 2020
plus 120-day grace period
Final Certified 2019-2028 Housing Element HCD has 90 days to review an adopted
Housing Element
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