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HomeMy WebLinkAboutPC_2020-10-20_AgendaPacket * COVID-19 NOTICE * Consistent with Executive Orders N-25-20 and No. N-29-20 from the Executive Department of the State of California and the San Luis Obispo County Health Official’s March 18, 2020 Shelter at Home Order, the Planning Commission Meeting will not be physically open to the public and Planning Commissioners will be teleconferencing into the meeting. HOW TO SUBMIT PUBLIC COMMENT: Members of the public are highly encouraged to call 805-538-2888 to listen and provide public comment via phone, or submit written public comments to pc-comments@atascadero.org by 5:00 pm on the day of the meeting. Such email comments must identify the Agenda Item Number in the subject line of the email. The comments will be read into the record, with a maximum allowance of 3 minutes per individual comment, subject to the Chairperson’s discretion. All comments should be a maximum of 500 words, which corresponds to approximately 3 minutes of speaking time. If a comment is received after the agenda item is heard but before the close of the meeting, the comment will still be included as a part of the record of the meeting but will not be read into the record. If you would like to view presentations provided during the meeting, you may access them by clicking on the following link: https://attendee.gotowebinar.com/register/7056619857823558155 Webinar ID: 300-564-435 AMERICAN DISABILITY ACT ACCOMMODATIONS: Any member of the public who needs accommodations should contact the City Clerk’s Office at cityclerk@atascadero.org or by calling 805-470-3400 at least 48 hours prior to the meeting or time when services are needed. The City will use their best efforts to provide reasonable accommodations to afford as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests. Planning Commission agendas and minutes may be viewed on the City's website: www.atascadero.org. Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the Community Development Department and are available for public inspection on our website, www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the Planning Commission. The Minutes of this meeting will reflect these numbers. All documents submitted by the public during Planning Commission meetings that are either read into the record or referred to in their statement will be noted in the Minutes and available for review by contacting the Community Development Department. All documents will be available for public inspection during City Hall business hours once City Hall is open to the public following the termination of the Shelter at Home Order. WEBSITE: www.atascadero.org http://www.facebook.com/planningatascadero @atownplanning Scan this QR Code with your smartphone to view the Planning Commission Website. CITY OF ATASCADERO PLANNING COMMISSION AGENDA REGULAR MEETING Tuesday, October 20, 2020 6:00 P.M. City Hall Council Chambers 6500 Palma Avenue, 4th Floor Atascadero, California 93422 CALL TO ORDER Pledge of Allegiance Roll Call: Chairperson Mark Dariz Vice Chairperson Jeff van den Eikhof Commissioner Duane Anderson Commissioner Tori Keen Commissioner Michael Shaw Commissioner Jan Wolff Commissioner Tom Zirk APPROVAL OF AGENDA PUBLIC COMMENT (This portion of the meeting is reserved for persons wishing to address the Commission on any matter not on this agenda and over which the Commission has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. The Commissio n may take action to direct the staff to place a matter of business on a future agenda.) CONSENT CALENDAR (All items on the consent calendar are considered to be routine and non-controversial by City staff and will be approved by one motion if no member of the Commission or public wishes to comment or ask questions.) 1. DRAFT MINUTES OF SEPTEMBER 15, 2020  Recommendation: Commission approve the September 15, 2020, Minutes. City of Atascadero Planning Commission Agenda Regular Meeting, October 20, 2020 Page 2 of 3 WEBSITE: www.atascadero.org http://www.facebook.com/planningatascadero @atownplanning Scan this QR Code with your smartphone to view the Planning Commission Website. COMMUNITY DEVELOPMENT STAFF REPORTS None PUBLIC HEARINGS (For each of the following items, the public will be given an opportunity to speak. After a staff report, the Chair will open the public hearing and invite the applicant or applicant’s representative to make any comments. Members of the public will be invited to provide testimony to the Commission following the applicant. Speakers should state their name for the record and can address the Commission for three minutes. After all public comments have been received, the public hearing will be closed, and the Commission will discuss the item and take appropriate action(s). DISCLOSURE OF EX PARTE COMMUNICATIONS: Prior to a project hearing Planning Commission Members must disclose any communications they have had on any quasi-judicial agenda items. This includes, but is not limited to, Tentative Subdivision Maps, Parcel Maps, Variances, Conditional Use Permits, and Planned Development Permits. This does not disqualify the Planning Commission Member from participating and voting on the matter, but gives the public and applicant an opportunity to comment on the ex parte communication. 2. TENTATIVE PARCEL MAP, LOT LINE ADJUSTMENT, AND ROAD ABANDONMENT FOR 2930 AND 2945 RAMONA ROAD The proposed project consists of a Tentative Parcel Map that includes a right-of- way abandonment. The project qualifies for a Class 15 Categorical Exemption under CEQA Section 15315 for minor land divisions. Ex-Parte Communications: Recommendation: Approve the project with conditions. (SBDV20-0047) 3. VESTING TENTATIVE TRACT MAP AND MASTER PLAN OF DEVELOP MENT FOR 1827 AND 1843 EL CAMINO REAL The proposed project consists of a proposed Vesting Tentative Tract Map and Master Plan of Development for a 6-lot residential subdivision. This is being processed as a reconsideration of a previously approved but expired project as no significant changes are proposed and no code changes effecting the project have been enacted since the original approval. The project is consistent with the certified Final EIR for the Del Rio Road Commercial Specific Plan and subsequent addendums. Ex-Parte Communications: Recommendation: Approve the project with conditions. (RECON20-0078) 4. 6TH CYCLE HOUSING ELEMENT UPDATE The Housing Element is part of the City’s General Plan and provides a policy framework to further a wide variety of housing throughout the City in compliance with State law. Ex-Parte Communications: Recommendation: Approve the project with conditions. (CPP19-0067) City of Atascadero Planning Commission Agenda Regular Meeting, October 20, 2020 Page 3 of 3 WEBSITE: www.atascadero.org http://www.facebook.com/planningatascadero @atownplanning Scan this QR Code with your smartphone to view the Planning Commission Website. COMMISSIONER COMMENTS AND REPORTS DIRECTOR’S REPORT ADJOURNMENT The next regular meeting will be held on November 3, 2020, at 6:00 p.m. Please note: Should anyone challenge in court any proposed development entitlement listed on this Agenda, that person may be limited to raising those issues addressed at the public hearing described in this notice or in written correspondence delivered to the Planning Commission at, or prior to, this public hearing. PC Minutes of 9/15/2020 Page 1 of 4 ITEM NUMBER: 1 DATE: 10-20-20 CITY OF ATASCADERO PLANNING COMMISSION DRAFT MINUTES Regular Meeting – Tuesday, September 15, 2020 – 6:00 P.M. City Hall (Teleconference) 6500 Palma Avenue, Atascadero, California CALL TO ORDER - 6:00 p.m. Chairperson Dariz called the meeting to order at 6:00 p.m. and Commissioner Anderson led the Pledge of Allegiance. ROLL CALL Present: Commissioners Anderson, Shaw, Keen, Zirk, Vice Chairperson van den Eikhof and Chairperson Dariz Absent: Commissioner Wolff (excused absence) Others Present: Recording Secretary, Annette Manier Staff Present: Community Development Director, Phil Dunsmore Assistant Planner, Mariah Gasch Senior Planner, Kelly Gleason Associate Planner, John Holder APPROVAL OF AGENDA MOTION: By Commissioner Shaw and seconded by Commissioner Anderson to approve the Agenda. Motion passed 6:0 by a roll-call vote. PUBLIC COMMENT None. Chairperson Dariz closed the Public Comment period. 1 PC Minutes of 9/15/2020 Page 2 of 4 ITEM NUMBER: 1 DATE: 10-20-20 CONSENT CALENDAR 1. DRAFT MINUTES OF SEPTEMBER 1, 2020  Recommendation: Commission approve the September 1, 2020, Minutes. MOTION: By Commissioner van den Eikhof and seconded by Commissioner Keen to approve the Consent Calendar. Motion passed 6:0 by a roll-call vote. COMMUNITY DEVELOPMENT STAFF REPORTS None PUBLIC HEARINGS (For each of the following items, the public will be given an opportunity to speak. After a staff report, the Chair will open the public hearing and invite the applicant or applicant’s representative to make any comments. Members of the public will be invited to provide testimony to the Commission following the applicant. Speakers should state their name for the record and can address the Commission for three minutes. After all public comments have been received, the public hearing will be closed, and the Commission will discuss the item and take appropriate action(s).) DISCLOSURE OF EX PARTE COMMUNICATIONS: Prior to a project hearing Planning Commission Members must disclose any communications they have had on any quasi-judicial agenda items. This includes, but is not limited to, Tentative Subdivision Maps, Parcel Maps, Variances, Conditional Use Permits, and Planned Development Permits. This does not disqualify the Planning Commission Member from participating and voting on the matter, but gives the public and applicant an opportunity to comment on the ex parte communication. 2. CONDITIONAL USE PERMIT FOR NEW GYM (8200 El Camino Real) The proposed project consists of a new gym, Planet Fitness. The project qualifies for a Class 1 Categorical Exemption under CEQA Section 15301, Existing Facilites. Ex-Parte Communications: Recommendation: Approve the project with conditions. (USE20-0045) EX-PARTE COMMUNICATIONS None Planner Gasch presented the staff report. Director Dunsmore and Planner Gasch answered questions from the Commission. PUBLIC COMMENT The following members of the public spoke during public comment: Andrew Davies (N. Consulting Engineers), and Rachel Bielert (Franchisee) who gave a presentation on the project. 2 PC Minutes of 9/15/2020 Page 3 of 4 ITEM NUMBER: 1 DATE: 10-20-20 Ms. Bielert addressed questions in regards to Covid restrictions, landscaping, and lighting. Director Dunsmore stated that a landscape plan of this size is the responsibi lity of the entire property, and staff will work with the property owner on this. Chairperson Dariz closed the Public Comment period. MOTION: By Commissioner Zirk and seconded by Commissioner Keen to approve the Draft Resolution 2020 approving a Conditional Use Permit (USE20-0045) allowing an indoor recreation service use in the Commercial retail zoning district, on APN 056-031-062, at 8200 El Camino Real (Planet Fitness), based on findings and subject to conditions of approval, with an added condition that allows signage along the US101 to be taller up to approximately 45 feet, so the applicant can place their sign at the bottom of the pillar. Motion passed 6:0 by a roll-call vote. 3. CONDITIONAL USE PERMIT FOR GARAGE (7900 Sinaloa Ave.) The proposed project consists of an oversized detached garage. The project qualifies for a Class 3 Categorical Exemption under CEQA Section 15303, construction of accessory (appurtenant) structures. Ex-Parte Communications: Recommendation: Approve the project with conditions. (USE20-0061) EX PARTE COMMUNICATIONS None Planner Holder presented the staff report. Director Dunsmore and Planner Holder answered questions from the Commission. Director Dunsmore stated that in the future, these types of structures will be incorporated into the design/code standards, to ensure neighborhood compatibility. PUBLIC COMMENT The following members of the public spoke during public comment: Joel Hitchen. Mr. Hitchen stated that he is not currently interested in running power to the garage, and the garage will be used for storage. Mr. Hitchen asked for the overhang to remain as is due 3 PC Minutes of 9/15/2020 Page 4 of 4 ITEM NUMBER: 1 DATE: 10-20-20 to cost, and stated that windows will also increase cost. Mr. Hitchen addressed questions from the Commission. Commissioner Zirk left the meeting at 7:01 p.m. Chairperson Dariz closed the Public Comment period. MOTION: By Commissioner Anderson and seconded by Commissioner Shaw to approve Draft Resolution 2020 approving a Conditional Use Permit (USE20-0061) allowing a 720 square foot detached garage on APN 030- 132-013 at 7900 Sinaloa Ave., based on findings and subject to conditions of approval, with added conditions to leave the 8” overhang, add two high clorestory windows higher than 8 feet on the east facing side wall (staff to work with applicant on exact location), which are 2’ x 4’, the color of the building shall match the house, the roof shall match the neighborhood, and landscaping will be left up to the applicant. Motion passed 5:0 by a roll-call vote. COMMISSIONER COMMENTS AND REPORTS None DIRECTOR’S REPORT Director Dunsmore stated that there are no items on the scheduled for the October 6, 2020 meeting, so that meeting may be cancelled. Director Dunsmore stated that Housing Element should be heard on October 20th, and stated that the upcoming Council agenda will include the Amendment to the Del Rio Specific Plan. Director Dunsmore answered questions in regards to the A&W property, and said he will follow-up with the property owner. ADJOURNMENT – 7:16 p.m. The next regular meeting is scheduled for October 6, 2020, at City Hall, Council Chambers, 6500 Palma Avenue, Atascadero. MINUTES PREPARED BY: ____________________________ Annette Manier, Recording Secretary Administrative Assistant 4 Atascadero Planning Commission Staff Report – Community Development Department SBDV 20-0047 Ramona Road Tentative Parcel Map 2930, 2945 Ramona Rd Miller RECOMMENDATION: Planning Commission adopt Draft Resolution recommending that the City Council approve a Tentative Parcel Map including a road abandonment and dedication of new right-of-way (AT 20-0013). Project Info In-Brief: PROJECT ADDRESS: 2930, 2945 Ramona Road Atascadero, CA APN 049-211-038 and 049-212-001 PROJECT PLANNER John Holder Associate Planner 470-3448 jholder@atascadero.org REPRESENTATIVE Dennis Schmidt/Granite Ridge Development Consultants PROPERTY OWNER Viki and Nick Miller GENERAL PLAN DESIGNATION: ZONING DISTRICT: SITE AREA EXISTING USE PROPOSED USE Rural Estate (RE) Residential Suburban (RS) 12.35 acres Residential/Vacant Lot Residential/Vacant Lot ENVIRONMENTAL DETERMINATION ☐ Environmental Impact Report SCH: ___________________________ ☐ Negative / Mitigated Negative Declaration No. ___________ ☒ Categorical Exemption CEQA – Guidelines Section 15315 ☐ Statutory Exemption §§ 21000, et seq & ________________________ ☐ No Project – Ministerial Project ITEM NUMBER: 2 DATE: 10-20-20 5 DISCUSSION: Existing Surrounding Uses / Parcel Configurations: Existing Zoning Existing Aerial / Surrounding North: South: East: West: Open Space (OS), Highway 101 Residential Suburban (RS) and Open Space (OS) Highway 101 Open Space (OS) Summary: The project involves a lot line adjustment, subdivision of one parcel into two parcels, the abandonment of an unimproved portion of Ramona Road right-of-way (ROW), and dedication of new right-of-way. The property to the southwest of Ramona Road contains an existing colony home and two underlying colony lots (Lot 15 and 14A). Lot 14A currently consists of land on both sides of the existing Ramona Road pavement as the existing road was built outside of the recorded easement. The property to the northeast (Lot 14, and a portion of Lot 14A) is vacant and contains the unimproved portion of Ramona Road right-of-way. The proposed lot line adjustment and abandonment of the Ramona Road right-of-way will allow for: 1) the realignment of the public road right-of- way onto the existing Ramona Road pavement location and 2) sufficient acreage to subdivide Lot 14 (2930 Ramona Road) into two parcels for future residential development. The proposed subdivision and Lot Line Adjustment acreage is summarized as follows: Historic Lot Areas (acres) Proposed LLA Areas (acres) Proposed Subdivision Parcel Areas (acres) Lot 14 4.53 5.54 2.50 3.04 6 Lot 14A 4.48 3.59 ----- ----- Lot 15 3.34 3.22 ----- ----- Total 12.35 12.35 ----- ----- Analysis: Zoning The parcels are located in the Residential Suburban zoning district. The minimum lot size in the Residential Suburban zone ranges from two and one-half (2.5) acres to ten (10) acres based on performance standards. Performance standards include distance from center of community, septic suitability, percolation rate, average slope, condition of access, and average lot sizes within a 1,500 feet radius. The calculated minimum lot size for these parcels based on performance standards is 2.5 acres. The Lot Line Adjustment and Road Abandonment will allow sufficient acreage to subdivide Lot 14 into two parcels of 2.50 and 3.04 acres, therefore, the proposed lots comply with City standards. Access The Ramona Road right-of-way is located on Lot 14 but the road was built outside the right-of-way and on private property. All resulting parcels will be served by Ramona Road with the exception of Lot 15, which will be accessed from the unbuilt portion of San Benito Road that runs along the property line boundary of Lots 14A and Lot 15. Future development of this parcel will require construction of the unbuilt right -of-way along the property frontage and connecting to Ramona Rd. Right-of-Way Abandonment The applicant is proposing to abandon an unbuilt portion of Ramona Road (recorded with the original Colony Map) and dedicate new right-of-way over the existing road. The relocated road easement (right-of-way) will correct a historical issue. The following map shows the proposed right-of-way abandonment and dedication. 7 Ramona Road Existing Conditions There are specific findings that need to be made to abandon the unbuilt portion of Ramona Road. The City must find that: 1. The abandonment is consistent with the Circulation Element of the City’s General Plan. 2. Right-of-way to be abandoned is deemed excess right-of-way and no longer required by the public. While Ramona Road is shown on the Circulation Element, Figure III -2 (General Plan Circulation Diagram), this unused portion of Ramona Road right-of-way is not needed if right-of-way is dedicated over the existing road alignment to ensure that Ramona Road is contiguous. In addition, the abandonment does not conflict with Policy 2.1 Program 4 of the City’s Circulation Element since a potential trail in this location is not practicable or desired. Therefore, both findings can be made. Because this abandonment is part of a Parcel Map that includes dedication of new right - of-way, the City does not need to follow the State and Highways code (Section 8331) process for summary vacation, however, it is important to note that these findings, while not required, can still be met, including: Proposed ROW Abandonment Proposed ROW Dedication 8 (a) For a period of five consecutive years, the street or highway has been impassable for vehicular travel. (b) No public money was expended for maintenance on the street or highway during such period. Conclusion: The proposed Tentative Parcel Map, which includes a right-of-way abandonment and dedication of new right-of way meets all required findings and requirements set forth in the Atascadero Municipal Code. ENVIRONMENTAL DETERMINATION: The proposed project is Categorically Exempt (Class 15315) from the provisions of the California Environmental Quality Act (California Public Resources Co de §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) CEQA pursuant to CEQA Guidelines Section 15315, because it is considered a minor land division of four (4) or fewer parcels on slopes less than twenty (20) percent. FINDINGS: To recommend approval of proposed Tentative Parcel Map AT 20-0013 and requested road abandonment, the Planning Commission must make the following findings. These findings and the facts to support them are included in the attached draft Planning Commission Resolution. Tentative Parcel Maps / Tentative Subdivision Maps 1. The proposed subdivision, together with the provisions for its design and improvement, is consistent with the General Plan (Government Code§§ 66473.5 and 66474(a) and (b)): 2. The site is physically suitable for the type of development (Government Code§ 66474(c)): 3. The site is physically suitable for the proposed density of development (Government Code § 66474(d)): 4. The design of the subdivision or the proposed improvements will not cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat. (Government Code § 66474(e)): 5. The design of the subdivision or the type of improvements will not cause serious health problems. (Government Code § 66474(f)): 9 6. The design of the subdivision will not conflict with easements for access through or use of property within the proposed subdivision. (Government Code § 66474(g)): 7. The installation of public improvements are necessary prior to recordation of a Final Map in order to insure orderly development of the surrounding area (Government Code § 66411.1(b)(2): Road Abandonment: 1. The abandonment is consistent with the Circulation Element of the City’s General Plan. 2. Right-of-way to be abandoned is deemed excess right-of-way and no longer required by the public. ALTERNATIVES: 1. The Planning Commission may recommend modifications to the project and/or conditions of approval for the project. Any proposed modifications including conditions of approval, should be clearly stated in the motion. 2. The Planning Commission may determine that more information is needed on some aspect of the project and may refer the item back to the applicant and staff to develop the additional information. The Commission should clearly state the type of information that is required. A motion, and approval of that motion, is required to continue the item. 3. The Planning Commission may recommend that the City Council deny the project. The Commission must specify what findings cannot be made, and provide a brief oral statement, based on the Staff Report, oral testimony, site visit, correspondence, or any other rationale introduced and deliberated by the Planning Commission. ATTACHMENTS: 1. Draft Resolution 10 ATTACHMENT 1: Draft resolution SBDV20-0047 DRAFT PC RESOLUTION A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ATASCADERO, CALIFORNIA, RECOMMENDING COUNCIL APPROVE TENTATIVE PARCEL MAP AT 20-0013 THAT INCLUDES AN ABANDONMENT OF A PORTION OF RAMONA ROAD RIGHT-OF-WAY AND DEDICATION. 2930 RAMONA ROAD (APN 049-212-001) AND 2945 (APN 049-211-038) RAMONA ROAD (MILLER) WHEREAS, an application has been received from Viki and Nick Miller, 2930 Ramona Road, Atascadero, CA 93422 (Owner) and Granite Ridge Development, 8679 Santa Rosa Road, Atascadero, CA 93422 (Applicant) to consider the abandonment of a portion of Ramona Road that is located within a residential property, a lot line adjustment, and subdivision of parcel (project) through the approval of Tentative Parcel Map at 2930 Ramona Road (APN 049-212-001) and 2945 (APN 049-211-038) Ramona Road and, WHEREAS, the site’s current General Plan Designation Residential Estate (RE); and WHEREAS, the site’s current zoning district is Residential Suburban (RS); and, WHEREAS, the minimum lot size within the RS zoning district is 2.5 to 10 acres consistent with performance standard in the Atascadero Municipal Code; and WHEREAS, the existing site has a combined gross area of 12.35 acres; and WHEREAS, the project includes the abandonment of an unbuilt portion of the Ramona Road right-of-way and dedication of new public right-of-way over the existing roadway location as part of the Tentative Parcel Map; and WHEREAS, with the dedication of new public right-of-way, the proposed road abandonment is in conformance with the Circulation Element of the General Plan and all other applicable General Plan policies; and WHEREAS, the portion of the right-of-way, as shown on the attached Exhibit B, has never been improved and has been impassable for vehicular travel for a period of five consecutive years and no public funds have been expended for maintenance on the subject right-of-way during such period; and 11 WHEREAS, the laws and regulations relating to the preparation and public notice of environmental documents, as set forth in the state and local guidelines for implementation of the California Environmental Quality Act (CEQA) have been adhered to; and WHEREAS, a timely and properly noticed Public Hearing upon the subject Tentative Parcel Map application was held by the Planning Commission of the City of Atascadero, at which hearing evidence, oral and documentary, was admitted on behalf of said Tentative Parcel Map and Road Abandonment; and NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Atascadero makes the following findings, determinations and recommendations with respect to the proposed map: SECTION 1. Recitals: The above recitals are true and correct. SECTION 2. Public Hearing. The Planning Commission of the City of Atascadero, in a regular session assembled on October 20, 2020, resolved to recommend that the City Council Tentative Parcel Map AT20-0013 as shown in Exhibit A, attached hereto and incorporated herein by this reference. SECTION 3. CEQA. The proposed map qualifies for a Categorical Exemption from the California Environmental Quality Act (CEQA), Public resources Code Section 21000 et seq., Section 15315: Minor Land Divisions. SECTION 4. Findings. The Planning Commission finds as follows: Tentative Parcel Map: 1. The proposed subdivision, together with the provisions for its design and improvement, is consistent with the General Plan (Government Code§§ 66473.5 and 66474(a) and (b)). Fact: The General Plan designation for the site is Residential Estate with a two and a half-acre minimum lot size (RE) based on performance standards. The lots created will each be a minimum of 2.5 acres (gross) and comply with performance standards in the Atascadero Municipal Code. They will also have a General Plan designation of Residential Estate. 2. The site is physically suitable for the type of development (Government Code§ 66474(c)). Fact: The lots are located along a minor arterial road with utilities, excepting the City sewer, available. The site is surrounded single-family residential properties and open space. The topography is gently sloped (less than 20% grade) and no development is proposed. 3. The site is physically suitable for the proposed density of development (Government Code § 66474(d)). 12 Fact: The proposed lots are a minimum of two and a half acre in size. Under current standards, each lot could have a primary residence, accessory dwelling unit, and two detached accessory structures. The topography and suitable soil conditions can support the proposed maximum density if development was proposed. 4. The design of the subdivision or the proposed improvements will not cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat. (Government Code § 66474(e)), and Fact: The proposed project will effect two parcels, one that is vacant and one that currently contains existing residential structures. Both parcels do not have significant tree coverage or water drainage features that might support fish or significant wildlife habitat. The parcels are located adjacent to Graves Creek. Future residences are subject to post-construction stormwater and creek setback requirements that will prevent significant impact to water drainage and creek areas. Additionally, the project will utilize existing roads and will not affect the drainage pattern of the neighborhood. 5. The design of the subdivision or the type of improvements will not cause serious health problems. (Government Code § 66474(f)), and Fact: Future development of single-family residences will not cause serious health problems. 6. The design of the subdivision will not conflict with easements for access through or use of property within the proposed subdivision. (Government Code § 66474(g)), and Fact: The proposed subdivision includes a right-of-way abandonment of an unconstructed portion of Ramona Road. The projects includes a new right-of-way dedication for the constructed portion of Ramona Road that shall be offered to the public in perpetuity. San Benito Road right-of-way exists on the northern and western boundaries of the parcels. The subdivision will not conflict with this right-of-way. Therefore, the design of the subdivision will not conflict existing easements. 7. The installation of any public improvements deemed necessary prior to recordation of a Final Map is in order to insure orderly development of the surrounding area (Government Code § 66411.1(b)(2), and Fact: The map contains conditions as shown in Exhibit A to allow for future public improvements within the new right-of-way dedication and all conditions shall be met prior to recordation of a Final Map. 8. The subdivision and subsequent development will be accomplished without detriment to adjacent properties, and Fact: The neighborhood consists of a range of lot sizes that have been subdivided over time. The creation of an additional lot could increase residential density by up to one primary residential unit. Surrounding parcels range in size from less than a quarter acre to nearly twelve Road Abandonment: 13 1. The abandonment is consistent with the circulation element of the City’s General Plan. Fact: The abandonment would not conflict with Policy 2.1 Program 4 of the City’s Circulation Element as the abandonment would not be appropriate for a potential trail location. Ramona Road is identified as a City-maintained road, however the realignment of the right-of-way is offered for dedication on the constructed portion of Ramona Road allows for a contiguous roadway. 2. Right-of-way to be abandoned is deemed excess right-of-way and no longer required by the public. Fact: The applicant is proposing to abandon an unbuilt portion of Ramona Road and dedicate new public right-of-way over the existing road alignment. With the dedication, the unbuilt portion is not needed for public vehicular or pedestrian. The proposed lot line adjustment ensures that all resulting parcels abut a public right-of-way for access. SECTION 5. Recommendation of Approval. The Planning Commission of the City of Atascadero, in a regular session assembled on October 20, 2020 resolved to recommend that the City Council approve Parcel Map AT 20-0013 including an abandonment for a portion of the Ramona Rd right-of-way and dedication of new public right-of-way subject to the following: EXHIBIT A: Conditions of Approval EXHIBIT B: Tentative Parcel Map 14 BE IT FURTHER RESOLVED that a copy of this Resolution be delivered forthwith by the Planning Commission Secretary to the City Council of the City of Atascadero. On motion by ________ and seconded by _________ , the foregoing resolution is hereby adopted in its entirety by the following roll call vote: AYES: (0) NOES: (0) ABSENT: (0) ABSTAINED: (0) ADOPTED: October 20, 2020 CITY OF ATASCADERO, CA ________________________________________________ Mark Dariz Planning Commission Chairperson ATTEST: ___________________________________ Phil Dunsmore Planning Commission Secretary 15 Exhibit A: Conditions of Approval SBDV20-0047 Conditions of Approval Tentative Parcel Map 2930 and 2945 Ramona Road SBDV 20-0047 / AT 20-0013 Timing BL: Business License FM: Final Map GP: Grading Permit BP: Building Permit FI: Final Inspection TO: Temporary Occupancy FO: Final Occupancy Planning Services 1. The project approval becomes effective fourteen (14) days following the Planning Commission approval unless prior to the time, an appeal to the decision is filed as set forth in Section 9-1.111(b) of the Zoning Ordinance. Ongoing 2. Approval of this Tentative Parcel Map shall be valid for a period of twenty-four (24) months from the date of City Council action, consistent with Section 66452.6(a)(1) of the California Subdivision Map Act. FM 3. The approved Tentative Parcel Map may be extended consistent with Section 66452.6(e) of the California Subdivision Map Act. Any requested map extension shall be consistent with Section 11- 4.23 of the Atascadero Municipal Code. FM 4. The Community Development Department shall have the authority to approve minor changes to the project that (1) result in a superior site design or appearance, and/or (2) address a construction design issue that is not substantive to the Tentative Parcel Map. FM 5. The Subdivider shall defend, indemnify, and hold harmless the City of Atascadero or its agents, officers, and employees against any claim or action brought to challenge an approval by the City, or any of its entities, concerning the subdivision. Ongoing 6. The Subdivider shall pay all applicable Quimby Act fees to the City in accordance with the fee schedule and policies in effect at the time of subsequent applications. FM Engineering 9. Documents that the City of Atascadero requires to be recorded concurrently with the Map (e.g.: easements not shown on the map, common driveway agreements, etc.) shall be listed on the certificate sheet of the map. FM 10. The City of Atascadero may require an additional map sheet for information purposes in accordance with the Subdivision Map Act. FM 11. Easements that are not intended to continue in perpetuity shall not be shown on the Parcel Map and shall be recorded by separate instrument. FM 12. The Parcel Map shall include a new right-of-way dedication to the public for the constructed portion of Ramona Road right-of-way to the satisfaction of the City Engineer. 13. The new right-of-way alignment within the subject property shall be a minimum of 40-feet in width and shall provide sufficient space to allow for a future road shoulder, four feet wide from the edge of pavement, to the extent feasible and to the satisfaction of the City Engineer. 14. The Subdivider shall be responsible for the placement of new centerline monuments in accordance with City Standards, to the satisfaction of the City Engineer. 15. The new right-of-way shall be offered to the public in perpetuity. FM 16 Conditions of Approval Tentative Parcel Map 2930 and 2945 Ramona Road SBDV 20-0047 / AT 20-0013 Timing BL: Business License FM: Final Map GP: Grading Permit BP: Building Permit FI: Final Inspection TO: Temporary Occupancy FO: Final Occupancy 16. The right-of-way abandonment shall be perfected upon recordation of the Parcel Map. FM 17. Prior to recording the Map, the Applicant shall have the map reviewed by the public utility providers for power, telephone, gas, cable TV, and the Atascadero Mutual Water Company. The Applicant shall obtain a letter from each utility company stating that the easements and rights- of-way shown on the map for public utility purposes are acceptable FM 17 ITEM 2 | 10/20/2020 Ramona Road Tentative Parcel Map SBDV 20-0047 / Schmidt ADDITIONAL INFORMATION MAY BE OBTAINED BY CONTACTING THE ATASCADERO COMMUNITY DEVELOPMENT DEPARTMENT AT http://www.atascadero.org 6500 PALMA AVENUE | ATASCADERO, CA 93422 | (805) 461-5000 Exhibit B: AT 20-013 18 Atascadero Planning Commission Staff Report - Community Development Department Annex Subdivision – Master Plan of Development Map and Master Plan Reconsideration RECON20-0078 1827 & 1843 El Camino Real SUBJECT: The applicant is requesting a reconsideration of a previously approved and expired Vesting Tentative Tract Map (TR 3104) that allowed for a six (6) lot subdivision with a commercial remainder parcel. The project is within the Del Rio Road Commercial Area Specific Plan boundary and is consistent with the previously certified Environmental Impact Report (EIR No. 20100051034), EIR Addendum, and recent changes to the Specific Plan document. A new map number was issued by the County (TR 3147) as their previous map has expired. The applicant is also requesting a reconsideration of the corresponding Master Plan of Development that expired concurrently with the map and is required by the Specific plan prior to development moving forward. Reconsiderations are technically new entitlement approvals but have no or minimal changes from the previous approval as they remain consistent with all applicable City codes. RECOMMENDATION: Staff recommends: 1. The Planning Commission adopt the Draft Resolution approving a Vesting Tentative Tract Map (TR 3147) and Master Plan of Development to allow a six (6) lot subdivision on portions of APN’s 049-102-032 and 020. Situation and Facts 1. Applicant / Property Owner: MP Annex, LLC, 284 Higuera Street, San Luis Obispo, CA 93401 2. Project Address: 1827 & 1843 El Camino Real, Atascadero, CA 93422, APN’s 049-102-032 (portion), 049-102-020 (portion) ITEM NUMBER: 3 DATE: 10/20/20 19 4. General Plan Designation: Single-Family Residential (SFR-X) / General Commercial 5. Zoning District: Residential Single-Family (RSF-X) / Commercial Retail / SP-2 Overlay 6. Site Area: 3.98 acres total (1.67 acres residential) 7. Existing Use: Vacant (Road under construction) 8. Environmental Status: Map Reconsideration is consistent with Certified Environmental Impact Report No. 20100051034 – Final EIR Del Rio Road Commercial Area Specific Plan and the subsequent 2020 EIR addendum DISCUSSION: Background The existing 1.67-acre site at 1827 and 1843 El Camino Real is currently under construction. A Public Improvement Permit has been issued for the subdivision and road construction is almost complete. A tentative map to subdivide the residential portion of the two parcels into six lots was approved by the Planning Commission on November 21, 2017. The applicant submitted subdivision improvement plans and is nearing completion of all subdivision improvements. A final map for the project has also been submitted and will be ready to record in the next few weeks. The original tentative map and master plan of development expired in December 2019 prior to completion of the improvements and recordation of the final map. Because the map continues to meet all zoning, Specific Plan, and code required development standards, this project is being brought forward as a reconsideration of the original project. No changes to the project have been made from the previous approval with the exception of the removal of a pedestrian easement that requires a path to remain open between the residential project, through the commercial 20 properties, and out to El Camino Real (discussed below), and modification of the fair share conditions in alignment with the modified intersection and interchange improvements adopted with the updated specific plan . Surrounding Land Use and Setting North: Existing Single- Family Residential / RSF-X South: Existing Single- Family Residential / RSF-X (PD-17 Overlay) East: Existing Single- Family Residential / Residential Suburban (RS) West: Vacant Commercial Retail (CR/Specific Plan-2) ANALYSIS: The proposed project consists of a request for approval of Tentative Vesting Tract Map (TR 3147) and associated master plan of development to allow for the subdivision of two existing lots at 1827 and 1843 El Camino Real. The entire 1.67 acres of residentially zoned portions of the properties will be subdivided into six (6) smaller lots in the Residential Single-Family (RSF-X) zone, which has a minimum lot size of 1/2-acre net area but allows up to 4 units per acre with a Planned Development or Specific Plan overlay zone. The proposed lot sizes range in size from 0.20 acres to 0.27 acres. The commercially zoned portions of the properties are proposed as remainder lots for future subdivision and development. The tract map was originally approved concurrently with a master plan of development which showed residential designs and locations. This proposed project is located within the Del Rio Road Commercial Area Specific Plan (SP-2). The Specific Plan allows for subdivision into 6 parcels similar to Planned Development Overlay Zone No. 17 standards with the approval of a Master Plan of Development. Subdivision Design The proposed six lot development would be accessed via South Mirasol Way. This project will extend South Mirasol Way to provide access to all 6 residences with a cul-de-sac. Each residence contains a separate driveway for parking and a two-car garage, consistent with the PD-17 standards. On-street parking is not available, but each driveway has ample space to accommodate additional vehicles/guests. The extended street would match the centerline and street geometrics of the exist ing South Mirasol Way, therefore Staff and the applicant design team carried the previous street design through for neighborhood continuity. The road was originally envisioned to extend through the project site and connect to future development sites, however, resulting roadway geometrics would not meet minimum City and State standards so was determined infeasible. The Specific Plan approval provided a condition for this project to have a cul -de-sac. The applicant has met this specified condition. 21 Proposed Subdivision The preliminary subdivision design, as shown in the approved 2012 Master Plan of Development showed a pedestrian path and “emergency access” between proposed lots 1 and 4 to allow for a connection between this project and potential future residential development to the north. Atascadero Fire & Emergency Services reviewed the condition and determined that the emergency access was not needed and the future subdivision to the north may be designed in such a way to facilitate sufficient emergency access without the connection. As an alternative, a pedestrian path, adjacent to lot 6 and connecting through the future commercial development area to El Camino real was proposed with the original tentative tract map. When the commercial center was planned as a pedestrian oriented retail center, this connection seemed viable and appropriate. However, updates to the Del Rio Road Commercial Area Specific Plan now envision a business pa rk with potential for light industrial uses. As there will be potential back of building maintenance areas potentially adjacent to the residential development and the center may have less evening use, this open path creates safety concerns. The current pat h proposal includes access to the fenced in project detention basin and continues down a 10 -foot wide fenced in pathway adjacent to lot 6. Staff is recommending, and the applicant is in support of, removing this path from the conditions of approval. The path and easement would still remain 22 for access to, and maintenance of, the basin, however, the path would stop adjacent to the basin and be closed to the adjacent commercial property. Should the residents want a gate that this location in the future, they can pursue that effort with the adjacent commercial development without a formal easement. Architectural Design The Specific Plan, which governs development within the Specific Plan Area, is silent on requirements for architectural design of the single-family units. The document relies on the Design Review process to drive architectural design of the proposed units. The DRC did review and endorse the architectural concept during original project approval. The architectural elevations of the residential u nits utilize “California Farmhouse” and “California Colonial” architectural themes, which are modernized version of “farmhouse” and “colonial” architecture. Three elevation styles are proposed for the single-family units. The proposed architecture fully represents the intent of a “high quality” architectural design intended for Planned Developments and envisioned by the Specific Plan. An earth toned color and white color scheme is proposed. Example of Proposed Elevation 23 Landscaping Plan Consistent with Master Plan of Development standards, the applicant has included a landscaping plan. The landscaping plan has been reviewed against the Atascadero Municipal Code (AMC) to ensure water efficient landscaping. The applicant has proposed drought tolerant landscaping throughout the project. All fencing will be of high quality materials. Consistency with the Del Rio Road Commercial Area Specific Plan The proposed project has been reviewed for consistency with the amended Del Rio Road Commercial Area Specific Plan. The proposed project will be required to:  Annex into the City’s Community Facilities District (CFD) – This has been completed  Provision to pay into the City’s inclusionary housing fund – fees to be charged with issuance of building permits for residential units  Payment of fair share costs for intersection improvements to Del Rio Roa d / El Camino Real intersection – conditions updated to reflect modified intersection improvements adopted as part of the Specific Plan amendment in September 2020  Payment of fair share mitigation fees for Highway 101 / Del Rio Road Interchange fees – conditions updated to reflect modified interchange improvements adopted as part of the Specific Plan amendment in September 2020 Proposed Environmental Determination This project is a necessarily included element of the projects considered in Final EIR No. 20100051034 – Final EIR Del Rio Road Commercial Area Specific Plan certified by the City Council on June 26, 2012, and as amended by the City Council July 2017 and September 2020, which adequately addressed the effects of the proposed project. No substantial changes have been made in the project, no substantial changes in the circumstances under which the project is being undertaken and no new information of substantial importance to the project which was not known or could not have been . Conclusion The proposed project is consistent with the Del Rio Road Commercial Area Specific Plan, and the City’s Municipal Code. The applicant is ready to move forward with recordation of the final map and construction of the homes. The proposed project contributes additional housing stock at a time that the State and San Luis Obispo County is in need of additional housing units. ALTERNATIVES: 1. The Commission may include modifications to the project and/or conditions of approval for the project. 2. The Commission may determine that more information is needed on some aspect of the project and may refer the item back to the applicant and staff to develop the 24 additional information. The Commission should clearly state the type of information that is required and move to continue the item to a future date. 3. The Commission may deny the project. The Commission must specify the reasons for denial of the project and make an associated finding with such action. If the project is denied, the subdivision improvements will need to be removed to a level that provides driveway access only to the two existing lots and any necessary easements will need to be recorded. ATTACHMENTS: Attachment 1: Location Map, General Plan, and Zoning Attachment 2: PC Draft Resolution 25 Attachment 1: Location Map, General Plan and Zoning Zoning: Residential Single-Family (RSF-X) General Plan Designation: Single-Family Residential (SFR-X) 26 Attachment 2: Draft Resolution DRAFT RESOLUTION RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ATASCADERO, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT (MASTER PLAN OF DEVELOPMENT) AND VESTING TENTATIVE SUBDIVISION MAP (TRACT 3147), FOR THE ANNEX RESIDENTIAL PROJECT ANNEX SUBDIVISION WHELEN / MP ANNEX, LLC (RECON20-0078) WHEREAS, an application has been received from Whelen Consulting (PO Box 5021, San Luis Obispo, CA 93401) applicant, and owner, Annex MP, LLC (284 Higuera Street, San Luis Obispo, CA 93401), to consider a reconsideration of a project consisting of a Master Plan of Development, and Vesting Tentative Subdivision Map on a portion of two existing lots with the subdivision area comprising 1.67 acres located at 1827 & 1843 El Camino Real, Atascadero, CA 93422 (APN 102-032-049, and 020); and WHEREAS, the site’s current General Plan Land Use Designation is Single Family Residential (SFR-X); and WHEREAS, the site’s current Zoning District is Residential single Family (RSF-X) with a Specific Plan Overlay Zone (SP-2); and WHEREAS, The adopted Del Rio Road Commercial Area Specific Plan requires approval of a Master Plan of Development in the form of a Conditional Use Permit (CUP) to promote orderly and harmonious development and to enhance the opportunity to best utilize special site characteristics; and WHEREAS, the laws and regulations relating to the preparation and public notice of environmental documents, as set forth in the State and local guidelines for implementation of the California Environmental Quality Act (CEQA) have been adhered to; and NOW, THEREFORE BE IT RESOLVED by the Planning Commission of the City of Atascadero: SECTION 1. Recitals: The above recitals are true and correct. 27 SECTION 2. Public Hearing. The City Council of the City of Atascadero, at a Public Hearing held on November 12, 2019 resolved to approve the proposed zoning text amendments. SECTION 3. Facts and Findings. The City Council makes the following findings, determinations and approvals with respect to the Municipal Code Text Amendments: A. Findings for Approval of a Conditional Use Permit FINDING: The proposed project or use is consistent with the General Plan. FACT: The proposed project is consistent with the intention of Residential Single-Family Development, as envisioned by the Del Rio Road Commercial Area Specific Plan. The proposed project meets the underlying zoning ordinance’s prescribed minimum density requirements for 4 units per acre. FINDING: The proposed project or use satisfies all applicable provisions of the Title (Zoning Ordinance) including provisions of the Del Rio Road Commercial Area Specific Plan FACT: The proposed project meets all the development standards outlined in the Del Rio Road Commercial Area Specific Plan and all applicable provisions of the Atascadero Municipal Code. FINDING: The establishment, and subsequent operation or conduct of the use will not, because of the circumstances and conditions applied in the particular case, be detrimental to the health, safety, or welfare of the general public or persons residing or working in the neighborhood of the use, or be detrimental or injurious to property or improvements in the vicinity of the use. FACT: The proposed project will not be detrimental to the health, safety or welfare of the general public or persons residing or working in the vicinity as the proposed project includes residential uses that are consistent with the City’s underlying zoning (RSF-X), as well as consistent with the goals and policies of the City’s General Plan and Housing Element. Residential uses will not involve hazardous waste handling. FINDING: The proposed project or use will not be inconsistent with the character or the immediate neighborhood or contrary to its orderly development. FACT: The proposed project is consistent with the immediate neighborhood as it shares similar roadway geometrics, and additionally is proposed with similar PD-17 overly zone standards applied to the adjacent residential development. FINDING: The proposed use or project will not generate a volume of traffic beyond the safe capacity of all roads providing access to the project, either existing or to be improved in conjunction with the project, or beyond the normal traffic volume of the surrounding neighborhood that would result from full development in accordance with the Land Use Element. 28 FACT: The proposed project will generate 60 average new daily trips consistent with the certified Del Rio Road Commercial Area Specific Plan FEIR and subsequent 2017 and 2020 addendums and will continue to operate at an acceptable level of service with the proposed project, as well as what is considered build-out for the General Plan. The proposed project will be required to pay its fair share of intersection improvements to the Del Rio Road / El Camino Real intersection and the Del Rio Road / US Highway 101 interchange, consistent with the Del Rio Road Commercial Area Specific Plan and adopted improvement projects, subject to the satisfaction of the City Engineer. FINDING: The proposed project is in compliance with any pertinent City policy or criteria adopted by ordinance or resolution of the City Council, including the City’s Appearance Review Manual and the Inclusionary Housing Policy. FACT: The proposed project is conditioned to meet the City Council’s adopted Inclusionary Housing Policy and provide affordable housing units for individuals or families with incomes ranging from very-low, low, and moderate income. The proposed project has annexed into the City’s Community Facilities District to make the proposed project fiscally neutral. The proposed project meets the requirements of the governing Specific Plan. Therefore, the project, as proposed, is in compliance with pertinent City policies established by the City Council. B. Findings for Approval of Vesting Tentative Tract Map (TR 3141) FINDING: The proposed subdivision, design and improvements as conditioned, is consistent with the General Plan and applicable zoning requirements, including provisions of the Del Rio Road Commercial Area Specific Plan. FACT: The proposed project is consistent with General Plan Land Use Circulation and Housing Element Policies. The adopted governing Specific Plan allows for development of the residential portion of this parcel at a maximum base density of 4du/acre. As proposed, the project is consistent with the Del Ro Road Commercial Area Specific Plan concept and standards. FINDING: The proposed subdivision, as conditioned, is consistent with the proposed Master Plan of Development. FACT: The subdivision is consistent with the currently proposed Master Plan of Development. FINDING: The site is physically suitable for the type of development proposed. FACT: The site is generally flat and improvements have been installed to serve each lot. FINDING: The site is physically suitable for the density of development proposed. 29 FACT: The site is located at the terminus of South Mirasol Way and is adjacent to larger lot single-family to the east and commercial property to the west. The project will extend South Mirasol Way and provide for additional residences that maintain a similar lot development pattern. The project also acts as a buffer between commercial and more rural single-family residential uses. FINDING: The design and improvement of the proposed subdivision will not cause substantial environmental damage or substantially and unavoidably injure fish and wildlife or their habitat. FACT: environmental impacts have been fully addressed in the certified Final EIR and subsequent addendums. No substantial damage will occur to the environment or known habitat areas. FINDING: The design of the subdivision or the type of improvements will not cause serious health problems. FACT: The design of the subdivision or the type of improvements will not cause serious health problems. Road geometrics have been reviewed by the City Engineer and comply with current standards. FINDING: The design of the subdivision will not conflict with easements acquired by the public at large for access through, or the use of property within, the proposed subdivision; or substantially equivalent alternative easements are provided. FACT: The site is private property and no easements for public use exist at this time. FINDING: Covenants, Conditions and Restrictions (CC&R’s) or equivalent shall be required that incorporate the Master Plan of Development conditions of approval to ensure that the site retains the proposed qualities (architecture, colors, materials, plan amenities, fencing, and landscaping) over time. FACT: A condition of approval has been included in the attached resolution, requiring CC&R’s be recorded concurrently with the final map. FINDING: The proposed subdivision design and type of improvements proposed will not be detrimental to the health, safety or welfare of the general public. FACT: The proposed residential use will not be detrimental to the health, safety, or welfare of the general public or persons residing in the neighborhood. A residential use is consistent with the surrounding neighborhood to the east, and acts as a transition from adjacent commercial uses on El Camino Real. The road has been designed to meet all City, State, and Federal standards. SECTION 4. CEQA. The project is consistent with the Final Environmental Impact Report, SCH No. 20100051034, Del Rio Road Commercial Area Specific Plan, which was 30 certified on June 26, 2012 by the City Council of the City of Atascadero, in accordance with the requirements of the California Environmental Quality Act (CEQA) and subsequent 2017 and 2020 addendums. SECTION 5. Approval. The Planning Commission of the City of Atascadero, in a regular session assembled on October 20, 2020 resolved to approve a master plan of development and vesting tentative tract map consistent with the following: 1. EXHIBIT A: Conditions of approval / Mitigation Monitoring Program 2. EXHIBIT B: Tentative Tract Map (TR 3147) 3. EXHIBIT C: Master Plan of Development / Site Plan 4. EXHIBIT C: Landscape Plan 5. EXHIBIT D: Elevations / Floor Plan 6. EXHIBIT E: Colors and Materials Board 7. EXHIBIT F: Grading and Drainage Plan 8. EXHIBIT G: Utility Plan 31 On motion by Commissioner ________ and seconded by Commissioner _______ the foregoing resolution is hereby adopted in its entirety by the following roll call vote: AYES: ( ) NOES: ( ) ABSTAIN: ( ) ABSENT: ADOPTED: CITY OF ATASCADERO, CA ______________________________ Mark Dariz Planning Commission Chairperson Attest: ______________________________ Phil Dunsmore Planning Commission Secretary 32 Exhibit A Conditions of Approval City of Atascadero RECON20-0078, PLN 2017-1647 ANNEX SUBDIVISION 1827 & 1843 EL CAMINO REAL PARENT APN 049-102-032, 020 (PORTIONS) The following conditions of approval apply to the project referenced above. The conditions of approval are grouped under specific headings that relate to the timing of required compliance. Additional language within a condition may further define the timing of the required compliance. A. The following conditions shall be satisfied PRIOR TO THE RECORDATION OF A FINAL MAP, or at the time specified in the condition. Vesting Tentative Subdivision Map for all lots proposed in Tract 3161 was deemed complete on October 12, 2020, for the purposes of vested development rights and fees consistent with the Subdivision Map Act of the State of California. General Conditions. 1. The project shall be consistent with, and governed by, the Del Rio Road Commercial Area Specific Plan as amended in 2020 including the following:  Annexation into the City’s Community Facilities District prior to recordation of the Final Map;  Payment of Affordable Housing In-Lieu Fee at the time of building permit issuance based on 5% of the valuation of each unit;  Fair Share payment of US Highway 101 / Del Rio Road interchange fees based on the 2020 Traffic analysis update for the Del Rio Rd Specific Plan Amendment;  Fair Share payment of intersection improvements to Del Rio Road / El Camino Real based on the 2020 Traffic analysis update for the Del Rio Rd Specific Plan Amendment;  All pertinent mitigation measures contained in the Mitigation Monitoring Program for the Del Rio Road Commercial Area Specific Plan. ☐ PLN 2. The emergency services and facility maintenance costs listed below shall be 100% funded by the project in perpetuity. The service and maintenance costs shall be funded through a community facilities district established by the City at the developer's cost. The funding mechanism must be in place prior to or concurrently with acceptance of the final maps. The funding mechanism shall be approved by the City Attorney, City Engineer and Administrative Services Director prior to acceptance of any final map. The administration of the above mentioned funds shall be by the City. Developer agrees to participate in the community facilities district and to take all steps reasonably required by the City with regard to the establishment of the district and assessment of the property.  All Atascadero Police Department service costs to the project.  All Atascadero Fire Department service costs to the project.  Off-site common City of Atascadero park facilities maintenance service costs related to the project. ☐ PLN 33 3. Prior to recordation of the Tract Map, the Applicant shall establish a benefit maintenance assessment district, Property Owners’ Association, or similar funding mechanism approved by the City, to provide sufficient funds on an annual basis to pay for the operation, maintenance and future replacement of privately owned-in-common subdivision improvements. The engineer of record shall prepare and submit an estimated operating budget and capital improvement replacement analysis for review and approval by the City Engineer, prior to recordation of the Parcel Map. ☐ PLN 4. Prior to recording the Final Map, the Applicant shall have the map reviewed by the public utility providers for power, telephone, gas, cable TV, and the Atascadero Mutual Water Company. The Applicant shall obtain a letter from each utility company stating that the easements and rights -of-way shown on the map for public utility purposes are acceptable. ☐ PWD 5. Documents that the City of Atascadero requires to be recorded concurrently with the Final Map (e.g.: off-site rights-of-way dedications, easements not shown on the map, agreements, etc.) shall be listed on the certificate sheet of the map. ☐ PWD 6. The City of Atascadero may require an additional map sheet for information purposes in accordance with the Subdivision Map Act. ☐ PWD 7. Public improvement plans (PIPs) shall be prepared by a licensed civil engineer. PIPs shall be prepared on 24”x36” plan sheets and in accordance with Section 2 of City Standard Specifications. ☐ PWD 8. The Applicant is responsible for all right-of-way acquisitions and associated costs. ☐ PWD 9. Roadway signing and striping shall be in accordance with the California Manual on Uniform Traffic Control Devices (CA-MUTCD) and shall be located to provide adequate warning of the traffic calming improvements associated with speed reduction. ☐ PWD 10. All plans shall contain the City of Atascadero "Standard Notes for Improvement Plans" on file in the City Engineer's office. ☐ PWD A. Off-Site Road Improvements 11. The Subdivider shall overlay or reconstruct that portion of the existing South Mirasol Way affected by the extension of the sewer main, to the satisfaction of the City Engineer ☐ PWD B. On-Site Roadways 12. The horizontal and vertical design of roads shall be in compliance with the City of Atascadero Engineering Standards and Standard Specifications, to the satisfaction of the City Engineer. The City Engineer reserves the right to make modifications to all submitted road designs, when in the opinion of the City Engineer, the public’s health and safety is benefitted. ☐ PWD 13. The design of structural pavement sections shall be based on a Traffic Index (TI) = 5.5 and a 50-year design life. ☐ PWD 34 New roads with pavement placed prior to the construction of buildings will be subjected to additional construction traffic and wear associated with the on -site construction not included in the design life of the pavement section. Therefore to off-set this, the AC thickness shall be increased from that which is derived from Caltrans method by either:  1” if the pavement is placed prior to building construction (not phased).  1.5” if the pavement construction is phased (i.e. – a portion of the ultimate pavement thickness is deferred and a final pavement cap placed prior to final inspection). Final pavement cap shall not be less than 1.5”. 14. Street centerline monuments shall be provided at intersections and at the beginning and end of curves along the street centerline. ☐ PWD 15. Roadway signing, striping, and traffic signal modifications shall be in accordance with the California Manual on Uniform Traffic Control Devices (CA- MUTCD) and shall be designed and constructed to the satisfaction of the City Engineer. ☐ PWD 16. Prior to recordation of the Final Map, the Applicant shall establish a benefit maintenance assessment district, or similar funding mechanism approved by the City, to provide sufficient funds on an annual basis to pay for the operation, maintenance and future replacement of the internal road system serving Tract 3104, including but not limited to:  Pavement, pavement seals, aggregate base, road frontage improvements  Striping, signage, street furniture  Drainage facilities, detention basins, retention basins, bio-swales, & storm water treatment/control measures  Maintenance of slopes containing the road prism  Prior to recordation of the Final Map, the Applicant’s engineer shall prepare and submit an estimated operating budget and capital replacement analysis for review and approval by the City Engineer. ☐ PWD 17. Pavement and base sections shall be designed and constructed in accordance with the City of Atascadero Engineering Standards and Standard Specifications. When said standards and specifications are not clear, lack necessary details, or are silent, the minimum standard shall be based upon the current edition of the San Luis Obispo County Public Improvement Standards or Caltrans Standard Drawings and Standard Specifications, as determined by the City Engineer. ☐ PWD C. Grading 18. Where cut/fill slopes are visible from a roadway, slopes shall be contour graded to eliminate angular daylight/catch points and shall blend into the adjacent topography to the extent feasible, to the satisfaction of the City Engineer. ☐ PWD 19. All finish graded areas shall be landscaped or revegetated using a native seed mixture and shall demonstrate at least 70% ground coverage before final inspection. ☐ PWD D. Stormwater 35 20. A Storm Water Pollution Prevention Plan (SWPPP) is required prior to any ground disturbing activities. The WDID number provided upon acceptance of the SWPPP into the State’s SMARTS system registration shall be noted on the Title Sheet of the Public Improvement Plans. ☐ PWD 21. Common drainage basins (serving multiple lots) shall be designed to desilt, detain and meter storm flows in accordance with City regulations. ☐ PWD 22. Storm Sewer shall be of either cast-in-place or precast reinforced concrete pipe, polyvinyl chloride pipe, high density polyethylene pipe or an approved equal.  Minimum pipe diameter allowable on any storm drain within a roadway or road right-of-way shall be 18" diameter. A lesser size may be used for down drains on fill slopes if approved by the City Engineer.  Minimum design velocity in closed conduits shall be 2 f.p.s. when conduit is flowing to capacity and should not exceed 15 f.p.s.  Closed conduits shall be designed to convey the 10-year storm flow with gravity flow, the 25-year storm flow with head, and provide a safe overland route for the conveyance for the 100-year storm overflow.  Storm Sewer Manholes shall be located at junction points, changes in gradient, and changes in conduit size to the satisfaction of the City Engineer. On curved pipes with radii of 200' to 400', manholes shall be placed at the BC or EC of the curve and on 300' maximum intervals along the curve. On curves with radii exceeding 400', manholes shall be placed at the BC or EC of the curve and on 400' maximum intervals along the curve for pipes 24" and less in diameter and 500' maximum intervals along the curve for pipes greater than 24" in diameter. Curves with radii less than 200' will be handled on an individual basis and approved be the City Engineer.  Spacing of manholes or inlets, of such size as to be enterable for maintenance, shall not exceed 500' for drains 24" and smaller diameter and 600' for pipes greater than 24" in diameter, except under special conditions as approved by the City Engineer. The spacing of manholes shall be nearly equal wherever possible.  Manholes or junction boxes, entry to which does not fall in the gutter line, must have standard 24" diameter manhole covers. Those falling in the gutter line may use the standard grated manhole cover and serve also as an inlet manhole.  Storm Drain Inlets shall be spaced so that gutter flow does not exceed a depth of 6" at the face of the curb for a 10-year storm and so that a 25-year storm flow will not cause damage and can be contained within the right-of-way. ☐ PWD 23. Prior to approval of subdivision improvement plans, the project engineer shall provide calculations and a report confirming compliance with City regulations and the low-impact development requirements contained in the previously approved EIR and Master Plan of Development for the Walmart/Annex development. ☐ PWD 24. When a Storm Water Operation - Maintenance Plan (OMP) is required for an individual lot or group of lots, the City Engineer can require the OMP to be recorded as an agreement against each property. When recordation of an OMP agreement is required, the agreement shall contain provisions allowing the City to enter the property, following reasonable notice to the property owner or ☐ PWD 36 tenant, to conduct an inspection of the storm water system and post - construction storm water management controls. 25. When an OMP is required, the OMP shall include a section addressing annual inspection and reporting to the City by a third party, to the satisfaction of the City Engineer. ☐ PWD 26. Where storm water is concentrated as a result of new improvements, the drainage shall be conveyed in a non-erosive, controlled condition to an adequate point of discharge, to the satisfaction of the City Engineer. Where concentrated drainage from new improvements cannot be avoided and crosses more than one property, appropriate easements may be required. ☐ PWD 27. All stormwater management improvements to be owned or managed by the HOA shall be identified in an Operation and Maintenance Plan/Agreement (OMP) and shall be recorded concurrently with the Final Map. The OMP shall include a financial plan addressing annual and long-term maintenance as well as replacement. Specific requirements for stormwater management may be required to be identified on an additional Final Map information sheet. ☐ PWD E. Flood Control Basins 28. Flood control basins are utilized in the City of Atascadero, as determined appropriate depending upon site conditions: Retention basins, Detention basins, and Subsurface Infiltration Basins. In all cases, the Project Engineer shall provide evidence that the basin will completely drain within seven (7) days to the satisfaction of the City Engineer. Retention Basin. Any drainage basin which is used as a terminal disposal facility shall be classified as a retention basin. a. Basin Capacity. The basin capacity is to be based on the theoretical runoff from a 50-year storm, 10-hour intensity for 10- hour duration. No reduction in required capacity shall be given for soil percolation rates. b. Percolation Test Required. A minimum of 3 percolation tests per basin shall be submitted to the City Engineer for review and approval prior to approval of the plans. The project engineer shall submit calculations and a report demonstrating the basin will drain within seven-days of a single storm event as noted above. Deep soil borings may be required in areas where there is concern of shallow depth to groundwater or bedrock. Percolation tests shall be performed at depths below the basin bottom. Detention Basin. Any drainage basin which has a downstream outlet designed to meter the outflow shall be classified as a detention basin. Basin capacity shall be based on receiving the runoff from a 50-year storm with the watershed in its fully-developed condition, and releasing the flow equivalent to the runoff from a 2-year storm with the project site in its pre- development condition. The outlet shall release water in a non-erosive manner. Subsurface Infiltration Basins. Subsurface basins may be used for either retention or detention of site runoff, where their application is suitable for project ☐ PWD 37 conditions. Subsurface basins shall be limited to locations where the depth to seasonally high groundwater is greater than 10-feet below the deepest portion of the basin. Drain Rock. Drain rock shall be clean, crushed granite (or clean, angular rock of similar approved hardness) with rock size ranging from 1-1/2-inch to 3/4- inch. Rock gradation shall conform to the Specification of ASTM C-33 #4. Operational Requirements. i. Water quality of inflow (both sediment and chemical loading) may require pretreatment or separation ii. Maintenance plan, including provisions for vehicular access and confined-space entry safety requirements, where applicable iii. A safe overflow path shall be identified on the plan and may require easements Easement Requirements. All drainage basins accepting runoff from roads, streets or other common ownership areas shall be located in an easement offered for dedication to the public. Reversionary clauses shall not be permitted. If a fence is required it shall be located not more than 4 -inches inside the drainage easement line, except where setbacks are required as part of the land use permit or by the Land Use Ordinance. Overflow Path Required. The design of all drainage basins shall identify the designated route for overflow. The Project Engineer shall design the overflow path so that the flow in a 100- year storm is non-erosive and will not damage downstream improvements, including other basins. Easements may be required for concentrated flows across multiple properties. F. Water Distribution System 29. The Applicant shall extend the water distribution system to the satisfaction of the Atascadero Mutual Water Company (AMWC) and City Engineer. ☐ PWD 30. The water system shall include easements outside of the road rights-of-way for water system facilities as required by the AMWC and to the satisfaction of the City Engineer ☐ PWD 31. Each lot shall be served with a separate water lateral and meter in accordance with the AMWC requirements. ☐ PWD 32. Where the water distribution system requires an above ground reduced pressure unit, pressure booster station or other significant above ground facility, said facility shall be located in an easement contiguous to the road right-of-way and shall include visual screening, to the satisfaction of the AMWC, Community Development Director, and City Engineer. ☐ PWD 33. Fire hydrant locations shall be to the satisfaction of the City Fire Marshall. ☐ PWD 34. Properties and/or areas that are managed or owned by the HOA shall be metered separately to the satisfaction of the AMWC. ☐ PWD G. Wastewater Collection System 35. The gravity sewer system serving Tract 3104 and extending off -site shall be offered to the public including easements necessary for the operation, maintenance and replacement of the system. The wastewater collection system ☐ PWD 38 shall be designed and constructed in accordance with City standards and specifications, to the satisfaction of the City Engineer. 36. Prior to recordation of the Final Map, the Applicant shall establish a benefit maintenance assessment district, or similar funding mechanism approved by the City, to provide sufficient funds on an annual basis to pay for the operation, maintenance and future replacement of the wastewater collection system serving Tract 3104 (both on-site and the off-site extension). The engineer of record shall prepare and submit an estimated operating budget and capitol replacement analysis for review and approval by the City Engineer, prior to recordation of the Final Map. ☐ PWD 37. Gravity sanitary sewer (SS) mains shall terminate in manholes. ☐ PWD 38. Gravity SS mains shall be a minimum of eight (8) inches in diameter. ☐ PWD 39. Each lot served by the wastewater collection system shall pay all sewer fees prior to the issuance of a building permit. ☐ PWD 40. The on-site sewer laterals shall be privately owned and maintained by individual lot owners. ☐ PWD H. Easements 41. A 6-feet wide Public Utility Easement (PUE) shall be dedicated contiguous to the road rights-of-way. ☐ PWD 42. Road slope easements shall be dedicated where the road prism cut/fill slopes extend beyond the right-of-way. The easement shall extend not less than five feet (horizontally) beyond any daylight or catch line of the graded slope or other required road facility (such as a brow ditch, retaining wall, drainage swale, etc.), to the satisfaction of the City Engineer. ☐ PWD 43. Driveways serving more than one lot may require an easement for ingress/egress, public & private utilities, and drainage, to the satisfaction of the City Engineer. ☐ PWD 44. Drainage easements:  Easements shall be dedicated over areas containing drainage improvements that benefit or serve more than one property. The determination as to whether the easement is private or offered to the public will be determined by the City Engineer prior to approval of the subdivision improvement plan and Final Map.  Concentrated cross-lot drainage shall be avoided where possible; when required, concentrated drainage shall be conveyed via appropriate easements, to the satisfaction of the City Engineer.  Development on any lot that blocks or changes a natural drainage course may be required to provide an easement for the benefit of upstream tributary properties to an adequate point of discharge, to the satisfaction of the City Engineer. ☐ PWD 45. Wherever an easement is created for commonly owned or operated improvements for the benefit of more than one lot, there shall also be created a maintenance and operations agreement, to the satisfaction of the City Engineer and City Attorney. ☐ PWD 39 46. Easements that are not intended to continue in perpetuity shall not be shown on the Final Map and shall be recorded by separate instrument. I. Utilities 47. New utility distribution systems and services shall be constructed underground, to the satisfaction of the City Engineer. ☐ PWD 48. Each lot shall be served with separate services for water, sewer, gas, power, telephone and cable TV. Utility laterals shall be located and constructed to each lot in accordance with City Standards and Standard Specifications ☐ PWD B. The following conditions shall be satisfied prior to the issuance of the first of any DEMOLITION PERMIT, BUILDING PERMITS, SUBDIVISION IMPROVEMENTS, or at the time specified in the condition. 1. A landscape and irrigation plan shall be approved prior to the issuance of building permits and included as part of site improvement plan consistent with EXHIBIT C and must include the following:  All exterior meters, air conditioning units and mechanical equipment shall be screened with landscape material and/or architecturally compatible features. ☐ PLN 2. All project fencing shall be installed consistent with EXHIBIT C and details must be submitted and approved as a part of landscaping plan. ☐ PLN 3. Fire hydrant locations shall be located within the development to the satisfaction of the City Fire Marshall, if required. ☐ FD 4. Properties and/or areas that are managed or owned by the HOA shall be metered separately. ☐ PWD C. The following conditions shall IMPLEMENTED DURING THE CONSTRUCTION PHASE OF THE PROJECT. 5. All site work, grading, and site improvements shall be in substantial conformance with the Master Plan of Development as shown in any of the enclosed exhibits. ☐ PLN D. The following conditions shall be met prior to the RELEASE OF UTILITIES, FINAL INSPECTION, OR ISSUANCE OF A CERTIFICATE OF OCCUPANCY, whichever occurs first. 6. All landscaping is to be installed at each individual lot prior to final inspection. ☐ PLN E. The following conditions shall be complied with AT ALL TIMES that the use permitted by this planning application occupies the premise, and shall be applied to the project in perpetuity until such time that the use is extinguished. 7. The entitlement described at the location per this resolution is determined to be vested with the property upon issuance of a building permit. ☐ PLN 8. Approval of this entitlement shall be final and effective consistent with Atascadero Municipal Code (AMC) section 9-1.111 seq. et. al. ☐ PLN 40 9. Project construction must be in accordance with provided Exhibit(s), adopted with this Resolution. Changes to architecture, landscaping design, and non -substantive subdivision design may be approved by the Design Review Committee (DRC). ☐ PLN 10. In accordance with the Atascadero Municipal Code section 9-8.105, any violation of any of the conditions of approval is unlawful and may be cause for revocation of this entitlement and subject the applicant and/or future property owners to the penalties set forth in the Atascadero Municipal Code, as well as any other available legal remedies. ☐ PLN 11. The applicant shall agree to indemnify and defend at his/her sole expense any action brought against the City, its present or former agents, officers, or employees because of the issuance of this approval, or in any way relating to the implementation thereof, or in the alternative, to relinquish such approval. The applicant shall reimburse the City, its agents, officers, or employees, for any court costs and attorney's fees which the City, its agents, officers or employees may be required by a court to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve applicant of his/her obligations under this condition. ☐ CM 12. Should the described use be abandoned or extinguished, the property may be used and / or developed with any use allowed by the underlying zoning district. ☐ PLN **END CONDITIONS** 41 EXHIBIT B –VESTING TENTATIVE Subdivision MAP 42 EXHIBIT C: MASTER PLAN OF DEVELOPMENT / SITE PLAN 43 EXHIBIT D: LANDSCAPE PLAN 44 EXHIBIT D– LANDSCAPE PLAN WALLS / FENCES 45 EXHIBIT E: ELEVATIONS / FLOOR PLAN 46 47 48 49 50 51 52 53 54 EXHIBIT F: COLOR AND MATERIALS BOARD 55 EXHIBIT G: UTILITY PLAN See Project File for actual plan 56 EXHIBIT H – GRADING AND DRAINAGE See Project File for actual plan 57 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero Atascadero Planning Commission Staff Report – Community Development Department Kelly Gleason, Senior Planner, 470-3446, kgleason@atascadero.org 6th Cycle Housing Element Update Draft Plan (CPP19-0067) SUBJECT: The Housing Element is one of seven State mandated elements (chapters) of the City’s General Plan. 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 and certified by the State Department of Housing and Community Development (HCD), and adopted prior to December 2020. 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 Draft Housing Element has been prepared and has been reviewed and preliminarily accepted by the State for adoption. The Housing Element is intended to outline goals and policies consistent with the City’s General Plan and community vision in addition to addressing State requirements and laws. This new Housing Element will encompass housing policies and programs to be implemented through the year 2028. The document must then be submitted to the State for final certification prior to December 2020. RECOMMENDATIONS: Staff recommends that the Planning Commission adopt the Draft Resolution, recommending the City Council adopt the Atascadero 6th Cycle Housing Element and submit the element to the State for certification, based on findings. DISCUSSION: Background The City started the Housing Element update process in January of 2020. Since that time, the following has occurred:  A joint Planning Commission and City Council hearing took place on January 28, 2020. At that time, the Consultant outlined the process and received comments. 58 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero  In April 2020, the City Council reviewed the City’s Regional Housing Needs allocation (RHNA) and provided input on identified sites and policies to meet the identified housing needs.  In June 2020, the City Council reviewed the draft Housing Element and received public comment and authorized staff to submit the draft to the State Department of Housing and Community Development (HCD) for review.  HCD approved the draft Housing Element on September 24, 2020 following minor text amendments. Amendments to the Housing Element did not impact the proposed policy direction, but instead included language to clarify and support City policies.  Staff provided a progress update to the City Council on October 13, 2020 and directed staff to proceed with the adoption process. 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 Regional Housing Needs Allocation (RHNA) a. Identify resources that support housing for all income groups b. Complete an inventory of existing and new sites for housing development in support of meeting the City’s RHNA Housing Element law does not require the City to build all units identified a s part of the RHNA, but rather implement a plan to accommodate for these units throughout the City over the planning period (2019 through 2028). The Housing Element is not the only tool to solve housing problems but aims to identify constraints and barrier s and provide realistic solutions where able. Analysis Draft Housing Element The Housing Element is divided into 7 chapters outlining and analyzing the City’s current regulatory framework, demographics, RHNA requirements, housing programs, and constraints to housing development. The plan also includes a review of past Housing Element programs and the County’s regional chapter outlining the regional goals for housing based on the Countywide Regional Compact. The Chapters are organized as follows: A. Introduction B. Housing Plan C. Regional Chapter D. Needs Assessment 59 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero E. Housing Constraints F. Housing Resources G. Program Accomplishments 2014-2019 Housing Plan (Chapter B) The draft Housing Plan includes Goals, Policies and Programs aimed at supporting housing development throughout the City. The City’s overarching objective is to ensure that decent, safe housing is available to all current and future residents at a cost that is within the reach of the diverse economic segments in Atascadero. Additionally, the City must ensure that adequate services and infrastructure are available to serve our housing supply. To make adequate provisions for the housing needs of people at all income levels, state law (Government Code 65583[c]) requires that the City, at a minimum, identify specific programs that do all of the following:  Identify adequate sites, with appropriate zoning and development standards and services to accommodate the locality’s share of the regional housing needs for each income level.  Assist in development review and approval of adequate housing to meet the needs of extremely low-, very low-, low-, and moderate-income households.  Address and, where possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for people at all income levels, as well as housing for people with disabilities.  Conserve and improve the condition of the existing affordable housing stock and preserve assisted housing developments at risk of conversion to market-rate housing.  Promote equal housing opportunities for all people, regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. Housing Element policies and programs are intended to show how the City will comply with State housing law and support the production of affordable housing. Policies set the general framework to adopt the goal, while programs include an action that the City must take to implement a policy or goal and can include quantifiable objectives that will be used to report the City’s progress on Housing Plan Implementation to the State annually. Ongoing policies and programs that remain relevant have been carried over from the previous Housing Element. New policies and programs have been included in alignment with recent State law changes and to further project streamlining. The programs included in the plan identify the actions that will be taken to make sites available during the planning period with appropriate land use and development standards and with services/facilities to accommodate the City’s share of regional housing need for each income level. The programs also address identified housing issues in Atascadero and approaches to meet State law housing requirements. An overview of the Key Housing Element Programs The programs illustrated below are the most notable programs of the draft Housing Element and incorporate State HCD modifications. 60 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero  Program 1.A: Adequate Sites “The City of Atascadero has a remaining RHNA of 266 units for the 2018 -2028 RHNA planning period after credits for permitted or approved units are taken into consideration. Overall, the City can adequately accommodate the City’s curren t RHNA under existing General Plan and Zoning Regulations standards. The residential sites inventory to address the current RHNA consists of 11 mostly vacant sites with capacity to yield 497 new units. The City will maintain an inventory of available sites for residential development and provide it to prospective residential developers upon request, and the City will continue to track the affordability of new housing projects and progress toward meeting the City’s RHNA. The City will also continue allowing housing development on RMF-24 properties identified in the Housing Element Sites Inventory as a by-right use, not subject to a conditional use permit or specific plan permit, specific plan, or discretionary action. By right includes but is not limited to h ousing developments in which at least 20 percent of the units are affordable to lower income households. The City of Atascadero is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build these units. This includes the creation, adoption, and implementation of General Plan policies, zoning and development standards, and/or incentives to encourage the construction of various types of units .” At the April 14th City Council meeting, an analysis was presented identifying potential housing sites and rezone requests. Based on current zoning and availability of sites that meet the State’s size and density requirements, the City has adequate sites under current zoning to meet the remaining RHNA requirements. The RHNA is accommodated through a combination of assumed development of vacant and underutilized high density residential properties as well as assumed increases in ADU construction based on new State laws that limit the City’s ability to impose certain development standards and charge certain fees. The residential multi-family zoned sites identified in the Housing Element are identified to be allowed by-right but can be subject to meeting objective design standards.  Program 1.B: No Net Loss “Government Code Section 65863 stipulates that a jurisdiction must ensure that its Housing Element inventory can accommodate its share of the RHNA by income level throughout the planning period. If a jurisdiction approves a housing project at a lower density or with fewer units by income category than identified in the Housing Element, it must quantify at the time of approval the remaining unmet housing need at each income level and determine whether there is sufficient capacity to meet that need. If not, the city or county must “identify and make available” additional adequate sites to accommodate the jurisdiction’s share of housing need by income level within 180 days of approving the reduced -density project. The City will evaluate residential development proposals for consistency with goals and policies of the General Plan and the 2020 -2028 Housing Element sites 61 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero inventory and make written findings that the density reduction is consistent with the General Plan and that the remaining sites identified in the Housing Element are adequate to accommodate the RHNA by income level. If a proposed reduction of residential density will result in the residential sites inventory failing to accommodate the RHNA by income level, the City will identify and make available additional adequate sites to accommodate the its share of housing need by income level within 180 days of approving the reduced density project .” This program addresses new State law related to development of sites identified in the Housing Element that are used to meet the City’s RHNA. Under new State requirements, if an identified site is developed below density or for an income level above that identified in the Housing Element, the City must prove that additional sites exist to meet the remaining housing need. HCD assumes that all high density multi-family residential sites identified in the Housing Element will be developed with units at the low-, very low-, or extremely low-income level. If any of these sites is developed with moderate or market rate units, the City (in many cases staff will make this finding for by-right sites) must make findings upon project approval that adequate high-density housing sites exist, and must identify additional sites to transfer that lower income development potential to. The sites identified in the Housing Element are by-right sites, so development of these sites cannot be denied if all zoning standards are met. So while the City must assume development at the lower income levels to meet the State’s RHNA requirements, the City cannot ensure that development will occur that qualifies as lower income housing. If it is found that there are not adequate sites that can accommodate the remaining need, the City must rezone additional multi-family property within 180-days. This State required program means that staff will need to maintain a list of eligible properties and areas for rezoning that can be used to track and shift RHNA development opportunities. Based on past development patterns in the City, it is likely that the identified sites will not develop as HCD assumes unless developed by a non-profit entity or unless strategies are enacted to facilitate affordability by design. In concert with Programs 3.B and 3.C, the City could consider limiting unit sizes in the multi-family zone to encourage developments that are affordable by design and ensure development of high-density sites with affordable options that aren’t concentrated or deed restricted. Fortunately, the State’s recognition of accessory dwelling units in meeting the needs of lower-income households has given the City a sizable buffer within the adequate sites inventory for lower-income housing capacity. However, should existing sites not be developed in a way that meets the targeted need, the Council will be compelled to rezone eligible properties to high density multi-family use. Staff has already identified a number of properties along El Camino Real at the north end of the City that have rezoning potential and received a number of rezone requests from property owners. Further analysis of additional housing sites is expected as part of the Citywide General plan update scheduled to begin early next year.  Program 1.C: Mixed-Use Development “Continue to allow mixed residential and commercial development and promote second- and third-story residential development in the Downtown zoning districts. To increase project certainty and streamline development, the City will consider 62 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero identifying appropriate, mid-block locations, outside of the downtown, for future mixed-use/residential development (in commercial zoning districts) while considering appropriate jobs/housing balance and fiscal impacts. Considering market conditions and development costs, the City will provide, when possible, developer incentives such as expedited permit processing and flexible development standards for units that are affordable to lower-income households. The City will publicize these incentives on the City’s website (www.atascadero.org) to make them available in a timely fashion .” The City’s existing General Plan (Policy LOC 3.1) allows for multi-family development in the downtown without a use permit and on mid-block commercial sites with approval of a Conditional Use Permit. This program recognizes the need for the City to examine potential sites for additional residential development where higher intensity commercial development is not viable or where bringing a 24-hour presence to the corridor may be beneficial in the support of adjacent economic hubs. Appropriate sites may be those that are not conducive to commercial development due to location, size, or slope. Analysis of this strategy could include maintaining commercial zoning and the use of overlay zones to accomplish specific design requirements. This program asks that the City explore pre-designating commercial sites that may be appropriate for residential development ensuring greater certainty for potential developers while also ensuring that non-identified sites be targeted for commercial development. Under this program, the City is only compelled to explore this idea. As development at a density of at least 20 units per acre is assumed by the State to provide housing to lower-income households, this program also calls for developer incentives for mixed-use development. The City currently prioritizes and assists applicants with permit processing for lower-income projects and continues to explore other options to incentivize affordable housing.  Program 2.B: Inclusionary Housing Ordinance “Evaluate the City’s inclusionary housing policy and consider replacing the current inclusionary policy with an inclusionary housing ordinance. An inclusionary ordinance must be consistent with state density bonus regulations and address changing economic and regulatory considerations. The City will continue to monitor the impact of its inclusionary housing policy/ordinance on production of market rate housing in response to market conditions. If the City’s inclusionary housing approach presents an obstacle to the development of the City's fair share of regional housing needs, the City will revise the policy/ordinance accordingly.” This program asks that the City review the current inclusionary housing policy and consider replacing the policy with an inclusionary housing ordinance. As the State reduces the ability of Cities to review housing projects through a discretionary process (no use permit required), the City’s opportunities to meet affordable housing goals will be limited without an affordable housing ordinance. 63 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero  Program 2.F: Mixed-Use Standards “Adopt mixed-use development standards that facilitate high-quality development and that strike a balance between the community’s need for housing and the City’s need to preserve viable commercial land uses to help sustain the City’s ability to provide essential services. During the formulation of development standards, the City will assess the potential for residential density increases for mixed-use projects. The City will pursue the drafting of new mixed-use developments standards and Objective Design Standards (Program 3.B) to ensure that the City’s planning and design goals for mixed-use projects and multi-family housing are met.” This program speaks to the Housing Accountability Act (SB 167, AB 678, AB 1515 [2017] – GC Section 65589.5) which dictates that development projects within commercial zoning districts that include at least two-thirds of the project as residential floor space cannot be denied if all applicable zoning standards are met. However, meeting all zoning standards means that the project must be consistent with basic land use standards and cannot seek exceptions to adopted standards such as height, setback, parking etc. Adding objective design standards can would allow for greater design certainty on projects that State law exempts from discretionary review. The program noted above calls for the City to adopt mixed-use development standards that facilitate high-quality development and that strike a balance between the community’s need for housing and the City’s need to preserve viable commercial land uses. During the formulation of development standards, the City will assess the potential for residential density increases for mixed-use projects. The plan calls for the City to coordinate the drafting of new mixed-use development standards and Objective Design Standards (Program 3.B) to ensure that the City’s planning and design goals for mixed-use projects and multi-family housing are met. Developing standards will provide certainty to the development community and will streamline the design process. These standards can also require preservation of floor space for viable commercial land uses and design requirements to ensure enhanced activation of the El Camino Real and Morro Rd corridor.  Program 2.G: Specific Plans “Continue to require the use of specific plans or planned developments for residential projects of 100 or more single-family units to ensure that the distribution of land uses, infrastructure requirements, and implementation measures are consistent with the General Plan and the City’s development goals and needs.” This program clarifies that a Specific Plan or Planned Development zoning is needed for the creation of new single-family neighborhoods where there are 100 or more houses. Clarification in this program notes that it is not intended to speak to multi-family apartment projects where the zoning to allow for such density already exists. The program directs the City to continue to require the use of specific plans or planned developments for residential projects of 100 or more single-family units to ensure that the distribution of land uses, infrastructure requirements, and implementation measures are consistent with the Gen eral Plan and the City’s development goals and needs. 64 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero  Program 3.A: Development Process Streamlining “Continue streamlining the project review process by:  Reviewing, and if necessary, revising local review procedures to facilitate a streamlined review process  Accommodating SB 35 streamlining applications or inquiries by creating and making available to interested parties an informational packet that explains the SB 35 streamlining provisions in Atascadero and provides SB 35 eligibility information  Continuing to consolidate all actions relating to a specific project on the same Council or Commission agenda  Continuing to review minor project modifications through the Design Review Committee and more substantial changes through a Planning Commission process  Maintaining pre-approved stock development plans to streamline the plan check process for ADUs” Program 3.A. emphasizes the need for streamlined review. HCD encourages permit streamlining for projects that include certain levels of affordable housing. This includes maximum review timeframes for permits and limitations on triggers for discretionary review processes. Included in this program are stock plans for ADU’s. This activity is currently being pursued as a regional effort and may be funded through SLOCOG, SB2, or LEAP funding.  Program 3.B: Objective Design Standards “In compliance with SB 330, adopt objective design standards to ensure that the City can provide local guidance on design and clearly articulate objective design standards for by-right projects as allowed by state law. Adoption of objective design standards will facilitate high-quality residential development and compliance with state objectives. The objective design standards will ensure provision of adequate private open space, parking, and architectural features, consistent with state law. Part of the objective design standards creation process will include assessing how the standards can be used to encourage a variety of housing types and limit the size of residential units on multi-family zoned properties to encourage units that are affordable by design.” Program 3B calls for the City to adopt objective design standards (strictly focused on assessing compliance with criteria). This program overlaps with Program 2.F discussed above but focuses on a broader range of housing projects. Through this program, the City may adopt a set of objective design standards that dictate architectural quality, adequate private open space, adequate parking, appropriate landscaping, site design requirements, and related features to facilitate and encourage a variety of housing types. This could include encouraging smaller units on multi-family zoned properties to ensure units that are affordable by design while preserving quality outdoor space, adequate parking, and quality aesthetics..  Program 3.C: Multi-Family Housing Permitting “To reduce constraints to multi-family housing production, the City will review and revise the Conditional Use Permit (CUP) requirements for multi-family housing in 65 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero conjunction with adoption of objective design standards and to comply with the Housing Accountability Act. The Atascadero Zoning Regulations require a CUP for residential projects in the RMF zone over 11 units, excluding RMF-24 properties identified in the Housing Element sites inventory, which are allowed by right. Any revisions to the Zoning Regulations will not affect the by-right approval of multi- family projects in the RMF-24 zone on Housing Element sites, which are not subject to a CUP or a Specific Plan. Revisions are intended to facilitate the permitting process for multi-family housing and will be consistent with any by-right or streamlining requirements identified in state law. The City will pe riodically evaluate the approval process for housing projects to ensure compliance with the intent of the Housing Accountability Act.” To reduce constraints to multi-family housing production, and consistent with the intent of SB35 and the Housing Accountability Act, program 3.C requires processing a revision to the Conditional Use Permit (CUP) requirements for multi- family housing. The program calls for the City to set a modified threshold for projects requiring a CUP in conjunction with the adoption of objective design standards. The adoption of objective design standards can accommodate many of the same things that the conditional use permit process is designed for and provide greater certainty to developers. HCD did modify this program to ensure objectivity in standards and require a more definitive proactive approach to modifying CUP requirements.  Program 3.D: RMF Zone Height “Amend the Zoning Regulations to remove number of stories limit in the Residential Multi-Family (RMF) Zone and regulate based on height in feet, allowing for adequate emergency response and community character preservation. Amend Zoning Regulations definitions and exceptions to height limits, as appropriate, to facilitate three-story development in the RMF zone.” The current height limitation in the multi-family zone is a two part standard. The maximum height cannot exceed 35-feet nor can any building be more that 2 stories. The limit on the number of stories results in lower density projects and less flexibility on site design and planning. The proposed program calls for the City to amend the Zoning Regulations to remove “number of stories limit” in the Residential Multi-Family (RMF) Zone and to explore height requirements to remove any unnecessary barriers to multi-family development. The CUP process will remain available for developments desiring to exceed the established height limit.  Program 3.E: Small Lot Subdivisions “Consider adopting small lot subdivision standards that incorporate specific site and building development standards (such as parking, height, yard space, architecture) in exchange for flexible minimum lot sizes. Consider allowing small lot subdivisions without rezoning. Small lot subdivision standards can eliminate the need for multi-family planned developments that are currently subject to a rezoning process. Establishing a set of high-quality standards for each small lot subdivision, instead of minimum lot size, can save substantial staff time and applicant costs 66 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero and would allow for increased creativity with site design while increasing ownership opportunities for all income segments of the community (affordable by design).” Program 3.E calls for the City to consider adoption of flexible minimum lot sizes for single family residential neighborhoods that incorporate specific site and building development standards (such as parking, height, yard space, architecture , building siting, unit size). This would alleviate many projects from going through a rezoning process if the development met City required standards. At this time, the minimum lot size for multi- family development is one half acre unless a planned development overlay zone is adopted . Establishing small lot standards will prescribe a set of quality standards for each subdivision, will save substantial staff time and applicant costs while providing certainty for both applicants and the City. This could allow for increased creativity with site design while increa sing ownership opportunities for all income segments of the community (affordable by design).  Program 3.G: Emergency Shelter (ES) Overlay Zone Review the Emergency Shelter (ES) Overlay Zone for continued compliance with State law; evaluate the need and expand the zone, as appropriate, to other appropriate properties, subject to the locational and operational criteria outlined in the Zoning Regulations. This program ensures that the city is compliant with State law and meeting the need for overnight sheltering and other services. The State modified language to ensure that the City takes a proactive response to any future need that arises.  Program 3.H: Special Needs Housing Laws “Review the Zoning Regulations and if necessary, make changes to ensure compliance with the Supportive Housing Streamlining Act (AB 2162) and AB 101 (Low-Barrier Navigation Centers). AB 2162 requires supportive housing to be considered a use by right in zones where multi-family and mixed uses are permitted, including nonresidential zones permitting multi-family uses, if the proposed housing development meets specified criteria. AB 101 requires that Low - Barrier Navigation Centers (LBNC) be a by-right use in areas zoned for mixed-use and nonresidential zones permitting multi-family uses. LBNC provide temporary room and board with limited barriers to entry while case managers work to connect homeless individuals and families to income, public benefits, health services, permanent housing, or other shelter.” Under program 3.H, the City is tasked with analyzing current zoning regulations to ensure compliance with State law for transitional housing, emergency shelters, and Low Barrier Navigation Centers. Amendments to the zoning ordinance will be brought forward as needed to remain in compliance with these laws.  Added Program 3.O: Farmworker Housing in RS Zone “Amend the Zoning Regulations for the RS Zone to comply with California Health and Safety Code Section 17021.6, which generally requires that employee 67 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero housing consisting of no more than 36 beds in group quarters (or 12 units or less designed for use by a single household) be treated as an agricultural use.” The Employee Housing Act requires “by-right” housing for farmworker and employee housing associated with agricultural activities. In essence, the state requires cities to allow by-right farmworker housing in any zone that allows agricultural uses. In Atascadero, small scale and hobby agriculture such as the keeping of livestock, 4H projects, and hobby vineyards and orchards are common on larger residential parcels. The zoning ordinance is written to also allow for larger agricultural activities with a CUP. The intent of Atascadero zoning, is for such uses to be accessory to a residential use to be compatible with the surrounding neighborhood. These residential properties were never intended to serve as commercial agricultural properties and cannot support agricultural employees. The Employee Housing Act limits a city’s review of agricultural related housing wherever agricultural activities are permitted. Because the RS zone currently allows for agricultural uses, program 3.O. calls for amendments to the code to limit larger- scale agricultural activities within residential zones and to clarify incidental hobby or personal use activities to comply with State law. This amendment will help exclude the City from mandated Ag housing wherever agricultural uses may occur.  Added Program 3.N: Definition of Immediate Family “Amend the Zoning Regulations to remove the definition of “immediate family” from the Zoning Regulations and any standards related to that definition, including Section 9-6.107(a)(1)(i) and 9-6.107(a)(3), which requires immediate family to occupy accessory dwelling units in the A zone.” During State HCD review, it was discovered that the Municipal Code had an outdated definition for “immediate family”. Per State law, cities cannot discriminate or limit access to housing based on restrictive definitions of family which would include blood relation, number of persons, etc. Program 3.N. calls for amending the zoning ordinance to delete the definition of “immediate family” and all related regulations. Summary of Quantified Objectives The programs listed in the Housing Plan (Chapter B) provide quantified objectives towards meeting the State and City hosing goals. Programs that relate to supporting the construction of housing units to meet the City’s RHNA include measurable objectives used during the State’s annual reporting process to ensure that the City is on track in meeting identified goals. Table B.1 summarizes the City’s quantified objectives for the 2020-2028 planning period by income group.  The Construction Objective represents the City’s remaining (after crediting the units with approved or issued permits) 2018-2028 RHNA of 266 units, as well as objectives for the density bonus and inclusionary housing programs.  The Rehabilitation Objective represents objectives in the Housing Rehabilitation and Preservation program.  The Conservation objective refers to maintenance of the current level of assistance through the Housing Choice (formerly Section 8) Voucher program from the County of San Luis Obispo Housing Authority. 68 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero Table B.1: Quantified Objectives Objectives Income Levels Total Extremely/ Very Low Low Moderate Above Moderate Construction Objective * 171 105 15 50 341 Rehabilitation Objective 5 5 10 -- 20 Conservation/Preservation Objective 230 -- -- 230 Total 291 225 25 50 591 *Note: The City of Atascadero is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build these units. This includes the creation, adoption, and implementation of General Plan policies, zoning standards, and/or incentives to encourage the construction of various types of units. Regional Chapter The County and all seven Cities are working collaboratively to develop the region’s first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address housing and resiliency issues. A key component of the Regional Plan is the integration of efforts to address critical housing and related infrastructure needs. As part of the Housing Element update process, representatives of the County, seven Cities, and San Luis Obispo Council of Governments (SLOCOG) developed a regional Chapter to be integrated into each jurisdiction’s Housing Elements, aimed at showcasing the ongoing commitment of each agency to this collaborative effort. The regional Chapter presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure. The regional effort is an ongoing and iterative process. Identifying regional funding opportunities will be a collaborative process with the input of all 8 jurisdictions and is subject to changes based on funding opportunities and identified needs. The regional partners are committed to improving the jobs/housing balance throughout the regional and identifying infrastructure projects and housing opportunities that support these integrated efforts. This effort is guided by the San Luis Obispo Countywide Regional Compact (Regional Compact). The Regional Compact, adopted by each jurisdiction in early 2020, outl ines six shared regional goals to guide collaborative resolution of underlying housing and infrastructure needs: Goal 1. Strengthen Community Quality of Life – We believe that our Region’s quality of life depends on four cornerstones to foster a stable and healthy economy for all: resilient infrastructure and resources, adequate housing supply, business opportunities, and educational pathways. 69 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero Goal 2. Share Regional Prosperity – We believe that our Region should share the impacts and benefits of achieving enduring quality of life among all people, sectors and interests. Goal 3. Create Balanced Communities – We believe that our Region should encourage new development that helps to improve the balance of jobs and housing throughout the Region, providing more opportunities to residents to live and work in the same community. Goal 4. Value Agriculture & Natural Resources – We believe that our Region’s unique agricultural resources, open space, and natural environments play a vital role in sustaining healthy local communities and a healthy economy, and therefore should be purposefully protected. Goal 5. Support Equitable Opportunities – We believe that our Region should support policies, actions, and incentives that increase housing development of all types, available to people at all income levels. Goal 6. Foster Accelerated Housing Production – We believe that our Region must achieve efficient planning and production of housing and focus on strategies that produce the greatest impact. The regional chapter includes an initial list of aspirational regional policies that further the Regional Compact vision. The list of regional goals offers ways that the County, cities, SLOCOG, and other partners can consider moving forward, together. Many of the regional goals relate to inter-agency partnerships and a regional approach to infrastructure funding. Participation in the regional effort and incorporation of the regional chapter into the City’s Housing Element not only solidifies our commitment to work together as a region but may also further expand grant opportunities. The chapter includes the following eight regional policies: R-1: Promote awareness and support of regional efforts that further housing and infrastructure resiliency by utilizing community engagement, and consistent and transparent communication. R-2: Encourage an adequate housing supply and resilient infrastructure, services, and resources to improve the balance of jobs and housing throughout the Region. R-3: Develop inter-agency partnerships as appropriate to implement goals and policies related to housing and infrastructure. R-4: Coordinate State, Federal, and other funding opportunities for housing and infrastructure development throughout the Region. R-5: Encourage developers to sell newly constructed housing units to individuals residing or employed within the area of the development (a city or the County) first before selling to individuals from outside the County, to promote local preference. 70 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero R-6: Encourage rental units be prioritized for long term residents rather than short term users or vacation rentals. R-7: Support housing development that is located within existing communities and strategically planned areas. R-8: Encourage regional collaboration on a menu of housing types, models, and efforts to support streamlined approvals for such developments (i.e. Accessory Dwelling Units, etc.). Part of this effort also includes a regional toolkit of programs and activities that can be adopted to support these goals. The City’s draft Housing Element already identifies a number of policies and programs that achieve this regional vision. The City will continue to participate in collaborative regional efforts to address jobs/housing balance, best practices for housing development and support, and building and prioritizing resilient infrastructure to serve the region into the future. Housing Constraints Chapter E analyzes the City’s current zoning regulations , building codes, code enforcement, infrastructure, fees, and permit processes (governmental constraints) to determine any constraints to housing development or preservation. In addition, per State law, the chapter also analyzes non-governmental constraints such as land and housing costs, environmental constraints, and availability of financing. If constraints are identified, a program is usually included in the Housing Plan to further analyze and address the potential constraint. Governmental Constraints: The chapter identifies the following governmental hous ing constraints within the City’s regulatory framework:  2 story maximum for multi-family development (Program 3.D proposes to eliminate this restriction)  Low limit (12 units) trigger for discretionary entitlement for multi -family development (Program 3.C has been added to further analyze)  Emergency Shelter Overlay Zoning district and Supportive housing regulations need to address new State laws (Programs 3.H and 3.I have been included to ensure consistency)  The City lacks quantifiable objective design standards to facilitate housing development subject to SB35 and the Housing Accountability Act and to provide clarity for developers while achieving high-quality design. (Program 3.B calls for the adoption of objective design standards) The consultant’s analysis also found that the City does not impose greater site improvement or building code regulations on housing projects than is otherwise required 71 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero by the State and/or surrounding communities. In addition, permit processing times are in line with or more expeditious that surrounding jurisdictions and comply with State streamlining requirements. Non-Governmental Constraints: Identified non-governmental constrains include land and construction costs, availability of financing, and environmental constraints. While the City cannot control these factors, programs are included in the plan to support applicants and developers through outreach efforts. Past Program Accomplishments The draft Housing Element includes a chapter outlining the City’s accomplishments during the previous planning period (2014-2019). This evaluation provides valuable information on the extent to which programs have achieved stated objectives and whether these programs continue to be relevant to addressing current and future housing needs in Atascadero. The evaluation provides the basis for recommended modifications to policies and programs and the establishment of new housing objectives. The below table summarizes the quantified objectives contained for the 2014-2019 Housing Element and compares the City’s progress toward fulfilling these objectives. The City recognizes that it had limited resources to address the varied affordable housing needs in the community. As part of the 2014-2019 Housing Element, the City established a set of quantified objectives for housing construction, rehabilitation, and preservation. The City made significant progress towards the construction and conservation goal. The City’s rehabilitation goals, however, fell short due to the loss of its primary rehabilitation funding tool when the RDA was dissolved. Table G.2: Summary of 2014-2019 Quantified Objectives and Progress Objectives Income Levels Total Very Low Low Moderate Above Moderate Construction Objectives Goal(a) 98 62 69 164 393 Progress 48 (49%) 28(45%) 178(258%) 308(188%) 562 Rehabilitation Objectives Goal(b) 7 13 55 55 130 Progress -- -- -- -- 0 Conservation Objectives Goal(c) 2 3 15 5 25 Progress 71 (1,420%) -- -- 71 72 ITEM 4 | 10/20/20 6th Cycle Housing Element Update CPP19-0067 / City of Atascadero The City accomplished these objectives by implementing numerous programs since 2014. In addition to on-going efforts, the most notable projects and implemented programs include:  The La Plaza project providing 42 residential units downtown, 38 of which are likely to be considered as affordable by design based on unit size.  Over 80 units approved through the PD overlay process  60 units issued in accordance with the state density bonus law.  Over 25 permits issued for ADUs  Worked with People’s Self-Help Housing to produce 34 affordable housing units and worked with the Corporation for a Better Housing to produce 60 very low- and low-income units.  The City updated the zoning ordinance in 2017 to include updated definitions and requirements for farmworker housing in accordance with State law. A full list of objectives and accomplishments can be found in draft Chapter G. Next Steps This hearing begins the adoption process for the City’s 6th cycle Housing Element. Final adoption of the document and certification by HCD needs to take place by December 31 to remain in compliance with State laws. The City is on track to meet this deadline with City Council action scheduled for early November. Once the city Council has adopted the element, the final version will be sent to the State for certification. 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 providin g opportunities for the construction of housing that meets the needs of current and future residents. The draft Housing Element was reviewed by the State and changes were made to comply with State requirements and ensure certification. This Housing Element will cover the planning period from 2020-2028. Per State law, adoption and certification must occur by December 31, 2020. Council review and adoption is scheduled for November. ATTACHMENTS: 1. Draft Resolution a. 6th cycle Housing Element 2. HCD approval to proceed letter 3. Public Comment Letter – Max Zappas 4. Public Comment Letter – First 5 San Luis Obispo County 73 Attachment 1 6th cycle Housing Element DRAFT PC RESOLUTION 6TH CYCLE HOUSING ELEMENT GENERAL PLAN AMENDMENT A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ATASCADERO, CALIFORNIA RECOMMENDING THAT THE CITY COUNCIL ADOPT THE 2020-2028 HOUSING ELEMENT CPP19-0067 (City of Atascadero) WHEREAS, the State requires that City’s Housing Element be updated at regular intervals to analyze housing needs and establish goals, policies, programs, and quantified objectives to meet the identified needs; and, WHEREAS, the City of Atascadero is listed on the 2020 6th cycle update schedule as determined by the State of California; and, WHEREAS, the proposed amendment is in the public interest; and, WHEREAS, the proposed amendment is in conformance with the other elements of the adopted General Plan Goals, Policies, and Programs and the overall intent of the General Plan; and WHEREAS, proposed amendment is compatible with existing development, neighborhoods and the environment; and, WHEREAS, the proposed 2020 Housing Element is developed so the City can achieve the housing goals of the State as stated in Section 65580 of the California Government Code: a. The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order; and b. The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels. The provision of housing affordable to low and moderate-income households requires the cooperation of all levels of government; and c. Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community; and d. Each local government also has the responsibility to consider economic, environmental and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the state in addressing regional housing needs. 74 Attachment 1 6th cycle Housing Element WHEREAS, the laws and regulations relating to the preparation and public notice of environmental documents, as set forth in the State and local guidelines for implementation of the California Environmental Quality Act (CEQA) have been adhered to; and, WHEREAS, a timely and properly noticed Public Hearing upon the subject General Plan Amendment application was held by the Planning Commission of the City of Atascadero at which hearing evidence, oral and documentary, was admitted on behalf of said General Plan amendment; and, WHEREAS, the Planning Commission of the City of Atascadero, at a duly noticed Public Hearing held on October 20, 2020 studied and considered the 2020-2028 6th cycle Housing Element (CPP19-0067). NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Atascadero makes the following determinations and recommendations with respect to the proposed action: SECTION 1. Recitals: The above recitals are true and correct. SECTION 2. Public Hearing. The Planning Commission of the City of Atascadero, in a regular session assembled on October 20, 2020, resolved to recommend that the City Council adopt the proposed 2020-2028 6th cycle Housing Element on file in the Community Development Department and incorporated herein by this reference. SECTION 3. CEQA. The proposed Housing Element adoption is exempt from the California Environmental Quality Act (CEQA), Public resources Code Section 21000 et seq., because it can be seen with certainty that there is no possibility that the enactment of this Ordinance would have a significant effect on the environment (Pub. Resources Code § 21065; CEQA Guidelines §§ 15378(b)(4), 15061(b)(3). SECTION 4. Recommendation of Approval. The Planning Commission of the City of Atascadero, in a regular session assembled on October 27, 2020, resolved to recommend that the City Council adopt the 2020-2028 6th cycle Housing Element on file in the Community Development Department and incorporated herein by reference. 75 Attachment 1 6th cycle Housing Element BE IT FURTHER RESOLVED that a copy of this Resolution be delivered forthwith by the Planning Commission Secretary to the City Council of the City of Atascadero. On motion by Commissioner _________________, and seconded by Commissioner _______________ the foregoing resolution is hereby adopted in its entirety by the following roll call vote: AYES: ( ) NOES: ( ) ABSENT: ( ) ABSTAIN: ( ) ADOPTED: October 20, 2020 CITY OF ATASCADERO, CA ______________________________ Mark Dariz Planning Commission Chairperson Attest: ______________________________ Phil Dunsmore Planning Commission Secretary 76 City of Atascadero 2021-2028 Housing Element FINAL DR AF T | OCTOBER 2020 77 This page intentionally left blank. 78 City of Atascadero 2021-2028 Housing Element City of Atascadero 6500 Palma Avenue Atascadero, CA 93422 Public Hearing Draft October 2020 79 This page intentionally left blank. 80 Table of Contents Page A. Introduction A-1 A.1 Overview A-1 A.2 Scope and Content of the Housing Element A-1 A.3 Relationship to Other General Plan Elements A-2 A.4 Public Participation A-2 B. Housing Plan B-1 B.1 Goals and Policies B-1 B.2 Implementing Programs B-3 B.3 Summary of Quantified Objectives B-15 C. Regional Vision for Housing C-1 C.1 Overview C-1 C.2 Alignment with Regional Compact C-1 C.3 Policies C-2 C.4 Moving Forward C-3 D. Needs Assessment D-1 D.1 Population, Employment and Household Trends D-1 D.2 Special Needs Groups D-5 D.3 Housing Characteristics D-12 D.4 Housing Cost and Affordability D-14 D.5 Housing Problems D-17 D.6 Housing at Risk of Converting from Affordable to Market Rate Housing D-19 E. Constraints on Housing Production E-1 E.1 Governmental Constraints E-1 E.2 Nongovernmental Constraints E-24 F. Housing Resources F-1 F.1 Regional Housing Needs Allocation (RHNA) F-1 F.2 Progress Towards the RHNA F-2 F.3 Residential Sites Inventory F-4 F.4 Site Infrastructure and Services F-10 F.5 Environmental Constraints F-12 F.6 Financial Resources F-12 F.7 Administrative Resources F-13 G. 2014-2019 Housing Element Program Accomplishments G-1 Appendix A: Public Outreach Contact List X-1 81 This page intentionally left blank. 82 Atascadero Housing Element A: Introduction | 1 A. Introduction 1. Overview This Housing Element provides the City of Atascadero with a coordinated and comprehensive strategy for promoting the production of safe, decent, and affordable housing for all community residents. The Housing Element is a mandatory General Plan element. It identifies ways in which the housing needs of existing and future residents can be met. State law requires that all cities adopt a Housing Element and describes in detail the necessary contents of the Housing Element. California planning law provides more detailed requirements for the Housing Element than for any other General Plan element. This Housing Element responds to those requirements and responds specifically to conditions and policy directives unique to Atascadero. The California Legislature has identified the attainment of a decent home and suitable living environment for every Californian as the state’s main housing goal. Recognizing the important part that local planning programs play in pursuit of this goal, the Legislature has mandated that all cities and counties prepare a Housing Element as part of their comprehensive General Plans. Section 65581 of the California Government Code reflects the legislative intent for mandating that each city and county prepare a Housing Element: 1. To ensure that counties and cities recognize their responsibilities in contributing to the attainment of the State housing goal 2. To ensure that counties and cities will prepare and implement housing elements which, along with federal and state programs, will move toward attainment of the state housing goals 3. To recognize that each locality is best capable of determining what efforts are required by it to contribute to the attainment of the state housing goal, provided such a determination is compatible with the state housing goal and regional housing needs 4. To ensure that each local government cooperates with other local governments to address regional housing needs 2. Scope and Content of the Housing Element The Housing Element covers the planning period of December 31, 2020 through December 31, 2028 and identifies strategies and programs to: 1) encourage the development of a variety of housing opportunities; 2) provide housing opportunities for persons of lower and moderate incomes; 3) preserve the quality of the existing housing stock in Atascadero; 4) minimize governmental constraints; and 5) promote equal housing opportunities for all residents. Toward these ends, the Housing Element consists of: • An introduction of the scope and purpose of the Housing Element • A Housing Plan to address the identified housing needs, including housing goals, policies, and programs • A Regional Infrastructure and Housing Strategic Action Plan, which was developed collaboratively with and is adopted by the County of San Luis Obispo and all seven cities within the county 83 Atascadero Housing Element 2 | A: Introduction • An analysis of the City’s demographic and housing characteristics and trends • A review of potential market, governmental, and environmental constraints to meeting the City’s identified housing needs • An evaluation of land, administrative, and financial resources available to address the housing goals • A review of past accomplishments under the previous Housing Element The Housing Element is also closely related to the Zoning Regulations and assesses multiple ordinances and Zoning Regulations sections that pertain to housing for compliance with State law. As new ordinances are considered, the City will review the Housing Element to ensure compliance with housing policies. 3. Relationship to Other General Plan Elements State law requires that the General Plan and all individual elements collectively form an "integrated, internally consistent, and compatible statement of policies." The goals, policies, and programs of this Housing Element are consistent with the goals, policies, and programs contained in other elements of the Atascadero General Plan. Development policies contained in the Land Use, Open Space & Conservation Element—which establishes the location, type, density, and distribution of local land uses, including housing—most directly relate to the Housing Element. The policies and priorities of the Housing and Land Use, Open Space & Conservation Element have been carefully balanced to maintain internal consistency. When any element of the General Plan is amended, the City will review the Housing Element and if necessary, prepare an amendment to ensure continued consistency among elements. State law requires that upon revisions to the Housing Element, the Safety and Conservation Elements include an analysis and policies regarding flood hazard and management information. 4. Public Participation The Housing Element must reflect the values and preferences of the Atascadero community; therefore, public participation plays a role in the development of this Element. Section 65583(c)(6)(B) of the Government Code states: “The local government shall make diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.” This process not only includes residents of the community, but also coordinates participation among local agencies and housing groups, community organizations, and housing sponsors. Community Workshops and Study Sessions On January 28, 2020, the City conducted a workshop to gather input from key local stakeholders, housing advocates and residents. The meeting included a presentation about the intent of the Housing Element update, followed by a facilitated discussion regarding housing issues, opportunities to meet local housing needs, and creative approaches to address the City’s constraints to housing production. Participants included local developers, service providers, advocates, and interested residents. Outreach for the workshop and study session were conducted using social media campaigns and local media outlets. Information was also posted on the City website. The workshop was open to the public and interested developers, housing advocates, and residents were encouraged to attend. The City also posted a survey and comment page on the website to solicit comments and questions from those who could not 84 Atascadero Housing Element A: Introduction | 3 attend or who needed additional time and information to comment. Email follow-up was conducted after the events to all who provided contact information to ensure that the City captured all input and answered any questions. The list of agencies, organizations, and community members invited to the study session are listed in Appendix A. Public comments received at the workshop and through follow-up outreach encouraged the City to see housing as an opportunity, while understanding the importance of considering the jobs to housing balance. Participants recommended ways to streamline the housing development approval process (including a clear roadmap with certainty), reduction in various permit fees, creative solutions to reduce the costs of development, and a focus on making Atascadero attractive for the building community. 85 Atascadero Housing Element 4 | A: Introduction Community Workshop | January 28, 2020 Following the workshop, the Planning Commission and City Council held a joint study session to review Housing Element requirements, report on input received at the workshop earlier in the day, and discuss issues, locations where new housing should be encouraged, creative solutions to constraints, and how to respond to local needs of Atascadero. Public comments included: • Streamline the approval process with reduced use of conditional use permits and removal of minimum lot size requirements. • Provide a mechanism, such as in-lieu fee payment, to substitute for parking requirements. • Find ways to incentivize affordable housing rather than require it. • Upzone around downtown. • Consider an overlay to allow residential along El Camino Real. • Consider the increasing senior population and develop creative solutions such as extra bedrooms, accessory dwelling units, and tiny homes. • Reduce fees, especially for the housing types that are affordable by design. • Consider changes to land use as part of a General Plan update and consider property owner requests to rezone. On April 14, 2020, the City Council conducted a study session to discuss potential sites to meet the regional housing needs allocation (RHNA) and policies to consider in the Housing Element. Due to the statewide Shelter at Home order associated with the COVID-19 pandemic, this meeting was not physically open to the public but was accessible via teleconferencing and viewing on the local television station and YouTube streaming. Press releases/notification of the study session and draft Housing Element were sent to local media outlets as well as posted on the City website and social media accounts. In addition, outreach to interested members of the resident, housing advocacy, and development community was conducted via email. Public comments were received via teleconference and included requests for rezoning, discussion of junior accessory dwelling units, and support for horizontal mixed use, removal of minimum lot size requirements, and increasing housing in the community. On June 23, 2020, the City Council conducted a workshop prior to submitting the draft Housing Element to the State Department of Housing and Community Development (HCD) to discuss the Draft Housing Element. Because the statewide Shelter at Home order was still in place, this meeting was not physically open to the public; the public participated via teleconferencing and viewing on the local television station and YouTube. The draft Housing Element was made available on the City’s website for review and comment. Notification of the workshop/hearing was published in the San Luis Obispo Tribune newspaper. To ensure that the housing concerns of low- and moderate-income and special needs residents were addressed, the City notified agencies and organizations that serve these communities in Atascadero and surrounding areas. Local stakeholders such as developers, service providers, neighboring jurisdictions, and housing advocates were invited to review and comment on the 2020-2028 Housing Element (the link to the draft was widely distributed) and to attend the study session. Additional outreach was also made to community members that attended prior workshops and those who commented through the website. The list of agencies and organizations invited to the study session (and notified of the availability of the draft Housing Element for comment) are listed in Appendix A. No public comments were submitted at the workshop. City Council members discussed the details of the draft Housing Element, asked questions, and requested revisions. Typographical errors were corrected, and edits were made to clarify unclear language. Additional discussion was added, as well as a new policy to encourage creation of “missing middle” housing types. 86 Atascadero Housing Element A: Introduction | 5 On June 25, 2020, the regional consortium (County, Cities, and San Luis Obispo Council of Governments) held a virtual workshop to review the Regional Chapter (Chapter 3), which is included in all Housing Elements in the county. Housing advocates and stakeholders were invited to participate and comment on the regional chapter and a brief summary of Housing Element highlights for each jurisdiction. Comments from stakeholders included a desire for more deed-restricted affordable housing and standardization of processes and standards for jurisdictions in the region. In July through September, the San Luis Obispo Chamber of Commerce hosted a housing summit that invited the community to hear from housing experts on the opportunities and challenges with housing production. Part 3 of the series was held on September 10, 2020 and focused on City and County housing policies and Housing Element progress. The City of Atascadero participated in showcasing draft housing element policies and programs that support housing production and increase opportunities for housing throughout the City. The City’s website was shared with the attendees and all were encouraged to comment and participate through the seminar, through the City’s website, or via phone or email. Further opportunity for public participation will be provided at Planning Commission and City Council adoption hearings expected to occur late October and November 2020. 87 Atascadero Housing Element 6 | A: Introduction Community Workshop Comments| January 28, 2020 88 Atascadero Housing Element B: Plan| 1 B. Housing Plan This Housing Plan’s goals, policies, and programs have been established to address housing issues in Atascadero and to meet state law housing requirements. The City’s overarching objective is to ensure that decent, safe housing is available to all current and future residents at a cost that is within the reach of the diverse economic segments in Atascadero. These Goals, Policies, and Programs are informed by the housing needs assessment (Section D) , housing constrains analysis (Section E), Housing Resources analysis (Section F), and the review or program accomplishments for the previous (2014-2019) Housing Element (Section G). The City of Atascadero is working collaboratively with San Luis Obispo County and cities to develop the region’s first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address these issues. As part of the 6th Cycle Housing Element update process, representatives of the County, seven Cities and San Luis Obispo Council of Governments (SLOCOG) developed a regional vision and policies to showcase the ongoing commitment of each agency to this collaborative effort. The regional vision and policies in included in Section C. To make adequate provision for the housing needs of people all income levels, state law (Government Code 65583[c]) requires that the City, at a minimum, identify programs that do all of the following:  Identify adequate sites, with appropriate zoning and development standards and services to accommodate the locality’s share of the regional housing needs for each income level.  Assist in the development of adequate housing to meet the needs of extremely low-, very low-, low-, and moderate-income households.  Address and, where possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for people at all income levels, as well as housing for people with disabilities.  Conserve and improve the condition of the existing affordable housing stock and preserve assisted housing developments at risk of conversion to market-rate housing.  Promote equal housing opportunities for all people, regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. Programs generally include a statement of specific City action(s) necessary to implement a policy or goal and identify the City department or other agency responsible for implementation, the quantified objectives (where applicable), and a timeframe for completion. A summary of quantified objectives is included following the program descriptions. 1. Goals and Policies Goal HOS 1: Provide adequate sites for housing development to accommodate a range of housing by type, size, location, price, and tenure. Policy 1.1: Implement land use policies and standards that allow for a range of residential densities and products that will provide households of all types and income levels the opportunity to find suitable ownership or rental housing. Policy 1.2: Facilitate the development of accessory dwelling units on single-family parcels where adequate services can be provided. 89 Atascadero Housing Element 2 | B: Plan Policy 1.3: Encourage the production of housing, with particular emphasis on housing affordable to persons with disabilities, elderly, large families, female-headed households with children, and homeless individuals. Policy 1.4: Encourage the development of residential units that are accessible to persons with disabilities or are adaptable for conversion to residential use by persons with disabilities. Policy 1.5: Encourage the creation of “missing middle” housing, such as duplexes, twin- homes, modular housing, and other similar types of housing that are affordable by design and available for rent and for sale. Goal HOS 2: Promote diverse and high-quality housing opportunities to meet the needs of all economic segments of the community. Policy 2.1: Facilitate housing development that is affordable to lower income households by providing technical assistance, regulatory incentives and concessions, and financial resources as funding permits. Policy 2.2: Continue to utilize federal and state subsidies, as well as City resources, to the fullest extent possible, to assist in meeting the housing needs of lower-income residents, including extremely low-income residents. Policy 2.3: Encourage new housing, including mixed-use projects in appropriate commercial land use areas to assist in meeting the needs of all household types in the City. Policy 2.4: Support regional efforts to address homelessness. Goal HOS 3: Reduce or remove governmental and non-governmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible. Policy 3.1: Review projects in as timely a manner as possible, while maintaining adequate public involvement and fulfilling the appropriate requirements of state and local laws. Policy 3.2: Monitor state and federal housing-related legislation, and update City plans, ordinances, and processes as appropriate to remove or reduce governmental constraints. Policy 3.3: Encourage interplay between lending institutions, the real estate and development community, and the City to better understand and address non- governmental constraints and facilitate production of affordable housing. Policy 3.4: Help lower development costs where feasible, especially for low- and moderate- income housing units. Policy 3.5: Encourage energy conservation and sustainable building measures in new and existing homes through adherence to the California Green Building Code. Goal HOS 4: Protect and conserve the existing housing stock and neighborhoods, including the City’s affordable housing stock. Policy 4.1: Encourage conservation and preservation of neighborhoods and sound housing. Policy 4.2: Promote and preserve affordable housing. 90 Atascadero Housing Element B: Plan| 3 Policy 4.3 Encourage conservation and preservation of houses that have historical and architectural significance. Policy 4.4: Leverage state and federal loans and grants to assist in preserving existing housing and rehabilitating unsound housing structures. Goal HOS 5: Affirmatively further equal and fair access to sound, affordable housing for all persons. Policy 5.1: Affirmatively further fair housing related to the sale, rental, and financing of housing to avoid discrimination based on race, religion, age, sex, marital status, ancestry, national origin, color, familial status, or disability, or any other arbitrary factor. Policy 5.2: Assist in the enforcement of state and federal fair housing and anti-discrimination laws by assisting organizations that receive and investigate fair housing allegations and refer possible violations of fair housing laws to enforcing agencies. Policy 5.3: Promote and affirmatively further fair housing opportunities and promote housing options throughout the community for all persons. Policy 5.4: Ensure that persons with disabilities have adequate access to housing. 2. Implementing Programs The programs below identify the actions that will be taken to make sites available during the planning period with appropriate land use and development standards and with services/facilities to accommodate the City’s share of regional housing need for each income level. The programs also address identified housing issues in Atascadero and approaches to meet state law housing requirements. Program numbers reference corresponding goals listed above. Program 1.A: Adequate Sites The City of Atascadero has a remaining RHNA of 266 units for the 2018-2028 RHNA planning period after credits for permitted or approved units are taken into consideration. Overall, the City can adequately accommodate the City’s current RHNA under existing General Plan and Zoning Regulations standards. The residential sites inventory to address the current RHNA consists of 11 mostly vacant sites with capacity to yield 497 new units. The City will maintain an inventory of available sites for residential development and provide it to prospective residential developers upon request, and the City will continue to track the affordability of new housing projects and progress toward meeting the City’s RHNA. The City will also continue allowing housing development on RMF-24 properties identified in the Housing Element Sites Inventory as a by-right use, not subject to a conditional use permit, specific plan, or discretionary action. By right includes but is not limited to housing developments in which at least 20 percent of the units are affordable to lower income households. The City of Atascadero is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build these units. This includes the creation, adoption, and implementation of General Plan policies, zoning and development standards, and/or incentives to encourage the construction of various types of units. Funding Source: General Fund (staff time) Responsible Party: Community Development Department 91 Atascadero Housing Element 4 | B: Plan Timeframe: Ongoing; annual assessment of status of housing sites inventory as part of the annual reporting process to the State Quantified Objective: 266 units Program 1.B: No Net Loss Government Code Section 65863 stipulates that a jurisdiction must ensure that its Housing Element inventory can accommodate its share of the RHNA by income level throughout the planning period. If a jurisdiction approves a housing project at a lower density or with fewer units by income category than identified in the Housing Element, it must quantify at the time of approval the remaining unmet housing need at each income level and determine whether there is sufficient capacity to meet that need. If not, the city or county must “identify and make available” additional adequate sites to accommodate the jurisdiction’s share of housing need by income level within 180 days of approving the reduced-density project. The City will evaluate residential development proposals for consistency with goals and policies of the General Plan and the 2020-2028 Housing Element sites inventory and make written findings that the density reduction is consistent with the General Plan and that the remaining sites identified in the Housing Element are adequate to accommodate the RHNA by income level. If a proposed reduction of residential density will result in the residential sites inventory failing to accommodate the RHNA by income level, the City will identify and make available additional adequate sites to accommodate the its share of housing need by income level within 180 days of approving the reduced density project. Funding Source: General Fund (staff time) and application fees Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing; as part of the entitlement review process, evaluate new projects for consistency with General Plan objectives as they relate to housing and RHNA obligations Program 1.C: Mixed-Use Development Continue to allow mixed residential and commercial development and promote second- and third-story residential development in the Downtown zoning districts. To increase project certainty and streamline development, the City will consider identifying appropriate, mid-block locations, outside of downtown, for future mixed-use/residential development (in commercial zoning districts) while considering appropriate jobs/housing balance and fiscal impacts. Considering market conditions and development costs, the City will provide, when possible, developer incentives such as expedited permit processing and flexible development standards for units that are affordable to lower-income households. The City will publicize these incentives on the City’s website (www.atascadero.org) to make them available in a timely fashion. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing; identification of mixed-use opportunity areas as part of a comprehensive General Plan update (to be initiated in 2021) Quantified Objective: 5 Mixed Use Projects Program 1.D: Accessory Dwelling Units Promote the development of accessory dwelling units (ADUs) by adopting an ADU ordinance addressing the latest provisions in State law, including permit streamlining processes. Provide pre-approved ADU 92 Atascadero Housing Element B: Plan| 5 plans as a tool for encouraging development of ADUs and lowering plan review costs for applicants and the City. Promote development of ADUs by providing written information at the City’s planning counter and on the City’s website. Funding Source: General Fund (staff time); grants Responsible Party: Community Development Department, Public Works Department, Planning Commission, City Council, San Luis Obispo Council of Governments Timeframe: Within two years of Housing Element adoption Quantified Objective: 225 Units (this Objective is a subset of and not in addition to the Quantified Objective for Program 1.A: Adequate Sites) Program 1.E: Special Needs Housing Provide housing opportunities to meet the special housing needs of special needs residents (including the elderly, disabled, developmentally disabled, large families, the homeless, farmworkers, and extremely low-income households) by giving priority to development projects that include a component for special needs groups in addition to other lower-income households. Funding Source: General Fund (staff time) and other sources, as available Responsible Party: Community Development Department Timeframe: Ongoing Quantified Objective: 15 units (this Objective is a subset of and not in addition to the Quantified Objective for Program 1.A: Adequate Sites) Program 1.F: Housing for Persons with Disabilities Assist in meeting the housing needs for persons with disabilities, including persons with developmental disabilities, by implementing the following actions:  Assist developers who seek state and federal monies in support of housing construction and rehabilitation targeted for persons with disabilities, including persons with developmental disabilities.  Provide regulatory incentives and concessions to projects targeted for persons with disabilities, including persons with developmental disabilities.  Work with local organizations such as the Tri-Counties Regional Center and Transitions Mental Health Association to implement an education and outreach program informing local families about housing and services available for persons with disabilities, including developmental disabilities. The program will include the development of an informational brochure available on the City’s website or at City Hall. Funding Source: General Fund (staff time) and other sources, as available Responsible Party: Community Development Department Timeframe: Support grant applications- at least once during the planning period; develop informational material - within two years of Housing Element adoption; provide incentives for development of housing for persons with disabilities - ongoing 93 Atascadero Housing Element 6 | B: Plan Program 2.A: Density Bonus Maintain an affordable housing density bonus ordinance that establishes procedures for obtaining and monitoring density bonuses in compliance with state law. Update the City’s density bonus ordinance to remain in compliance with Government Code §65915. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Updated density bonus ordinance adoption - within two years of Housing Element adoption; reviewing ordinance for compliance with State law - ongoing Quantified Objective: 25 units (this Objective is a subset of and not in addition to the Quantified Objective for Program 1.A: Adequate Sites) Program 2.B: Inclusionary Housing Ordinance Evaluate the City’s inclusionary housing policy and consider replacing the current inclusionary policy with an inclusionary housing ordinance. An inclusionary ordinance must be consistent with state density bonus regulations and address changing economic and regulatory considerations. The City will continue to monitor the impact of its inclusionary housing policy/ordinance on production of market rate housing in response to market conditions. If the City’s inclusionary housing approach presents an obstacle to the development of the City's fair share of regional housing needs, the City will consider revising the policy/ordinance accordingly. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Review the City’s current inclusionary housing policy within two years of Housing Element adoption Quantified Objective: 50 units (this Objective is a subset of and not in addition to the Quantified Objective for Program 1.A: Adequate Sites) Program 2.C: Affordable Housing In-Lieu funds Evaluate the adoption of a policy to determine the best use of City Affordable Housing In-Lieu funds to support the creation of new affordable housing units in Atascadero. Work with affordable housing developers and identify funding to address the housing needs of extremely low-income households and totally and permanently disabled persons. Funding Source: General Fund (staff time), Inclusionary Housing Fees, and other funding sources, as appropriate Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Affordable Housing In-Lieu funds policy evaluation within two years of Housing Element adoption; identify funding sources annually Quantified Objective: Assist with development of 5 affordable units Program 2.D: Affordable Housing Technical Assistance Provide pre-application technical assistance to affordable housing providers to determine project feasibility and address zoning and code compliance issues in the most cost-effective and expeditious manner possible. If not already initiated via potential projects, annually consult with local affordable housing developers, including offering letters of support for grant applications, advising on local zoning and code compliance, and facilitating partnerships. 94 Atascadero Housing Element B: Plan| 7 Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing and annual consultation Quantified Objective: Provide letters of support for 5 affordable housing project applications Program 2.E: Affordable Housing Development Incentives Provide, when possible, developer incentives such as expedited permit processing and developer impact fee deferrals for units that are affordable to lower-income households, including extremely-low income households. Atascadero will promote these incentives to developers on the City’s website and during the application process. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing Quantified Objective: Assist 5 lower-income housing projects Program 2.F: Mixed-Use Standards Adopt mixed-use development standards that facilitate high-quality development and that strike a balance between the community’s need for housing and the City’s need to preserve viable commercial land uses to help sustain the City’s ability to provide essential services. During the formulation of development standards, the City will assess the potential for residential density increases for mixed-use projects. The City will pursue the drafting of new mixed-use developments standards and Objective Design Standards (Program 3.B) to ensure that the City’s planning and design goals for mixed-use projects and multi-family housing are met. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption Program 2.G: Specific Plans Continue to require the use of specific plans or planned developments for residential projects of 100 or more single-family units to ensure that the distribution of land uses, infrastructure requirements, and implementation measures are consistent with the General Plan and the City’s development goals and needs. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing Program 2.H: Resources to Address Homelessness Continue working with non-profit organizations that address homelessness to aid residents in need and provide technical support as needed. Continue cultivating a close relationship with the El Camino Homeless Organization (ECHO) to maintain a safe and secure shelter that meets the immediate needs of families and individuals who have become homeless. Cooperate with non-profit groups and local religious organizations to allow the temporary use of churches as homeless shelters. Continue to support local 95 Atascadero Housing Element 8 | B: Plan programs that provide emergency resources such as motel voucher programs and emergency food provision. Funding Source: General Fund (staff time), CDBG Responsible Party: Community Development Department Timeframe: Ongoing Program 2.I: Single-Room Occupancy Units (SROs) Review and, if necessary, revise siting regulations for single-room occupancy units (SROs) to comply with State law. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within three years of Housing Element adoption as part of a future Zoning Regulations update Program 3.A: Development Process Streamlining Continue streamlining the project review process by:  Reviewing, and if necessary, revising local review procedures to facilitate a streamlined review process  Accommodating SB 35 streamlining applications or inquiries by creating and making available to interested parties an informational packet that explains the SB 35 streamlining provisions in Atascadero and provides SB 35 eligibility information  Continuing to consolidate all actions relating to a specific project on the same Council or Commission agenda  Continuing to review minor project modifications through the Design Review Committee and more substantial changes through a Planning Commission process  Maintaining pre-approved stock development plans to streamline the plan check process for ADUs Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing; SB 35 informational material within two years of Housing Element adoption Program 3.B: Objective Design Standards In compliance with SB 330, adopt objective design standards to ensure that the City can provide local guidance on design and clearly articulate objective design standards for by-right projects as allowed by state law. Adoption of objective design standards will facilitate high-quality residential development and compliance with state objectives. The objective design standards will ensure provision of adequate private open space, parking, and architectural features, consistent with state law. Part of the objective design standards creation process will include assessing how the standards can be used to encourage a variety of housing types and limit the size of residential units on multi-family zoned properties to encourage units that are affordable by design. Funding Source: SB2 funding, General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption 96 Atascadero Housing Element B: Plan| 9 Program 3.C: Multi-Family Housing Permitting To reduce constraints to multi-family housing production, the City will review and revise the Conditional Use Permit (CUP) requirements for multi-family housing in conjunction with adoption of objective design standards and to comply with the Housing Accountability Act. The Atascadero Zoning Regulations require a CUP for residential projects in the RMF zone over 11 units, excluding RMF-24 properties identified in the Housing Element sites inventory, which are allowed by right. Any revisions to Zoning Regulations will not affect the by-right approval of multi-family projects in the RMF-24 zone on Housing Element sites, which are not subject to a CUP or a Specific Plan. Revisions are intended to facilitate the permitting process for multi-family housing and will be consistent with any by-right or streamlining requirements identified in state law. The City will periodically evaluate the approval process for housing projects to ensure compliance with the intent of the Housing Accountability Act. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Modify CUP requirement within two years of Housing Element adoption in conjunction with adoption of objective design standards; monitor approval process for housing development - ongoing Program 3.D: RMF Zone Height Amend the Zoning Regulations to remove number of stories limit in the Residential Multi-Family (RMF) Zone and regulate based on height in feet, allowing for adequate emergency response and community character preservation. Amend Zoning Regulations definitions and exceptions to height limits, as appropriate, to facilitate three-story development in the RMF Zone. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption Program 3.E: Small Lot Subdivisions Consider adopting small lot subdivision standards that incorporate specific site and building development standards (such as parking, height, yard space, architecture) in exchange for flexible minimum lot sizes. Consider allowing small lot subdivisions without rezoning. Small lot subdivision standards can eliminate the need for multi-family planned developments that are currently subject to a rezoning process. Establishing a set of high-quality standards for each small lot subdivision, instead of minimum lot size, can save substantial staff time and applicant costs and would allow for increased creativity with site design while increasing ownership opportunities for all income segments of the community (affordable by design). Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing; review small lot subdivisions as part of a Comprehensive General Plan and Zoning Regulations Update Program 3.F: Rural Residential Development Standards Adopt a Rural Residential Zone in the Zoning Regulations consistent with its designation on the Zoning Map and standards that distinguish it from the Residential Suburban zone to facilitate the development of a variety of housing types. 97 Atascadero Housing Element 10 | B: Plan Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within three years of Housing Element adoption as part of a Comprehensive General Plan update Program 3.G: Emergency Shelter (ES) Overlay Zone Review the Emergency Shelter (ES) Overlay Zone for continued compliance with state law; evaluate the need and expand the zone, as appropriate, to other appropriate properties, subject to the locational and operational criteria outlined in the Zoning Regulations. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of housing element adoption Program 3.H: Special Needs Housing Laws Review the Zoning Regulations and if necessary, make changes to ensure compliance with the Supportive Housing Streamlining Act (AB 2162) and AB 101 (Low-Barrier Navigation Centers). AB 2162 requires supportive housing to be considered a use by right in zones where multi-family and mixed uses are permitted, including nonresidential zones permitting multi-family uses, if the proposed housing development meets specified criteria. AB 101 requires that Low-Barrier Navigation Centers (LBNC) be a by-right use in areas zoned for mixed-use and nonresidential zones permitting multi-family uses. LBNC provide temporary room and board with limited barriers to entry while case managers work to connect homeless individuals and families to income, public benefits, health services, permanent housing, or other shelter. Funding Source: General Fund (staff time); grants Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of adoption of the Housing Element Program 3.I: Housing Financing Constraints Continue to work with the development community to identify and mitigate any constraints on access to financing for multi-family development. The City will conduct regular stakeholder meetings with members of the development community, including representatives from local non-profit housing organizations, developers, and real estate brokers to solicit feedback. Continue to facilitate understanding of the impacts of economic issues, employment, and growth on housing needs among financial, real estate, and development professionals in formalized settings, such as the Economic Round Table. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing Program 3.J: Non-Governmental Constraints Continue to monitor and evaluate development standards and advances in housing construction methods. Although the City has limited influence over non-governmental constraints, if non-governmental constraints are identified, the City will review, and if necessary, revise, any development regulations or processes that can potentially lessen those constraints. 98 Atascadero Housing Element B: Plan| 11 Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing Program 3.K: Capital Facility Fees To encourage affordability by design, the City will modify the Capital Facility Fee schedule to index fees based on size of unit, providing lower rates for small units where there is a demonstrated nexus. The City will continue to monitor impact fees and the Capital Facility Fee schedule to identify barriers to housing development, particularly affordable units. If constraints are identified, the City shall revise the fee schedule accordingly while balancing infrastructure needs to support housing development. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, City Council Timeframe: Capital Facility Fee modification within two years of Housing Element adoption; impact fee monitoring and revisions - ongoing Program 3.L: Water and Sewer Service Providers In accordance with Government Code Section 65589.7, immediately following City Council adoption, the City will deliver to all public agencies or private entities that provide water or sewer services to properties within the City of Atascadero a copy of the 2020-2028 Housing Element. The City will also confirm that the agencies and entities providing water or sewer services have procedures in place to grant priority for the provision of water and sewer services to proposed developments that include housing units affordable to lower income households (Government Code Section 65589.7). The City will also explore possible options to ease the burden of water service fees (working with the Atascadero Mutual Water Company) and sewer service fees (through the Department of Public Works) for affordable housing projects (both deed-restricted and market rate affordable units). Funding Source: General Fund (staff time), grants, sewer and water fees Responsible Party: Community Development Department Timeframe: Within 30 days of adoption of the Housing Element; coordination - ongoing Program 3.M: Energy Conservation Encourage and facilitate energy conservation and help residents minimize energy-related expenses by:  Promoting environmentally sustainable building practices that provide cost savings to homeowners and developers;  Providing informational material at the Community Development Department counters from PG&E and others that detail energy conservation measures for new and existing buildings, the benefits of the Green Building (San Luis Obispo Green Build), and resources to assist lower-income households with energy-related expenses; and  Continuing to strictly enforce the state energy standards of the California Green Building Code. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing 99 Atascadero Housing Element 12 | B: Plan Program 3.N: Definition of Immediate Family Amend the Zoning Regulations to remove the definition of “immediate family” from the Zoning Regulations and any standards related to that definition, including Section 9-6.107(a)(1)(i) and 9- 6.107(a)(3), which requires immediate family to occupy accessory dwelling units in the A zone. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption Program 3.O: Farmworker Housing in RS Zone Amend the Zoning Regulations for the RS Zone to comply with California Health and Safety Code Section 17021.6, which generally requires that employee housing consisting of no more than 36 beds in group quarters (or 12 units or less designed for use by a single household) be treated as an agricultural use. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption Program 4.A: Housing Rehabilitation and Preservation As new projects, code enforcement actions, and other opportunities arise, the City will investigate ways to meet its housing needs through rehabilitation and preservation of existing units. The City will continue using code enforcement to identify housing maintenance issues and to expedite rehabilitation of substandard and deteriorating housing by offering technical assistance to homeowners and occupants. Funding Source: General Fund (staff time), CDBG Responsible Party: Community Development Department, Department of Public Works Timeframe: Ongoing Quantified Objective: Rehabilitation assistance to 20 units Program 4.B: Community Development Block Grant Continue to participate in federal grant programs, such as the Community Development Block Grant (CDBG) program, to obtain loans and/or grants for housing rehabilitation and homeless services. Funding Source: CDBG Responsible Party: Community Development Department Timeframe: Ongoing Program 4.C: Affordable Housing Preservation and Development Continue to work with non-profit agencies, such as the County Housing Authority, Habitat for Humanity, the San Luis Obispo County Housing Trust Fund, and Peoples’ Self-Help Housing, to preserve existing affordable housing and to pursue funding for new affordable housing units. Utilize inclusionary housing funds, as available and appropriate, to assist in the development of affordable housing by non-profit agencies. Continue to encourage developers to work with agencies such as the California Housing Finance Authority (CHFA) and the Department of Housing and Urban Development (HUD) to obtain loans for development of new multi-family rental housing for low-income households. Specifically, the City will:  Contact potential affordable housing developers 100 Atascadero Housing Element B: Plan| 13  Assist non-profits and other housing advocates in preparing applications for funding opportunities and financings  Provide regulatory concessions and incentives, as necessary, to encourage and facilitate the construction of affordable housing Funding Source: General Fund (staff time), CDBG, Tax Credits Responsible Party: Community Development Department Timeframe: Annual meetings, during preparation of annual review of the Housing Element, to discuss funding opportunities, vacant and opportunity sites, and status of affordable housing projects; ongoing collaboration Program 4.D: Affordable Housing at Risk of Conversion The City will continue to monitor the status of subsidized affordable projects, rental projects, and mobile homes in the City and provide technical and financial assistance, when possible, to ensure long-term affordability. This will involve contacting owner/operators of subsided projects annually to determine the status of the units and their potential to convert to market-rate. If projects are at risk, the City will maintain contact with local organizations and housing providers who may have an interest in acquiring at- risk units. The City will keep track of and apply for funding opportunities to preserve at-risk units and assist other organizations in applying for funding to acquire at-risk units. Funding Source: General Fund (staff time); grants Responsible Party: Community Development Department, Administrative Services Department Timeframe: Contact owners/operators annually and ongoing Program 4.E: Housing Choice Vouchers Continue to work with the Housing Authority of San Luis Obispo (HASLO) for administration of the Housing Choice Voucher program (formerly Section 8). The City utilizes this relationship for program implementation and income verifications and will support additional Housing Choice Vouchers in the community. Funding Source: U.S. Department of Housing and Urban Development (HUD) Responsible Party: Community Development Department, City Council, San Luis Obispo Housing Authority Timeframe: Ongoing Quantified Objective: Preservation of 230 vouchers in use in Atascadero (data is for the 93422 and 93423 zip codes as provided by HASLO AND may include areas outside the City) Program 4.F: Historic Building Conservation Preserve and protect homes that have historical and architectural significance, such as the Colony homes, through continued implementation of the Historic Site (HS) overlay zone and by maintaining a GIS-based map of historic buildings and sites. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing 101 Atascadero Housing Element 14 | B: Plan Program 4.G: Condominium Conversion Continue enforcing the Condominium Conversion Ordinance (Chapter 12 of the Zoning Regulations) to reduce the impacts of condominium conversions on lower-cost rental housing. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing Program 4.H: Infrastructure Prioritize street and infrastructure improvement projects to benefit high-need areas, including existing high-density residential areas. Funding Source: General Fund (staff time), CDBG Responsible Party: Community Development Department, Public Works Department, City Council Timeframe: Ongoing Program 5.A: Fair Housing Services Continue to provide information and complaint referral services for those persons who believe they have been denied access to housing because of their race, religion, sex, marital status, ancestry, national origin, color, or disability, family status, sexual orientation, source of income, or political affiliation. The City will educate Community Development Department staff on how to respond to complaints received regarding potential claims of housing discrimination. Staff will be trained to provide the person with an informational handout detailing the process of reporting and filing a claim through the California Department of Fair Employment and Housing. The staff will notify the City Manager and the City Attorney’s office of the intent to file a claim and will be available to provide assistance to the person filing a claim, as needed. Information on Fair Housing law and how to file a claim will also be made available on the City’s website and at the Community Development Department. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing; online fair housing information to be available within one year of Housing Element adoption Program 5.B: Affirmatively Further Fair Housing The City will promote and affirmatively further fair housing opportunities and promote housing for all persons, including those protected by the California Fair Employment and Housing Act and any other state and federal fair housing and planning law. The City will:  Ensure that all development applications are considered, reviewed, and approved without prejudice to the proposed residents, contingent on the development application’s compliance with all entitlement requirements.  Accommodate persons with disabilities who seek reasonable waiver or modification of land use controls and/or development standards pursuant to procedures and criteria set forth in the Zoning Regulations.  Work with the County of San Luis Obispo to implement the regional Analysis of Impediments to Fair Housing Choice and HUD Consolidated Plan. 102 Atascadero Housing Element B: Plan| 15  Facilitate public education and outreach by creating informational flyers on fair housing that will be made available at public counters, libraries, and on the City’s/County’s website.  Conduct public meetings at suitable times, accessible to persons with disabilities, and near public transit. Resources will be invested to provide interpretation and translation services when requested at public meetings.  Prioritize community and stakeholder engagement during controversial development decisions. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing 3. Summary of Quantified Objectives Table B.1 summarizes the City’s quantified objectives for the 2020-2028 planning period by income group.  The Construction Objective represents the City’s remaining (after counting as credit the units with approved or issued permits) 2018-2028 RHNA of 266 units, as well as objectives for the density bonus and inclusionary housing programs.  The Rehabilitation Objective represents objectives for the Housing Rehabilitation and Preservation program.  The Conservation/Preservation objective refers to maintenance of the current level of assistance through the Housing Choice (formerly Section 8) Voucher program from the County of San Luis Obispo Housing Authority. Table B.1: Quantified Objectives Objectives Income Levels Total Extremely/ Very Low Low Moderate Above Moderate Construction Objective * 171 105 15 50 341 Rehabilitation Objective 5 5 10 -- 20 Conservation/Preservation Objective 230 -- -- 230 Total 176 110 25 50 361 *Note: The City of Atascadero is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build these units. This includes the creation, adoption, and implementation of General Plan policies, zoning standards, and/or incentives to encourage the construction of various types of units. 103 Atascadero Housing Element 16 | B: Plan This page intentionally left blank. 104 Atascadero Housing Element C: Regional Vision| 1 C. Regional Vision for Housing In early 2020, local agencies adopted a San Luis Obispo Countywide Regional Compact to establish a united regional framework to unlock our potential to develop an adequate supply of housing and infrastructure that support our economic prosperity. 1. Overview San Luis Obispo County is a rural coastal county with seven vibrant cities and numerous unincorporated communities that depend on collaborative relationships between and among government agencies, community organizations, and residents to solve the region’s significant issues including inadequate supply of affordable housing and resilient water, wastewater, and transportation infrastructure and resources. The County and all seven Cities are working collaboratively to develop the region’s first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address these issues. A key component of the Regional Plan is the integration of efforts to address critical housing and related infrastructure needs. As part of the Housing Element update process, representatives of the County, seven Cities and San Luis Obispo Council of Governments (SLOCOG) developed this chapter to showcase the ongoing commitment of each agency to this collaborative effort. This Chapter presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure. 2. Alignment with Regional Compact This effort is guided by the San Luis Obispo Countywide Regional Compact (Regional Compact). The Regional Compact, adopted by each jurisdiction in early 2020, outlines six shared regional goals to guide collaborative resolution of underlying housing and infrastructure needs: Goal 1. Strengthen Community Quality of Life – We believe that our Region’s quality of life depends on four cornerstones to foster a stable and healthy economy for all: resilient infrastructure and resources, adequate housing supply, business opportunities, and educational pathways. Goal 2. Share Regional Prosperity – We believe that our Region should share the impacts and benefits of achieving enduring quality of life among all people, sectors and interests. Goal 3. Create Balanced Communities – We believe that our Region should encourage new development that helps to improve the balance of jobs and housing throughout the Region, providing more opportunities to residents to live and work in the same community. 105 Atascadero Housing Element 2 | C: Regional Vision Goal 4. Value Agriculture & Natural Resources – We believe that our Region’s unique agricultural resources, open space, and natural environments play a vital role in sustaining healthy local communities and a healthy economy, and therefore should be purposefully protected. Goal 5. Support Equitable Opportunities – We believe that our Region should support policies, actions, and incentives that increase housing development of all types, available to people at all income levels. Goal 6. Foster Accelerated Housing Production – We believe that our Region must achieve efficient planning and production of housing and focus on strategies that produce the greatest impact. 3. Policies It will take regional collaboration and local actions to realize the vision and goals outlined in the Regional Compact. Below is an initial list of aspirational regional policies that further the Regional Compact vision, in addition to local policies. By listing these below, it does not mandate any individual agency to implement actions, but rather offers ways that the County, cities, SLOCOG, and other partners can consider moving forward, together. In addition, and consistent with each Housing Element cycle, each of the seven cities and the County has the opportunity to choose to implement local policies and programs that help to support their achievement of its RHNA, and if an agency chooses to, can also support the Regional Compact vision and goals in a way that works for its jurisdiction and community. See Section B for local programs and policies for Atascadero’s anticipated actions during this Housing Element cycle. R-1: Promote awareness and support of regional efforts that further housing and infrastructure resiliency by utilizing community engagement, and consistent and transparent communication. R-2: Encourage an adequate housing supply and resilient infrastructure, services, and resources to improve the balance of jobs and housing throughout the Region. R-3: Develop inter-agency partnerships as appropriate to implement goals and policies related to housing and infrastructure. R-4: Coordinate State, Federal, and other funding opportunities for housing and infrastructure development throughout the Region. R-5: Encourage developers to sell newly constructed housing units to individuals residing or employed within the area of the development (a city or the County) first before selling to individuals from outside the County, to promote local preference. R-6: Encourage rental units be prioritized for long term residents rather than short term users or vacation rentals. 106 Atascadero Housing Element C: Regional Vision| 3 R-7: Support housing development that is located within existing communities and strategically planned areas. R-8: Encourage regional collaboration on a menu of housing types, models, and efforts to support streamlined approvals for such developments (i.e. Accessory Dwelling Units, etc.). 4. Moving Forward The County, cities, SLOCOG, and other partners engaged in housing and infrastructure development will continue to collaborate on efforts moving forward – recognizing the benefits of working together to achieve an enduring quality of life among the region’s people, sectors and interests. This ongoing collaboration will include learning from each other and sharing possible tools, policies and actions that can allow the collective region to move towards our adopted Regional Compact vision. Ongoing collaborative efforts will be described in the Regional Plan, anticipated to be complete in 2021, and related regional efforts will live outside of each individual agency’s Housing Element. 107 Atascadero Housing Element 4 | C: Regional Vision This page intentionally left blank. 108 Atascadero Housing Element D: Needs Assessment| 1 D. Housing Needs Assessment To best understand the types of housing that will be needed to meet future demand, Housing Element law (California Government Code Section 65583[a][1] and 65583[a][2]) requires that this Housing Element assess population demographics and economic characteristics. Characteristics such as age, ethnicity, and employment influence the type and cost of housing needed or in high demand. Tracking changes in the demographics can also help City leaders better respond to or anticipate changing housing demand. This chapter also details the housing stock characteristics of the City to identify how well the current housing stock meets the needs of current and future residents. The identified demographic patterns and trends serve as the basis for crafting the City’s housing policies and programs. 1. Population, Employment and Household Trends The Atascadero population grew seven percent between 2010 to 2018. In 2018, the City had an estimated population of 30,037 persons. Growth in Atascadero was slower than growth seen in Paso Robles (10 percent) but more than in the City of San Luis Obispo (5 percent) and County of San Luis Obispo (6 percent) during the same period. The San Luis Obispo Council of Governments (SLOCOG) estimates in the 2050 Regional Growth Forecast for San Luis Obispo County that the population in Atascadero will grow to 34,538 persons by 2050, a 15 percent increase from 2018. See Table D.1 for detailed population information for Atascadero and surrounding communities. Table D.1: Trends in Population Growth Jurisdiction 2010 2018 2010-2018 Number Number Change Atascadero 27,981 30,037 7% Paso Robles 28,794 31,656 10% San Luis Obispo 44,959 47,160 5% San Luis Obispo County 265,577 281,455 6% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) Age Characteristics In 2018, Atascadero had a median age of 38.3, slightly below the median for San Luis Obispo County of 39.1. Table D.2 shows substantial growth in the 65 and above age groups from 2010 to 2018, while the populations in the 45-54 age groups had the greatest decrease over the same period. This is similar to trends seen across the state, in which the proportion of individuals over the age of 50 has increased significantly over the past 10 years, while middle age groups are declining. 109 Atascadero Housing Element 2 | D: Needs Assessment Table D.2: Age Distribution Age Group 2010 2018 Percent Change Number of Persons Percent of Total Number of Persons Percent of Total < 15 4505 16% 5,354 18% 2% 15-24 3,861 14% 3,402 11% -2% 25-34 3582 13% 4,321 14% 2% 35-44 3945 14% 3,949 13% -1% 45-54 4925 18% 3,478 12% -6% 55-64 3945 14% 4,664 16% 1% 65+ 3246 12% 4,869 16% 5% Total 27,981 100% 30,037 100% 7% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) Race and Ethnicity The racial and ethnic composition of Atascadero residents has not changed much since 2010. As of 2018, the majority of residents in Atascadero are white (76 percent, down one percent from 2010). Hispanic/Latino residents make up 17 percent of the population, an increase of one percent since 2010. Between 2010 and 2018, there was a decrease in the proportion of Black residents, from two percent of the population to one percent. Table D.3: Trends in Race and Ethnicity Race/Ethnicity 2010 2018 Number Percent Number Percent White (Not Hispanic/Latino) 21,742 77% 22,937 76% Hispanic/Latino 4,429 16% 5,132 17% Black or African American 551 2% 206 1% Asian or Pacific Islander 693 2% 517 2% American Indian 179 1% 100 0.3% Other/Two or More 716 3% 1,145 4% Total 27981 100% 30,037 100% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) Employment The major industries employing Atascadero residents are shown below. From 2010 to 2018, the total number of employed residents increased from 12,828 to 15,361. As of 2018, the Education, Health, and Social Services industry accounted for the largest share of Atascadero employment, accounting for 28 percent, a one percent decrease from 2010. Retail trade is the second largest industry, offering 12 percent of total jobs, followed closely by Professional, Scientific, Management, Administrative, and Waste Management services at 10 percent of the jobs, a 35 percent increase from 2000. Retail trade and Finance, insurance, real estate and rental and leasing both had two-percent job losses from 2010 to 2018. The 110 Atascadero Housing Element D: Needs Assessment| 3 SLOCOG 2050 Regional Growth Forecast estimates employment in Atascadero to increase to 10,742 jobs by 2050. Table D.4: Employment by Industry Employment Sector 2010 2018 Percent Change Number Percent Number Percent Educational, health and social services 3,717 29% 4,336 28% -1% Retail trade 1,481 12% 1,545 10% -2% Professional, scientific, management, administrative, and waste management services 1,317 10% 1,479 10% 0% Construction 1,129 9% 1,396 9% 0% Public administration 1,089 8% 1,205 8% 0% Arts, entertainment, recreation, accommodation and food services 821 6% 1,328 9% 3% Manufacturing 760 6% 1,013 7% 1% Transportation and warehousing, and utilities 691 5% 787 5% 0% Finance, insurance, real estate, and rental and leasing 641 5% 491 3% -2% Other services 583 5% 892 6% 1% Wholesale trade 268 2% 328 2% 0% Agriculture, forestry, fishing and hunting, and mining 180 1% 270 2% 1% Information 151 1% 291 2% 1% Total 12,828 100% 15,361 100% 20% 0BSource: U.S. Census, 2010 and 2018 ACS (5-year estimates) Census data show that higher-paying managerial/professional jobs are decreasing among Atascadero residents, while typically lower-paying service jobs are increasing. In 2018, 33 percent of Atascadero residents held managerial/professional jobs, representing a seven percent decrease in this job category from 2010 compared with a four percent increase in service jobs during that same time. Table D.5: Employment by Occupation Occupations of Residents 2010 2018 Percent Change Persons Percent Persons Percent Managerial/Professional 5,105 40% 6559 33% -7% Sales and Office 3,326 26% 3072 25% -1% Services 2,091 16% 3103 20% 4% Natural resources, construction, and maintenance occupations 1,308 10% 1720 13% 3% Production, transportation, and material moving occupations 998 8% 906 10% 2% Total 12,828 100% 15,361 100% 20% Source: U.S. Census, 2006-2010 and 2018 ACS (5-year estimates) 111 Atascadero Housing Element 4 | D: Needs Assessment Household Characteristics Household composition and size are often interrelated and are indicators of the type of housing appropriate for Atascadero residents. Most householders (head of household) in Atascadero are 35 to 65 years old, although the proportion of householders in this age group has decreased by six percent since 2010. From 2010 to 2018, the number of householders over the age of 65 increased from 22 to 25 percent. The percentage of family households fell slightly from 69 percent in 2010 to 68 percent in 2018. The average household size increased from 2.51 in 2010 to 2.56 in 2018. Table D.6: Household Characteristics 2010 2018 Percent Change Number Percent Number Percent Avg. Household Size 2.51 2.56 2% Households by Age Householders < 35 yrs. 1,953 18% 2,433 21% 3% Householders 35-65 yrs. 6,465 60% 6,242 54% -6% Householders 65+ yrs. 2,319 22% 2,905 25% 3% Household Types Family Households 7,404 69% 7,856 68% -1% Married Couple 5,681 77% 6,279 54% -23% Other Families 1,723 23% 1,577 14% -9% Non-Family Households 3,333 31% 3,724 32% 12% Total 10,737 100% 11,580 100% 8% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) Household Income According to the U.S. Census, the median household income in Atascadero increased from $65,479 in 2010 to $69,587 in 2018. The largest increase occurred within the $100,000 or more income brackets. The less than $10,000 income category also grew by one percent between 2010 and 2018. For the purposes of the Housing Element, the State Department of Housing and Community Development (HCD) has established five income groups based on Area Median Income (AMI):  Extremely Low Income: up to 30 percent of AMI  Very Low Income: 31-50 percent of AMI  Low Income: 51-80 percent of AMI  Moderate Income: 81- 120 percent AMI  Above Moderate Income: >120 percent AMI 112 Atascadero Housing Element D: Needs Assessment| 5 Table D.7: Household Income Income Group 2010 2018 Percent Change Households Percent Households Percent Less than $10,000 355 3% 439 4% 1% $10,000 to $14,999 556 5% 529 5% 0% $15,000 to $24,999 817 8% 776 7% -1% $25,000 to $34,999 957 9% 799 7% -2% $35,000 to $49,999 1,409 13% 1,361 12% -1% $50,000 to $74,999 2,070 20% 2,104 19% -1% $75,000 to $99,999 1,533 15% 1,834 16% 1% $100,000 or more 2,756 26% 3,409 30% 4% Total Households 10,453 100% 11,250 100% 8% Median household income $65,479 $69,587 6% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) AMI refers to the median income for the Metropolitan Statistical Area. For the City of Atascadero, this area refers to San Luis Obispo County. HUD periodically receives "custom tabulations" of Census data from the Census Bureau that are largely not available through standard Census products. The most recent estimates are derived from the 2012-2016 ACS. This dataset, known as the "CHAS" data (Comprehensive Housing Affordability Strategy), demonstrates the extent of housing problems and housing needs, particularly for lower-income households in the County and City shown on Table D.8. Table D.8: Household Distribution by Income Group Jurisdiction Total HHs Extremely Low Income (0-30% MFI) Very Low Income (31- 50% MFI) Low Income (51-80% MFI) Moderate/ Above-Moderate Income (81% + MFI) City of Atascadero 11,250 1,385 (12%) 885 (8%) 1,870 (17%) 7,110 (63%) County of San Luis Obispo 104,405 15,005 (14%) 11,470 (11%) 17,625 (17%) 60,305 (58%) Note: Because HUD programs do not cover households with incomes above 80 percent of the County AMI, CHAS data do not provide any breakdown of income groups above 80 percent MFI (Median Family Income). Data presented in this table are based on special tabulations from sample Census data. The number of households in each category usually deviates slightly from the 100% count due to the need to extrapolate sample data out to total households. Interpretations of this data should focus on the proportion of households in need of assistance rather than on precise numbers. Sources: HUD CHAS Data, 2012-2016 2. Special Needs Groups Certain groups have more difficulty finding decent, affordable housing due to their special circumstances. Special circumstances may be related to one's income-earning potential, family characteristics, the presence of physical or mental disabilities, or age-related health issues. As a result, certain groups typically earn lower incomes and have higher rates of overpayment for housing or live in overcrowded housing. A central goal of the Housing Element is to identify persons with special needs who need assistance in 113 Atascadero Housing Element 6 | D: Needs Assessment meeting their housing needs. Housing Element law specifically requires quantification of the housing need for seniors, persons with disabilities, large families, female-headed households, persons and families experiencing homelessness, and farmworkers. Senior Population Senior households are included in those with special housing needs due to the likelihood of limited income, physical disabilities, or higher health care costs. As illustrated in Table D.9, 2,905 Atascadero households (25 percent) were headed by seniors (persons age 65 years and older) in 2018. Seniors typically have special needs due to disabilities, health care needs, and fixed incomes. Seniors may also require assistance with domestic chores and activities such as driving, cooking, cleaning, showering, or climbing stairs. For elderly people who live alone or do not have relatives to care for them, the need for assistance may not be met. The special needs of seniors can by met through congregate care, rent subsidies, shared housing, and housing rehabilitation assistance. For the frail or disabled elderly, housing with architectural design features that accommodate disabilities can help extend the ability to live independently. In addition, seniors with mobility/self-care limitations benefit from transportation options. As of 2020, there are 33 residential and group care facilities offering 361 units in Atascadero. The facilities offer a range in level of assistance and community structure. Table D.9: Senior Households Householder by Age Owner Renter Total Number Percent Number Percent Number Percent Total 65 and over 2,396 33% 509 12% 2,905 25% 65 to 74 years 1,250 17% 258 6% 1,508 13% 75 to 84 years 898 12% 150 4% 1048 9% 85 years & over 248 3% 101 2% 349 3% Total 64 and under 4,960 67% 3,715 88% 8,675 75% Total (all ages) 7,356 100% 4,224 100% 11,580 100% Source: U.S. Census ACS 5-Year Estimates Subject Tables 2018 Persons with Disabilities Persons with disabilities have special housing needs because of employment and income challenges, the need for accessible and appropriate housing, and higher health care costs. A disability is defined broadly by the U.S. Census Bureau as a physical, mental, or emotional condition that lasts over a long period of time and makes it difficult to live independently. Census Bureau data captures six types of disabilities:  Hearing Difficulty: Deaf or having serious difficulty hearing  Vision Difficulty: Blind or having serious difficulty seeing, even when wearing glasses  Cognitive Difficulty: Because of a physical, mental, or emotional problem, having difficulty remembering, concentrating, or making decisions 114 Atascadero Housing Element D: Needs Assessment| 7  Ambulatory Difficulty: Having serious difficulty walking or climbing stairs  Self-Care Difficulty: Having difficulty bathing or dressing  Independent Living Difficulty: Because of a physical, mental, or emotional problem, having difficulty doing errands alone such as visiting a doctor’s office or shopping In 2018, Census ACS data estimated that 3,501 residents in Atascadero had a disability. More than one- third of disabilities were reported by residents age 65 years or older, who may face additional housing needs, as described in the senior population discussion. Among disabled residents under 65 years of age, cognitive and independent living disabilities were most prevalent. For residents over the age of 65 years, ambulatory and hearing disabilities were most prevalent. Section E: Housing Constraints of this Housing Element addresses governmental constraints for persons with disabilities in Atascadero. Table D.10: Disability Characteristics Disability/Age Group Number Percent Persons with a Disability 3,501 11.7% Total Disabilities Ages 5-64 1,830 7% Hearing Disability 428 2% Vision Disability 364 1% Cognitive Disability 889 4% Ambulatory Difficulty 430 2% Self Care Disability 337 1% Independent Living Difficulty (18-64 years) 672 4% Total Disabilities Ages 65 and Over 1,671 35% Hearing Disability 894 19% Vision Disability 4,808 5% Cognitive Disability 413 9% Ambulatory Difficulty 1,166 24% Self Care Disability 355 7% Independent Living Difficulty 496 10% Source: U.S. Census, 2018 ACS (5-year estimates) Persons with Developmental Disabilities According to Section 4512 of the Welfare and Institutions Code a “developmental disability” means a disability that originates before an individual attains age 18 years, continues, or can be expected to continue indefinitely, and constitutes a substantial disability for that individual, which includes mental retardation, cerebral palsy, epilepsy, and autism. This term does not include other handicapping conditions that are solely physical in nature. 115 Atascadero Housing Element 8 | D: Needs Assessment Many persons with developmental disabilities can live and work independently within a conventional housing environment. Individuals with more severe developmental disabilities require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the persons with developmental disabilities is transition from the person’s living situation as a child to an appropriate level of independence as an adult. The State Department of Developmental Services (DDS) currently provides community-based services to approximately 330,000 persons with developmental disabilities and their families through a statewide system of 21 regional centers, four developmental centers, and two community-based facilities. The Tri- Counties Regional Center (TCRC) is one of 21 regional centers in the State of California that provides point of entry to services for people with developmental disabilities who reside in Ventura, Santa Barbara, and San Luis Obispo Counties. TCRC is a private, non-profit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. As of 2020, TCRC served approximately 14,000 people in its three-county area, with 340 staff members. Table D.11 shows the number of individuals served by TCRC in the 93422 ZIP code, which includes the City of Atascadero. (Note: The boundary of this ZIP code extends beyond the borders of Atascadero city limits.) Table D.11: Persons with Developmental Disabilities served by TCRC, 2020 Zip Code 0-14 years 15-22 Years 23-54 years 55-65 years 65+ years Total 93422 200 69 215 42 40 566 Source: Tri-County Regional Center, 2020 A number of housing types are appropriate for people living with a development disability: rent subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, Housing Choice Voucher (formerly Section 8), special programs for home purchase, HUD housing, and SB 962 homes. The design of housing accessibility modifications, proximity to services and transit, and availability of group living opportunities represent the types of considerations important in serving this need group. Incorporating barrier-free design in all, new multi-family housing (as required by California and federal Fair Housing laws) is especially important to provide the widest range of choices for disabled residents. Special consideration should also be given to affordability of housing, as people with disabilities may be living on a fixed income. Large Families Large families or large households are defined as those families or groups of people containing five or more persons. Analysis of changes in the number of large families/groups is essential because of their distinctive demand on local housing resources. In 2018, over 1,000 households (or nine percent of Atascadero households) were made up of five or more persons. Large households may have trouble finding suitable units, particularly renter-occupied households, which are much less likely to find three or more-bedroom units. Table D.12 shows that while renter households make up a smaller fraction of households compared with owner households they comprise a larger proportion of large households. 116 Atascadero Housing Element D: Needs Assessment| 9 Table D.12: Household Size by Tenure Tenure 1-4 Persons 5+ Persons Total Percent Number Percent Number Percent Owner-Occupied 6,733 92% 623 8% 7,356 64% Renter-Occupied 3,822 90% 402 10% 4,224 36% Total 10,555 91% 1,025 9% 11,580 100% Source: U.S. Census, 2018 ACS (5-year estimates) Female-Headed Households As of 2018, 14 percent (1,577) of Atascadero households were single-parent families; most single-parent families were headed by women. Housing problems for this group can be significant. Any household with only one person able to earn wages is at a significant disadvantage in the housing market and single parents may have to take more time off from work to care for their children. Single-parent households are at a higher risk of becoming homeless because of lower incomes and the lack of affordable housing and support services. The U.S. Census estimates that of the 467 families with children living in poverty in 2018 in Atascadero, almost half (49%) percent were headed by women. Planning for housing development to serve single-parent families may require on-site childcare facilities. Table D.13: Single-Parent Households, 2018 Household Type Total Percent Married Couple 6,279 54% Married Couple with Children 2,289 20% Female householder, No Partner Present 1,117 10% Female householder, No Partner Present, With Children 687 6% Male householder, No Partner Present 460 4% Male householder, No Partner Present with Children 107 1% Non-Family Households 3,724 32% Total Households 11,580 100% Source: U.S. Census, 2018 ACS (5-year estimates) Persons in Need of Emergency Shelter State housing element law requires the analysis of the special housing requirements of persons and families in need of emergency shelter and identification of adequate sites that will be made available with appropriate zoning and development standards, and with public services and facilities needed to facilitate the development of emergency shelters and transitional housing. More recently, the 2019 San Luis Obispo County Homeless Point-In-Time Census & Survey estimates a homeless population of 1,483 in San Luis Obispo County. This represents a 31.8 percent increase in the homeless population in San Luis Obispo County from 2019. Based on this count, an estimated 1,172 persons will be without shelter at some point during the year. Of those surveyed in the County, 84 percent 117 Atascadero Housing Element 10 | D: Needs Assessment were chronically homeless, 74 percent lived in San Luis Obispo County before becoming homeless, 82 percent were unsheltered, 57 percent indicated mental health issues, including post-traumatic stress disorder, 10 percent were minors, and 11 percent were between 18 and 24 years old. Consistent with HUD definition of homeless, the report did not include families living doubled up with other families or those living in RV or trailer parks in the count of homeless. The Point-In-Time Census & Survey estimated there were 102 sheltered and 71 unsheltered homeless persons in Atascadero. Twenty-three percent of persons experiencing homelessness in North County were living on the streets, and 26 percent are in an emergency or transitional shelter. Atascadero participates in local efforts to assist the homeless and those in need of temporary shelter. Atascadero amended its Zoning Regulations to allow for an Emergency Shelter Overlay Zone. This zone provides an area where an emergency shelters are permitted without a Conditional Use Permit in compliance with Senate Bill 2. Currently, one site is zoned and operating an existing emergency shelter within the Emergency Shelter Overlay Zone (APN 030-341-013) with a capacity of 60 beds (this capacity reflects an increase in beds implemented in 2019). In August 2019, ECHO became the North County’s first round-the-clock shelter. This facility is also the only permanent and year-round overnight shelter in North County. Prior to the zoning amendment to permit emergency shelters at this site, the emergency shelter was at risk of permanent closure. To ensure the new ordinance was not overly restrictive, the City worked closely with El Camino Housing Organization (ECHO), the non-profit organization that addresses homelessness issues and operates this facility. Program 2.H in the Housing Plan is included to continue cooperation with non- profit groups and local religious organizations to allow the temporary use of churches as homeless shelters and to support local assistance programs such as emergency food provision and motel voucher programs (funded by CDBG funds) for temporarily displaced and extremely low-income persons. Transitional Food and Shelter operates the Medically Fragile Homeless program, a county-wide service, based in Atascadero and the Atascadero Warming Center which serves those living in Atascadero and surrounding areas. The Medically Fragile Homeless program (MFH) provides small, individual housing, supportive services and case management for the medically fragile homeless in San Luis Obispo County which it has operated since 2001. Temporary housing is provided for persons who have a medically verified need for 24/7 non-congregate care for a period of 3 to 90 days. Those in need of MFH housing must be referred by an agency, organization, physician and/or hospital. MFH is behaviorally based, has no income requirement, and allows other members of the client’s immediate household including one pet to live in the unit. The Atascadero Warming Center (AWC) is open November 1st through April 15th when the temperature is forecast to be 40 degrees or less and/or there is a 50% chance or greater of rain. The low barrier, behaviorally based center provides meals, clothing and other services through a volunteer effort. The goal of the shelter is to provide a warm, safe and welcoming environment that serves as a navigation center to connect those seeking shelter (individuals and families) with the services they need. In 2019-2020, the center will be located at The Lutheran Church of the Redeemer in Atascadero through the generosity of their Pastor and parishioners. Farmworkers The number of farmworkers in Atascadero is difficult to quantify, as U.S. Census data frequently underestimate this population. However, according to the U.S. Census, in 2018, 270 Atascadero residents 118 Atascadero Housing Element D: Needs Assessment| 11 were employed in agriculture, forestry, fishing and hunting, and mining. This represents approximately two percent of the total population. From 2010 to 2018, the number of residents working under this Census category doubled. The City has approximately 43.8 acres of designated agriculture, comprising five separate parcels currently under one owner. These parcels are being utilized as a Christmas tree farm to grow and sell seasonal Christmas trees. Atascadero Municipal Code Section 9-3.122(o) allows for “farm labor quarters” as a permitted use, where no CUP is required, in all Agriculture zones. Agriculture uses are conditionally allowed in the RS zone for uses such as crop production and grazing. This category is defined as “Agricultural uses including the production of grains, field crops, vegetables, melons, fruits, tree nuts, flower fields and seed production, tree and sod farms, crop services and crop harvesting. Also includes the raising or feeding of beef cattle, sheep and goats by grazing or pasturing.” The Employee Housing Act (Government Code Section 17021.5 and 17021.6) requires that any employee housing occupied by six or fewer employees shall be considered a single-family structure with a residential land use, and must be treated the same as a single-family dwelling of the same type in the same zone. In addition, employee housing consisting of no more than 36 beds in a group quarters, or 12 units or separate rooms or spaces designed for use by a single-family or household, must be considered an agricultural land use and be treated the same as any other agricultural activity in the same zone. The Atascadero Zoning Regulations identify one agricultural zone which permits agricultural operations and complies with the requirements of the Employee Housing Act. In addition, the RS zone allows agricultural uses with a Conditional Use Permit (CUP). To comply with the Employee Housing Act in the RS zone, Program 3.O is included in this Housing Element. While there are very few agricultural parcels in the City, Atascadero is surrounded by land devoted to agricultural uses, including vineyards. It is likely that farmworkers may be housed on site at agricultural operations outside Atascadero. The United States Department of Agriculture periodically completes a census of farms and their characteristics. The most recent data (2017) provides an overview of farm operations in San Luis Obispo County: • There are 879 farm operations with hired workers in San Luis Obispo County. • These farm operations employ 11,416 hired workers, with a total payroll of $179,701,000. • Of these farms, 588 employ workers fewer than 150 days per year; farmworkers at these farms worked 6,681 days in 2017. A total of 635 farms employ workers 150 days or more (8,421 days worked). • There are two Joe Serna Farm Worker Grant Program housing projects in the county, with 83 total units. There are four additional employee housing facilities in the county; three are permanent and one is seasonal. The three permanent facilities house 79 employees, and the one seasonal facility houses 16 employees. Farmworkers have the lowest family income and highest poverty rate of any occupation surveyed by the Census Bureau. Throughout the county, the housing needs of farmworkers can be supported with 119 Atascadero Housing Element 12 | D: Needs Assessment additional affordable housing. The State Housing and Community Development Department administers more than 20 programs that award loans and grants to local public agencies, private non-profit and for- profit housing developers, and service providers every year. This money supports the construction, acquisition, rehabilitation and preservation of affordable rental and ownership housing, childcare facilities, homeless shelters and transitional housing, public facilities and infrastructure, and the development of jobs for low-income workers. Many of these programs and funding sources can be utilized to provide housing for farmworkers. Definition of Family Local governments may unintentionally restrict access to housing for households failing to qualify as a “family” by the definition specified in the Zoning Regulations. Specifically, a restrictive definition of “family” that limits the number of and differentiates between related and unrelated individuals living together may illegally limit the development and siting of group homes for persons with disabilities, but not housing for families that are similarly sized or situated. The Atascadero Zoning Regulations defines “family” as a “single housekeeping unit” defined as the functional equivalent of a traditional family, whose members are an interactive group of persons jointly occupying a single dwelling unit, and where, if the unit is rented, all adult residents have chosen to jointly occupy the entire premises of the dwelling unit, under a single written lease with joint use and responsibility for the premises, and the makeup of the household occupying the unit is determined by the residents of the unit rather than the landlord or property manager. This definition does not discriminate nor limit access to housing for persons with disabilities. The Atascadero Zoning Regulations also include a definition for “immediate family”: relatives of an applicant or spouse of applicant, limited to grandparents, parents, children, and siblings. Program 3.N is included to remove this definition and all regulations that are related to this definition (including Section 9-6.107(a)(1)(i), which requires immediate family to occupy accessory dwelling units in the A zone) from the Zoning Regulations. 3. Housing Characteristics Tenure and Vacancy Housing tenure refers to the occupancy of a housing unit—whether the unit is owner-occupied or renter- occupied. Housing tenure is influenced by demographic factors (e.g., household income, composition, and age of the householder), as well as housing cost. Among occupied units, the percentage of owner- occupied homes increased from 59 percent in 2010 to 61 percent in 2018. Renter-occupied units make up just 35 percent of all occupied units. Countywide, renter-occupied units make up 39 percent of all occupied units. As of 2018, four percent of Atascadero’s housing units were estimated to be vacant. This is three percent lower than 2010, when the vacancy rate was seven percent. 120 Atascadero Housing Element D: Needs Assessment| 13 Table D.14: Tenure and Vacancy Tenure 2010 2018 Number Percent Number Percent Occupied Units 10,737 93% 11,580 96% Owner 6,827 59% 7,356 61% Renter 3,910 34% 4,224 35% Vacant Units 768 7% 449 4% Total 11,505 100% 12,029 100% Source: U.S. Census, 2010, 2018 ACS (5-year estimates) Housing Type and Age Single-family homes make up more than three-quarters of Atascadero’s housing stock. The variety of housing types has remained stable over the period from 2010 to 2018, with slight growth in single-family homes (detached) and a slight decline in the proportion of mobile homes. Table D.15: Trends in Housing Type Housing Type 2010 2020 Units Percent Units Percent Single-Family Detached 8,068 72% 8,563 70% Single-Family Attached 427 4% 538 4% Multi-Family 2-4 Units 1,030 9% 1,078 9% Multi-Family 5+ Units 1,241 11% 1,443 12% Mobile Homes 517 5% 533 4% Other (e.g., R.V Park) 0 0% 0 0% Total Units 11,283 100% 12,155 100% Source: U.S. Census 2010, Department of Finance Population and Housing Estimates, 2020 The category of “multi-family 2-4 units” may also be referred to as the “missing middle” housing. Missing middle housing is a range of house-scale buildings with multiple units that are compatible in scale and form with detached single-family homes. Examples include duplexes, triplexes, bungalow courts, and courtyard apartments. Certain Colony Homes that have been divided into smaller units are an excellent example of missing middle housing in the Atascadero style. Housing Age and Condition Housing ages and deteriorates over time. If not regularly maintained, structures can deteriorate and discourage reinvestment, depress neighborhood property values, and even become health hazards. Maintaining and improving housing quality is an important goal for communities. Housing age can be an indicator of the need for housing rehabilitation. Generally, housing older than 30 years (i.e., built before 1990), while still needing rehabilitation, will not require rehabilitation as substantial as what would be required for housing units older than 50 years old (i.e., built before 1970). Housing units older than 50 years are more likely to require complete rehabilitation of housing systems such as roofing, plumbing, and electrical. According to the U.S. Census, more than half, or 69 percent, of Atascadero’s housing stock was 121 Atascadero Housing Element 14 | D: Needs Assessment built prior to 1990 (30 years or older) and close to one quarter (24 percent) of Atascadero’s housing stock was built prior to 1970 (50 years or older). City staff conducted a visual housing conditions survey in June 2009. To complete the survey, the City randomly selected and evaluated 200 properties and found that all but three were structurally sound. The survey was conducted through a windshield assessment that rated the physical condition of a unit. Utilizing the same methodology, in 2019 staff re-reviewed the same 200 properties from the 2009 survey. Two properties were found not to be structurally sound yet required only minor repairs. Based upon observations and experiences of the code enforcement and planning staff, the City estimates that in 2020, fewer than 20 housing units may be considered to be in severe need of replacement or substantial rehabilitation due to housing conditions. Table D.16: Housing Units by Age Year Built Units Percent Built 2014 or later 123 1% Built 2010 to 2013 245 2% Built 2000 to 2009 1,945 16% Built 1990 to 1999 1,557 13% Built 1980 to 1989 2,272 19% Built 1970 to 1979 3,067 26% Built 1960 to 1969 1,298 11% Built 1950 to 1959 861 7% Built 1940 to 1949 312 3% Built 1939 or earlier 349 3% Total 12,029 100% Source: U.S. Census, 2018 ACS (5-year estimates) 4. Housing Cost and Affordability Housing Costs The median sale price of all homes (single-family units and condominium units) sold in Atascadero was $452,500 in 2020, according to CoreLogic. CoreLogic data combine sales activity for single-family units and condominium units. The median sales prices in 2020 was 13 percent lower than the previous year. Zillow.com provides estimates for single-family units and condominium units separately and its data shows a median sales price of $516,000 for single-family homes and $490,000 for condominiums. Zillow.com data contradicts the CoreLogic data in that it shows increasing median sales values even as CoreLogic shows a median 2020 sales prices lower than the previous year. Even though the sales price trend contradicts CoreLogic data, the Zillow.com data can be used to compare median home prices in Atascadero and neighboring cities from 2015 to 2020. Median home sales prices in Atascadero are shown to be lower than neighboring cities and the County. 122 Atascadero Housing Element D: Needs Assessment| 15 Figure D.1: Median Home Prices 2015-2020 Source: Zillow.com Home Prices and Home Values, accessed March 3, 2020 According to the U.S. Census 2018 ACS 5-year estimates, the median rent in Atascadero was $1,337 per month. The median rents in Atascadero are lower than the County median rents as estimated by HUD 50th Percentile Rent Estimates. Table D.17: Median Rents Number of Bedrooms City of Atascadero Median Gross Rent San Luis Obispo-Paso Robles-Arroyo Grande, CA MSA 50 percentile rents HUD No bedroom $872 $1,243 1 bedroom $955 $1,374 2 bedrooms $1,279 $1,786 3 bedrooms $1,813 $2,576 4 bedrooms $2,128 $3,136 Median Rent $1,337 $1,385 Sources: U.S. Census, 2018 ACS (5-year estimates); U.S. Department of Housing and Urban Development 50th Percentile Rent Estimates, 2020 Housing Affordability Housing affordability in Atascadero can be inferred by comparing the cost of renting or owning a home with the income levels of households of different sizes. Table D.18 shows the annual income ranges for extremely low-, very low-, low-, and moderate-income households and the maximum affordable monthly rental payment based on 30 to 35 percent of gross household income as affordable housing costs (depending on tenure and income level as defined by HUD). The table also displays the maximum affordable home sale or rental price based on income category and unit size. 123 Atascadero Housing Element 16 | D: Needs Assessment Homes priced at the 2020 median sales prices of $452,500 for Atascadero are affordable only to households in the upper end of the moderate-income range. Thus, home ownership is out of range for many moderate and all low-, very low- and extremely low-income households. Average rents are affordable for moderate-income households but are unaffordable without overpayment or overcrowding for households earning at the extremely low-, very low-, and low-income levels. Table D.18: Affordable Housing Costs by Household Size and Tenure, 2019 Income Group Annual Income Limits Renter Owner Home (purchase price) Rental (per month) Extremely Low (0-30% AMI) 1-Person $18,900 $473 $473 $55,624 $334 2-Person $21,600 $540 $540 $58,882 $361 3-Person $24,300 $608 $608 $50,503 $339 4-Person $26,950 $674 $674 $62,838 $405 5-Person $30,170 $754 $754 $62,931 $421 Very Low (30-50% AMI) 1-Person $31,500 $788 $788 $114,273 $649 2-Person $36,000 $900 $900 $125,909 $721 3-Person $40,500 $1,013 $1,013 $125,909 $744 4-Person $44,950 $1,124 $1,124 $146,623 $855 5-Person $48,550 $1,214 $1,214 $148,485 $881 Low (50-80% AMI) 1-Person $50,350 $1,259 $1,259 $202,014 $1,120 2-Person $57,550 $1,439 $1,439 $226,218 $1,260 3-Person $64,750 $1,619 $1,619 $238,786 $1,350 4-Person $71,900 $1,798 $1,798 $272,067 $1,529 5-Person $77,700 $1,943 $1,943 $284,169 $1,610 Moderate Income (80-120% AMI) 1-Person $73,500 $1,838 $2,144 $366,790 $1,699 2-Person $84,000 $2,100 $2,450 $414,501 $1,921 3-Person $94,500 $2,363 $2,756 $450,574 $2,094 4-Person $105,000 $2,625 $3,063 $507,594 $2,356 5-Person $113,400 $2,835 $3,308 $538,315 $2,502 Assumptions: California Department of Housing and Community Development 2019 income limits; 30 - 35% gross household income as affordable housing costs (depending on tenure and income level); 20% of monthly affordable cost for taxes and insurance; 10% down-payment, 4% interest rate for a 30-year fixed rate mortgage loan; utilities based on Housing Authority of the City of San Luis Obispo 2019 Utility Allowance for Atascadero. Sources: California Department of Housing and Community Development, 2019; Housing Authority of the of the City of San Luis Obispo, 2019; MIG, 2020. 124 Atascadero Housing Element D: Needs Assessment| 17 5. Housing Problems Overcrowding Overcrowding is defined as more than one person per room, not including kitchens and bathrooms. Overcrowding can occur when housing costs are high relative to income where families must double up or reside in smaller units, which tend to be more affordable, to devote income to other basic living needs. This is often a problem for large families but can also occur in smaller households when income is too low to afford adequate housing. Overcrowding also tends to result in accelerated deterioration of homes, a shortage of off-street parking, increased strain on public infrastructure, and additional traffic congestion. As shown in Table D.19, in 2018, one percent of owner-occupied households in Atascadero were overcrowded and three percent of renter-occupied households were overcrowded, of these less than one percent was extremely overcrowded. Table D.19: Overcrowding by Tenure, 2018 Owner-Occupied Units Renter-Occupied Units All Housing Units Housing Units % of all Housing Units Housing Units % of all Housing Units Housing Units % of all Housing Units Overcrowded (1-1.5 persons/room) 69 1% 115 3% 184 2% Severely Overcrowded (>1.5 persons/room) 8 0.1% 32 1% 40 0.3% Total Overcrowded (>1 persons/room) 77 1% 147 3% 224 2% Source: U.S. Census Bureau, ACS 5-Year Estimates 2018 Overpayment High housing costs can cause households to spend a disproportionate percentage of their income on housing. This may result in payment problems, deferred maintenance, or overcrowding. According to federal government standards, paying over 30 percent of income for housing costs is considered to be cost-burdened, and spending more than 50 percent of household income is extremely cost burdened. In Atascadero, a total of 3,925 households overpay for housing. These households are detailed in the following two tables. In Atascadero, overpayment is particularly problematic for renters. Table D.20 shows that one-quarter of all Atascadero renter units pay between 30 and 50 percent of household income on rent, and an additional 15 percent of renters pay more than half of their household income on rent. Overall, 40 percent of renter households (1,738 households) overpay (greater than 30% of income) on housing. 125 Atascadero Housing Element 18 | D: Needs Assessment Table D.20: Gross Rent as a Percent of Income, 2018 Percent of Income Spent on Rent Renter-Occupied Units Percent of All Renter- Occupied Units Less than 30% 2,346 56% 30% to 50% 1,179 28% More than 50% 574 14% All Renter-Occupied Units 4,224* 100% Source: U.S. Census Bureau, ACS 5-Year Estimates 2018 *Total does not equate; 125 units not computed. Among homeowners, 37 percent of owners with a mortgage and 10 percent of owners without a mortgage were overpaying for housing. Overall, 30 percent of owner-occupied units (2,187 households) were overpaying for housing. See Table D.21 for monthly housing costs as a percentage of household income for homeowners. Table D.21: Owner Costs as a Percent of Income, 2018 Percent of Income Spent on Monthly Owner Costs Units with a Mortgage Units without a Mortgage All Owner- Occupied Units Units Percent Units Percent Units Percent Less than 30% 3,384 63% 1,760 90% 5,144 70% 30% to 50% 1,160 22% 93 5% 1,253 17% More than 50% 8,30 15% 104 5% 934 13% Total Units 5,374 100% 1,957 100% 7,331 100% Source: U.S. Census Bureau, ACS 5-Year Estimates 2018 Low- and Extremely Low-Income Housing Needs Lower-income households (earning 80 percent or less of the area’s median household income) generally have higher incidence of housing problems and overpayment. Table D.22 shows low, very-low, and extremely low-income (ELI) households in Atascadero with housing problems, as well as those overpaying for housing. In total, 2,635 lower-income households (1,525 renter and 1,110 owner households) overpay for housing.  Extremely Low Income (up to 30 percent of AMI): Of the 11,250 households in the City, 1,385 households (12.3%) have household incomes less than 30 percent of median income. Owner households in this category experience the highest level of cost burden and housing problems compared with other lower income households.  Very Low Income (31-50 percent of AMI): Very low-income households are cost burdened, with substantial majorities of renters and owners spending greater than 30 percent of household 126 Atascadero Housing Element D: Needs Assessment| 19 income on housing costs. Renters in this category experience the highest level of cost burden and housing problems compared with other lower-income households.  Low Income (51-80 percent of AMI): The difference between the proportion of owner and renter low income households experiencing cost burden and housing problems is the largest compared with other lower-income categories. Table D.22: Housing Problems for All Lower Income Households Renters Owners Total Households (% of all HH) Housing Income <= 30 Percent MFI (Extremely Low Income) 805 580 1,385 (12.3%) % With any Housing Problems 68.9% 81.9% 74.4% % With Housing Cost Burden > 30% 68.3% 81.9% 74.0% % With Housing Cost Burden > 50% 55.3% 75.9% 63.9% Household Income >30% to <= 50% MFI (Very Low Income) 525 360 885 (7.9%) % With any housing problems 69.5% 56.9% 64.4% % With Housing cost burden > 30% 69.5% 52. 8% 62.7% Household income > 50 to <= 80% MFI (Low Income) 975 895 1,870 (16.6%) % With any housing problems 66.7% 49.7% 58.6% % With Housing cost burden > 30% 62.6% 49.7% 56.4% Source: U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2012-2016 6. Housing at Risk of Converting from Affordable to Market Rate Housing Housing Element law requires jurisdictions to provide an analysis and program for preserving affordability of assisted housing developments for the next 10 years (2021-2031). Based on City records and information from the California Housing Partnership Corporation, in the next 10 years (2013-2023), no assisted housing developments in Atascadero are at risk of losing affordability. A portion of the City’s affordable housing stock was created via the City’s inclusionary housing policy. This policy was adopted in 2003 and stipulates a 30-year affordability term. As such, the affordability covenants do not expire within the next 10 years. Another subset of affordable units was developed by non-profit, affordable housing developers, who do not intend to convert their units to market-rate apartments. Based on information from the California Housing Partnership Corporation, in the next 10 years no assisted housing developments subject in Atascadero are at risk of losing affordability. One development in City records has an expiring affordability covenant in 2029 (Atascadero Gardens at 7480 Santa Ysabel) but is not considered at risk as it was purchased in 1999 by People’s Self Help Housing to preserve its affordability. People’s Self Help Housing is an affordable housing developer and service provider including 127 Atascadero Housing Element 20 | D: Needs Assessment site-based services for low-income families, individuals, farmworkers, veterans, the homeless, and those living with disabilities. Pursuant to Government Code Section 65863.11, the state maintains a list of “Entities Interested in Participating in California's First Right of Refusal Program” at https://www.hcd.ca.gov/policy- research/docs/HPD-00-01.xlsx. This list includes two entities interested in properties in San Luis Obispo County and several entities interested in properties located in any county. It is worthy to note that City staff has contributed time in past years to assisting owners of assisted housing to negotiate with lenders such as the U.S. Department of Agriculture to extend their subsidies. In the event that a development becomes at risk of conversion to market-rate housing, the City will maintain contact with local organizations and housing providers who may have an interest in acquiring at-risk units and will assist other organizations in applying for funding to acquire at-risk units. 128 Atascadero Housing Element E: Constraints| 1 E. Constraints on Housing Production Government policies and regulations impact the price and availability of housing and in particular, the provision of affordable housing. Constraints include residential development standards, fees, and permitting procedures. Providing infrastructure and services also increases the cost of producing housing. This Chapter addresses potential governmental and nongovernmental constraints and focuses on mitigation options available to the City. 1. Governmental Constraints Although local governments have little influence on such market factors as interest rates and availability of funding for development, their policies and regulations can affect both the amount of residential development that occurs and the affordability of housing. Since governmental actions can constrain development and affordability of housing, State law requires the Housing Element to “address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing.” Land Use Controls The City’s primary policies and regulations that affect residential development and housing affordability include Title 9 (the City’s Planning and Zoning Regulations), Title 11 (the City’s Subdivision Regulations), the General Plan, the Atascadero Downtown Revitalization Plan, the Appearance Review Manual, development processing procedures and fees, on and off-site improvement requirements, and building codes. In addition to a review of these policies and regulations, an analysis of governmental constraints on housing production for persons with disabilities is included in this section. Planning and Zoning Regulations Title 9, the City’s Planning and Zoning Regulations, allows residential development in various residential and non-residential zones. Several of these zones only allow residential use in the form of a caretaker unit and that is indicated in the descriptions below. Residential density in Atascadero ranges from less than 1 units per acre up to 24 units per acre. Title 9 does not include specific development standards for the Rural Residential zone that is identified on the Zoning Map. Program 3.F is included in the Housing Element and specifies that as part of a comprehensive General Plan update, the Rural Residential zone will be codified into Title 9 and will include standards that distinguish it from the Residential Suburban zone.  Agriculture (A) Zone. This zone is established to protect, preserve, and encourage agriculture on suitable land. Agriculture related residential uses are permitted including single-family dwellings, primary family housing, and farm labor quarters. The A zone corresponds to the Agriculture (AG) land use designation of the General Plan.  Rural Residential (RR) Zone. This zone is established for large lot single-family residential uses. The General Plan details a maximum allowable density of 0.4 units per acre. The RR zone corresponds to the Rural Residential (RR), Rural Estate (RE), Suburban Estate (SE), and Agriculture (AG) land use designations of the General Plan.  Residential Suburban (RS) Zone. This zone is established for large lot single-family residential uses. Second units are permitted by right in the RS zone, subject to specific development 129 Atascadero Housing Element 2 | E: Constraints standards identified in Chapter 5 of Title 9. The maximum allowable density is 0.4 units per acre. The RS zone corresponds to the Rural Residential (RR), Rural Estate (RE), Suburban Estate (SE), and Agriculture (AG) land use designations of the General Plan.  Residential Single-Family (RSF) Zone. This zone is established to provide for single-family residential areas within the urban service line. Second units are permitted by right in the RSF zone, subject to specific development standards identified in Chapter 5 of Title 9. The RSF designation is divided into three categories based on minimum lot sizes, RSF-X, RSF-Y, RSF-Z and density ranges from 0.5 to 2.0 units per acre. Density may be increased to four units per acre with a Planned Development in the RSF-X zone. The RSF zone corresponds to the Single-Family Residential (SFR) land use designation of the General Plan, which includes the sub-land use designations SFR-Z, SFR- Y, and SFR-X.  Limited Single-Family (LSF) Zone. This zone is established for single-family residential where raising of farm animals is not allowed. Second units are permitted by right in the LSF zone, subject to specific development standards identified in Chapter 5 of Title 9. The LSF designation is divided into three categories based on the minimum lot size, LSF-X, LSF-Y, LSF-Z, and density ranges from 0.5 to 2.0 units per acre. The LSF zone corresponds to the Single-Family Residential (SFR) land use designation of the General Plan, which includes the sub-land use designations SFR-Z, SFR-Y, and SFR-X.  Residential Multiple Family (RMF) Zone. This zone is established for apartment, condominium, and townhouse development. The maximum allowable density for areas designated Low Density Multiple Family Residential (RMF-10) is 10 units per acre, for areas designated High Density Multiple Family Residential (RMF-24) is 24 units per acre, and for hillside areas the density ranges from 1 - 20 units per acre depending on average slope (density exceptions exist for group quarters and nursing facilities). The RMF zone corresponds to the Medium-Density Residential (MDR) and High-Density Residential (HDR) land use designations of the General Plan.  Downtown Commercial (DC) Zoning District. This zone is established to enhance the economic viability and pedestrian-oriented character of downtown. Residential uses are permitted on upper floors in the DC zoning district. Home occupations and live/work projects are also encouraged in the DC zoning district. The maximum allowable density is 20 units per acre. The DC zone corresponds to the Downtown (D) land use designation of the General Plan.  Downtown Office (DO) Zoning District. This zone is established for professional and other office uses close to the services provided in the DC zoning district. Residential uses are permitted on upper floors in the DO zoning district. The maximum allowable density is 20 units per acre. The DO zoning district corresponds to the Downtown (D) land use designation of the General Plan.  Commercial Neighborhood (CN) Zone. This zone is established to provide for small-scale retail shopping and personal service facilities at the neighborhood level. The Commercial Neighborhood Zone is situated and designed to serve the limited shopping and service needs of the immediately surrounding residential area. It allows mixed-use development with residential up to 24 units per acre with a conditional use permit. Caretaker residences are also permitted conditionally. The CN zone corresponds to the General Commercial (GC) and Mixed-Use (MU) land use designations of the General Plan. 130 Atascadero Housing Element E: Constraints| 3  Commercial Professional (CP) Zone. This zone is established for limited retail shopping and personal service facilities. It allows mixed-use with residential up to 24 units per acre with a conditional use permit. Caretaker residences are also permitted conditionally. The CP zone corresponds to the General Commercial (GC) and Mixed-Use (MU) land use designations of the General Plan.  Commercial Retail (CR) Zone. This zone is established for a wide range of commercial uses to accommodate retail and service needs; however, it does conditionally permit residential care facilities for the elderly (RCFE), caretaker residences, mixed use with residential up to 24 units per acre, multi-family dwellings on the second floor or above or within an existing residential structure of historical significance, and single-room occupancy units. The CR zone corresponds to the General Commercial (GC) and Mixed-Use (MU) land use designations of the General Plan.  Commercial Service (CS) Zone. This zone is established for light manufacturing and large lot service commercial, however it does conditionally permit caretaker residences or multifamily dwellings within an existing structure of historical significance. The CS zone corresponds to the Service Commercial (SC) land use designation of the General Plan.  Commercial Tourism (CT) Zone. This zone is established for limited commercial uses for Highway 101 travelers; however, it does conditionally permit caretaker residences. The CT zone corresponds to the General Commercial (GC) land use designation of the General Plan.  Commercial Park (CPK) Zone. This zone is established for commercial park uses that require larger parcels and planned commercial developments; however, it does conditionally permit Residential Care for the Elderly Assisted Living. The CPK zone corresponds to the Commercial Park (CPK) land use designation.  Industrial Park (IP) Zone. This zone is established for light manufacturing and large lot service commercial; however, it does conditionally permit caretaker residences. The IP zone corresponds to the Industrial (IND) land use designation of the General Plan.  Industrial (I) Zone. This zone is established for heavy manufacturing and industrial uses; however, it does conditionally permit caretaker residences. The I zone corresponds to the Industrial (IND) land use designation of the General Plan.  Recreation (L) Zone. This zone provides suitable locations for recreational facilities; however, it does conditionally permit caretaker residences. The L zone corresponds to the RR, RE, SE, SFR, MDR, HDR, Public Recreation (REC), Public Facilities (PUB), and Open Space (OS) land use designation of the General Plan.  Special Recreation (LS) Zone. This zone provides suitable locations for recreational facilities on land in private ownership. This zone also provides for residential uses where intensive recreational activity may not be appropriate. The maximum allowable density for residential is 0.7 unit per acre (if sewer not available) or one unit per acre (if sewer service exists). The LS zone corresponds to the Commercial Recreational (CREC) land use designation of the General Plan.  Public (P) Zone. This zone provides suitable locations for public and quasi-public facilities; however, it does conditionally permit single-family, residential care, and caretaker residences. The maximum allowable density for residential is 0.4 unit per acre. 131 Atascadero Housing Element 4 | E: Constraints  Planned Development (PD) Overlays. The City has established 34 overlays (PD 1 - 12 and 14 - 35) to allow for special use standards that differ from those established by the underlying zone. The maximum allowable density is 24 units per acre. Planned Development Overlays are typically used to allow for individual lot ownership units in multi-family zones and clustered residential development in rural areas to achieve minimal environmental impacts and reduced infrastructure costs.  Emergency Shelter (ES) Overlay. The City established an emergency shelter overlay zone in 2013 which allows emergency shelters by right on specific sites, subject to operational and development standards. In 2013, one ES site was designated at 6370 Atascadero Avenue for the El Camino Homeless Organization (ECHO) shelter. Table E.1 summarizes the General Plan land use designations and the zoning districts that either allow by right or conditionally permit residential development. In 2013, the City amended the Zoning Regulations to allow residential densities up to 24 units per acre in the RMF-24 Zone and up to 20 units per acre in the DC and DO zones. Table E.1: General Plan Land Use Designations and Zoning Districts General Plan Land Use Designation Density Corresponding Zoning Districts RR/RE/SE 0.1-0.4unit/acre gross1 RR, RS, P, L SFR-Z 1.0 unit/acre gross1 RSF-Z, LSF-Z, P, L SFR-Y 2.0 unit/acre gross RSF-Y, LSF-Y, P, L SFR-X 4.0 unit/acre net2 RSF-X, LSF-X, P, L MDR 10 unit/acre net RMF-10, P, L HDR 24 unit/acre net RMF-24 P, L GC 24 unit/acre net CN, CP, CR, CT SC (0.4 FAR) CS D 20 unit/acre net DC, DO MU 24 unit/acre net CN, CR, CP: (MU/PD overlay) CREC 10 unit/acre net LS, P CPK (0.4 FAR) CPK IND (0.4 FAR) I, IP AG 0.1-0.4 unit/acre gross1 RR, RS, A REC -- L, P PUB (0.4 FAR) L, P Notes: 1. Density is adjusted by performance standards in this land use designation. The maximum density may be lower based on the application of performance standards. 2. The maximum density sets a limit to the number of units that may be developed in each land use designation. The General Plan also sets minimum lots size areas that are allowed through the subdivision process consistent with the "Elbow Room" principle. The minimum lot sizes are more restrictive than the maximum densities to reflect historic small lot development densities and to allow for new planned development projects that incorporate smaller lot sizes with innovative design concepts. Table E.2 summarizes the housing types permitted by zone. Each use is designated by a letter denoting whether the use is allowed (A) or conditionally permitted (CUP). 132 Atascadero Housing Element E: Constraints| 5 Table E.2: Zoning District’s Permitted Land Uses Land Uses A RS RSF LSF RMF DC DO CN CP CR CS CT CPK IP I L LS P Single-family Dwelling7 -- A A A A A2 A2 -- -- -- -- -- -- -- -- -- A CUP Multi-Family Dwelling7 -- -- -- -- A2 A2 A2 CUP6 CUP6 CUP6 CUP6 -- -- -- -- -- -- -- Live/Work Unit -- -- -- -- -- A3 -- -- -- -- -- -- -- -- -- -- -- -- Accessory Dwelling Units -- A A A A -- -- -- -- -- -- -- -- -- -- -- -- -- Temporary dwelling -- A A A A -- -- -- -- -- -- -- -- -- -- -- A -- Mobile/Manufactured Home A A A A A -- -- -- -- -- -- -- -- -- -- -- -- -- Mobile home developments -- CUP CUP CUP CUP -- -- -- -- -- -- -- -- -- -- -- -- -- Single Room Occupancy -- -- -- -- -- -- -- -- -- CUP -- -- -- -- -- -- -- -- Transitional/Supportive Housing7 -- A A A A A2,3 A2 CUP6 CUP6 CUP6 CUP6 -- -- -- -- -- A CUP Agriculture Employee Housing A -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Caretaker (Employee) Unit -- -- -- -- -- -- -- -- CUP CUP CUP -- -- -- -- CUP -- -- Residential care, ≤ 6 clients -- A A A A A3 A3 -- -- -- -- -- -- -- -- -- -- CUP Residential care, > 6 clients -- CUP CUP CUP CUP -- -- -- -- -- -- -- -- -- -- -- -- CUP Residential Care for the Elderly Assisted Living, ≤ 6 clients, Assisted Living -- A A A A A3 A3 -- -- CUP -- -- -- -- -- -- -- -- Residential Care for the Elderly Assisted Living, > 6 clients, Assisted Living -- CUP CUP CUP CUP -- -- -- -- CUP -- -- -- -- -- -- -- -- RCFE – Independent Living Center/ Senior Apartments -- -- -- -- CUP -- -- CUP -- CUP CUP -- -- -- -- -- -- -- Organizational houses (Membership houses) -- CUP CUP CUP CUP -- -- -- -- -- -- -- -- -- -- -- -- -- Medical extended care5, ≤ 6 clients -- A A A CUP -- -- CUP CUP CUP CUP CUP CUP -- -- -- -- CUP Medical extended care5, > 6 clients -- CUP CUP CUP CUP -- -- -- -- CUP -- -- -- -- -- -- -- CUP Age restricted housing -- -- -- -- -- CUP -- -- -- -- -- -- -- -- -- -- -- -- Notes: A. This table is for reference only, refer to Zoning Regulations for the latest official zoning designations. Zoning Regulations may be amended independently of this table. A: Allowed Use, CUP: Conditional Use Permit, -- Not Permitted. 1. RSF-Y only, see Section 9.6106 2. RMF Zone – CUP required for projects over 12 units, excluding RMF-24 properties identified in Appendix I. RMF-24 properties identified in Appendix I are allowed by right, not subject to a CUP or specific plan. DC and DO Zones - Residential uses allowed only on second and third floor, except sites north of Olmeda Avenue. If project is required to provide a unit in compliance with Americans with Disabilities Act, the handicapped accessible unit may be located on a first floor. A first floor unit shall be located in a non-storefront location within a tenant space. 3. Permitted use if the residential quarters are located on the second or third floors, or within an existing residential structure of historical significance. If project is required to provide a unit in compliance with Americans with Disabilities Act, the handicapped accessible unit may be located on a first floor. A first floor unit shall be located in a non-storefront location within a tenant space. 4. Conditional Use Permit required if the residential quarters are located on the first floor unless a project is required to provide a unit in compliance with the Americans with Disabilities Act. 5. A skilled nursing facility (also referred to as medical extended care) is a board and care home for residents, where no medical care is provided, and is subject to all applicable standards for multi-family dwellings. 6. Multi-family dwellings permitted when located on the second floor or above, or within an existing residential structure of historical significance. 7. Transitional and supportive housing are considered single-family or multi-family uses under Title 9 and are permitted in all residential zones and held to the same development standards as other residential uses of the same type in the same zone. 133 Atascadero Housing Element 6 | E: Constraints Table E.3 identifies development standards for the residential zones, TableE.4 shows the development standards in the commercial zones, and Table E.5 indicates the development standards in the Downtown Zones. Minimum parcel size and setback requirements in Atascadero are not unusually strict and are not considered a constraint to the development of affordable housing. The height limit in residential zones has proven not to impede development or discourage density. The Hidden Oaks Apartments and Southside Villas condominium projects, 90 and 86 units, respectively, achieved densities over 20 units per acre while meeting the 30-foot, two-story height restriction. The Emerald Ridge condominium development, approved in 2004, received a height exception as part of their conditional use permit and achieved a density of 27.7 units per acre with 208 units on 7.5 acres with approval of a density bonus for high quality architectural design. Program 3.D proposes to amend the Zoning Regulations to remove the number of stories limit in the RMF Zone. Table E.3: Residential Zones Development Standards Development Standard Zone RS RSF LSF RMF X Y Z X Y Z Min lot size (acres)1,2 2.5 - 10 0.5 1 1.5 -2.5 0.5 1 1.5 - 2.5 .53 Max Height (feet) 30 ft. max. 30 ft. (2 stories max.) Setbacks4 (feet): Front 25 ft. min - exceptions for shallow lots, flag lots, sloping lots, and variable block. 15 ft Side 5 ft. min - exceptions for corner lots, key lots, small corner lots, accessory buildings, common wall development5, zero lot line development6, access easements. Rear Principal residential building - 10 ft. min Accessory building - 3 ft. min if under 12 ft in height and under 120 sf Interior Principal residential buildings - 10 ft Accessory building - 10 ft (some code exceptions apply) Notes: A. For reference only, refer to Zoning Regulations for the latest official development standards. Zoning Regulations may be amended independently of this table. 1. Depending upon conformance with performance standards set in each zone. 2. Smaller lot sizes allowed with a Planned Development. 3. Smaller lot sizes allowed for PD projects, including mobile home developments, provided that the overall density within the project conforms with Section 9-3.17 (RMF Zone - Density). 4. Except for 2nd story dwellings over commercial and industrial uses. 5. Two dwelling units, and/or their accessory garages constructed on adjoining lots with minimum building code separation. 6. A group of dwelling units on adjoining lots may be established so that all units about 1 side property line. Table E.4: Commercial Zones (Allowing Residential Development) Development Standards Development Standard CN CP CR CS Min lot size (acres) 0.51 0.51 0.51 1.01 Density (units per acre) 24 24 24 Varies, multifamily dwellings allowed only within an existing structure of historical significance 134 Atascadero Housing Element E: Constraints| 7 Table E.4: Commercial Zones (Allowing Residential Development) Development Standards Development Standard CN CP CR CS Setbacks (feet) Front 02,3 02,3 02,3 02,3 Sides (each) 02 02 02 02 Rear 04 04 04 04 Height limit 35 ft 35 ft 35 ft 35 ft Notes: 1: Smaller lot sizes may be allowed for planned commercial and industrial developments where the Planning Commission determines that such smaller lot sizes will not be detrimental to the purpose and intent of the Zone. 2. Ground floor residential uses are subject to the residential setback requirements. 3. Where a commercial or industrial zone has a front setback, including a double frontage setback, on a street where more than 50% of the lots in the same block are zoned for residential use, the front setback shall be 25 feet, except that a one- story building or parking may encroach into one-half the required front setback depth. 4. Uses adjacent to an alley: a minimum of 5 feet, except where the alley provides vehicular access to the interior of the building, in which case the setback shall be 10 feet; or residential use zone: no rear setback is required for buildings or portions of buildings which do not exceed 12 feet in height within 10 feet of the rear property line. The rear setback shall be a minimum of 10 feet for buildings or portions of buildings which exceed 12 feet in height. Table E.5: Downtown Zones Development Standards 1 DC DO Min lot size No minimum Density 20 du/acre 20 du/acre Setbacks Minimum and maximum setbacks required. See Section 9-4.103 for setback requirement, allowed projections into setbacks, and exceptions to setbacks. Front None allowed, except for building insets designed to accommodate outdoor eating and seating areas, and except for East and West Mall between El Camino Real and Palma Avenue, where a minimum of 20 feet is required. As required by Section 9-4.106 when adjacent to a residential zone, none required otherwise. Sides (each) None required Rear None required Creek 20 ft. Height limit 45 ft. not to exceed 3 stories; 18 ft. on the west side of El Camino Real2 25 ft Off-street parking None required, except as required by Section 9-4.114 for hotels, motels, residential uses, offices, government offices and facilities, and health care services, and for all development east of Atascadero Creek. As required by Sections 9-4.114 et seq. Notes: 1. For reference only, refer to Zoning Regulations for the latest official development standards. Zoning Regulations may be amended independently of this table. 2. Between Atascadero Creek and lot line common to Lots 19 and 20, Block H-B, Atascadero Colony Map. 135 Atascadero Housing Element 8 | E: Constraints Historic Preservation To promote the conservation, preservation, protection, and enhancement of Atascadero’s historical and architecturally significant structures, the City adopted a Historic Site Overlay (HS) zone. The standards are intended to protect historic structures and sites by requiring new uses and alterations to existing uses to be designed with consideration for preserving and protecting the historic resource. Given the quality of Atascadero’s historical and architecturally significant structures—and the contribution of these structures to the image and quality of life in Atascadero—the historic preservation policies and regulations are reasonable and appropriate and do not pose an unreasonable constraint to residential development in the City of Atascadero. No sites identified in the vacant land inventory are subject to the HS overlay. Sensitive Resources The City adopted a Sensitive Resource Overlay (SR) zone to protect areas with special environmental resources and areas containing unique or endangered vegetation or habitat. The purpose of these standards is to require that proposed uses be designed with consideration of the identified sensitive resources, and the need for their protection. Development on properties within an SR overlay zone require additional measures to ensure environmental protection, which can add to the cost of development. It is in the best interest of the community, and also is mandated by state and federal laws to protect sensitive environmental resources. The City’s regulations do not pose an unreasonable constraint to residential development in the City. No sites identified in the vacant land inventory are subject to the SR overlay. Multi-Family Housing Multi-family development is allowed by-right in the RMF zone and in the two Downtown zones. Multi- family development is also conditionally allowed in several commercial zones. The Zoning Regulations requires a CUP for residential projects in the RMF zone over 11 units, excluding RMF-24 properties identified in the Housing Element Sites Inventory. RMF-24 properties identified in the Housing Element Sites Inventory are allowed by right, not subject to a CUP or specific plan. Program 3.C has been included in this Housing Element to provide for staff to review the CUP requirement for multi-family housing projects and consider removing the CUP requirement once objective design standards have been adopted. Mobile and Manufactured Homes State law requires that mobile and manufactured homes be allowed in residential zones. These units cannot be regulated by any planning fees or review processes not applicable to conventional single-family dwellings. However, the architectural design of manufactured or mobile homes can be regulated by the City. Under the City’s Zoning Regulations, mobile home developments (mobile home parks) are permitted with approval of a CUP in all residential zones. Individual mobile home dwellings are permitted by right in all residential zones and in the Agriculture zone. The City’s Zoning Regulations address manufactured homes in Section 9-6.142. Seventeen modular homes have been installed as permanent residences since the 2014 Housing Element update. The City updated definitions for consistency with state law and to clarify that the terms “mobile home” and “manufactured home” are essentially the same and should be considered a single-family dwelling and permitted in all zones that allow single-family housing. Manufactured housing can be subject to design review. 136 Atascadero Housing Element E: Constraints| 9 Mixed-Use Development Atascadero encourages mixed-use development in the downtown districts (DC and DO) and in several commercial districts. The Downtown zoning districts are intended to develop an attractive, pedestrian- oriented, and economically successful downtown area by providing for a mixture of commercial, service, and residential land uses. The development of mixed-use projects provides more housing opportunities by permitting residential uses on the upper floors. Mixed-use development also enhances economic viability, pedestrian-oriented character, and the overall downtown environment. In 2013, the City amended the Zoning Regulations to allow vertical mixed-use with a CUP in General Commercial land use designations. Horizontal mixed-use requires a PD overlay. This represents an easing from previous requirements for horizontal or vertical mixed-use. No CUP is required for mixed-use in the Downtown zones. As part of implementation of Program 2.F, the City will amend the Zoning Regulations to adopt mixed-use development standards that facilitate quality development and that strike a balance between the community’s need for housing and the City’s need to preserve viable commercial land uses. Accessory Dwelling Units Accessory dwelling units can be an important source of affordable housing since they are smaller than primary units and do not have direct land acquisition costs. Supporting the development of accessory dwelling units expands housing opportunities for very low-, low-, and moderate-income households by increasing the number of rental units available within existing neighborhoods. Accessory dwelling units are referred to in the Atascadero Zoning Regulations as “secondary residential units,” which are residential occupancy constructions (R) with a kitchen and full bathroom that is accessory to the primary unit and intended for permanent occupancy by a second household. Second residential units provide quarters for independent living areas, sleeping, cooking, and sanitation facilities. Second residential units are permitted by right in the single-family residential zones (RS, RSF, LSF). Second units are also allowed in single-family planned development overlay districts only when consistent with an approved Master Plan of Development. The City last updated its ADU ordinance in 2010. The State Legislature has passed numerous changes to the ADU requirements (previously known as second units) to promote the development of ADUs. These include allowing ADUs to be built concurrently with a single-family home, opening areas where ADUs can be built to include all zoning districts that allow single-family uses, modifying fees from utilities such as special districts and water corporations, and reducing parking requirements. In Atascadero, accessory dwelling units are permitted as an accessory use to single-unit dwellings, consistent with the Government Code Section 65852.2, and are subject to all development standards of the underlying zoning district and/or planned development overlay districts, with a few minor exceptions:  Floor Area. The total floor area shall not exceed 1,200 square feet.  Private Open Space Requirement. A second unit shall have a minimum private open space area of 250 square feet. No portion of an open space area shall have a dimension of less than 10 feet in width.  Attached Second Units. If the second unit is attached to the primary dwelling, each shall be served by separate outside entrances.  Second units are permitted on lots one net acre or greater in size if on a private septic system. On lots less than 1-acre net, dwelling units must be connected to City sewer. 137 Atascadero Housing Element 10 | E: Constraints AB 2299 provides that any existing ADU ordinance that does not meet the new requirements is null and void as of January 1, 2017. In such cases, a jurisdiction must approve accessory dwelling units based on Government Code Section 65852.2 until the jurisdiction adopts a compliant ordinance. Jurisdictions are not required to create ordinances for ADUs; however, any jurisdiction that does adopt an ADU ordinance, must submit the ordinance to HCD within 60 days. Program 1.D in the Housing Plan commits the City to adopting an updated ADU ordinance to comply with Government Code Section 65852.2. Through adoption of Resolution 2020-066, Atascadero complies with Senate Bill 13 (SB 13) by exempting and/or reducing development impact fees to spur the development of ADUs as a form of affordable housing. ADUs less than 750 square feet in size are exempt from development impact fees. ADUs between 750 square feet and 1200 square feet in size are charged proportional impact fees based on the City’s adopted fee structure for primary residential units (derived from the median residence size [1,666 square feet] divided by the existing impact fee). Residential Care Facilities Under California law, licensed facilities serving six persons or fewer receive special land use protections. California requires that many types of licensed facilities serving six persons or fewer be treated for zoning purposes like single-family homes. Except in extraordinary cases in which even a single-family home requires a conditional use permit, these laws bar conditional use permits for facilities that serve six or fewer persons. No local agency can impose stricter zoning or building and safety standards or require variances on these homes than those required for homes in the same zone. Residential care facilities in Atascadero serving six or fewer residents (small) are permitted by right in all residential zones. In the DC and DO zones, residential care facilities for six or fewer persons are treated as single-family homes. Residential care facilities serving more than six residents (large) are conditionally permitted in the single- family zones and RMF zone. Residential care facilities for the elderly serving more than six residents are conditionally permitted in all residential zones and the Commercial Retail (CR) zone. Residential Care Facilities for Elderly in independent living settings are conditionally allowed in the RMF, CN, CR, and CS zones. See the section below, Housing for People with Disabilities, for additional discussion on housing for special needs. Emergency Shelters and Transitional and Supportive Housing State legislation SB 2 requires jurisdictions to permit emergency shelters without a CUP or other discretionary permits, and transitional housing and supportive housing must be considered residential uses and must only be subject to the same restrictions that apply to the same housing types in the same zone. The City has an Emergency Shelter (ES) Overlay Zone, which allows emergency shelters on a specific site subject to the development and operational standards outlined in the Zoning Regulations. The ES Overlay Zone was applied to the property where El Camino Homeless Organization (ECHO) runs and operates a homeless shelter with a capacity of 60 beds (this capacity reflects an increase in beds implemented in 2019). The shelter building is 8,418 square feet and has 60 beds. The site is 1.26 acres with an existing building coverage of approximately 6,900 square feet, representing less than 13 percent of the total site area. Parking requirements are one vehicle parking space per five beds, one bicycle space per 10 beds, and one vehicle space per employee; standards are based on facility needs and operation as determined by the operator, ECHO and may be reduced accordingly. The only additional applicable code required development standard is a minimum 10 percent landscape coverage, which is usually achieved in the setback areas and within outdoor use areas for residents. Based on estimates, there is 138 Atascadero Housing Element E: Constraints| 11 approximately 0.66 acres of area that could be devoted to shelter expansion while maintaining on-site parking and outdoor recreation areas. Structures within this zone can be up to three stories in height. ECHO Shelter on Atascadero Avenue The ECHO shelter does not typically operate at capacity and is the only permanent and year-round overnight shelter in North County. As a shelter was not a permitted use in the base zone, the ES Overlay protects the operation and establishes operational guidelines. The site of the ECHO shelter has the capacity to expand to accommodate a total capacity of 110 beds at the single ES overlay site. Program 3.G is included in the Housing Plan to Review the Emergency Shelter (ES) Overlay Zone for continued compliance with state law and to evaluate the need to expanding the ES Overlay Zone to other appropriate properties, subject to the locational and operational criteria outlined in the Zoning Regulations. Recent State Law (AB 101) requires that Low-Barrier Navigation Centers be allowed as a by right use in areas zoned for mixed-use and nonresidential zones permitting (by right or conditionally) multi-family uses. Transitional Food and Shelter operates the Atascadero Warming Center (AWC) from November 1st through April 15th when the temperature is forecast to be 40 degrees or less and/or there is a 50% chance or greater of rain. The low barrier, behaviorally based center provides meals, clothing and other services through a volunteer effort. Program 3.H is proposed to ensure that the City meets the requirements of AB 101. Transitional and supportive housing are considered single-family or multi-family uses under Title 9. Transitional and supportive housing are permitted in all residential zones and thus held to the same development standards as other residential uses of the same type in the same zone. In 2016, the City amended the Zoning Regulations to include supportive and transitional housing as a use under the single- family and multi-family dwelling definitions. Effective January 1, 2019, AB 2162 (Supportive Housing Streamlining Act) requires supportive housing to be considered a use by right in zones where multi-family and mixed-uses are permitted, including nonresidential zones permitting multi-family uses, if the proposed housing development meets specified criteria. The law prohibits the local government from imposing any minimum parking requirement for units occupied by supportive housing residents if the development is located within one-half mile of a public transit stop. AB 2162 also require local entities to streamline the approval of housing projects 139 Atascadero Housing Element 12 | E: Constraints containing a minimum amount of supportive housing by providing a ministerial approval process, removing the requirement for CEQA analysis, and removing the requirement for a CUP or other similar discretionary entitlements. Program 3.H is included to ensure the City meets the requirements of AB 2162. Housing for Agricultural Employees The Employee Housing Act (Government Code Section 17021.5 and 17021.6) requires that any employee housing occupied by six or fewer employees shall be considered a single-family structure within a residential land use and must be treated the same as a single-family dwelling of the same type in the same zone. In addition, employee housing consisting of no more than 36 beds in a group quarters, or 12 units or separate rooms or spaces designed for use by a single-family or household, must be considered an agricultural land use and be treated the same as any other agricultural activity in the same zone. The Zoning Regulations identify one agricultural zone which permits agricultural operations and agriculture employee housing by right. Single-Room Occupancy Units (SROs) Single-room occupancy hotels and/or boarding homes are collectively referred to as SROs. SRO units are one-room units intended for occupancy by a single individual. It is distinct from a studio or efficiency unit, in that a studio is a one-room unit that must contain a kitchen and bathroom. Although SRO units are not required to have a kitchen or bathroom, many SROs have one or the other. Buildings that provide SRO dwellings are permitted conditionally in the Commercial Retail (CR) zone. Program 2.I is included in the Housing Element and calls for a review and, if necessary, a revision of siting regulations for SROs. As part of the program implementation, the City will consider amending the Zoning Regulations to allow single- room occupancy units as a by-right use. Building Codes and Enforcement Building codes and site improvements can also increase the cost of developing housing, particularly affordable rental housing. The following examines the City’s building codes and site improvement standards. Atascadero implements the 2019 edition of the California Building Code and other model construction codes, with amendments adopted by the California Building Standards Commission. These model codes establish standards and require inspections at various stages of construction to ensure code compliance and minimum health and safety standards. Although these standards and the time required for inspections increase housing production costs and may impact the viability of rehabilitation of older properties, the codes are mandated for all jurisdictions in California. The City has not adopted local amendments to the model codes that increase housing costs (the Plumbing Code has been amended to address large-lot development with septic systems). Building inspectors are responsible for ensuring that proposed projects meet State and local codes. The City uses Code Enforcement staff to promote property maintenance in accordance with the City Zoning and Building ordinances and State and County Health Codes. The Code Enforcement official receives and investigates complaints regarding alleged violations of the Municipal Code such as property maintenance violations, private property parking violations, or zoning violations. Complaints can be submitted by email, fax, mail, or delivered personally at two locked box locations in the City. 140 Atascadero Housing Element E: Constraints| 13 Site Improvements The City of Atascadero, along with other agencies, requires the installation of certain on- and off-site improvements to ensure the safety and livability of residential neighborhoods. On-site improvements typically include private or shared driveways, parking areas, drainage, sections of underground pipe, swales, ponding areas, and amenities such as landscaping, fencing, open space, and park facilities. Off-site improvements typically include:  Sections of roadway, medians, bridges, sidewalks, and bicycle lanes (Minimum street width for multi-family neighborhoods is 36-feet from curb to curb, to provide adequate space for on-street parking and circulation [does not include sidewalks]. For single family neighborhoods, minimum street width is 20-feet paved with two-foot shoulders.)  Sewage collection and treatment  Water systems, including lines, storage tanks, and treatment plants (Atascadero Municipal Water Company)  Public facilities for fire, school, and recreation The costs of on- and off-site improvements are usually passed along to the homebuyer as part of the final cost of the home. The on- and off-site improvement standards imposed by the City are typical for most communities and do not pose unusual constraints for housing development. Parking Standards The City’s parking requirements are based upon unit type and size. As shown in Table E.6, parking requirements are typically two spaces per single-family residential unit. Multi-family residential units generally average 2.25 spaces per unit after accounting for guest parking. The City has several exceptions for parking. Bicycle parking may substitute parking spaces in lots with 20 or more spaces. A bicycle rack providing for at least five bicycles at a ratio of one bicycle rack for each 20 spaces is allowed. For compact car spaces, lots with 20 or more spaces may substitute compact car spaces for up to 20 percent of the total number of spaces. For motorcycle parking, lots with 20 or more spaces may replace regular spaces with motorcycle spaces at a ratio of one motorcycle space for each 20 spaces. In certain situations, parking requirements may be reduced or waived. This includes some alternative parking arrangement options:  Tandem Parking. Tandem parking permitted for single-family dwellings and individual mobilehomes upon meeting appropriate performance criteria.  Parking Districts. Parking requirements may be modified within a parking district where adequate parking is provided within the limits of the district and the parking requirements of a new use are accommodated by the parking district.  Shared Peak-Hour Parking. Where two or more uses have distinct and differing peak traffic usage periods, the required number of parking spaces may be reduced through Conditional Use Permit approval. 141 Atascadero Housing Element 14 | E: Constraints  On-Street Parking Adjustment. In the case that a new driveway eliminates on-street parking spaces, the requirement for off-street spaces may be adjusted.  Planning Commission Modification. The required parking standards may be modified through Conditional Use Permit approval by the Planning Commission. Table E.6: Parking Requirements 1 Land Use Parking requirement Single-family dwellings (including mobile homes) 2 spaces per du, except 1/du on lots < 4,000 square feet in area Multi-family dwellings (including condominiums and attached ownership dwellings) 1 bedroom unit: 1.5 spaces 2 bedroom unit: 2 spaces, each add. bedroom: 0.5 space Guest parking: 1 space per 5 units, or fraction thereof Mixed-use Where a site contains more than one principal land use (such as a shopping center), the amount of parking required shall be the total of that required for each individual use2. Skilled nursing facility 1 space per 4 beds Group quarters 1 space per bedroom, plus 1 per eight beds Single-room occupancy 1 space per 4 units and 1 space per employee, plus 0.5 space per 2 units Accessory dwelling units (residential second units) 1 covered space for the first bedroom and an additional space for additional bedrooms (Not currently enforced; the City complies with State law requirements for ADUs. The City of Atascadero ADU Ordinance will be updated to reflect state law within 2 years of Housing Element adoption [see Program 1.D]) Notes: 1. For reference only, refer to Zoning Regulations for the latest official development standards. Zoning Regulations may be amended independently of this table. 2. In addition to the reduction of required parking, where two (2) or more uses have distinct and differing peak traffic usage periods (for example, a theater and a bank), the required number of parking spaces may be reduced through conditional use permit approval, provided that the parking lots of each use are located within three hundred (300) feet of each other (as measured along the most direct pedestrian path). The amount of reduction may be up to seventy-five percent (75%) of the amount of spaces required for the most intensive of the two (2) or more uses sharing the parking. Development Fees The City charges various fees and assessments to cover the costs of processing permits and providing services. Impacts fees are also charged to cover the cost or providing municipal services or mitigating project impacts. These fees are summarized in Table E.7. The total amount of fees varies from project to project based on type, existing infrastructure, and the cost of mitigating environmental impacts. Atascadero does not control school and water impact fees. These services are managed by separate districts. 142 Atascadero Housing Element E: Constraints| 15 Table E.7: Planning and Development Fees1 Fee Category Fee Amount Planning Fees - Effective July 29, 2019 Administrative AUP Review $752 per application Minor CUP Review $1,233 per application Major CUP Review $4,424 per application Variance Application $1,952 per application Development Agreement $13,557 deposit, plus additional fees (staff charges, etc.) Specific Plan $10,183 deposit, plus additional fees (staff charges, etc.) General Plan Amendment $7,801 per application PD Zone Change $7,705 per application Rezoning (Map or Text) $4,282 per application ($8,186 rezoning with GP amendment) Tentative Parcel Map $4,616 per application Tentative Tract Map $6,353 per map, plus $45 per lot over 15 lots Condominium Conversion Tentative Map $3,355 + $72 per unit over 15 units ($5,566 + $72 per unit over 15 units with a Major CUP Precise Plan $2,314 per application Annexation $16,971 deposit, plus additional fees (staff charges, etc.) Lot Line Adjustment Review $1,465 per application historic lot line $2,455 for others Lot Merger $1,488 per application Temporary Occupancy Review $628 per application (Commercial)/ $453 per application (Residential) Administrative Time Extension Review $447 per application Planning Commission Time Extension Review $820 per application Appeal to Planning Commission (not full cost recovery) $786 per application Appeal to City Council (not full cost recovery) $1,058 per application Planning Review/Approval of Building Permit Minor $102 per application Major $356 per application CUP/PD Compliance $470 DRC Review $402 Affordable Housing Unit Fee Process $402 per application plus $136/unit and any plus legal costs Environmental Review Environmental Impact Report Review 10% of contract consultant amount of City staff review Environmental Negative Declaration $1,646 per application in addition to other application fees, where applicable 143 Atascadero Housing Element 16 | E: Constraints Table E.7: Planning and Development Fees1 Fee Category Fee Amount Capital Facilities Fees - Adopted June 30, 2007 SFR MFR Law Enforcement Facilities $574 $334 Fire Protection Facilities $950 - $955 $516 - $550 Fire Aerial Response Vehicle -- $242 Circulation System $5,597 $2,822 - $5,597 Storm Drainage Facilities $777 - $2,000 $314 - $499 General Government Facilities $1,036 $1,036 Library Expansion Facilities $532 $323 - $418 Public Meeting Facilities $1,084 $660 - $852 Parkland $4,775 $2,906 - $3,754 Open Space Acquisition $1,660 $1,011 - $1,305 Sewer $573 plus admin fee of $5 plus $1210 extension fee 1. For reference only. Planning and development fees display current rates at the time of publication. Fees are subject to change at the discretion of the City Council. Zoning Regulations may be amended independently of this table. Please check with the City of Atascadero Community Development Department for a current fee schedule. Source: City of Atascadero, 2020 Table E.8 shows typical fees charged on new housing projects. Fees collected by the City in the review and development process are limited to the City's costs for providing these services. The majority of fees for development projects are imposed by agencies outside the City’s control (i.e., school district impact fees and water connection fees). Table E.8: Development Fees for New Housing, 20201 Development Fee Category Single-Family Unit Multi-Family Unit Building and Planning Fees $4500 (small on septic) - $13,500/$14,000 (2,300 sq. ft. on sewer) $4,000-$6,000 School District - Atascadero Unified School District $7,5802 $4,9273 Water Connection4 - Atascadero Mutual Water Company $19,600 $4,900 / $9,800 (with/without dedicated landscape meter) Impact Fees5 $16,900-$18,2005 $11,700-$14,550 Miscellaneous Approximately $5,000 (for CEQA for homes with slopes > 20% - includes State fees) $2,000 Total $49,600 -$64,400 $27,500–$37,300 Notes: 1. For reference only, refer to City’s website for latest fee schedule. City fee schedule may be amended independently of this table. 2. Assumes a 2,000 square foot single-family dwelling with the impact fee at $3.79 per square foot. 3. Assumes a 1,300 square foot multi-family unit with the impact fee at $3.79 per square foot. 4. Source: City of Atascadero, 2020; Atascadero Mutual Water Company, 2020. 5. Based on lot size. 144 Atascadero Housing Element E: Constraints| 17 Development fees make up approximately 10 to 14 percent of a home purchase price (Table E.9). The City of Atascadero fees are typical for most communities and are comparable to those of surrounding communities. Table E.9: Proportion of Fee in Overall Development Cost, 2020 Development Cost for a Typical Unit Single-Family Multi-Family Total estimated fees $49,600 - $64,400/unit $35,768 - $40,618/unit Estimated sale price/value1 $452,100 $370,000 Estimated proportion of fee cost to overall development cost/unit 11-14% 10-11% 1. Median Home Sales Price in January 2020 (CoreLogic) and estimated home value for multi-family properties (condos, co- ops) on Zillow.com on April 27, 2020. State law requires that cities include an analysis of any locally adopted ordinance that directly impacts the cost and supply of residential development. In 2003, the City Council approved an Inclusionary Housing Policy for all developments requiring a legislative approval, i.e. Zone Change or General Plan Amendment. The policy requires an in-lieu fee of five percent of the construction valuation of the market rate units within a project that does not provide 20 percent of the units as affordable. All inclusionary units are required to be deed restricted for a period of 30 years. All residential projects under legislative approval are subject to the inclusionary requirement as follows:  Projects of 1-10 units: pay in-lieu fee or build units  Projects of 11 or more units must build units or receive a Council approval to pay in-lieu fees The Inclusionary Housing Policy requires that all affordable units in single-family land use areas be designated for moderate-income households. The distribution of affordable units in multi-family and mixed-use commercial land use areas are 20 percent very low income, 37 percent low income, and 43 percent moderate income. Affordable units must be constructed at the same time as the market-rate units and affordable units must be physically distributed throughout the project site, rather than concentrated in one area. To ensure compliance with these requirements, a construction timeline detailing the development of affordable units and a site map must be approved by the City Council. With City Council approval alternatives to on-site construction or payment of in-lieu fees for inclusionary units may be allowed, including off-site construction, land dedication, combinations of construction, fees, and/or land dedications. As an incentive to provide affordable units, all inclusionary units are treated as density bonus units that are not counted as part of the maximum density entitlement of a site. As an increasing number of inclusionary units move toward construction, the development community has raised concerns regarding the financing and resale of these units. To mitigate some of these financing issues, the City Council approved an equity-sharing program for the moderate-income homes. The equity- sharing program calls for the home to eventually be re-sold at the fair market value, with the City receiving its share of the sales proceeds to re-invest in affordable housing. In order to support additional development of affordable units at the very low- and low-income categories, Program 2.B is included in the Housing Element to direct the City to evaluate the inclusionary housing policy and consider replacement of the current inclusionary policy with an inclusionary housing ordinance that that requires residential developments (including non-legislative actions) to provide deed-restricted, affordable units or an in-lieu fee. 145 Atascadero Housing Element 18 | E: Constraints Permit Processing Housing production may be constrained by development review procedures, fees, and standards. Residential projects proposed in Atascadero may be subject to design, environmental review, zoning, subdivision and planned unit development review, use permit control, and building permit approval. Table E.10 displays the review authority required for various planning decisions and permits. Table E.11 displays the typical timelines for approvals and permits for the City of Atascadero. Minor residential projects typically take from one to three months from submittal of the application through completion of the approval process. Larger residential projects can take six to twelve months. Permit processing is a time consuming and costly process, especially for integrated projects such as those involving elements of affordable housing and mixed-use. City staff adhere to strict review times consistent with state law for entitlement review. Initial review times are approximately 30 days for most projects. Processing timeframes have been generally predicated on how quickly the applicant can process corrections or changes to the proposed project. Program 3.A in the Housing Element directs the City continue reviewing and revising procedures to streamline the permitting processes. Table E.10: Permit Processing Procedures Type of Decision Role of Review Authority Director or City Staff Design Review Committee Planning Commission City Council Zoning Review (Administrative) Decision N/A1 Appeal Appeal Administrative Use Permit Decision2 Recommend 2 Appeal Appeal Variance Recommend N/A Decision Appeal Zoning Map Amendment Recommend N/A Recommend Decision Design Review Approval Recommend Decision Appeal Appeal Planned Development (Master Plan of Development required) Recommend Recommend Recommend Decision Condition Use Permit Recommend Recommend3 Decision Appeal Subdivision Maps Recommend Recommend4 Decision Appeal Notes: For reference only, refer to Zoning Regulations for the latest official review procedures. Zoning Regulations may be amended independently of this table. 1. May be required for commercial signage or other administrative permits that have design impacts. 2. Design Review may be considered by the “hearing officer” for AUP applications for non-residential uses. 3. Only if architectural review required. 4. Only if paired with a master plan of development. Table E.11: Timelines for Permit Procedures Type of Approval, Permit, or Review Typical Processing Time These time periods begin when a complete application is submitted and are extended when additional information is requested by the City. The timeframes below are target issuance date—when the applicant can expect a decision on their application. Zoning Review (Administrative) Concurrent with building permit Administrative Use Permit 1-3 months Variance 1-3 months 146 Atascadero Housing Element E: Constraints| 19 Table E.11: Timelines for Permit Procedures Type of Approval, Permit, or Review Typical Processing Time Design Review Approval 1-3 months Planned Development Review 6-12 months Condition Use Permit, minor 1-3 months Condition Use Permit, major 3-6 months Zoning Amendment 3-6 months General Plan Amendment 6-12 months Subdivision Maps 3-6 months Ministerial Review Planning review of ministerial projects, such as building permits, are reviewed concurrently with building, fire, and public works. The City offers pre-project meetings to discuss zoning compliance and building code requirements to ensure that the process is streamlined. Planning review of routine over the counter permits is limited to tree protection when trees exist on-site and are within the area of development. Design Review The Atascadero Appearance Review Manual was adopted by the City Council in 1987. The Manual includes direction regarding the relationship of buildings to the site, relationship of buildings and the site to the adjoining area, landscaping, building design, maintenance, and parking. The purpose of Appearance Review is to ensure that the architectural and general appearance of buildings and grounds are in keeping with the character of the neighborhood. The City developed the Downtown Design Guidelines in 2000. The design guidelines were intended to assist in the revitalization of the Atascadero downtown, provide for infill development, and promote the conservation and reuse of existing buildings. The Guidelines provide a basis for review of building orientation, design, architecture, landscaping, and signs for new projects in the downtown. The guidelines were updated in 2011. The Design Review Committee (DRC) was established by the City Council in August 2010. Municipal Code Section 9-2.107 identifies the purpose, authority, and approval criteria for the DRC. The DRC consists of members of City Council and Planning Commission and one member of the public; the DRC has the authority to approve and make recommendation regarding the architectural appearance, signage, site design and landscape design. Appearance approval is based on adherence to policies of the General Plan, compatibility with surrounding uses, and consistency with the guidelines and recommendations in the Appearance Review Manual and Downtown Design Guidelines. All multi-family residential projects, single- family residential projects requiring a Planned Development permit, or any development projects requiring a precise plan, conditional use permit, zone change, or general plan amendment must go through design review prior to Planning Commission or City Council. The DRC has been helpful in project streamlining by working out issues that normally would have been dealt with by the Planning Commission or simply at a staff level. The Design Review process does not appear to have a significant effect on housing affordability. Staff will continue to provide educational 147 Atascadero Housing Element 20 | E: Constraints materials and training for the DRC regarding the function and scope to ensure it is not inadvertently used to reduce housing units. Environmental Review Process/Precise Plan A precise plan is required for development with grading on slopes of over 20 percent. State regulations require environmental review of discretionary project proposals (e.g., subdivision maps, precise plans, use permits, etc.). The timeframes associated with environmental review are regulated by CEQA. In compliance with the Permit Streamlining Act, City staff ensures that non-legislative proposals are heard at the Planning Commission within 60 days of receipt of an application being deemed complete. Precise Plan applications are reviewed and approved by staff concurrently with the building permit review. SB 35 Approval Process SB 35 requires cities and counties to streamline review and approval of eligible affordable housing projects by providing a ministerial approval process, exempting such projects from environmental review under the California Environmental Quality Act (CEQA). When the state determines that jurisdictions have insufficient progress toward their lower-income RHNA (very low and low income), these jurisdictions are subject to the streamlined ministerial approval process (SB 35 [Chapter 366, Statutes of 2017] streamlining) for proposed developments with at least 50 percent affordability. If the jurisdiction also has insufficient progress toward their above-moderate-income RHNA, then they are subject to the more inclusive streamlining for developments with at least 10 percent affordability. As of March 2020, the City of Atascadero was determined to be subject only to SB 35 streamlining for proposed developments with 50% or greater affordability. The City has not received any applications or inquires for SB 35 streamlining. To accommodate any future SB 35 applications or inquiries, Program 3.A calls for the City to create and make available to interested parties an informational packet that explains the SB 35 streamlining provisions in Atascadero and provides SB 35 eligibility information. Program 3.B is included and specifies that City will adopt objective design standards to provide local guidance on design and standards for by-right projects as allowed by state law. Housing For People With Disabilities California law requires jurisdictions to analyze potential and actual constraints on housing for persons with disabilities, demonstrate efforts to remove impediments, and include programs to accommodate housing designed for disabled persons. Review of the Municipal Code, permitting procedures, development standards, and building codes revealed the following findings:  The City enforces Title 24 of the California Code of Regulations that addresses access and adaptability of buildings to accommodate persons with disabilities. The City also requires compliance with the 1988 amendments to the Fair Housing Act, which requires a minimum percentage of dwelling units in new RMF housing projects to be fully accessible to the physically disabled. No additional accessibility standards above State and Federal law are required.  In downtown zones, where residential uses are limited to the upper floors, a handicapped accessible unit may be located on a first floor if a project is required to provide a unit in compliance with the Americans with Disabilities Act, subject to development standards. 148 Atascadero Housing Element E: Constraints| 21 Process for Reasonable Accommodation Accessibility improvements to existing structures, such as a ramp, are usually handled ministerially by City staff. The City adopted a reasonable accommodation ordinance in 2013. Table E.12 reviews zoning and land use policies, permitting practices, and building codes to ensure compliance with state and federal fair housing laws for persons with disabilities. The City of Atascadero has an ADA Coordinator to ensure City departments comply with this policy by carrying out the following functions:  Providing technical assistance to support City departments in complying with federal, state, and local disability access laws  Assisting departments in evaluating their facilities, programs, services, and activities to ensure provision of reasonable accommodations to people with disabilities  Conducting training for City employees in disability awareness, disability etiquette, disability access laws, and reasonable accommodations  Facilitating the resolution of grievances filed against the City that alleges noncompliance with disability access laws Table E.12: Constraints on Housing for Persons with Disabilities General Does the City have a process for persons with disabilities to make requests for reasonable accommodation? Yes. The City adopted a reasonable accommodation ordinance in 2013. Has the City made efforts to remove constraints on housing for persons with disabilities? There are no special permits or requirements for homes or development for disabled persons in zones where the use would be otherwise permitted. In most cases, these developments are permitted use. Does the City assist in meeting identified needs? The City applies Community Development Block Grant (CDBG) funds to accessibility upgrades. The San Luis Obispo Housing Authority recently completed a 19-unit retirement hotel, which contained ADA compliant units. Zoning and Land Use Has the City reviewed all its zoning laws, policies, and practices for compliance with fair housing law? Yes, the City has reviewed the land use regulations and practices to ensure compliance with fair housing laws. Are residential parking standards for persons with disabilities different from other parking standards? Does the City have a policy or program for the reduction of parking requirements for special needs housing if a proponent can demonstrate a reduced parking need? Section 9-4.114 of the Planning and Zoning Regulations (Off-street parking required) mandates the provision of disabled parking spaces in accordance with California Building Code (part 2 of Title 24) Chapter 11. The parking requirements also allow flexibility if an applicant can demonstrate a lower parking need. Does the locality restrict the siting of group homes? No 149 Atascadero Housing Element 22 | E: Constraints Table E.12: Constraints on Housing for Persons with Disabilities What zones allow group homes other than those allowed by State law? Are group home over six persons allowed? Group homes (referred to as residential care facilities in the Planning and Zoning Regulations) of six or less individuals are allowed by right in all residential districts and downtown districts. They are allowed in the Public (P) zone with a Conditional Use Permit. Facilities with greater than 6 persons are conditionally permitted in all residential zones and the P zone. Does the City have occupancy standards in the zoning code that apply specifically to unrelated adults and not to families? No. Does the land use element regulate the siting of special needs housing in relationship to one another? No, there is no minimum distance required between two or more special needs housing. Permits and Processing How does the City process a request to retrofit homes for accessibility? Atascadero allows residential retrofitting to increase the suitability of homes for people with disabilities in compliance with ADA requirements, as permitted in the 2019 California Building Code. Does the City allow groups homes with six or fewer persons by right in single-family zones? Yes. Does the City have a set of particular conditions or use restrictions for group homes with greater than six persons? Group homes (or residential care facilities) with greater than six persons are conditionally permitted in all residential zones and the P zone. They are subject design review and are required to be incompliance with the same parking and site coverage requirements as multi-family uses. What kind of community input does the City allow for the approval of group homes? The Conditional Use Permit provides the public with an opportunity to review the project and express their concerns in a public hearing. Does the City have particular conditions for group homes that will be providing services on site? No, the City does not have special standards for group homes regarding services or operation. Table E.12: Constraints on Housing for Persons with Disabilities Building Codes Has the locality adopted the Uniform Building Code? Atascadero has adopted the 2019 California Building Code. No amendments have been made that affect the ability to accommodate persons with disabilities. Has the City adopted any universal design element standards into the code? No, the City has no adopted universal design standards at this time. Does the City provide reasonable accommodation for persons with disabilities in the enforcement of building codes and the issuance of building permits? Yes. The City adopted a reasonable accommodation ordinance in 2013. 150 Atascadero Housing Element E: Constraints| 23 Opportunities for Energy Conservation Planning to maximize energy efficiency and the incorporation of energy conservation and green building features contributes to reduced housing costs. Energy efficient design for sustainable communities reduces dependence on automobiles. Additionally, maximizing energy efficiency reduces greenhouse gas emissions. In response to recent legislation on global climate change, local governments are required to implement measures that cut greenhouse gas emissions attributable to land use decisions (see discussion on Global Climate Change below). Cities can support energy efficiency that benefits the market, the environment, and the long-term health of the community by:  Establishing a more compact urban core, bringing residents close to work and services, therefore reducing automobile trips and reducing emissions  Implementing passive solar construction techniques that require solar orientation, thermal massing, and other energy efficient design standards  Encouraging the use of solar water heating and photovoltaics Executive Order S-E-05 initiated the first steps in establishing greenhouse gas emission reduction targets in California. This was followed by the California Global Warming Solutions Act (AB 32), which required the California Air Resources Board (CARB) to establish reduction measures. There are several areas where programs for energy conservation in new and existing housing units are supported by the City:  Through application of state residential building standards that establish energy performance criteria for new residential buildings (Title 24 of the California Administrative Code). These regulations establish insulation, window glazing, air conditioning, and water heating system requirements. The City also instituted the City Council adopted Energy Conservation Initiative in 2001.  Through appropriate land use policies and development standards that reduce energy consumption. Atascadero’s General Plan is based on the Smart Growth Principles of encouraging infill and reuse of existing land and infrastructure. The Land Use, Open Space, and Conservation Element include goals to preserve a greenbelt around the City, encourage mixed-use infill development, revitalize of the Downtown Core, and encourage compact development with a pedestrian scale and trails.  City environmental review may also require measures to reduce energy consumption.  Energy Alternatives for low-income families and how the City can perform outreach. Pacific Gas and Electric (PG&E) provides a variety of energy conservation services for residents and provides several other energy assistance programs for lower income households. PG&E also offers rebates for energy efficient home appliances and remodeling. Rebates are available for cooling and heating equipment, lighting, seasonal appliances, and remodeling (cool roofs, insulation, water heaters). These opportunities are available to all income levels and housing types. PG&E’s Energy Savings Assistance Common Area Measures facilitates energy retrofits of the common areas and central systems in multi- family properties through technical assistance, cash incentives, and program coordination to income- eligible, deed-restricted, multi-family buildings. 151 Atascadero Housing Element 24 | E: Constraints Residential water heating and HVAC systems are major sources of energy consumption. With the application of energy efficient design and the use of solar power systems, home heating and cooling can be operated in a more efficient and sustainable manner. By encouraging solar energy technology for residential heating/cooling in both retrofits and new construction, the City can play a major role in energy conservation. There are two distinct approaches to solar heating: active and passive. The best method to encourage use of solar systems for heating and cooling is to not restrict their use in the zoning and building ordinances and to require subdivision layouts that facilitate solar use. Residential water heating can be made more energy efficient through the application of solar water heating technologies. Solar water heating relies on the sun to heat water, which is then stored for later use. A conventional water heater is needed only as a back-up. By cutting the amount of natural gas needed to heat water by 50 to 75 percent per building, solar water heating systems can lower energy bills and reduce greenhouse gas emissions significantly. There are significant areas where Atascadero can do more to encourage energy conservation in new and existing residential development to reduce the demand on energy. There are a variety of energy efficiency and greenhouse gas emission reduction strategies that can be integrated into land use decisions related to housing. As an active member of Local Governments for Sustainability, Atascadero is also participating in an effort to inventory and reduce greenhouse gas emissions. Through these and other conservation measures, the City seeks to help minimize the percentage of household income required for energy costs as well as minimize the production of greenhouse gases. Program 3.M encourages energy conservation and will help residents minimize energy-related expenses by:  Promoting environmentally sustainable building practices that provide cost savings to homeowners and developers  Providing informational material at the Community Development Department counters from PG&E and others that detail energy conservation measures for new and existing buildings, the benefits of the Green Building (San Luis Obispo Green Build), and resources to assist lower-income households with energy-related expenses  Continuing to strictly enforce the State energy standards of the Green Building Code  Enhancing partnerships with Solar Providers for installation of PV panels and other alternative electrical services for lower-income households 2. Non-Governmental Constraints The availability and cost of housing is strongly influenced by market factors over which local government has little or no control. State law requires that the housing element contain a general assessment of these constraints, which can serve as the basis for actions that local governments might take to offset their effects. The primary non-governmental constraints to the development of new housing are land costs, construction costs, and environmental constraints. Land and Construction Costs The cost and availability of capital financing affect the overall cost of housing in two ways: first, when the developer uses capital for initial site preparation and construction and, second, when the homebuyer uses capital to purchase housing. The capital used by the developer is borrowed for the short-term at 152 Atascadero Housing Element E: Constraints| 25 commercial rates, which are considerably higher than standard mortgage rates. Construction financing is sometimes difficult to obtain for multi-family construction, which poses a significant constraint on the production of affordable housing in Atascadero. Land costs include acquisition and the cost of holding land throughout the development process. These costs can account for as much as half of the final sales prices of new homes in small developments or in areas where land is scarce. Land costs in single-family residential neighborhoods of Atascadero range from $23,000 to $824,000 per acre.1 Among the variables affecting the cost of land are the size of lots, location and amenities, the availability and proximity of public services, and the financing arrangement between the buyer and seller. Construction cost is determined primarily by the cost of labor and materials. The relative importance of each is a function of the complexity of the construction job and the desired quality of the finished product. As a result, builders are under constant pressure to complete a job for as low a price as possible while still providing a quality product. This pressure has led (and is still leading) to an emphasis on labor-saving materials and construction techniques. The price paid for material and labor at any one time will reflect short-term considerations of supply and demand. Future costs are difficult to predict given the cyclical fluctuations in demand and supply that in large part are created by fluctuations in the state and national economies. Such policies unilaterally impact construction in a region and therefore do not deter housing construction in any specific community. According to 2020 building valuation data by the International Code Council, standard housing construction costs may average $122 to $156 per square foot for single-family residences depending on the level of amenities provided, and $112 to $167 per square foot for a multi-family residential structure, depending on construction type and excluding parking. Structured parking cost can be significant. In Atascadero, this approach to parking largely does not occur. Government Code 65583(a)(6) Development Analysis Government Code section 65583(a)(6) requires an analysis of requests to develop housing at densities below those anticipated in site inventory and the length of time between receiving approval for housing development and submittal of an application for building permit. The analysis must also look at local efforts to remove nongovernmental constraints that create a gap in the jurisdiction’s ability to meet RHNA by income category. In Atascadero, most requests for development at densities below anticipated densities are for properties designated for MDR (RMF-10) properties and very small HDR (RMF-24) properties with existing units where the property owner wants to add units to the site without removing exiting uses. There are no MDR sites in the sites inventory. In the HDR designation, most requests are turned away due to the minimum density stipulation for the RMF-24 zone. While the sites inventory has seven HDR (RMF-24) sites, all sites 1 A review of vacant land sales appropriate for residential development on Zillow.com on April 27, 2020 provided 13 vacant lots for sale within the City. Land costs were estimated from this sample and may not be representative of general land costs in the City. 153 Atascadero Housing Element 26 | E: Constraints have a minimum size of one-half acre and only two sites have an existing use on the site. For economic reasons, most owners of large size properties strive to maximize densities. In Atascadero, the length of time between receiving approval for housing development and submittal of an application for building permit is typically one or two months depending on project complexity and the development consultant’s lead time to get construction documents complete. For example, a current multi-family residential project with complex grading and drainage plans has taken longer than usual to submit permits. Also, developers may struggle with feasibility analyses, financing, or negotiations with design professionals which are outside the control of the City. The analysis must also look at local efforts to remove nongovernmental constraints that create a gap in the jurisdiction’s ability to meet RHNA by income category. The primary non-governmental constraint is the overall cost of affordable housing development (high land and development costs). Construction trends in Atascadero in the last 10 years show that even with density bonuses offered, constructing affordable housing, especially for low- and very low-income households is not profitable to housing developers. Therefore, deed-restricted affordable units require subsidy beyond available density incentives. This places the construction burden on non-profits and similar grant funded housing developments. Some regions do not have enough of these organizations to meet the affordable housing construction needs of the region. Furthermore, the lack of funding results in affordable projects that are not always dispersed throughout the region but are concentrated in limited areas with lower development costs. While the City can offer developer incentives such as expedited permit processing and fee deferrals, it cannot afford to fully mitigate the high cost of development for affordable housing developments. While technically a governmental constraint, regulatory changes from different state entities, and which the City has no control of but must enforce, also constrain housing production in Atascadero. Regulations related to mitigation of transportation impacts (newly enacted VMT thresholds) or on-site standards and requirements for storm water management, for example, subject new housing projects to additional scrutiny and trigger a more complex environmental review process and potentially a greater level of mitigation. Again, the City of Atascadero facilitates housing development by providing technical assistance, regulatory incentives and concessions, and financial resources as funding allows. But the resources available to the City to mitigate these constraints are very limited. Availability of Financing The availability of capital to finance new residential development is a significant factor that can impact both the cost and supply of housing. Two types of capital are involved in the housing market: 1) capital used by developers for initial site preparation and construction and 2) capital for financing the purchase of units by homeowners and investors. Interest rates substantially impact home construction, purchase, and improvement costs. A fluctuation in rates of just 2.5 percent can make a dramatic difference in the annual income needed to qualify for a loan. In general, financing for new residential development is available at reasonable rates. However, economic fluctuations due to COVID-19 have caused caution among lenders and may have lasting effects through this Housing Element planning period. And while interest rates are low, lenders are considering applicants much more closely than in the past, leading to credit tightening despite affordable interest rates. 154 Atascadero Housing Element E: Constraints| 27 Environmental and Physical Constraints Environmental Constraints Several special status species are known to occur in Atascadero, including: dwarf calycadenia, Douglas’ spineflower, Hardham’s evening-primrose, Jared’s pepper-grass, Kellogg’s horkelia, Oval-leaved snapdragon, rayless aphanactis, round-leaved filaree, Salinas milk vetch, Salinas valley goldfields, shining navarretia, and straight-awned spineflower. The City also protects unique vegetation communities that support sensitive species, including wetlands. Wetland habitat types are considered a vegetation community of special concern by the CDFG because of substantial statewide losses. Numerous creeks and blue line streams are present throughout the City and can affect feasibility of development at full capacity in those areas. The more urbanized areas of the City, where higher density housing development is typically located, are not constrained by these water features. The presence of special-status species and plant communities of special concern may affect development regulated by the City by limiting the development potential and/or adding mitigation costs. The grasslands, riparian habitats, and tracts of undeveloped land provide habitat for a diverse selection of resident and migrant wildlife. Eighteen special status bird and mammal species are known to occur in Atascadero. Barriers to wildlife movement and migration, as well as the removal of raptor nesting sites, are to be avoided in future development. The occurrence of any of these species on a site could pose constraints to a housing project. Preservation of natural flora and fauna is a basic community goal and native trees are valued community assets. The City has established regulations for the installation, maintenance, planting, preservation, protection, and selected removal of native trees within the City limits through the adoption of the Native Tree Ordinance. A tree removal permit is required for the removal of native trees (as defined by Chapter 11, Native Tree Regulations) and for pruning of the live canopy in native trees in excess of 25 percent of the existing canopy area. In addition, for each residential building permit issued, the planting of one five- gallon native tree is required. The mitigation requirements may become cumbersome for high-density projects, as tree replacement may be required on-site that is at the sole expense of the applicant. However, native and drought-tolerant landscaping may be used to meet landscape requirements and does not specifically add costs above standard Zoning Regulations and State landscaping requirements. Physical Constraints Several physical constraints may occur in the City. Parcels with steep slopes may have constraints associated with landslide hazards, grading costs, and access requirements. Landslides are relatively rare in the developed portions of the City, as compared to in the hilly, undeveloped areas. Stationary noise sources near potential sites for development may pose constraints. For example, traffic on U.S. Route 101 exceeds acceptable noise levels. Housing may be limited within 500 feet of U.S. Route 101 under CEQA due to the health hazards of siting sensitive uses near urban roads with over 100,000 vehicles per day unless appropriate mitigation can be identified and implemented. Operational noise sources near potential sites for development may pose constraints as well, such as the Southern Pacific railroad tracks that run north-south through the eastern portion of the City. Residential uses adjacent to the railroad tracks have the potential to be exposed to noise that exceed acceptable noise levels, although noise incidences are temporary (dependent on railroad operation). In addition, in high fire areas, State codes may restrict development of areas lacking secondary egress routes and in low-lying areas of the City may 155 Atascadero Housing Element 28 | E: Constraints be subject to flooding during a 100-year storm (see the Safety and Noise Element of the General Plan for details). 156 Atascadero Housing Element F: Resources| 1 F. Housing Resources State law requires that jurisdictions provide an adequate number of sites to allow for and facilitate the production of their regional share of housing. To determine whether a jurisdiction has enough land to accommodate its share of regional housing needs for all income groups, that jurisdiction must identify “adequate sites.” Under state law (California Government Code section 65583[c][1]), adequate sites are those with appropriate zoning and development standards—with services and facilities—needed to facilitate and encourage the development of a variety of housing for all income levels. The resources available for the development, rehabilitation, and preservation of housing in Atascadero are addressed here. This section provides an overview of available sites for future housing development and evaluates how these resources can work toward satisfying future housing needs. Also discussed are the financial and administrative resources available to support affordable housing. 1. Regional Housing Needs Allocation (RHNA) The 6th cycle RHNA for the San Luis Obispo region covers a 10-year planning period (December 31, 2018 through December 31, 2028) and is divided into four income categories: very low, low, moderate, and above moderate. As determined by San Luis Obispo Council of Governments (SLOCOG), the City of Atascadero’s fair share allocation is 843 new housing units during this planning cycle, with the units divided among the four income categories as shown in Table F.1. The City of Atascadero is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build these units. This includes the creation, adoption, and implementation of General Plan policies, zoning and development standards, and/or incentives to encourage the construction of various types of units. Table F.1: City of Atascadero RHNA Allocation 2018-2028 Income Group Total Housing Units Percentage of Units Extremely/Very Low Income (0-50% AMI)* 207 25% Low Income (51-80% AMI) 131 16% Moderate Income (80-120% AMI) 151 18% Above Moderate Income (121+% AMI) 354 42% Total 843 100% Notes: AMI: Area Median Income * Note: Pursuant to AB 2634, local jurisdictions are also required to project the housing needs of extremely low-income households (0-30% AMI). In estimating the number of extremely low-income households, a jurisdiction can use 50% of the very low-income allocation (103 units). 157 Atascadero Housing Element 2 | F: Resources 2. Progress towards the RHNA RHNA (RHNA Credits) Since the RHNA uses December 31, 2018 as the baseline for growth projections for the planning period, jurisdictions may count toward the RHNA housing units permitted or approved from December 31, 2018 (or starting January 1, 2019) to the start of the Housing Element planning period (December 21, 2020)1. Since January 1, 2019, 673 housing units have completed, issued, or approved in Atascadero (Table F.2). These units include 36 very low-income units, 36 low-income units, 231 moderate-income units, and 370 above moderate-income units. Affordability of Units Credited Towards the RHNA Units credited towards the RHNA are distributed among the four affordability groups (extremely/very low, low, moderate, and above moderate) based on affordability restrictions (as is the case with affordable housing projects or units built in compliance with density bonus provisions or the City’s inclusionary requirements) or housing cost for those specific types of units. For example, the market rate rents and sale prices for accessory dwelling units (ADUs), manufactured homes, and tiny homes (also known as micro-homes and typically under 1,000 square feet in size) fall within levels affordable to the households earning low (51-80% AMI) and moderate incomes (81-120% AMI) and are allocated as such. Based on current rent trends, half of the ADU credits will be allocated toward the low-income affordability category with the remaining half allocated toward the moderate category. For multi-family units, 2018 Census rental cost data by bedroom and 2020 HUD 50th Percentile Rents show that market rents for multi-family units in Atascadero are affordable to moderate income households while larger units are affordable to above moderate-income households. Accordingly, affordability for multi-family units are divided evenly between the moderate and above moderate-income categories based on market costs for multi-family rental units. Remaining RHNA The City has already achieved a portion of its RHNA with housing units permitted or approved, including all the moderate- and above moderate-income RHNA. Since January 1, 2019, 673 units have been permitted or approved in Atascadero (Table F.2). With these credits applied, the City has a remaining RHNA of 266 units (171 extremely low/very low-income units and 95 low-income units) that must be addressed within housing opportunity sites identified in this Housing Element. 1 The Housing Element planning period differs from the RHNA Planning period. The 6th Cycle RHNA covers a 10-year planning period of December 31, 2018 to December 31, 2028. The Housing Element covers an 8-year planning period of December 31, 2020 through December 31, 2028. 158 Atascadero Housing Element F: Resources| 3 Table F.2: RHNA Credits Ex./Very Low Income (0- 50% AMI)* Low Income (51-80% AMI) Moderate Income (80-120% AMI) Above Moderate Income (121+% AMI) Total Credits Building Permits (Finalized/Issued/Applied) Single-Family Units2 0 0 1 110 111 Manufactured Homes1 0 0 3 0 3 Multi-Family Units3 3 6 73 74 156 Accessory Dwelling Units4 0 11 12 0 23 Subtotal 3 17 89 184 293 Planning Approvals Emerald Ridge (multi-family units)3 0 0 86 86 172 Grand Oaks Micro Homes (SFR)5 0 0 30 0 30 Hartberg PD3 (multi-and single- family units) 3 6 19 47 75 People's Self Help2 30 10 0 0 40 Principal Mixed-Use (attached/ detached single-family units)2 0 3 3 46 52 Single-Family Units, miscellaneous 0 0 0 3 3 Multi-Family Units, miscellaneous3 0 0 4 4 8 Subtotal 33 19 33 295 380 Total Credits 36 36 231 370 673 2018-2028 RHNA 207 131 151 354 843 Remaining RHNA after Credits Applied 171 95 -80 -16 266 Notes: 1. Affordability manufactured homes are assumed to be within the affordability range of moderate-income families, as these housing types provide more affordable options without the units being subsidized. The average cost for a manufactured unit in Atascadero is $180,363 for a typical three-bedroom unit according to the San Luis Obispo County Accessory Dwelling Unit and Mobile/Manufactured Home Market Study Report, January 2020. 2. Identified affordable units have a declaration of restrictions recorded on the property. 3. Affordability for multi-family units in the very low- and low-income categories is based on a declaration of restrictions recorded on the property. Affordability for non-restricted multi-family units are divided evenly between the moderate- and above moderate-income categories based on market costs for multi-family rental units. 2018 Census rental cost data by bedroom and 2020 HUD 50th Percentile Rents show that market rents for multi-family units in Atascadero are affordable to moderate-income households, while larger units are affordable to above moderate-income households. 4. Affordability for ADUs is divided evenly between the low- and moderate-income categories. In March 2020, Apartments.com estimated that the average rent for a studio apartment in Atascadero ($893) and the average rent for a one-bedroom apartment in Atascadero ($1,306) meets the affordability criteria for low-income persons (studio units, one-person households) for moderate-income persons (one-bedroom units, one-person households) set forth in Table D.18: Affordable Housing Costs by Household Size and Tenure – 2019. 5. Grand Oaks Micro Homes fall within the affordability levels in Table D.18 for moderate-income households. Additionally, three units within the Grand Oaks development are deed restricted for moderate-income households via a density bonus agreement. 159 Atascadero Housing Element 4 | F: Resources 3. Residential Sites Inventory State law requires that jurisdictions demonstrate in the Housing Element that the land inventory is adequate to accommodate that jurisdiction’s share of the region’s projected growth. The City has a remaining RHNA of 266 units in the extremely/very low- and low-income categories. The City has various residential and mixed-use development opportunities with sufficient capacity to meet and exceed the identified housing need. A detailed listing of sites, consistent with State law, is included in Table F.7. Sites Inventory Considerations Realistic Capacity Consistent with HCD Guidelines, the methodology for determining realistic capacity on each identified site must account for land use controls and site improvements. A realistic density calculation of 80 percent of the maximum density has been applied to sites allowing multi-family development. The 80 percent buildout factor is based on historical trends and the assumption that development standards combined with unique site features may not always lead to 100 percent buildout. The realistic capacity for mixed- use development is based on typical densities of existing or approved mixed-use developments. The two most recently approved mixed-use projects in Atascadero, La Plaza Development (currently under construction) and the Downtown Colony Lofts (approved in 2019), will be developed at 28.2 and 27.8 units/acre, respectively. A realistic density calculation of 80 percent of the maximum density will be applied to sites allowing mixed-use development. To ensure that the realistic capacity takes into consideration the development of non-residential uses for mixed-use projects, such as ground floor commercial uses, only half the site acreage is used in the capacity calculation. This provides for a conservative estimate of development potential as many of the identified mixed-use sites can achieve higher residential capacity. Densities Appropriate for Accommodating Lower Income Housing The capacity of sites that allow development densities of at least 20 units per acre is credited toward the lower-income RHNA based on state law. The California Government Code states that if a local government has adopted density standards consistent with the population based criteria set by state law (at least 20 units per acre for Atascadero), HCD is obligated to accept sites with those density standards (20 units per acre or higher) as appropriate for accommodating the jurisdiction’s share of regional housing need for lower-income households. Per Government Code Section 65583.2(c)(3)(B), the City’s High-Density Residential designation (20-24 du/ac) is consistent with the default density standard of 20 units per acre and therefore considered appropriate to accommodate housing for lower-income households. The Commercial Professional (CP) and Commercial Retail (CR) zones, which allow residential development in a mixed-use format at a density of up to 24 units per acre, are also consistent with the default density standard and therefore considered appropriate to accommodate housing for lower-income households. 160 Atascadero Housing Element F: Resources| 5 Assembly Bill 1397 Consistent with updated Housing Element law (Assembly Bill 1397) related to the suitability of small and large sites, the lower-income sites inventory presented in this section is predominately limited to parcels that are between 0.5 and 10 acres in size, as the state has indicated these size parameters are most adequate to accommodate lower-income housing need. One mixed-use site consists of three parcels, two of which are less than one-half acre in size. These sites are included because they comprise a larger site, are under common ownership, and function as a single site. AB 1397 also adds specific criteria for assessment of the realistic availability of non-vacant sites during the planning period. If non-vacant sites accommodate half or more of the lower-income need, the housing element must describe “substantial evidence” that the existing use does not constitute an impediment for additional residential use on the site. Non-vacant sites make up just 10 percent of all lower-income sites in the sites inventory. Among all lower income sites (with a total capacity of 368 units), only two sites (with a total capacity of 37 units) are non-vacant. Sites Inventory The Housing Element Sites Inventory consists predominantly of vacant residential and mixed-use sites in addition to projected ADU production, two vacant single-family residential sites with proposed development, and two underutilized high-density residential sites with a high probability of development within the planning period. Together, these sites ensure that the remaining RHNA can adequately be accommodated during the planning period. The sites have no identified constraints that would prevent development or reuse during the Housing Element period. Table F.3 summarizes the sites inventory (see also Figures F.1 and F.2). Adequacy of Sites for RHNA The Sites Inventory identifies capacity for 497 units, 369 of which are on sites suitable for development of lower-income housing. Overall, the City can adequately accommodate—and have excess capacity for— the remaining RHNA of 266 units. Detailed Sites Inventory The following sections provide details on the City’s 2020-2028 Housing Element sites inventory. Accessory Dwelling Units As noted in the credits discussion above, in 2019, 23 accessory dwelling unit building permits were applied for, issued, and finaled in Atascadero. The City projects that during the planning period, approximately 225 accessory dwelling units (ADUs) will be developed (25 per year) based on ADU trends in Atascadero and recent, favorable ADU legislation which has created new incentives and streamlined processes to build ADUs. As part of Housing Element implementation, the City will create and provide pre-approved ADU plans as a tool for encouraging development of ADUs and lowering plan review costs for applicants (Program 1.D). The projected ADUs are included as credits consistent with HCD guidelines. New ADUs are 161 Atascadero Housing Element 6 | F: Resources anticipated to be affordable to low- and moderate-income households given their comparable size and rent relative to small rental units in Atascadero (studio and one-bedroom units). The projected ADUs are divided evenly between the low- and moderate-income categories. In March 2020, Apartments.com estimated that the average rent for a studio apartment in Atascadero, CA was $893 and the average rent for a one-bedroom apartment in Atascadero, CA $1,306. The rental cost for studio apartments meets the affordability criteria for low-income, one-person households, and the rental costs for one-bedroom apartments meets the affordability criteria for moderate-income, one-person households, as set forth in Table D.18: Affordable Housing Costs by Household Size and Tenure – 2019 in Section D: Housing Needs Assessment. Vacant Single-Family Residential (SFR) Sites Two vacant sites zoned Single-Family Residential (SFR) are included in this inventory due to proposed projects on the site. The 1.8-acre Annex subdivision site (APNs: 049-102-020, -032) is in the process of being developed with six single-family homes and six accessory dwelling units. The 1.3-acre Atascadero Avenue site (APN: 056-181-039) is in the process of being developed with four single-family homes and Table F.3: Sites Inventory Summary Ex./Very Low Income (0-50% AMI)* Low Income (51-80% AMI) Moderate Income (80-120% AMI) Above Moderate Income (121+% AMI) Total Sites Accessory Dwelling Units1 0 112 113 0 225 Vacant/Proposed Project Single- Family Residential (SFR) Sites with ADUs1 0 5 5 10 20 Vacant High Density Residential (HDR) Sites2 129 0 0 0 129 Vacant Mixed-Use Sites2 86 0 0 0 86 Underutilized High Density Residential (HDR) Sites2 37 0 0 0 37 Total Sites 252 117 118 10 497 Remaining RHNA after Credits Applied 171 95 -80 -16 266 Surplus/Shortfall (+/-) after sites applied -81 -22 -198 -26 -327 Notes: 1. Affordability for ADUs is divided evenly between the low- and moderate-income categories. In March 2020, Apartments.com estimated that the average rent for a studio apartment in Atascadero ($893) and the average rent for a one-bedroom apartment in Atascadero ($1,306) meets the affordability criteria for low-income persons (studio units, one-person households) for moderate-income persons (one-bedroom units, one-person households) set forth in Table D.18: Affordable Housing Costs by Household Size and Tenure – 2019. 2. The capacity of sites that allow development densities of at least 20 units per acre are credited toward the lower- income RHNA based on state law. 162 Atascadero Housing Element F: Resources| 7 four accessory dwelling units. The ADU units are divided equally between the low- and moderate-income categories, as the rental costs for studio apartments meet the affordability criteria for low-income persons (one-person households) and the rental costs for one-bedroom apartments meet the affordability criteria for moderate-income persons. The single-family units are credited against the above-moderate income RHNA. Vacant High Density Residential (HDR) Sites The sites inventory includes five vacant High Density Residential/RMF-24 (HDR/RMF-24) sites totaling 5.9 acres with a realistic capacity of 129 units (Table F.4). The HDR designation allows a density of 20 to 24 units per acre. Because these sites allow development densities of at least 20 units per acre (the City’s default density as established by HCD), they are credited toward the lower-income RHNA. HDR Sites 1, 4, and 5 are subject to the provisions of AB 1397, which requires that vacant sites identified in the previous two Housing Elements only be deemed adequate to accommodate a portion of the housing need for lower-income households if a site is zoned at residential densities consistent with the default density established by HCD (20 units per acre) and the site allows residential use by right for housing developments in which at least 20 percent of the units are affordable to lower-income households. The sites are included in this 6th Cycle Housing Element based on the allowed density in the HDR/RMF-24 sites (20 to 24 units per acre) and because the City of Atascadero has created a by-right process (not subject to a CUP or specific plan) for RMF-24 properties identified in the Housing Element. This applies to all residential development on identified RMF-24 sites, including developments in which at least 20 percent of the units are affordable to lower-income households. Table F.4: Vacant High Density Residential (HDR) Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details HDR 11 049-042- 025 1055 El Camino Real 1.80 HDR/ RMF-24 34 HDR Site 1 is located along El Camino Real south of Santa Cruz Road, adjacent to the Hilltop Mobile Manor. The vacant site was included in the 4th and 5th cycle Housing Element. HDR 2 049-151- 005 2405 El Camino Real 2.04 HDR/ RMF-24 39 HDR Site 2, located on Rio Rita Street, is part of the former Walmart site. It is the only parcel designated for HDR within the former project site. The site was included in the 5th cycle Housing Element. It is located adjacent to two parcels with property owners who have requested upzoning from a single-family zone to a multi-family, higher-density residential zone. HDR 3 028-192- 060, 061, 062, 063 5266, 5272, 5280 Traffic 0.67 HDR/ RMF-24 13 HDR Site 3 is located on Traffic Way just north of Honda Avenue. 163 Atascadero Housing Element 8 | F: Resources Table F.4: Vacant High Density Residential (HDR) Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details Way, 5255 Alamo HDR 41 030-101- 053 8959 Curbaril 0.87 HDR/ RMF-24 17 HDR Site 4 is located on Curbaril Avenue north of Santa Ysabel Avenue. The site was included in the 4th and 5th cycle Housing Element. HDR 51 045-321- 024 9355 Avenida Maria 0.51 HDR/ RMF-24 26 HDR Site 5 is a vacant portion of the Knolls at the Avenida project. The Phase 2 site is approved for 26 affordable housing units. The site was included in the 4th and 5th cycle Housing Element. Note: 1. Subject to the provisions of AB1397: Projects with at least 20% affordable units must be permitted by right. Vacant Mixed-Use Sites Four mixed-use sites are included in the sites inventory with a total acreage of 8.8 acres and a total realistic capacity of 86 units (see Table F.5). Mixed-use sites make up a small percentage (17%) of the site inventory capacity and just 23 percent of the capacity for all lower-income sites. The sites are zoned for Commercial Retail (CR), which allows a density of up to 24 units per acre. The mixed-use sites in this inventory have been chosen based on their size, availability, and appropriateness for residential development. Because these sites allow development densities of at least 20 units per acre, they are credited toward the lower- income RHNA. None of the identified mixed-use sites is subject to the provisions of AB 1397. Table F.5: Vacant Mixed-Use Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details MU 1 049-163- 044 3745 El Camino Real 1.86 GC/ CR 18 MU Site 1 is located on the east side of El Camino Real just south of Campbell Lane. The site is the only vacant property in a group of four Commercial properties. MU 2 030-511- 001 8725 Arcade Rd 0.65 GC/ CR 6 MU Site 2 is located on Arcade Road. It is one parcel removed from El Camino Real. The size of the site would likely accommodate a development with a residential component comprising a quarter of the development. 164 Atascadero Housing Element F: Resources| 9 Table F.5: Vacant Mixed-Use Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details MU 3 030-512- 002, 011, 012 8580 El Centro, 8805 & 8705 Cascada 1.14 GC/ CR 12 MU Site 3 is located on Cascada Road and is made up of three parcels. It is one parcel removed from El Camino Real. The size of the site would likely accommodate a development with a residential component comprising a quarter of the development. MU 4 045-331- 014 11600 El Camino Real 5.19 MU-PD/ CR 50 MU Site 4 (Dove Creek commercial parcel) is located on the west side of El Camino Real north of Santa Barbara Road and one block from the City’s southern boundary. This site has the potential to become a mixed- use node at the south end of the City. Underutilized High Density Residential (HDR) Sites The sites inventory includes two partially vacant, underutilized High Density Residential/RMF-24 (HDR/RMF-24) sites (see Table F.6). The City has many underutilized RMF-24 zoned sites; the two sites included were chosen based on size, location, and high potential for redevelopment. The HDR designation allows a density of 20 to 24 units per acre. Because these sites allow development densities of at least 20 units per acre (the City’s default density as established by HCD), these units are credited toward the lower- income RHNA. These two partially vacant, underutilized sites make up a small percentage (7%) of the site inventory capacity and just 10 percent of the capacity for all lower-income sites. Underutilized Site 1 is located in an area undergoing a transition from lower-density to high-density residential uses. On the north side, the site is adjacent to a high-density, affordable housing project that is approved and under development (in Summer 2020). On the south side, the site is one parcel removed from a permitted 208-unit apartment development. On the east side, the site is adjacent to two parcels on which property owners have requested that the City upzone to accommodate a high-density residential use (HDR/RMF-24). The site is also located just south of a large vacant property that is zoned for a commercial/ mixed-use development. The size and location in an area that is transitioning to higher- density residential and mixed-use make this property very likely to redevelop within the planning period. The 1.93-acre site is currently developed, with one single-family unit at the rear of the property. Only the vacant portion of the property has been used to calculate realistic capacity. The vacant portion of the property (1.4 acres) has a realistic capacity of 27 units. Underutilized Site 2 is located on Santa Ysabel Avenue, one parcel east of El Camino Real. The site is located adjacent to an area planned to transform to mixed and residential uses along El Camino Real. The property backs up to a commercial center (Adobe Plaza) and is adjacent to an apartment complex. The 165 Atascadero Housing Element 10 | F: Resources 0.51-acre property is currently developed with one single-family unit, but the remainder of the property is unimproved. The property has a realistic capacity of 10 units. Table F.6: Underutilized High-Density Residential Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details U 1 049-151- 020 2453 El Camino Real 1.4 HDR/ RMF-24 27 Underutilized Site 1 is located in an area transforming from lower density to high density residential uses. The 1.93-acre site is currently developed with one single-family unit at the rear of the property. Only the vacant portion of the property is used to calculate realistic capacity. The vacant portion of the property (1.4 acres) has a realistic capacity of 27 units. U 2 030-121- 003 7298 Santa Ysabel 0.51 HDR/ RMF-24 10 Underutilized Site 2 is located on Santa Ysabel Avenue one parcel east of El Camino Real. The site is located adjacent to an area that is intended to transform to mixed and residential uses along El Camino Real. The 0.51-acre property is currently developed with one single-family unit, but the remainder of the property is unimproved. The property has a realistic capacity of 10 units. 4. Site Infrastructure and Services Site development potential indicated in the sites inventory is consistent with (and in most cases, lower than) the development capacity reported in the Land Use, Open Space & Conservation Element. Full urban-level services are available to each site in the inventory. Such services are more than adequate for the potential unit yield on each site. Specifically, water and sewer service are available or are programmed to be made available for all the sites included in the inventory. Water and Sewer Infrastructure Water service in the City is supplied by the Atascadero Mutual Water Company (AMWC). AMWC provides water service within and around Atascadero. The water system includes approximately 250 miles of pipeline and 17 active wells that pump from the Atascadero sub-basin of the Paso Robles Ground Water 166 Atascadero Housing Element F: Resources| 11 Basin (both riparian and appropriated Salinas River underflow). AMWC has over 10,000 customer service connections, 3,700 valves, and 1,700 fire hydrants. The 2016 Urban Water Management Plan (UWMP) indicates AMWC has sufficient resources to serve future demands through 2040 based on population projections and reasonably available groundwater and imported water. The 2016 UWMP also clarifies that that lower-income residential demands are included in AMWC’s future demand projections. Due to the increase in the cost of water service to ensure a reliable water supply, the City recognizes that the connection fees for water is critical for the development of affordable housing. Program 3.L requires the City to work with AMWC to explore possible options to ease the burden of water service fees for second units and other affordable housing projects. The City of Atascadero provides wastewater collection and treatment service for a portion of the City’s population, serving an area consisting of approximately 2,000 acres of the roughly 15,000 acres within the City boundary. Approximately 5,000 residential, commercial, and industrial customers are served by the wastewater collection and treatment system. The remainder of the City’s population is served by on-site wastewater treatment systems (septic systems). The City’s Wastewater Division maintains a 1.4 million gallon-per-day (mgd) wastewater treatment facility, over 66 miles of pipeline, and 13 wastewater- pumping stations. The treatment plant operates at approximately 96 percent capacity, experiencing an average daily flow of 1.38 mgd. Average daily flow for residential use is estimated to be 100 gallons per capita per day. Based on the 2020 average household size of 2.43 persons (California Department of Finance), the daily flow is 0.0002 mgd per household. The average daily flow of the remaining RHNA units is estimated to be 0.05 mgd. The City has begun the process of analyzing and defining the project scope for an expanded and enhanced treatment facility. Construction is budgeted and is expected to be completed in 2024. The expansion will be completed during the planning cycle. Minor modifications can also be made to ensure capacity until construction begins on the new facility. The facility will be designed to accommodate anticipated growth through 2024 with opportunities for expansion as needed for growth projections beyond the 20-year design horizon. All sites identified in the sites inventory are located adjacent to existing sewer lines to facilitate connections and are located within the urban services line that identifies the extent of areas serviced by wastewater service or where the City anticipates extending services to in the future. It is anticipated that housing development through the planning period can be accommodated by the existing and, eventually upgraded facility. Dry Utilities All sites in the land use inventory lie within developed areas and have access to full dry utilities. Electricity services in Atascadero are provided by Pacific Gas & Electric (PG&E), which has a 70 kilovolt electrical transmission line that extends north-south from San Luis Obispo through Atascadero and on to Paso Robles and beyond. A substation is located near Atascadero Lake. Two transmission lines also branch out from the substation westerly to Cayucos and Harmony. Electricity is generally available throughout Atascadero through a local distribution system of mostly overhead wires. 167 Atascadero Housing Element 12 | F: Resources Natural gas is provided by the Southern California Gas Company, with natural gas lines extending north- south and east-west from Atascadero. The north-south line follows El Camino Real and U.S. 101, connecting southerly to San Luis Obispo and Santa Maria, and northerly to Paso Robles and beyond. The east-west line generally follows Route 41 east to Shandon. Natural gas is generally available throughout Atascadero through a local distribution system. Additional dry utilities include various telecommunications providers and cable providers and solid waste collection (WM Waste Management). 5. Environmental Constraints The sites inventory analysis reflects land use designations and densities established in the General Plan Land Use, Open Space & Conservation Element. Thus, any environmental constraints that would lower the potential yield (e.g., steep slopes) have already been accounted for. Any additional constraints that would occur on a more detailed site review basis would be addressed as part of the individual project review process. The City’s capacity to meet its regional share and individual income categories are not constrained by any environmental conditions. 6. Financial Resources The City currently utilizes several sources of funding to assist in the provision of quality housing to lower- income residents.  The City’s inclusionary housing program offers the option of paying a fee in lieu of building affordable housing for projects of 10 units or fewer. Fees deposited into the account may be used in the acquisition, construction, or rehabilitation of affordable housing. As of May 2020, the fund balance was $908,000.  The City of Atascadero participates in HUD federal funding programs through the Urban County of San Luis Obispo. The County of San Luis Obispo is the lead agency in administering HUD funding programs for the County and six participating cities of San Luis Obispo, Paso Robles, Atascadero, Morro Bay, Arroyo Grande, and City of Pismo Beach. Administration of the Community Development Block Grant (CDBG) program is divided among the County and the six participating cities, with the County being the lead agency. Administration of the HOME Investment Partnership (HOME) and the Emergency Solutions Grant (ESG) programs is handled by the County of San Luis Obispo. In 2018, the Urban County used $1.9 million in CDBG funds, $1 million in HOME funds, and $148,000 in ESG funds for projects and services that address unmet community needs by providing gap financing for vital services and facilities.  Another source of local housing funding is through the San Luis Obispo County Housing Trust Fund (SLOCHTF), which is a private nonprofit corporation created to increase the supply of affordable housing in San Luis Obispo County for very low-, low-, and moderate-income households. SLOCHTF provides financing and technical assistance to help private developers, nonprofit corporations, and government agencies produce and preserve homes that working families, seniors on fixed incomes and persons with disabilities can afford to rent or buy. Since incorporating in 2003, SLOCHTF has loaned nearly $25 million to assist over 1,000 units of 168 Atascadero Housing Element F: Resources| 13 affordable housing. The loans have also assisted over 200 beds for those in need of shelter and care. 7. Administrative Resources Agencies with administrative capacity to implement programs contained in the Housing Element include the City of Atascadero and local and regional non-profit private developers. The Planning Division within the City of Atascadero Community Development Department takes the lead in implementing Housing Element programs and policies. The Division is responsible for implementing the General Plan by ensuring that development projects are consistent with the General Plan and ensuring that development projects are consistent with current local zoning ordinances and state codes. The City also works closely with non- profit developers to expand affordable housing opportunities in Atascadero. • El Camino Homeless Organization (ECHO) is a non-profit organization serving the homeless population of Northern San Luis Obispo County. The organization also assists those in need with obtaining permanent housing and developing skills necessary to lead a more stable life. ECHO operates a permanent shelter in Atascadero at 6370 Atascadero Avenue, within the City’s Emergency Shelter Overlay Zone. • The Community Action Partnership San Luis Obispo (CAPSLO) provides a wide variety of social services in San Luis Obispo County. CAPSLO operates the Maxine Lewis Memorial Homeless Shelter and the Prado Day Center in San Luis Obispo. They also operate Head Start and Migrant Head Start programs and two health centers in San Luis Obispo and Arroyo Grande. The Energy Conservation division provides weatherization and home repairs throughout the County. • Habitat for Humanity is an international non-profit organization dedicated to partnering with those in need of safe and affordable homes. The San Luis Obispo County Habitat chapter has been active since 1997 and is involved in several development projects throughout the Central Coast. Habitat for Humanity for San Luis Obispo County has built 17 homes: four in Atascadero, one in Cambria, three in Paso Robles, four in Grover Beach, and five in San Luis Obispo. • The Housing Authority of San Luis Obispo County (HASLO) was created to provide housing assistance for the County's lower-income residents. The Housing Authority administers the Housing Choice Voucher (formerly Section 8) rental assistance program and manages public housing developments. The Housing Authority also administers the Tenant Based Rental Assistance (TBRA) Program for the San Luis Obispo Supportive Housing Consortium and established the San Luis Obispo Non-Profit Housing Corporation to take advantage of federal tax credits. The Non-Profit Housing Corporation has since helped with the development of the low- income Atascadero Senior Housing Project in 2008 and owns two housing complexes in Atascadero. • People's Self-Help Housing (PSHH) is a diverse, nonprofit organization committed to furthering opportunities for decent, safe, affordable housing and support services in San Luis Obispo, Santa Barbara, and Ventura Counties. PSHH has two primary programs: Self Help Homeownership Program and a Rental Housing Development and Construction Services Program. Additionally, PSHH administers the Supportive Housing Program, assisting residents with accessing community 169 Atascadero Housing Element 14 | F: Resources services and provides home ownership counseling. PSHH has constructed 15 affordable home- ownership properties and currently owns and operates Atascadero Gardens, a 17-unit affordable rental complex. The purchase of this building in 1999 prevented a pending conversion to market rate units and tenant displacement. Since 2012, PSHH has developed a tract of 24 single-family residential homes in El Camino Oaks subdivision (Oakgrove Phase II) that fell into foreclosure and constructed an 11-unit affordable (very low- and low-income units) subdivision tract on Atascadero Avenue that was purchased from a bankruptcy auction. • Transitional Food and Shelter (TFS) is a charitable organization that operates the Medically Fragile Homeless program, a county-wide service, based in Atascadero and the Atascadero Warming Center which serves those living in Atascadero and surrounding areas. The Medically Fragile Homeless program (MFH) provides small, individual housing, supportive services and case management for the medically fragile homeless in San Luis Obispo County since 2001. The Atascadero Warming Center (AWC) is open November 1st through April 15th when the temperature is forecast to be 40 degrees or less and/or there is a 50 percent chance or greater of rain. The low barrier, behaviorally based center provides meals, clothing and other services through a volunteer effort. 170 Atascadero Housing Element F: Resources| 15 171 Atascadero Housing Element 16 | F: Resources 172 Atascadero Housing Element F: Resources| 17 Table F.7: Sites Inventory Table Site # APN Size (ac.) GP/ Zone Max. Density (du/ac) Existing Use Realistic Capacity (units) Affordability Level Infrastructure Capacity Onsite Constraints SFR 1 049-102-020 0.63 SFR-X/ RSF-Y 1 Vacant 6 SFR/ 6ADU Low/ Moderate/ Above Moderate Yes No 049-102-032 1.17 SFR-X/ RSF-Y 4 Vacant 6 SFR/ 6ADU Low/ Moderate/ Above Moderate Yes No SFR 2 056-181-039 1.30 SFR-X/ RSF-X Vacant 6 SFR/ 6ADU Low/ Moderate/ Above Moderate Yes No HDR 11 049-042-025 1.80 HDR/ RMF-24 24 Vacant 34 Very Low/Low Yes No HDR 2 049-151-005 2.04 HDR/ RMF-24 24 Vacant 39 Very Low/Low Yes No HDR 3 028-192-060 0.67 HDR/ RMF-24 24 Vacant 13 Very Low/Low Yes No 028-192-061 HDR/ RMF-24 24 Vacant Very Low/Low Yes No 028-192-062 HDR/ RMF-24 24 Vacant Very Low/Low Yes No 028-192-063 HDR/ RMF-24 24 Vacant Very Low/Low Yes No HDR 41 030-101-053 0.87 HDR/ RMF-24 24 Vacant 17 Very Low/Low Yes No HDR 51 045-321-024 0.51 HDR/ RMF-24 24 Vacant 26 Very Low/Low Yes No MU 1 049-163-044 1.86 GC/CR 24 Vacant 18 Very Low/Low Yes No MU 2 030-511-001 0.65 GC/CR 24 Vacant 6 Very Low/Low Yes No 173 Atascadero Housing Element 18 | F: Resources Table F.7: Sites Inventory Table Site # APN Size (ac.) GP/ Zone Max. Density (du/ac) Existing Use Realistic Capacity (units) Affordability Level Infrastructure Capacity Onsite Constraints MU 32 030-512-002 2 0.28 GC/CR 24 Vacant 3 Very Low/Low Yes No 030-512-011 2 0.37 GC/CR 24 Vacant 4 Very Low/Low Yes No 030-512-012 0.50 GC/CR 24 Vacant 5 Very Low/Low Yes No MU 4 045-331-014 5.19 MU- PD/CR 24 Vacant 50 Very Low/Low Yes No U 1 049-151-020 1.4 HDR/ RMF-24 24 1 SFR unit– size reflects undeveloped portion 27 Very Low/Low Yes No U 2 030-121-003 0.51 HDR/ RMF-24 24 1 SFR unit 10 Very Low/Low Yes No Note: 1. Subject to the provisions of AB1397: Projects with at least 20% affordable units must be permitted “by-right”. 2. Sites under 0.5 acres are included only if they are part of a larger site under common ownership that functions as a single use. 174 Atascadero Housing Element G: Accomplishments| 1 G. 2014-2019 Housing Element Program Accomplishments This chapter analyzes program performance from the 2014-2019 Housing Element programs. State law (California Government Code Section 65588[a]) requires each jurisdiction to review its Housing Element as frequently as appropriate and evaluate:  The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal  The effectiveness of the Housing Element in attainment of the community’s housing goals and objectives  Progress in implementation of the Housing Element This evaluation provides valuable information on the extent to which programs have achieved stated objectives and whether these programs continue to be relevant to addressing current and future housing needs in Atascadero. The evaluation provides the basis for recommended modifications to policies and programs and the establishment of new housing objectives. Following the evaluation table, the quantified objective performance is summarized. Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1 -1: Continue street and infrastructure improvement projects to benefit existing high-density residential areas. Provision of infrastructure in high-density areas of the City continues to be a priority for the City. This program will remain in the Housing Element. Program 1.1-2: Continue to require the use of specific plans for residential projects of 100 or more units. This program applies to single-family residential developments only. While the specific plan requirement will remain as a program, the City continues to review each project to determine the most efficient and effective process to meet our housing and development goals. This program will remain in the Housing Element. Program 1.1-3: Continue to allow manufactured housing and group housing in accordance with State law. Seventeen modular homes have been installed as permanent residences since the 2104 Housing Element update. The City updated definitions for clarity and consistency with state law. Group housing is provided throughout the City but is not tracked at this time. The City treats manufactured homes as a single-family dwelling and permitted in all zones that allow single-family housing. This program has been implemented and is removed from the Housing Element. Program 1.1-4: Support the extension and expansion of sewer service for the Eagle Ranch annexation area by allocating the funding necessary. The City is currently updating the wastewater treatment plant facilities plan. The Eagle Ranch project has been withdrawn. This program is no longer appropriate since the area is no longer being annexed. While this area remains within the city’s sphere of influence, development of Eagle Range within the planning period is unlikely. The program is removed. 175 Atascadero Housing Element 2 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1-5: Continue to allow mixed residential and commercial development and promote second- and third-story residential development in the City’s downtown zoning districts. Taking into account market conditions and development costs, the City will provide, when possible, developer incentives such as expedited permit processing and fee deferrals for units that are affordable to lower income households. The City will publicize these incentives on the City’s website (www.atascadero.org) within one week of a confirmed decision to make them available in a timely fashion. The La Plaza project was approved in 2017 and includes 42 residential units, 38 of which are studio and one-bedroom units equating to affordable-by-design units. The City has also approved two other mixed-use developments resulting in a total of six units. To date, the City has met its projected unit goal for mixed-use development. Provision of housing in the City’s Downtown remains an important City goal. This program will remain. Program 1.1-6: Adopt a Rural Residential Zone in the Zoning Regulations consistent with its designation on the Zoning Map and standards that distinguish it from the Residential Suburban zone (to facilitate the development of a variety of housing types). The City is reviewing all zoning designations in preparation for the upcoming comprehensive General Plan update. This program will remain in the Housing Element and be addressed as part of the upcoming General Plan update. Program 1.1-7: Continue to encourage, where suitable, Planned Unit Development (PD) Overlay Zones, particularly the PD-25 zone of small lot subdivisions, for higher density attached or row- house style housing in the RMF-10 and RMF-16 zoning districts. Staff continues to encourage use of PDs for high-quality design and flexibility of development standards. Staff is looking at allowing small lot subdivisions by right as part of the next General Plan update. Since 2014, over 80 units have been approved through the PD overlay process. The RMF-16 zone has been amended to allow development at a density of 24 units per acre and named RMF-24. An updated version of this program is included in this Housing Element. 176 Atascadero Housing Element G: Accomplishments| 3 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1-8: Continue to maintain an affordable housing density bonus ordinance that establishes procedures for obtaining and monitoring density bonuses in compliance with State law. Following adoption the City shall regularly update the ordinance to be in compliance with Government Code §65915 Ordinance. The City has adopted an ordinance for state density bonus projects and continues to monitor changes in the law to provide updates as needed. The City issued over 60 residential units in accordance with state density bonus law. The City will adopt an updated density bonus ordinance to be consistent with state law. This density bonus program is an important component of the City’s affordable housing strategy and will remain in the Housing Element, including an action to update the City’s density bonus ordinance to remain in compliance with Government Code §65915. Program 1.1-9: Continue to monitor the impact of the City’s current inclusionary housing policy on production of market rate housing in response to market conditions. If the policy presents an obstacle to the development of the City's fair share of regional housing needs, the City will revise the policy accordingly. The City is reviewing the inclusionary housing policy and looking at ways to encourage development of residential units that are affordable-by-design, including reducing impact fees for smaller units and capping unit sizes for high-density residential projects. There are economic challenges to requirements for affordable housing production within smaller projects and infill development, especially units that are deed restricted and allow for minimal equity gains at the low- and very low-income level. The state is also focused on streamlining housing projects, limiting the ability of cities to apply increased affordability standards to housing projects through discretionary action. As part of the City's Housing Element update, options for affordable impact fees and restructuring of the existing Inclusionary Housing Policy are being contemplated. This program is an important component of the City’s affordable housing strategy and will remain in the Housing Element; it will be folded into a combined inclusionary housing program. Program 1.1-10: Adopt an inclusionary housing ordinance that requires residential developments to provide deed- restricted, affordable units or an in- lieu fee. The inclusionary ordinance shall be consistent with state rent control laws for rental housing. The City will explore crafting an affordable housing ordinance as a part of its strategic planning initiatives. The current policy allows for use of the state Density Bonus program in lieu of the City's more stringent affordable housing requirement. Because density bonus law requires only moderate level deed restriction of for-sale units, the City is limited in its ability to require low or very-low income units at this time. This program is an important component of the City’s affordable housing strategy and will remain in the Housing Element as part of a combined inclusionary housing program. 177 Atascadero Housing Element 4 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–11: To encourage the development of second units, the City will evaluate the development standards and update the Zoning Regulations for second units (secondary residential units). For example, the City will explore incentives such as eliminating the covered parking requirement for a secondary residential unit. The City is in the process of updating the ordinance to be consistent with state law. Since 2014, the City has issued over 25 permits for ADUs. Due to the numerous changes to state laws regulating ADU development (previously known as second units), the City will adopt a revised ADU ordinance. This program is an important component of the City’s affordable housing strategy and will remain in the Housing Element with strengthened actions to promote development of ADUs. Program 1.1–12: To encourage the development of second units, the City should consider reduced development impact fees for second units as part of an AB 1600 study. The City will also work with Atascadero Mutual Water Company to investigate the possibility of reductions to water connection fees for second units. Part of the City's current development impact fee study efforts includes examining development impact fees in relation to ADUs and unit size to provide incentives for the development of units that are affordable-by-design. It is also the City's understanding that the Atascadero Mutual Water Company continues to evaluate and reduce water meter fees for ADUs. Recent state law addresses impact fee exemptions or limitations based on the size of the ADU. A revised ADU ordinance will address impact fees consistent with state law. This program is removed and replaced with an updated program addressing ADU development. Program 1.1–13: The City will consider an amnesty program that would reduce or eliminate fees for unpermitted second units. The City's fees for unpermitted construction continue to be nominal. Most permits submitted to legalize unpermitted second units relate to the conversion of a permitted guesthouse to a second unit. Fees for these permits are relatively low as development impact fees were paid for all guesthouse upon initial construction. The City had an amnesty program that eliminated fees related to non- permitted construction and issued approximately 21 amnesty permits between 2004 and 2008. Since 2014, the City has legalized approximately seven previously unpermitted ADUs. Recent state law addresses unpermitted ADUs. A revised ADU ordinance will address this topic consistent with state law. This program is removed and replaced with an updated program addressing ADU development. 178 Atascadero Housing Element G: Accomplishments| 5 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–14: Continue to maintain Chapter 12 of the Zoning Regulations (Condo Conversion Ordinance) in order to reduce the impacts of condo conversions on lower cost rental housing. Preserving lower cost rental housing is an important component of the City’s affordable housing strategy. This program will remain in the Housing Element. Program 1.1–15: Continue to work with non-profit agencies, such as the County Housing Authority, Habitat for Humanity, the San Luis Obispo County Housing Trust Fund and Peoples’ Self-Help Housing, to preserve existing affordable housing and to pursue funding for new units for extremely low-, very low-, low-, and moderate-income families. Staff has worked with Peoples’ Self-Help Housing and produced 34 affordable housing units (Atalaya Street development – 24 homes 2014/2015, Triangle parcel – 11 units 2017) and worked with Corporation for a Better Housing to produce 60 very low- and low-income units since 2014. The City continues to work with non-profit organizations to provide opportunities for extremely low-, very low-, low-, and moderate-income families. The City utilizes funds from the inclusionary housing fund to assist with these projects. This program is an important component of the City’s affordable housing strategy and will remain. Program 1.1–16: Continue to encourage developers to work with agencies such as the California Housing Finance Authority (CHFA) and the Department of Housing and Urban Development (HUD) to obtain loans for development of new multi-family rental housing for low income households. This will be accomplished by working with appropriate non-profit organizations, such as People’s Self Help Housing and the San Luis Obispo County Housing Trust Fund to identify opportunities. Staff has worked with various affordable housing developers to produce affordable housing. The City continues to work with non-profit organizations to provide opportunities for extremely low-, very low-, low-, and moderate-income families. The City provides necessary assistance in completing applications for funds and utilizes funds from the City’s inclusionary housing fund to assist with these projects. This program is an important component of the City’s affordable housing strategy and will remain. 179 Atascadero Housing Element 6 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–17: Continue to contract with the San Luis Obispo Housing Authority for administration of the Section 8 housing voucher program. The City utilizes this relationship for program implementation and income verifications, and will apply for additional Section 8 vouchers, as appropriate. The City continues its contract with the San Luis Obispo Housing Agency for the Housing Choice Voucher program (Section 8). The Housing Choice Voucher program (Section 8) is an important affordable housing resource for City residents and will remain. Program 1.1–18: Amend the Zoning Regulations to allow a waiver of the two-story height limit in the RMF Zone through the Minor Use Permit process. This option applies to projects that are not using the Planned Development option. Staff has yet to commence this ordinance. This will be reviewed and carry over into next housing element cycle. Currently, height waivers are processed with a Minor CUP. A modified version of this program is included in the Housing Element. Program 1.1–19: To encourage and facilitate development of a variety of housing types, the City should consider amending the Zoning Regulations to establish standards, policies, and procedures for efficiency or micro detached units consistent with the California Building Code. The ordinance should provide a definition of efficiency or micro detached unit as a single habitable living unit, separate from and not including a single-room occupancy unit. The building code was updated to include minimum standards for efficiency units. Facilitating residential development of a variety of housing types is an important City goal. The City is considering objective design standards that encourage a variety of housing types and limiting the size of residential units on multi-family zoned properties to encourage units that are affordable by design. This program is removed and is replaced with a program addressing objective design standards. 180 Atascadero Housing Element G: Accomplishments| 7 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–20: To reduce constraints to multi-family housing production the City will amend the Zoning Regulations to modify Conditional Use Permit requirements for multi-family housing. A CUP will be required only for multi-family projects greater than 50 units. This will not affect the ‘by right’ approval of multi-family projects in the RMF-24 zone, which are not subject to a CUP or a Specific Plan. The City will periodically evaluate the approval process for projects requiring a CUP and monitor the impact the requirement has on project certainty, cost, and approval time. Staff has yet to commence this ordinance. Consideration of amending the Conditional Use Permit requirements for multi- family housing will occur during the upcoming Housing Element planning period. This approach does not currently affect the City’s ability to meet the RHNA for the current planning period as the City has eliminated the CUP requirement for RMF-24 properties identified in the Housing Element. This program will remain. 181 Atascadero Housing Element 8 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–21: The housing needs of persons with disabilities, including persons with developmental disabilities are typically not specifically addressed by Title 9 Regulations. The housing needs of persons with disabilities, in addition to basic affordability, range from slightly modifying existing units to requiring a varying range of supportive housing facilities. In order to assist in the housing needs for persons with Developmental Disabilities, the City will implement the following programs: • The City shall seek State and Federal monies, as funding becomes available, in support of housing construction and rehabilitation targeted for persons with disabilities, including persons with developmental disabilities. • The City shall provide regulatory incentives, such as expedited permit processing and reduced fee, to projects targeted for persons with disabilities, including persons with developmental disabilities. • The City shall work with local organizations such as the Tri- Counties Regional Center and Transitions Mental Health Association to implement an education and outreach program informing families within the City of housing and services available for persons with disabilities, including developmental disabilities. The program will include the development of an informational brochure available on the City’s website or at City Hall. The City works diligently to identify grant and other funding opportunities to support housing rehabilitation. The City is also in contact with multiple non-profit organizations and makes available to them pre-planning and other services to streamline these types of projects. This program will remain. 182 Atascadero Housing Element G: Accomplishments| 9 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 2.1–1: As new projects, code enforcement actions, and other opportunities arise, the City will investigate ways to meet its housing needs through rehabilitation and preservation of existing units (see also Program 4.3.3 for potential rehabilitation funding). Utilize code enforcement to identify housing maintenance issues and expedite rehabilitation of substandard and deteriorating housing by offering technical assistance to homeowners and occupants. While this is on-going, the City lost its primary funding tool when the RDA was dissolved. The City will continue to find ways to rehabilitate structures. City staff will be exploring block grants and other funding mechanisms to achieve this goal. Housing maintenance and rehabilitation is an important City goal and as such, this program remains in the Housing Element with modified objectives. Program 2.1–2: Continue to participate in federal grant programs, such as Community Development Block Grants (CDBG), to obtain loans and/or grants for housing rehabilitation. Apply an appropriate amount of the City’s annual share of CDBG funds toward rehabilitation of existing housing units The City will continue to participate in obtaining these funds and will seek how to gain additional grants with the loss of the RDA. This program remains. Program 2.1–3: Continue to maintain the sliding density scale for sloped lots in the Zoning Regulations. The City uses a sliding scale of density for sloped lots and plans to continue this approach. Density adjustments by slope are codified in the City’s Zoning Regulations. This program is implemented and as such is removed from the Housing Element. 183 Atascadero Housing Element 10 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 2.1–4: The City shall continue to monitor the status of subsidized affordable projects, rental projects, and mobile homes in the City and provide technical and financial assistance, when possible, to ensure long-term affordability. This will involve contacting owner/operators of subsided projects annually to determine the status of the units and their potential to convert to market- rate. If projects are at-risk, the City will maintain contact with local organizations and housing providers who may have an interest in acquiring at-risk units, and, when feasible, keep track of and apply for funding opportunities to preserve at- risk units, and assist other organizations in applying for funding to acquire at-risk units. Based on City records and information from the California Housing Partnership Corporation, in the next 10 years (2013- 2023) no assisted housing developments in Atascadero will be at risk of losing affordability. City staff continues to monitor the status of affordable housing rental units and for-sale units in partnership with the SLO County Housing Authority. An updated version of this program remains in the Housing Element, as preservation of affordable housing is an important goal for the City. Program 2.2–1: Continue to implement the Historic Site (HS) overlay zone to help preserve and protect historic Colony homes. The City will continue to maintain this overlay zone to preserve and protect historic colony homes. This program will remain in the Housing Element, as preservation of historic homes is an important City goal. Program 2.2–2: Continue to maintain a GIS based map of historic buildings and sites. The City continues to maintain GIS data regarding historic buildings and sites. This program will remain in the Housing Element and has been consolidate into a single program addressing historic home preservation. Program 3.1–1: Promote environmentally sustainable building practices that provide cost savings to homeowners and developers City staff continues to work with developers and homeowners to avoid environmental impacts and promote sustainable building practices. This program will remain in the Housing Element as part of a comprehensive energy conservation program. Program 3.1–2: Make available in the Community Development Department brochures from PG&E and others that detail energy conservation measures for new and existing buildings. In partnership with PG&E and San Luis Obispo Green Build, the City provide brochures available to homeowners that detail energy conservation. This program will remain in the Housing Element as part of a comprehensive energy conservation program. 184 Atascadero Housing Element G: Accomplishments| 11 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 3.1- 3: Continue to strictly enforce the State energy standards of Title 24. The City's Building Department continues to enforce Title 24 requirements upon review of building plans that require energy reports. This program will remain in the Housing Element as part of a comprehensive energy conservation program. Program 3.1- 4: Enhance partnerships with Solar Providers for installation of PV panels and other alternative electrical services for low-income households. The City will continue to partner with non-profits by providing housing lists and affordable unit locations to assist in targeting these income groups. Recent changes to state law require all newly constructed homes to be powered by solar power. This program will remain in the Housing Element as part of a comprehensive energy conservation program. Program 4.1–1: Cooperate with non-profit groups and local religious organizations to allow the temporary use of churches as homeless shelters. The City continues to encourage local churches to provide temporary shelters for the homeless population. The City adopted Appendix O for emergency shelters during the latest Building Code Update cycle. A local declaration of a Shelter Crisis requires that the City suspend the typical building code standards to the extent that strict compliance would hinder or prevent the mitigation effects of the shelter crisis. The State developed Appendix O as a way of establishing certain minimum standards that must remain in effect for temporary or permanent structures during the declared crisis period. This program will remain in the Housing Element. Program 4.1–2: Continue to support local motel voucher programs for temporarily displaced and extremely low-income persons. The motel voucher program is funded through the City’s CDBG funding. Motel vouchers are available to aid residents experiencing emergency situations, such as a house fire, in finding temporary housing. The City works with non- profit organizations (such as Loaves and Fishes) to aid the residents in need and provide technical support for the motel voucher program. The City will continue to work with local non-profits and obtain CDBG grant funding for this program. This program will remain in the Housing Element and will be consolidated into a single program addressing homeless resources. 185 Atascadero Housing Element 12 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 4.1–3: Continue to allow small (6 or fewer) group housing (residential care facilities) by right in all residential zones and large (7 or more) residential care facilities in the Residential Multi Family (RMF) zone. The City should also consider allowing large residential care facilities by right in additional residential, commercial, public, and/or industrial zones, such as LSFX and RSFX zones, where sewer is available. The City continues to support proper permitting of group housing in accordance with state law. Residential care facilities serving six or fewer residents (small) are permitted by right in all residential zones. Residential care facilities serving more than six residents (large) are conditionally permitted in most residential zones. This program has been implemented and is removed from the Housing Element. Program 4.1–4: Consider amending the Zoning Regulations to expand the Emergency Shelter (ES) Overlay Zone to other appropriate properties, subject to the same or similar, as appropriate, locational and operational criteria as outlined in the Zoning Regulations. City staff will continue to monitor the City's homeless shelter for consistency with state housing policy. This program is included in the Housing Element with an expanded scope to evaluate the Emergency Shelter (ES) Overlay Zone for continued compliance with all applicable state laws. 186 Atascadero Housing Element G: Accomplishments| 13 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 4.1–5: Continue to provide information and complaint referral services for those persons who believe they have been denied access to housing because of their race, religion, sex, marital status, ancestry, national origin, color, or disability, family status, sexual orientation, source of income, or political affiliation. The City will educate Community Development Department staff on how to respond to complaints received regarding potential claims of housing discrimination. Staff will be trained to provide the person with an informational handout detailing the process of reporting and filing a claim through the California Department of Fair Employment and Housing. The staff will notify the City Manager and the City Attorney’s office of the intent to file a claim and will be available to provide assistance to the person filing a claim, as needed. Information on Fair Housing law and how to file a claim will also be made available on the City’s website and at the Community Development Housing discrimination information is provided at City Hall. Fair housing is an important issue to the City, and this program will remain in the Housing Element. An additional program to affirmatively further fair housing has been added. 187 Atascadero Housing Element 14 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 4.1–6: The City will amend the Zoning Regulations to ensure that permit processing procedures for farmworker housing do not conflict with Health and Safety Code Sections 17021.5, which states that farmworker housing for six or fewer employees should be “deemed a single-family structure with a residential land use designation”, and 17021.6 which states that for "employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single- family or household...no conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing of this employee housing that is not required of any other agricultural activity in the same zone”. This was completed as a part of the Land Use definition update in 2017. This program has been implemented and removed from the Housing Element. Program 4.2–1: Continue to ensure full compliance with the California Disability Guidelines and enforce the complementary provisions of the Uniform Building Code. The Zoning Regulations will be evaluated on an ongoing basis and amended as necessary, to ensure ADA compliance and remove governmental constraints on the production of housing for persons with disabilities. City staff continues to comply with ADA standards for new occupancy and change of occupancy building projects. ADA compliance is a routine function of the City’s planning and development review and as such, this program is not needed in the Housing Element. This program has been removed. Program 4.3–1: Adopt a policy to determine allocation of the City Affordable Housing In-Lieu funds to support the creation of new affordable housing units in Atascadero. This program has not yet been implemented but remains in the Housing Element as a single, consolidated program addressing funding sources for affordable and special needs housing. 188 Atascadero Housing Element G: Accomplishments| 15 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 4.3–2: Work with nonprofits and identify funding to address the housing needs of extremely low-income households and totally and permanently disabled persons. RDA funds are no longer available since the agency no longer exists. City staff continues to work with non-profits for any grant funding opportunities. This program will remain in the Housing Element as a single, consolidated program addressing funding sources for affordable and special needs housing. Program 5.1–1: Continue to facilitate understanding of the impacts of economic issues, employment, and growth on housing needs among financial, real estate, and development professionals in formalized settings, such as the Economic Round Table. City staff attend economic roundtables and other events as continuing education of these impacts. This program will remain in the Housing Element as part of a housing finance constraints program to encourage identification of non- governmental constraints and to facilitate production of affordable housing. Program 5.1–2: Continue to work with development community to identify and mitigate any constraints on access to financing for multi-family development. The City will conduct regular stakeholder meetings with members of the development community including representatives from local non-profit housing organizations, developers, and real estate brokers to solicit feedback. City Staff continues to work with developers, key stakeholders, and property owners on overcoming constraints in project design to help facilitate financing. This program will remain. Program 5.2–1: Continue to monitor and evaluate development standards and advances in housing construction methods. As City staff identifies issues with the Municipal Code and advance construction methods, the City will amend the code as necessary. This program will remain in the Housing Element to encourage identification and possible mitigation of non-governmental constraints. Program 5.2–2: Continue to track the affordability of housing projects and progress toward meeting regional housing needs. Reports should be provided semi- annually to the Planning Commission and annually to the City Council and the California Department of Housing and Community Development. The City tracks all housing projects and provides status updates to both the Council and Planning Commission. This program is folded into an adequate sites program addressing housing resources to meet the 2018-2028 RHNA. 189 Atascadero Housing Element 16 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 6.1–1: Continue to consolidate all actions relating to a specific project on the same Council or Commission agenda Staff continues to consolidate all actions relating to a specific project on the same Council or Commission agenda for ease of tracking and to reduce the project review timeframe. This program will remain as part of a larger project streamlining program. Program 6.1 – 2: Continue to review minor project modifications through the Design Review Committee and more substantial changes through a conditional use process. Staff continues to use the DRC to make determinations on minor project changes. This program will remain as part of a larger project streamlining program. Program 6.1–3: Continue to review and revise local review procedures to streamline the process The City created the Design Review Committee in 2010 to help with project streamlining and review. The DRC has been helpful in working out issues that normally the Planning Commission would have addressed. This program will remain in the Housing Element as part of a larger project streamlining program. Program 6.1–4: Continue to maintain pre-approved stock development plans to streamline the plan check process. Stock plans are available for projects that include the construction of three or more of the same unit. This process allows for cost and time savings through the process. The City is also participating in regional efforts to create and make available stock development plans for Accessory Dwelling Units (ADUs). This program will remain in the Housing Element as part of a larger project streamlining program. Program 6.1–5: Provide pre-application technical assistance to affordable housing providers to determine project feasibility and address zoning compliance issues in the most cost- effective and expeditious manner possible. The City provides pre-application and technical assistance to all projects when requested. This program is an important tool for facilitating development of affordable housing and will remain. Program 6.1–6: Provide, when possible, developer incentives such as expedited permit processing and fee deferrals for units that are affordable to lower income households. Atascadero will promote these incentives to developers on the City’s website (http://www.atascadero.org) and during the application process. The City's process streamlining is already expediting projects. Developers can defer development impact fees until final occupancy. This program is an important tool for facilitating development of affordable housing and will remain in the Housing Element and folded into several programs related to facilitating housing production. 190 Atascadero Housing Element G: Accomplishments| 17 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 6.1–7: The City should consider amending the Zoning Regulations to allow single-room occupancy units (SROs) by right in the Residential Multi- Family (RMF) zone The City will review and if needed revise the SRO siting regulations as part of a future Zoning Regulations update. This program will remain in the Housing Element. Program 6.1–8: To encourage affordability by design, the City shall modify the Capital Facility Fee schedule to index fees based on size of unit, providing lower rates for small units. Indexed rate shall apply to apartments and second units. By 2015 The City has solicited a proposal for completion of Capital Facility Fee study; work is underway (Spring 2020). This program remains in the Housing Element and is folded into a single Capital Facility Fee program. Program 6.1–9: The City shall continue to monitor impact fees and the Capital Facility Fee schedule to identify barriers to housing development, particularly affordable units. If constraints are identified, the City shall revise the fee schedule accordingly. The City has solicited a proposal for completion of this effort. The consultant will look at proposals for encouraging residential units that are affordable-by-design. This program remains in the Housing Element and is folded into a single Capital Facility Fee program. Program 6.2.1 1: Following amendment of the General Plan Conservation and Safety Elements to comply with AB 162 related to floodplain mapping, the City will amend the Housing Element, if needed, for consistency. By 2023 This program has been completed as a part of the 2014-2019 Housing Element update. This program has been implemented and removed. Table G.2 summarizes the quantified objectives contained for the 2014-2019 Housing Element and compares the City’s progress toward fulfilling these objectives. The City recognizes that it had limited resources to address the varied affordable housing needs in the community. As part of the 2014-2019 Housing Element, the City established a set of quantified objectives for housing construction, rehabilitation, and preservation. The City made significant progress towards the construction and conservation goal. The City’s rehabilitation goals, however, fell short due to the loss of its primary rehabilitation funding tool when the RDA was dissolved. The City will continue to find ways to rehabilitate structures. City staff will be exploring alternative funding mechanisms to achieve this goal.  The construction objective represents the City’s remaining RHNA for the 2014-2019 planning period.  The rehabilitation objective represents objectives for code enforcement rehabilitation as well as participation in rehabilitation grants. 191 Atascadero Housing Element 18 | G: Accomplishments  The conservation objectives represent conservation and expansion of existing affordable housing. Table G.2: Summary of 2014-2019 Quantified Objectives and Progress Objectives Income Levels Total Extremely Low Very Low Low Moderate Above Moderate Construction Objectives Goal 49 49 62 69 164 393 Progress 0 (0%) 48 (98%) 28(45%) 178(258%) 308(188%) 562 Rehabilitation Objectives Goal 7 13 55 55 0 130 Progress -- -- -- -- -- 0 Conservation Objectives Goal 3 2 15 5 -- 25 Progress 71 (355%) -- -- 71 192 Atascadero Housing Element X: Appendix| 1 Appendix A Public Outreach Contact List 193 Atascadero Housing Element 2 | X: Appendix Organization/Name Contact Information Atascadero Chamber of Commerce 805-466-2044 info@atascaderochamber.org Atascadero Association of Realtors AAORstaff@AtascaderoRealtors.com (805) 466-9200 Atascadero Community Link (805)466-5404 http://www.linkslo.org/ Atascadero Mutual Water Company (AMWC), John Niel lhalderman@amwc.us Atascadero Unified School District 805-462-4200 California Department of Housing and Community Development (HCD) (Tom Brinkhuis) 916.263.6651 Tom.Brinkhuis@hcd.ca.gov California Department of Transportation (Caltrans) Info-d5@dot.ca.gov (805) 549-3111 Central Coast Commission for Senior Citizens (805) 925-9554 seniors@KCBX.net City of San Luis Obispo, John F Rickenbach JFRickenbach@aol.com City of Paso Robles, Katie Banister KBanister@prcity.com Community Action Partnership, San Luis Obispo (CAPSLO) (805) 544-4355 CAPSLO hotline@capslo.org Community Church of Atascadero (Rev. Heather Branton) ccauccpastor@gmail.com Corporation for Better Housing (818) 905-2430 maria@corpoffices.org Darren Thomas, Adco Design Inc. darren@adco.biz El Camino Homeless Organization (ECHO) (805) 462-3663 wlewis@echoshelter.org Federal Emergency Management Agency Gregor.blackburn@fema.dhs.gov Habitat for Humanity info@hfhsloco.org 805-782-0687 Housing Authority San Luis Obispo (HASLO) (805) 543-4478 info@haslo.org nguzman@haslo.org Homeless Services Oversight Council (HSOC) San Luis Obispo County SS_HomelessServices@co.slo.ca.us Housing Trust Fund, San Luis Obispo County info@slochtf.org Independent Living Resource Center, Inc. (ILRC), Jerry Mihaic info@ilrc-trico.org JMIHAIC@ILRC-TRICO.org Local Agency Formation Commission (LAFCO) DChurch@SLOLAFCO.com 805.781.5795 North County Connection, Susan Warren 805.462.8600 INFO@NCCSLO.ORG info@northcountyconnection.com North County Women’s Shelter 805-461-1338 Northern Chumash Tribe Mona Olivas Tucker, Chairwoman olivas.mona@gmail.com 194 Atascadero Housing Element X: Appendix| 3 Organization/Name Contact Information People’s Self Help Housing (805) 781-3088 info@pshhc.org sherylf@pshhc.org morgenb@pshhc.org Salinan Tribe of Monterey and San Luis Obispo Counties, Fredrick Segobia info@salinantribe.com Salvation Army (805) 544-2401 Elaine.Mansoor@usw.salvationarmy.org San Luis Obispo Council of Governments (SLOCOG), Sara Sanders ssanders@slocog.com pio@slocog.org JDinunzio@slocog.org San Luis Obispo County Air Pollution Control District (APCD) (805) 781-5912 info@slocleanair.org San Luis Obispo County Housing Trust Fund (SLOHTF) (805) 543-5970 info@slochtf.org San Luis Obispo County Planning and Building (805) 781-5600 chanh@co.slo.ca.us asingewalg@co.slo.ca.us lhoffman@co.slo.ca.us SLOCo Yimby, Krista Jeffries slocoyimby@gmail.com Southern California Gas Company (SoCalGas) dceja@semprautilities.com Transitions Mental Health Association (THMA) (805) 540-6500 info@t-mha.org Tri-Counties Regional Center (805) 461-7402 Tri-counties@tri-counties.org Transitional Food and Shelter 805-466-5404 jwilshusen@atascadero.org Loaves and Fishes contact@atascaderoloaves.org 805-461-1504 Independent Living Resource Center (805) 462-1162 Atascadero Land Preservation Society (ALPS) info@supportalps.org Developers/Realtors/Consultants/Brokers/Misc. AM Roofing am.roofing@yahoo.com Cal Coastal Properties (805) 242-6202 info@calcoastalslo.com Century 21 Hometown Realty 805.461.1121 bonniechomes@gmail.com Dawn.Espana@c21home.com richardshannonc21@gmail.com Economic Vitality Corporation info@sloevc.org (805) 788-2012 Home Builder’s Association of the Central Coast (805) 546-0418 LHatcher@hbacc.org John Rickenbach Consultants JFRickenbach@aol.com (805) 610-1109 195 Atascadero Housing Element 4 | X: Appendix Organization/Name Contact Information The Laughlin Company info@laughlincompany.com Many Figs Holdings and Development, Scott Newton scott@manyfigs.com Midland Pacific Homes jmoresco@gmail.com Placeworks asinsheimer@placeworks.com Planning Solutions, Pam Jardini planningsolutions@charter.net Roberts Engineering, Tim Roberts tim@robertsenginc.com RRM info@rrmdesign.com (805) 543-1794 Semmes & Co. Builders, Inc. (805) 466-6737 info@semmesco.com Jessicas@semmesco.com Shea Homes Customerservice@sheahomes.com SLO Plastering keith@sloplastering.com Sphere Real Estate marty@spherepartnersre.com Transitional Food and Shelter, Jan Maitzen maitzenj@gmail.com Vivian Hanover Ventures Vivian@vhvrealestate.com Z Villages zvillagesmanagement@gmail.com mike@zvillages.com max@zvillages.com jordan@zvillages.com Eric Cleveland PO Box 552 Santa Margarita, CA 93453 ercleve@msn.com Sean Knoph seatomur@sbcglobal.net David Athey david_athey@sbcglobal.net Mike Frederick PO Box 573 Atascadero, CA 93423 eagle1@mfpaving.com Kent Williams kentwilliams9255@gmail.com Liza Neville Olson sowyablue1@juno.com Myrna Wood mybizzwood@gmail.com Scott Newton, Property Owner scott@manyfigs.com Steve Petrowsky steve@petrowsky.com 196 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov September 21, 2020 Phil Dunsmore, Director Community Development Department City of Atascadero 6500 Palm Avenue Atascadero, CA 93422 Dear Phil Dunsmore: RE: Review of the City of Atascadero’s 6th Cycle (2020-2028) Draft Housing Element Thank you for submitting the City of Atascadero’s (City) draft housing element received for review on July 23, 2020 along with revisions received on September 14 and 21, 2020. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. The draft element, incorporating the revisions submitted, meets the statutory requirements of State Housing Element Law. The housing element will comply with State Housing Element Law (Article 10.6 of the Gov. Code) when it is adopted, submitted to, and approved by HCD, in accordance with Government Code section 65585, subdivision (g). To remain on an eight-year planning cycle, the City must adopt its housing element within 120 calendar days from the statutory due date of December 31, 2020 for San Luis Obispo Council of Governments localities. If adopted after this date, Government Code section 65588, subdivision (e)(4), requires the housing element be revised every four years until adopting at least two consecutive revisions by the statutory deadline. For more information on housing element adoption requirements, please visit our website at: http://www.hcd.ca.gov/community-development/housing-element/housing- element-memos/docs/sb375_final100413.pdf. Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. 197 Phil Dunsmore, Director Page 2 Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. HCD appreciates the hard work and dedication the City’s housing element team and looks forward to receiving the adopted housing element. If you have any questions or need additional technical assistance, please contact DC Navarrette, of our staff, at David.Navarrette@hcd.ca.gov. Sincerely, Shannan West Land Use & Planning Unit Chief 198 9/3/2020 MIG, Inc. Mail - FW: housing element https://mail.google.com/mail/u/0?ik=cd7c8942a8&view=pt&search=all&permthid=thread-f%3A1676848914603480312&simpl=msg-f%3A16768489146…1/4 Genevieve Sharrow <genevieves@migcom.com>FW : housing element 1 messageKelly Gleason <kgleason@atascadero.org>Thu, Sep 3, 2020 at 2:15 PMT o: Genevieve Sharrow <genevieves@migcom.com> K elly Gleason S enior Planner | City of Atascadero 8 05.470.3446 | k gleason@atascadero.org Due t o restricons under the County of San Luis Obispo Local Emergency Order and Regulaon NO. 4 COVID 19, City Hall is t emporarily closed to the public. Essenal services are sll in operaon. Community Development staff will be available by phone (805) 461-5000, email, and b y appointment only for front counter services . W e will respond as soon as possible to your request. Thank you f or your paence! F rom: Phil Dunsmore < p dunsmore@atascadero.org > S ent: Tuesday, August 18, 2020 10:02 AM T o: Kelly Gleason < k gleason@atascadero.org > S ubject: FW: housing element P hil Dunsmore, Community Development Director C ITY OF ATASCADERO C ommunity Development Dept. 6 500 Palma Ave., Atascadero CA 9 3422 D irect (805) 470-3488 | Office (805) 461-5035 D irect Fax: (805) 470-3489 | Office Fax (805) 461-7612 w ww.atascadero.orgD edicated to Atascadero’s character and safety by helping people plan and build quality projectsD ue to restricons under the County of San Luis Obispo Local Emergency Order, City Hall connues to remaint emporarily closed to the public. Essenal services are sll in operaon and we are processing permits and performing 199 9/3/2020 MIG, Inc. Mail - FW: housing element https://mail.google.com/mail/u/0?ik=cd7c8942a8&view=pt&search=all&permthid=thread-f%3A1676848914603480312&simpl=msg-f%3A16768489146…2/4 inspecons. Community Development staff will be available by phone (805) 461-5000 and email, and will respond as s oon as possible to your request. F rom: Max Zappas < m ax@zvillages.com > S ent: Tuesday, July 28, 2020 5:27 PM T o: Susan Funk < s funk@atascadero.org > ; Charles Bourbeau < c bourbeau@atascadero.org > ; Heather Moreno <h moreno@atascadero.org > ; Phil Dunsmore < p dunsmore@atascadero.org > ; Heather Newsom <h newsom@atascadero.org > ; Roberta Fonzi < r fonzi@atascadero.org > ; Michael Zappas <m ike@zvillages.com > ; Zoe Zappas < z oe@zvillages.com > ; Rachelle Rickard < r rickard@atascadero.org >S ubject: housing element Dear Mayor , City Council, and Community Development Director, Below are my thoughts and recommendations upon reviewing the draft housing element. I hope you will give thought and consideration to this input, it is very hard to deliver housing as it is in California given all of the environmental constraints and high construction costs but I think the following 5 points could really help move the needle in our wonderful community . Thank you in advance for your time and consideration, I would love to sit down or speak with each of you individually , please feel free to reach out if you have any questions or want to gain more insight from a developer's perspective. 1. In section B "Housing Plan" there is a series of goals and policies. Policy 2B is in regards to the inclusionary housing ordinance. Inclusionary Housing Ordinances are almost always counterproductive and have been proven to make the housing situation worse. I do not think this route should be pursued further than it has been to this point. It also takes a lot of staf f time and requires ongoing monitoring expenses etc. Please see additional research findings below: 1. Bento et al. found that inclusionary zoning in California caused prices to increase 2 to 3 percent faster relative to jurisdictions without the policy . They found that affordable housing mandates decreased the rate of single family home starts, but found no effect on multifamily housing supply . They write, “The results are fully consistent with economic theory and demonstrate that inclusionary zoning policies do not come without costs.” 2. T om Means and Ed Stringham also measured the ef fects of inclusionary zoning in California. They found that jurisdictions with inclusionary zoning saw their housing supply reduced by 7 percent and prices increased by 20 percent due to the policy . 3. Schuetz et al. studied inclusionary zoning in two markets. In the Boston region, they found that inclusionary zoning rules reduced construction and caused higher house prices, but only during periods of rising prices. In the Bay Area, they found that inclusionary zoning corresponds with higher house prices during periods of rising rent prices, but that it also contributes to lower rent prices during times of falling average prices. They found no relationship between inclusionary zoning and construction in the Bay Area. 2. Policy 2F is in regards to Mixed Use Standards. I believe the mixed use design parameters should be "form based" in a way similar to what Paso uses along Spring street. Horizontal mixed use, at the very least, needs to be handled in a more logical way than the current illogical 50% ground floor policy which was adopted awhile ago. "Form Based" code means that the goal is more to get the building "forms" that are desired for the given zoning areas rather than the particular "use" that is desired. As a city , you are not able to dictate what the market demands and that is why certain lots have remained vacant for so long and will continue to remain vacant if this policy is left in place. Owners and developers need to be able to create housing at the rear of sites to be able to justify the commercial/retail/of fice that will sit vacant at the front of the projects. As a city , we do, indeed, need that commercial on the thoroughfare frontages but when it sits vacant or there isn't demand then it isn't helpful(it actually draws the other rents in town lower therefore discouraging commercial development even further). However , form based code gets it built and that boosts property taxes, population rings where we need them, and traf fic counts where we need them, among other benefits. Our property on Curbaril and Morro Road is a great example. The current council policy of only allowing projects with at least 50% of the ground floor as commercial are not realistic... It would not make sense for the rear of the site to sit vacant as commercial, retail, or of fice and we will not build there until we can design something that will work. See the vacant retail behind the movietheater as another example, it has never been leased since it was built. The Moresco Plaza is one more example, it is not realistic financially to account for vacancies that last years but that is what those owners have had to endure... They finally leased one of their larger of fice spaces after having it sit vacant since around 2012 or whenever they finished it... 200 9/3/2020 MIG, Inc. Mail - FW: housing element https://mail.google.com/mail/u/0?ik=cd7c8942a8&view=pt&search=all&permthid=thread-f%3A1676848914603480312&simpl=msg-f%3A16768489146…3/4 Y ou know better than I do exactly when that project was finished but if they had been able to focus the office on the frontage exclusively and finance the project by having residential in the rear , then, there would've been far less time with empty storefronts and those investors would have been paid back way quicker therefore encouraging them to invest morehere rather than run from Atascadero. 3. Policy 3D is in regards to the RMF Zone Height. I think the council should also look at the downtown for heightrestrictions and those should be adjusted as well. The downtown should be our most dense portion of the city andcommercial redevelopment will be easier to accomplish if we can go vertically higher with more residential units. In thesame way , the residential density in the downtown zone should also be the highest. The density per acre should be more in line with SLO, they allow up to 35 units per acre in the downtown zone and, interestingly , in the RMF zone, they mirror our policy of 20-24 units per acre. The additional 15 units per acre I am proposing will really encourage commercialredevelopment in our downtown. Numerous projects will immediately be financially justified from both a developers and alenders standpoint. Downtown redevelopment is dif ficult because it often entails assembling multiple parcels and requires getting projects that are big enough to justify demolition and longer planning timelines that come with tight urbanredevelopment. The downtown needs to be encouraged to be redeveloped and you don't do that by keeping the residential density at 20 units per acre, it needs to be up near 35 per acre. However , with higher density comes height and parking dif ficulties based on your current codes... which necessitates the need to be able to go higher with the projects in the downtown and also have more flexible parking requirements. 3 topics here to address in the downtown zones, allow buildings to go higher , allow higher density per acre, and allow lower parking requirements or in lieu fees for parking in the downtown. 4. Program 3E is in regards to small lot subdivisions. Each lot/home needs to have certain parameters met but each lot should be able to be split if the requirements are met. Setbacks, height, parking etc should all be considered but it is unfair to force owners and applicants to create condominium maps, air space condos and all sorts of other onerous work arounds to be able to sell a portion of their lot separately or build on a portion of their lot separately . If there are 2 homes on a lot and they are legitimate from a design standard perspective, the owner should be able to split the lot and put each on their own parcel. W e shouldn't have a minimum lot size, that makes no sense in today's world of tiny homes and small lot developments such as San Luis Ranch. This is very important to pass immediately and it will put every property owning resident in Atascadero in a better financial position. It will spur more housing production and it will allow more creativity in adding homes on some of our large lots in Atascadero. 5. In section E: constraints on housing production, number 1 is Governmental Constraints. I think there is nothing more impactful for you all to do than upzoning the downtown to a higher residential density per acre. I touched on this in point 3 above but it is worth revisiting here as well. This section explains the various zones and you will see here that the Downtown zones(DC and DO) both allow residential, but, only up to 20 units an acre... Not even as strong as the RMF zone which allows up to 24 per acre. Again, in SLO it is 35 units per acre in the downtown and this really makes a dif ference. For example, 5730 el camino real... W e had to fight and battle to maximise the site, apply for "superior architecture", and were finally able to gain approval for 5 residential units. Without "superior architecture" we would have only been able to build 4 units. However , if we were allowed to increase our density to a standard of 35 units an acre, add a third floor , the project could be financed immediately. We would have been able to go with 7 units by right and 8 units with superior architecture if the 35 per acre standard was in place. As it is now , lenders will not lend on that project because it is essentially 50% retail and therefore needs to be pre-leased(a signed lease and security deposit in hand before they will even consider lending). Once you tip the scales more towards residential(66% of a project residential as opposed to 50%), things start to pencil out. With La Plaza, we were able to justify the project because the site was on the market for years and it was rather large. W e pushed the density as far as we could, allowing 2 floors of residential above(if we could have done 3 floors of residential above the commercial at a standard of 35 units an acre then the project would have been a great success). The project started to look more appealing to banks and financiers than what was previously designed on the site(all commercial) because they know our country , and especially our town, is already over built with commercial/retail. They know residential has little to no risk, all the lenders/banks/financiers care about is risk and retail/commercial was extremely risky prior to the pandemic but is even more risky now . As a city, moving forward in this day and age, we need to focus on increasing our residential density in the downtown because that is the center of our city , residential is the biggest opportunity for growth, and it is what the people in this community need more than almost anything else. If we can get higher traf fic counts and population rings in the middle of our city while maintaining some of the lowest cost housing in the county , then it starts to create the kind of demand and environment here where retail and restaurants can actually survive and thrive. Thank you again for your time and consideration, I hope to hear back from you to discuss the housing element further . 201 9/3/2020 MIG, Inc. Mail - FW: housing element https://mail.google.com/mail/u/0?ik=cd7c8942a8&view=pt&search=all&permthid=thread-f%3A1676848914603480312&simpl=msg-f%3A16768489146…4/4 --T hank you, Max Zappas Z Villages Management & Development 6 100 El Camino Real Suite C m ax@zvillages.com 8 05-674-4743 C on Lic # 1048492 R E Lic # 01997012 CONFIDENTIAL COMMUNICA TION This electronic mail message and any attachments are intended only for the use of the addressee(s) named above and may contain information that is privileged, confidential and exempt from disclosure under applicable law . If you are not an intended recipient, or the employee or agent responsible for delivering this e-mail to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you received this e-mail message in error , please immediately notify the sender by replying to this message. A TTENTION: This email originated from outside the City's network. Use caution when opening links and attachments. 202 Helping Give Children the Best Possible Start in Life 3220 South Higuera Street ● Suite 232 ● San Luis Obispo ● CA ● 93401-6985 Phone 805-781-4058 ● Fax 805-788-2365 www.first5slo.org , October 9, 2020 Dear Mr. Holder and Staff, First 5 San Luis Obispo County and our partners on the We Are the Care Initiative recognize that a child care crisis exists in San Luis Obispo County. While we pursue a wide variety of steps and measures to address this need, we believe that the Atascadero Housing Element can serve as an additional mechanism to support creative innovation. The Regional Compact has goals to Strengthen Community Quality of Life and Create Balanced Communities, and we believe that access to affordable and quality child care is an essential part of achieving those goals. Recently, the County Planning Commission, at its September 24th meeting, acted based on First 5 recommendations to propose the addition of a new Housing Element program to study ways of integrating child care and senior care into housing. In this same spirit, and upon the review of the Draft City of Atascadero 2021-2028 Housing Element, the We Are the Care Initiative and First 5 recommend the following: Recommendation 1: That Policy 1.3, Policy 2.2, and/or Program 1.E include language to support the provision of affordable on-site child care facilities. Additional innovative practices such as these were presented in 2019 at the Annual League of Cities conference in a session entitled, Promoting the Power of General Plans: A Strategy to Support Early Childhood Development, which encourages cities to incorporate child care and social services into affordable housing. For example, the presence of on-site child care could be folded in as a developer incentive in Program 2.E. In the City’s Housing Needs Assessment, under “Female-Headed Households,” the document acknowledges that “Planning for housing development to serve single-parent families may require on-site childcare facilities.” However, these identified needs are not listed directly in the Draft Housing Element itself. In recognition that single-parent and female-headed households contribute a higher percentage of their income to housing costs, we submit that access to affordable and convenient child care is paramount and should be articulated as such within the Housing Element. Recommendation 2: That Goal HOS1, Goal HOS2, Program 1.C, and/or Program 2.F include the promotion of intergenerational facilities- such as senior centers co-located near or with child care centers. Intergenerational facilities would offer benefits to both the older and younger generations of the city of Atascadero, and represent a creative opportunity to address child care needs and utilize mixed-use land areas. Recommendation 3: In alignment with Regional Compact, Goal 1 (Strengthen Community Quality of Life) we recommend that the Housing Element include additional language that addresses the Commissioners: Bruce Gibson, PhD Chairperson Designated Representative, San Luis Obispo County Board of Supervisors Penny Borenstein, MD Vice-Chairperson Designated Representative, San Luis Obispo County Health Agency James Brescia, EdD Designated Representative, San Luis Obispo County Office of Education Devin Drake Designated Representative, San Luis Obispo County Department of Social Services Erica Ruvalcaba-Heredia, EdD Representative at Large, Center for Family Strengthening Melinda Sokolowski Designated Representative, Child Care Planning Council James Tedford, MD Medical Representative Alison Ventura, PhD Representative at Large, Cal Poly Kinesiology, Public Health Robert Watt Representative at Large, Coast Unified School District (Retired) Executive Director Wendy L. Wendt 203 3220 South Higuera Street ● Suite 232 ● San Luis Obispo ● CA ● 93401-6985 Phone 805-781-4058 ● Fax 805-788-2365 www.first5slo.org 2 critical need to maximize outdoor spaces, including those in proximity for the purpose of maximizing outdoor learning environments and play for a range of age groups. Outdoor learning and community play structures build cognitive, physical, social, and sensory skills for children, support quality of life for all living near-by, and can attract the business of family child care providers. Thank you for your continued support in creating a connected community for our children and families. Sincerely, Kris Roudebush First 5 San Luis Obispo County 204