HomeMy WebLinkAboutItem 1 - Staff Report MPA210001 C N U LA V I STA
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Item: 1
Meeting Date: 2/24/21
ITEM TITLE: PUBLIC HEARING: MPA21-0001 Consideration of the Draft
Housing Element Update of the General Plan for the 2021-2029 Planning Period
Resolution of the Planning Commission recommending City Council adoption of
Negative Declaration (IS20-0004) and the Housing Element Update of the General
Plan for the 2021-2029 Planning Period
SUBMITTED BY: Scott D. Donaghe, Principal Planner
Leilani Hines, Housing Manager
REVIEWED BY: Tiffany Allen, Director of Development Services
INTRODUCTION
The California State Legislature has identified the attainment of a decent home and suitable living
environment for every Californian as the State's major housing goal. Recognizing the important
role of local planning and housing programs in the pursuit of this goal, the Legislature has
mandated that all cities and counties prepare a Housing Element as part of the comprehensive
General Plan. In accordance with California Government Code § 65588, the City of Chula Vista
has prepared an update for the sixth Housing Element cycle covering the period from April 2021
through April 2029. The Housing Element Update will be submitted to the State Department of
Housing and Community Development(HCD) for its review and approval.
ENVIRONMENTAL REVIEW
The Housing Element Update of the City's General Plan does not propose any changes to land
uses within Chula Vista, nor does it call out or approve any specific development projects. The
Housing Element Update acknowledges and addresses several bills that were signed into State law
in 2019 that include requirements for local density bonus programs. It is not possible to predict
which properties in the City, if any, may propose and qualify for density bonus programs. The
adoption of the Housing Element Update will not result in any physical changes to the
environment.
An Initial Study (IS 20-0004)has been conducted by the City of Chula Vista and the City does not
anticipate that the proposed project will have a significant environmental effect, and the
preparation of an Environmental Impact Report will not be required. A draft Negative Declaration
has been prepared in accordance with Section 15070 of the CEQA Guidelines and was published
on December 4, 2020 and made available on the City's website at
https://www.chulavistaca. og v/departments/development-services/planning/public-
notices/environmental-notices. Future discretionary governmental approval of site-specific
housing projects will require review in accordance with the California Environmental Quality Act
(CEQA), and if applicable the National Environmental Policy Act(NEPA).
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February 24,2021
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RECOMMENDATION
That the Planning Commission recommend City Council adoption of the Negative Declaration
IS20-0004 and Housing Element Update for the 2021-2029 Planning Period.
DISCUSSION
Pursuant to State Law, the City of Chula Vista is required to prepare and adopt by April 15, 2021,
a Housing Element Update that covers the period of April 15, 2021 through April 15, 2029. The
Housing Element includes the following components:
• A review of the previous Element's goals, policies, programs, and objectives to ascertain
the effectiveness of each of these components, as well as the overall effectiveness of the
Housing Element;
• An assessment of housing needs and an inventory of resources and constraints related to
meeting these needs;
• An analysis of programs for the preservation of assisted housing developments;
• A statement of community goals, quantified objectives and policies relative to the
maintenance, preservation, improvement and development of housing; and,
• A policy program that provides a schedule of actions that the City should undertake, or
intends to undertake,in implementing the policies set forth in the Housing Element Update.
Housing Element Update Format
The Housing Element Update is organized into three sections, including:
�IIIIII�II
Explains the purpose, Details specific policies Details the analysis in
process and contents of and programs the City developing the Housing
the Housing Element. will carry out to address Element and provides
its housing goals and the the supporting material,
number of households to including a demographic
be assisted and housing analysis, constraints and
units to be constructed, opportunities to
rehabilitated, conserved affordable housing and
and preserved through the community outreach
the policies and process.
programs.
Key Issues
The Housing Element Update and the proposed programs and policies are based upon increasing
legislative actions to facilitate housing, the current economy and diminishing financial resources
available for affordable housing programs and projects. Key issues include:
• Recent legislative actions seek to ensure the availability of land zoned for housing at
appropriate densities to accommodate the City's Regional Housing Need Allocation
(RHNA). The City must continually monitor housing production and take responsibility
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February 24,2021
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and actions to ensure adequate site capacity for all income levels, particularly for lower-
income households.
• Recent legislative actions obligate the City to affirmatively further fair housing, defined as
"taking meaningful actions...that overcome patterns of segregation and foster inclusive
communities free from barriers that restrict access to opportunities." The emphasis is to
place more housing choices within higher income neighborhoods.
• A greater need exists to preserve and expand affordable housing opportunities for those
existing extremely low- (<30% of the Area Median Income or $34,650/year for a family
of four) and very low-income households (<50% of the Area Median Income or
$57,750/year for a family of four), particularly for those most vulnerable populations such
as the homeless, seniors, and the disabled.
• With less available resources to address the needs of lower income households, there are
opportunities to revitalize, reuse, and enhance existing resources and look at new
collaborations to leverage resources for the benefit of those in need of housing but also for
the economic benefit of residents and the community.
The Policy and Implementation component of the Housing Element Update aims to provide the
City and the residential development community with policy and program tools that address these
issues. The City's efforts will be concentrated on promoting balanced and diverse housing types
as well as the City's role in facilitating increased housing production.
Regional Housing Needs Assessment
State Housing Element Law mandates that a jurisdiction must show that it has adequate sites that
will be made available through appropriate zoning and development standards, with the required
public services and facilities for a variety of housing types and incomes. The projected need for
housing used for this evaluation is defined as the City's share of the region's housing needs for
2021-2029.
A Regional Housing Needs Assessment(RHNA)was prepared by SANDAG and adopted July 10,
2020, for the period beginning June 30, 2020 through April 15, 2029 (an 8 year period) and
identifies the City's share of the region's housing needs as 11,105 new housing units, with 4,527
(41%) allocated for lower income households (1,777 extremely low and very low-income and
2,750 low income).
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February 24,2021
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Table 1: RHNA Allocation per Income Category
Extremely Low(0-30% of AMI) and Very Low-Income (0-50% of AMI) 1,777 16%
Low- Income (51-80% of AMI) 2,750 25%
Moderate-Income (81-120% of AMI) 1,911 17%
Above Moderate-Income (81-120% of AMI) 4,667 42%
TOTAL UNITS 11,105 100%
The City must plan for its share of the region's new housing needs in all four income categories
by identifying an adequate supply of land zoned at the appropriate density levels to accommodate
each income category. The RHNA goals seek to ensure the City has, or plans to add, zoning and
land capacity to accommodate new housing growth and to ensure adequate site capacity at all times
for all income levels.
To address the City's needs for very low and low income households (0-80% of AMI or $57,750-
$92,400/year for a family of four), Chula Vista must demonstrate that it has an adequate supply of
land for higher density housing (30 or more dwelling units per acre). Although zoning land for
higher density development does not guarantee the construction of housing that is affordable to
low- and moderate-income families, without such higher density zoning, the opportunity to use
subsidies and implement affordable housing programs for such households would not exist.
Appendix C of the Housing Element Update provides details demonstrating that the City not only
has adequate sites to meet the assigned moderate income and market rate 6,578 RHNA units of
the total assigned 11,105 RHNA units, but it has adequate sites to satisfy the affordable housing
requirement. As noted in Appendix C Table C-2 a total of 4,527 RHNA units (1,777 extremely
low and very low-income and 2,750 low income) are expected to be developed at a density of 30
dwelling units per acre or greater, which is the higher density housing the State HCD considers
able to be provided at affordability levels and qualifying for subsidies and affordable housing
programs. These units are expected to be provided citywide.
Appendix C-Table C-3 notes that between Master Planned Community developments currently
being implemented [Villages 2, Village 3, Millenia, Otay Ranch Town Center North (Freeway
Commercial)] and recently approved Otay Ranch Sectional Planning Area (SPA) Plans (Villages
4, Village 8-West, Village 8-East), there is the potential for 3,031 low/lower income RHNA units
to be provided at the targeted affordability levels within Eastern Chula Vista.
Appendix C-Table C-4 notes development capacities in Specific Plan Areas, Transit Focus Areas,
and current projects will provide the potential for 1,496 low/lower income RHNA units at the
target affordability levels in Western Chula Vista. The Urban Core Specific Plan and the Palomar
Gateway Specific Plan provide higher density potential using Floor Area Ratio (FAR)
development criteria, and the 906 low/lower income RHNA units considered for this housing cycle
were previously identified in the 2013 housing cycle for potential development. The 489 Transit
Focus Area low/lower income RHNA units are located on MTS property (Palomar and H Street
Trolley)which requires that these units be provided at the targeted affordability levels pursuant to
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Assembly Bill 1486 (Surplus Land) . The remaining 101 low/lower income RHNA units come
from existing projects under development to be provided at the targeted affordability levels.
Goals, Policies and Programs
The centerpiece of the Housing Element Update is the Policy and Implementation Plan with goals,
policies, and implementing programs to address the identified housing needs. In developing the
goals, objectives,policies, and programs described in this Plan,the City assessed its housing needs,
evaluated the performance of existing programs, and received input from the community through
participation in an on-line survey and various public meetings. The City will be striving to provide
programs to meet the current and future housing needs of all income levels of the community
through the following goals:
0II Emm
01=
11011
Promote Facilitate the Create Promote
Housing that Construction opportunities equitable and
Helps to Create and Provision for affordable accessible
Safe, Livable, of Quality housing,; housing options
and Sustainable Housing to particularly in and resources.
Neighborhoods Meet the City's vulnerable
Diverse Needs areas AND in
(by Type, size, areas of
ownership opportunity
level, and
income levels)
To realize these goals, the Policy and Implementation Plan details objectives, policies, and
implementing programs which form the blueprint for housing actions. While the Plan covers a
broad array of housing issues that are applicable Citywide, the emphasis of the 2021-2029 Policy
and Implementation Plan is on actions enabling the City to maintain and increase housing
opportunities affordable to very low, low, and moderate-income households and in compliance
with various and significant state legislation enacted since the Housing Element was last adopted
in 2013. A summary of key housing legislation is provided in the Introduction of the Housing
Element.
The State of California's historic actions and investments in the last few years has had significant
impact on the development of this Housing Element and its policies and programs. State
legislation has focused on tackling the ongoing and critical housing affordability crisis by
removing local barriers to housing construction, speeding up new development, incentivizing and
funding for housing production, equity and accessibility of housing to overcome patterns of
segregation and foster inclusive communities, and accountability of local jurisdictions to the State.
A number of new policies/programs are proposed to plan for opportunities to develop affordable
housing and to facilitate the process in developing housing. To address Senate Bill (SB) 166, the
City must ensure that the housing element inventory of identified sites to accommodate its share
of the regional housing need is maintained at any time during the planning period for each of the
income categories, also referred to as "No Net Loss." In short, there should always be land
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available at the appropriate densities for developers to building housing aimed at the specific
income categories. Programs include monitoring/tracking of all residential developments and
acreage against the identified inventory of sites, required findings for projects developed at less
than the capacity identified in the Housing Element, housing impact statements related to RHNA
for discretionary actions on residential developments, and housing density minimums.
To make additional land opportunities available, staff will explore the use of land zoned for
community purpose facilities for affordable housing purposes.
SB 3 5, AB 2162 and AB 101 provide for the streamlining of the approval of housing proj ects with
at least 50% of the units dedicated as affordable, supportive housing projects, and low barrier
navigation centers for the homeless by defining these uses as "by right" with no discretionary
action required.
A number of policies and programs are proposed for the production of affordable housing. In
accordance with Assembly Bill (AB) 671, local governments must include in their General Plan
housing elements plans to incentivize and promote the creation of affordable Accesory Dwelling
units (ADUs). Programs being brought forward will include outreach of the ADU process,
monitoring and mid-cycle review of ADUs built, and exploring the acceptance of permit ready
plans, an amnesty program for existing ADUs, accommodation of movable Tiny Houses as a
separate regulated use and financial assistance for the creation of ADUs for lower income
households.
The City's Density Bonus program (CVMC 19.90) will be amended to bring the program into
compliance with various state legislation. AB 1763 and AB 2345 provide significant incentives
for 100 percent affordable housing and those that are transit oriented (e.g. no density maximums
and reduced/no parking).
Given the RHNA allocation for very low and low-income households, a review of the Balanced
Communities policy is required to evaluate its feasibility in making progress towards these RHNA
allocations, specifically looking at a supportable increase in the affordable requirement,increasing
the threshold of applicability, adoption of an Ordinance and an update to an in lieu housing fee.
In compliance with SB 330, developers demolishing housing will need to replace like for like any
restricted affordable or rent-controlled units (those also qualifying under State Rent Control) and
comply with specified requirements, including the provision of relocation assistance and a right of
first refusal in the new housing to displaced occupants.
Public Participation Process
The Development Services Department solicited community input in preparing and reviewing the
City's draft Housing Element Update. The City conducted an on-line survey, met with various
stakeholders, held public meetings and presented at various public meetings to gather input from
citizens, developers, social service agencies, and other interested persons. The following outlines
the public participation process:
• Public Survey Period(Available in English and Spanish from May 4th, 2020 to September
4th, 2020);
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• Five stakeholder meetings (Citizen Oversight Committee on January 30, 2019; Service
Providers and Development Community on August 20, 2020 (separate meetings);
Development Community on January 12, 2021; Building Industry Asociation (BIA) on
February 2, 2021);
• One virtual community workshop conducted simultaneously in English and Spanish
(August 24, 2020);
• Housing Advisory Commission meetings (July 24, 2019, October 23, 2019, January 23,
2020, June 24, 2020, October 28, 2020, January 13, 2021);
• Planning Commission (October 23, 2019 and June 24, 2020);
• Commission on Aging (February 12, 2020);
• Growth Management Oversight Committee (September 17, 2020); and,
• 30-day Public Review period for environmental document (December 4, 2020 through
January 4, 2021)
A summary of the comments received are included within Appendix G of the Draft Housing
Element Update.
Pursuant to Senate Bill 18, Government Code §65352.3 and §65352.4,the City notified California
Native American tribes identified by the Native American Heritage Commission (NAHC)for the
purpose of avoiding, protecting, and/or mitigating impacts to cultural places when creating or
amending General Plans, Specific Plans and Community Plans. Letters were sent to Native
American tribes identified by NAHC on October 28, 2020 providing for a 90-day commenting
period. One letter from the Viej as Tribal Government was received and is included as Attachment
3.
No comments were received on the Negative Declaration for the Housing Element update during
the 30-day comment period from December 4, 2020 through January 4, 2021. Comments from
the San Diego Housing Federation on the Draft Housing Element Update were received and is
included as Attachment 4.
Schedule
The State HCD deadline for the Housing Element Update is April 15, 2021; however, the State
HCD will provide an additional 120 days for local governments to finalize their Housing Elements
if they submit their Draft Housing Elements Updates for a preliminary review before the April 15,
2021 deadline. The State HCD will review and provide comments to the City by May 27, 2021,
and the City will finalize the Housing Element for final adoption by City Council no later than
August 2021.
Staff will request a preliminary review of the Draft Housing Element Update from State HCD prior
to adoption by the City Council. Therefore, the Planning Commission Resolution discussion
includes obtaining a preliminary review by State HCD before final adoption by the City Council.
DECISION-MAKER CONFLICTS
Staff has reviewed the decision contemplated by this action and has determined that it is not site-
specific and consequently,the real property holdings of the Planning Commission members do not
create a disqualifying real property-related financial conflict of interest under the Political Reform
Act(Cal. Gov't Code § 87100, et seq.).
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Staff is not independently aware and has not been informed by any Planning Commission member,
of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CONCLUSION
The Housing Element Update of the General Plan for the 2021-2029 Planning Period will keep the
City in compliance with state law and will better facilitate housing development at all income
affordiblity levels.
FISCAL IMPACT
Costs associated with the preparation of the Housing Element Update and the associated
environmental documents are incorporated into the Development Services Department budget and
may be reimbursed with funding received from the 2020 Local Early Action Planning (LEAP)
Grant Program. Resulting process improvements that accelerate housing production and activities
to facilitate compliance in implementing the sixth cycle RHNA may be reimbursed from the LEAP
Grant Program.
Implementation of the policies and programs outlined within the Housing Element Update may
require additional resources within the Development Services Department. As each of the policies
and programs are developed and implemented, staff will complete a more thorough analysis of
staffing and resource needs and the fiscal impact. The ongoing fiscal impact is uncertain at this
time and will depend on the type of housing development that results from the Housing Element
Update.
ATTACHMENTS
1. Planning Commission Resolution MPA21-0001
2. Draft 2021 Housing Element Update and Appendices (available at
https://www.chulavistaca. o� v/departments/development-services/housing-element-
U date)
3. Written Correspondence from the Viejas Tribal Government dated November 10, 2020
4. Written Correspondence from San Diego Housing Federation dated January 4, 2021
5. Housing Element Executive Summary of Significant New Goals, Policies and Programs