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4-29-2024 PC Presentations Planning Commission Meeting April 29, 2024 Presentations Item 2 6th Cycle Housing Element and Associated General Plan Amendments 1 Planning Commission April 29, 2024 6th Cycle Housing Element Update Adoption Agenda Housing Element Overview Outreach Summary RHNA/Priority Sites Policies and Strategies HCD Review and Comments Environmental Review Associated GP amendments Timeline and next steps 1 2 2 Housing Element OverviewHousing Element Overview What is a Housing Element? Why Update it? What is a Housing Element? State-mandated Element of City’s General Plan Why update it now? Required to be updated every 8 years by law Update by when? By Jan. 31, 2023 (deadline passed) Update it?How? Study and plan for housing needs in community between 2023-2031, across all income levels Who certifies compliance? CA Dept of Housing and Community Development (HCD) 3 4 3 HE Contents Housing Needs Assessment Housing Needs Assessment Demographic Trends Housing Market Trends Special Needs Groups Constraints to Housing Development Constraints to Housing Development Resources and Sites Inventory Resources and Sites Inventory Policies and Programs Policies and Programs Governmental and Non- Governmental Market Trends Environmental Infrastructure Zoning and Capacity ADUs and Mobile Homes Inventory of Sites Review of Previous Housing Element Implementation Identify 2023- 2031 Programs Assessment of Fair Housing Assessment of Fair Housing Outreach Fair Housing Issues Site Inventory Analysis Contributing Factors Other updates Conforming General Plan changes: Land Use and appendices – Internal consistency Mobility and appendices – address environmental assessment/mitigations Conforming Rezoning – Specific plan, map and text State law requirements - Health and Safety Element Other – necessary to implement HE programs (e.g. Objective design standards for housing developments) 5 6 4 6th Cycle vs. 5th Cycle RHNA 4x higher in Cupertino--4,588 vs. 1,064 Few remaining undeveloped sites, reliance on redevelopment to meet RHNA 62 properties, 36 development sites 70% of properties 50 units/acre or more New legislation adds requirements in: Developing policies/programs Greater accountability to produce housing Site selection Less discretion approving housing developments Affirmatively Furthering Fair Housing (AFFH) More outreach and inclusion Noncompliance What can happen if City does not have a certified Housing Element? Loss of local land use and zoning control – Builder’s Remedy projects Lawsuits and attorney fees Ineligibility for grant funding Financial penalties, court issued fines Streamlined ministerial approval of projects Court receivership appointing an agent to bring City’s Housing Element into compliance 7 8 5 Affirmatively Furthering Fair Housing (AFFH) AB 686 (2018) defines AFFH as: “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” Three community meetings focused on AFFH held May-September 2022 Affirmatively Furthering Fair Housing (AFFH) - Cupertino City is designated High or Highest Resource regarding Access to Opportunities Housing anywhere in City would regionally Affirmatively Further Fair Housing City must look to accommodate persons who currently do not reside here Meeting RHNA alone does not equate to satisfying AFFH (Missing Middle Strategy) 9 10 6 Outreach SummaryOutreach Summary Outreach SummaryOutreach Summary 2021 Jt. Study Sessions (Apr & May) Comm. Mtgs (Aug & Dec) CC Mtg (Sept) HC Mtg (Dec) Jan – Jun 2023 Jul – Dec 2022 CC Mtgs (Aug, Nov) PC (July) CEP-SAC mtgs (Jul, Sep, Oct) Comm. Mtg (Jul, Sep) Jan – Jun 2022 PC mtgs (Jan, Feb, Apr, May, June) CC mtgs (Mar) HC mtg (Jun) CEP-SAC mtgs (Mar, Apr, May, Jun) Comm. Mtg (May) Jan –Mar 2024 CC Mtg (Jan) 1st Draft to HCD (2/3) Comments from HCD (5/4) CC Mtg (Jul) Comm. Mtgs (Aug, Sep) 3rd Draft to HCD (2/26) Revised 3rd Draft to HCD (3/28) Conditional Certification letter from HCD (4/10) Jul – Dec 2023 2nd Draft to HCD (10/16) Revised 2nd Draft to HCD (11/30) Comments from HCD (12/15) 11 12 7 RHNA/Sites InventoryRHNA/Sites Inventory ABAG RHNA State-wide Housing Needs Determination made by HCD for each region within State Cupertino in 9 County ABAG region City’s RHNA ~1% of ABAG region’s RHNA and ~3.5% of county RHNA 13 14 8 % of totalUnitsIncome Group 26.01,193Very Low Income (<50% of AMI) 15.0687Low Income (50%-80% of AMI) 16.5755Moderate Income (80%-120% of AMI) 42.51,953Above Moderate Income (>120% of AMI) 1004,588Total Affordable Units = 2,635 City’s 6th Cycle RHNA Buffer ~ 25 - 35% particularly for lower income levels recommended to ensure city does not have to update sites inventory before next HE update for “no net loss” purposes. RHNA + Buffer accommodates over 6,200 units. Pipeline State law allows credit for approved projects, referred to as pipeline Cupertino allowed ~2,450 units as pipeline Lower income: 633 Moderate income: 49 Above moderate income: 1,770 Identify sites to accommodate balance of RHNA plus 25-35% buffer 15 16 9 Pre-HE Submittal Inventory Robust discussions in 2022 at Housing and Planning Commissions and City Council Started with all potential sites throughout the City which: Met HCD size criteria: 0.5 – 10 acres Properties outside of fire hazard and geologic hazard zones –more environmental impacts Owner interest a factor Direction Pre-HE submittal More interest in accommodating housing west of De Anza Blvd and south of Highway 85 Less interest in accommodating housing east of De Anza Blvd due to recent approvals Locate housing sites to counteract declining school enrollment Avoid displacement of existing residents through redevelopment of residential properties 17 18 10 Policy Framework State laws: link land use and transportation (AB 32 and SB 375) Regional plans (Plan Bay Area 2050 and Regional Transportation Plan) align with state law AB 2011 (eff. July 1, 2023): Allows Residential development on Commercial-Office Corridors regardless of Zoning: Density and building height varies depending on lot size and width of transportation corridor Identifies min. development standards Ministerial, exempt from CEQA Current Site selection strategy With Council direction in July 2023, site selection strategy adjusted based on: New State law realities – AB 2011/SB6 Proximity to transportation – AB32/SB375 Aligning with regional plans – PBA2050 & RTP City’s existing policies – LU-1.1 & CAP Consultant experience based on likelihood of site acceptance by HCD Development potential of site Size of sites – 0.5 acres (min.) to 10 acres (max.) 19 20 11 Current Housing Element Priority Housing Sites Capacity compared to RHNA SurplusTotal Capacity Projected ADUs Mixed Use Site Capacity with Rezone Residential Site Capacity with Rezone Pipeline Capacity 2023-2031 RHNA RHNA Category 2982,178116596833633 1,193Very Low 687Low 1549095743636049755Moderate 1,2133,166196956621,7701,953Above Moderate 1,6386,2261921,7271,8552,4524,588Total A0 21 22 12 Programs and PoliciesPrograms and Policies Required Programs and Policies Programs to provide Adequate Housing Sites Programs to Assist Lower-Income Housing Development Programs to Address Housing Constraints Programs to Conserve, Improve and Expand Housing Stock Programs to Affirmatively Further Fair Housing Programs to Preserve ”at risk” Units Programs for ADUs/Second Units 23 24 13 Housing Policy Areas Programs to provide Adequate Housing Sites: Identify sites to accommodate RHNA Create new land use designations to ensure RHNA can be accommodated Programs to Assist Lower- Income Housing Development: Support Grant applications; Provide technical support; Issue NOFA for BMR Affordable Housing Funds Housing Policy Areas (cont.) Programs to Address Housing Constraints: Adopt Objective standards, Continue fee waivers for affordable units and/or 100% affordable projects; Evaluate Parking standards Programs to Conserve, Improve and Expand City Housing Stock: Create new R4 Zoning District; Promote options for multi- generational households & house sharing; Disallow conversion of multi- family to Single Family residences; Use CDBG funds for conservation/ improvements 25 26 14 Housing Policy Areas (cont.) Programs to Affirmatively Further Fair Housing: Upzone sites adequately to allow accommodation of RHNA; Support teacher housing and ELI projects; Continue to support the development of ADUs and adopt "missing middle" housing policies, which offer opportunities with modest increases in density (HE Strategy-1.3.6) Housing Policy Areas (cont.) Programs to Preserve ”at risk” Units: Programs to meet with affordable housing operators annually Programs for ADUs/Second Units: Continue to offer streamlined pre-approved plans; Evaluate and participate in local and regional efforts on ADU programs 27 28 15 HCD Review and CommentsHCD Review and Comments Process with HCD February 3, 2023: 1st submittal to HCD May 4, 2023: 16 page letter #1 received October 16, 2023: 2nd submittal to HCD Informal meeting with HCD resulted in Revised 2nd draft submitted to HCD on Nov. 30, 2023 December 15, 2023: 5 page letter #2 received February 26, 2024: 3rd submittal to HCD Informal meeting with HCD staff resulted in Revised 3rd draft submitted to HCD on March 28, 2023 April 10, 2024: CONDITIONAL COMPLIANCE LETTER RECEIVED FROM HCD 29 30 16 Revisions to address HCD comments Second draft (Oct/Nov) –substantial rewrite of first draft based on HCD comments from May All analysis (review of prior housing element, fair housing, needs and constraints analysis) revised Sites inventory updated based on Council direction and consultant advice Existing policies and strategies revised New policies and strategies added in first draft revised or replaced/added to address state law, HCD comments, AFFH Third draft (Feb/Mar) –targeted edits to second draft based on HCD comments Related to sites and sites inventory Refinements to missing middle strategy Environmental AssessmentEnvironmental Assessment 31 32 17 Settlement/Environmental Assessment February 2023: California Housing Defense Fund/YIMBY Law sue City for noncompliant HE by adoption deadline January 2024: Stipulated Judgment entered into Established schedule to complete HE update in compliance with State law Gov’t Code Sec. 65759(a) CEQA does not apply to actions to bring HE into compliance with Court Order. Environmental Issues Analyzed Aesthetics Air Quality Biological Resources Cultural and Tribal Cultural Resources Energy Geology and Soils GHG Emissions Hazards and Hazardous Materials Hydrology and Water Quality Land Use and Planning Noise Population and Housing Public Services, Parks, and Recreation Transportation Utilities and System Services Wildfire Any significant environmental impacts are avoided, minimized, rectified, reduced or eliminated, and/or compensated. The General Plan incorporates policies and strategies to protect, preserve, and/or enhance environmental resources. The following topics were evaluated in environmental assessment: 33 34 18 Environmental Assessment Conclusions 2015 General Plan EIR – Identified Mitigation Measures for air quality, biological resources, hazardous materials, transportation, and utilities and services systems. Cupertino Municipal Code Chapter 17.04, Standard Environmental Protection Requirements – Since certification of the 2015 General Plan EIR, Cupertino Municipal Code amended to require those mitigation measures as environmental protection requirements for all construction projects. 2024 General Plan Policies and Strategies – Updated policies and strategies reflecting current best management practices to ensure that potential future development will continue to reduce impacts from construction and operation phases (e.g. Mobility Element) Environmental Assessment Conclusions Program-level significant and unavoidable impacts for air quality, greenhouse gas emissions, and transportation (vehicle miles traveled). Identification of program-level impacts does not preclude finding of less-than-significant impacts for subsequent projects that meet project-level thresholds. Due to programmatic nature of impacts, no additional mitigation measures are available at this phase of project approval (i.e. adoption of HE and associated amendments) 35 36 19 Associated General Plan Amendments Associated General Plan Amendments Other General Plan Amendments Chapter 3, Land Use and Community Design Element and Appendix A, Land Use Designations: Text changes to address state law requirements & Housing Element requirements Figure changes – reflect density and heights reqd. for developing Priority Housing Sites Chapter 5: Text changes to minimize environmental impacts resulting from development General Plan Land Use Map – conforming changes 37 38 20 Next StepsNext Steps Timeline and Next StepsTimeline and Next Steps April 2024 Letter from HCD – 4/10 HC Study Session – 4/25 PC rec. – 4/29 Summer 2024 Fall 2024June 2024 First reading – 6/18 May 2024 CC adoption –5/14 PC rec. On zoning – 5/28 Mar 2025 Complete rezoning Prepare objective design standards Adopt objective design standards APR submitted 39 40