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6-11-2024 PC Presentations Planning Commission Meeting June 11, 2024 Presentations Item 2 Municipal Code, Specific Plan, Below Market Rate Mitigation Manual and Zoning Map Amendments related to implementing the 6th Cycle Housing Element 1 Planning Commission June 11, 2024 6th Cycle Housing Element Update Rezoning Agenda Housing Element Overview Timeline RHNA/Priority Sites Rezoning Scope: New Zoning Districts/Text Changes for consistency Related Amendments: HOC, BMR Manual Staff Recommendation Next steps Housing Element adopted May 14, 2024 1 2 2 Housing Element OverviewHousing Element Overview Housing Element Overview 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 Related HE updates Conforming General Plan changes: Land Use and appendices Mobility and appendices – address environmental assessment mitigations Conforming Rezoning - 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 58 properties, 35 development sites Nearly 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 WhatcanhappenifCitydoesnothaveacertified 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 TimelineTimeline TimelineTimeline 2021 – Mar 2024 Comm. Mtgs Public Hearings/Mtgs CEP-SAC mtgs Draft HE to HCD Workshops re: zoning May 2024 CC adopts HE (5/14) Apr 2024 Fall 2024 PC review regarding conforming zoning etc. CC 1st reading – July 2 Submit HE to HCD for certification CC 2nd reading – July 16 Objective design standards Jul 2024 Conditional Certification letter from HCD (4/10) CC meeting (4/16) HC review (4/25) PC review (4/29) June 2024 9 10 6 RHNA/Sites InventoryRHNA/Sites Inventory Adopted Housing Element Priority Housing Sites 11 12 7 Adopted Priority Housing Sites April 29: PC reviewed/recommended 62 sites May 9: City received letter from Valley Church requesting to be removed from Housing Element and not be rezoned CC responded by removing sites and adopting amended Housing Element with 58 Priority Housing Sites Not an issue with HCD since City still meets RHNA by income level and has 28% buffer Capacity compared to RHNA Valley Church removed (4 parcels) SurplusTotal Capacity Projected ADUs Mixed Use Site Capacity with Rezone Residential Site Capacity with Rezone Pipeline Capacity 2023-2031 RHNA RHNA Category 1572,037116596692633 1,193Very Low 687Low 928475743630549755Moderate 1,0442,997196955131,7701,953Above Moderate 1,2945,8811921,7271,5102,4524,588Total 13 14 8 RezoningRezoning Scope of Rezoning ONLY related to Housing Element conformance Text amendments to: Establish new zoning districts Modify existing regulations Edits for consistency with State law Edits for internal consistency Map amendments limited to Priority Housing Sites R-1 properties subject to Missing Middle Strategy HE-1.3.6 not being rezoned 15 16 9 New Standards – R-4 zones Accommodates densities higher than 50 du/acre Aligns High/Very High (50-65 du/acre) and Very High (65-80 du/acre) General Plan designations 40 of 58 Priority Housing sites are R-4 New Standards – R-4 zones Height: 5 floors (70 ft max) Scale similar to Apple Infinite loop campus buildings and new Westport buildings Front setbacks: Same as Heart of the City (9 feet) for Floors 1 – 3 Additional 9-foot “stepback” required for Floors 4 and 5 Side setbacks: Existing HOC standard: Greater of 10 feet or ½ height of building Proposed: 10 feet, plus10 feet for floors more than one story higher than adjacent primary residential building Rear setbacks: Existing HOC standard: 20 feet min. and 1:1.5 height to setback ratio Proposed (see redlines): 30 feet for Floors 1, 2 & 3, Additional 15 foot for Floors 4 & 5. 17 18 10 New Standards –TH combining zone Only for use with existing residential base zoning 16 of 58 Priority Housing Sites, all with R-3 base zoning Goal: to allow opportunities for lower scale interface with neighborhoods and different housing types Height: 30 feet max (General Plan standard) Front setback must meet underlying base residential zoning: 20 feet minimum unless on a major roadway Side and rear setbacks established New Standards (contd.) Emergency Shelters Required to be by-right in at least one zoning district Allowed in BQ and R-4 zoning districts Move existing standards from BQ zoning district and establish basic standards for shelters By-right approval for Priority Housing Sites that include 20 du/acre and 20% of total units for LI and VLI households: Exempt from CEQA Objective design review only with ASA process Up to 50 units – Administrative Hearing 50+ units – Planning Commission Review Other approvals (e.g. subdivision)follow other processes of State law 19 20 11 Modification of existing standards Multiple Family (R-3) zoning districts Structure of ordinance modified to distinguish between fourplexes and five or more units The regulations for developments with five or more units modified to accommodate higher densities Language re: maintenance of common areas etc. Various Chapters in Title 19: Conformance with State law re: types of housing that must be allowed by-right Definitions updated for consistency with State law Modification of existing standards (contd.) Various Chapters in Title 19: Process for allowing duplexes using R2 standards in compliance with Missing Middle Housing Element Strategy HE-1.3.6 on applicable R-1 lots Parking standards: Under new State law (AB2097), most of SCB corridor east of Hwy-85 exempt from parking requirements Modified to reduce required minimums for R-3 zoned properties from 2/unit to 1/unit Established 1/unit parking standards for R-4 and TH zones Modified findings for housing developments to ensure commitment in Housing Element per HCD direction 21 22 12 Chapter 14.15 (Landscape): Minor edit for internal consistency Chapter 17.08 (Environmental Standards): Minor correction Heart of the City Specific Plan: Minor text edits for consistency with General Plan and Municipal Code Update Figure 2 to reflect new zoning BMR Mitigation Manual Updated to conform with Housing Element to change BMR program to apply to projects with 5 or more rather than the current 7 units Modification of existing standards (contd.) Updated to reflect the Zoning District changes to Priority Housing Sites New colors and labels to indicate new zoning designations, R-4 and TH Clearly Identifies Priority Housing Sites Zoning Map 23 24 13 Environmental AssessmentEnvironmental Assessment 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) All actions related to adoption of HE and rezoning are exempt from CEQA 25 26 14 RecommendationRecommendation Recommendation That the Planning Commission adopt resolutions to recommend that the City Council adopt (with the redlines proposed): Municipal Code Amendments (Attachment A) Specific Plan Amendments and BMR Mitigation Manual updates (Attachment B) Zoning Map Amendments (Attachment C) 27 28