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CC, PC, HC 04-27-2021 Item No. 1 Housing Element Study Session_Staff Presentation4/27/2021 1 Joint City Council/Planning Commission/Housing Commission Housing Element Study Session April 27, 2021 Joint City Council/Planning Commission/Housing Commission Housing Element Study Session April 27, 2021 Agenda •Welcome and Introductions •Housing Element Structure and Required Sections •RHNA Methodology and Allocation Process •New Requirements and Resources •Timeline, Process and Next Steps 1 2 4/27/2021 2 Introductions: Baird and Driskell Community Planning Joshua Abrams Paul Peninger •Small, Bay Area firm specializing in assisting local cities. •Staff to the Santa Clara County Planning Collaborative. Santa Clara County Planning Collaborative I. Support Excellent Housing Policy II. Save Jurisdictions Time and Resources III. Respect Local Autonomy 3 4 4/27/2021 3 What is a Housing Element? 1)Required element of the General Plan 2)Updated every 8 years 3)Plan for accommodating housing needs for all segments of the community 4)Once in a decade opportunity to think about and create local housing strategies Structure of the Housing Element 1)Public Participation 2)Reviewing Previous Element 3)Housing Needs 4)Government and Non- Governmental Constraints 5)Sites Inventory and Analysis 6)Goals, Programs and Policies 5 6 4/27/2021 4 Typical Process 1)Outreach and Engagement (occurs throughout) 2)Research & Data Gathering 3)Draft Plan 4)Planning Commission and Council Review 5)State HCD Review of Plan 6)Revise Plan (As Needed) 7)Local adoption 8)State Certification DRAFT Housing Element Timeline for Cupertino 7 9 4/27/2021 5 What’s New? New State Laws AB 1397 –More Scrutiny for Non-vacant Sites •Difficult to use small (less than 0.5 acre) and large (10 acres or more) sites •Reused sites designated for lower income housing must permit ‘by right’ approval.” AB 686 – Affirmatively Furthering Fair Housing •Study housing demographics more thoroughly •Ensure that public engagement reaches all segments of the community •Plan so that sites designated for lower income housing or upzoned are not disproportionately put in low-income communities of color •Develop policies and programs that advance equity What’s New? Resources Regional Housing Technical Assistance Program (REAP) Two key regional tools already in development: Housing Needs Data Packets: MTC/ABAG staff is developing data packets that will assist local planning staff with completion of Housing Element “Housing Needs” section. Housing Element Site Selection Tool: To support local planning staff with completion of Housing Element "Site Inventory and Analysis" section, MTC/ABAG staff is developing web-based tool to guide jurisdictions in identifying potential sites that align with state requirements as well as regional and local priorities. 11 12 4/27/2021 6 I. Public Participation 1.Start before Housing Element update formally begins and continue throughout all parts of update process 2.Involve all segments of community 3.Summarize and describe how public input was considered and incorporated into Housing Element I. Public Participation: What’s New Consistent with Affirmatively Furthering Fair Housing, update should incorporate meaningful engagement that represents all segments of community into development of housing element, including goals and actions. Example HCD Comment: “Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning…the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate.” 15 16 4/27/2021 7 II. Review and Revise 1.Describe Progress in Implementation 2.Analyze the Effectiveness of the Element 3.What was learned? What will be changed or Adjusted? III. Housing Needs 1.Quantification and Assessment of Needs 2.Include an Analysis of Special Housing Needs, for example: •Elderly •Persons with disabilities •Female headed households •Homeless persons and families 17 18 4/27/2021 8 III. Housing Needs: What’s New Needs Assessment must address fair housing issues more comprehensively. In addition to fair housing enforcement data, Element must include, at minimum: •Integration and segregation patterns and trends •Racially or ethnically concentrated areas of poverty •Disparities in access to opportunity •Disproportionate housing needs within the jurisdiction, including displacement risk Example HCD Comment: “For all analysis categories (e.g., segregation and integration, racially and ethnically concentrated areas of poverty, disparities in access to opportunities and disproportionate housing needs), discuss patterns and trends relative to the region. For example, (X City) largely does not appear to reflect socio-economic patterns of (X Region) region.” IV. Analysis of Actual and Potential Governmental and Non- Governmental Constraints 1.Non-Governmental Constraints include: •Availability of financing •Price of land •Cost of Construction 2.Governmental Constraints Include: •Land use controls •Local processing and permit procedures •Building codes and enforcement •On and off-site improvement requirements •Fees and exactions •Locally-adopted ordinances that affect costs and supply of housing (e.g., Inclusionary ordinance) 19 20 4/27/2021 9 IV. Constraints: What’s New? In recent comment letters, increased HCD focus on detailed analysis of constraints. For example: “Land-Use Controls: The element identifies various land use controls, including zoning, overlays, development standards. However, the element must also include an analysis of the impacts of these land use controls on the cost, supply, timing and approval certainty of development. This analysis must specifically evaluate land use controls individually and cumulatively for impacts, including the ability to achieve maximum densities without exceptions (e.g., variance, conditional use, density bonus law). For example, the analysis should address heights, setbacks, lot coverage and parking garage requirements. Finally, the element must include programs to address and remove or mitigate identified constraints.” V. Sites Inventory and Analysis 1.Document progress •List number of pending, approved or permitted units by income group based on actual or anticipated sales prices and rents since beginning of projection period. 2.Analyze capacity of sites to accommodate RHNA, including analysis of environmental and infrastructure constraints. 3.Identify sites with appropriate densities to Accommodate RHNA for Lower-income Households. •For Cupertino, 20 Dwelling Units/Acre. 4.Identify alternative ways to meet RHNA (e.g. ADUs). 21 22 4/27/2021 10 V. Sites Inventory and Analysis, What’s New? 1.Address Affirmatively Furthering Fair Housing in sites analysis 2.Nonvacant Sites Analysis: greater rigor and scrutiny applied to non-vacant sites proposed to meeting RHNA 3.If nonvacant sites accommodate 50 percent or more of lower-income RHNA, demonstrate existing use is not an impediment to additional development Draft Regional Housing Needs Allocation (RHNA) 23 24 4/27/2021 11 Draft Regional Housing Needs Allocation (RHNA) RHNA Statutory Requirements 1.Increase housing supply and mix of housing types, tenure and affordability in all cities and counties in an equitable manner 2.Promote infill development and socioeconomic equity, protect environmental and agricultural resources, encourage efficient development patterns and achieve greenhouse gas emissions reduction targets 3.Promote improved intraregional jobs-housing relationship, including balance between low-wage jobs and affordable housing 4.Balance disproportionate household income distributions (more high-income RHNA to lower-income areas and vice-versa) 5.Affirmatively further fair housing 25 26 4/27/2021 12 RHNA: Update on Process •April 2021: As required by law, in letter dated April 12, 2021, HCD confirmed that ABAG’s Draft RHNA Methodology furthers RHNA objectives Major milestones in coming months include: •Late Spring 2021: ABAG will adopt Final RHNA Methodology and release Draft Allocations. •Summer and Fall 2021: release of Draft Allocations kicks off period in which local jurisdictions or HCD can submit appeal to ABAG requesting change to any Bay Area jurisdiction’s allocation. •Late 2021:ABAG Executive Board will adopt Final Allocations, taking into consideration results of appeals process. This final adoption will also include public hearing. Links: https://abag.ca.gov/sites/default/files/documents/2021-02/ABAG_Draft_RHNA_Methodology_Report_2023-2031.pdf https://abag.ca.gov/sites/default/files/documents/2021- 04/ABAG_RHNA_Methodology_HCDFindings_April_12_2021.pdf 1.Methodology did not follow the rules 2.(Maybe) the methodology was not implemented correctly 3.Significant unforeseen event •65584.05(b)(1): The council of governments failed to adequately consider the information regarding the factors listed in subdivision (e) of section 65584.04. •65584.05(b)(2): The council of governments failed to determine the share of the regional housing need in a manner that furthers the intent of the objectives listed in subdivision (d) of section 65584. •65584.05(b)(3): A significant unforeseen change in circumstances occurred in the local jurisdiction that merits a revision of the information submitted pursuant to subdivision (e) of Section 65584.04. Appeals Options 27 28 4/27/2021 13 •“Several (jurisdictions) cite the lack of land suitable for development as a basis for the appeal…(however) even communities that view themselves as built out must plan for housing through means such as rezoning commercial areas as mixed-use areas and upzoning non-vacant land…” Appeals Criteria Excerpt Next Meeting: Programs and Policies •Before next meeting on 5/11, consider these best practice examples and come prepared to discuss model programs or policies that might be suitable for Cupertino. •Are there specific housing strategies that would make sense for Cupertino? https://www.hcd.ca.gov/community-development/award- winning.shtml 30 31 4/27/2021 14 Questions / Feedback Joshua Abrams Abrams@bdplanning.com Paul Peninger peninger@bdplanning.com 32