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HomeMy WebLinkAbout4a_Attachment 1_Minutes of September 2, 2020CITY OF NEWPORT BEACH HOUSING ELEMENT UPDATE ADVISORY COMMITTEE MINUTES CITY COUNCIL CHAMBERS – 100 CIVIC CENTER DRIVE WEDNESDAY, SEPTEMBER 2, 2020 REGULAR MEETING – 6 P.M. I.CALL MEETING TO ORDER – 6 p.m. II.WELCOME AND ROLL CALL MEMBERS PRESENT:Chair Larry Tucker, Jeffrey Bloom, Susan DeSantis, Elizabeth Kiley, Geoffrey LePlastrier (remote), Stephen Sandland, Ed Selich, Debbie Stevens, (Ex Officio Member) Will O’Neill (arrived at 6:10) MEMBERS ABSENT: Paul Fruchbom Staff Present: Community Development Director Seimone Jurjis, Deputy Community Development Director Jim Campbell, Principal Planner Jaime Murillo, Senior Planner Ben Zdeba, City Traffic Engineer Tony Brine, Administrative Technician Amanda Lee III.PUBLIC COMMENTS ON NON-AGENDA ITEMS David Tanner inquired regarding the City's strategy for updating the Housing Element; the rationale for spending more than $2 million to update the Housing Element; a Greenlight election; and the City's involvement in AB 1063. He offered to explain an alternative strategy that would save the City time and money. Jim Mosher noted there have not been agenda items to discuss the frequency of the Housing Element Update Advisory Committee (HEUAC) meetings or the consultant's work on the Environmental Impact Report (EIR). The Circulation Element Update has been delegated to the Planning Commission when the City Council charged the HEUAC with updating the Circulation Element. Nancy Scarbrough asked if the City has applied for any planning grants offered by the California Department of Housing and Community Development (HCD). Senior Planner Ben Zdeba reported the City has been awarded grants under the SB 2 planning grant program and the Local Early Assistance Planning (LEAP) grant program. The grant funds have been used to update the City's land management software. Chair Tucker suggested the City Council is the appropriate body to consider Mr. Tanner's alternative strategy. The City Council has indicated a Greenlight vote will be held if the Housing Element Update triggers one. Chair Tucker believed a vote would be necessary. AB 1063 failed to receive the support necessary for advancing through the Legislature. The HEUAC will meet as needed and when necessary information is available. The HEUAC will receive updates regarding the environmental document. The decision has been made to delegate the Circulation Element Update to the Planning Commission. Housing Element Update Advisory Committee - October 7, 2020 Item No. IV(a) - Attachment 1 Minutes of September 2, 2020 Mayor O'Neill advised that the need for a Greenlight vote will not be known until the end of the update process. IV. CONSENT CALENDAR a. Review Minutes of the July 15, 2020 Meeting Recommended Action: Approve and file the minutes of July 15, 2020 At Committee Member Sandland's request, Principal Planner Jaime Murillo clarified that the Newport Crossings project has been entitled, but it has not been submitted for plan check. Staff anticipates the project's housing units can be counted towards the City's Regional Housing Needs Assessment (RHNA) allocation for the upcoming cycle. Committee Member Sandland requested the minutes reflect Mr. Murillo's clarification of comments in the fifth paragraph on page 6 and reflect Building and Fire Board of Appeals rather than Building and Life Safety Board of Appeals on page 8. David Tanner asked the City to create a folder to store all public comments rather than including public comments in each agenda item. Chair Tucker requested the incorporation of Mr. Mosher's correction of typographical errors and proper names. Committee Member Sandland moved, seconded by Committee Member Selich, to approve the minutes of the July 15, 2020 meeting as amended. AYE: Tucker, Bloom, DeSantis, Kiley, LePlastrier, Sandland, Selich, Stevens NO: None ABSTAIN: None ABSENT: Fruchbom V. CURRENT BUSINESS a. Community Outreach Plan Recommended Action: Review and discuss the draft outreach plan. Provide direction to staff on how to proceed. David Barquist, Kimley-Horn & Associates, reported the purpose of the plan is to ensure community engagement is sustained throughout the planning process. The overall goal is to provide a transparent process that provides sufficient and varied opportunities for public participation. The plan can be adapted to respond to the COVID situation. The process chart depicts the planning phases and outreach activities for each phase. He summarized the use of Bang the Table, the online platform, and workshops; the HEUAC's and City Council's involvement; and opportunities for feedback regarding the EIR. Committee Member DeSantis appreciated staff and the consultant incorporating the outreach subcommittee's comments in the plan. In response to her questions, Mr. Barquist recommended a four-week lead time to promote the initial workshop in October. Staff and consultants are working on the details of the workshop. A specific date in October has not been announced. Consultants will suggest technologies they feel are best for tasks. Bang the Table can be used for polling, Housing Element Update Advisory Committee - October 7, 2020 Item No. IV(a) - Attachment 1 Minutes of September 2, 2020 analysis, mapping, and many other activities and will be the base technology. Workshops will be recorded and available for the public to review and provide feedback. In reply to Committee Member Stevens' inquiry, Senior Planner Zdeba advised that the website has been updated and is live. A member of the public has commented on the removal of the prior planning effort, and staff is working on returning it to the website. The website will be updated throughout the process. In answer to Committee Member Sandland's queries, Mr. Barquist indicated the overall schedule and associated action items are being updated and will be provided to the HEUAC at or before its next meeting. Chair Tucker remarked that the HEUAC needs to review and understand information about housing sites before it can provide direction regarding outreach. The HEUAC needs the information in order to obtain specific input from the public. Deborah Allen, Harbor View Hills Community Association President, agreed with Chair Tucker's comments. The sites will be the issue for public comment. Notices of meetings and workshops should be provided to community associations and homeowners associations for distribution to the members. Jim Mosher inquired regarding the anticipated deliverables from the workshops and the purpose of outreach. For outreach to be effective, the topic for public comment should be specific, and the input should have a meaningful effect on the outcome of the process. The HEUAC should consider better branding for the update effort. The number of community members who have used the outreach tools is probably small, and community familiarity with the tools is not sufficient reason to continue using the tools. Stakeholders should include potential future residents with low incomes. David Tanner suggested the workshops be dialogs with the community such that the community helps draft the document. The schedule should be revised to accommodate a Greenlight election and Coastal Commission approval. None of the documentation refers to updating the Safety Element. Voters want to know the assumptions being used in modeling. Nancy Scarbrough expressed concern about the timing of the outreach program. The content of workshops should be reviewed in advance to ensure the workshops will be productive and effective. Community input needs to be more than responses to questions. Chair Tucker believed sites would drive discussions and community input. Hopefully, the outreach program will be designed to elicit input about sites. Stakeholders are residents, businesses, and owners of commercial properties where housing sites may be located. Committee Member Stevens suggested a review of the housing sites subcommittee's work would help the public understand the complexities of selecting sites. Committee Member DeSantis understood the community wants to know the location of housing sites and the effect of development at those sites on the look of the community. This will add another layer to the complexity of identifying sites. Chair Tucker expected the look of potential developments to be a factor in decisions. In all likelihood, only a small number of sites could accommodate an all affordable housing project. The Housing Element Update Advisory Committee - October 7, 2020 Item No. IV(a) - Attachment 1 Minutes of September 2, 2020 majority of affordable units would likely be components of large, above-moderate-income development projects. b. Subcommittee Progress Reports Recommended Action: Receive verbal progress reports from all subcommittees and discuss as necessary. Chair Tucker reported the sites subcommittee has reviewed sites in the Airport Area to determine possible sites for housing. He reviewed each of the sites and pros and cons for redeveloping the sites. Committee Member Selich advised that limited housing opportunities are available in West Newport areas zoned for residential, medical office, and public facility uses. Housing may be possible in areas zoned for industrial/commercial uses and in areas containing mobile home lots. Chair Tucker explained that a zoning overlay retains the current use and adds a new use. An overlay may be important for the east side of MacArthur Boulevard. Tenants of affordable housing pay rent, but the rent amount is based upon income. Incentives will be needed for the development of affordable housing. Committee Member Kiley related that rezoning a one or two-story commercial building to residential could increase the utilization of the site, which may be preferable to the property owner. The cost of demolishing a commercial building from the 1970s and replacing it with housing could be less than remodeling the commercial building. Jim Mosher believed the State allows housing with adequate sound attenuation in 65 dB areas. However, Noise Element Policy N 3.2 prohibits new residential development in 65 dB areas. A General Plan amendment has been noticed for the September 8 City Council meeting. The amendment would extend the existing overlay for housing into an area where housing is not allowed. He requested clarification of Committee Member Bloom's concept of incentives for development of projects in high-income areas. Chair Tucker indicated developers could pay a fee for projects in high-income areas, and the fees would be used for affordable housing projects in areas with lower land costs. In answer to Committee Member DeSantis' questions, Chair Tucker stated the HEUAC does not advise the Council regarding planning applications. If the Council approves the General Plan amendment, the HEUAC will have less to consider. The units have been incorporated into the roadmap. c. Housing Element Sites Strategy Recommended Action: Receive an overview of current projects in the development pipeline that can count towards the RHNA allocation and discuss strategies to identify housing opportunities. Senior Planner Zdeba reported the City's draft RHNA allocation will be increased to 4,834 units. The roadmap is simplistic and does not include income designations. Entitled and unbuilt projects may be under construction but have not received a certificate of occupancy and will provide 1,136 units. Projects under review have not been entitled and could provide 878 units. Housing Element Update Advisory Committee - October 7, 2020 Item No. IV(a) - Attachment 1 Minutes of September 2, 2020 In reply to Chair Tucker's questions, Senior Planner Zdeba indicated the unit count for the Uptown Newport project pertains to Phase 2. Phase 2 will begin when Tower Jazz's lease expires. Principal Planner Murillo explained that the Newport Crossings project was approved under the Newport Place affordable housing overlay. The overlay allows housing development up to 50 dwelling units per acre subject to design review only. To qualify for housing under the overlay, the developer has to commit to providing a minimum of 30 percent of units at the low-income level. The developer has received a density bonus in exchange for low-income housing. This is the first application to utilize the overlay. Plans have not been submitted for plan check. The Airport Area has a maximum development limit of 2,200 units, but most of those units have to be developed through the conversion of commercial floor area. Five hundred fifty infill units are also allowed. The Residences at 4400 Von Karman project is utilizing 260 of those infill units. The developer received a density bonus for providing very-low-income units. The Newport Village project complies with minimum commercial standards and maximum residential standards and is currently under review. The project does not seek more intensity than is allowed. Committee Member Kiley suggested the RHNA allocation and business closures caused by COVID may provide an opportunity to amend the General Plan to support more residential and less commercial space in mixed-use projects. In answer to Mayor O'Neill's queries, Principal Planner Murillo explained that if a project is permitted and built prior to June 30, 2021, the units in the project will be credited to the current cycle. The guidelines state the cutoff date is the date of entitlement, permitting, or issuance of a certificate of occupancy. Staff relies on the date a certificate of occupancy is issued. The Newport Crossings project has been entitled but has not obtained permits. The Uptown Newport project is subject to a Development Agreement. Senior Planner Zdeba advised that 781 units from the 2014-2021 Housing Element inventory could count if they comply with the guidelines for the current cycle. The number of units does not include any units at Banning Ranch because annexation probably could not occur prior to the deadline. In response to Committee Member Sandland's inquiry, Senior Planner Zdeba indicated the 781 units are based on the realistic development capacity of the existing inventory and do not include sites slated for redevelopment. He agreed to provide a tabulation of the units. Senior Planner Zdeba described alternatives to new construction as preservation of existing affordable units and conversion of market-rate units to affordable units. The guidelines limit the number of alternative units to 25 percent of the City's very low and low-income requirements. Mobile home units can be identified as committed and preserved for affordable housing, but the 55-year minimum affordability term may be a deterrent to property owners taking that action. In reply to Chair Tucker's queries, Senior Planner Zdeba stated realistically 12 units could be preserved within the timeframe for the current cycle. Chair Tucker believed there are few opportunities to achieve the 594 units. Senior Planner Zdeba related that 1,000 units is an aggressive target for the production of accessory dwelling units (ADUs). With the changes in State law, the production of ADUs is much easier. To achieve this number, the City would have to commit to promoting ADUs, monitoring ADU production, and being held accountable should 1,000 units not be achieved. The ADU target number is open for discussion. Housing Element Update Advisory Committee - October 7, 2020 Item No. IV(a) - Attachment 1 Minutes of September 2, 2020 In response to Chair Tucker's inquiries, Senior Planner Zdeba indicated there would be consequences for failing to achieve 1,000 ADUs. State law does not allow the imposition of new or existing private restrictions on ADUs. Senior Planner Zdeba explained that the City could commit to a rezoning program that would account for shortfalls in achieving goals. In answer to Committee Member Sandland's questions, Senior Planner Zdeba advised that the beginning of the planning period is June 30, 2021. None of the goals include potential units at Banning Ranch. Principal Planner Murillo reported live-aboards with permanent utility hookups can count towards the allocation. Moorings in Newport Harbor do not provide permanent utility hookups and cannot count. In reply to Committee Member Selich's queries, Senior Planner Zdeba reported the number of units obtained through rezoning could be 445 if the other goals are achieved. Staff has not analyzed the number of units from the existing inventory to suggest a realistic number of units that could be achieved. The assumptions for existing inventory sites, alternatives to new construction, and ADUs will affect the target for rezoning. Committee Member Bloom remarked that the net number of needed units is 2,009 absent income restrictions. With income restrictions, the target for low-income units is about 3,300 units. Approximately 6,200 units will be needed to satisfy the income restrictions. Principal Planner Murillo related that only 88 of the 1,136 units entitled and unbuilt are lower-income units. Staff needs to present the number of units per income category for each target. In answer to David Tanner's question, Chair Tucker stated the HEUAC will attempt to find sufficient sites to accommodate housing. If the HEUAC cannot accomplish that, it will report it to the Council. Mr. Tanner suggested the HEUAC ask staff and consultants about the strategy if the allocation cannot be fulfilled. He inquired about opportunities for public input in the roadmap. Jim Mosher remarked that the HEUAC is not envisioning all affordable housing projects. The goal for low and very-low-income units is more than 2,000. To achieve 2,000 units, the number of overall units will have to be more than 4,834. The City Council has asked the Harbor Commission to review live-aboards, perhaps with the idea of counting them towards the RHNA allocation. The Harbor Code prohibits houseboats. Chair Tucker reported approximately 2,400 units in the lower affordability range are required. If market-rate housing projects can include no more than 20 percent affordable housing, 12,000 housing units will be needed to provide 2,400 affordable units. Mayor O'Neill recalled the Council's direction for three paths: providing a compliant Housing Element, pushing back legislatively, and pushing back legally. The Council will consider an appeal and legal options when it receives the formal RHNA allocation. The Council's legislative efforts ended when the bill it supported died. Completing the Housing Element Update in 14-15 months is not possible. The expectation for the HEUAC is to find as much compliance as possible and make recommendations to the Council. The Council will then review its options. In reply to Committee Member Selich's question, Principal Planner Murillo advised that a rezoning program, if needed, would be contained in the Housing Element that the City Council adopts. The City will have three years to complete rezoning, which could include General Plan amendments. A Housing Element Update Advisory Committee - October 7, 2020 Item No. IV(a) - Attachment 1 Minutes of September 2, 2020 Greenlight vote would not occur until rezoning and associated General Plan amendments are proposed. A Greenlight vote and Coastal Commission approval are not needed to submit the Housing Element to HCD. Committee Member DeSantis remarked that affordable housing does not have to be achieved through inclusionary requirements only. The HEUAC can explore other methods to achieve affordable housing that will not increase the number of overall units. A housing trust fund and mortgage programs are examples of such methods. Newport Beach employers could be interested in contributing to a housing trust fund for workforce housing. Chair Tucker commented that the HEUAC will need to document and describe the reasons it cannot meet the RHNA allocation, if that occurs. Mayor O'Neill referred to the City's efforts to subsidize permanent supportive housing, which could aid compliance with the RHNA allocation. Mary Ann Soden encouraged the HEUAC to consider nonprofit and affordable housing partners to build affordable housing. In answer to Committee Member Sandland's question, Chair Tucker indicated he is working with staff to draft a letter to property owners regarding redevelopment of their properties. d. Appointment of an Additional Sites Subcommittee Recommended Action: Appoint an additional sites subcommittee. Chair Tucker moved, seconded by Committee Member Selich, to establish an Additional Sites Subcommittee composed of Chair Tucker and Committee Members Selich and Stevens. AYE: Tucker, Bloom, DeSantis, Kiley, LePlastrier, Sandland, Selich, Stevens NO: None ABSTAIN: None ABSENT: Fruchbom VI. COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM) Chair Tucker requested details of affordable housing. VII. ADJOURNMENT – 8:39 p.m. Next Meeting: October 7, 2020, 6 p.m. in the City Council Chambers. Housing Element Update Advisory Committee - October 7, 2020 Item No. IV(a) - Attachment 1 Minutes of September 2, 2020