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HomeMy WebLinkAbout5c_Attachment 4 - Policy Approach for Meeting RHNACity of Newport Beach Housing Policy Framework Housing Policy Framework [DISCUSSION DRAFT] Page 1 Housing Policy Framework to Accommodate RHNA This Housing Policy Framework describes various policy options to accommodate estimated growth need during the 2021-2029 Planning Period. It should be noted that the policy options described herein can be used in combination as a comprehensive strategy to accommodate future growth need. In addition to policies to accommodate the RHNA, a Housing Element must also identify policies to remove governmental constraints, conserve and improve existing housing stock conditions, preserve assisted housing developments at-risk of conversion to market-rate, and promote equal housing opportunities. Additionally, these additional policies will be addressed later in the process. Regional Housing Needs Assessment The South California Association of Governments (SCAG) has conducted a Regional Housing Needs Assessment (RHNA) to determine the City’s share of the affordable housing needs in the SCAG region. The RHNA quantifies Newport Beach’s local share of housing needs for the region by income category. Income categories are based on the most current Median Family Income (MFI) for Orange County. The City’s 2021-2029 RHNA growth need is as follows: City of Newport Beach 2021-2029 RHNA Growth Need Allocations Income Category Affordability (1) Dwelling Units Very Low 0-50% County MFI 1,453 Units Low 51-80% County MFI 928 Units Moderate 81-120% County MFI 1,048 Units Above Moderate >120% County MFI 1,405 Units TOTAL 4,834 Units Notes: (1) Based on percentage of Orange County Median Family Income, updated annually. The total RHNA represents the total growth need estimated for the 2021-2029. The actual net need that the City must plan for is based on considering the following factors: •Estimated Accessory Dwelling Unit Growth (pursuant the HCD approved methodology) •Projects “in the pipeline” that are entitled, approved on in the process of entitlement but not yet constructed •Capacity of existing lands (vacant and underutilized property zoned for residential development) Therefore, the accommodation of RHNA will be based upon the consideration of the above factors. The estimated net growth need, according the most recent analysis (subject to change) is identified below: City of Newport Beach 2021-2029 Net Remaining RHNA Growth Need Allocations Income Category Affordability (1) Remaining Dwelling Unit Need Very Low 0-50% County MFI 1,453 Units Low 51-80% County MFI 928 Units Moderate 81-120% County MFI 649 Units Above Moderate >120% County MFI N/A TOTAL 2,984 Units Notes: (1) Based on percentage of Orange County Median Family Income, updated annually. Housing Element Update Advisory Committee - February 17, 2021 Item No. V(c) - Attachment 4 Policy Framwork Approach for Meeting RHNA City of Newport Beach Housing Policy Framework Housing Policy Framework [DISCUSSION DRAFT] Page 2 Housing Policy Options to Accommodate RHNA Growth Need This following policy options can be used individually or in combination to accommodate RHNA growth needs. Each Housing Element policy would be implemented with detailed programs that include time frames for implementation, responsible parties, City’s specific role and actions required, proposed measurable outcomes, and identification of funding sources (if any as required by state law). It should be noted that the following programs that require rezoning or other land use policy changes must be completed with the first three years of the 2021-2029 planning period. Other supplementary programs can be implemented earlier in the planning period. Policy Option A: Housing Opportunity Overlay Zone Summary: Overlay Zone provides for the preservation of base zoning and “overlays” additional development entitlements (e.g., residential). Specific regulations and entitlements for residential uses in addition to what currently exists. Avoids creating non-conformities and establish higher level of incentives to develop residential uses. Applicable Focus Areas: • Airport Area • Newport Center • Newport Mesa Key Features: • New Overlay Zoning Ordinance • Granting of Additional Residential Entitlements • Potential “By-Right” Residential Development • Streamlined Approvals for Projects with Affordable Component • Development Incentives • Affordability Incentives Policy Option B: New Zone Program – Residential Only Summary: Establish new zones for exclusive residential use. Existing development can be preserved as legal non- conforming. Provides for specific zoning standards for residential uses and limits expansion and redevelopment of non-residential uses. Potentially applicable Focus Areas: • All Areas Key Features: • New Residential Zone Ordinance • Granting of Additional Residential Entitlements • Stronger certainty than overlay zone approach • “By-Right” Residential Development Approvals for Projects with Affordable Component • Development Incentives • Affordability Incentives Housing Element Update Advisory Committee - February 17, 2021 Item No. V(c) - Attachment 4 Policy Framwork Approach for Meeting RHNA City of Newport Beach Housing Policy Framework Housing Policy Framework [DISCUSSION DRAFT] Page 3 Policy Option C: Zone Amendment Program Summary: Amend existing established zones to permit residential uses “by-right”. Adds additional land entitlement for residential uses including permitting residential uses, expanding density allowances and development incentives. Potentially applicable Focus Areas: • All Areas Key Features: • Amended Residential Zone Ordinance • Granting of Additional Residential Entitlements • Stronger certainty than overlay zone approach • “By-Right” Residential Development, including Market-Rate Developments • Development Incentives • Affordability Incentives Policy Option D: Inclusionary Housing Program Summary: Requires residential development to include affordable units as part of their development program. Inclusionary requirements can be a percentage of total units comprising a project. May require units built on- site or off-site units built, land dedications, or in-lieu housing fees paid. Potentially applicable Focus Areas: • All Areas Key Features: • New Inclusionary Ordinance • Allows for affordable unit development in high cost markets • Can provide options for additional entitlement in exchange for affordable units • Development Incentives • Affordability Incentives Housing Element Update Advisory Committee - February 17, 2021 Item No. V(c) - Attachment 4 Policy Framwork Approach for Meeting RHNA City of Newport Beach Housing Policy Framework Housing Policy Framework [DISCUSSION DRAFT] Page 4 Policy Option E: Affordable Housing Fund / Housing Trust Summary: Establishes mechanism to allocate funds in the Affordable Housing Fund when available (in-lieu fees) toward the development of affordable housing units, especially units for extremely low and very low-income households. The fund can encourage qualified housing developers to pursue new construction and acquisition/rehabilitation of affordable housing in the City. Potentially applicable Focus Areas: • All Areas Key Features: • Establishment of funding and financing mechanism • Allows for affordable unit development in high cost markets • Can be in partnership with other agencies/entities • Can prioritize funds based on changing needs • Sources of fees may include impact fees, in lieu fees, etc. Policy Option F: Accessory Dwelling Unit Incentive Program Summary: To further incentivize the development of Accessory Dwelling Units (ADU), the City can develop an ADU incentive program. As a compliment to new statutory provisions, the City can evaluate ADU potential in the City and evaluate the offering of additional incentives that may include approval streamlining, amnesty program to authorize illegal units, fee reductions and/or waivers and other methods or strategies to be determined. The City will provide for the promoting of affordable ADUs by increasing the public awareness of an ADU Incentive Program, and new provisions in State law expanding opportunities for ADU development. The City can develop outreach material for public dissemination, including updates to the City’s website, information at City Hall and via other appropriate print and digital media. Potentially applicable Focus Areas: • All existing single family and multiple family zones Key Features: • Ability to contribute to affordable unit construction • Can use HCD approved methodology to annually allocate units to income categories • May provide greater propensity for infill unit growth Housing Element Update Advisory Committee - February 17, 2021 Item No. V(c) - Attachment 4 Policy Framwork Approach for Meeting RHNA City of Newport Beach Housing Policy Framework Housing Policy Framework [DISCUSSION DRAFT] Page 5 Policy Option G: Accessory Dwelling Unit Monitoring Program Summary: Should the City choose an aggressive approach to ADU unit potential, a monitoring program will be required to be included to ensure assumed growth trends. Monitoring programs allows for mid planning period corrections in policies and programs to ensure ADU are a viable method for unit production Potentially applicable Focus Areas: • All existing single family and multiple family zones Key Features: • Ability to contribute to affordable unit construction • Can use HCD approved methodology to annually allocate units to income categories • May provide greater propensity for infill unit growth Policy Options H: Additional list of Site Accommodation Strategies Summary: Additional site accommodation strategies and be employed. A sample listing is provided below that can be further explored to supplement other sites accommodation strategies. List of Additional Strategies: • Reuse/Convert institutional lands • Mixed Use Zoning • Establish minimum density standards • Reuse/Convert Open Space, Semi Public Space • Infill and existing site intensification Housing Element Update Advisory Committee - February 17, 2021 Item No. V(c) - Attachment 4 Policy Framwork Approach for Meeting RHNA