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Home My WebLink AboutSS3 - Housing Element - PowerPointIMPLEMENTATION OF THE HOUSING ELEMENT AND CHARTER SECTION 423 City Council Study Session July 9, 2024 Community Development Department Very Low Income Low Income Moderate Income 0 50% AMI 51 — 80% AMI 81 120% AM I 1,456 units 930 units 1,050 units Above Moderate >120%AMI 1,409 units Income Total 4,845 units Council directed to "firmly challenge and plan to comply" • Facilitate compliance with mandated deadlines and requirements • Appeal to reduce the City's RHNA o City's appeal denied by SCAG • Focus the General Plan update on housing • City Council formed the Housing Element Update Advisory Committee (HEUAC) to assist with outreach and guiding the Housing Element • Members had expertise in housing, financing, and design • Collaborate regionally o Worked with other jurisdictions to oppose harmful legislation and support helpful legislation I, i CITY OF NEWPORT BEACH -a Substantial Evidence • Must meet specific criteria and demonstrate a realistic capacity to develop • Property owner interest letters, recent development examples, etc. Affirmatively Furthering Fair Housing (AFFH) * Avoid concentrations of affordable units in low resource areas -D No Net Loss * Maintain sites to always accommodate lower -income categories * Can't deny a project for not including affordable units * 15-30% buffer recommended for each income category I, CITY O� NEWPORT BEACH If No Net Loss is triggered, must identify and rezone additional new sites within 180 days Rezoning could require separate CEQA analysis and may have Charter Section 423 implications, which may not be feasible to complete within the 180-day limit Including a buffer helps to prevent No Net Loss and reduces exposure of planning for housing development outside identified Focus Areas I, CITY O� NEWPORT BEACH Housing Plan - Expected Developer X Project - Actual Difference 275 165 165 -110 55 -110 17000 17220 +220 • Must now take the difference from the buffer • If no buffer, must identify and rezone to recapture the loss in 6 months • If not timely, then risk decertification and loss of local control I, CITY OF NEWPORT BEACH I 101 From 2019 to 2022 leading up to Housing Element adoption, we had Steering Committee Meetings Housing Element Update Advisory Committee Meetings Community Workshops Planning Commission Meetings City Council Meetings (including Direction on Buffer) Drafts Posted Adopted by Council in September 2022, and certified by State in October 2022 r Implementation lFrAction e Amend Land Use Element Goals/Policies to Implement the Plan and Comply with State Law Iii CITY OF NEWPORT BEACH Since Housing Element certification, we have had... Steering Committee Meetings Related to Implementation Advisory Committee Meetings Related to Implementation Land Use Subcommittee Meetings Planning Commission Meetings City Council Meetings Drafts Posted • July 23, 2024, City Council Public Hearing v' All final implementing documents and ballot resolutions • August 9, 2024, Last Day to Call Election • August 27, 2024, Second Reading of Ordinance • November 5, 2024, Ballot Vote I All actions would become effective immediately upon certification of a successful vote (50%+1). I, CITY OF NEWPORT BEACH Me Vote of the electorate is generally required for any "major amendment" to the General Plan that results in any one of the following in a single statistical area: VAn additional 40,000 sq. ft. of development intensity ,/An additional 100 dwelling units of residential density v/An additional 100 peak hour trips (AM or PM) However,... "This section shall not apply if state or federal law precludes a vote of the voters on the amendment." I, CITY O� NEWPORT BEACH State Housing Element Law requires City to identify adequate sites to meet the RHNA • State controls implementation of plan: HCD determines consistency • HCD has the authority to revoke certification for noncompliance • State Attorney General can force implementation if the vote fails • Could place additional attention on Charter Section 423 and its legitimacy I, CITY OF NEWPORT BEACH Li • Adopted Housing Element includes Charter Section 423 Election as an Implementing Action • If determined to be precluded from Charter Section 423, amendment needed to remove from HE program • HCD staff consulted and committed to a narrowly focused and expedited amendment • This removal raises no concerns from HCD 7-day public review and 60-day HCD review period I, CITY OF NEWPORT BEACH • Work with HCD to revise housing plan and address community concerns while meeting all State objectives and remaining statutorily compliant • Conduct additional public review periods and hearings Hold a special election with revised ballot or wait until November 4, 2025 Housing Element decertification is inevitable, as there is no way to meet February 2025 rezoning deadline I, CITY OF NEWPORT BEACH HCD Housing Accountability Unit (HAU) is highly active with education and enforcement of State Housing Element Law Some examples of penalties: • Housing Element certification revoked (Portola Valley) • Building permit moratoria (Beverly Hills and Encinitas) • Public litigation with the State Attorney General's Office (Fullerton and Huntington Beach) • Loss of State grant funding (e.g., SB1 and SB2 funds) • Monthly fines up to $600k at the discretion of the AG Huntington Beach lawsuit status: Superior Court ruled must plan for more housing and pass compliant HE within 120 days I, i CITY OF NEWPORT BEACH • Non -compliant Housing Element triggers applicability • Limited oversight over housing projects and emergency shelters • Bypasses local zoning and our General Plan • Exceed allowed densities in residential zones • Allows housing in nonresidential zones • Opens development opportunities throughout the City • City can't deny or apply conditions that makes project infeasible • Only requires 20% of units to be affordable • Has been used in dozens of cities, including Beverly Hills, Santa Monica, Redondo Beach, La Habra, Orange, Mission Viejo In Santa Monica, 16 applications filed immediately totaling over 4,500 new housing units I, i CITY OF NEWPORT BEACH • Eliminates legal ambiguities in law • Affordability Requirements: Reduced from 20% to 13% to 7% (based on income level) Eliminates requirements for 10 units or less • Density: 3x max density allowed by General Plan 150DU/acre possible • Density Bonus: Additional density and incentives authorized • Allows existing projects to convert to Builder's Remedy • Penalties for stalling projects I, CITY OF NEWPORT BEACH City has been diligently pursuing compliance with State Housing Element Law If Council decides Charter Section 423 vote not required... o Staff will work with HCD on a targeted amendment to the Housing Element and will return later this year for re -adoption and adoption of all amendments If Council decides vote is required... o Staff will return on July 23, 2024, for a public hearing to deliver resolutions to County by August 9, 2024 If November 5, 2024, vote fails, decertification is inevitable, and the City will be exposed to penalties and loss of local control including Builder's Remedy I, CITY O� NEWPORT BEACH 18 THANK YOU! Jaime Murillo, AICP, Deputy Community Development Director Ben Zdeba, AICP, Principal Planner