HomeMy WebLinkAboutPC2024-019 - RECOMMENDING THE CITY COUNCIL ADOPT A NARROWLY FOCUSED AMENDMENT TO THE ADOPTED AND CERTIFIED 6TH CYCLE HOUSING ELEMENT FOR THE 2021-2029 PLANNING PERIOD (PA2022-0245) RESOLUTION NO. PC2024-019
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, RECOMMENDING THE
CITY COUNCIL ADOPT A NARROWLY FOCUSED AMENDMENT
TO THE ADOPTED AND CERTIFIED 6TH CYCLE HOUSING
ELEMENT FOR THE 2021-2029 PLANNING PERIOD (PA2022-
0245)
THE PLANNING COMMISSION OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS
FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1. Section 65580 et seq. of the Government Code requires each city and county adopt a
housing element that identifies and analyzes existing and projected housing needs within
their jurisdiction and prepare goals, policies, and programs, and quantified objectives to
further the development, improvement, and preservation of housing.
2. The City of Newport Beach (“City”) 6th Cycle Housing Element for the 2021-2029 period
(“Housing Element”) presents a framework for meeting the housing needs of existing
and future resident populations within Newport Beach based on the Regional Housing
Needs Assessment (“RHNA”) allocation of 4,845 new housing units.
3. The Housing Element was adopted by the City Council on September 13, 2022, and
certified as statutorily compliant with State Housing Element Law on October 5, 2022,
by the State Department of Housing and Community Development (“HCD”).
4. A public hearing was held on July 23, 2024, by the City Council to consider the Housing
Element Implementation, including consideration of certifying the Program
Environmental Impact Report (“PEIR”), adoption of CEQA Findings, Mitigation
Monitoring and Reporting Program and a Statement of Overriding Considerations. A
notice of time, place, and purpose of the hearing was given in accordance with CPUC
Section 21676(b), California Sections 54950 et seq. (“Ralph M. Brown Act”), Chapter
20.62 (Public Hearings), Chapter 20.66 (Amendments), and Chapter 21.62 (Public
Hearings) of the Newport Beach Municipal Code (“NBMC”), and City Council Policy K-1
(General Plan and Local Coastal Program) and City Council Policy K-3 (Implementation
Procedures for the California Environmental Quality Act). Evidence both written and oral,
was presented to, and considered by, the City Council at this hearing.
5. At the conclusion of the hearing, the City Council adopted Resolution No. 2024-58 to
initiate a narrowly focused amendment to the Housing Element to remove the reference
to Charter Section 423 based on evidence presented at the hearing that voter approval
is precluded because state law mandates the City adopt and implement the Housing
Element or else face serious penalties such as loss of state funding and/or lawsuits for
failing to comply with the state’s housing element requirements pursuant to Section
65000 et seq. of the Government Code in the event voters do not approve the Housing
Element Implementation.
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6. On July 26, 2024, City staff published and circulated draft revisions to Section 3
(Housing Constraints, Resources, and Affirmatively Furthering Fair Housing) and
Section 4 (Housing Plan) of the Housing Element (“Amendment”) that incorporates the
legal basis for the removal of Charter Section 423 voter approval requirement to
previously interested parties for a seven-day public review period, including The
Kennedy Commission, People for Housing Orange County, Still Protecting Our Newport,
The Public Law Center, and YIMBY Law.
7. On August 2, 2024, at the conclusion of the seven-day public review period, City staff
transmitted the draft Amendment to HCD for a formal review along with one piece of
written correspondence received from Jim Mosher. No other correspondence was
received in response to the published and circulated Amendment.
8. On August 20, 2024, the City received a letter from HCD, attached hereto and
incorporated by reference as Exhibit “A,” confirming the Amendment maintains the City’s
compliant status and, with its adoption, the Housing Element will remain certified as
statutorily compliant.
9. On September 5, 2024, a public hearing was held in the Council Chambers at 100 Civic
Center Drive, Newport Beach, California. A notice of time, place and purpose of the
hearing was given in accordance with the Ralph M. Brown Act and 65353 of the
Government Code and consistent with City Council Policy K-1 (General Plan and Local
Coastal Program). Evidence, both written and oral, was presented to, and considered
by, the Planning Commission at this hearing.
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
The Housing Element Implementation Program Amendments PEIR (SCH No. 2023060699)
was prepared for the Housing Element Implementation in compliance with the California
Environmental Quality Act (“CEQA”) as set forth in the Public Resources Code Sections 21000
et seq., Title 14, Division 6, Chapter 3 of the California Code of Regulations ("CEQA
Guidelines"), and City Council Policy K-3 (Implementation Procedures for the California
Environmental Quality Act). On July 23, 2024, the City Council adopted Resolution No. 2024-
50, to certify the PEIR as complete and adequate, inclusive of all required findings, a statement
of overriding considerations, and a mitigation monitoring reporting program.
SECTION 3. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
1. The Planning Commission of the City of Newport Beach hereby finds the adoption of this
Amendment is covered under the Housing Element Implementation Program
Amendments Final Program Environmental Impact Report, certified by the City Council on
July 23, 2024, and identified by State Clearinghouse Number 2023060699.
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2. The Planning Commission of the City of Newport Beach hereby finds that the Amendment,
attached hereto as Exhibit “B” and incorporated by reference, complies with the statutory
requirements set forth in Section 65580 et seq. of the Government Code.
3. In conformance with City Council Policy K-1, the Planning Commission has reviewed
and recommends approval of the Amendment to the City Council by the adoption of this
resolution.
PASSED, APPROVED, AND ADOPTED THIS 5TH DAY OF SEPTEMBER, 2024.
AYES: Barto, Rosene, Salene, Ellmore, Langford
NOES: Lowrey
ABSTAIN: None
ABSENT: Harris
BY:_________________________
Mark Rosene, Chair
BY:_________________________
David Salene, Secretary
Attachment: Exhibit A – HCD Letter
Exhibit B – Amendment
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EXHIBIT A
HCD Letter
STAIE OF CAI IEORNIA-BlJSINESS CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM GQvemor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Slreet
Sacramento. CA 95811
(916) 263-2911 I FAX (916) 263-7453
\VWW.hcd.c:a.gov
August 20, 2024
Seimone Jurjis, Community Development Director
Community Development Department
City of Newport Beach
100 Civic Center Drive,
Newport Beach, CA 92660
Dear Seimone Jurjis:
RE: City of Newport Beach 6th Cycle (2021-2029) Draft Housing Element
Amendment
Q : w
Thank you for submitting the City of Newport Beach (City) draft amendment to the
adopted housing element that was received for review on August 2, 2024. Pursuant to
Government Code section 65585, subdivision (b), the California Department of Housing
and Community Development (HCD) is reporting the results of its review.
The City's housing element was found in compliance on October 5, 2022. The draft
amendment incorporates modifications to Section 3: Housing Constraints, Resources,
and Affirmatively Furthering Fair Housing and Section 4: Housing Plan , Housing Policy
1.1 Implementation Action -Adequate Sites to Accommodate 2021-2029 RHNA and will
not negatively impact demonstrating adequate sites to accommodate the regional
housing need allocation {RHNA) or the current compliance status of the housing
element. Therefore, the element will remain in compliance with State Housing Element
Law (Gov. Code,§ 65580 et seq) when the draft amendment is adopted, submitted to
and approved by HCD, in accordance with Government Code section 65585.
Public participation in the development, adoption and implementation of the housing
element is essential to effective housing planning. Throughout the housing element
process, the City must continue to engage the community, including organizations that
represent lower-income and special needs households, by making information regularly
available while considering and incorporating comments where appropriate.
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Seimone Jurjis, Director
Page 2
HCD appreciates the hard work and dedication provided in the preparation of the City's
housing element and looks forward to receiving the County's adopted housing element.
If you have any questions or need additional technical assistance, please contact me at
Melinda.Coy@hcd.ca.qov.
Sincerely,
Melinda Coy
Proactive Housing Accountability Chief
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EXHIBIT B
Amendment
REVISION 1: Amend the Subsection entitled "Growth Management Measures" beginning
on Page 3-28 within Section 3: Housing Constraints, Resources, and Affirmatively
Furthering Fair Housing as follows:
Growth Manageme nt Meas ures
Growth management measures are techniques used by a government to regulate the rate, amount, and
type of development. Growth management measures allow cities to grow responsibly and orderly,
however, if overly restricted can produce constraints to the development of housing, including accessible
and affordable housing.
On November 7, 2000, the Newport Beach electorate approved Measures, which. MeaswFe £ amended
the Newport Beach City Charter by adding Section 423. Charter Section 42~ requires voter approval
of certain major amendments of t he Newport Beach General Plan, unless state or federal law precludes a
vote of the electorate on the amendment. In the case of Charter Section 423, in general ~ maior
amendment to the General Plan -iis defined aS!i 1'l0fiR01'l a, am; pr.if;JQ,0Q aR'l@R1'lrRm:it .if t~0 <;0R0r;1I 12IaR
.Q.Qe.that significantly increases allowed density or intensity is fiFst eensieleml an elf er ai;ipre ,ea lay tl:le
(ity C.iunGil n1ll,01'llltlAt t.i i;J.iG.in:ib0r 1§, .:!000 aA~ tl:1at by increasingiRusa,.i, th.i nun:ib.ir 0fover 100
peak hour trips (traffic), or over 40,000 square feet of.,. floor area (intensity), or over 100 dwelling units
(density) when compared to the General Plan prior to approval. These thresholds are calculated. as the
sum ~f the amendment itself andw-eighty percent (80%) of the increases resulting from other
amendments affecting the same neighborhood -4-that.,....w4i4 were adopted within t he preceding ten
(10) years. ,,.~~R EiB~~arE!~ to tRs G@R@ral Pla:R prier te ep~ro .. al
T~ere;ere, iUI dR'.lBAllilR=ieRt &~all net talte 0Uect \ilRI06!i it ~iHi DeeA su9~iUe9 te lht1 uoten; aAB apf!JFBHt!&!i
ay a f!'lajeril•f ef ~~ese , eUog eo it When the electorate approved Measure S1 ERal'ler Ses~ien H~ the
electorate encourage.Q.§ the City Council to adopt implementing guidelines that are consistent with thew..
purpose and Intent of Measure S; however, the Guidelines for Implementing Charter Section 423 do not
provide guidance as to when a state or federal law precludes a vote on a major amendment of the General
Plan. In 010 liilli@ of ,Nill'ler iieotion 4i!i; iln illm!nil'"ent to tNe ,@111"i1I Plt1n is il@fin@il ii§ t1n; ,iro~eseil
IP I I' I 11hl I 61 I rl Bir 5h11 ·, fi U 1111ill1 11! 11111,' I 11111•• .~ Ir. 111 Gillp 61 .-1 I 111111 I T
h lilri11i11"1 liu l i5 1000 11nii Uu1l in liJlllllilili lNli n JN11i11r 11i 111i11h 1111 ur hill Ii liri16'ilil, ilnr iUliil lini11nliii1 l, 11r
ii ellin!! 1nitli hlenliit,I llen liUllliiF@il to tile 'senen1I Pion ~rier ti! illlllFB al
Procedure
The City Council determines if aR proposed a..mendment requires voter approval pursuant to Charter
Section 423, based on the following conditions:
• The Amendment modifi es the al lowed use(s) of the property or area that is the subject of the
Amendment such that the proposed use(s) generate(s) more than one hundred I 100) morning
or evening peak hour trips than are generated by the allowed use(s) before the Amendment;
or
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• The Amendment authorizes an increase in floor area for the property or area that is the
subject of the Amendment that exceeds forty thousand (40,000) square feet when compared
t o the General Plan before approval of the Amendment; or
• The Amendment authorizes an increase in the number of dwelling units for the property or
area that is the subject of the Amendment that exceeds one hundred (100) dwelling units
when compared to the General Plan before approval of the Amendment; or
• The incre ase in morning or evening peak hour trips, floor area or dwelling units result ing from
the Amendment when added to eighty percent (80%) of the increa ses in morning or evening
peak hour trips, floor area or dwelling units resulting from Prior Amend men ts, within the
preceding ten (10) year:> (see definition in Section 2Jl exceeds one or more of t he voter
approval thresholds in Section 423 as specified in Subsection 1, 2 or 3.
If the City Council determines a General Plan land Use Element Amendment requires voter approval. after
approving the Amendment, the City Council then adopts a resolution calling an election on the
Amendment The City Council schedules the election at the next regular municipal election, as spec ified
by t he City Charter. The City Attorney then prepa res an impartial analysis of the Am endment, which
contains information about the Amendment, any related project or land use app roval, and the
environmental analysis conducted that will help the electorate make an informed decision. In the absence
of an ordinance or Charter provision that establishes a procedure for submittal of arguments or rebu ttals
relative to City measures, the City Council will adopt a resolution that authori zes the filing of arguments
and rebuttals in accorda nce with the general procedures specified in t he Elections Code.
It is important to understand that Charter Section 423 only app lies to General Plan amendments.
Individual housing development projects that do not require a General Plan amendment are already
accommodated within the General Plan and zoning framework. They would not be subject to Charter
Section 423 and would never require a vote of the electorate.
If a housing develop ment project requires a General Plan amendment, any unit and peak hour traffic
increases added to the project through bonus units awarded by the Density Bonus process are not
counted toward Charter Section 423 thresholds and a determination whether a vote is required.
Ultimately projects that require a vote of the electorate pursuant to Charter Section 423 may require
addit.ional costs and be subject to delays due to the election process that may yield uncertain election
result s.
To implement the Housing Element, the City must move forward with adding hou sin g units that would
qualify as a maior amendment for purposes of Charter Section 423. which raises the guestio~ whether
a vote under Charter S!;ection 423 is precluded by state or federal law. In recent legislation, such as Senate
Bill 1333. the legislature has specifically found tnat the lack of affordable housing is a matter of statewide
concern and that state housing laws related to land use, planning and zoning apply to charter cities.
Similarly. the court in Anderson v. City of San Jose (2019) 42 Cal.App.5th 683. found that that the lack of
afforda ble housing is a matter of statewide concern.
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To comply with state laws, the City must have a general plan, which serves as the long-range plan for
future physica l development in the community_ /Government Code § 65000 et seq.) One of the
mandatory elements of a general plan is a housing element, which must be updated by the City every
eight (8) years and identify sites sufficient to meet the City's share of the Regional Housing Needs
Assessment (RHNA) allocation. (Government Code §§ 65302 655881 65863.) In determining the RHNA
allocation, the council of governments does not take into consideration any zoning or other local land use
restrictions, such as Charter Section 423, but is directed by state law to "consider the potential for
increased residential development under alternative zoning ordinances and la nd use restrictions."
{Government Code § 65584.04(e)(2l(B).) Furthermore. the City has a continuing obligation to always
ensure that adequate sites exist to accommodate lower-income housing development. not iust at the
beginning of the eight (81-year Regional Housing Needs Allocation cycle. (Government Code § 65863.)
In this RHNA cycle, the City has been allocated 41845 new housing units. To comply with state law, t he City
must not only plan for these un1ts, but the City must also take action to establish the appropriate zoning
designations and development standards to allow the private ma rket to develop these units. After
developing a plan for these units, the City must submit the Housing Element to the Department of Housing
and Community Development for them to find that the Housing Element is in compliance with state law.
But haying the California Department of Housing and communjty Development find the City's Housing
Element is compliant with state law is only one step of many. The City is then required to implement the
Housing Element. Under Government Code Section 65585 (iHl)(A), implementation is not optiona l. and
the Ca lifornia Department or Housing and Community Development is cllarged with ensuring the City is
implementing the Housing Element and taking action to revoke its finding that the Housing Element
complies with state law if the City fails to implement the Housing Element. In addition to the loss of local
zoning control permjtting <l lJthority and fines of up to $600 000 per month for not hayjng a compliant
Housing Element, state law provides that the Attorney General may appoint an agent to take all necessary
actions to bring the City into compliance wit h state law. (Government Code§ 65585(1).)
Because providing residential housing opportunity sites to acco mmodate the City's RHNA allocation is
mandated by state law and t he City is required to implement the Housing Element. a Charter Section 423
vote is precluded, and the City will move forward with implementing the Housing Element witllout a
Charter Section 423 vote.
T~e ,ity zncill iwi~lm~ent Ct:aa~or ~12etioR 13:J ,u~eR it a~end§ t~e land I Is@ ~l@Rl@Rt sf it& Gent!F□I Plan to
ifAl)lefAeAt Polic1 ActiOflS 1A tkFOugk 3:F llFO,idet;I iR !>eetion Q of tkis l-leus1Rg EleffleRt. lke iReFeases iR
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aeeeMFAeSat=e tR e Ci~'s RI IPtO. alleeetioA ,101:Jlel 19reelt:,ele a ,ote 191=,rs1c1aAt to C~a,~er SeetioA ~23.
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Planning Commission Resolution No. PC2024-019
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REVISION 2: Amend the Subsection entitled "Implementation Actions" beginning on Page
4-2 within Section 4: Housing Plan as follows:
Implementation Actions
Adequate Sites to Accommodate 2021-2029 RHNA
The City of Newport Beach has a total Regional Housing Needs Assessment (RHNA) allocation of 4,845
units. State law requires the City of Newport Beach to identify adequate sites to accommodate its fair
share allocation for the 6th Cycle Housing Element. This City has identified a variety of candidate sites
through ex.tensive analysis in collaboration with the co mmunity and stakeholder1 through Newport
Together's "Listen and Learn" process, multiple meetings of the City's Housing Element Update Advisory
Committee (Committee), participation by interested residents at a variety of public meetings, workshops,
and consultation with property owners. The City of Newport Beach has identified an adequate amount
of land that was determined by the Committee as "Feasible" or "Potentially Feas ible" for future
development. Only a portion of these candidate sites will be necessary to accommodate the City's RHNA
planning obligation. These sites have undergone a rigorous process to evaluate site features, development
potential, developer/owner interest and other factors to deem them appropriate for housing during the
2021-2029 Planning Pertod.
As part of the analysis of adequate sites, the City has comprehensively reviewed opportunity sites citywide
and fla¥e-has ~dentified eight primary areas of opportunity:
• Airport Area Environs • Dove r/Westcliff
• West Newport Mesa • Newport Center
• Banning Ranch • 5th Cycle Housing Element Sites . Coyote Canyon • Accessory Dwelling Units
Since the City has id entified several opportunity sites in the S"' Cycle Housing Element that will be utilized
in the 6th Cycle Housing Element, additional policy co nsiderations are stated in this Policy Program.
These opportunities sites are described in map and tabular format in Appendi)C B of this Housing Element.
Each of the opportunity areas described in this Housing Element have been assigned a targeted acreage,
and a targeted number of new housing units (see following implementing Policy Action statements).
Collectively, these targets must meet the unmet RHNA need as required by i~tate law. It is expected there
may be deviations from the targets with fut ure implementing zoning actions. New opportunity sites may
be identified, and other sites may be deemed .iFl5Wi~allleunsuitable or densities may be modified, all
based on new information received over time. The City may adopt future zoning strategies that are more
or less than the identified targets in this Housing Element provided the total unmet RHNA need by income
category is accommodated within state-defined deadlines. If future zoning strategies deviate from the
targets expressed in this Housing Element but still meet the requirement to identify adequate sites to
accommodate unmet RHNA need, no amendment to the Housing Element would be required and
deviations of any magnitude may be considered subject to the City Council's review and approval in
consultation with the Community.
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which rezon e sites to accommodate the City's shortfall in satisfying the RHNA, the City commits to
the following:
• permit owner-occupied and rental multifamily uses by-right for developments in which
20 percent or more of the unit:s are affordable to lower-income households .. By-right
means local government review must not require a CUP, planned unit development
permit, or other discretionary review or approval.
• accommodate a minimum of 16 units per site;
• require a minimum density of 20 units per acre; and
• at least 50 percent of the lower-income need must be accommodated on sites
designated
• for residential use only or on sites zoned for mixed uses that accommodate all of the
very low and low-income housing need, if those sites:
o allow 100 percent residential use, and
o require residential use occupy 50 percent of the total floor area of a mixed-
use project.
Docusign Envelope ID: D230CFDF-16B8-4BA9-8474-FD422DD812F7