TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
title
Amendment to the Approval of the 2021-2029 Housing Element Update and Introduction of Ordinance No. 2024-003 (ZOA PL23-0133).
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RECOMMENDATION
recommendation
1) Continue a public hearing; 2) approve Resolution No. 2024-004 adopting an amendment to the City of Chino 2021-2029 Housing Element, including any additional non-substantive revisions required by the California Department of Housing and Community Development (HCD); 3) approve the introduction of Ordinance No. 2024-003, to be read by number and title only, and waive further reading of the Ordinance; and 4) authorize the City Manager to file all documents with HCD on behalf of the City.
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FISCAL IMPACT
There is no financial impact by approving the 2021-2029 Housing Element Update and amending the Zoning Code related to implementation of the Housing Element
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above will further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Superior Customer Service
• Responsible Long-Range Planning
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BACKGROUND
The 2021-2029 Housing Element (Housing Element) update was originally adopted by the City Council on January 4, 2022, and a revised version was adopted on January 17, 2023. As part of the Housing Element implementation, the City Council also adopted an ordinance (Ordinance No. 2023-008) in April 2023, which added Section 20.09.090 (Overlay districts for affordable housing) to the Zoning Code to implement Programs 3B (Affordable Housing Overlay) and 3C (MUO - Mixed Use Overlay) identified in the Housing Element. The adoption of this ordinance was required for HCD to certify the City’s updated Housing Element. Following adoption, the updated Housing Element and proposed Zone Code changes were sent to HCD for review and comment. After their review, HCD informed the City that additional revisions to the Housing Element and to Section 20.09.090, of the Zoning Code related to Programs 3B and 3C, and adding the implementation of Program 3F (Candidate Sites Used in Previous Housing Elements) were needed for HCD to be able to certify the City’s Housing Element. Staff also made changes to Sections 20.04.030 (Use Regulations) and 20.21.340 (Senior Housing Projects) of the Zoning Code to completely address HCD’s additional comments. All the changes to the Housing Element and Zoning Code are summarized below in the staff report. HCD has stated in its recent correspondence with City staff that following the adoption by the City Council of the proposed revisions to the Housing Element and Zoning Code to address their additional comments, HCD will be able to finally certify the Housing Element because it will comply with all State Law requirements.
On December 20, 2023, the Planning Commission held a public hearing on the revisions to the Housing Element and Zoning Code. One concern brought up by the Commission is related to the second bullet point in the Zoning Code Section below that outlines mixed use projects must reserve at least 50% of their floor area for residential use but are allowed up to 100% residential in the MUO if desired. The Planning Commission’s concern is the City is potentially losing retail opportunities to residential development on sites that are designated as MUO sites. Staff informed the Commission that the City is required to have a minimum number of sites designated for affordable housing, and that the Housing Element includes a buffer of available sites to provide options for developers to utilize. The MUO sites that were selected are sites that have vacancies, are on vacant land, or in need of redevelopment. The Commission was also informed that any additional amendments to the Housing Element now, by removing or adding any overlay sites based on their concern, could further delay the certification of the Housing Element. The Planning Commission ultimately recommended the City Council adopt the revisions to the Housing Element and Zoning Code with no recommended changes by a vote of 6-0 (1 absent).
On February 6, 2024, the City Council held a public hearing for the adoption of the most recent version of the 2021-2029 Housing Element (Housing Element) and related zoning code amendments. The City Council voiced several concerns during the hearing related to the proposed zoning code amendments. The primary concern was a proposed change that would allow sites within the Mixed Use Overlay (MUO) to be developed 100 percent with residential units, which could reduce the amount of existing or future commercial space in the City. The Council was also concerned with “by right” approval of these types of developments, and the waiving of development standards for projects that are unable to provide at least 16 units. Other questions brought up by the Council included the impacts of not adopting the Housing Element and/or zoning code amendments and possibly removing some of the MUO sites to help protect commercial properties. As a result of their concerns, the Council requested the Housing Element and related zoning code amendments be brought to a February 13, 2024 City Council Workshop discussion and continue the Public Hearing to the Regular City Council meeting on February 20, 2024.
At the February 13, 2024, City Council workshop, staff and the City Attorney’s office provided additional clarification and information regarding the concerns the City Council brought up at the February 6, 2024, City Council meeting. After discussion and public input, the City Council directed staff to bring the item back to the February 20, 2024, City Council meeting to continue the February 6, 2024 Public Hearing.
ISSUES/ANALYSIS
2021-2029 Housing Element Revisions (Resolution No. 2024-004)
The proposed revisions that have been implemented in the final draft Housing Element are in direct response to the latest comments received by HCD on the Housing Element that was adopted in January 2023. A summary of the revisions is as follows:
• Assessment of Fair Housing, including analyzing disparities in access to opportunity and local knowledge and data on past zoning actions and City investment within the community.
• Clear goals, priorities, metrics, and milestones to address identified contributing factors to fair housing issues.
• Analysis of non-vacant sites resulting in further information on market trends. No change in candidate housing sites was made as a result of this analysis.
• Reduction in assumption of Accessory Dwelling Units developed throughout the planning period.
• Zoning for a variety of housing types consistent with the requirements of State law.
• Evaluate processing and permit procedures, including typical timeframes for review.
• Successful approval of the Measure Y Vote, which implemented the overlay districts for affordable housing.
• Additional outreach, including a required seven-day public review period prior to resubmittal of the Housing Element to HCD.
Zoning Code Revisions (Ordinance No. 2024-003)
The proposed revisions to the Zoning Code are in response to comments from HCD and include additional revisions that are required to comply with state Housing Element law (Government Code Section 65583.2). A summary of the revisions is as follows:
• The Housing Element includes a Sites Inventory, which, among other things, lists sites that could accommodate lower-income housing developments. Some of these sites were also included in the Sites Inventory of previous Housing Elements but were never developed with housing. If a developer proposes a housing project on one of those sites that makes at least 20% of its units affordable to lower-income households, then the City is required by state law to review that proposed project ministerially, without requiring any discretionary permits or CEQA review. The proposed revisions to CMC Section 20.04.030 would implement this requirement.
• State law requires that sites with mixed use projects built in the Mixed Use Overlay (MUO) must reserve at least 50% of their floor area for residential use. The City is also required to allow projects to be 100% residential in the MUO, if proposed. The revisions to CMC 20.09.090 would implement these requirements.
• Similar to the first bullet point, state law requires that if a developer proposes a housing project in the Affordable Housing Overlay (AHO) or the MUO that makes at least 20% of its units affordable to lower-income households, then the City is required to review that proposed project ministerially, without requiring any discretionary permits or CEQA review. The proposed revisions to CMC Section 20.09.090 would implement this requirement.
• State law likely requires that the development standards in the AHO and MUO zones must allow at least 16 units per site (there is some ambiguity in state law, but this is the conservative interpretation). The proposed revisions provide that the City will not enforce applicable development standards to the extent that they would physically preclude the development of at least 16 units on a site in the AHO or MUO.
• Senior Housing is permitted to be developed in both the AHO and the MUO, pursuant to the standards set forth in Section 20.09.090. State law requires that residential projects on sites in the AHO or the MUO have a minimum density of 20 units per acre. The proposed revisions to CMC 20.09.090 and 20.21.340 clarify the density requirements for senior housing projects in the AHO or the MUO. Senior Housing is also permitted to be developed in other residential zoning districts as well as various commercial zoning districts. Projects developed outside the AHO or MUO are subject to the development standards of the RD20 zoning district, which has a maximum density of 20 units per acre.
Environmental Review
On April 18, 2023, the City adopted an Addendum to the 6th Cycle Housing Element Update (2021-2029) Project Negative Declaration (ND) pursuant to Section 15164 of the California Environmental Quality Act (CEQA) Guidelines for the adoption of the Section 20.09.090 of the Chino Municipal Code. The Addendum determined that the project was within the scope of the ND, which adequately described the activity for the purposes of CEQA, and included findings supported by substantial evidence that there was no potential for a significant effect on the environment attributable to the adoption of the Section 20.09.090. The revisions in this ordinance fall within the project described in the Addendum and the ND and therefore no further CEQA review is required.
PUBLIC NOTICE
A 1/8 page 10-day notice was published in the Chino Champion on January 27, 2024. In addition, the City sent information out on its social media platforms. The notices exceed legal noticing requirements. To date, no comments have been received. If any comments are received after the posting of the staff report, they will be addressed at the Council hearing.
Attachments:
1. Resolution No. 2024-004
2. 2021-2029 Housing Element (strike out and underline version) (use link below)
3. Ordinance No. 2024-003 amending Sections 20.04.030 (Use regulations), 20.09.090 (Overlay districts for affordable housing), and 20.21.340 (Senior housing projects)
Environmental Documents | Chino, CA (cityofchino.org) <https://www.cityofchino.org/591/Environmental-Documents>