HomeMy Public PortalAboutHousing Element Update Cover MemoCOMMUNITY DEVELOPMENT DEPARTMENT
DATE: September 21, 2012
MEMORANDUM
TO: City Council
Planning Commission
FROM: Steven Masura, Community Development Director
By: Paul Deibel, AICP, Community Development Project Manager
SUBJECT: Conveyance of Draft Update of the Housing Element of the City's General
Plan
Purpose. The purposes of this memorandum are to:
Convey to the City Council and to the Planning Commission the attached recently
completed draft update of the housing element of the community's general plan, entitled:
City of Temple City 2008-2014 Housing Element: City CouncillPlanning Commission Draft,
September 18, 2012. This document will be the focus of the joint study session of the City
Council and the Planning Commission scheduled for September 27, 2012. The study
session is intended for initial review and feedback on the latest draft of the housing
element prior to formal review at a later date at a noticed public hearing of the Planning
Commission and subsequent final approval by the City Council; and
2. Provide a preview to the joint study session presentation with the following: a general
overview of the status of the housing element draft; background on the housing planning
process in California and in Temple City; some discussion of the draft housing element's
new methodology in identifying an inventory of sites that, in conjunction with the
recommended programs, would have the potential to meet the City's current share of
regional housing need in a manner consistent with state statutes; some suggestions on
where to focus your review of the attached large document containing all components of
the draft housing element; and some perspective on how the housing element update
process relates to other City plans and projects that are underway or pending.
Overview. An important objective of the FY 2011-13 City Council Priorities and City
Manager's Action Plan is the adoption of an update to the housing element that will address
housing needs for all segments of the community, and do so in a manner consistent with
state statutes on housing element content.
The City's housing consultant, Karen Warner of Karen Warner Associates, has worked with
staff to finalize a draft of the City's housing element update that includes the following major
components consistent with state law:
Conveyance of Draft Update of Housing Element
September 21, 2012
Page 2
• An assessment of the City's housing needs in light of Temple City's share of the
Regional Housing Needs Assessment ("RHNA") as determined by the Southern
California Association of Governments ("SCAG") for all cities in the region;
• An inventory of resources to meet housing needs and an analysis of the constraints
that impede public and private sector efforts to meet the needs;
• A statement of the City's goals, quantified objectives and policies relative to the
construction, rehabilitation, conservation and preservation of housing in the
community; and,
• An implementation program that sets forth a schedule of actions and programs
which the City is undertaking or intends to undertake to implement the policies and
achieve the goals and objectives of the housing element.
At the joint study session, the housing consultant and staff will provide an overview of
Temple City's housing element planning process to date and present the goals and policies
of the element with the programs and actions recommended to achieve them. These goals,
policies and programs were formed through a public participation process conducted by the
City, and reflect the recommendations of the Housing Task Committee and the Planning
Commission. The programs have been further refined in response to several rounds of prior
comments from the California Department of Housing and Community Development (HCD).
The primary purpose of the joint study session is for the City Council and the Planning
Commission to provide input and feedback on the draft housing element update, and if
warranted, to authorize its re -submittal to HCD for their review to verify that the element
addresses the community's housing needs in a manner consistent with state statutes. The
study session will also provide an opportunity for any additional public comment.
Subsequent to HCD review, the City will schedule noticed public hearings to be conducted
separately by the Planning Commission and the City Council to consider adoption of the
housing element update. Upon adoption, the City will submit the final element to HCD for
certification. State certification of Temple City's Housing Element will not only demonstrate
that the City is operating on a firm legal basis in compliance with state law, but will also
greatly facilitate the next required periodic update of the element, and keep the City eligible
and competitive for state planning grants.
Background on Housing Elements in California. By state statute, cities in California
must adopt a general plan, and it must include certain mandatory elements with goals and
policies addressing the community's needs with respect to land use, circulation, open
space/recreation, safety/preparedness, conservation of natural resources, noise control and
housing. Given the state's compelling interest in statewide economic growth and its concern
that the relatively high cost of housing in California is a deterrent to economic growth and
competitiveness, it has enacted a body of legislation concerning local housing elements that
is intended to promote a supply of affordable housing in all regions of the state. As stated in
the State of California General Plan Guidelines (p. 61):
"Unlike the other mandatory elements, the housing element is subject to detailed
statutory requirements regarding its content and must be... (updated periodically).
The housing element is also subject to mandatory review by a state agency (the
California Department of Housing and Community Development). This reflects the
statutory recognition that the availability of housing is a matter of statewide
Conveyance of Draft Update of Housing Element
September 21, 2092
Page 3
importance and that cooperation between government and the private sector is
critical to attainment of the state's housing goals.
"Housing element law requires local governments to adequately plan to meet their
existing and projected housing needs including their share of the regional housing
need. Housing element law is the state's primary market-based strategy to
increase housing supply. The law recognizes the most critical decisions regarding
housing development occur at the local level within the context of the general plan.
In order for the private sector to adequately address housing needs and demand,
local governments must adopt land -use plans and regulatory schemes that provide
opportunities for, and do not unduly constrain, housing development for all income
groups.',
A city's share of the regional housing need that it must address in its housing element is
determined through a Regional Housing Needs Assessment (RHNA). In the Southern
California region the RHNA is prepared by SCAG. The "RHNA Factsheet" on SCAG's
website provides a brief background on the RHNA process as follows:
"California State Housing Element Law enacted in 1980 requires SCAG and other
regional councils of government in California to determine the existing and
projected regional housing needs for persons at all income levels. SCAG is also
required by law to determine each jurisdiction's share of the regional housing need
in the six -county Southern California region. State legislation and the RHNA
process are intended to address housing needs for projected state population and
household growth, to create a better balance of jobs and housing in communities,
and to ensure the availability of decent affordable housing for all income groups."
Background on the Citv's Draft Housing Element. The City of Temple City is currently
not in compliance with state housing statutes because it has not had a state certified
housing element for the past two housing planning cycles (1998 to 2005 and 2006 to 2014).
This is not to say that the City has not actively pursued the formulation of a housing element
during this period. A prior draft housing element for the 1998 to 2005 cycle was submitted
to the state; however, according to the California Department of Housing and Community
Development (HCD) review letter of November 21, 2001, the City's housing element did
not "demonstrate that its inventory will provide adequate sites and infrastructure to
facilitate the residential development for all income groups."
Subsequent revised drafts, now covering both the 1998 to 2005 and 2006 to 2014 planning
cycles, were submitted in 2008 and 2009. Neither of these drafts was approved by HCD for
essentially the same reason. Per the HCD review letter of December 16, 2009, "the
element still does not include a complete analysis of sites to accommodate the regional
housing needs allocation... (as) needed to comply with state housing element law."
Identifying specific properties in Temple City with the clear capacity to accommodate
additional residential development sufficient to accommodate the City's RHNA allocations is
challenging. The community is "built -out," with very few vacant properties suitable for
additional infill residential development. Nonetheless, as is discussed in the draft element
(see page D-4 and elsewhere), new residential development does occur in Temple City
through infill development on underutilized R-2 (medium density) and R-3 (high density)
Conveyance of Draft Update of Housing Element
September 21, 2012
Page 4
zoned sites. Such development entails either adding new units to sites with existing units, or
more commonly, through the demolition of existing units and replacement with a greater
number of units as permitted under zoning.
In April 2012, City staff initiated a new approach to systematically identify such underutilized
parcels and clusters of parcels ("sites") suitable for development with a net increase in
dwelling units. Under this approach, staff utilized Geographic Information System ("GIS")
technology to conduct a comprehensive screening of County Assessor and City digital
information on all parcels located in the R-2 and R-3 residential zones. In order to narrow
the sites inventory to those underutilized properties that truly have realistic development
potential, based on recent development trends in Temple City, filtering criteria indicating
underutilization were applied to the available data for each parcel as follows:
• Low ratio of existing building floor area to parcel size (referred to as floor area ratio
or "FAR"), as indicated by FAR of 0.30 or less in the R-2 zone (0.50 FAR permitted),
and 0.50 or less in the R-3 zone (up to 0.70 permitted);
• Low building structure value, as indicated by a minimum 60% ratio of assessed land
value to total assessed property value;
• Older age of improvements/structures, as indicated by a minimum of 30 years since
construction;
• Also, visual checks made using Google Earth and Google Streetview, and with site
visits where feasible and necessary, to ascertain the actual build -out and visual
conditions of buildings.
As is detailed in Appendix D of the draft housing element, this comprehensive analysis of
parcels, made feasible through the use of GIS technology, has identified a significant stock
of underutilized sites that have realistic potential for "recycling" with additional residential
infill development. Based on Karen Warner's detailed inquiries to and feedback from
professional staff at the HCD, it is staff's assessment that identification of these sites, in
conjunction with implementation of the two recommended programs as discussed in the
section below, will demonstrate in a manner consistent with state statutes that the City has
an inventory of sites with the potential to accommodate the City's share of regional housing
need.
Recommended Programs. As is discussed in Section 2 of the draft housing element, a
total of 18 programs are recommended for implementation by the City as necessary to
address goals and objectives in the categories of: (1) providing adequate housing sites, (2)
assisting in the development of low and moderate income housing, (3) removing
governmental constraints, (4) conserving existing affordable housing, and (5) promoting fair
housing. (These programs are summarized in Tables 2-5 and 2-6 on pages 2-13 through 2-
16.)
All of these programs, as discussed in the draft housing element, are important to
implementing the goals and objectives of the housing element in each of these categories.
Most of them are intended to address the mandates of state housing law and/or a review
comment from HCD on a prior draft housing element.
However, as noted in the section above, implementation of two of these programs,
specifically Housing Element programs 1 and 2, are necessary for the City to specify an
Conveyance of Draft Update of Housing Element
September 21, 2092
Page 5
inventory of sites with the development potential to accommodate the City's share of
regional housing need in a manner consistent with state statutes.
The systematic analytical approach using GIS technology was applied to all parcels in the
Downtown Specific Pian area and the R-3 and R-2 zones to identify opportunity sites with
realistic potential for recycling with additional infill multi -family residential development.
However, in order to provide cumulative development potential sufficient to meet the City's
regional housing need allocation, it will be necessary to modify some of the development
standards that currently apply in the Downtown Specific Plan area and in some areas of the
R-3 zone.
Housing Element Program 1 ("Temple City Downtown Specific Plan") proposes some
modifications to the current development standards in the Downtown Specific Plan area, as
stated in the following excerpt from page 2-18 in Section 2 of the draft housing element:
"In December 2002, the City Council adopted the Temple City Downtown Specific
Plan to guide in the area's revitalization and to re-establish the downtown as a
destination where residents can live, work, shop, dine and attend community
events. One of the plan's land use strategies is to introduce multi -family
residential and mixed use development into the downtown. The Housing Element
sites analysis (refer to Appendix D) identifies thirteen development opportunity
sites in the downtown as suitable for recycling to residential use within the
planning period, providing zoning capacity for over 300 new units. In order to
better facilitate the integration of housing on these sites, the City will adopt the
following adjustments to the development standards within the Specific Plan:
• Allowance for horizontal (side-by-side) commercial/residential mixed use
with ground floor residential in all districts, with the exception of parcels
fronting on Las Tunas Drive in the City Center (CC) Commercial District;
• Establishment of 30 unit/acre residential densities for non -senior housing,
with no established density cap for senior housing;
• Elimination of the conditional use permit;
• Elimination of one acre minimum lot size requirement for mixed use."
Housing Element Program 2 ("Multi -family Sites Inventory and Development Incentives")
proposes some modifications to the development standards in the R-3 zone, as stated in
the following excerpt from page 2-19 in Section 2 of the draft housing element:
"As a means of facilitating recycling (of under-utilized sites), the City is supportive
of allowing increased multi -family densities on parcels which do not directly impact
single-family residential neighborhoods. An R-3 by -right density allowance of 30
units per acre would serve as a strong economic incentive for development, and
by limiting these supplemental densities to non -R-1 adjacent parcels, would
preserve Temple City's existing transition of densities from multi -family zoned
areas to abutting single-family neighborhoods. To this end, the City will adopt the
following zoning text amendments for R-3 parcels that do not border R-1 zoned
properties:
• Establishment of 30 unittacre residential density;
Conveyance of Draft Update of Housing Element
September 29, 2092
Page 6
• Establishment of building heights to 3 stories;
• Allowance for reduced parking based on a parking study demonstrating
reduced parking demand resulting from transit accessibility or other
factors;
• Elimination of CUP requirement for projects with 3 or more units;
• Lot consolidation incentives (described further under Program 3)."
It should be noted here that the proposed modifications to current development standards
under both of the above programs would allow new development on sites under either of
these programs at a density of up to 30 units per acre and without the requirement for a
conditional use permit (although the City's design guidelines would be applicable). Per state
statutes, urban sites that have the "by -right" potential to develop at a density of 30 units per
acre can be considered as feasible locations for the development of new housing affordable
to lower income households. Thus the number of dwelling units that could potentially be
developed on inventoried underutilized sites that are at locations subject to the provisions of
either Program 1 or Program 2 have been counted in Appendix D (Table D-3) towards
meeting the City's share of regional housing need for low and very low income households.
The 30 units per acre density is a standard set by the state, so that is why this density is
recommended in the element. This will be further explained in detail at the joint study
session.
(The interdependence of the identification of underutilized sites and the implementation of
these two programs in meeting the City's RHNA allocation is most clearly demonstrated by
Table D-3, "Potential Housing Units during 2000-2014 Planning Period" on page D-8 of
Appendix D. This table shows how the calculation of total potential dwelling units sufficient
to meet the City's current RHNA allocation depends on implementation of Programs I and 2
so as to allow development potential at a density of up to 30 dwelling units per acre on the
nine identified opportunity sites located among the T -C (Temple City Blvd. Commercial)
District, the W -C (Las Tunas West Commercial) District and the G -C (Gateway Commercial)
District of the Downtown Specific Plan area, and on the 15 identified underutilized parcel -
cluster sites not abutting R-1 zoned neighborhoods in the R3 zone.)
So, to summarize, implementation of Programs 1 and 2 as recommended in conjunction
with the identification of underutilized sites, as summarized in Section 2 of the draft element,
and as detailed in Appendix D, will enable the City to accommodate a broader range of
housing types as necessary to meet its share of regional housing need in a manner
consistent with state statutes.
Moreover, this analysis identifying a significant stock of underutilized sites with realistic
potential for additional residential infill development, in conjunction with implementation of
the recommended programs discussed above, will be applicable to the next housing
element update cycle, which starts in 2013, and will put the City in a good position to obtain
timely approval from HCD for the next required housing element update. On the other hand,
failure to provide adequately for the City's current share of regional housing need during the
present cycle would require the City in the next cycle to accommodate both the unmet
portion of current share plus the additional share from the upcoming cycle's RHNA
allocation, in order to get HCD certification.
Review Guide to Draft Element Content. The attached draft housing element update is an
Conveyance of Draft Update of Housing Element
September 21, 2012
Page 7
extensive document with considerable information and analysis, as necessary in order to
address all of the content requirements specified in state statutes. However, as can be seen
from the document's Table of Contents, the bulk of the data is contained in five technical
appendices. The core content of the document is the housing element itself, which is
covered in the first 43 or so pages of the document as a whole. Section 2 of the element
(pages 2-1 to 2-37) presents the City's housing program. Its narrative documents the
extensive public participation that was involved in the process of formulating the draft
element, and it discusses the City's proposed goals, objectives, and policies concerning
housing. It also conveys the actions and programs recommended to achieve such goals,
objectives and policies. Thus staff would suggest that couneilmembers and commissioners
focus their review of the document first on the element itself, and then on the appendices if
time is available.
Moreover, the housing element document as a whole has evolved since 2001 in response
to prior review comments from HCD. The City only recently contracted with housing policy
expert Karen Warner to advise the City on specific further modifications to the element in
response to the latest comments from HCD. As discussed above, the most significant
hurdle to achieving HCD certification thus far has been the lack of an adequate inventory of
specific sites with the potential to accommodate the City's regional housing needs allocation
for all income groups in the community.
in light of this, Karen Warner has made significant revisions to the housing element's
Section 2, and to Appendix D, which documents the City's new "Sites Inventory and
Analysis", as explained in the above discussion of recommended programs. The other
components of the document, namely Appendices A ("Housing Needs Assessment"), B
("Governmental Constraints Analysis"), C ("Non -Governmental Constraints Analysis"), and
E ("Progress Report"), have been previously revised by prior consultants and staff in
response to prior wide-ranging review comments from HCD, and they have not been
revised further in the attached draft of the document. (Language that is highlighted in bold
font at various places in these appendices indicates that it is "new" language provided in
response to prior review comments from HCD.)
The content of these appendices is expected to remain largely as is in the revised draft
element to be submitted for HCD review if authorized by the City Council pursuant to
discussion at the upcoming study session on September 27th. However, it should be noted
that some further minor revisions may be warranted, primarily in Appendix B (Governmental
Constraints Analysis), so as to maintain internal consistency with the full range of currently
recommended programs in the draft element.
Comprehensive Plannina Process. As noted in the overview section above, adoption of
an update to the housing element of the City's general plan that will address housing needs
for all segments of the community in a manner consistent with state statutes is by itself an
important objective of the FY 2011-13 City Council Priorities and City ,Manager's Action
Plan. But in addition, doing so would be a significant step towards another larger project
included in the FY 2011-13 priorities/actions plan: a comprehensive update of the Temple
City General Plan.
The purpose of a general plan is to establish goals, objectives and policies that will guide
subsequent day-to-day decision-making by the City Council, the commissions and the staff
Conveyance of Draft Update of Housing Element
September 21, 2012
Page S
on projects and programs that affect the community's physical development, its natural and
built environment and its overall functioning as a place for people to live, work and play. The
current general plan was adopted in 1987 and has not been updated in a comprehensive
manner since then. The planned update of the general plan would entail a public outreach
and participation process. The purpose of this process would be to review and update the
goals and objectives of all elements of the general plan as necessary to reflect the
community's current conditions, issues and priorities.
Such an update would reflect and incorporate information and policies developed not only
through the housing element update process, but also through other recent, ongoing and
pending community planning initiatives specified in the FY 2011-13 priorities/actions plan.
These include the Bikeway Master Plan, the Rosemead Boulevard Enhancement Project,
the Historic Resources Survey, the Downtown Parking Study and Strategic Plan, the Traffic
Calming Master Plan, the Parks/Open Space Master Plan, the City Facilities Master Plan,
the Civic Center Master Plan, and the Energy EfficiencylClimate Action Plan, among others.
The general plan update would provide a framework for implementation of these and other
planning initiatives pursuant to a comprehensive and internally consistent set of goals,
objectives and policies contained among the various elements of the general plan.
Conclusion/Recommendation. Subsequent to discussion at the joint study session of the
City Council and the Planning Commission on September 27th, staff would submit the
revised draft housing element update with the new sites analysis and inventory, and the
recommended programs, to HCD. It is anticipated that this will result in verification by the
state that the draft element adequately addresses housing needs for all segments of the
community in a manner consistent with state statutes on housing element content.
Subsequent to NCD review, as noted in the overview of this process above, the City will
schedule noticed public hearings to be conducted separately by the Planning Commission
and the City Council to consider adoption of the housing element update.
Upon adoption, the City will submit the final element to HCD for certification. State
certification of Temple City's housing element update will not only demonstrate that the City
is operating on a firm legal basis in compliance with state law, but will also greatly facilitate
the next required periodic update of the element, and keep the City eligible and competitive
for state planning grants.
ATTACHMENT
1. City of Temple City 2008-2014 Housing Element: City Council / Planning Commission
Draft, September 18, 2012