HomeMy WebLinkAboutItem 16 - Review the 6th Cycle Housing Element Update and Negative Declaration of Env. ImpactItem 16
GtT Y Ofi
rn O Council AgendaReport
CIS O
Department Name:
Cost Center:
For Agenda of:
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Estimated Time:
FROM: Michael Codron, Community Development Director
Prepared By: Rachel Cohen, Associate Planner
Community Development
4003
November 17, 2020
Public Hearing
45 minutes
SUBJECT: REVIEW OF THE 6TH CYCLE HOUSING ELEMENT UPDATE AND A
NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT
RECOMMENDATION
1. As recommended by the Planning Commission, adopt a Resolution approving the Housing
Element Update and a Negative Declaration of Environmental Impact (Attachment A).
2. Adopt a Resolution, entitled "A Resolution of the City Council of the City of San Luis
Obispo, California, to Resolve that the City of San Luis Obispo Commits to being a Safe,
Inclusive and Welcoming Community for Everyone and to Facilitate Voluntary Citizen
Action to Redact or Repudiate Racist and Discriminatory Verbiage from Their Property
Deeds" (Attachment G).
REPORT -IN -BRIEF
The Housing Element is a state required element of the General Plan that must be updated
regularly as determined by State housing law. Updating the Housing Element is a key step in the
City's efforts to expand affordable housing opportunities and is required by California
Government Code Sections 65580-65589.8. Once adopted, the Draft Housing Element will
replace the current Housing Element adopted and certified by the State in 2015 and guide City
housing actions through 2028. The update process is a tool to modify housing policies and
programs to reflect the changing needs, resources, and conditions in the community, and to
respond to changes in State and Federal housing law.
Over the last year, the City of San Luis Obispo, as well as the County and other cities within the
County have been in the process of updating their Housing Elements based on the new 61h Cycle
Regional Housing Needs Allocation (RHNA) requirements administered by the State of
California Department of Housing and Community Development (HCD). The Housing Element
has been updated in response to input received through 12 presentations, meetings, online
surveys, and a public workshop, as well as other correspondence over the past year. The City
reached out to the community as well as specifically requested feedback from the following
groups:
• Transitions Mental Health Association
• Home Builders Association
• Housing Authority of San Luis Obispo (HASLO)
• HEAL SLO — Healthy Community Working Group
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• People's Self -Help Housing Corporation
• SLO Chamber of Commerce
• Local Realtors
• Economic Vitality Corporation
• Community Action Partnership of SLO (CAPSLO)
• SLO Farm Bureau
• Californian Rural Legal Assistance (CRLA)
• The Coalition of Labor Agriculture and Business (COLAB) SLO
• California Women for Agriculture (CWA)
• United Way of San Luis Obispo County
On July 22, 2020, the Planning Commission reviewed the Housing Element Update, proposed
some modifications to Chapter 3, and ultimately recommended the City Council approve the
Negative Declaration of Environmental Impact and adopt the proposed Housing Element update
(Attachment B). On September 1, 2020, the City Council considered the Planning Commission
recommendation, and provided the following direction:
• Review and adjust Policy 7.9 and Programs 7.14 and 7.15.
• Work with the City Attorney's office to reword Policy 10.2.
• Incorporate a program to update the historic resource inventory.
• Consider adding programs to rezone for microbusinesses, reform CC&Rs (removing
racist language and requirements) and support graywater systems as part of housing
developments.
Status of Housing Element Certification by the State of California
Following the City Council's review of the draft Housing Element on September 1, 2020, staff
has continued to work with HCD to address Council's direction as well as continued input from
HCD.
Once a jurisdiction has completed a draft update to its housing element, it is required to be
submitted for review and certification by the State of California. The Housing Element is the
only Element in the City's General Plan that requires this review and certification process. HCD
has been tasked to review Housing Elements for compliance with state law.
On July 7, 2020, the City submitted a draft of the Housing Element Update to HCD for review.
On August 6, 2020, City staff held a phone conference with staff from HCD to discuss its
preliminary review of the Draft Housing Element Update and the revisions that needed to be
made. On September 4, 2020, staff received a letter from HCD with the remaining items that
needed to be modified for the Housing Element to be certified (Attachment D).
Staff worked with HCD to address the items outlined in the letter, which are reflected in the
redlined Housing Element Update (Attachment E, Revised Housing Element Update). The
different colored redlines/revisions are not color coded and do not represent anything but a
change to the original text that was presented to Council on September 1, 2020. Any yellow
highlighted text are revisions that have been made since the Revised Housing Element Update
was posted on the City's website on October 28, 2020. Color coded revisions to the Goals,
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Policies and Programs are provided in Attachment B.
New programs that have been added to the Housing Element Update in response to HCD's
comments include the following:
• Program 2.16: Create and make available to interested parties an informational packet
that explains SB 35 streamlining provisions and eligibility within two years of Housing
Element adoption.
• Projaram 3.10: In order to mitigate the loss of affordable housing units, replacement
housing units shall be provided for sites identified in the site inventory when any new
development (residential, mixed -use or non-residential) occurs on a site that has been
occupied by or restricted for the use of lower -income households at any time during the
previous five years. This requirement applies to: non -vacant sites and vacant sites with
previous residential uses that have been vacated or demolished (see Government Code,
section 65583.2, subdivision (g)(3), and Government Code, section 65915, subdivision
(c)(3)).
• Program 4.7: The City shall support Affirmatively Further Fair Housing (AFFH) by:
o Facilitating public education and outreach by providing informational flyers on
fair housing and reasonable accommodation at public counters and on the City's
website. Information will be included with utility billing at least once per year.
o Training staff, elected officials, and appointees on issues of disparity, structural
racism, and inequality.
o Implementing language standards and procedures for providing equal access to
City services and programs to all residents, including persons with limited
proficiency in English.
o Deed -restricting units to provide affordability and reduce displacement.
o Supporting new technologies and/or products such as modular housing
construction to reduce costs and increase access to housing.
o Distributing information regarding tenant rights and Fair Housing resources as
part of Code Enforcement's response to housing code enforcement issues.
• Program 4.8: Continue to distribute information regarding Fair Housing by providing up
to date information online and brochures at the front counter, providing educational
materials to tenants, property owners and property managers, and making public service
announcements (including but not limited to the City's News page, social media sites,
and newspaper ads) every year.
• Program 5.5: Update the Zoning Regulations to allow mixed -use development within
Service Commercial (C-S) and Manufacturing (M) zones without a use permit within one
year of the adoption of the Housing Element.
• Program 8.18: Review and amend the Zoning Regulations within one year of Housing
Element adoption to ensure compliance with: 1) the Supportive Housing Streamlining
Act (AB 2162) to allow supportive housing a use -by -right in zones where multi -family
and mixed uses are permitted, including nonresidential zones permitting multifamily
uses, if the proposed development meets specified criteria; and 2) AB 101, to allow Low
Barrier Navigation Centers by -right in all residential zones, areas zoned for mixed -uses,
and nonresidential zones permitting multifamily uses.
• Program 8.23: Update Zoning Regulations, within two years of Housing Element
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adoption, to be consistent with the Employee Housing Act; including: 1) an update of
Table 2-1 to allow single -unit dwellings without a Conditional Use Permit within the
Open Space and Conservation (C/OS) zone and employee housing consisting of no more
than 36 beds in a group quarters, or 12 units or separate rooms or spaces designed for use
by a single-family or household within the C/OS and AG zones, and 2) remove Chapter
17.148 - High -Occupancy Residential Use Regulations.
Program 8.23 is necessary because the City allows agricultural uses within the Agricultural (AG)
and Conservation and Open Space (C/OS) zones. Per State Law, employee housing (such as
farmworker housing) must be allowed in these zones as well. Any project proposed would be
required to comply with the City's development standards and code requirements, including the
ability of the project to be served by City services and be located within the urban reserve line
(URL).
HCD provided comments that the City has not successfully shown how affordable units will be
developed on the sites identified in the inventory (see Attachment F, Appendix E). As such,
the Housing Element must include programs that will incentivize, streamline, support, etc. the
development of housing, especially affordable units. The following programs have been added to
the Housing Element to address this requirement. One item to note is that in two of these
programs it states, "allow [housing] developments ... by right." `By right," under Government
Code section 65583.2 (i)), means the City shall not require: a conditional use permit; a planned
unit development permit; or other discretionary review or approval.
• Program 2.17: In order to provide adequate sites for lower income households on non -
vacant and vacant sites previously identified in the Housing Element (Table E-2), the
City will, within one (1) year of the adoption of the Housing Element Update, allow
developments (including mixed -use projects) that include at least 20 percent of the
residential units as affordable to lower income households, by right (no discretionary
review).
• Program 2.18: Utilize objective design standards to allow residential uses by right (no
discretionary review) for those developments (including mixed -use projects) that include
at least 20 percent of the residential units as affordable to low income households.
• Program 6.22: Update the City's municipal code to expand objective design standards
within one year of the adoption of the Housing Element Update.
• Program 6.23: Update the development review process and expand the thresholds of each
review level (minor, moderate, and major) to eliminate or reduce the number of public
hearings required for housing projects within one year of adopting the Housing Element.
The Goals, Policies and Programs of the Housing Element have been revised in response to input
received from public outreach, HCD, Planning Commission, and City Council. A Redlined
Matrix (Attachment B) provides a color coded, redlined version of the Goals, Policies and
Programs and indicates who recommended the revision.
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DISCUSSION
Housing Element Update and Regional Housing Needs Allocation
State law establishes a schedule for cities and counties to periodically update their Housing
Elements of the General Plan. Under this schedule, the City's Housing Element update is due in
December 2020.
As a part of this update, the City is required to develop programs designed to meet their share of
the surrounding region's housing needs for all income groups, as determined by the region's
council of governments. The Regional Housing Needs Allocation (RHNA) process ensures that
each jurisdiction accepts responsibility, within its physical and financial capability to do so, for
the housing needs of its residents and for those people who might reasonably be expected to
move there. The City has been allotted a RHNA of 3,354 housing units to plan for in the new 6th
Cycle Housing Element.
Table 1: Regional Housing Needs Allocation (RHNA) for San Luis Obispo County,
Jan. 2019 — Dec. 2028
Very Low Moderate Above
Low Income Income Moderate
PercentTotals
Income 15.5%1 18.0%1 Income
City RHNA to
24.6%1 41.9%1
Total RHNA
Number of Units
Arroyo Grande
170 107 124 291
692
6%
Atascadero
207
131
151
354
843
8%
Grover Beach
91
57
66
155
369
3%
Morro Bay
97
60
70
164
391
4%
Paso Robles
356
224
259
607
1,446
13%
Pismo Beach
113
71
82
193
459
4%
San Luis Obispo
825
520
603
1,406
3,354
31%
Unincorporated County
801
505
585
1,365
3,256
30%
Totals =
2,660
1,675
1,940
4,535
10,810
100%
Source: San Luis Obispo Council of Governments (SLOCOG), 2019
'Percent of total housing need in each jurisdiction.
Residential Development Capacity
As part of the Housing Element update process, jurisdictions must document their residential
land capacity to show how their RHNA can be met. The City has completed this analysis and has
approximately 387 acres of vacant, underutilized, or deteriorated property that can accommodate
approximately 4,140 dwelling units (see Table 2). A substantial portion of the residential units
identified in the inventory are located with the Avila Ranch planning area and San Luis Ranch
Specific Plan and include residential units that are currently under review (in the "Pipeline") for
entitlement. The City has already issued building permits for 537 residential units within the 6th
Cycle planning period. Additionally, 1,266 dwelling units have received entitlements, and 270
ADUs are projected to be developed in the City within the planning period. All these permitted
and entitled units reduce the City's remaining total RHNA to 1,818 units.
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Table 2: Residential Capacity of San Luis Obispo
Ext. Low & Very Low
825
778
497
803
1,300
0
Low 520 336
Moderate
603
576
403
400
803
0
Above Moderate
1,406
128
920
1,117
2,037
0
TOTAL UNITS
3,354
1,818
1,820
2,320
4,140
0
Source: City of San Luis Obispo, Community Development Department, 2019
The inventory above also shows capacity for 1,300 extremely low, very low, and low-income
units, which satisfies and exceeds the remaining RHNA need of 1,114 units. Based on these
numbers, the City's residential capacity exceeds the 3,354 units needed for RHNA, and
therefore, the Housing Element can be approved without including a property rezoning program.
To receive support from HCD on the inventory outlined in the Housing Element Update
(Attachment E, Appendix E), new programs were added to the Element that encourage low
income housing projects through programs that will create "by -right" or non -discretionary
housing project approval processes. Further discussion is provided under the HCD Section
below.
Previous Advisory Body and Council Review
Kick-off of the 6th Cycle Housing Element update began in April 2019 with a Public Forum on
Housing followed by a Study Session with the City Council. Below is a timeline of the advisory
meetings that have occurred in regard to the Housing Element update:
• City Council Meeting — September 1, 2020
• Planning Commission Meeting — July 22, 2020
• Planning Commission Meeting — June 10, 2020
• Human Relations Commission Meeting — June 3, 2020
• Planning Commission Meeting — April 24, 2019
• Public Forum and City Council Meeting — April 2, 2019
Comments and direction provided at these meetings, as well as through public engagement and
the Housing Major City Goal, were important for informing proposed modifications to the
Housing Element Update.
Public Engagement
In addition to discussing the Housing Element update at public meetings, the City facilitated
several presentations, two online surveys, and a public workshop. Most recently, the City
published the revised Housing Element Update on the City's website for additional feedback
from the community by notifying stakeholder groups, those on the interested parties list, posting
on the City's social media platforms, and posting a notice in the local New Times newspaper (in
both Spanish and English).
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• Association of Realtors Presentation — July 23, 2019
• Housing Element Workshop — December 10, 2020
• Online Survey — December 10, 2019 — January 10, 2020
• Chamber of Commerce (Economic Development Committee) Presentation — April 2, 2020
• Economic Vitality Corporation and the Home Builders Association Presentation — May 13,
2020
• Chamber of Commerce (Economic Development Committee) Presentation — June 4, 2020
• Online Survey — June 8, 2020 — June 24, 2020
• San Luis Obispo County Housing Summit (hosted by the Chamber of Commerce)
Presentation — September 10, 2020
• Request for Additional Community Feedback - October 29, 2020 — November 17, 2020
(Council meeting)
Goals, Policies and Programs — Chapter 3
The 6th Cycle Draft Housing Element and its appendices (Attachment D) include information
such as updated demographic and residential capacity information, housing constraints and
resources, and implementation. Chapter 3 of the Housing Element contains the Goals, Policies
and Programs that provide direction and the plan for how the City will achieve the
accommodation of 3,354 units within the City as required by HCD.
The Goals, Policies and Programs of the Housing Element have been revised in response to input
received from public outreach, HCD, Planning Commission, and City Council. A Redlined
Matrix (Attachment B) provides a color coded, redlined version of the Goals, Policies and
Programs and indicates who recommended the revision.
City Council Direction
On September 1, 2020, the City Council reviewed the Housing Element Update and provided the
following direction to staff regarding Chapter 3:
• Review and adjust Policy 7.9 and Programs 7.14 and 7.15.
• Work with the City Attorney's office to reword Policy 10.2.
• Incorporate a program to update the historic resource inventory.
• Consider adding programs to rezone for microbusinesses, reform CC&Rs (removing
raciest language and requirements) and support graywater systems as part of housing
developments.
1. Policy 7.9 and Programs 7.14 and 7.15
Policy 7.9 was added to the Chapter 3 as recommended by the Planning Commission to address
public health and housing. Council supported the inclusion of the new policy but directed staff to
review Program 7.14 and 7.15 and provide more clarity. Due to concerns about effective
implementation, staff is not recommending inclusion of Program 7.14 but is suggesting
modifications to Program 7.15 to address the intent of the Planning Commission
recommendation.
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Program 7.14 (not recommended for inclusion in the HE update): "Encourage
new developments with 10 or more residential units be reviewed and scored by
the Healthy Communities Work Group prior to submitting a planning application
to the City."
The requirement to have a housing project be evaluated by an outside group poses several issues:
1) reduced predictability in the review process for developers and the public; 2) review timing
and scoring is outside the control of the City and our development review process; 3) once a
score is given to the project, the City does not have development standards or code requirements
to interpret the score; and 4) this requirement could result in delaying the approval of housing
projects (this could place the City in a situation that conflicts with state law). Based on these
factors, staff is recommending that this program be removed.
In order to address the Planning Commission's intent, staff is recommending the following
modifications to Program 7.15 (staff s changes are shown in orange).
Program 7.15: Evaluate and update the Community Design Guidelines to provide
site design standards for Eneeurwg developments with 110 or more residential
units to include outdoor amenities such as the following: outdoor visiting and
gathering spaces, places to exercise or recreate, and spaces reserved for edible
landscape or community gardens.
Chapter 5 of the Community Design Guidelines (CDG) already outlines design characteristics
for residential projects. This would be the appropriate place to incorporate objective residential
design standards for outdoor amenities because the CDG will be able to provide specific
guidelines for how a project is to comply with the standards. Currently as a Housing Element
program, implementation could be difficult since the program only encourages that residential
projects include amenities as they wish. In addition, 10 units was changed to 11 units to be
consistent with our existing definition of "Major Development Review" within the Zoning
Regulations.1
2. Policy 10.2
Council directed staff to work with the City Attorney's office to reword Policy 10.2.
1 Zoning Regulations Chapter 17.106.030(D): Major Development Review is a discretionary
Planning Commission review process that includes public notice with a public hearing conducted
as is required for all Planning Commission actions. 1) Multi -unit residential developments with
more than 10 units; 2) New single -unit subdivisions with more than 10 units; 3) Nonresidential
development with more than 10,000 gross square feet of new construction; 4) Significant
additions and new construction of principal buildings in the C-D zone; 5) Any project for which
an EIR is required.
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Policy 10.2: Encourage, and where legally allowed, require new housing
development to give preference in the following order: 1) individuals who are
employed in business that are located in geographic areas that are customarily
included in the City's annual jobs -housing balance analysis, 2) individuals
residing in the County, and 3) finally to individuals from outside the County.
In reviewing the City's Housing Element, HCD shared concerns with Policy 10.2 and Program
10.4. HCD stated in its letter that, "This policy [10.2] potentially erects barriers and prevents
access to housing opportunities, particularly to individuals from outside of the City, and should
be removed." In light of this concern, as well as being mindful of fair housing rights, staff is
recommending Goal 10 and its policies and programs be removed from the Housing Element to
prevent any barriers to housing for any individual. Although this section is proposed for removal
from the Housing Element, it does not mean that the City could not pursue other opportunities on
a case by case basis, where legally allowed, to support housing for local individuals.
3. Update Historic Resource Inventory
Council requested that a program be included in the Housing Element Update that outlines a
timeframe for updating the Historic Resource Inventory. The Housing Element is part of a larger
planning document, the General Plan. One of the other Elements in the General Plan is
Conservation and Open Space. Section 3 of the Conservation and Open Space Element provides
specific goals, policies and programs related to Cultural Heritage, such as Historic Resources.
Policy 3.3.1. states, "Significant historic and architectural resources should be identified,
preserved and rehabilitated." The Conservation and Open Space Element is a more appropriate
place to add a new program regarding a timeframe for updating the Historic Resource Inventory.
Staff is recommending that if this is an important item for Council, to provide that direction to
staff to consider as part of upcoming work plans for the Conservation and Open Space Element
or the 2021-2023 Financial Plan.
4. Rezone for Microbusinesses
The Council requested staff review opportunities to rezone residential zones to allow
microbusinesses. Mixed -use projects are allowed in eight different zones (out of 16 zones) that
allow for projects to combine both commercial spaces and residential units, or even live/work
units. Land Use Element (LUE) Policy 2.3.6 states that "The City shall encourage mixed use
projects, where appropriate and compatible with existing and planned development on the site
and with adjacent and nearby properties. The City shall support the location of mixed -use
projects and community and neighborhood commercial centers near major activity nodes and
transportation corridors / transit opportunities where appropriate."
Additionally, the Neighborhood Commercial (C-N) zoning allows for businesses to be located
within strategic areas near neighborhoods. Policy 3.3.1 of the LUE states in part that "The City
shall provide for new or expanded areas of neighborhood commercial within, or extended into,
nonresidential areas adjacent to residential neighborhoods." Based on existing policies within
the LUE, a new program for microbusinesses in or near residential neighborhoods would be
better suited for the LUE rather than the Housing Element. Staff is recommending that if this is
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an important item for Council, to provide direction to staff to consider as part of upcoming work
plans for the LUE or 2021-2023 Financial Plan.
5. Reform CC&Rs
As noted by Council, there are many CC&Rs still in existence within the City that include
provisions that are discriminatory. Once a housing project is complete, management of the
CC&Rs falls to the property owners and/or Homeowners Association (HOA). CC&Rs that are
discriminatory are contrary to state and federal law and are therefore null and void. Currently,
the County of San Luis Obispo offers a low-cost service to redact any illegal, restrictive
covenants. Although these covenants are no longer enforceable, many property owners have
taken the opportunity to remove the offending language from their property deeds. A copy of the
required form is attached for reference (Attachment H).
6. Graywater Systems
Council indicated that a graywater program could potentially be included as part of the Housing
Element Update. Graywater systems are allowed in the City and depending on the amount of
graywater released may mean a permit is required. The Utilities Department has provided an
outline of the requirements on the City's website
(https : //www. slocity. org/govemment/department-directory/utilities-
department/conservation/grraywater-s. sue). Graywater is regulated by the California Plumbing
Code and Chapter 16 states that graywater must be used as it is created and cannot be stored on
site for any purpose. There are three different classifications of graywater systems: 1) Clothes
Washer System; 2) Simple System (less than 250 gallons/day); and 3) Complex System (more
than 250 gallons/day). These three classifications vary in complexity and permitting
requirements. The clothes washer system is the most common, and widely used system and uses
wastewater from laundry to directly water a garden via a gravity fed line and does not require
permitting of any type. Because this is an issue already addressed in the California Building
Code, staff does not recommend referencing graywater systems in the Housing Element.
7. Restrictive Covenants
A companion recommendation in this report is to adopt a resolution with the title, "A Resolution
of the City Council of the City of San Luis Obispo, California, to Resolve that the City of San
Luis Obispo Commits to being a Safe, Inclusive and Welcoming Community for Everyone and
to Facilitate Voluntary Citizen Action to Redact or Repudiate Racist and Discriminatory
Verbiage from Their Property Deeds." (Attachment G) The City Council has expressed a
commitment to making San Luis Obispo a welcoming, inclusive, and safe community for
everyone, and to promoting free thought and speech, while condemning racism, hate speech,
bigotry, violence, and prejudice. Adoption of the proposed resolution will commit the City to
further this cause with respect to facilitating the removal of discriminatory language from
property deeds in the City.
Planning Commission Action
On July 22, 2020, the Planning Commission unanimously recommended the City Council adopt a
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resolution approving updates to the City's Housing Element and Negative Declaration of
Environmental Impact. The Planning Commission provided feedback at both the June I01h and
July 22"d meetings regarding minor revisions to the goals, policies, and programs, including an
additional policy and two new programs to address healthy communities (see discussion above
and Attachment B).
California Department of Housing and Community Development (HCD)
Once a jurisdiction has completed a draft update to its housing element, it is required to be
submitted for review and certification by the State of California. The Housing Element is the only
Element in the General Plan that requires this review and certification process. The Department of
Housing and Community Development (HCD) has been tasked to review Housing Elements for
compliance with state law. HCD has 60 days to review the draft Housing Element and work with
the City on any changes to the document. At the end of the 60 days, HCD issues a letter with their
findings. The letter is usually a good indicator that HCD will certify the Housing Element, with
their recommended modifications, once it is adopted by the City Council. Having a certified
Housing Element allows the City to access state funds for future housing projects.
On July 7, 2020, the City submitted a draft of the Housing Element Update to HCD for review.
On August 6, 2020, City staff held a phone conference with staff from HCD to discuss their
preliminary review of the Draft Housing Element Update and the revisions that needed to be
made. On September 4, 2020, staff received a letter from HCD with the remaining items that
needed to be modified in order for the Housing Element to be certified (Attachment D).
Staff worked with HCD to address the items outlined in the letter and are reflected in the
redlined Housing Element Update (Attachment E). The different colored redlines/revisions are
not color coded and do not represent anything but a change to the original text that was presented
to Council on September 1, 2020. Any yellow highlighted text are revisions that have been made
since the Revised Housing Element Update was posted on the City's website on October 29,
2020. Color coded revisions to the Goals, Policies and Programs are provided in Attachment B.
New programs that have been added to the Housing Element Update in response to HCD's
comments and to comply with State Law. Below is the program number and the language of the
new programs.
Program 2.16: Create and make available to interested parties an informational
packet that explains SB 35 streamlining provisions and eligibility within two
years of Housing Element adoption.
Program 3.10: In order to mitigate the loss of affordable housing units,
replacement housing units shall be provided for sites identified in the site
inventory when any new development (residential, mixed -use or non-residential)
occurs on a site that has been occupied by or restricted for the use of lower -
income households at any time during the previous five years. This requirement
applies to: non -vacant sites and vacant sites with previous residential uses that
have been vacated or demolished (see Government Code, section 65583.2,
subdivision (g)(3), and Government Code, section 65915, subdivision (c)(3)).
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Program 4.7: The City shall support Affirmatively Further Fair Housing by:
• Facilitating public education and outreach by providing informational flyers
on fair housing and reasonable accommodation at public counters and on the
City's website. Information will be included with utility billing at least once
per year.
• Training staff, elected officials, and appointees on issues of disparity,
structural racism, and inequality.
• Implementing language standards and procedures for providing equal access
to City services and programs to all residents, including persons with limited
proficiency in English.
• Deed -restricting units to provide affordability and reduce displacement.
• Supporting new technologies and/or products such as modular housing
construction to reduce costs and increase access to housing.
• Distributing information regarding tenant rights and Fair Housing resources as
part of Code Enforcement's response to housing code enforcement issues.
Program 4.8: Continue to distribute information regarding Fair Housing by
providing up to date information online and brochures at the front counter,
providing educational materials to tenants, property owners and property
managers, and making public service announcements (including but not limited to
the City's News page, social media sites, and newspaper ads) every year.
Program 5.5: Update the Zoning Regulations to allow mixed -use development
within Service Commercial (C-S) and Manufacturing (M) zones without a use
permit within three years of the adoption of the Housing Element.
Program 8.18: Review and amend the Zoning Regulations within one year of
Housing Element adoption to ensure compliance with: 1) the Supportive Housing
Streamlining Act (AB 2162) to allow supportive housing a use -by -right in zones
where multi -family and mixed uses are permitted, including nonresidential zones
permitting multifamily uses, if the proposed development meets specified criteria;
and 2) AB 101, to allow Low Barrier Navigation Centers by -right in all residential
zones, areas zoned for mixed -uses, and nonresidential zones permitting
multifamily uses.
Program 8.23: Update Zoning Regulations, within two years of Housing Element
adoption, to be consistent with the Employee Housing Act; including: 1) an
update of Table 2-1 to allow single -unit dwellings without a Conditional Use
Permit within the Open Space and Conservation (C/OS) zone and employee
housing consisting of no more than 36 beds in a group quarters, or 12 units or
separate rooms or spaces designed for use by a single-family or household within
the C/OS and AG zones, and 2) remove Chapter 17.148 - High -Occupancy
Residential Use Regulations.
To address conflicts of the Zoning Regulations and the Employee Housing Act, the City is
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including new Program 8.23 in the Housing Element Update. Program 8.23 is necessary because
the City allows agricultural uses within the Agricultural (AG) and Conservation and Open Space
(C/OS) zones and per State Law, employee housing (i.e. farmworker housing) must be allowed
in these zones as well. Any project proposed would be required to comply with the City's
development standards and code requirements, including the ability for the project to be served
by City services and be located within the urban reserve line (URL).
Programs that Further Support the Development of Housing
HCD provided comments that the City has not successfully shown how affordable units will be
developed on the sites identified in the inventory (see Attachment F, Appendix E). As such, HCD
stated that the Housing Element must include programs that will incentivize, streamline, support,
etc. the development of housing, especially affordable units. The following programs have been
proposed to HCD and added to the Housing Element. They outline how the City will streamline
the review of housing projects that meet certain criteria.
One item to note is that in two of these programs it states, "allow [housing] developments ... by
right." `By right," under Government Code section 65583.2 (i)), means the City shall not require:
a conditional use permit; a planned unit development permit; or other discretionary review or
approval. It is important to note that this includes Architectural Review, which is the process that
the City uses to apply its Community Design Guidelines to development projects. To ensure that
the intent of the City's design review process is honored, Program 6.22 directs staff to develop
"objective design standards" into the Zoning Regulations. This process will ensure that the most
important design criteria can still be applied to a housing project that is allowed "by right" or with
no discretionary review.
Program 2.17: In order to provide adequate sites for lower income households on
non -vacant and vacant sites previously identified in the Housing Element (Table
E-2), the City will, within one (1) year of the adoption of the Housing Element
Update, allow developments (including mixed -use projects) that include at least
20 percent of the residential units as affordable to lower income households, by
right (no discretionary review).
Program 2.18: Utilize objective design standards to allow residential uses by right
(no discretionary review) for those developments (including mixed -use projects)
that include at least 20 percent of the residential units as affordable to low income
households.
Program 6.22: Update the City's municipal code to expand objective design
standards within one year of the adoption of the Housing Element Update.
Program 6.23: Update the development review process and expand the thresholds
of each review level (minor, moderate, and major) to eliminate or reduce the
number of public hearings required for housing projects within one year of
adopting the Housing Element.
Staff is wrapping up informal discussions with HCD and further changes are anticipated per
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those discussions. Staff has added a section to the draft Resolution (Attachment A) that requests
authority be delegated to staff to allow for minor/administrative edits after the adoption of the
Housing Element to achieve State certification.
Policy Context
The proposed amendments to the Housing Element are consistent with other land use goals and
policies of the General Plan.
CONCURRENCE
Staff comments have been incorporated into the draft Housing Element.
ENVIRONMENTAL REVIEW
A Negative Declaration of Environmental Impact is recommended for the Housing Element
Update (Attachment F). No potentially significant or significant impacts were identified. A
Negative Declaration is therefore recommended for adoption in accordance with CEQA
Guidelines section 15063(b)(2): "The lead agency shall prepare a negative declaration if there is
no substantial evidence that the project or any of its aspects may cause a significant effect on the
environment." A 30-day public comment period was opened on July 9, 2020. A Notice of Intent
to Adopt was filed with the County- Clerk Recorder and the State Clearing House.
FISCAL IMPACT
Budgeted: No
Funding Identified: No
Fiscal Analvsis:
Budget Year: 19-21
Funding Sources
Current FY Cost
Annualized
On -going Cost
Total Project
Cost
General Fund
N/A
State
Federal
Fees
Other:
Total
The Housing Element Update is a work program in the Housing Major City Goal adopted as part
of the 2019-21 Financial Plan. The update was conducted entirely by City staff. Funding was
provided as part of the Community Development Department budget for additional staff
resources needed to cover normal workload while the project planner worked through the
Housing Element update process. Adoption of the Housing Element Update prior to December
31, 2020 will ensure that the City has an effective Housing Element in place to start the new
calendar year.
If the City does not adopt its Housing Element Update before the end of the year then it will be
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Item 16
without a Housing Element until the update is certified by the State, which could take months.
Going without a Housing Element is not recommended because, during this period of time, the
City would not be eligible for grant applications through HCD or other State funding resources.
Over the past several years, the City has received well over $1 million in grants from the State
due to our certified Housing Element. There are currently a wide range of grants that the City
will be applying for and maintaining an active, certified Housing Element is crucial to this effort.
One of the fundamental aspects and takeaways from the update is that new housing programs
when combined with existing housing programs and affordable housing monitoring is a
significant resource commitment. Administration of the City's new slate of housing programs
will require the allocation of dedicated, full-time staff and thus the Community Development
Department will likely need to evaluate resources available to support core essential housing
programs as part of its 2021-23 Financial Plan work program. Recent housing law and HCD
enforcement efforts indicate that the City will be well served to dedicate sufficient resources to
Housing Element implementation to ensure success.
ALTERNATIVES
1. Modify the Proposed 6th Cycle Housing Element. The Council may modify the proposed
Housing Element. Specific direction should be given to staff regarding any modifications.
2. Continue the review of the 6th Cycle Housing Element. An action to continue the item
should include direction to staff on pertinent issues. This alternative is not recommended as
the Housing Element must be submitted to HCD by December 31, 2020. Jurisdictions on an
8-year planning period that do not adopt their element within 120 calendar days from the
start date of the planning period must revise and adopt the housing element every four years
until timely adopting at least two consecutive revisions by the applicable due date.
Additionally, late adoption could impact the City's eligibility to receive State funding for
housing projects.
Attachments:
a - Draft Resolution
b - Chapter 3 Redline Matrix
c - Planning Commission Resolution No. PC-1017-2020
d - Letter from the Dept. of Housing and Community Development
e - COUNCIL READING FILE - Revised Draft Housing Element
f - COUNCIL READING FILE - Initial Study
g - Resolution to support redaction of rascist language from property deeds.
h - Restrictive Covenant Removal Form
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Item 16
RESOLUTION NO. (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AND ADOPTING A NEGATIVE
DECLARATION OF ENVIRONMENTAL IMPACT AND AMENDMENTS
TO THE HOUSING ELEMENT OF THE GENERAL PLAN AS
REPRESENTED IN THE COUNCIL AGENDA REPORT AND
ATTACHMENTS DATED NOVEMBER 17, 2020 (GENP-0217-2020 & EID-
0218-2020)
WHEREAS, State law requires cities and counties to adopt a general plan. The General
Plan includes nine required elements, one of which is the Housing Element. The Housing Element
must be updated every eight (8) years or as otherwise provided by State law; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a web
based public hearing, on July 22, 2020, and recommended approval of a Negative Declaration of
Environmental Impact and amendments to the Housing Element to address the changing needs,
resources, and conditions in the Community, as required by State law; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a web based
public hearing, on September 1, 2020, and considered the Planning Commission's
recommendation, authorized staff to continue to work with HCD to ensure that the Housing
Element fully complies with its guidelines, provided direction to staff regarding modifications to
the Housing Element, and directed staff to return to City Council for final approval of the Housing
Element; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a web based
public hearing, on November 17, 2020, for the purpose of considering the Negative Declaration of
Environmental Impact and amendments to the Housing Element; and
WHEREAS, the City facilitated 12 presentations, meetings, online surveys, and a public
workshop to identify housing needs, issues and opportunities in the community and inform policy
and program changes; and
WHEREAS, notices of said public hearing were made at the time and in the manner
required by law; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
17
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Item 16
Resolution No. (2020 Series) Page 2
SECTION 1. Findings. This Council, after considering the 6th Cycle Housing Element
update, the Planning Commission's recommendations, staff recommendations, public testimony
and correspondence, and reports thereon, makes the following findings:
1. The proposed amendments included in the draft Housing Element are consistent with other
land use goals and policies of the General Plan.
2. The proposed amendments are appropriate and necessary to ensure that the City's Housing
Element meets State law and the changing needs, resources, and conditions in the
community.
3. The City facilitated 12 presentations, meetings, online surveys, and a public workshop to
identify housing needs, issues and opportunities in the community and inform policy and
program changes.
4. The City has evaluated its ability to accommodate its Regional Housing Need Allocation
(RHNA) number of 3,354 dwellings by December 2028 and determined there is sufficient
land suitable for residential development to accommodate the RHNA number within the
planning period.
5. Achieving Housing Element State certification will promote affordable housing
opportunities and help achieve adopted housing goals by making the City eligible for
various housing grants and financial incentives, and will foster cooperation among local
and state agencies in addressing an urgent need for affordable housing in the City.
SECTION 2: Environmental Review. The City Council does hereby adopt a Negative
Declaration of Environmental Impact in accordance with CEQA Guidelines section 15063(b)(2):
"The lead agency shall prepare a negative declaration if there is no substantial evidence that the
project or any of its aspects may cause a significant effect on the environment."
SECTION 3. Action. The City Council does hereby adopt the proposed amendments to
the Housing Element, which is incorporated herein by reference, and directs staff to complete any
minor, administrative changes to the Housing Element that are required by the State of California
Department of Housing and Community Development (HCD) for certification. Should HCD
require substantial changes to the Housing Element adopted herein, staff shall bring such changes
back to Council for review and adoption.
SECTION 4. Effective Date. The 6th Cycle Housing Element shall become effective
immediately upon adoption of this resolution.
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Item 16
Resolution No. (2020 Series) Page 3
SECTION 5. Repeal of Previous Element. The Housing Element adopted January 20,
2015, is repealed upon the effective date of the 6th Cycle Housing Element.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of 2020.
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on
Teresa Purrington
City Clerk
f:7
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Item 16
GENP-0217-2020 & EID-0218-2020
Attachment B: Housing Element Goals, Policies, and Programs Redlined
Matrix
The matrix below provides a legislative draft of Housing Element Chapter 3: goals, polices, and
programs. A brief description is provided explaining why the proposed modification or addition
or removal better achieves housing goals or state requirements.
• Initial modifications made to existing Goals, Policies and Programs are shown in red.
• Modifications based on Planning Commission direction and public comment are shown in
blue.
• Modifications made based on direction provided by the State of California Housing and
Community Department (HCD) are shown in green.
• Modifications made based on City Council direction are shown in purple.
• Changes highlighted in yellow are based on direction provided by HCD after the revised
public draft was posted online.
• Policies are highlighted in gray.
# New # Goals
Policy/Program
Reason for Modification
OWN"='
1.1 1.1 Safety
Assist those citizens unable to obtain safe shelter
on their own.
1.2 1.2 Safety
Support and inform the public about fair housing
laws and programs that allow equal housing
access for all city residents.
1.3 1.3 Safety
Maintain a level of housing code enforcement
Updated to be consistent with current
stiffieien4 to correct unsafe, unsanitary or illegal
code enforcement priorities.
conditions and to preserve the inventory of safe
housing, consistent with City Council's code
enforcement priorities.
1.4 Safety
Assist owners of older residences with
Per Planning Commission (PC)
information on ways to repair and upgrade older
comments on June 10, 2020, staff is
structures to meet higher levels of building safety,
recommending a new policy that
efficiency, and sustainability.
supports improvements to o er
residential structures.
1.4
1.5
Safety
Continue to improve Correct unsafe, unsanitary
Added language from Program 3.9.
or illegal housing conditions, improve barrier to
The RHNA provides the objectives
accessibility, and energy efficiency, or and
for the 6t' Cycle Housing Element.
ireve unsafe neighborhoods annually by
Rehm 1) using Federal, State and local
housing funds, such as Community Development
Block Grant Funds and 2) proactively promoting
neighborhood wellness through Code
Enforcement's Neighborhood Service Program.;
the 30 family, 75
with objectives of single multi
family, 10 histerie, 20 w.^'- for
and es
ow, 'low, low
extremely very and moderate
income homeow dufing the
ers—and renters
Wannine i)eried. Code Enforcement staff shall
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Item 16
# New # Goals ]L._ Policy/Program
2.1 2.1
continue to provide property owners and tenants
with information on how to rectify violations,
who to contact in Code Enforcement for
assistance, and other resources that may be
pertinent to the citation.
Reason for Modification
Safety Continue code enforcement to expedite the
removal of illegal or unsafe dwellings, to
eliminate hazardous site or property conditions,
and resolve chronic building safety problems.
Safety In May 2015 the City Council adopted
. the Rental Housing Inspection
Ordinance. In March 2017 the City
Council voted to repeal the ordinance.
Safety Continue to support local and regional solutions Maxine Lewis Memorial Shelter and
to homelessness by funding supportive programs the Prado Day Center are now housed
services, and housing solutions. such within the 40 Prado Homeless Service
Maxine Lewis r,remer-ia Shelter- and The Wade Center.
Day center-.
Safety
Affordability Income Levels For Affordable Housing
households. For purposes of this Housing
Element, affordable housing is that which is
obtainable by a household with a particular
income level, as further described in the City's
Affordable Housing Standards. Housing
affordable to Extremely Low, Very Low, Low,
and Moderate income persons or households
shall be considered "deed -restricted affordable
housing." Income levels are defined as follows:
❑ Extremely low 30% or less of County Area
median household income
❑ Very low: 31 to 50% of County Area median
household income.
❑ Low: 51 % to 80% of County Area median
household income.
Unreinforced masonry buildings have
been retrofitted to meet current
building code requirements. Proactive
education is complete because no
additional structures need seismic
retrofits. Although complete, staff
will continue to have information
available regarding seismic hazards
for those community members
interested in further education.
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GENP-0217-2020 & EID-0218-2020
Item 16
# New #
2.2 2.2
2.3 2.3
2.4 2.4
2.5 12.5
Goals I Policy/Program
❑ Moderate: 81% to 120% of County Area
median household income.
❑ Above moderate: 121 % or more of County
Area median household income.
Affordability Index of Affordability. The Index of
Affordability shall be based on the City's
Affordable Housing Standards, updated annually
per the County of San Luis Obispo's Area
Median Income determined by California
Department of Housing and Community
Development. whetheF the monthly eost -of
households,housing fits within the following limits:
For- extfemely low ineome v
than 250,46 of monthly ineotne.
For very to r'and low 'inoome households, no
301% of monthly ineeme.
For above moderate income households, no
index.
Those ;,,dices may be modified of expanded if the
StateofCali€emia modifiesr or- e"ands its
definition of r-`ll y for- these ineofne
Affordability For housing to qualify as "deed -restricted
affordable" under the provisions of this Element,
guarantees must be presented that ownership or
rental housing units will remain affordable for the
longest period allowed by State laws a
shorter period under- an equity sharing or 1,ousin
rehabilitation agreement with the City,
Affordability Encourage housing production for all financial
strata of the City's population, as allocated in the
pr-apei4ieas shown in the Regional Housing
Needs Allocation, for the 20114-2919 6th cycle
planning period. The number of units per income
category are These rtioare: extremely
low and ineeme /, 12 per-ee t, very low income,
12 per-een 825 units; low income, 16 per-eent 520
units; moderate income, 18 percent 604 units; and
above moderate income, 42 percent 1,405 units.
Affordability Continue to manage the Affordable Housing
Fund so that the fund serves as a sustainable
resource for supporting, at a minimum, 4 new
affordable housing development during the
planning period. The fund shall serve as a source
of both grant funding and below market financing
for affordable housing projects; and funds shall
be used to support a wide variety of housing types
at the following income levels: extremely low,
very low, low, and moderate, but with a focus on
production efficiency to maximize housing
Reason for Modificatic
Updated the policy to have the ability
to remain consistent with
standardized County data.
The Equity Share Program has a 45-
year deed restriction if an owner does
not choose to exercise the equity share
option.
Updated with the new RHNA under
the 6' Cycle Housing Element.
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Item 16
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
benefits for the City's financial investment, and
to support high quality housing projects that
would not be feasible without Affordable
Housing Fund support.
2.6 2.6
2.7
2.8
2.7
Affordability
Cep Review existing and proposed
building, planning, engineering and fire policies
and standards every year as housing
developments are ea to determine whether
changes are possible that could assist the
production of affordable housing, or that would
encourage preservation of housing rather than
conversion to non-residential uses, provided such
changes would not conflict with other General
Plan policies. Such periodic reviews will seek to
remove regulations on ^-a annual h^^ ^ within 2-6
months that have been superseded, are redundant
or are no longer needed.
Affordability
Continue to prioritize impiemen4 exisfing
Updated language to be consistent
procedures that speed up the processing of
with City policies and processes.
applications, construction permits, and water and
sewer service priorities for affordable housing
projects. City staff and commissions shall give
such projects priority in allocating work
assignments, scheduling, conferences and
hearings. and ^ and issuing ^ et4s and
Ater a -ad sewer-ser-viee..11e,...t:en
Affordability
Continue to e braid^ funding for-
Reductions have been built into the
psoufoes
the of City impact fees e that
new fee structure that was approved as
payment new
dwellings that the City' housing
a part of AB 1600 in 2018.
meet aff r-dable
their facility
standards c mitigate and service
impacts housing
without adver-s€iy affecting
2.9 ----- Affordability To the extent outside funding sources n he Reductions have been built into the
identified to off -set impacts on City ands exempt new fee structure that was approved as
dwellings that meet the moderate income, a part of AB 1600 in 2018.
Affordable Housing Standards ffom pla—ing,
building andeagmeer-mgdevelopment
and pei:mit fees, meluding water- meter-
stallation fee. Maint HIS; €er
extFemely la very low Am- ad leiN, meame
households,
2.10 2.8 Affordability Continue to Coordinate an annual public and
private sector actions meeting to discuss and
encourage the development of housing that meets
the City's housing needs.
2.11 2.9 Affordability Continue to Assist with the issuance of tax- Eliminating the examples allows for
exempt bonds, tax credit financing, loan more opportunities and flexibility to
underwriting or other financial tools to help fund affordable housing
develop or preserve at least 20 affordable units opportunities.
annually through various programs.
but net limited te. (1) below .. aFyet F:....,..., ing
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Item 16
GENP-0217-2020 & EID-0218-2020
New # Goals Policy/Program Am Reason for Modification
Ml subsidized .v.ertgages for- wafemely low,
very low, low and moderate ineome persons n
fist time home buyers, and (3) self help e
"sweat equity" ho t he
2.12
2.10
Affordability
Consider- updating Update the Affordable
Added language based on findings
Housing Standards to include irlcer-perating
and recommendations from the 2020
Homeowners' Association (HOA) fees and a
Affordable Housing Nexus Study.
standard allowance for utilities in the calculation
for affordable rents and home sales prices within
two years of adopting the Housing Element.
2.13
2.11
Affordability
In conjunction with the Housing Authority and
other local housing agencies, continue to provide
on -going technical assistance and education to
tenants, property owners and the community at
large on the need to preserve at -risk units as well
as the available tools to help them do so.
2.14
2.12
Affordability
In conjunction with level housing providers and
Updated language to be consistent
the lee -al residential design community, continue
with City policies and processes.
to Continue to provide technical assistance
planning services as requested by the public,
builders, design professionals and developers
regarding desiga strategies to achieve affordable
housing and density bonuses.
2.15
2.13
Affordability
Update the Inclusionary Housing Ordinance,
Added language based on findings
including Table 2A, based on findings and
and recommendations from the 2020
recommendations in the 2020 Affordable
Affordable Housing Nexus Study.
Housing Nexus Study and conduct further
feasibility analysis in order to Eevaluate the
inclusionafy Housing Ordinance
requirements
,,1 the effect of Table 2 n o the City's ability to
provide affordable housing in the proportions
shown in the Regional Housing Needs
Allocation, per Policy 2.4.
2.16
-----
Affordability
The City e ate , er : ..
Creating a workforce level of
will alo and si eludip^
„Fkf ree level f f rdabilit.. ; its Affordable
affordability was examined and found
Of a
Housing Standards to ; e e >,00sirg :
that it could not be successfully
options
the City for these between 121 e e..t
implemented on a citywide basis as
making
160 ert of the San Lois Obispo Coo t.,
there are no existing State standards
and pe s
income. This lty—sateger-y
for such an income level.
median —ma
be t.. inclusionary housing
cannot used meet
is for
ordinance requirements and of eligible
able Housing Funds.
2.17
2.14
Affordability
Continue to consider support increasing density
Reordered wording.
bonuses for residential projects densities above
the state density bonus allowance of 35% for
pr-ojeets that provide housing f r to promote the
development of units for extremely low, very low
and low income households.
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Item 16
GENP-0217-2020 & EID-0218-2020
# New #
Policy/Program
Reason for Modification
2.15
Affordability
Evaluate a flexible density pilot program and
This program was recommended in
initiate an update of the Zoning Regulations and
part by input from the community and
Community Design Guidelines to incorporate
the work program associated with the
flexible density development options in
Housing Major City Goal. The
Downtown Core and portions of Upper Monterey
community and Council identified
and Mid-Higuera Special Focus Areas to support
that the Downtown and portions of
the production of 50 smaller residential units (150
Upper Monterey and Mid-Higuera
to 600 square feet) per year during the planning
Special Focus Areas could be
period.
appropriate for higher density housing
2.16 Affordability Create and make available to interested parties an
informational packet that explains SB 35
streamlining provisions and eligibility within two
years of Housing Element adoption.
2.17 Affordability In order to provide adequate sites for lower
The City is subject to SB 35
streamlining. This packet would
provide information for developers,
the public, and staff on what projects
quantify for the process and the steps
that must be taken to submit a project
under SB 35 streamlining provisions.
Per Gov. Code Section 65583.2,
income households on non -vacant and vacant
subsection (c), sites that have been
sites previously identified in the Housing
listed in previous Housing Element
Element (Table E-2), the City will, within one (1)
are subject to a Housing Element
year of the adoption of the Housing Element
program that allows housing
Update, allow developments (including mixed-
development by right (no
use projects) that include at least 20 percent of the
discretionary review) when 20% of
residential units as affordable to lower income
the units are affordable to low income
households, by right (no discretionary review).
households.
This program is an opportunity for the
2.18 Affordability In order to provide adequate sites for lower
income households on non -vacant and vacant
City to incentivize the development of
sites previously identified in the Housing
affordable housing for low income
Element (Table E-2), the City will, within one (1)
households in other areas or specific
year of the adoption of the Housing Element
sites within the City that are not listed
Update, allow developments (including mixed-
within the Housing Element inventory
use projects) that include at least 20 percent of the
(Appendix E).
residential units as affordable to lower income
households, by right (no discretionary review).
3.1 3.1 Housing Continue to encourage the rehabilitation,
Conservation remodeling or relocation of sound or rehabitable
housing rather than demolition. Demolition of
non -historic housing may be permitted where
conservation of existing housing would preclude
the achievement of other housing objectives or
adopted City goals.
3.2 3.2 Housing Discourage the removal or replacement of
Conservation housing affordable to extremely low, very -low,
low- and moderate income households, and avoid
permit approvals, private development,
municipal actions or public projects that remove
or adversely impact such housing unless such
actions are necessary to achieve General Plan
objectives and: (1) it can be demonstrated that
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GENP-0217-2020 & EID-0218-2020
Item 16
# New # Goals I Policy/Program
rehabilitation of lower -cost units at risk of
replacement is financially or physically
infeasible, or (2) an equivalent number of new
units comparable or better in affordability and
amenities to those being replaced is provided, or
(3) the project will correct substandard, blighted
or unsafe housing; and (4) removal or
replacement will not adversely affect housing
which is already designated, or is determined to
qualify for designation as a historic resource.
3.3 ----- Housing >~n,.,,,, age, - des of older dwellings to
Conservation reduce the risk of L..,dily harm and the less housing in an eat4liquake.
3.4 3.3 Housing Encourage the construction, preservation,
Conservation rehabilitation or expansion of residential hotels,
group homes, integrated community apartments,
and single -room occupancy dwellings.
3.5 3.4 Housing Preserve historic homes and other types of
Conservation historic residential buildings, historic districts
and unique or landmark neighborhood features.
Reason for Modificatic
All multi -family structures have been
retrofitted and single-family
residences are exempt from seismic
retrofits. Additionally, any upgrades
to older residential structures is now
covered in the proposed new Policy
1.4.
3.6 ----- Housing Preserve the fabr-ie, -ds(i.e Moved to Goal 7: Neighborhood
Conservationsetbacks), and over-all G> liyy of life Quality & Design and is now Policy
of established 7.9.
3.7 3.5 Housing Encourage and support creative strategies for the
Conservation rehabilitation and adaptation and reuse of
residential, commercial, and industrial structures
for housing. mm"
3.8 ----- Housing Adopt an ar-d anee that implements policy 3.2 to Affordable housing units are
Conservation dise^..r.,ge re alreplacement ofaffordable protected by the State of California
loosing Housing Accountability Act, SB 330
(see Policy 3.2), and the "no net loss"
requirements of SB 166. An
ordinance is no longer required.
3.9 ----- Housing ConestUnsafe, flitar- . Or illegal IIER iffg
Conservation eeliaitiens, ....F-1assessibilit-y and ever-gy
e€ ieieney Helghlorleeds by
collaborating with agencies offering
rehabilitation programs. City will use State or
Federal grants or other housingfunds to
implement the program and provide services such
ashome—weatlerization,repair-ancluniversal
Consolidated this program by adding
the first sentence to Policy 1.4 which
provides a broader context to support
all housing including the preservation
of existing housing.
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Item 16
GENP-0217-2020 & EID-0218-2020
ff New #
Pohcy/Program
Reason for Modification
3.10 3.6
Updated to be consistent with Zoning
Housing
Continue to encourage the creation of dwellings
Conservation
in the Downtown Core (C-D Zone) and the
Regulations update.
Downtown Planning Area by continuing the "no
net housing loss" program, consistent with
Chapter 17.86 17.142 (Downtown Housing
Conversion Regulations) of the Zoning
Regulations.
3.11
3.7
Housing
Continue to identify residential properties and
Conservation
districts eligible for local, State or Federal
historic listing in accordance with guidelines and
standards to help property owners repair,
rehabilitate and improve properties in a
historically and architecturally sensitive manner.
3.12
3.8
Housing
Continue to monitor and track affordable housing
Conservation
units at -risk of being converted to market rate
housing annually and verify that tenants are
properly notices and aware of their rights.
Provide resources to support the Housing
Authority, and local housing agencies, purchase
and mana a at -risk units.
3.13
3.9
Housing
Work annually with non-profit organizations,
Conservation
faith -based organizations, or the Housing
Authority of the City of San Luis Obispo,,
will- to encourage rehabilitation of residential,
commercial or industrial buildings to expand
extremely low, very -low, low or moderate
income rental housing opportunities.
3.10 Housing
In order to mitigate the loss of affordable housing This is a new requirement of state law.
Conservation
units, replacement housing units shall be
provided for sites identified in the site inventory
when any new development (residential, mixed -
use or non-residential) occurs on a site that has
been occupied by or restricted for the use of
lower -income households at any time during the
previous five years. This requirement applies to:
non -vacant sites and vacant sites with previous
residential uses that have been vacated or
demolished (see Government Code, section
65583.2, subdivision (g)(3), and Government
Code, section 65915, subdivision (c)(3)).
Goal 4 - Mixed -Income Housing.
Preserve and accommodate existing and new mixed income neighborhoods and seek
4.1 4.1 Mixed -Income Within newly developed neighborhoods, housing
Housing that is affordable to various economic strata
should be intermixed rather than segregated into
separate enclaves. The mix should be comparable
to the relative percentages of extremely low,
very -low, low, moderate and above -moderate
income households in the City's quantified
objectives.
Packet Page 258
GENP-0217-2020 & EID-0218-2020
Item 16
# New # Goals Policy/Program
4.2 4.2 Mixed -Income Include both market -rate and affordable units in
Housing apartment and residential condominium projects
and intermix the types of units. Affordable units
should be comparable in size, appearance, and
basic quality to market -rate units.
4.3 4.3 Mixed -Income Extremely -low and very low-income housing,
Housing such as that developed by the Housing Authority
of the City of San Luis Obispo or other housing
providers, may be located in any zone that allows
housing, and should be dispersed throughout the
City rather than concentrated in one
neighborhood or zone.
4.4 4.4 Mixed -Income In its discretionary actions, housing programs and
Housing activities, the City shall affirmatively further fair
housing and promote equal housing opportunities
for persons of all economic segments of the
community.
4.5 4.5 Mixed -Income Review new development proposals for
Housing compliance with City regulations and revise
projects or establish conditions of approval as
needed to implement the mixed -income policies.
4.6
4.6
Mixed -Income
Ce�Amendi*g the City's Inclusionary
Housing
Housing Ordinance and Affordable Housing
ineentives to require that affordable units in a
development be of similar size, number of
bedrooms, character and basic quality as the
nonrestricted units in locations that avoid
segregation of such units including equivalent
ways to satisfy the requirement. Also evaluate
adjusting the City's allowable sales prices for
deed -restricted affordable units per a variety of
unit types.
4.7
Mixed -Income
The City shall support Affirmatively Further Fair
Housing
Housing (AFFH) by:
• Facilitating public education and outreach by
providing informational flyers on fair housing
and reasonable accommodation at public
counters and on the City's website. Information
will be included with utility billing at least once
per year.
• Training staff, elected officials, and appointees
on issues of disparity, structural racism, and
inequality.
• Implementing language standards and
procedures for providing equal access to City
services and programs to all residents, including
persons with limited proficiency in English.
• Deed -restricting units to provide affordability
and reduce disDlacement.
Reason for Modification
Added language based on findings
and recommendations from the 2020
Affordable Housing Nexus Study.
New requirement per state law.
Packet Page 259
GENP-0217-2020 & EID-0218-2020
Item 16
# New # Goals L_ I Policy/Program
• Supporting new technologies and/or products
such as modular housing construction to reduce
costs and increase access to housing.
• Distributing information regarding tenant rights
and Fair Housing resources as part of Code
Enforcement's response to housing code
enforcement issues.
4.8 Mixed -Income Continue to distribute information regarding Fair
Housing Housing by providing up to date information
online and brochures at the front counter,
providing educational materials to tenants,
property owners and property managers, and
making public service announcements (including
but not limited to the City's News page, social
media sites. and newsnaner ads) every vear.
5.1 -----
Housing
Eneourage—the integration of appropriately
Variety
sealed,o .,l weeds > hosing int developments
..b.b.er-h ods „F,.onye«ti„„al L hosing
5.2 5.1
Housing
Encourage mixed -use residential/commercial
Variety
projects in all commercial zones, especially those
close to activity centers where compatible with
existing and planned surrounding development.
to include live work a -a work live units where
housing and other- eemmereial oses are
5.3 -----
Housing
offiees or-
eampatible,
>~n, .,rage the development of Loosing above
Variety
gr-eond level retail stores a -a off ees to p ide
5.4 5.2
Housing
New planned frr general, housing developments
Variety
of twenty (20) o should provide a
variety of dwelling types, sizes and styles or
forms of to
5.3
Housing
Encourage the development of a variety of
Variety
"missing middle" housing types.
5.5 LAO
Review new developments for compliance with
Variety
City regulations and revise projects , establish
conditions of approval as needed to implement
Reason for Modification
The Housing Element needs to show
how the City supports Fair Housing.
AB 101 allows this type of housing in
all zones and there is limited ability
control scale and design.
Combined with Policy 5.3 to form one
policy that encourages mixed -use
development, consistent with the
Zoning Regulations update which no
longer identifies live/work or
work/live units separately from
mixed -use.
See above.
This new policy is based on
community feedback and the work
program associated with the Housing
Major City Goal to address the need
for more housing. Missing middle
housing types include duplexes,
triplexes, quadplexes, cottages, etc.
Policy 5.4 also replaces Program 2.16
which discusses workforce housing.
Updated language to be consistent
with City policies and processes.
Packet Page 260
Item 16
GENP-0217-2020 & EID-0218-2020
# New # Policy/Program Reason for Modification
5.4 Housing Evaluate appal tt ities €er metifig and New program to implement new
Variety implement "missing middle" housing types (e.g. Policy 5.3.
duplex, triplex, quadplex, cottages, etc) to
increase housing options in the City within three
ears of adopting the Housing Element.
5.5 Housing Update the Zoning Regulations to allow mixed- New program to support Policy 5.1
Variety use development within Service Commercial (C- and to streamline approval ofprojects
S) and Manufacturing (M) zones by right without with residential units per HCD's
a use permit within three one year of the adoption direction.
of the Housing Element. Consider amending the
Zoning Regulations to streamline the permitting
pFooess F r mixed e,] acts .,1
ems.
t P4anFacilitate the production of t
6.1 6.1 Housing
Consistent with the growth management portion
Production
of its Land Use Element and the availability of
adequate resources, the City will plan to
accommodate up to 3,354 dwelling units for the
6th cycle housing element update in accordance
with the assigned Regional Housing Needs
Allocation., 14 ^ dwelling units between T....ua f y
2014 and Rine 20119 in accordance with the
6.2 ---- Housing
assigned Regional Housing Needs Alloeation.
New e.,,, mereiel developments in the Downtown
Production
Core it D gene) shell include housing unless
the City .Y..,kes e ef'the f llenying F:..,14ig-S•
14eusing is likely to :e ..r.lize the health, a. t.y
yel f re of residents a e .y pleees• or -
6.3 6.2 Housing
The ffepeAy's shape, size, tepegrapky er- ether
physieal €aeter lees eonstraletiefi of new
dwellings infeasible
If City services must be rationed to development
Production
projects, residential projects will be given priority
over non-residential projects. As requir-e,l by S1?
4887-, Housing affordable to lower income
households will be given first priority.
6.4 6.3 Housing City costs of providing services to housing
Production development will be minimized. Other than for
existing housing programs encouraging housing
affordable to extremely low, very -low and low
income persons, the City will not make new
housing more affordable by shifting costs to
existing residents.
6.5 6.4 Housing When sold, purchased, or redeveloped for public
Production or private uses, City -owned properties within the
urban reserve shall include housing as either a
freestanding project or part of a mixed -use
development where land is suitable and
appropriate for housing.
Updated to be consistent with the 6 j
Cycle RHNA. _J
Updated to be consistent with Zoning
Regulations update. The Zoning
Regulations require housing as a part
of any development within the
downtown.
Packet Page 261
GENP-0217-2020 & EID-0218-2020
Item 16
New # Goals
6.6
6.7 6.5
6.8 6.6
6.9 6.7
Policy/Program
Housing PFoPerty loe-at€d behind the former County
Production G€nefalHospital shallbe designated a "Speefal
Considerations" zone and may be eonsideFed
analysis and environmental r-eview, pr-ovided that
development be limited to site areas with aver -age
slopes oFless e than 20 pe -cent That approximately
o half f of the total site area be dedicated F
open space and/or- r„l.lic use, and that an
additional water- tank be provided if .lete...,,ineA
neeessafy to serve , development.
Housing Support the redevelopment of excess public and
Production private utility properties for housing where
appropriately located and consistent with the
General Plan.
Housing Consistent with the City's goal to stimulate
Production higher density infill where appropriate in the
Downtown Coro (C D Zeno, Upper Monterey,
and Mid-Higuera Special Focus Areas„ the City
shall consider changes to the Zoning Regulations
that would allow for flexible density standards
that support the development of smaller
apartments and efficiency units.
Reason for Modification
Completed as a part of the LUE
update as part of the special focus
areas section; Program 8.6. General
Hospital Site.
This policy was updated to encourage
additional residential units not only in
Downtown, but in Upper Monterey
and Mid-Higuera Special Focus Areas
consistent with the City's Major City
Goal work program and new Program
2.15.
Housing Encourage and support employer employee Revised language allows for more
Production financing programs and partnerships to increase flexibility and creativity to implement
housing opportunities specifically targeted the policy.
towards the local workforce.
6.10 6.8 Housing To help meet the 6th cycle RHNA production Updated to be consistent with the 61
Production targets Qoantified Objeetiyes, the City will Cycle RHNA.
support residential infill development and
promote higher residential density where
appropriate.
----- 6.9 Housing Specific plans for any new area identified shall Converted Program 6.14 into a policy.
Production include R-3 and R-4 zoned land to ensure
sufficient land is designated at appropriate
hill densities to accommodate the development of
extremely low-, very low- and low-income
dwellings. ommi
6.11 6.10 Housing Maintain the General Plan and Residential Updated to be consistent with Zoning
Production Growth Management Regulations (SLOMC Regulations update.
17.89144) exemption for new housing in the
Downtown Core (C-D zone), accessory dwelling
units (ADUs), and new housing in other zones
that is enfer-seably for deed -restricted €ef
extremely -low, very low, low- and moderate
income households, pursuant to the Affordable
Housing Standards.
Packet Page 262
Item 16
GENP-0217-2020 & EID-0218-2020
�I New # Policy/Program Reason for Modification
6.12 6.11 Housing Continue to allow flexible parking regulations for
Production housing development, especially in the
Downtown Core (C-D Zone), including the
possibilities of flexible use of city parking
facilities by Downtown residents, where
appropriate, and reduced or no parking
requirements where appropriate guarantees limit
occupancies to persons without motor vehicles or
who provide proof of reserved, off -site parking.
Such developments may be subject to
requirements for parking use fees, use limitations
and enforcement provisions.
6.13 6.12 Housing Continue to evaluate, every two to three years Modified to be consistent with Policy
Production within the planning period, opportunities to 6.6.
develop and implement incentives to encourage
additional housing in the Downtown, Upper
Monterey, and Mid-Higuera Special Focus Areas
particularly in
mixed -use developments. Density based
flexible density in a pr-ejeet should be expler-ed to
6.14
----
Housing
Production
Speeifie plans ie 4 area
. >? 1 ..and n 1 va !a 1
identified
Converted to Policy 6.9.
shall elude
to land is designated
ensure suffieient at
densitiesto
appropriateaEoemmedate—the
low, low lo
incomedevelopment of extremely very and
dwellings These ..laps include sites
shall
for housing
suitable subsidized rental and
aFF .-dable dwellings,
rental and ovimer occupied
.,.1 to the
programs support constpaction o
dwellings than in lie housing
rather payment of
fees. Sueh
sites shall e—integrated rA'it#in
Lot 1...,,sing .,,,..]
neighber4eOds offna rate shall
be the
arehiteetarally eempatible with
6.15
6.13
Housing
Production
Consider General Plan amendments, as projects
are proposed, to rezone commercial,
manufacturing or public facility zoned areas for
higher -density, infill or mixed -use housing where
compatible with surrounding development.
Group requested rezones so that as many as
possible can be considered consistent with
Government Code §65358, that allows a general
plan to be amended more f eEtuertl., t,.,.* four
times during any calendar year land development
impaet to Law
Updated to remove sites that have
been developed and added new sites
that may be considered for additional
housing development.
New language in blue added per the
recommendation of the PC at the June
10, 2020 meeting.
pattems are suitable and where
Density Residential is Fer
areas miaiF".
example, Areas to be considered for possible
rezoning include, but are not limited to the
following sites:
Packet Page 263
Item 16
GENP-0217-2020 & EID-0218-2020
# New # Goals PoficylPrograReason for Modification
B. 1499 San Luis Drive (rezone vacant and
underutilized School District property)
C. 1642 Johnson Avenue (vacant School
District property)
D. 4325 South Higuera Street (former P.G.&E.
yard)
E. 4355 Vachell Lane (vehicle storage)
F.
G. 2143 Johnson Avenue (adjacent to County
Health Department)
H. 37110 BFoad Street(Plumbers and
Steamfitter-s Union)
I. 11950 Los Osos Valley Road (Pacific Beach
High School)
J. 2500 Block of Boulevard Del Campo
(adjacent to Sinsheimer Park)
K. 12165 & 12193 Los Osos Valley Road
(adjacent to Home Depot)
L. 1150 & 1160 Laurel Lane (Atoll Business &
Technology Center)
M. 600 Tank Farm Road (Temporary
Unimproved Parking Area)
N. 12500 Los Osos Valley Road (053-141-013)
(Agricultural fields and San Luis Creek)
O. Los Osos Valley Road (053-161-020)
(Agricultural fields and San Luis Creek
6.16
6.14 Housing
Continue to provide City resources, including
Production
$40,000 annually for operational support, that to
support the SLO County Housing Trust Fund's
efforts to provide below market financing and
technical assistance to affordable housing
developers as a way to increase to construct or
preserve five affordable housing units per year
predl�tien in the City of San Luis Obispo.
64.7-
645
Ong
Encourage development through inFill
Reducing duplicity. The Land Use
residential
Pry
development densi f4eat:,....,.ithi . C4 , Limits
Element provides direction on the
and
in desi...medareasexpansionever-newareas
that the City encourages
and
annexation of !a -ad.
densification and development in both
infill and expansion areas.
6.18
6.15
Housing
Seek a,.,.,.rt,. sties Meet every other year during
Consistent with new State law.
Production
the planning period with other public and private
agencies to identify excess, surplus, ans
underutilized parcels for residential development.
,,.7 to identify, develop
public utilities assemble,
redevelop land for housing,
and recycle surplus
to
n.7
convert vacant o underatilized public
buildings to housing.
utility-or4n,stitutional
6.19
6.16
Housing
Continue Incentivize 20 affordable housing
Simplified as the requirements are
Production
developments per year during the planning period
outlined in the City's Municipal
consistent with SLOMC Affordable Housing
Code. Reference to City financial
Incentives. w" density bo nises, pafking
assistance was removed because it is
developmentinsentives,
not a "development incentive."
reduetiens—and other-
Packet Page 264
Item 16
GENP-0217-2020 & EID-0218-2020
New #
Policy/Program
Reason for Modification
6.20
6.17
Housing
r^� Financially assist in the development
Production
of 20 housing units per year that are affordable to
extremely low, very -low, low- of and moderate
income households during the planning period
using State, Federal and local funding sources,
with funding priority given to projects that result
in the maximum housing benefits for the lowest
household income levels.
6.21
6.18
Housing
Actively seek and collaborate with non-profit
Production
housing providers to (jointly) apply for three ne
revenue sources each year during the planning
period, including State, Federal and private/non-
profit sources, and financing mechanisms to
financially assist with development of affordable
housing affordable to ,]eyel^«..-.ent F r extremely
low, very low and low or moderate income
households and first- time homebu ers.
6.22
----
Housing Continue to exempt the e
Implemented. Section 17.106.030 has
Production " ^deem, of tip to n ",ellings of tip to 1200
been added to the 2018 Zoning
Regulations update which references
SLOW Chapter 2.48 that includes
may be allowed with "
language that exempts the
staff level arel}iteetufal review, aniess the
rehabilitation or remodeling of up to 4
dwellings are leeated on a sensitive or hister4eally
dwellings of up to 1,200 square feet
sensitive
each from Architectural Review
Housing Assist i the padoetion of affordable housing by
Commission review.
6.23
-----
Implemented. Staff completed an
Production idef ti fying vaeant ^ rde f t:lize City ^ oa
inventory of City -owned property and
„I� " itab e for- hatis ng and dedie ter„blie
found that no City -owned properties
pr-aper-ty, where feasible and " "te for- "tiestieh
pwToses, as development projects are proposed.
are suitable for housing.
6.24
-----
Housing
Community Development staff
Implemented. Staff actively provides
will proactively
Production
:table for
information for
information regarding any land
provide proper -ties
hatising the Land Use
identified in the Housing Element or
as —identified —in and
T1ousing Elements
the Land Use Element that may be
suitable for housing development
possibilities.
6.25
-----
Housing
Evaluate " the Goner l Plan
Completed. The Land Use Element
and side~- amending
Production
to designate the 46 the
was updated in 2015 to include
acres associatedit
per County General Hospital "Special
Program 8.6 which identified the
as a
Considerations" for housing
General Hospital site as a Special
zone, suitable
devel^.., loss than 20
the site
Planning Area.
en4 on areas of of
that
percent average slope,ded open Space
dedication improvements " „f'
part
and public
6.26
6.19
Housing
Continue to up late the Review the Affordable
Updated to be consistent with Zoning
Production
Housing Incentives (Chapter 17.90140, SLOMC)
Regulations update.
and Zoning Regulations every two years during
the planning period and update to ensure density
bonus incentives are consistent with State Law.
Packet Page 265
Item 16
GENP-0217-2020 & EID-0218-2020
ff
ivew
runcyirrvgrain
Housing Evaluate ^^a ^ side. g the residential
iceaNun iur iviuunicauun
A detailed analysis of increasing the
6.27
-----
Production density allowed in the Neighborhood
residential density allowed in various
Co er-e ^, (C N) O ffiee (0) an Downtown
zoning districts was considered and
,.,, r,.reed it D) , zoning distriets. The City will
evaluated as a part of the zoning
evaluate allowing up to 24 , its po aeFe in the r
update and determined that it would
N and n zones, aa up to 72 , nits per- aer-e in the
need to be part of a larger update to
CD e, twice the otiffent density allowed in
the Land Use Element (LUE) and
these areas.
require additional environmental
review.
6.28
-----
Housing
Evaluate how lot
Implemented. In 2018 the Zoning
pattefas{he. size, slime, slope)
Production
in the City^ family off the G4y'^
Regulations were updated to include
multi zones et
to housing
minimum number of dwellings on
ability meet produetieipolie-ies.i
sett:.. ^ mber-
each legal lot in the R-2, R-3 and R-4
wafFanted, eensider- -
dwellings legal + � *' ^ a ' D 3
zones, regardless of lot size as long as
of o eaeh an
R 4 lot
the development can meet all property
zones, egardlessof size, when other-
g
development
development standards, such as
pr-apeFty standards, sueh as ar-ki
height 1i its and seth eks ^ « be met
parking, height limits and setbacks.
6.29
-----
Housing
Continue to ineefAives to
Implemented. The City updated the
ptwstie eneoufage
Production
Zoning Regulations in 2018 and 2020
to be consistent with State law
templmes, flexible development fee
regarding SDUs (now called ADUs —
standar-ds,
to
Accessory Dwelling Units). In
r-eduetiensor--de€effals, or- other fneasufes
addition, the City has also eliminated
allowed by . -
impact fees requirements for ADUs.
6.30
6.20
Housing
Evaluate and update consi eF updating adepting
The Zoning Regulations were updated
Production
the Subdivision and—Zaning-Regulations, within
in 2018 and included a revision to the
three years of the Housing Element Adoption,
PD overlay zoning to allow a
changes to support small lot subdivisions,
minimum of one-half of a contiguous
ownership bungalow court development
acre for a PD (as opposed to a one acre
o !at ^ ^^ for- nr,
L'1;.,,.inate the
minimum).
e aer-eminim-um
ever -lay zening-, and other alternatives to
conventional subdivision design.
6.31
-----
Housing
('onside development impaet fees for-
Completed as a part of the AB 1600
sealing
Production
F mber
development based
and fee schedule update.
residential an s4e, a
bedrooms, and room eeuffts.
6.32
6.21
Housing Continue to submit annual the Housing Element
Production Annual Progress Reports (APR) to the State
Department of Housing and Community
Development and the Governor's Office of
Planning and Research on or before April I It of
each year for the prior calendar year, pursuant to
per Government Code Section 65400.
Housing Update the City's municipal code to expand
6.22
SB 330 restricts cities from imposing
Production objective design standards within one year of the
or enforcing new design standards
adoption of the Housing Element Update.
established on or after January 1,
2020, that are not objective design
standards. This program provides a
plan to expand the existing objective
design standards within the Zoning
Regulations to include additional
standards that are contained within the
Community Design Guidelines.
Packet Page 266
Item 16
GENP-0217-2020 & EID-0218-2020
# New # Policy/Program Reason for Modification
6.23 Housing Update the development review process and Consistent with the State's goal to
Production expand the thresholds of each review level streamline the review process for
(minor, moderate, and major) to eliminate or housing projects, this program
reduce the number of public hearing required for outlines a plan to restructure the
housing projects within one year of adopting the review process and eliminate or
Housing Element. reduce the number of public hearings
needed to approve a housing project.
Modified to provide focus on neighborhood quality, amenities, and access and less on specific tenure. Where projects propose
home ownership, Goal 10: Local Preference, outlines policies and programs to support local home ownership.
0& 7.2
7.3 -----
7.4 7.3
Neighborhood Within established neighborhoods, new
Quality residential development should shall be of
compatible design eharaeter, size, density an
"ality that respects the existing neighborhood
character, to enhance and maintains the quality of
life for existing and future residents.
Neighborhood Higher density housing should maintain high
Quality quality standards for unit design, privacy,
security, an site amenities, and public and private
open space. Such standards should be flexible
enough to allow innovative design solutions. in
special eircumstances, e.g. in developing ixed
use developments or in housing in the Dovmtwivn
Core.
Reworded for consistency with state
law.
Neighborhood Within established neighbor -hoods, housing Covered by polices within the
Quality should not be located on sites designated i the Conservation and Open Space
General Plan for parks or open space. Element and the Land Use Element.
Neighborhood Within—expaien—areal New residential
Quality developments should incorporate be an integral
part of an existing neighbor -hood should
establish a now neighborhood, with pedestrian
and bicycle linkages that provide direct,
convenient and safe access to adjacent
neighborhoods, schools, parks, and shopping
areas.
The City no longer has any areas that
are considered "expansion areas." The
Policy should apply to all new
residential projects.
7.5 7.4 Neighborhood Discourage the creation of walled -off or physical Reworded for clarity.
Quality separations between residential enclaves, or of
separate, unconnected tracts to enhance, is
the formation of safe, walkable, and enjoyable
neighborhoods.
7.6 7.5 Neighborhood Housing should shall be sited to enhance safety
Quality along neighborhood streets and in other public
and semi-public areas.
7.7 7.6 Neighborhood The physical design of neighborhoods and
Quality dwellings should promote walking and bicycling
and preserve open spaces and views.
Packet Page 267
Item 16
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
7.8 7.7 Neighborhood Continue to encourage strategies and programs
Quality that increase long-term residency and
stabilization in neighborhoods. 4
---- 7.8 Neighborhood Preserve the fabric, amenities, yards (i.e. Policy 3.6 was moved to Goal 7 as it
Quality setbacks), and overall character and quality of life better relates to Neighborhood
of established neighborhoods. Quality than Housing Conservation.
---- 7.9 Neighborhood Encourage neighborhood design elements that This is a new policy that has been
Quality improve overall health of residents such as added as recommended by the
providing safe and convenient opportunities to Planning Commission to address
access healthy food and attractive places for public health and housing.
recreational exercise.
7.10 Neighborhood Continue to utilize a diverse range of outreach Updated to be consistent with current
7.9
Quality methoods implement varied strategies, including requirements and policies.
such as early netinsation thretigh email
notifications eleetronie media, the City's website
and social media accounts improvements, and
neighborhood outreach meetings, etc., to ensure
residents are aware of and able to participate in
planning decisions affecting their neighborhoods
early in the planning process.
7.10
7.11 Neighborhood
Continue to work directly with neighborhood
Quality
groups and individuals to address concerns
pertaining to Identify- speeif neighborhood
needs, problems, trends and opportunities for
physical improvements.
7.11
7.12
Neighborhood
Continue to fund neighborhood improvements,
Quality
including parks, sidewalks, traffic calming
devices, crosswalks, parkways, street trees and
street lighting to improve aesthetics, safety and
accessibility.
7.12
-----
Neighborhood
Continue to develop implement
Implemented. The City has a process
and
Quality
including
where Neighborhood Parking
neighbor -hood par -king —strategies,
districts to the lack
Districts can be created. The City has
par -king address of on an
off street par -king in residentareas.ial
also been working on the creation of
demand -based parking strategies.
7.13
7.13
Neighborhood
Continue the City's Neighborhood Services and
Quality
proactive enforcement Code Enforcement
programs to support neighborhood wellness.
---- 744 Neighborhood
Enco developments 10
This is a new program recommended
ffage new with or
Quality
be by the
by the Planning Commission to
residential units reviewed and scored
Healthy- Work Group to
support Policy 7.9. The City Council
unities prior
^ planning to the Qty,
directed staff to review this program
submitting application
and provide more clarity. The
requirement to have a housing project
be evaluated by an outside group
poses several concerns: 1) reduced
predictability in the review process
for developers or the public; 2) review
timing and scoring is outside the
control of the City; 3 once a score is
Packet Page 268
GENP-0217-2020 & EID-0218-2020
Item 16
New #
7.14
Goals
Neighborhood
Quality
Policy/Program
Evaluate and update the Community Design
Guidelines to provide site design standards for
€neeuFage developments with 114 or more
residential units to include outdoor amenities
such as the following: outdoor visiting and
gathering spaces, places to exercise or recreate,
and spaces reserved for edible landscape or
community gardens.
8.1 8.1 Special
Encourage housing development that meets a
Housing
variety of special needs, including large families,
Needs
single parents, disabled persons, the elderly,
students, veterans, the homeless, or those seeking
congregate care, group housing, single -room
occupancy or co -housing accommodations,
utilizing universal design.
8.2 8.2 Special
Preserve manufactured housing or mobile home
Housing
parks and support changes in these forms of
Needs
tenure only if such changes provide residents
with greater long-term security or comparable
housing in terms of quality, cost, and livability.
8.3 ----- Special
Ef ffli,age w „ f Gti rva hOMOS :r SPOOiA6 Plat
Housing
Needs
Reason for Modification
given to the project, the City does not
have development standards or code
requirement to interpret the score; and
4) this requirement could result in the
delaying the approval of housing
projects (this could place the City in a
difficult position of conflict with state
law). Staff is recommending that this
program be removed.
This is a new program recommended
by the Planning Commission to
support Policy 7.9. The City Council
directed staff to review this program
and provide more clarity. Staff is
recommending that the program be
connected to an update of the
Community Design Guidelines. 10
units was changed to 11 units to be
consistent with what is defined as
"Development Review — Major"
within the Zoning Regulations.
Manufactured homes are allowed in
all residential zones; applicants have
not shown any interest in creating new
manufactured home parks. New,
higher density development is more
efficient and cost effective. The most
recent affordable housing projects
have all been multi -family
apartments.
Packet Page 269
GENP-0217-2020 & EID-0218-2020
Item 16
# New #
8.4 8.3
8.5 8.4
8.6 8.5
Goals I Policy/Program
placement of tnanufaetuFed homes within the
G) Loeatii3g manufaetuFed—home par-ksn ear-
publie—transit facilities or=provide public
tr-anspoftation services to the manufactuFed home
arks to minimize the need f r residents to o
automobiles-.
s
Special Encourage Cal Poly University to continue to
Housing develop on -campus student housing to meet
Needs existing and future needs and to lessen pressure
on City housing supply and transportation
systems.
Special Strengthen the role of on -campus housing by
Housing encouraging Cal Poly University to require
Needs freshmen and sophomore students to live on
campus.
Special Locate fraternities and sororities on the Cal Poly
Housing University campus. Until that is possible, they
Needs should be located in Medium -High and High -
Density residential zones near the campus.
8.7 8.6 Special Encourage Cal Poly University to develop and
Housing maintain faculty and staff housing, consistent
Needs with the General Plan.
8.8 8.7 Special Disperse special needs living facilities
Housing throughout the City where public transit and
Needs commercial services are available, rather than
concentrating them in one district.
Reason for Modifi
8.9 8.8 Special Support Continue to support regional efforts to Revised to be consistent with current
Housing address homelessness implement the document activities and SB 101.
Needs "The PathHome: San Luis Obispo s 10
Year Plan to End Chronic Homelessness".
8.10 8.9 Special Encourage a variety of housing types that
Housing accommodate persons with disabilities, and
Needs promote aging in place, and include amenities
such as visiting space, first floor accessibility,
etc.inelading a goal efvisitabi-lnyin new
, units, with .. F:rst flea
residentialemphasis a
aeoes
gib l:ty to the ffla*iffF&ffl xtoff♦ feasible.
8.11 ----- Special > ff,.,.,,fage ,.>,anges t City F-eg.,l.atieffs that Would
Housing s"pai4 the speeial housing needs of disabled
Needs o ,hiding persens :t,. developmefft..l
8.12 8.10 Special Assist the homeless and those at risk of becoming
Housing homeless by supporting shelters, temporary
Needs housing, and transitional housing. and b
facilitating general housing assistance.
Based on community feedback, this
policy was revised to highlight that
housing for persons with disabilities
or aging in place should include
amenities that support those living
within the units.
Completed. Regulations have been
updated to address special housing
needs. In addition, the building code
is regularly updated to meet State and
Federal requirements.
The role of the City is not to place
individuals in housing. There are
several local non -profits involved
with helping people find housing. The
City, if contacted, connects people to
these local organizations.
Packet Page 270
GENP-0217-2020 & EID-0218-2020
Item 16
�I New #
Policy/Program
8.13
8.11
Special
Continue to provide resources that support local
Housing
and regional solutions to meeting the needs of the
Needs
homeless and continue to support, jointly with
other agencies, shelters and programs, such as
Housing First and Rapid Rehousing, for the
homeless and for displaced individual and
families. women ra ,,,hire .
8.14
8.12
Special
Continue to enforce the mobile home rent
Housing
stabilization program to minimize increases in the
Needs
cost of mobile home park space rents.
8.15 8.13 Special Continue to look f r Support opportunities in
Housing speeifie plan areas within the City suitable for
Needs tenant -owned mobile -home parks, cooperative or
limited equity housing, manufactured housing,
self-help housing, or other types of housing that
meets special needs.
8.16 8.14 Special Advocate developing more housing and
Housing refurbishing campus housing at Cal Poly
Needs University.
8.17 8.15 Special Work with Cal Poly University Administration to
Housing secure designation of on -campus
Needs fraternity/sorority living groups.
Reason for Modification
8.18 8.16 Special jointly develop and implement ^ student he - Revised for clarity.
Housing plan an Continue to support "good neighbor
Needs programs" with Cal Poly State University, Cuesta
College, the City and local Qty residents. The
program would seek to improve communication
and cooperation between all groups the City an
the schools, set oncampus studenthousing
objectives and establish clear, effeetive standwnr�_L
for- about student housing in residential
neighborhoods.
8.19 8.17 Special Provide public educational information at vafiees I Revised for clarity.
Housing City Ofnees, on the City website, and other-
Needs eleetfenie—Media platf4fas the Cep
Development Departmentcounter on
universal design concepts (i.e. aging in place) for
new and existing residential dwellings.
8.20 8.18 Special T-r-ansitional Housing and Supportive 14ousing.
Housing Continue to allow the establishment of
Needs tfansitional and s ei4i e ,.,.,,sing ; all
distfiets where residential uses afe allowed-.
Review and amend the Zoning Regulations
within one year of Housing Element adoption to
ensure compliance with: 1) the Supportive
Housing Streamlining Act (AB 2162) to allow
supportive housing a use -by -right in zones where
multi -family and mixed uses are permitted,
including nonresidential zones permitting
multifamilv uses. if the proposed development
Revised to be consistent with State
law.
Packet Page 271
GENP-0217-2020 & EID-0218-2020
Item 16
# New #
Goals ]L._ Policy/Program
meets specified criteria; and 2) AB 101, to allow
and supportive housing (Low Barrier Navigation
Centers) by right in all residential zones, areas
zoned for mixed -uses, and nonresidential zones
permitting multifamily uses ...ithe__t a ndition l
use permit —to be alignment,;vim Goverment
Reason for Modification
8.21
8.19
Special
Continue to look for partnership opportunities
Revised to broaden the opportunities
Housing
with non-profit housing developers and service
for the City to partner with local non -
Needs
providers to that eanbe acquire four vacant,
profit housing developers.
blighted, or underutilized properties (land, retail
or commercial space, motels, apartments,
housing units, mobile home parks) during the
planning period for and conversion into
affordable permanent and supportive housing and
pefinanent suppeftive >,,,u4 ,. for homeless
ersons and families.
8.22
-----
Special
The City's Municipal Code contains a
Housing
fitnire heme tfailer to
Mobile Home Park Rent Stabilization
and mobile and pafk sites
Needs
that
Ordinance that applies citywide to all
pfavide eenstfuetive netiee additional
mobile home parks. The Ordinance
satisfies this program by protecting
appl3�
owners and renters of mobile homes
from unreasonable rent increases.
Staff has evaluated that an overlay
zone would not provide any additional
benefit.
8.23
8.20
Special
Actively Continue to seek and collaborate with
Consolidated the wording of this
Housing
non-profit housing providers to (jointly) apply for
program. No change in the content.
Needs
two revenue sources each year during the
planning period for State, Federal, and local
funding sources to encourage and financially
assist with the development of housing for
persons with developmental disabilities. The City
for housing
will seek grantepportunities
seastpaEtion and F-el atiefspeeifisaily
targeted for- developmental
er-seas with
8.24
-----
Special Continue to seer-dinatewith the County, s
This program is covered in Program
Housing vier and non -profit .,bens
8.21.
Needs for- delivery of existing improved and expanded
seFviees, iflcludifig—ease management,
alcohol, detexifieatienand mental health
s
Special Continue to coordinate monthly engage -with the
8.25
8.21
Updated language to be consistent
Housing County Department of Social Services, Homeless
with current organizations and
Needs Services Oversight Council (HSOC), social
agencies.
services providers, and non-profit organizations
n.1 Friends of U,.ado Day Center (FUTIC to
identify, evaluate, and implement strategies to
reduce the impacts of homelessness on the City.
Packet Page 272
GENP-0217-2020 & EID-0218-2020
Item 16
New # I Policy/Program
8.22 Special Work with other jurisdictions to advocate for
Housing State legislation that would: 1) provide funding to
Needs help Cal Poly University provide adequate on -
campus student housing, and 2) allow greater
flexibility for State universities and community
colleges to enter into public -private partnerships
to construct student housing.
8.23
9.1 9.1
Special Update Zoning Regulations, within two years of
Housing Housing Element adoption, to be consistent with
Needs the Employee Housing Act; including: 1) an
update of Table 2-1 to allow single -unit dwellings
without a Conditional Use Permit within the
Open Space and Conservation (C/OS) zone and
employee housing consisting of no more than 36
beds in a group quarters, or 12 units or separate
rooms or spaces designed for use by a single-
family or household within the C/OS and AG
zones, and 2) remove Chapter 17.148 - High -
Sustainable Residential developments should promote
Housing -,Site sustainability consistent with the Climate Action
and Plan (CAP) and California Building Energy
Ne:� Efficiency Standards - Title 24 in their design,
Desigi} placement, and functionality else. Sustainability
renewable,strategies, including the following:
A) Maximize use of content,cled
and ecycled materials, and minimize use of
building materials that require high levels of
energy to pr-odRce or- that cause significant,
adver-seenvir-onmental . etom
e homes, ifiehidifig Passive solar design, Sol
het water, solar- power and natirr-al e t� ilatiea
and eealifig.
G) Mini iZe t13ewnmai-=island O eets thfaugi
F-ed'detion of heatabsefbing paveffiefft and
iner-eased tree shading.
Avoid building materials that may eontribute to
health problems through the release of gasses o
glass filers into ;..door
D) Design dwellings for quiet, indoors and out
ferboth the mental awl physieal healthf
residents.
= Design'ellings eesfiefflieal to live in
because of Fedueed „ ility bills, low eest
maintenanee andneperatiena d improved
eeetipa«t l.e..ltl.
6) Use construction materials and methods that
maximize the r-eeyelability of a building's parts.
Reason for Modification
Relocated Program 10.6.
Revised to be consistent with state
law regarding the Employee Housing
Act.
Updated to be consistent with current
City and State policies. Strategies
were removed because they are
outlined in the CAP and T
Packet Page 273
GENP-0217-2020 & EID-0218-2020
Item 16
# New # Goals I Policy/Program
Educate publie,staf€, and ems to the
advantages and ., ehes to sustainable ,les;,.n
and therebydeve-lop—eonsumer- demand
sustainable housing.
1) City will ntin e to .-ef to a sustainable
.leyel.,p.-.,e„t rating system, s., ch as the TEED
GfeenPe�rograms when evaluating w
development proposal
9.2 9.2 Sustainable Residential units site, subdivision layouts, and
Housing -,Site neighborhood designs amenities should be
and coordinated to support make residerrtal
Neighborhood sustainable design work. Some ways to do this
Design 1H
A) Design subdivisionsto maxifnize solar- aeeess
f e eh dwelling ansite
Rl Des;...-, sites s residents have usable outdoor
space with access to both stin and shade
C) St,-eet and aeeess ways she„l,l fninimize
pa-veme,mot devoted to vehicular-
D) Use neighbor -hood retention basins to .. ;f.
street ,-. aoffprior- to its entering er-eeks. Retention
basins shoWd be designed to he. ; .,lly att,-.,etiye
as well as f,,netional Renee,l off retention basins
should be a -voided.
E)Encotmage cluster development with
dwellings grouped aroundnif,'ca tl y sized,
shaFe.l open space in return for City approval osmaller individual lots.
using oentinuetis pla-atings at least six feet wide
and where feasible, median planters to enhanoe,
define, and to buffer residential neighbor -hoods o
all densities fro..-, the effects of vehicle tr ffie
9.3 ----- Sustainable Preserve the physical neighborhood ,,,l,,t;es ;
Housing, Site the Tlo Amt.,..,,, Planning Area that contribute to
and stistainability. Some ways to do this incl ,.le;
Neigh n `M�rtain the overall scale, density- and
Desig arehiteetural eh.,.-aete.- of older a ..Me, -heels
suffoundifig the Tle.A�Owi CoFe
B) E ee,,rage the m ntena- ee an ehabilit.,tief.
of h;ster e..11y ,lasi..n.,te,l he„sing steek
9.4 9.3 Sustainable To Promote energy e6fisen,ation and a elea of
Housing —,Site environment-, Continue to encourage the
and development of dwellings with energy -efficient
Neighbor -hood designs, utilizing passive and active solar
Design features, and the use of energy -saving techniques
that exceed minimums prescribed by State law.
9.5 9.4 Sustainable "Continue to promote water conservation
Housing —,Site through housing and site design to help moderate
and the cost of housing.
Neighborhood
Design
Reason for Modification
Examples were ren
innovative sustainable c
extensive.
The Historic Preservation Ordinance
preserves and protects historic
structures and districts. Additionally,
the Conservation and Open Space
Element includes Policies 3.3.4, 3.3.5,
that direct preservation of historic
buildings, districts, and
neighborhoods. Program 3.6.3 directs
construction within historic districts.
Packet Page 274
Item 16
GENP-0217-2020 & EID-0218-2020
New # � Policy/Program � Reason for Modification
9.6 9.5 Sustainable Support programs that provide financing for
Housing—,S+te sustainable home upgrade projects such as
and installation of solar panels, heating and cooling
Neighborhood systems, water conservation and windows to
Design improve the energy efficiency of the City's
existing housing stock.
9.7 9.6 Sustainable Continue to educate planning and building staff
Housing—,S+te and citizen review bodies on energy conservation
and issues, including the City's energy conservation
�To:g� policies and Climate Action Plan. Staff shall
Desig-e work with applicants to achieve the City's energy
conservation goals.
9.8 9.7 Sustainable Continue to provide assurance of long-term solar
Housing -,Site access for new or remodeled housing and for
and adjacent properties, consistent with historic
Neighbor -hood preservation guidelines
9.9 ----- Sustainable Centrne to implement the Water- Quality Contfol Implemented. All development
Housing -,Site ;ems "Post Construction Stofmwater projects are required to include Post -
and Construction Stormwater
Neighbor -hood Pr-ojeets in the Gentfal Coast Region" Management Requirements as a part
Desk of a project application, which allows
staff to verify that the project is
consistent with the Regional Water
Board's Requirements.
9.10
9.8
Sustainable
Implement Climate Action Plan programs that
Housing -,Site
increase the production of "green" housing units
and
and projects and require use of sustainable and/or
New
renewable materials, water and energy
Design
technologies (such as, but not
limited to solar, wind, or thermal).
9.11
9.9
Sustainable
Continue to promote building materials reuse and
Housing —,Site
recycling in site development and residential
and
construction, including flexible standards for use
Neighbor —hood
of salvaged, recycled, and "green" building
Design
materials. Continue the City's
construction and demolition debris recycling
program as described in Chapter 8.05 of the
Municipal Code.
9.12 ----- Sustainable Censider ineentivv= ing dwelling units to - Implemented. The City has
Housing -,Site mifiiiiitim size of 50 squafe feet, eensistent with implemented a reduction in the impact
and the California Building Code by reduced impact fees for smaller units with AB 1600
Neighbor —hood fees and property development standards. and the fee schedule update.
Design Additionally, ADU requirements
have been revised to be consistent
with state law and impact fees
removed in order to incentivize the
development of this type of smaller
unit.
Packet Page 275
Item 16
GENP-0217-2020 & EID-0218-2020
New # � Policy/Program �O Reason for Modification
9.13 9.10 Sustainable Continue to support Consider- paftieipati ^
Housing—,%ite €naneing programs for sustainable home
and improvements such as solar panels, heating and
Neighborhood cooling systems, water conservation and energy
Design efficient windows.
i
tW
- M.
WIN
4" 4" Local
pfe f
ti
10.2 ----- Local
Preference
40.2 Local
p-ef
See discussion under Policy 10.2
This Policy did not address local
preference. Supporting housing for
employees at Cal Poly, Cuesta, CMC,
etc. is covered in Policy 10.2.
Council directed staff to work with
the City Attorney's office to reword
Policy 10.2. In reviewing the City's
Housing Element, HCD shared
concerns with Policy 10.2 and
Program 10.4. They stated that, "This
policy [10.2] potentially erects
barriers and prevents access to
housing opportunities, particularly to
individuals from outside of the City,
and should be removed." In re -
reviewing Goal 10 and the associated
policies and programs staff is
recommending these be removed
from the Housing Element in order
prevent limiting housing to any
individual.
Packet Page 276
Item 16
GENP-0217-2020 & EID-0218-2020
# New # Goals 1AW Policy/Program Reason for Modification
44" Leeal Eneo Page residential devt Au—e
^^t See discussion under Policy 10.2
pFe f their projects to those Fesiding o i thez employed
City first be f r^ outside markets.
4" l oeal Work with Cal Poly to address the link between This program is covered in Program
�r�ee enmllment and the expansion of eampus housing 8.16pr-ogr-afns a4 Cal Poly University to reduee
4" howl W ry with other , isdietio s to ,,dvoe.,t^ f r Relocated under Goal 8 as Program
prefer-eflee State legislation that would: 1) provide f,,.., ing to 8.22.
help Cal Poly University p ide ..,lo,.,,..te on
eanptis student housing, and 2) allow greater -
flexibility
11.1 Suitability Where property i equally suited f r ^ ^ al Policies and programs within Goal 11
or residential uses, give reference to reside'..t;..l are covered by the other Goals of the
use. Changes in !amd use designation ffe-fn Housing Element, the Housing Major
residential to non-residential shouldbe-City Goal, the Conservation and Open
Space Element, the Land Use
Element, and the Safety Element
11.2 Suitability
Packet Page 277
Item 16
RESOLUTION NO. 1017-20
A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION
RECOMMENDING THE CITY COUNCIL ADOPT A NEGATIVE
DECLARATION OF ENVIRONMENTAL IMPACT AND AMENDMENTS
TO THE HOUSING ELEMENT OF THE GENERAL PLAN AS
REPRESENTED IN THE PLANNING COMMISSION AGENDA REPORT
AND ATTACHMENTS DATED
JULY 229 2020 (GENP-0217-2020 & EID-0218-2020)
WHEREAS, State law requires cities and counties to adopt a general plan. The General
Plan includes nine required elements, one of which is the Housing Element. The Housing Element
must be updated every eight (8) years or as otherwise provided by State law; and
WHEREAS, the City's General Plan Housing Element was last updated on January 20,
2015 in compliance with State law; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
hearing via teleconference, per the Governor's Executive Order N-29-20 issued on March 17,
2020, relating to the convening of public meetings in response to the COVID-19 pandemic, on
June 10, 2020 for the purpose of considering modifications to the Housing Element's goals,
policies and programs; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
hearing via teleconference, per the Governor's Executive Order N-29-20 issued on March 17,
2020, relating to the convening of public meetings in response to the COVID-19 pandemic, on
July 22, 2020, for the purpose of considering the Negative Declaration of Environmental Impact
and amendments to the Housing Element of the General Plan to address the changing needs,
resources and conditions in the community, as required by State law ; and
WHEREAS, said public hearing was for the purpose of formulating and forwarding
recommendations to the City Council of the City of San Luis Obispo regarding the project; and
WHEREAS, notices of said public hearing were made at the time and in the manner
required by law; and
WHEREAS, the Planning Commission has duly considered all evidence, including the
testimony of the applicant, interested parties, and the evaluation and recommendations by staff,
presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
San Luis Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the Commission makes the following
findings:
1. The proposed amendments included in the draft Housing Element are consistent with other
land use goals and policies of the General Plan.
Packet Page 278
Item 16
Planning Commission Resolution No. 1017-20
6`h Cycle Housing Element—GENP-0217-2020 & E1D-0218-2020
Page 2
2. The proposed amendments are appropriate and necessary to ensure that the City's Housing
Element meets State law and the changing needs, resources, and conditions in the
community.
3. Achieving Housing Element State certification will promote affordable housing
opportunities and help achieve adopted housing goals by matting the City eligible for
various housing grants and financial incentives, and will foster cooperation among local
and state agencies in addressing an urgent need for affordable housing in the City.
SECTION 2. Environmental Review_ The Planning Commission does hereby
recommend the City Council adopt a Negative Declaration of Environmental Impact in accordance
with CEQA Guidelines section 15063(b)(2): "The lead agency shall prepare a negative declaration
if there is no substantial evidence that the project or any of its aspects may cause a significant
effect on the environment."
SECTION 3. Action. The Planning Commission does hereby recommend the City
Council adopt the proposed amendments to the Housing Element of the General Plan dated July
22, 2020, which is incorporated herein by reference.
On motion by Commissioner Hopkins, seconded by Vice -Chair Jorgenson and on the following
roll call vote:
AYES: Commissioners Hopkins, Vice -Chair Jorgensen, Kahn, Shoresman, Wulkan and
Chair Dandekar
NOES: None
REFRAIN: None
ABSENT: Commissioner Quincey
The foregoing resolution was passed and adopted this day of adopted this 22"d day of July, 2020.
Tyler Corey for ian Leveille, Secretary
Planning Con6jjigiion
Packet Page 279
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.aov
September 4, 2020
Michael Codron, Director
Community Development
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401-3218
Dear Michael Codron:
GAVIN NEMSOM.Vvernor
RE: City of San Luis Obispo's 6th Cycle (2020-2028) Draft Housing Element
p. GOMmuxtry
eq ale
C9LIFOB��P•
Thank you for submitting the City of San Luis Obispo's (City) draft housing element
received for review on July 7, 2020, along with revisions received on August 21, 2020.
Pursuant to Government Code section 65585, subdivision (b), the California
Department of Housing and Community Development (HCD) is reporting the results of
its review. Our review was facilitated by a telephone conversation on August 6, 2020
with Rachel Cohen, Associate Planner, and Tyler Corey, Principal Planner. In addition,
HCD considered comments from California Rural Legal Assistance pursuant to
Government Code section 65585, subdivision (c).
The draft element addresses many statutory requirements; however, revisions will be
necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code).
The enclosed Appendix describes the revisions needed to comply with State Housing
Element Law.
To remain on an eight -year planning cycle, the City must adopt its housing element
within 120 calendar days from the statutory due date of December 31, 2020 for San
Luis Obispo Council of Governments (SLOCOG) localities. If adopted after this date,
Government Code section 65588, subdivision (e)(4) requires the housing element be
revised every four years until adopting at least two consecutive revisions by the
statutory deadline. For more information on housing element adoption requirements,
please visit HCD's website at: http://www.hcd.ca.gov/community-development/housing-
element/housing-element-memos/docs/sb375 fina1100413.Pdf
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 should continue to engage the community, including organizations that
represent lower -income and special needs households, by making information regularly
available and considering and incorporating comments where appropriate.
Packet Page 280
Michael Codron, Director Item 16
Page 2
Several federal, state, and regional funding programs consider housing element
compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill
(SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD's
Affordable Housing and Sustainable Communities program; SB 2 Planning Grants as
well as ongoing SB 2 funding (Permanent Local Housing Allocation) consider housing
element compliance and/or annual reporting requirements pursuant to Government
Code section 65400. With a compliant housing element, the City meets housing
element requirements for these and other funding sources.
HCD appreciates the cooperation Rachel Cohen and Tyler Corey provided during the
course of our review. We are committed to assisting the City in addressing all statutory
requirements of State Housing Element Law. If you have any questions or need
additional technical assistance, please contact Shawn Danino, of our staff, at
shawn.danino(@hcd.ca.gov.
Sincerely,
Megan Kirkeby
Deputy Director
Enclosure
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APPENDIX
CITY OF SAN LUIS OBISPO
The following changes would bring the City's housing element into compliance with Article 10.6 of
the Government Code. Accompanying each recommended change, we cite the supporting
section of the Government Code.
Housing element technical assistance information is available on HCD's website at
http://www.hcd.ca.gov/community-development/housing-element/housing-element-memos.shtml.
Among other resources, the housing element section contains HCD's latest technical assistance
tool, Building Blocks for Effective Housing Elements (Building Blocks), available at
http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the
Government Code addressing State Housing Element Law and other resources.
A. Housing Needs, Resources, and Constraints
1. Include an analysis and documentation of household characteristics, including level of
payment compared to ability to pay, housing characteristics, including overcrowding,
and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).)
The element relies upon American Community Survey data to evaluate the condition of
the housing stock (page A-15 thru A-16). However, the element must include analysis of
the condition of the existing housing stock based upon a local estimate. For example,
the analysis could include estimates from a recent windshield survey or sampling,
estimates from the code enforcement agency, or information from knowledgeable
builders/developers, including non-profit housing developers or organizations. Further,
the analysis could collect information on unit type (single family, multifamily,
mobilehomes) to better guide policies and programs. For additional information, see the
Building Blocks at http://www.hcd.ca.gov/community-development/buildinq_
blocks/housing-needs/housing-stock-characteristics.shtml.
2. An inventory of land suitable and available for residential development, including
vacant sites and sites having realistic and demonstrated potential for redevelopment
during the planning period to meet the locality's housing need for a designated income
level, and an analysis of the relationship of zoning and public facilities and services to
these sites. (Gov. Code, § 65583, subd. (a)(3).)
The City has a regional housing need allocation (RHNA) of 3,354 housing units, of
which 1,345 are for lower -income households. To address this need, the element relies
on permitted and entitled projects, accessory dwelling units (ADUs), vacant and
nonvacant sites, sites with existing historic structures, and specific plan areas. To
demonstrate the adequacy of these sites and strategies to accommodate the City's
RHNA, the element must include complete analyses, as follows:
Progress in Meeting the RHNA: The element indicates (page D-9) that 47 units
affordable to very low-income households, 49 units affordable to low-income
household, and 27 units affordable to moderate -income households have been built,
permitted or entitled. The element must also demonstrate affordability based on actual
or anticipated sales price or rent level of the units or other mechanisms ensuring
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assumed affordability levels (e.g., financing, inclusionary requirements). Given the
City's growth management and phasing requirements, the element must also
demonstrate their availability in the planning period. For additional information, see the
Building Blocks at http://www.hcd.ca.gov/community-development/building-
blocks/housing-needs/projected-housing-needs.shtml.
Sites Inventory: The element appears to describe sites outside city limits. If utilizing
sites outside city limits toward the regional housing need allocation, the element must:
(1) identify and analyze the sites pursuant to statutory requirements,
(2) demonstrate suitability and availability for development in the planning period
including a schedule of anticipated milestones for annexation and accounting for
any phasing requirements, and
(3) add policies and programs with a schedule of actions to make the sites available for
development in the planning period, including alternative measures with specified
completion dates if the sites are not made available with zoning early in the
planning period.
Previously Identified Nonvacant and Vacant Sites: If nonvacant sites were identified in
a prior adopted housing element or vacant sites were identified in two or more
consecutive planning periods, the sites are inadequate to accommodate housing for
lower -income households unless:
• The site's current zoning is appropriate for the development of housing
affordable to lower -income households by either including analysis or meeting
the appropriate density. See Government Code section 65583.2, subdivision
(c)(3), and
• The site is subject to a housing element program that requires rezoning within
three years of the beginning of the planning period to allow residential use by
right for housing developments in which at least 20 percent of the units are
affordable to lower -income households (Gov. Code, § 65583.2, subd. (c).).
The element should identify which sites, if any, have been identified in multiple
planning period and include the applicable program.
Suitability of Non -Vacant Sites: The element must describe the methodology used to
determine the additional development potential within the planning period. The
methodology must consider factors including the extent to which existing uses may
impede additional residential development, development trends, market conditions,
and regulatory or other incentives or standards to encourage additional residential
development on these sites. (Gov. Code, § 65583.2, subd. (g).) For sites with
residential uses, the inventory could also describe structural conditions or other
circumstances and trends demonstrating the redevelopment potential to more intense
residential uses. For nonresidential sites, the inventory could also describe whether the
use is operating, marginal or discontinued, and the condition of the structure or could
describe any expressed interest in redevelopment. The site inventory identifies multiple
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sites that include "contributing historic structures" or "historic structures". The element
should analyze the effect of historic structures on the ability to redevelop sites. For
example, the element should describe additional restrictions, costs, and processes
affiliated with redevelopment on these sites. Also, the element utilizes various factors
to indicate potential for redevelopment but must also support these assumptions with
analysis and development trends. For example, the element appears to assume
existing lot coverages to indicate potential for redevelopment but should also support
these assumptions with analysis and development trends. For additional information
and sample analysis, see the Building Blocks at: http://www.hcd.ca.gov/community-
development/building-blocks/site-inventory-analysis/analysis-of-sites-and-
zoning.shtml#analysis
Specific Plans: The housing element relies upon sites within specific plan areas to
accommodate the City's regional housing need for lower -income households. The
element should analyze the specific plan areas for their suitability and availability for
development in the planning period. The analysis must at least describe each overall
plan, impacts of phasing on availability for development in the planning, the timing for
overall buildout, and any affordability requirements.
Emergency Shelters: The element describes the Public Facilities zone as accommodating
emergency shelters without discretionary action. However, the element must analyze the
zone for its capacity (acreage, average lot size, vacant, non -vacant) and suitability
(proximity to transit and services and other uses allowed in the zone) to accommodate
emergency shelters. For more information, see the Building Blocks at
http://www.hcd.ca.gov/community-development/building-blocks/site-inventory-
analysis/zoning-for-variety-housing-types.shtml and HCD's SB 2 memo at
http://www.hcd.ca.gov/community-development/housing-element/housing-element-
memos/docs/sb2 memo050708.pdf.
3. An analysis of potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the types of
housing identified in paragraph (1) of subdivision (c), and for persons with disabilities
as identified in the analysis pursuant to paragraph (7), including land use controls,
building codes and their enforcement, site improvements, fees and other exactions
required of developers, and local processing and permit procedures. The analysis shall
also demonstrate local efforts to remove governmental constraints that hinder the
locality from meeting its share of the regional housing need in accordance with
Government Code section 65584 and from meeting the need for housing for persons
with disabilities, supportive housing, transitional housing, and emergency shelters
identified pursuant to paragraph (7). Transitional housing and supportive housing shall
be considered a residential use of property and shall be subject only to those
restrictions that apply to other residential dwellings of the same type in the same zone.
(Gov. Code, § 65583, subd. (a)(5).)
Fees and Exaction: The element must describe all required fees for single family and
multifamily housing development, including impact fees, and analyze their impact as
potential constraints on housing supply and affordability. For example, the analysis
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could identify the total amount of fees and their proportion to the development costs for
both single family and multifamily housing. For additional information and a sample
analysis and tables, see the Building Blocks at http://www.hcd.ca.gov/community-
development/building-blocks/constraints/fees-and-exactions.shtml.
Architectural Review: The element must describe and analyze the architectural review
process, including approval procedures and decision -making criteria, for their impact
as potential constraints on housing supply and affordability. The element describes
three levels of review. The element should analyze each level separately for its impacts
on housing development. For example, the analysis could describe required findings
and discuss whether objective standards and guidelines improve development
certainty and mitigate cost impacts. The element must demonstrate this process is not
a constraint or it must include a program to address this permitting requirement, as
appropriate. Also, under specified conditions, any subjective design standards are
suspended pursuant to Government Code section 66300 (see below). The element
should evaluate consistency with these requirements and include actions as
appropriate. For additional information and sample analysis, see the Building Blocks at
http://www.hcd.ca.gov/community-development/building-blocks/constraints/processing-
permitting-procedures.shtml.
Growth Caps: The element notes "the City's housing supply shall grow no faster than
one percent per year." The Housing Crisis Act of 2019 (SB 330, 2019) was signed by
Governor Newsom on October 9, 2019 and became effective on January 1, 2020. The
Housing Crisis Act (Gov. Code, § 66300) generally prohibits a locality from enacting a
development policy, standard or condition that reduces intensity, imposes moratoriums,
enforces subjective design standards or implements any provision that limits approvals
or caps population. These provisions remain in effect until January 1, 2025.
Specifically, Government Code section 66300, subdivision (b)(1)(D), with limited
exception not applicable here, does not allow affected jurisdictions to adopt new or
enforce existing limits on the number of land -use approvals or permits. The City should
evaluate consistency with these requirements and if necessary, immediately void or
suspend the annual growth cap.
4. Analyze any special housing needs such as elderly; persons with disabilities, including
a developmental disability; large families; farmworkers; families with female heads of
households; and families and persons in need of emergency shelter. (Gov. Code, §
65583, subd. (a)(7).)
The element notes only 1.1 percent of the labor force in agriculture and other industries
and therefore the housing needs of farmworkers are not critical. However, the element
also notes close to 10,000 farmworkers in the County and appears to constrain
housing for farmworkers through local preference policies (Policy 10.2). As a result, the
element should acknowledge this significant need and include specific policies and
programs.
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B. Housing Programs
Identify actions that will be taken to make sites available during the planning period with
appropriate zoning and development standards and with services and facilities to
accommodate that portion of the city's or county's share of the regional housing need for
each income level that could not be accommodated on sites identified in the inventory
completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with
the requirements of Government Code section 65584.09. Sites shall be identified as
needed to facilitate and encourage the development of a variety of types of housing for all
income levels, including multifamily rental housing, factory -built housing, mobilehomes,
housing for agricultural employees, supportive housing, single -room occupancy units,
emergency shelters, and transitional housing.
(Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding A-2, the element does not include a complete site analysis,
therefore, the adequacy of sites and zoning were not established. Based on the results
of a complete sites inventory and analysis, the City may need to add or revise
programs to address a shortfall of sites or zoning available to encourage a variety of
housing types. In addition, the element should be revised as follows:
Replacement Housing Requirements: The housing element must include a program to
provide replacement housing. Non -vacant sites identified in the sites inventory with
existing, vacated, or demolished residential uses and occupied by, or subject to an
affordability requirement for, lower -income households within the last five years,
require a replacement housing program for units affordable to lower -income
households (Gov. Code, § 65583.2, subd. (g)(3)). Absent a replacement housing
program, these sites are not adequate sites to accommodate lower -income
households. The replacement housing program must adhere to the same requirements
as set forth in Government Code section 65915, subdivision (c)(3).
Sites Identified in Multiple Planning Periods: The element must include a program for
vacant sites identified in two of more consecutive planning periods' housing elements
or non -vacant sites identified in a prior housing element, that are currently identified to
accommodate housing for lower -income households. The program must be
implemented within the first three years of the planning period and commit to zone for
the following:
• sites must meet the density requirements for housing for lower income
households, and
allow by -right approval for housing developments that include 20 percent or
more of its units affordable to lower income households (Gov. Code, § 65583.2,
subd. (c).).
Program 4.5: The City's strategy to accommodate lower -income RHNA relies heavily
on mixed -use sites. Program 4.5 should be revised to quantify the number of mixed -
use projects the City hopes to incentivize through program actions and expedite project
reviews.
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Program 8.18 (zoning for a variety of housing types): The program proposes to amend
zoning "if necessary" to facilitate a variety of housing types. However, based on
analysis in the element, these zoning amendments are necessary, and the conditional
language should be removed from the program.
2. Address and, where appropriate and legally possible, remove governmental and
nongovernmental constraints to the maintenance, improvement, and development of
housing, including housing for all income levels and housing for persons with
disabilities. The program shall remove constraints to, and provide reasonable
accommodations for housing designed for, intended for occupancy by, or with
supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).)
As noted in Finding A-3 the element requires a complete analysis of potential
governmental constraints. Depending upon the results of that analysis, the City may
need to revise or add programs and address and remove or mitigate any identified
constraints. In addition:
Program 2.6: Program 2.6 commits to reviewing policies and standards annually to
identify potential constraints to the development and preservation of affordable
housing. The program should be revised to include a commitment for mitigation and/or
removal of identified constraints within a specific timeframe when constraints are
identified.
Program 6.13: Program 6.13 commits the City to general plan amendments and
rezoning as projects are proposed on 12 specific sites. However, the program limits
actions to accommodate only two rezones per year. Limiting the number of rezones
and placing the burden on applicants is a constraint that must be addressed. The
program must be revised to eliminate any annual caps on rezoning and should not
rezone only when a project is proposed.
Program 8.23: Program 8.23 should be revised to clarify compliance with the Employee
Housing Act, Health and Safety Code sections 17021.5 and 17021.6. For example,
local zoning should allow single family uses for six or fewer employees in all zones
allowing single family uses, not limited to zones allowing High Occupancy Residential
Uses.
Policy 10.2: Policy 10.2 indicates the City's interest in giving preference to individuals
employed in the geographic area, individuals residing in the County, and lastly,
individuals from outside of the County. This policy potentially erects barriers and
prevents access to housing opportunities, particularly to individuals from outside of the
City, and should be removed.
Program 10.4: Program 10.4 commits the City to work with developers to include
restrictions in Covenant Codes and Restriction's requiring for -sale properties to be
restricted to owner -occupants for the first 5 years after sale. Given the shortage of
housing for students and other special -needs groups. The element should include
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analysis describing why the actions are needed. In addition, the program should
commit to monitoring its impacts as a constraint on the availability of housing in the
City. If a constraint is identified, the program should also commit to mitigating the
constraint by a specific date.
3. The housing element shall include programs to conserve and improve the condition of
the existing affordable housing stock. (Gov. Code, § 65583, subd. (c)(4).)
As noted in Finding A-1 the element requires a complete analysis of housing
conditions. Depending upon the results of that analysis, the City may need to revise or
add programs to address identified needs. In addition:
Program 1.5: Program 1.5 commits to improving "at least one" unsafe, unsanitary or
illegal housing condition, barrier to accessibility, energy efficiency, or unsafe
neighborhood annually. Given the severity of need in the City, the program should be
revised to commit greater assistance to households and could target some of its
funding toward lower -income households.
Program 1.6: Program 1.6 commits to code enforcement actions to expedite the
removal of illegal or unsafe dwellings, to eliminate hazardous site or property
conditions, and to resolve chronic building safety problem. The program should be
revised to include enforcement officers provide a list of potential resources to
homeowners when violations are cited.
5. Promote and affirmatively further fair housing opportunities and promote housing
throughout the community or communities for all persons regardless of race, religion,
sex, marital status, ancestry, national origin, color, familial status, or disability, and
other characteristics protected by the California Fair Employment and Housing Act
(Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and
any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd.
(c) (5).)
Reasonable Accommodation: The element describes the City currently has a
procedure for requesting and granting a reasonable accommodation to zoning and land
use requirements for persons with disabilities. To affirmatively further fair housing, the
element could include a program to provide outreach and education on the availability
of the reasonable accommodation procedure. For additional information, see the
Building Blocks at http://www.hcd.ca.gov/community-development/building-
blocks/constraints/constraints-for-people-with-disabilities.shtml .
Fair Housing: The element must demonstrate how fair housing complaints are resolved
and how fair housing information is disseminated in a variety of locations throughout
the City or include a program to do so. For example, the program could:
• Contract with the Fair Housing Council to provide fair housing services to its
residents and property owners
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• Distribute educational materials to property owners, apartment managers, and
tenants every two years;
Make public service announcements through different media (e.g., newspaper
ads and public service announcements at local radio and television channels) at
least two times a year; and
Conduct public presentations with different community groups.
For additional information and a sample program, see the Building Blocks at
http://www.hcd.ca.gov/community-development/building-blocks/program-
requirements/equal-housing-opportunity.shtml .
Affirmatively Further Fair Housing: The element must include actions that promote and
affirmatively furthering fair housing opportunities. For example, the element could
include a program committing to implement Government Code section 8899.50(b)
which requires the City to administer its programs and activities relating to housing and
community development in a manner to affirmatively further fair housing and take no
action that is materially inconsistent with its obligation to affirmatively further fair
housing (Gov. Code, § 65583, subd. (c)(5).)
For your information pursuant to Government Code section 8899.50 "Affirmatively
furthering fair housing" means taking meaningful actions, in addition to combating
discrimination, that overcome patterns of segregation and foster inclusive communities
free from barriers that restrict access to opportunity based on protected characteristics.
Specifically, affirmatively furthering fair housing means taking meaningful actions that,
taken together, address significant disparities in housing needs and in access to
opportunity, replacing segregated living patterns with truly integrated and balanced living
patterns, transforming racially and ethnically concentrated areas of poverty into areas of
opportunity, and fostering and maintaining compliance with civil rights and fair housing
laws. The duty to affirmatively further fair housing extends to all public agency's activities
and programs relating to housing and community development."
D. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed,
rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)
(1 & 2).)
The element must include quantified objectives to establish an estimate of housing units by
income category that can be constructed, rehabilitated, and conserved over the planning
period. While the element includes objectives for new construction and units at -risk of
conversion to market rate uses, it must also include rehabilitation objectives and additional
conservation objectives (e.g. rental inspections, mobilehomes, replacement requirements).
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E. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic
segments of the community in the development of the housing element, and the element
shall describe this effort. (Gov. Code, § 65583, subd.(c)(8).)
While the element includes a general summary of the public participation process
(Appendix G), it must also demonstrate diligent efforts were made to involve all economic
segments of the community in the development of the housing element. The element
includes a list of stakeholders that were invited to participate in the housing element update.
However, the list did not demonstrate diligent effort to reach out to all economic segments of
the community. While the City engaged many organizations, it should also include groups
representing special -needs populations and consider and respond to comments received by
HCD. During the period between the date of this review letter and the adoption of the final
housing element, the City should continue its diligent public participation efforts to include all
economic segments of the community. The element should be updated to describe
additional efforts to circulate the revised housing element among low- and moderate -income
households and organizations that represent them and consider and respond to comments
received by HCD. In addition, the element should also summarize additional public
comments and describe how they were considered and incorporated into the element. For
additional information, see the Building Blocks at http://www.hcd.ca.gov/community-
development/building-blocks/getting-started/public-participation.shtml.
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Item 16
RESOLUTION NO. (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, TO RESOLVE THAT THE CITY OF SAN LUIS
OBISPO COMMITS TO SAN LUIS OBISPO BEING A SAFE, INCLUSIVE
AND WELCOMING COMMUNITY FOR EVERYONE AND TO
FACILITATE VOLUNTARY CITIZEN ACTION TO REDACT OR
REPUDIATE RACIST AND DISCRIMINATORY VERBIAGE FROM
THEIR PROPERTY DEEDS
WHEREAS, the Declaration of Independence defined the United States of America as a
democracy based on the unalienable rights of life, liberty and the pursuit of happiness, and
government by the consent of the people; and the 141h Amendment instilled equality of the races
into the US Constitution; and
WHEREAS, the City of San Luis Obispo will steadfastly strive to ensure that they are not,
either consciously or unconsciously, engaging in any form of discrimination. This takes vigilance
and a willingness to monitor and review numerical data, policies, practices and decision -making
processes and organizational culture. It is not acceptable from a human rights perspective for an
organization to choose to remain unaware of discrimination or to fail to act when a problem comes
to its attention; and
WHEREAS, in alignment with the goal of creating a safe and welcoming community, the
City of San Luis Obispo values human rights, peace, respect, inclusivity and equity; and
WHEREAS, the City Council of San Luis Obispo, recognize and acknowledge, as
representatives of the City of San Luis Obispo, that various deeds throughout the City included a
common but morally repugnant clause excluding all non -white races from ownership of the
property covered by the deed; and
WHEREAS, in 1948, the U.S. Supreme Court ruled such restrictions were
unconstitutional, yet the restrictive language has regrettably been preserved due to the need to
maintain historical continuity of the records; and
WHEREAS, the City Council wants to proclaim for the public record that the City of San
Luis Obispo will not tolerate racial bias, and welcomes warmly and without reservation neighbors
of all races and ethnicities in our community.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
that:
SECTION 1. The City Council is committed to San Luis Obispo being a welcoming,
inclusive, and safe community for everyone. While we promote free thought and speech, we
condemn racism and brutality, hate speech, bigotry, violence, and prejudice in any form.
17
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Item 16
Resolution No. (2020 Series) Page 2
SECTION 2. the City of San Luis Obispo wants to go on record that our City repudiates
historical racial restriction on ownership, and deeply regrets that it was once considered acceptable.
We also proclaim for the public record that the City of San Luis Obispo welcomes warmly and
without reservation neighbors of all races and ethnicities in our community.
SECTION 3. The City Council shall encourage and inform San Luis Obispo landowners
of the ability to redact illegal verbiage in existing property deeds, or to acknowledge the clause
excluding all non -white races from ownership of property and to repudiate the clause, stating that
we welcome with enthusiasm and without reservations neighbors of all races and ethnicities.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
2020.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this day of ,
Teresa Purrington
City Clerk
0
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Itempm
Recording Requested By
When recorded mail document to
Above Space for Recorder's Use Only
RESTRICTIVE COVENANT MODIFICATION
I (We) have an
ownership interest of record in the property located at that is
covered by the document described below.
The following referenced document contains a restrictive covenant based on race, color, religion, sex, familial status,
marital status, disability, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry
that violates state and federal fair housing laws and that restriction is void. Pursuant to Section 12956.2 of the
Government Code, this document is being recorded solely for the purpose of eliminating that restrictive
covenant as shown on page(s)
of the document recorded on
In book and page or Document No.
Official records of the County of
The document referenced above was originally indexed in the following manner
(date)
of the
, State of California.
and this document shall be indexed in like manner pursuant to Section 12956.2 (e).
The effective date of the terms and conditions of this modification document shall be the same as the
effective date of the original document referenced above.
Dated
W
W
Printed Name(s)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this
certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA }
COUNTY OF }
On before me, , a Notary Public,
personally appeared who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/their/her authorized capacity(ies), and that by
his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
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blank.
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CITY OF SHill DELIS OBISPO 1
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Recommendation
1. Adopt a Resolution approving the Housing Element
Update and a Negative Declaration of Environmental
I m pact.
2. Adopt a Resolution, entitled "A Resolution of the City
Council of the City of San Luis Obispo, California, to
Resolve that the City of San Luis Obispo Commits to
being a Safe, Inclusive and Welcoming Community for
Everyone and to Facilitate Voluntary Citizen Action to
Redact or Repudiate Racist and Discriminatory Verbiage
from Their Property Deeds."
Background
■ The 6t" Cycle Housing Element update is due
December 2020.
■ Required to include programs designed to meet our
share of the surrounding region's housing needs for all
income group; known as RH NA.
■ The City has been allotted a RHNA of 3,354 housing
units.
Background
RHNA breakdown for San Luis Obispo County
Very
Above
4Income
Income
Totals
Percent
Income
15.5%1
18.0%1 Income
City RIEINA to
i F
F +
Number of Units
Arroyo Grande
170
107
124 291
692
60/"0
Atascadero
20'
131
151
354
943
8%
Grover Beach
91
57
66
155
369
3%
Morro Bay
97
60
70
164
391
4%
Paso Robles
356
224
259
607
1,446
13%
Pismo Beach
11 y
71
82
193
459
4%
San Luis Obispo
825
520
603
15406
35354
31%
1_hinicorporated C'otuiry
801
505
595
1.165
3.?56
30%
Totals
2,660
1,675
1.940
4.5 35
10.810
100%
Source: San Luis Obispo Comicil of Governments (SLOCOG), 2019
1Percent of total housing need in each jur7sdiction.
Previous Advisory Body and Council Review
■ City Council Meeting —September 1, 2020
■ Planning Commission Meeting —July 22, 2020
■ Planning Commission Meeting — June 10, 2020
■ Human Relations Commission Meeting — June 3, 2020
■ Planning Commission Meeting —April 24, 2019
■ Public Forum and City Council Meeting —April 2, 2019
Public Engagement
■ Association of Realtors — July 23, 2019
■ Housing Element Workshop — December 10, 2019
■ Online Survey — December 10, 2019 — January 10, 2020
■ Chamber of Commerce —April 2, 2020
■ Economic Vitality Corporation and the Home Builders Association —
May 13, 2020
■ Chamber of Commerce — June 4, 2020
■ Online Survey — June 8, 2020—June 24, 2020
■ San Luis Obispo County Housing Summit — September 10, 2020
■ Public Notice - October 29, 2020 — November 17, 2020
Public Correspondence - CRLA
■ Staff engaged in informal discussions with CRLA after the
City had received their formal letter from HCD on September
4, 2020.
■ Staff provided a letter to CRLA on November 13, 2020 in
response to two letters, one received on August 14, 2020 and
another received on September 1, 2020.
■ Staff received a third letter from CRLA on Monday, November
16, 2020.
■ Staff appreciates CRLA's response to the City's letter,
however no new topics were identified and the letter largely
discusses items that would be desirable in the Housing
Element Update, but are not legally required.
What happens if the Element is notM
adopted?
■ If the City does not adopt its Housing Element Update
before the end of the year, then it will be without a
Housing Element until the update is certified by the
State.
■ Without a Housing Element, the City would not be
eligible for grant applications through HCD or other
State funding resources.
■ Over the past
several years,
the
City has received well
over $1
million
in grants
from
the
State.
Goals, Policies and Programs
# New # Goals Policy.-Wogram Reason for _liodificaalion
2.15 Affordhbility Evaluate a flexible density pilot program and
initiate an update of the Zoning Regulations and
Community Design Guidelines to incorporate
flexible density- development options in
Do-amtaixm Core and portions of Upper Monterey
and Mid-Higum Special Focus Areas to support
the production of 50 smaller residential units (150
to 600 square feet) per Year during the planning
period.
2.16 AffordahilAy Create and make available to interested parties an
informational packet that e*a'msSB 35
streamlining provisions and eligibility within two
years of Housing Element adoption_
2.17 Affordability In order to provide adequate sites for lover
income households on non -vacant and vacant
sites prelliously identified in the Housing
Element (Table E-3), the City will, within one (1)
Year of the adoption of the Housing Element
Update, allow developments (including mixed -
use projects) that include at least 20 percent of the
residential units as affordable to lower income
households, by right (no discretionary rn-iew)_
This program was recommended in
partby input from the corumunit�� and
the work program associated with the
Housing Major City Goal. The
community and Council identified
that the Downtown and portions of
'Upper Monterey and N id-Higuera
Special Focus Areas could be
appropriate for higher density housing
development_
The City is subject to SB 35
streamlining_ This packet would
provide mformation for den-elopeas_
the public- and staff on what projects
quantify for the process and the steps
that must be taken to submit a project
under SB 35 streamlining provisions_
Per Gov. Code Section b5583.2.
subsection (c), sites that have been
listed in prel-ivus Housing Element
are subject to a Housing Element
program that allows housing
development by right (no
discretionary re,-ieu) when 2GO/o of
the units we affordable to low income
households-
Council Direction
Policy 7.9 and Programs 7.14 and 7.15
■ Program 7.14 (not recommended for inclusion in the HE
update): Encourage new developments with 10 or more
residential units be reviewed and scored by the Healthy
Communities Work Group prior to submitting a planning
application to the City.
■ Program 7.15: Evaluate and update the Community
Design Guidelines to provide site design standards for
F=nnnf IYp^^ developments with 11-0 or more residential
units to include outdoor amenities such as the following:
outdoor visiting and gathering
exercise or recreate, and spaces
landscape or community gardens.
spaces, places to
reserved for edible
Council Direction
Policy 10.2
■ Encourage, and where legally allowed, require new
housing development to give preference in the following
order: 1) individuals who are employed in business that
are located in geographic areas that are customarily
included in the City's annual jobs -housing balance
analysis, 2) individuals residing in the County, and 3)
finally to individuals from outside the County.
Council Direction
Update Historic Resource Inventory
■ Council requested that a program be included in the
Housing Element Update that outlines a timeframe for
updating the Historic Resource Inventory.
■ Staff is recommending that if this is an important item
for Council, to provide direction to staff to consider as
part of upcoming work plans for the Conservation and
Open Space Element or the 2021-2023 Financial Plan.
Council Direction
Rezone for Microbusinesses
■ Council requested staff review opportunities to rezone
residential zones to allow microbusinesses.
■ LUE Policy 2.3.6: The City shall encourage mixed use
projects, where appropriate and compatible with existing and
planned development on the site and with adjacent and
nearby properties. The City shall support the location of
mixed -use projects and community and neighborhood
commercial centers near major activity nodes and
transportation corridors / transit opportunities where
appropriate.
■ LUE Policy 3.3.1: The City shall provide for new or expanded
areas of neighborhood commercial within, or extended into,
nonresidential areas adjacent to residential neighborhoods.
Council Direction
Reform CC&Rs
■ As noted by Council, there are many CC&Rs still in
existence within the City that include provisions that are
discriminatory.
■ CC&Rs
that
are discriminatory are
contrary to state and
federal
laws
and
are
therefore
null
and
void.
Council Direction
Graywater Systems
■ Graywater systems are allowed in the City and
depending on the amount of graywater released may
mean a permit is required.
■ Graywater is regulated by the California Plumbing Code
and Chapter 16 states that graywater must be used as
it is created and cannot be stored on site for any
purpose.
ON
Council Direction
Restrictive Covenants
■ A companion recommendation in this report is to adopt
a resolution entitled, A Resolution of the City Council of
the City of San Luis Obispo, California, to Resolve that
the City of San Luis Obispo Commits to being a Safe,
Inclusive and Welcoming Community for Everyone and
to Facilitate Voluntary Citizen Action to Redact or
Repudiate Racist and Discriminatory Verbiage from
Their Property Deeds.
HCD: California Department of Housingand•
Community Development
■ July 7, 2020: Submitted a draft of the Housing Element
Update to HCD for review.
■ August 6, 2020: Staff held a phone conference with
HCD to discuss their preliminary review of the Draft
Housing Element Update and required revisions.
■ September 4, 2020: Staff received a letter from HCD
with the remaining items that needed to be modified for
the Housing Element to be certified.
New Programs Per State Law
(Released on October 28, 2020)
■ Program 2.16: Create and make available to
parties an informational packet that explain
■ Program 3.10: In order to mi
housing units, replacement hoi
for sites identified in the sit
development (residential, mi.,
on a site that has been
the use of lower income hoUSE
previous five years. This reauir
s
igate the loss of affordable
ising units shall be provided
inventory when any new
:ed-use or non-residential)
occupied by or restricted for
holds at any time during the
1.ment applies to: non -vacant
sites and vacant sites with previous residential uses that
have been vacated or demolished (see Government Code,
section 65583.2, subdivision (g)(3), and Government Code,
section 65915, subdivision (c)(3)).
New Programs Per State Law
(Released on October 28, 2020)
■ Program 4.7: The City shall support Affirmatively Further Fair Housing by:
■ Facilitating public education and outreach by providing informational
flyers on fair housing and reasonable accommodation at public counters
and on the City's website. Information will be included with utility billing
at least once per year.
■ Training staff, elected officials, and appointees on issues of disparity,
structural racism, and inequality.
■ Implementing language standards and procedures for providing equal
access to City services and programs to all residents, including persons
with limited proficiency in English.
■ Deed -restricting units to provide affordability and reduce displacement.
■ Supporting new technologies and/or products such as modular housing
construction to reduce costs and increase access to housing.
■ Distributing information regarding tenant rights and Fair Housing
resources as part of Code Enforcement's response to housing code
enforcement issues.
New Programs Per State Law
(Released on October 28, 2020)
■ Program 4.8: Continue to distribute information
regarding Fair Housing by providing up to date
information online and brochures at the front counter,
providing educational materials
owners and property managers,
service announcements (including
to tenants, property
and making public
but not limited to the
City's News page, social media sites, and
ads) every year.
newspaper
New Programs Per State Law
(Released on October 28, 2020)
■ Program 8.18: Review and amend the Zoning
Regulations within one year of Housing Element
adoption to ensure compliance with: 1) the Supportive
Housing Streamlining Act (AB 2162) to allow supportive
housing a use -by -right in zones where multi -family and
mixed uses are permitted, including nonresidential
zones permitting multifamily uses, if the proposed
development meets specified criteria; and 2) AB 101, to
allow Low Barrier Navigation Centers by -right in all
residential zones, areas zoned for mixed -uses, and
nonresidential zones permitting multifamily uses.
New Programs Per State Law
(Released on October 28, 2020)
■ Program 8.23: Update Zoning Regulations, within two
years of Housing Element adoption, to be consistent
with the Employee Housing Act; including: 1) an update
of Table 2-1 to allow single -unit dwellings without a
Conditional Use Permit within the Open Space and
Conservation (C/OS) zone and employee housing
consisting of no more than 36 beds in a group quarters,
or 12 units or separate rooms or spaces designed for
use by a single-family or household within the C/OS
and AG zones, and 2) remove Chapter 17.148 - High -
Occupancy Residential Use Regulations.
New Programs: HCD requirement for
Certification (Released on October 28, 2020)
■ Program 5.5: Update the Zoning Regulations to allow
mixed -use development within Service Commercial (C-
S) and Manufacturing (M) zones without a use permit
within three years of the adoption of the Housing
Element.
Residential Development Capacity
Source: City of San Luis Obispo, Community Development Depalinient, 2019
New Program Per State Law
(Added with the CAR on November 5, 2020)
■ Program 2.17: In order to provide adequate sites for
lower income households on non -vacant and vacant
sites previously identified in the Housing Element (Table
E-2), the City will, within one (1) year of the adoption of
the Housing Element Update, allow developments
(including mixed -use projects) that include at least 20
percent of the residential units as affordable to lower
income households, by right (no discretionary review).
J
New Programs: HCD requirement for
Certification (Added with the CAR on November 5, 2020)
■ Program 2.18: Utilize objective design standards to allow
residential uses by right (no discretionary review) for those
developments (including mixed -use projects) that include at
least 20 percent of the residential units as affordable to low
income households.
■ Program 6.22: Update the City's municipal code to expand
objective design standards within one year of the adoption of
the Housing Element Update.
■ Program 6.23: Update the development review process and
expand the thresholds of each review level (minor, moderate,
and major) to eliminate or reduce the number of public
hearings required for housing projects within one year of
adopting the Housing Element.
Environmental Review
■ A Negative Declaration of Environmental Impact is
recommended for the Housing Element Update
because the there is no substantial evidence that the
project or any of its aspects may cause a significant
effect on the environment (CEQA Guidelines section
15063(b)(2)).
Recommendation
1. Adopt a Resolution approving the Housing Element
Update and a Negative Declaration of Environmental
I m pact.
2. Adopt a Resolution, entitled "A Resolution of the City
Council of the City of San Luis Obispo, California, to
Resolve that the City of San Luis Obispo Commits to
being a Safe, Inclusive and Welcoming Community for
Everyone and to Facilitate Voluntary Citizen Action to
Redact or Repudiate Racist and Discriminatory Verbiage
from Their Property Deeds."
mm
Restrictive Covenants Resolution
Proposed additional language:
■ WHEREAS, restrictive covenants limited property
ownership for non -whites, directly contributing to
significant wealth inequities experienced today; and
■ WHEREAS, restrictive covenants influenced land use
and settlement patterns throughout the City of San Luis
Obispo and surrounding area, creating patterns of racial
segregation still experienced today; and
■ WHEREAS, in 1948, the U.S. Supreme Court ruled...
Projects completed on sites not in the HE
inventory
■ South Hills Crossing (43 units)
■ 650 Tank Farm Mixed Use (249 units)
■ Marsh and Carmel Mixed Use (8 units)
■ 1121 Montalban Mixed Use (15 units)
■ 71 Palomar (41 units)