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HomeMy WebLinkAboutItem 13 - Study Session: Housing UpdateItem 13 �t�x ofi Council- d. Report ti ttjs o Department Name: Cost Center: For Agenda of: Placement: Estimated Time: FROM: Michael Codron, Community Development Director Prepared By: Cara Vereschagin, Housing Coordinator Rachel Cohen, Associate Planner Teresa McClish, Special Projects Manager SUBJECT: STUDY SESSION: HOUSING UPDATE RECOMMENDATION Community Development 40400 March 16, 2021 Study Session 60 minutes Receive an update on state housing legislation, the Housing Element Certification process, and the implementation of the City's housing programs. REPORT -IN -BRIEF The following report provides detailed information regarding the City's housing programs, including recent State housing -related laws, Sixth Cycle Housing Element certification, a status update on the implementation of programs, and information regarding the City's Affordable Housing Fund and pipeline 100% affordable housing projects. The report provides up-to-date information on each topic, discussion of City's role and response and identifies next steps for each topic area. DISCUSSION State Housing Laws The 2020 California Legislative Session ended with new bills in response to the State's ongoing housing crisis and COVID-19 pandemic. Governor Gavin Newsom signed legislation designed to "tidy -up" existing housing provisions to further the goal of housing development and affordability'. This new legislation is impactful to the City as it creates new requirements of which staff will need to be cognizant and incorporate into City practices and codes. Numerous professional organizations provided information regarding these bills, including the American Planning Association, League of California Cities, San Luis Obispo Legal Assistance Foundation, and the following law firms: Holland and Knight, Gibson Dunn, and Best Best & Krieger. 1 Reports on prior housing -related legislation are achieved on the City's website via the corresponding cycles: 2017 and 2019. Packet Page 91 Item 13 An initial summary collected from the opinions of the above entities, as well as any initial action items and foreseen impacts to the City, are provided in Attachment A for new State laws, pertinent for the City. Note that several other housing -related laws were passed in the 2020 Legislative Session; however, some are specific to regional areas and jurisdictions outside of San Luis Obispo and the Central Coast, and others do not directly/indirectly involve the City as a governmental agency doing business, thus they are not summarized in Attachment A. The following table displays the bills discussed in Attachment A and includes links to the corresponding bill text. Category I AB 168 — Tribal Consultation and Ministerial Streamlining for Certain Multifamily Projects 2 AB 831 — Modification to SB 35 Projects and Amendments to Entitlements, Permit, and Mixed -Use Clarification Funding Application 3 SB 1030 — Definition of "Deemed Complete" Streamlining under the Housing Accountability Act 4 AB 434 — Streamline HCD Funding Applications and Award Process 5 AB 725 — Moderate and Above Moderate Income Housing Requirements for Housing Element AB 1851 — Parking Requirements for Religious Bills Removing Barriers to 6 Institution Affiliated Housing Development Boost Housing Production Projects AB 2345 — Planning & Zoning Density Bonuses, and Affordability 7 Annual Report, and Affordable Housing 8 SB 1079 — Granting "Eligible Buyers" Opportunity to Purchase Foreclosure Properties Modifications to Accessory AB 3182 — Rental or Leasing Units in HOAs and Dwelling Unit 9 Ministerial Approval of Certain ADUs Requirements 10 SB 91 — COVID-19 Relief, Tenancy, and Federal COVID-19 Related Rental Assistance 11 AB 1561 — Housing Element and Entitlement Legislation & Tenant Protections Extensions 12 AB 2782 — Change of Use and Rent Control in Mobile Home Parks Packet Page 92 Item 13 Next Steps: Staff will continue to analyze the housing legislation for additional impacts and monitor for any amendments that arise. Staff will also continue to work on incorporating the impacts and amendments into the Municipal Code as necessary. Additionally, staff will also continue to monitor pending legislation per the State's 2021 Legislative Season (Attachment B). Housing Element Certification Process The City of San Luis Obispo produced its first Housing Element to receive certification by HCD in 2004. The City has maintained a certified Housing Element since that time, which has made it eligible for grant funding, including over $1 million in grants that were used for its Land Use and Circulation Element Updates. In addition, the City was eligible to participate in HCD's BEGIN program, which provided first-time homebuyers with down payment assistance for 10 units in the Tumbling Waters Townhomes project off Sacramento Drive. In 2018, California voters approved Props 12 and 23 that included a combined $6 billion in new funding for the development and preservation of affordable and supportive homes. Going forward, the City will only be eligible for these monies if it maintains a certified Housing Element. On November 17, 2020, the City Council adopted the Sixth Cycle Housing Element that covers housing policies and programs for the planning period from 2020-2028. The adopted Housing Element was received by the California Department of Housing and Community Development (HCD) on December 22, 2020 for formal certification review. The City anticipates that HCD will certify the adopted Housing Element by March 22, 2021. Next Steps: Staff will continue to communicate and work with HCD to obtain a certified Housing Element. Sixth Cycle Housing Element Programs The updated Housing Element includes various programs that are required to be implemented within the next one to three years. The table below identifies the various programs, the estimated completion timeline of the program, and the current status of the program. Housing Element Programs Program No. Program Completion Timeline Status Update the hiclusionary Housing Ordinance, including Nexus Study is complete. Table 2A, based on findings and recommendations in The Feasibility Analysis the 2020 Affordable Housing Nexus Study and will be underway this 2.13 conduct further feasibility analysis in order to evaluate 1 year summer. Full analysis to the City's ability to provide affordable housing in the begin in the Fall 2021. proportions shown in the Regional Housing Needs REAP grant funding Allocation, per Policy 2.4. available to fund part of the tasks. 2 Proposition 1 authorized $4 billion in general obligation bonds for state multi -family housing infrastructure programs, homeownership programs, farm housing programs, and projects and housing loans for veterans. s Proposition 2 authorized bonds to fund supportive housing for individuals with mental illness. Packet Page 93 Item 13 Program Program Completion Status No. Timeline Evaluate a flexible density pilot program and initiate an update of the Zoning Regulations and Community Design Guidelines to incorporate flexible density Program development is development options in Downtown Core and portions underway. See detailed 2.15 of Upper Monterey and Mid-Higuera Special Focus 1 year discussion below under Areas to support the production of 50 smaller "Flexible Density." residential units (150 to 600 square feet) per year during the planning period. 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 Part of the implementation 2.17 Housing Element Update, allow developments 1 year of Program 6.22. (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). Amend the Inclusionary Housing Ordinance to require that affordable units in a development be of similar size, number of bedrooms, character and basic quality 4.6 as the non -restricted units in locations that avoid 1 year See status under Program segregation of such units, including equivalent ways to 2.13 above. satisfy the requirement. Also evaluate adjusting the City's allowable sales prices for deed -restricted affordable units per a variety of unit types. Update the Zoning Regulations to allow mixed -use development within Service Commercial (C-S) and To be included as part of the 5.5 Manufacturing (M) zones without a use permit within 1 year Fall 2021 Zoning one year of the adoption of the Housing Element. Regulations Update. Underway. Staff has developed a project plan Update the City's municipal code to expand objective and a more detailed 6.22 design standards within one year of the adoption of the 1 year discussion is provided Housing Element Update. below under Objective Design Standards." REAP grant funding available for the project. Update the development review process and expand the thresholds of each review level (minor, moderate, 6.23 and major) to eliminate or reduce the number of public 1 year Not started. hearings required for housing projects within one year of adopting the Housing Element. 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 be included as part of the 8.18 housing a use -by -right in zones where multi -family 1 year Fa Fall 2021 Zoning and mixed uses are permitted, including nonresidential Regulations Update. 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 Packet Page 94 Item 13 Program Program Completion Status No. Timeline nonresidential zones permitting multifamily uses. Update the Affordable Housing Standards to include Homeowners' Association (HOA) fees and a standard 2.10 allowance for utilities in the calculation for affordable 2 year Not started. rents and home sales prices within two years of adopting the Housing Element. Create and make available to interested parties an informational packet that explains SB 35 streamlining 2.16 provisions and eligibility within two years of Housing 2 Years Not started. Element adoption. Utilize objective design standards to allow residential uses by right (no discretionary review) for those 2.18 developments (including mixed -use projects) that 2 years Not started. include at least 20 percent of the residential units as affordable to low-income households. 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 To be included as part of the 8.23 Conservation (C/OS) zone and employee housing 2 years Fall 2021 Zoning consisting of no more than 36 beds in a group quarters, Regulations Update. 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. Cal Poly Studio has started preliminary work on Evaluate and implement "missing middle" housing exploring opportunities types (e.g. duplex, triplex, quadplex, cottages, etc.) to within the City for Missing 5.4 increase housing options in the City within three years 3 years Middle Housing. See of adopting the Housing Element. detailed discussion below under "Missing Middle Housin .' Evaluate and update the Subdivision Regulations, within three years of Housing Element adoption, to 6.20 support small lot subdivisions, ownership bungalow 3 years Continue court development and other alternatives to conventional subdivision design Packet Page 95 Item 13 Housing Element Program 2.15 (Flexible Density) Consistent with the City's adopted Housing Major City Goal in the 2019-2021 Financial Plan the Flexible Density program has been initiated to facilitate production of smaller housing units in the Downtown and portions of the Upper Monterey areas, with potential expansion to the Mid- Higuera Special Focus area. The program would incentivize the development of small residential units through application of a zoning overlay specific to the project area that removes density maximums for projects that construct residential units under 600 square feet. It is anticipated that the program over time would diversify the City's housing stock, increase housing production proximate to downtown, increase units that are more affordable by design and attractive to the workforce and directly implement the Climate Action Plan objective outlined below: 2020 Climate Action Plan (CAP) Connected Community Pillar 5.1 Complete the 2019-21 Housing Major City Goal, including the Housing Element of the General Plan Update and Flexible Zoning Requirements for Downtown. The CAP additionally emphasizes the critical opportunity to bring higher density smaller units to allow more in -town employees to live close to work and utilize active transportation in place of car travel and other carbon -intensive, high -cost modes. Seizing opportunities to increase a diverse housing stock and housing affordability are also important components to reducing housing and community vulnerability to help the City address resiliency and equity needs. Packet Page 96 Item 13 The program is intended to apply to new construction and conversion of residential and non- residential square footage and may be combined within projects also constructing units over 600 square feet, which are subject to density requirements. Provisions in the zoning ordinance currently applicable to Planned Developments, including requirements for community benefits and applied most recently for the approved project at 1144 Chorro St., would be comparable to the flexible density program that would be more widely available to projects with units smaller than 600 square feet in the downtown vicinity. It is important to note that through the construction of smaller units, the flexible density program is intended to increase the number of residential units in any given building envelop currently allowed by City regulations, but not expand it. Standards for example, pertaining to height, setbacks, lot coverage and floor area ratio are not proposed to change in this program. Q Standard Density Units Allowed: 12 studios (6 du) A Residential Area: 4,800 sf — 3rd floor �. Parking: 33 spaces required Hypothetical Comparison 400 sf studios Q 641 Higuera Street OO Flexible Density Units Available: 30 studios A Residential Area: 12,000 sf — 2nd & 3rd floor Parking: 27 spaces required Staff has conducted constraints and opportunity analyses including state and local policy audits, and residential capacity analyses, developed an administrative draft ordinance and is currently working on a community outreach strategy and the infrastructure and resource capacity analysis needed to scope environmental review. The first phase of the project is estimated to facilitate an additional 340-600 units in the Downtown and Upper Monterey areas. Depending on the success of the program, the second phase would be expanded to the Mid-Higuera area. The project has funding through a $160,000 SB2 Grant through the California Department of Housing and Community Development. Next Steps: The initial phase ordinance applicable to the Downtown and Upper Monterey areas is anticipated to be brought froward for adoption in the fall 2021. Housing Element Program 5.4 (Missing Middle Housing) The City's adopted Housing Major City Goal in the 2019-2021 Financial Plan included a program to create housing for above moderate -income households that includes "missing middle" housing types and directly implement Housing Element Program 5.4 outlined above in Table 1. Packet Page 97 Item 13 Staff has engaged a Cal Poly Design Studio to complete a comprehensive background conditions report and produce an administrative draft Missing Middle Housing plan for the city. Included in the effort, are recommended policy amendments, zoning changes, and identified gaps for developing missing middle housing in the context of the City's goals around housing and climate change. The project approach is directed through five lenses: Diversity, Equity, and Inclusion; Neighborhood Design and Clean Energy Buildings; Financial Feasibility and Incentives; Transportation and Parking and Community Outreach and Education. Missing Middle Housing is intended to be an important strategy to meaningfully increase the number of available housing units to all income levels. Missing Middle housing is small scale, multi -unit, or clustered housing in walkable mixed neighborhoods, and compatibly designed in size and scale as typical single-family homes. It has been incorporated into the zoning codes of several cities including, notably, Vancouver, Minneapolis, and Livermore and in smaller communities as well. Missing Middle initiatives are intended to counter the loss of smaller residential architecture phased out since the 1940's, in part due to zoning barriers. For the City, the current strategy is to focus on areas within the City near transportation corridors. Missing Middle Housing is a range of house -scale buildings with multiple units —compatible in scale and form with detached single-family homes — located in a walkable neighborhood. Detached Single -Family Houses Courtyard "tl�� meowm Duplex, Fourplex: Building Cour; Side -By -Side + Stacked \ Stacked —Missing Middle Housing Pr;m To date, a Missing Middle Existing Conditions Report is completed, including stakeholder interviews. The remaining Cal Poly Studio work is scheduled to be delivered after winter quarter and will provide significant pieces to incorporate into a strategic community outreach plan and draft ordinances. Next Steps: Staff will begin working on draft ordinances using information from the Cal Poly Studio work with a goal to obtain input from the community through engagement and workshops starting in the fall of 2021. Packet Page 98 Item 13 Housing Element Program 6.22 (Objective Design Standards) Staff will be developing Objective Design Standards for eligible streamlined and ministerial residential development projects. Government Code 65583.2(c) and recent State law requires a ministerial process for eligible residential developments, such as projects that include 20% affordable units on sites identified in the Housing Element (see HE Program 2.17), and those projects that qualify under SB 35 and AB 2162. Staff s approach is to add Objective Design Standards to the City's Zoning Regulations that are derived from the City's existing Community Design Guidelines. This a similar approach the City of Santa Rosa implemented. Attachment C, provided as an example, is the revised language added to Santa Rosa's Municipal Code. The proposed Objective Design Standards do not include changes to the Community Design Guidelines and will only be applied to projects that are eligible for by -right, ministerial project review. Next Steps: Staff will begin work on draft Objective Design Standards based on the Community Design Guidelines with a goal of adopting the Standards by the end of 2021. Affordable Housing Fund Status and Pipeline Affordable Housing Projects Affordable Housing Fund On March 2, 2021, the City Council approved an Affordable Housing Award (AHF) of $335,000 to the Housing Authority of the City of San Luis Obispo (HASLO) to help with the construction of Toscano Apartments, a new 100% affordable housing project that includes 38 lower -income affordable units. In 2020, the City Council approved two separate AHF awards to Peoples' Self - Help Housing Corporation (PSHHC) to assist with the development of Broad Street Place (40 units, $1.3M AHF award) and Tiburon Place (68 units, $700,000 AHF award). All three of these awards will be structured as loans, issued at the time of each projects' soft cost and construction financing close, typically with a 55-year term and 3-4% simple interest. The award to HASLO brings the total of committed AHFs dollars to $2,335,000, leaving an uncommitted, liquid funding balance of $81,710.95 to assist with future affordable housing projects (Attachment D). The following table displays all the AHF awards the City has made to date. The City also has over $200,000 available for first-time homebuyer assistance loans. These funds are only available to low- or moderate -income first-time homebuyers for homes located within the City. Funds are issued as 30-year loans, that are executed via a Promissory Note, evidenced by a Deed of Trust that are recorded on title of the property purchased, the loan amount cannot exceed 20% of the sales price. The City currently has 11 active loans. Pipeline Affordable Housing Projects Broad Street Place: Housing staff and outside legal counsel have been working diligently (since the end of 2020) to coordinate the close of escrow on the soft cost and construction financing for Broad Street Place, being developed by PSHHC. Escrow closing coordination is a timely process, as staff must coordinate with all of the other financial lenders to the project, which in this case includes 30+ people located nation-wide. The City's newest affordable housing community will be located across from the Damon -Garcia Sport Fields next to the Iron Works Apartments (also an 100% affordable housing project developed by HASLO in 2018). Packet Page 99 Item 13 This particular project will provide 40 units of deed -restricted affordable housing, including 10 units that will be solely dedicated for previously homeless veterans. Broad Street Place received a total of $5,409,971 of City, State, and Federal funds to assist with acquisition and construction costs. Following the close of escrow in mid -March, construction will break ground in April! Tiburon Place: The Tiburon Place Project will be located within the City's Orcutt Area. To comply with the City's inclusionary housing requirements for Tract #3063 (Righetti Ranch), Tract #3066 (Jones Ranch), Tract #3095 (Imel Tract), and the Pratt Property, 54 units were approved to be dedicated to PSHHC for construction, which initially included 42 units available to 80% Area Median Income (AMI), or a "low" income level of affordability, and 12 units available to 120% AMI or "moderate" income level of affordability. However, PSHHC is developing the Tiburon Place Project with a total of 68 affordable units, which is 14 units beyond the original requirement. Additionally, it is increasing the affordability level of these units, such that the project will provide units available to 30% to 60% AMI, or extremely low, very low, and low-income residents. After months of coordination in 2019-2020 with City housing and transportation staff, PSHHC was unsuccessful securing a grant from the State's Affordable Housing and Sustainability Communities (AHSC) program to help finance the project, thus PSHHC is currently aiming to apply to the State's No Place Like Home program and for competitive (9%) Low Income Housing Tax Credits (LIHTCs). Upon successful awards per these two financing sources, and security of a permanent construction loan, City housing staff will coordinate with PSHHC and the other lenders to close soft cost and construction financing escrow, likely by the end of 2021/early 2022. San Luis Ranch Inclusionary Deed -Restricted Affordable Housing: The San Luis Ranch development project recently broke ground along Madonna Road. This major development project will provide over 580 new homes of various housing types, which will be exclusively available to local residents. Also scattered throughout the various neighborhoods, a minimum of 48 units will be constructed and provided as affordable to very -low, low, moderate, and "workforce" income families. Preliminary discussions with PSHHC have begun to construct the associated very -low income units in a new apartment community. As of now, PSHHC expects to submit planning entitlements to the City by the end of 2021. Avila Ranch Inclusionary Deed -Restricted Affordable Housing: Avila Ranch, located off Buckley Road, is working to finalize their associated tract maps for their 720-unit residential development. Similar to the San Luis Ranch development, Avila Ranch offers a variety of housing types that will also be initially available to San Luis Obispo County residents. Additionally, this Development will provide a minimum of 96 units affordable to low, moderate, and "workforce" income families. Policy Context All programs discussed in this staff report are included as a part of the Sixth Cycle Housing Element and are consistent with policies outlined in the City's General Plan. Public Engagement The Legislative and Housing Programs update is being provided to the City Council and community to inform future housing policy decisions and actions. Packet Page 100 Item 13 ENVIRONMENTAL REVIEW Since this item is informational in nature and involves no action by the City Council, the California Environmental Quality Act (CEQA) does not apply to the recommended action because it does not constitute a "Project" under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: N/A Budget Year: 2020-21 Funding Identified: N/A Fiscal Analysis: There is no fiscal impact associated with this study session and no action is recommended. ALTERNATIVES Continue consideration of the housing update presentation. Although no action is recommended in association with this report, the City Council could ask staff to return during a future meeting to present additional information. If the Council would like to hear additional information at a future meeting, specific direction should be provided to staff. Attachments: a - 2020 Signed Housing Legislation List b - 2021 Pending Housing -Related Bills c - Example Objective Design Standards d - Trial Balance AHF March 2021 Packet Page 101 Item 13 Summary and Update of 2020-21 Housing Legislation City Council Study Session AMENDMENTS TO ENTITLEMENT, PERMIT, AND FUNDING APPLICATION STREAMLINING AB 168 — Tribal Consultation and Ministerial Streamlining for Certain Multifamily Projects Description: AB 168 requires an applicant seeking SB 35 streamlining to first submit a preliminary application as a "notice of intent," which then requires the local government to undertake scoping consultation with any Native American tribes that are traditionally and culturally affiliated with a geographic area. The SB 35 applicant may proceed with the full application if no tribal cultural resource seeks to engage, if no tribal cultural resource would be affected, or if a tribal cultural resource impact is identified but the parties agree to mitigation measures. Additionally, this bill sets the time for early vesting for SB 35 streamlining at submission of a preliminary application "notice of intent." Actions and Impacts to the City: No immediate action. Due to the specific requirements established under SB 35 (which was the landmark bill passed in Gov. Brown's the 2017 Housing Package), it is very unlikely the City should receive an application for SB 35 streamlining. However, should the City receive such an application, staff will be sure to consult with the local Chumash Tribal Council and any other Native American affiliates. AB 831 — Modification to SB 35 Projects and Mixed -Use Clarification Description: AB 831 allows a developer to modify a project that has already been approved under SB 35 streamlining if the final building permit has not issued so long as such modification is consistent with objective development standards in effect at the time the original application was submitted to the local agency. This bill further provides that if off -site public improvements are required for an SB 35 development should be approved without delay or any action that would inhibit, chill, or preclude development. Additionally, AB 831 clarifies that mixed -use developments are eligible for SB 35 streamlining if two-thirds of a mixed -use project be dedicated to residential use. In response to an SB 35 lawsuit, the new amendments clarify that the two-thirds requirement applies to the proposed project itself, not the underlying zoning. Actions and Impact to the City: No immediate action as the City has not approved any projects under SB 35 streamlining. Due to the specific requirements established under SB 35 (which was the landmark bill passed in Gov. Brown's the 2017 Housing Package), it is very unlikely the City should receive an application for Packet Page 102 Item 13 Summary and Update of 2020-21 Housing Legislation Page 2 SB 35 streamlining. However, should the City receive such an application, staff will be sure to comply with new AB 831 requirements. SB 1030 — Definition of "Deemed Complete" Under the Housing Accountability Act Description: Per SB 330 (2019), a housing application is entitled to proceed under the standards in effect at the time the applicant submits a preliminary application. SB 1030 provides that if an applicant does not submit a preliminary application, it is entitled to proceed under the standards in effect at the time it submits a complete application pursuant to the Permit Streamlining Act. Additionally, this bill provides that an applicant is not required to resubmit a preliminary application if the number of residential units or square footage of construction changes after submission if the change is due to a locally authorized density bonus or development increase in units. Actions and Impact to the City: The City has not approved any projects under SB 330 streamlining therefore no immediate action is required. However, the City is aware that it must update its development review process to comply with the provisions of the Permit Streamlining Act, which is currently identified in the 6' Cycle Housing Element as a "high priority" work program for the upcoming year. AB 434 — Streamline HCD Funding Applications and Award Process Description: AB 434 would streamline California Department of Housing and Community Development (HCD) rental housing program applications into a single application and award process. HCD operates at least nine separate rental housing programs for specific purposes, and affordable housing developers must pull together a combination of these sources (often with federal low-income housing tax credits as well) in order to fully fund a development. This fragmented funding application process inflates project costs, delays project timelines, and increases staff time for both affordable housing developers and HCD. This bill allows HCD to use a single application and scoring system to make coordinated awards for all programs at one time while maintaining the specific intent of each original program. Actions and Impact to the City: No immediate action; however, staff anticipates these changes to be have an extreme, positive impact when jointly applying and/or partnering with non-profit housing developers on future State funding opportunities for housing projects. The City identified increasing such collaborations in several policies and programs in the 6' Cycle Housing Element. Packet Page 103 Item 13 Summary and Update of 2020-21 Housing Legislation Page 3 BILLS REMOVING BARRIERS TO BOOST HOUSING PRODUCTION AND AFFORDABILITY AB 725 — Moderate Income Housing Description: AB 725 targets the deficit of medium -density housing by requiring at least 25% of a metropolitan jurisdiction's share of the regional housing need for both moderate -income housing and above - moderate income housing be allocated to sites zoned for at least four units of housing (but no more than 100 units per acre of housing). Accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) do not count towards the 25% requirement. Actions and Impacts to the City: No immediate action. This bill only applies to housing elements due after January 1, 2022. Therefore, the City's 6' Cycle Housing Element Update is exempt from this bill, but the City will need to be cognizant of this requirement for the 7th Cycle update. AB 1851 — Parking Requirements for Religious Institution Affiliated Housing Development Projects Description: AB 1851 aims to make it easier for faith -based organizations to build affordable housing on their properties by prohibiting local agencies from requiring the replacement of religious -use parking spaces that a developer of a religious institution affiliated housing development project proposes to eliminate as part of that housing development project. However, the bill limits the religious institution's elimination request to no more than 50% of the number of parking spaces that are available at the time the request is made. Further, AB 1851 prohibits a local agency from requiring the religious institution from curing any preexisting deficit of the number of parking spaces on site as a condition of approval for the affordable housing. Under this bill, however, a local agency can require up to one parking space per unit for a religious institution affiliated housing development project. Actions and Impacts to the City: No immediate action. Should a faith -based organization be eligible under the Zoning Code to build affordable housing on their property, planning staff are to be aware of the new parking requirements. These updated requirements will be important to include in the next Municipal Code update. AB 2345 — Planning & Zoning Density Bonuses Annual Report Affordable Housing Description: AB 2345 makes a few important changes to California's Density Bonus Law. This bill's most notable changes are as follows: Packet Page 104 Item 13 Summary and Update of 2020-21 Housing Legislation Page 4 Maximum Density: This bill increases the maximum density bonus from 35 percent to 50 percent, based on an updated sliding scale of affordability.' Eligibilityfor 100 Percent Affordable Projects: This bill requires the density -bonus units to be affordable in a 100-percent affordable project (which can receive an 80 percent or unlimited density bonus), not just the non -bonus (base) units, except that 20 percent of those units can be for moderate -income households. Incentives/Concessions Thresholds: This bill lowers the low-income threshold to qualify for two incentives or concessions from 20 percent to 17 percent. Further, it reduces the low-income threshold to qualify for three incentives or concessions from 30 percent to 24 percent. Parking: This bill decreases the parking ratio for two- and three -bedroom units in density -bonus projects so that no more than 1.5 spaces can be required per unit. Additionally, it prohibits parking requirements for certain transit -oriented developments (unobstructed access to a fixed bus route) or senior projects (62 or older). Actions and Impacts to the City: This bill requires local agencies to include information regarding the total number of density bonus applications received and approved each year in the mandated Annual Progress Reports to HCD. Additionally, due to the changes in threshold for density bonuses, concessions, and parking requirements, the Zoning Code will need to be updated to reflect the changes and planning staff will need to be aware of the new requirements on applications moving forward. SB 1079 — Granting "Eligible Buyers" Opportunity to Purchase Foreclosure Properties Description: SB 1079 alters the current process of foreclosure sales process to permit qualified parties a means to purchase property in foreclosure both at and after the foreclosure sale auction. Specifically, SB 1079 allows "Eligible Tenant Buyers" and "Eligible Bidders" the opportunity to purchase a property after the trustee sale closes. Previously, the last and highest bid signaled the finality of an auction. However, SB 1079 grants "Eligible Tenant Buyers" the opportunity to match the last and highest bid at the trustee auction, and "Eligible Bidders" the opportunity to exceed the last and highest bid. SB 1079 also changes procedural requirements, adding that the purchase of sale contain a notice to the tenant stating their potential right to purchase the property, requiring that the lender or trustee establish a 24/7 phone or website to provide information free of charge, and ' To receive this increased bonus, a project must comply with unit replacement requirements and set aside at least: 1) 24 percent of units for low-income households; 2) 15 percent of units for very -low income households; or 3) 44 percent of for -sale units for moderate -income households. Packet Page 105 Item 13 Summary and Update of 2020-21 Housing Legislation Page 5 prohibiting trustees from bundling multiple properties for sale by requiring each property to be bid on separately. "Eligible Tenant Buyers" are defined as natural people who occupy the real property as their primary residence, are occupying the real property under a rental or lease agreement entered as the result of an arm's length transaction with the mortgagor or trustor on a date prior to the Notice of Default, and are not the mortgager or trustor, child spouse, or parent of the mortgagor or trustor. "Eligible Bidders" are defined as any of a list of different nonprofits, individuals, and companies listed under California Civil Code Section 2924m. Actions and Impact to the City: No immediate or direct impact to the City; however, these new provisions have the potential to increase housing opportunities for local residents and non-profit housing providers, which is positive for the City achieving its' housing and affordability goals. MODIFICATIONS TO ACCESSORY DWELLING UNIT REQUIREMENTS AB 3182 — Rental or Leasing Units in HOA and Ministerial Approval of Certain ADUs Description: AB 3182 deems an ADU application approved if the local agency fails to act on a complete application by the 60-day deadline. Additionally, this bill requires ministerial approval of an application for a building permit within a residential or mixed -use zone to create one ADU and one JADU per lot within a proposed or existing single-family dwelling if certain requirements are met (see GC Section 65852.2(e)(1)(A)). Previously, an owner could only build an ADU or a JADU per lot within a proposed or existing single-family dwelling in residential or mixed -use zones (see GC Section 65852.2(e)(1)(B)). Finally, the bill provides that an owner of a separate interest in a common interest development (CID) is not subject to a provision in a governing document or an amendment thereto that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, ADUs, or JADUs in that CID unless the document was effective prior to the owner acquiring the separate interest. Put simply, it limits the ability of a CID to prohibit homeowners from renting or leasing their homes. The bill also prohibits a CID from adopting or enforcing a provision that restricts the rental or lease of separate interests to less than 25% of the separate interests in the CID. Finally, the bill specifies that these provisions do not prohibit a CID from adopting a provision in a governing document that prohibits short-term rentals of 30 days or less. Actions and Impact to the City: The City updated its ADU Ordinance in February 2020, in response to the new regulations established by 2019 Legislative Session. Given these additional provisions of AB 3182, the City will need to make changes to the existing ADU Ordinance to ensure compliance. Packet Page 106 Item 13 Summary and Update of 2020-21 Housing Legislation Page 6 COVID-19 RELATED LEGISLATION & TENANT PROTECTIONS SB 91— COVID-19 Relief, Tenancy, Federal Rental Assistance Description: SB 91 provides financial assistance to landlords and tenants of up to 80 percent of the unpaid rent accrued since the start of COVID-19. In December 2020, Congress passed and signed into law COVID relief legislation, setting aside $25 billion for direct financial relief to rental property providers through the states. SB 91 establishes the guidelines for distributing the $2.6 billion allotted to California to landlords of qualifying low-income renters. Specifically, the bill provides up to 80% of rent owed between April 1, 2020 to March 31, 2021 to qualifying landlords so long as the landlord forgives the remaining balance and agrees not to pursue eviction for nonpayment. Additionally, per this bill, housing providers cannot use a prospective tenant's COVID-19 rental debt as a negative factor in evaluating that tenant. Further, this bill also prohibits late fees on COVID-19 rental debt through July 30, 2021. Finally, SB 91 extends "non-payment" evictions if tenants pay 25% of their rent and can demonstrate a COVID hardship and also extends the "no cause" statewide eviction moratorium (both protections established under AB 3088). Actions and Impact to the City: No immediate action as the City does not own nor manage any housing units. Additionally, because the City participates in the San Luis Obispo Urban County (meaning the "non -entitlement" Federal funding programs), implemented/managed by the County of San Luis Obispo, the County could have elected to administer the funds. However, the County recently decided to participate in the State -administered program. This decision was largely made because there were no local providers that were interested in administering the program given the start-up costs and limited 8- month operational timeframe. AB 1561 — Housing Element and Entitlement Extensions Description: Starting in 2024, at the discretion of HCD, the Housing Element's analysis of constraints on the maintenance, improvement or development of housing may also address constraints on housing for persons due to their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language or immigration status. Additionally, under CEQA, the time for California Native American Tribes to respond to a lead agency's consultation request for negative declarations, mitigated negative declarations, and EIRs z AB 3088, the Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020 prohibited residential tenants from being evicted for failure to pay rent due to a COVID-19- related hardship occurring between March 1 and August 31, 2020. Residential tenants experiencing a COVID- 19-related hardship between September 1, 2020 and Jan. 31, 2021 were also protected from eviction if they pay at least 25 percent of the rent due during this period. This bill expired on January 31, 2021, but its protections were largely extended by SB 91. Packet Page 107 Item 13 Summary and Update of 2020-21 Housing Legislation Page 7 for housing development projects is extended to 60 days when the project application is deemed complete�between March 4, 2020, and Dec. 31, 2021. Deleted: a Finally, in response to COVID-19 and to ensure uniformity across the State, this bill provides an automatic 18-month extension for the expiration, effectuation, or utilization of housing entitlements in effect before March 4, 2020 and that expire before December 31, 2021. Housing entitlements do not include development agreements, a preliminary application under SB 330, or an SB 35 application. If a local jurisdiction has adopted its own extension that is 18 months or longer before AB 1561 becomes effective (September 28, 2020), the entitlement will not be eligible for an additional extension under AB 1561. Actions and Impact to the City: There are currently three housing development project applications that were deemed complete after March 4, 2020 and are subject to environmental review (Initial Study/Mitigated Negative Declaration or Environmental Impact Report) and the 60-day tribal consultation extension. In response to COVID-19 impacts, on June 16', 2020, the City Council adopted Resolution No. 11131 (2020 Series) that extended the life of all discretionary approvals covered by the Municipal Code Section 17.104.070 by one year after the termination of the declared local emergency; thus it is unlikely entitlements will be eligible for additional extensions under this bill. AB 2782 — Change of Use and Rent Control in Mobile Home Parks Description: AB 2782 requires the management of mobile home parks to give homeowners 60 days' written notice before the management will be appearing before a local governmental board to obtain approval for a change in use of the mobile home park. While previous law allowed a legislative body to require the person or entity changing use to take steps to mitigate any adverse impact on the ability of displaced residents to find adequate housing, AB 2782 requires that in the original report submitted to the legislative body, the person must include a replacement or relocation plan that adequately mitigates the impact on the displaced residents of the mobile home park. AB 2782 also requires that this report now be provided 60 days before the hearing, not 15 days. The legislative body can choose whether or not to approve of the park closure or conversion after taking into consideration the impact report and overall housing availability within the jurisdiction. Additionally, the person or entity proposing the change to the park must pay displaced residents who become unable to obtain adequate housing in another mobile home park within the same market value of the displaced home. Actions and Impact to the City: The City currently has a Mobile Home Park Conversion Ordinance to preserve affordability of these types of units. The City's Conversion Ordinance does require the applicant to hire a "relocation specialist" but will need to be amended to require such a specialist at the time of application submittal. The City will also need to amend the Conversion Ordinance to comply with the 60-day notice report provisions. Lastly, the City will need to amend the Conversion Ordinance to make the payment provisions for displaced residents that are unable to obtain housing in a subsequent mobile home park, mandatory — currently this is just a suggested condition in the City's Ordinance. Packet Page 108 2021 Housing Related Bills Item 13 2/26/2021 AB 15 (Chiu D) COVID-19 relief: tenancy: Tenant Stabilization Act of 2021. Current Text: Introduced: 12/7/2020 html pf Status: 1/11/2021-Referred to Com. on H. & C.D. Location: 1/11/2021-A. H. & C.D. Desk I Policy Fiscal I Floor Desk Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Would extend the definition of "COVID-19 rental debt" as unpaid rent or any other unpaid financial obligation of a tenant that came due between March 1, 2020, and December 31, 2021. The bill would also extend the repeal date of the act to January 1, 2026. The bill would make other conforming changes to align with these extended dates. By extending the repeal date of the act, the bill would expand the crime of perjury and create a state -mandated local program. AB 16 (Chiu D) Tenancies: COVID-19 Tenant, Small Landlord, and Affordable Housing Provider Stabilization Act of 2021. Current Text: Amended: 1/12/2021 html Of Status: 1/13/2021-Re-referred to Com. on H. & C.D. Location: 1/11/2021-A. H. & C.D. Desk I Policy] Fiscal I Floor Desk I Policy I Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House I Conc. Summary: Would establish the Tenant, Small Landlord, and Affordable Housing Provider Stabilization Program. The bill would authorize the Director of Housing and Community Development to direct an existing office or program within the Department of Housing and Community Development to implement the program. The bill would establish in the State Treasury the COVID-19 Tenant, Small Landlord, and Affordable Housing Provider Stabilization Fund, and, upon appropriation by the Legislature, distribute all moneys in the fund to the department to carry out the purposes of the program. AB 59 (Gabriel D) Mitigation Fee Act: fees: notice and timelines. Current Text: Introduced: 12/7/2020 html pf Status: 1/11/2021-Referred to Corns. on L. GOV. and H. & C.D. Location: 1/11/2021-A. L. GOV. Desk I Policy Fiscal I Flood Desk I Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Current law authorizes any party to protest the imposition of a fee, dedication, reservation, or other exactions imposed on a development project within 90 or 120 days of the imposition of the fee, as applicable, and specifies procedures for those protests and actions. The Mitigation Fee Act imposes the same requirements on a local agency for a new or increased fee for public facilities. Current law, for specified fees, requires any judicial action or proceeding to attack, review, set aside, void, or annul an ordinance, resolution, or motion adopting a new fee or service charge or modifying an existing fee or service charge to be commenced within 120 days of the effective date of the ordinance, resolution, or motion. Current law also provides that, if an ordinance, resolution, or motion provides for an automatic adjustment in a fee or service charge and the adjustment results in an increase in the fee or service charge, that any action to attack, review, set aside, void, or annul the increase to be commenced within 120 days of the increase. This bill would increase, for fees and service charges and for fees for specified public facilities, the time for mailing the notice of the time and place of the meeting to at least 45 days before the meeting. AB 68 (Sala s D) Affordable housing: California State Auditor's Report. Current Text: Introduced: 12/7/2020 html pf Status: 12/8/2020-From printer. May be heard in committee January 7. Location: 12/7/2020-A. PRINT DeskfPoricy I Fiscal I Flooesk PolicyFiscal Floor Conf. Enrolled Vetoed Chaptered r D 1st House 2nd House Conc. Summary: Would state the intent of the Legislature to enact legislation that would implement recommendations made in the California State Auditor's Report 2020-108, issued on November 17, 2020, relating to affordable housing. AB 71 (Rivas, Luz D) Homelessness funding: Bring California Home Act. Current Text: Amended: 1/12/2021 html pdf Status: 1/15/2021-Re-referred to Corns. on REV. & TAX. and H. & C.D. pursuant to Assembly Rule 96. Location: 1/15/2021-A. REV. & TAX Page 1/7 Packet Page 109 Deski Policy Fiscal I Floorl Deskl Policy I Fiscal I Floor Conf. Enrolled Vetoed 11rel 1st House 2nd House I Conc. Summary: Would, for taxable years beginning on or after January 1, 2022, include a taxpayer's global low -taxed income in their gross income for purposes of the Personal Income Tax Law, in modified conformity with the above -described federal provisions. The bill would exempt any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board to implement its provisions from the rulemaking provisions of the Administrative Procedure Act. AB 115 (Bloom D) Planning and zoning: commercial zoning: housing development. Current Text: Introduced: 12/18/2020 html pdf Status: 1/11/2021-Read first time. Referred to Corns. on H. & C.D. and L. GOV. Location: 1/11/2021-A. H. & C.D. Desk I Policy Fiscal I Floor Desk Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Would, notwithstanding any inconsistent provision of a city's or county's general plan, specific plan, zoning ordinance, or regulation, would require that a housing development be an authorized use on a site designated in any local agency's zoning code or maps for commercial uses if certain conditions apply. Among these conditions, the bill would require that the housing development be subject to a recorded deed restriction requiring that at least 20% of the units have an affordable housing cost or affordable rent for lower income households, as those terms are defined, and located on a site that satisfies specified criteria. AB 215 (Chiu D) Housing element. Current Text: Introduced: 1/11/2021 html pdf Status: 1/28/2021-Referred to Corns. on H. & C.D. and L. GOV. Location: 1/28/2021-A. H. & C.D. Desk I Policy Fiscal I Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. That law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. That law also requires HCD to notify a city, county, or city and county, and authorizes HCD to notify the office of the Attorney General, that the city, county, or city and county is in violation of state law if HCD finds that the housing element or an amendment to the housing element does not substantially comply with specified provisions of the Planning and Zoning Law, or that the local government has taken action or failed to act in violation of specified provisions of Iaw.This bill would add the Housing Crisis Act of 2019 to those specified provisions of law. AB 244 (Rubio, Blanca D) Affordable housing cost study: housing plan addendum. Current Text: Introduced: 1/13/2021 html pdf Status: 1/28/202 1 -Referred to Com. on H. & C.D. Location: 1/28/2021-A. H. & C.D. Deski Policy Fiscal I Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Would require the California Tax Credit Allocation Committee, the Department of Housing and Community Development, the California Housing Finance Agency, and the California Debt Limit Allocation Committee to conduct an affordable housing cost study that measures the factors that influence the cost of building affordable housing, breaks down total development costs for affordable housing, and enables the state to maximize resources allocated for affordable housing. AB 328 (Chiu D) Reentry Housing Program. Current Text: Introduced: 1/26/2021 html pdf Status: 2/12/2021-Referred to Com. on H. & C.D. Location: 2/12/2021-A. H. & C.D. I Desk I Policy I Fiscal I Floor I Desk I Policy I Fiscal I Floor l Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Would establish the Reentry Housing Program. The bill would require the Department of Housing and Community Development to, on or before July 1, 2022, take specified actions to, upon appropriation by the Legislature, provide grants to counties and continuums of care, as defined, for evidence -based housing and housing -based services interventions to allow people with recent histories of incarceration to exit homelessness and remain stably housed. AB 345 (Quirk -Silva D) Accessory dwelling units: separate conveyance. Current Text: Introduced: 1/28/2021 htmi pdf Page 2/7 Packet Page 110 Status: 2/12/2021-Referred to Corns. on H. & C.D. and L. GOV. Item 13 Location: 2/12/2021-A. H. & C.D. Desk I Policy] Fiscal I Floor Desk I Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd H I Conc. Summary: The Planning and Zoning Law authorizes a local agency to provide, by ordinance, for the creation of accessory dwelling units in single-family and multifamily residential zones and requires a local agency that has not adopted an ordinance to ministerially approve an application for an accessory dwelling unit, and sets forth required ordinance standards, including that the ordinance prohibit the sale or conveyance of the accessory dwelling unit separately from the primary residence. Current law, notwithstanding the prohibition described above, authorizes a local agency to, by ordinance, allow an accessory dwelling unit to be sold or conveyed separately from the primary residence to a qualified buyer if certain conditions are met. This bill would require each local agency to, by ordinance, allow an accessory dwelling unit to be sold or conveyed separately from the primary residence to a qualified buyer if certain conditions are met. The bill would remove the requirements that the property be held pursuant to a recorded tenancy in common agreement and that the agreement allocate to each qualified buyer an undivided, unequal interest in the property. The bill would instead require the property be held pursuant to a recorded contract that includes specified provisions. AB 357 (Kamlager D) Affordable housing. Current Text: Introduced: 2/1/2021 html pdf Status: 2/2/2021-From printer. May be heard in committee March 4. Location: 2/1/2021-A. PRINT Deski Policyl Fiscal I Floorl Deski Policyl Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House I 2nd House 11 Conc. Summary: Current law, the Planning and Zoning Law, requires each city, county, and city and county to prepare and adopt a general plan that contains certain mandatory elements, including a housing element.This bill would declare the intent of the Legislature to enact legislation that would address the need to build more affordable housing units. AB 387 (Lee D) Social Housing Act of 2021. Current Text: Introduced: 2/2/2021 html pdf Status: 2/3/2021-From printer. May be heard in committee March 5. Location: 2/2/2021-A. PRINT Desk I Policy I Fiscal I Floorl Desk I Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Would declare the intent of the Legislature to subsequently amend this bill to include provisions that would enact the Social Housing Act of 2021 to establish the California Housing Authority for the purpose of developing mixed -income rental and limited equity homeownership housing and mixed -use developments to address the shortage of affordable homes for low and moderate -income households. ACA 1 (Aguiar-Curry D) Local government financing: affordable housing and public infrastructure: voter approval. Current Text: Introduced: 12/7/2020 html pdf Status: 12/8/2020-From printer. May be heard in committee January 7. Location: 12/7/2020-A. PRINT Desk I Policy I Fiscal I Floor I Desk I Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: The California Constitution prohibits the ad valorem tax rate on real property from exceeding 1% of the full cash value of the property, subject to certain exceptions. This measure would create an additional exception to the 1% limit that would authorize a city, county, city and county, or special district to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, or permanent supportive housing, or the acquisition or lease of real property for those purposes, if the proposition proposing that tax is approved by 55% of the voters of the city, county, or city and county, as applicable, and the proposition includes specified accountability requirements. SB 3 (Caballero D) Tenancy: COVID-19 Current Text: Introduced: 12/7/2020 html pdf Status: 1/28/2021-Referred to Com. on IUD. Location: 1/28/2021-S. IUD. Desk I Policy Fiscal I Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: The COVID-19 Tenant Relief Act of 2020 establishes certain procedural requirements and Page 3/7 Packet Page 111 limitations on evictions for nonpayment of rent due to COVID-19 rental debt, as ch#� E43ing law defines COVID-19 rental debt as unpaid rent or any other unpaid financial obligafion of -a tenant that came due during the covered time period, defined as the period between March 1, 2020, and January 31, 2021. The act also requires a notice that demands payment of rent that came due during the transition time period, defined as the period between September 30, 2020, and January 31, 2021, to comply with additional specified requirements. This bill would extend the covered time period and transition time period for purposes of the act to March 31, 2021. SB 5 (Atkins D) Housing: bond act. Current Text: Introduced: 12/7/2020 html pf Status: 1/28/2021-Referred to Com. on RLS. Location: 12/7/2020-S. RLS. Deski Policy Fiscal I Flood Deski Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House I 2nd House I Conc. Summary: Would state the intent of the Legislature to enact legislation that would authorize the issuance of bonds and would require the proceeds from the sale of those bonds to be used to finance housing -related programs that serve the homeless and extremely low income and very low income Californians. SB 6 (Caballero D) Local planning: housing: commercial zones. Current Text: Introduced: 12/7/2020 html pf Status: 1/28/2021-Referred to Corns. on GOV. & F., HOUSING, and IUD. Referral to Com. on JUD. rescinded because of the limitations placed on committee hearings due to ongoing health and safety risks of the COVID-19 virus. Location: 1/28/2021-5. GOV. & F. Desk I Policy Fiscal I Floor Desk PolicyFiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House 11 Conc. Summary: The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. This bill, the Neighborhood Homes Act, would deem a housing development project, as defined, an allowable use on a neighborhood lot, which is defined as a parcel within an office or retail commercial zone that is not adjacent to an industrial use. The bill would require the density for a housing development under these provisions to meet or exceed the density deemed appropriate to accommodate housing for lower income households according to the type of local jurisdiction, including a density of at least 20 units per acre for a suburban jurisdiction. SB 7 (Atkins D) Environmental quality: Jobs and Economic Improvement Through Environmental Leadership Act of 2021. Current Text: Amended: 2/18/2021 html pdf Status: 2/25/2021-From committee: Do pass. (Ayes 6. Noes 0.) (February 25). Read second time. Ordered to third reading. Location: 2/25/2021-5. THIRD READING Desk I Policy Fiscal I Floor Desk I Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Calendar: 3/1/2021 #12 SENATE SENATE BILLS -THIRD READING FILE Summary: Would enact the Jobs and Economic Improvement Through Environmental Leadership Act of 2021, which would reenact the former leadership act, with certain changes, and would authorize the Governor, until January 1, 2024, to certify projects that meet specified requirements for streamlining benefits related to CEQA. The bill would additionally include housing development projects, as defined, meeting certain conditions as projects eligible for certification. The bill would, except for those housing development projects, require the quantification and mitigation of the impacts of a project from the emissions of greenhouse gases, as provided. The bill would revise and recast the labor -related requirements for projects undertaken by both public agencies and private entities. The bill would provide that the Governor is authorized to certify a project before the lead agency certifies the final EIR for the project. SB 8 (Skinner D) Density Bonus Law. Current Text: Introduced: 12/7/2020 html pdf Status: 1/28/2021-Referred to Com. on RLS. Location: 12/7/2020-5. RLS. Desk I Policy Fiscal I Floorl Desk I Policy I Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House I 2nd House lConc . Summary: Would make a nonsubstantive change to the definition of "development standard" for purposes of the Density Bonus Law. Page 4/7 Packet Page 112 SB 9 (Atkins D) Housing development: approvals. Current Text: Introduced: 12/7/2020 html pdf Status: 2/24/2021-Set for hearing March 18. Location: 1/28/2021-S. HOUSING Item 13 Desk I Policy Fiscal I Floorl Desk I Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House I 2nd House Conc. Calendar: 3/18/2021 Upon adjournment of Agriculture Committee - John L. Burton Hearing Room (4203) SENATE HOUSING, WIENER, Chair Summary: Would require a proposed housing development containing 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements, including, but not limited to, that the proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls, except as provided, and that the development is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. SB 10 (Wiener D) Planning and zoning: housing development: density. Current Text: Amended: 2/24/2021 html pdf Status: 2/24/2021-Set for hearing March 18. From committee with author's amendments. Read second time and amended. Re -referred to Com. on HOUSING. Location: 1/28/2021-S. HOUSING Desk Polic I Fiscal I Floorl Deski Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Calendar: 3/18/2021 Upon adjournment of Agriculture Committee - John L. Burton Hearing Room (4203) SENATE HOUSING, WIENER, Chair Summary: Would, notwithstanding any local restrictions on adopting zoning ordinances, authorize a local government to pass an ordinance to zone any parcel for up to 10 units of residential density per parcel, at a height specified in the ordinance, if the parcel is located in a transit -rich area, a jobs -rich area, or an urban infill site, as those terms are defined. In this regard, the bill would require the Department of Housing and Community Development, in consultation with the Office of Planning and Research, to determine jobs -rich areas and publish a map of those areas every 5 years, commencing January 1, 2023, based on specified criteria. The bill would specify that an ordinance adopted under these provisions, and any resolution adopted to amend the jurisdiction's General Plan to be consistent with that ordinance, is not a project for purposes of the California Environmental Quality Act. SB 15 (Portantino D) Housing development: incentives: rezoning of idle retail sites. Current Text: Introduced: 12/7/2020 html pdf Status: 2/24/2021-Set for hearing March 18. Location: 1/28/2021-5. HOUSING Desk I Policy] Fiscal I Floor Desk I Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd H 11 Conc. Calendar: 3/18/2021 Upon adjournment of Agriculture Committee - John L. Burton Hearing Room (4203) SENATE HOUSING, WIENER, Chair Summary: Current law establishes, among other housing programs, the Workforce Housing Reward Program, which requires the Department of Housing and Community Development to make local assistance grants to cities, counties, and cities and counties that provide land use approval to housing developments that are affordable to very low and low-income households. This bill, upon appropriation by the Legislature in the annual Budget Act or other statute, would require the department to administer a program to provide incentives in the form of grants allocated as provided to local governments that rezone idle sites used for a big box retailer or a commercial shopping center to instead allow the development of workforce housing SB 55 (Stern D) Very high fire hazard severity zone: state responsibility area: development prohibition. Current Text: Introduced: 12/7/2020 html pdf Status: 2/3/202 1 -Referred to Com. on RLS. Location: 12/7/2020-S. RLS. Desk I Policy Fiscal I Floor Desk Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: Would, in furtherance of specified state housing production and wildfire mitigation goals, prohibit the creation or approval of a new development, as defined, in a very high fire hazard severity zone or a state responsibility area. By imposing new duties on local governments with respect to the approval of new developments in very high fire hazard severity zones and state responsibility areas, this bill would impose a state -mandated local program. Page 5/7 Packet Page 113 SB 234 (Wiener D) Transition Aged Youth Housing Program. Item 13 Current Text: Introduced: 1/19/2021 html pdf Status: 2/23/2021-Set for hearing March 9. Location: 1/28/2021-5. HUM. S. Desk I Policy Fiscal I Flood Desk I Policy Fiscal I Floor Conf. Enrolled Vetoed Chaptered 1st House I 2nd H 11 Conc. Calendar: 3/9/2021 1:30 p.m. - John L. Burton Hearing Room (4203) SENATE HUMAN SERVICES, HURTADO, Chair Summary: Would establish the Transition Aged Youth Housing Program for the purpose of creating housing for transition aged youth under 26 years of age, who have been removed from their homes, are experiencing homelessness unaccompanied by a parent or legal guardian, or are under the jurisdiction of a court, as specified, and would require the council to develop, implement, and administer the program. SB 290 (Skinner D) Density Bonus Law: qualifications for incentives or concessions: student housing for lower income students: moderate -income persons and families: local government constraints. Current Text: Introduced: 2/1/2021 html Pdf Status: 2/24/2021-Set for hearing March 18. Location: 2/10/2021-5. HOUSING Deski Policy] Fiscal I Floor Desk Polic Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House 11 Conc. Calendar: 3/18/2021 Upon adjournment of Agriculture Committee - John L. Burton Hearing Room (4203) SENATE HOUSING, WIENER, Chair Summary: Current law requires the amount of a density bonus and the number of incentives or concessions a qualifying developer receives to be pursuant to a certain formula based on the total number of units in the housing development, as specified. This bill would require a unit designated to satisfy the inclusionary zoning requirements of a city or county to be included in the total number of units on which a density bonus and the number of incentives or concessions are based. The bill would require a city or county to grant one incentive or concession for a student housing development project that will include at least 20% of the total units for lower income students. SB 478 (Wiener D) Planning and Zoning Law: housing development projects. Current Text: Introduced: 2/17/2021 html pdf Status: 2/25/202 1 -Referred to Corns. on GOV. & F. and HOUSING. Location: 2/25/2021-5. GOV. & F. Deski Policy Fiscal I Floorl Desk I Policy Fiscal I Floor Conf. Enrolled Vetoed J Chaptered 1st House 2nd House Conc. Summary: The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The law also requires the Department of Housing and Community Development to notify the city, county, or city and county, and authorizes the department to notify the Attorney General, that the city, county, or city and county is in violation of state law if the department finds that the housing element or an amendment to that element, or any specified action or failure to act, does not substantially comply with the law as it pertains to housing elements or that any local government has taken an action in violation of certain housing laws. This bill would prohibit a local agency, as defined, from imposing specified standards, including a minimum lot size that exceeds an unspecified number of square feet on parcels zoned for at least 2, but not more than 4, units or a minimum lot size that exceeds an unspecified number of square feet on parcels zoned for at least 5, but not more than 10, units. SB 591 (Becker D) Senior citizens: intergenerational housing developments. Current Text: Introduced: 2/18/2021 html pdf Status: 2/22/2021-Art. IV. Sec. 8(a) of the Constitution dispensed with. (Ayes 32. Noes 4.) Joint Rule 55 suspended. (Ayes 32. Noes 4.) Location: 2/18/2021-S. RLS. Deski Policyl Fiscal I Floor Desk Polic Fiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House 11 Conc. Summary: Current law requires the covenants, conditions, and restrictions or other documents or written policy of a senior citizen housing development to set forth the limitations on occupancy, residency, or use on the basis of age. Current law requires that the limitations on age require, at a minimum, that the persons commencing any occupancy of a dwelling unit include a senior citizen who intends to reside in the unit as their primary residence on a permanent basis. Current law defines ,senior citizen housing development" for these purposes as a residential development for senior citizens that has at least 35 dwelling units. Current law defines "qualifying resident" or "senior citizen" to mean a person 62 years of age or older, or 55 years of age or older in a senior citizen housing development. This bill would, among other things, permit the covenants, conditions, and restrictions to Page 6/7 Packet Page 114 permit the establishment of an intergenerational housing development that inclulftmiot3tizens along with caregivers and transition age youths. SCA 2 (Allen D) Public housing projects. Current Text: Introduced: 12/7/2020 html pf Status: 12/8/2020-From printer. May be acted upon on or after January 7. Location: 12/7/2020-S. RLS. Deskl Policy Fiscal I Floor Desk PolicylFiscal Floor Conf. Enrolled Vetoed Chaptered 1st House 2nd House Conc. Summary: The California Constitution prohibits the development, construction, or acquisition of a low - rent housing project, as defined, in any manner by any state public body until a majority of the qualified electors of the city, town, or county in which the development, construction, or acquisition of the low -rent housing project is proposed approve the project by voting in favor at an election, as specified. This measure would repeal these provisions. Total Measures: 27 Total Tracking Forms: 162 Page 7/7 Packet Page 115 Item 13 Example Objective Design Standards City Council Study Session CITY OF SANTA ROSA OBJECTIVE DESIGN STANDARDS (https://qcode.us/codes/santarosa/) 20-39.010 Purpose of Chapter This chapter establishes objective residential design standards that are sourced from the City's Design Guidelines. Typically, new residential development is required to go through the City's discretionary Design Review process, which includes review for compliance with the City's Design Guidelines. The Design Guidelines are subjective in nature and demonstrate preferences while allowing discretion and flexibility, and as such, cannot be enforced through a streamlined ministerial process. The proposed Objective Design Standards for Streamlined and Ministerial Residential Developments aim to incorporate the intent of the Santa Rosa Design Guidelines to the greatest extent possible, while complying with the intent of State legislation to facilitate and expedite the construction of housing in Santa Rosa. (Ord. 2019-018 § 2). 20-39.020 Applicability The provisions of this chapter apply to all residential projects which upon applicant request and demonstration of eligibility, qualify for streamlined and ministerial processing. (Ord. 2019-018 § 2). 20-39.030 Objective Residential Design Standards (Ord. 2019-018 § 2) Consistent with existing State law, objective standards are those that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark. Residential developments that are subject to this chapter must be consistent with each of the standards below: A. Neighborhood compatibility. 1. Residential projects located across the street from single-family neighborhoods shall orient the buildings to the street with individual entries, patio areas and landscaping facing the single-family homes. Parking lot areas and carports shall not be located along single-family neighborhood street frontages. 2. Duplexes, triplexes, and fourplexes abutting single-family neighborhoods shall include individual front doors and interior stairs (when stairs are needed). 3. When determined necessary by a noise assessment, sound walls shall include an earth berm and landscaping. Walls between buildings shall be extended to create pockets of protected common space avoiding long continuous walls for the entire length of a project site. B. Building design. Packet Page 116 Item 13 Example Objective Design Standards Page 2 1. Buildings shall carry the same theme on all elevations. For the purposes of this standard, a theme includes primary (non -accent) materials and colors. 2. Affordable units and market rate units in the same development shall be constructed of the same or similar exterior materials and details such that the units are not distinguishable. 3. Blank walls (fagades without doors, windows, landscaping treatments) shall be less than 30 feet in length along sidewalks, pedestrian walks, or publicly accessible outdoor space areas. 4. Buildings over three stories must provide a ground floor elevation that is distinctive from the upper stories by providing a material change between the first floor and upper floors along at least 75% of the building fagade with frontage upon a street, adjacent public park or public open space. 5. Trim surrounds shall be provided at all exterior window and door openings. In lieu of exterior window trim, windows can be recessed from wall plane by a minimum of three inches. 6. At least two materials shall be used on any building frontage, in addition to glazing and railings. Any one material must comprise at least 20% of the building frontage. 7. A minimum of 5/8 inch thickness is required for panel siding. Battens are required to be incorporated into the design for a board and batt appearance. C. Massing/articulation. 1. A minimum of two features such as balconies, cantilevers, dormers, bay windows, patios, individualized entries, and accent materials shall be incorporated into each project building. 2. A minimum one -foot offset is required for any wall plane that exceeds 30 feet in length. 3. Buildings over three stories tall shall have major massing breaks at least every 100 feet along any street frontage, adjacent public park, publicly accessible outdoor space, or designated open space, through the use of varying setbacks and/or building entries. Major breaks shall be a minimum of 30 inches deep and four feet wide and extend the full height of the building. 4. Buildings shall have minor massing breaks at least every 50 feet along the street frontage, through the use of varying setbacks, building entries and recesses, or structural bays. Minor breaks shall be a minimum of 12 inches deep and four feet wide and extend the full height of the building. 5. Rooflines shall be vertically articulated at least every 50 feet along the street frontage, through the use of architectural elements such as parapets, varying cornices, reveals, clerestory windows, and varying roof height and/or form. D. Outdoor/common space. 1. Each multifamily unit outside the Downtown Station Area Specific Plan boundary shall have a minimum of 40 square feet of private outdoor space directly adjacent to the unit. For the purposes of this standard, private outdoor space is defined as outdoor space that Packet Page 117 Item 13 Example Objective Design Standards Page 3 is usable and accessible only to the building residents and their visitors, but not to the general public. 2. Common useable open space is required for all multifamily projects with more than 10 units outside the Downtown Station Area Specific Plan boundary. 3. A minimum of 60% of the common usable open space shall be provided as a landscaped green area or garden, with the remaining area in hardscape. 4. Outdoor seating shall be provided at common usable open space areas and outside of laundry facilities. 5. Multifamily developments (except Senior restricted multifamily developments) outside the Downtown Station Area Specific Plan boundary exceeding 22 bedroom units shall have two outdoor areas, one for adults and one for a child play area. For the purpose of this standard, adult open space does not include play equipment, but does include tables with seating. 6. Multifamily developments (except Senior restricted multifamily developments) outside the Downtown Station Area Specific Plan boundary exceeding 100 units shall have three open space areas, one for adults, one for teenagers, and one for younger children. For the purpose of this standard, adult open space does not include play equipment, but does include tables with seating, and teenage outdoor areas include sports fields, age - appropriate park equipment, or other recreational equipment. 7. Play equipment for children under the age of five shall be included in child play areas. The play area must be visible to as many units as possible to provide casual surveillance and be separated from traffic. Benches or picnic tables for adults that are accompanying younger children shall be provided. E. Site design. 1. When dwelling units are abutting open space areas, a minimum of one window from each dwelling shall be located to overlook common area. 2. Garages and carports shall be designed to include a minimum of two of the following from the main building(s): materials, detailing, roof materials, and colors. 3. Controlled entrances to parking facilities (gates, doors, etc.) shall be located a minimum of 18 feet from the back of sidewalk, in order to accommodate one vehicle entering the facility. 4. Where bicycle parking is not visible from the street, directional signage shall be included at the main building entrance. 5. Screen all parking areas, covered and uncovered, from public street frontages. Screening may be accomplished through building placement, landscaping, a planted earth berm, planted fencing, topography, or some combination of the above. Landscaping used for screening purposes shall be no less than 15 feet wide (from the back of sidewalk or street curb to the parking lot paving, whichever is greater) and no less than four feet tall. F. Accessory elements. Packet Page 118 Item 13 Example Objective Design Standards Page 4 1. Perimeter fencing utilized along public street shall be constructed of decorative iron, pre -painted welded steel, or wood picket material. 2. The height of solid fencing between private yards and common open spaces shall be limited to four and one-half feet in height. If a six-foot fence is desired, the top 18 inches should allow for vision in and out of the yard. 3. Screen roof top equipment from visibility. The point of view for determining visibility shall be five feet above grade at a distance of 200 feet. If the roof structure does not provide this screening, include an equipment screen in the design. 4. Screen all exterior trash, recycling, and storage utility boxes, wood service poles, electric and gas meters, fire sprinkler valves and backflow preventers and transformers. 5. Refuse containers. a. Four units or less may be served by individual garbage containers. When individual garbage cans are used, they must either fit in the garage or into a special enclosure. b. When there are five units or more, provide dumpsters for garbage collection within a special enclosure. c. When dumpsters are to be used, designers shall coordinate with the refuse pickup provider to determine the size and number of dumpsters required. A rule of thumb is to allow for between 30 and 90 gallons per unit per week, depending on size of the unit. d. Shield all dumpsters within an enclosure a minimum of six feet tall. Allow adequate size to accommodate the needed dumpsters and recycling containers. All enclosures and gates should be detailed to withstand heavy use. Provide wheel stops or curbs to prevent dumpsters from banging into walls of enclosure. e. Make allowances within the enclosure for stacking recycling crates (in small projects) and recycling dumpsters (in large projects) f. Provide an opening so that pedestrians can access the dumpsters without opening the large gates. g. Provide lighting at trash enclosures for night time security and use. h. Locate dumpster enclosures so that no dwelling is closer than 20 feet (including those on abutting properties), or more than 100 feet from a residential unit. No minimum distance from dwellings is required if dumpsters are located within a fully enclosed room. G. Additional objective standards within Zoning Code. Projects subject to this chapter must comply with all other applicable objective standards within this Zoning Code including, but not limited to: 1. Development Standards as indicated in Sections 20-22.040, 20-22.050, 20-23.040, 20- 24.040, and 20-26.040, as may be amended. 2. Combining District Standards as indicated in Sections 20-28.030, 20-28.040. 20- 28.050, 20-28.060, 20-28.070, 20-28.080, 20-28.090, and 20-28.100, as may be amended. Packet Page 119 Item 13 Example Objective Design Standards Page 5 3. Landscaping Standards as indicated in Sections 20-34.040, 20-34.050, 20-34.060, and 20-34.070, as may be amended. 4. Parking and Loading Standards as indicated in Sections 20-36.030, 20-36.040, 20- 36.050, 20-36.060, 20-36.070, 20-36.080, and 20-36.090, as may be amended, unless otherwise superseded by State law. 5. Creekside Development Standards as indicated in Section 20-30.040.B.1, B.2, C, D, and E, as may be amended. 6. Outdoor Lighting Standards as indicated in Section 20-30.080, as may be amended. 7. Fences, Walls and Screening Standards as indicated in Section 20-30.060.B, C, and G, as may be amended. 8. Height Measurement and Exception Standards as indicated in Section 20-30.070, as may be amended. 9. Hillside Development Standards as indicated in Section 20-32.050, as may be amended. Packet Page 120 Item 13 C:)RACL_(=— Trial Balance Report City of San Luis Obispo Ledger City of San Luis Obispo Fund 505 Affordable Housing Fund Report Date 02/09/2021 4:23 PM Page 1 of 1 Account Description Beginning Balance USD) Debits (USD) Credits (USD) Ending Balance (USD 11001 Cash (including cash equivalents) 2,481,192.97 128,637.87 58,200.00 2,551,630.84 12007 Allowance for Doubtful Accounts -215,000.00 0.00 0.00 -215,000.00 12010 Accrued Interest 1,372,279.60 0.00 0.00 1,372,279.60 13002 Loans Receivable 6,314,429.16 0.00 0.00 6,314,429.16 17001 Interfund 0.00 134,335.00 134,335.00 0.00 21015 Deferred Inflow Other (ex: unavailable revenue -1,362,982.62 0.00 0.00 -1,362,982.62 31009 Restricted - Other -6,288,657.60 0.00 0.00 -6,288,657.60 32001 Undesignated -2,323,597.95 0.00 0.00 -2,323,597.95 33001 Budgetary Fund Balance 2,500,641.00 0.00 0.00 2,500,641.00 33002 Expenditure Budget Control -2,522,641.00 0.00 0.00 -2,522,641.00 33003 Revenue Budget Control 22,000.00 0.00 0.00 22,000.00 33004 Encumbrances 80,000.00 0.00 0.00 80,000.00 33005 Reserve for Encumbrances -80,000.00 0.00 0.00 -80,000.00 33006 Retained Earnings 22,336.44 0.00 0.00 22,336.44 44310 Miscellaneous Revenue 0.00 1 0.00 128,637.87 -128,637.87 75001 Transfers - Out 0.00 1 58,200.00 0.00 58,200.00 Total for Fund 505 Affordable Housing Fund 1 0.00 1 321,172.87 1 321,172.87 1 0.00 Adjust to remove $35,524.87 of repaid FTHB loan payoff (2975 Rockview Dr. #19); Ending Balance = $93,113 Undesignated & Adjusted Miscellaneous Revenue Ending Balance 2020-21 Commitment to PSHH & HASLO Remainder Undesignated & Adjusted Miscellaneous Revenue Ending Balance Available $2,416,710.95 ($2,335,000) $81, 710.95 Packet Page 121 7/16/2021 STUDY SESSION: HOUSING UPDATE City Council Item #13 March 16, 2021 Recommendation Receive an update on state housing legislation, the Housing Element Certification process, and the implementation of the City's housing programs. 7/16/2021 Agenda State Housing Law Update 6t" Cycle Housing Element Certification Update Housing Element Programs Implementation Update Affordable Housing Fund Pipeline Affordable Housing Projects o e oon� ono11 onn A r F:31-1rn ❑ Q ii ii it ■ LA ii ■ ■ El Li ■ ■ ir State Housing Law Update 4 4 7/16/2021 State Housing Law • More Legislation in response to State's ongoing housing crisis & COVID-19 pandemic Housing bills are annually being refined and expanded • Main Goal of CA Housing Legislation: Increase housing production and affordability 5 A 3 7/16/2021 Amendments to Entitlements, Permit, and Funding Application Streamlining (2019) SB 330 — Housing Crisis Act of 2019 and Changes to the Permit Streamlining Act & Housing Accountability Act Establishes a new Preliminary Application Process for residential housing projects statewide • Not required for housing developers to submit, but law requires jurisdictions to offer the process and review/accept applications that comply • Only 17 items jurisdictions may require to be submitted for the Preliminary Application by the applicant; once applicant turns in all 17 items, vested standards and fees are locked and the review timeline for staff begins • Anticipated provisions will help make housing easier to finance and predict through the construction process, thus ultimately accelerating production Cont. Amendments to Entitlements, Permit, and Funding Application Streamlining (2020) SB 1030 — Definition of "Deemed Complete" under the Housing Accountability Act • If an applicant does not submit a Preliminary Application, they are entitled to proceed under the standards in effect at the time they submit a complete application Applicants not required to resubmit a Preliminary Application if the number of residential units or square footage changes after submission IF change is due to density bonus or development increase in units No SB 330 Streamlining projects have been submitted to the City, but aware it must update the development review process to comply with these provisions Work item is identified as a "high priority" work program in Housing Element 0 EM 7/16/2021 0 Amendments to Entitlements, Permit, and Funding Application Streamlining AB 434 — Streamline HCD Funding Applications and Award Process • Identifies the CA Dept. of Housing and Community Development (HCD) to streamline all rental housing financing program applications into a single application and award process • HCD operates at least 9 separate programs and affordable housing developers must pull together a combination of these sources (with LIHTC apps) to fully fund developments Existing process is time-consuming, costly, and complicated • Anticipate changes to have an extreme, positive impact when jointly applying and/or partnering with affordable housing developers on funding sources Bills Removing Barriers to Boost Housing Production and Affordability AB 2345 — Planning & Zoning Density Bonuses, Annual Report, and Affordable Housing Maximum Density: increase from 35% to 50% Eligibility for 100% Affordable Projects: density bonus units be affordable, and 20% of those units can be for moderate -income households • Incentives/Concessions Thresholds: low-income threshold decrease for 2 incentives/concessions from 20% to 17%; decrease for 3 from 30% to 24% Parking: ratio decreased for 2- and 3-bedroom units in density -bonus projects so no more than 1.5 spaces per unit • City must report the total number of density bonus applications received & approved in Annual Progress Report to HCD Update threshold changes for density bonuses, concessions, and parking requirements in Zoning Regulations • Planning staff to be aware of new requirements moving forward 10 5 7/16/2021 COVID-19 Related Legislation & Tenant Protections SB 91 — COVID-19 Relief, Tenancy, and Federal Rental Assistance • Extension of AB 3088 (2019) evection protections through June 30, 2021 Established $2.6 billion in Federal relief as rental subsidies • SLO County participating in State administered CA COVID-19 Rent Relief Program Estimated about --$16.7 Million available to SLO County residents Landlords and tenants both eligible for relief subsidies • Application online portal went live at 5:00pm today: www.housing.ca.gov/covid rr • SLO County Local Partners: 5Cities Homeless Coalition & The Salvation Army of SLO County 11 cont. COVID-19 Related Legislation & Tenant Protections Useful Resources Regarding COVID-19 Relief, Tenancy, and Federal Rental Assistance: • Landlord/Tenant Eligibility and SLO County Information at RecoverSLO.orq • FAQs for SLO County Residential Tenants - San Luis Obispo Legal Assistance Foundation • COVID-19 Eviction Laws Update — San Luis Obispo Legal Assistance Foundation • CA COVID-19 Rent Relief Program — Housing is Key • SLO County COVID-19 Financial Relief Options - CAPSLO 12 M 7/16/2021 cont. COVID-19 Related Legislation & Tenant Protections AB 2782 — Change of Use and Rent Control in Mobile Home Parks • Established a 60-day noticing requirement to homeowners prior to the park management appearing before local government to obtain a change in use Replacement or relocation plan now required to be submitted to local government 60 days prior to the hearing • Entity proposing change to the park must pay displaced residents unable to obtain adequate alternative housing the market value of displaced home City to incorporate law changes into existing Mobile Home Park Conversion Ordinance 13 State Housing Law Next Steps: • Staff will continue to analyze legislation for additional impacts & monitor for amendments • Incorporate the impacts/amendments into the Municipal Code as necessary • Monitor 2021 pending housing -related legislation 14 7 7/16/2021 Housing Element Certification 15 Housing Element Certification Process HCD requires that a Housing Element be certified once it has been adopted in order for the City to be eligible for State grants. November 17, 2020 - City Council adopted the 6th Cycle Housing Element December 2020 the document was submitted and received by HCD for formal certification review. The City anticipates that HCD will certify the adopted Housing Element by March 22, 2021. 16 7/16/2021 Housing Element Certification Process Next Steps: • Staff will continue to communicate and work with HCD to obtain a certified Housing Element, hk-- 17 6t" Cycle Housing Element Programs m a 7/16/2021 6t" Cycle Housing Element Programs • The 6t" Cycle Housing Element includes 14 programs that are required to be implemented within the next 1-3 years. • Several programs are underway including: • Housing Element Program 2.15 (Flexible Density) • Housing Element Program 5.4 (Missing Middle Housing) • Housing Element Program 6.22 (Objective Design Standards) • Housing Element Program 2.13 (Update Inclusionary Housing Ordinance) 19 Flexible Density Program Housing Element Program 2.15 2020 Climate Action Plan (CAP) Connected Community Pillar 5.1 20 10 7/16/2021 Flexible Density Program Program Details • Modify Zoning Regulations to remove density maximums for units less than 600 sq. ft. • Program Area: Downtown Core & part of Upper Monterey area Flexible Density Program Residential Capacity r �" Downtown & a�� , • . _`''. Jpe�GD �e Upper Monterey: • Up to 320 — 640 small units zs P� Mid-Higuera'�� • Later program phase O6�G❑p�i'� e(c a1. Apo , k F ITY OF SHR LUIS OBISPO 22 11 7/16/2021 Flexible Density Program • Promote stable housing and economic recovery • Diversify the City's housing stock • Increase residential development closer to the Downtown • Incentivize development of smaller housing units • Develop housing units more affordable to residents 23 Flexible Density Program • Would increase the number of potential residential units allowed in any given building envelope by promoting smaller units. • Would not increase building height or building size 24 12 7/16/2021 Flexible Density Program Hypothetical Comparison 400 sf studios Standard Flexible Density Density Units Allowed: Units Available: 12 studios (6dul 11ii 30 studios Residential Area: �.. Residential Area: 4,13W x1 - 3rd 0— I Z.0W at- Z, & 7rd flow Parking: Q ..- Parking: 33 spaces required o 641 Higuera Street 27 spaces required O OBISPO 25 Flexible Density Program Next Steps: • The initial phase ordinance applicable to the Downtown and Upper Monterey areas is anticipated to be brought froward for adoption in the Fall 2021. 26 13 7/16/2021 "Missing Middle" Housing • Housing Element Program 5.4 • Evaluate and implement "missing middle" housing types (e.g. duplex, triplex, quadplex, cottages, etc.) • Increase housing options in the City within three years of adopting the Housing Element. 27 "Missing Middle" Housing Missing Middle Housing is a range of house -scale buildings with multiple units —compatible in scale � t WPWxFourpax: � Src1e-By-S�d• . Slackrxl Ocanr:l Eni3ir--Fanniv � scackM OR ;;Wjl!q coil ..3 d Missing Midle Housing r» 7 14 7/16/2021 "Missing Middle" Housing Cal Poly Design Studio Fall and winter 2020-2021 Diversity, Equity and Inclusion Neighborhood Design and Clean Energy Buildings • Financial Feasibility and Incentives • Transportation and Parking Community Outreach and Education 29 "Missing Middle" Housing - EG from Cal Poly Research Laguna LaKe Neignpornooa Madonna Road Foothill Neighborhood Fourplex (2 bed) Fredericks St Fourplex (2 bed) 30 15 7/16/2021 "Missing Middle" Housing Next Steps: • Draft ordinances using information from the Cal Poly Studio • Scope appropriate geographic locations • Ministerially allow two-four additional units on residential properties that meet missing middle parameters and architectural and design • Start community engagement in the fall of 2021 31 Objective Design Standards Housing Element Program 6.22 • Develop Objective Design Standards that will apply to eligible streamlined and ministerial residential development projects. • Eligible projects are those that include 20% affordable units on sites identified in the Housing Element, and those projects that qualify under SIB 35 (Streamlined Affordable Housing) and AB 2162 (Supportive Housing). • To maintain high quality design, the Objective Design Standards would largely be developed from the City's existing Community Design Guidelines. 32 16 7/16/2021 Objective Design Standards Next Steps: • Staff will begin work on draft Objective Design Standards based on the Community Design Guidelines with a goal of adopting the Standards by the end of 2021. 33 Inclusionary Housing Ordinance (IHO) Update • Housing Element Program 2.13 • Update in alignment with findings and recommendations of the 2020 Affordable Housing Nexus Study • Feasibility Analysis will be completed by the summer; full analysis to begin Fall 2021 Table 5- Progress Towards Meeting 61^ Cycle Quantified Objectives (1/1/19 - 12/31/28) OF SHIl, LEAS OBISPO 34 17 7/16/2021 35 Affordable Housing Fund Status and Pipeline Affordable Housing Projects I 1 r 11 1 r I 910 r 11 ANN !r !1 1■1 ��.qq��1'- !!- !! 35 Affordable Housing Fund Status Committed Balance: $1,035,000 • $700,000 for Tiburon Place (PSHH) • $335,000 for Toscano Apartments (HASLO) Uncommitted Balance: $81,711 available First-time Homebuyer Balance: $200,000+ available V 36 36 IM 7/16/2021 Pipeline Affordable Housing Projects Broad Street Place (3720 Extremely Low, Very Low, 40 Broad) Low Tiburon Place (3250 Extremely Low, Very Low, 68 Bullock) Low Toscano Apartments (3065 Extremely Low, Very Low, 38 Lucca) Low San Luis Ranch Very -Low, Low, Moderate, 48 "Workforce" Avila Ranch Low, Moderate, IF "Workforce"� Total Pipeline 290 OF SHIR LUIS OBISPO 37 Inventory of "At -Risk" Affordable Units Adriance Court Low and Moderate Income, Supportive 9 Housing Anderson Hotel Very Low Income, Elderly, Disabled 68 Poinsettia Street Low Income 20 Apartments Total At -Risk Assisted Units 97 Potential Financing Resources to Utilize for Preservation: • City Affordable Housing Fund Assistance • Countywide Housing Trust Fund • Urban County CDBG Funds (City & County funds) • Urban County HOME Investment Partnership funds (HOME Program) • Low -Income Housing Tax Credits and Historic Housing Tax Credits km 19 7/16/2021 G-, . Y --0.Y Receive an update on state housing legislation, the Housing Element Certification process, and the implementation of the City's housing programs. 20