Loading...
HomeMy WebLinkAbout01/27-29/2004, PH1 - DRAFT HOUSING ELEMENT UPDATE I counciMminsD� 1_27.04 j acEnba nEpont CITY OF SAN LUIS OBISPO FROM: John Mandeville, Director of Community De 1 p n Prepared By: Jeff Hook, Associate Plann SUBJECT: DRAFT HOUSING ELEMENT UPDATE CAO RECOMMENDATION A. January 27, 2004: Review the Planning Commission recommended Draft Housing Element Update (GPA 33-02) focusing on Chapter 3, provide direction to staff on necessary changes or additions, and continue the item to the January 29, 2004 special Council meeting. B. January 29, 2004: Review remaining issues with the Planning Commission recommended Draft Housing Element Update and Initial Environmental Study (ER 33-02), provide direction to staff and continue the item to the February 24, 2004 special Council meeting, with a goal of taking final action at that time. REPORT-IN-BRIEF Updating the General Plan Housing Element is a Major Council Goal. It is a key step in the City's efforts to expand affordable housing opportunities and is required by State law. Once adopted, the 2004 Housing Element will replace the.current Housing Element adopted in 1994, and guide City housing actions through at least June 30, 2009. The Planning Commission has referred the Negative Declaration of environmental impact and an updated Draft Housing Element to Council for final action, as required by State law. This version includes changes made by the Commission since the preliminary Draft was issued last August. The changes include recommendations l y the Housing Element Update Task Force (HEUTF), and address comments from citizens, businesses, neighborhood groups, environmental groups, other advisory bodies, and staff. The HEUTF final report is included in Appendix G of the Draft Housing Element. Once adopted, Chapters 1-4 of the Draft will comprise the Housing Element, with the Appendices to be available as a separate Housing Element supplement. Chapter 3 is the policy section of the document and as such, has been the focus of community interest and Planning Commission work. At the first of three planned meetings on the Draft, staff suggests Council focus its review on the goals, policies and programs in Chapter 3 by reviewing a special "legislative draft" version, Attachment 1, showing changes made from the current Housing Element. If the Council can complete its initial review of the Draft Element at the January 29`h meeting, staff can prepare a final draft document for adoption at the February 24`h special Council meeting. The State deadline for housing Element adoption was December 31, 2003. State Draft Housing Element Update Page 2 officials have acknowledged our hearing schedule and advised staff that the timing for adoption is reasonable given the City's progress to date. DISCUSSION Overview The General Plan Housing Element is the City's blueprint for housing development. It contains a description of housing demand in the City as well as goals and .strategies for meeting this demand. The Housing Element is being updated now for several reasons. State law prescribes that an update to our current Housing Element be prepared. In addition, real estate values have increased dramatically since the adoption of the current Element in 1994. The cost of housing has far outpaced the ability of most people living and working in San Luis Obispo to afford it. A community assessment of this situation and potential remedies is needed. Finally, an updated housing element that is certified by the State will allow the City to compete for millions of dollars in State housing grants and other forms of housing assistance for which we are not now eligible, since the City's Housing Element is not State certified. Updating the 1994 Housing Element was identified as part of the Major City Goals in the 2001- 2003 Financial Plan. During that fiscal period, staff started preparing the data for the update and worked with the San Luis Obispo Council of Governments and the State to determine the City's "fair share" of housing production. The current 2003-05 Financial Plan again identifies the Housing Element Update as a Major City Goal. A draft update has been prepared and reviewed .by the Planning Commission, with input from the Council-appointed Housing Element Update Task Force. The "Council Hearing Draft" is the third version of the Draft Housing Element Update. The preliminary Draft was issued in August 2003. A "Planning Commission Draft" was endorsed and forwarded by the City Planning Commission at its December 17th meeting with a few additional changes and the recommendation that Council: 1) Approve a Negative Declaration of environmental impact, and 2) Approve the 2004 Council Hearing Draft Housing Element Update. This action followed approximately four months of Planning Commission review including eight public hearings, detailed discussions of housing issues by the Council-appointed Housing Element Update Task Force, and extensive public testimony. The chairs of the Planning Commission and Task Force will be present on January 27 to comment directly to the Council. This has been,by far, the most detailed, inclusive review process ever conducted by the City for a Housing Element update. The process reflects Council's intent to involve a broad range of community views, and to craft an element that can help the City meet a broad range of housing needs and achieve State certification. The Architectural Review Commission and Cultural Heritage Committee reviewed the Draft Element and their suggestions have been incorporated. About 100 community stakeholders, including neighborhood, environmental, business, Downtown, and development interests, have been informed of and participated in the update process. � -a Draft Housing Element Update Page 3 What's New in the Draft Housing Element In 2004, San Luis Obispo faces a more challenging housing market than the one that shaped the previous Housing Element. Higher housing costs and the State's economic recession have made it more difficult for many households to meet their housing needs today than in the mid-1990s. Consequently, San Luis Obispo's recommended housing strategy has expanded to meet those needs by: 1. Providing incentives to encourage developers to build more affordable compact rental and ownership housing. 2. Initiating rezoning of several areas suitable for higher density, infill housing. 3. Establishing a "First-time Homebuyers Program" to assist low- and moderate-income households in purchasing a home. 4. Using a combination of State and Federal grants,affordable housing funds, density bonuses and other incentives to accommodate planning for 4,087 dwellings during the period from January 1, 2001 to July 1,2008. 5. Amending the City's Affordable Housing Standards to lower rent levels for dwellings intended to be affordable for moderate-income households and individuals. 6. Using Section 108 Federal guaranteed loan funds and other funding sources to initiate development of a major downtown mixed-use project with both affordable and market-rate housing. 7. Requiring most new multi-story buildings in the Downtown Core to provide housing above the ground floor. 8. Providing special incentives to encourage downtown residential development, and instituting more flexible parking requirements for specified housing developments where alternative parking/transportation strategies exist. 9. Seeking new funding sources to help defray City development review and impact fees for developers of very low-, low-and moderate-income housing. 10.Exempting housing affordable to moderate income households, and housing in the Downtown Core, from Residential Growth Management Regulations. 11. Reducing obstacles to the production of small residential projects by exempting the construction, remodeling or relocation of most developments of four dwellings or less from Architectural Review Commission review. 12. Preserving housing in the Downtown Planning Area. 13.Amending Inclusionary Housing Requirements to provide incentives for compact, higher-density housing and to increase support for affordable housing by new commercial development. The recommended Draft sets new, stronger housing goals in response to the urgent need for affordable housing and community calls for action. It builds upon housing incentives and � - 3 1 Draft Housing Element Update Page 4 requirements in the current Housing Element to increase production. of both affordable and market-rate housing over the next four and a half years. Like most small cities with only limited public funds for housing, the City has relied on the private sector to meet a substantial portion of its affordable housing needs. Increasingly, local governments are finding it necessary to assist developers if adequate housing is to be built at prices that citizens can afford, and most effective housing programs involve cooperative public/private efforts. Accomplishing even a portion of the City's housing objectives will require the City to take a more active role in planning, funding and promoting affordable housing than has been its practice. The recommend Draft Element will be a key first step in fulfilling that role. Planning Commission Action The "City Council Hearing Draft" incorporates many changes from previous drafts issued on August 17, 2003 and December 17, 2003. In response to the Housing Element Update Task Force (HEUTF) recommendations and public comments, the Commission significantly revised the Draft by adding, deleting, and modifying policies and programs. The attached Chapter 3 Legislative Draft shows the Commission's proposed changes compared with current Housing Element policies. Overall, the Commission's recommended changes broaden the range of incentives for affordable housing development, and provide more specific guidance on the city housing objectives, particularly with regard to flexible development incentives and sustainable site, house and neighborhood design. Dousing Element Update Task Force The 17-member, ad-hoc Housing Element Update Task Force met from January to August 2003. The Council-appointed Task Force members represented a wide range of community perspectives, including housing consumers, business, neighborhood, environment, social services, Cuesta College and Cal Poly. Task Force members reviewed current Housing Element policies and developed a report which includes numerous recommendations for new or revised policies and programs to help address housing needs. The HEUTF Report is included as Appendix G in the Draft Housing Element. The HEUTF report was forwarded to the Planning Commission. During its deliberations, the Commission reviewed the Task Force'.s recommendations and comments in detail. In response to the Task Force recommendations and public comments, the Commission significantly revised the Preliminary Draft Housing Element by adding, deleting, and modifying policies and programs. The two issues where the HEUTF and Planning Commission disagreed are specifically noted as text boxes in Attachment 1 — the legislative draft of Chapter 3. On the whole, however, the final Commission recommendation reflects the official Task Force positions at a high level. State Review The California Department of Housing and Community Development (HCD) reviews housing elements for conformance with State housing law. Staff has received HCD comments on the Draft Housing Element, and most comments were generally favorable. Assuming State comments and requirements do not change markedly, it appears promising that the City will be i `-C i Draft Housing Element Update Page 5 able to satisfy HCD concerns and achieve certification based on the structure and content of the Draft Housing Element. Once the Draft Housing Element is adopted, staff will incorporate any changes into a final Housing Element, along with graphics and all necessary attachments, and forward the adopted Element for HCD review. HCD then has 90 days to review the Element and certify the element or respond with additional comments. Staff will continue to work with HCD to achieve certification. This may include providing additional information or clarifying adopted policies and programs. Previous Council Action and Other Key Issues In November 2002, Council created a 17-member Housing Element Update Task Force to provide a broad perspective on housing issues and contribute new program ideas. Individual Task Force members were appointed to the ad-hoc advisory body in January 2003. In January 2003, Council provided direction to the San Luis Obispo Council of Governments (SLOCOG) regarding the City's Regional Housing Need Allocation (RHNA). Council took several actions and forwarded these to SLOCOG: 1) endorsed a City housing need of 5,117 dwellings, 2) endorsed a proposed shift of 2,000 above moderate income housing units from the cities to the unincorporated County, further reducing the City's allocation.from 5,117 to 4,383 dwellings, 3) endorsed counting new Cal Poly University housing toward meeting the City's housing needs, and 4) directed staff to work cooperatively with SLOCOG and other agencies to reform the RHNA process and State growth policies. Council also directed staff to work with the Housing Element Update Task Force and the Planning Commission to prepare a housing element that could achieve State certification based on the reduced housing need allocation and in concert with the General Plan. The Draft Housing Element Update follows these directives. In early 2003, Council appropriated $120,000 for EIR preparation and $35,000 for a fiscal impact analysis as mid-year program changes. Based on an initial environmental study and .scoping meeting held in August 2003, the Planning Commission determined an EIR was not needed and that the initial environmental study adequately addressed potential environmental effects. The Commission recommended approval of the initial environmental study at its December 17, 2003 meeting. This recommendation is further discussed on pages 8 and 9. Funding for economic studies was included to address possible fiscal impacts of meeting substantially higher RHNA numbers, an expanded City fee waiver program for affordable housing, and to evaluate the potential economic effects of an expanded Inclusionary Housing Requirements program. As noted above, the final RHNA numbers were reduced significantly from the original SLOCOG estimates. Based on a preliminary fiscal study prepared by the Finance Director, the Commission modified policies in the Draft Element to avoid fiscal impacts and to seek grant funding to assist with City fee waivers or reductions for affordable housing. The City's economic consultant, Mundie and Associates, is evaluating the economic effects of the proposed Inclusionary Housing Requirements. Preliminary study results are expected by mid-January. I , Draft Housing Element Update Page 6 It is not recommended that the City proceed with a Housing Element fiscal impact analysis. Preparation of such an analysis is discretionary on the City's part. It is unlikely the updated Housing Element will result in significant change in fiscal impacts from the current element; and given other priorities in achieving the City's housing goals, it is unlikely that adverse fiscal impacts alone would guide housing decisions. Staff recommends the Council consider fiscal impacts of the next General Plan Land Use Element (LUE) update. The LUE was last updated in 1994 and will likely need updating within a two to five-year timeframe. As part of the Mid-Year Budget Review (scheduled for Council consideration on February 17, 2004), staff will recommend the Council formally "un-budget" the balances remaining for the preparation of an EIR and a fiscal impact analysis. Council Review Due to State requirements, housing elements are often lengthy. The Housing Element is both a policy document and a community reference on housing and demographics. While Council's review may include the entire document, staff recommends Council focus mainly on Chapter 3 — Goals, Policies and Programs. This is the core of the Housing Element and is the main part of. the document that will guide housing decisions. The Housing Element is a policy and program "rich" document. It is, however, generally not necessary or desirable to include highly detailed program implementation measures. . Most programs will require some type of follow-up action and return for public hearings before the Planning Commission and City Council. These actions may include General Plan, Zoning map or text amendments, new or amended ordinances regarding housing incentives and standards, development approvals, and new capital improvement projects. Consequently, most program details need not be finalized in the Housing Element. Council members are dealing primarily with policy direction, and in so doing, balance the need for clear, concise policymaking with the need for sufficient guidance in the element's text to enable implementation. Suggested Review Framework Initially, three Council meetings are planned for Housing Element consideration. To help organize Council's review, staff suggests the following outline: January 27: Review Attachment 1. This is a legislative draft showing new, modified and deleted goals, policies and programs. Council may work through the list item-by- item, identifying concerns and providing direction on additional information or changes needed. Alternatively, Council may choose to focus on the "special topics" listed below, and discuss only those policies and programs requested by individual Council members. January 29: Review items in Chapter 3 not covered on January 27, Chapters 1, 2, and 4, the environmental determination, and Appendices; provide direction to staff on revisions, as appropriate.. February 24: Review Council changes to Draft, if any; take final action on the environmental determination and Final Council Hearing Draft. Draft Housing Element Update Page 7 Special Topics Commissioners recommended that some existing housing policies be retained as is or with only minor changes. There were, however, new policies and programs added that entailed considerable discussion and in some cases, controversy. These are described below. Staff will be prepared to discuss these in more detail at the meeting. 1. Rental Inspection Program, 1.3.3. Calls for the City to enact a Rental Inspection Program to ensure that rental properties are properly maintained and comply with building and zoning codes. Details of how the program might operate and be funded would be determined at future implementation hearings. 2. Housing Affordability Term, 2.2.3. Extends the required term of enforceably restricted; affordable housing units from 30 years to "the longest period allowed under State law", with shorter periods allowed for shared equity and housing rehabilitation programs. 3. Inclusionary Housing Requirement, 2.3.1. The requirements have been modified to: 1) provide incentives for the construction of more compact, higher-density housing by applying a "sliding scale" for developments of 20 or more dwellings, 2) to shift additional responsibility to commercial development to provide affordable housing by increasing the in-lieu fees from two percent to five percent, and 3) to increase the in-lieu fee for residential developments in expansion areas to more closely reflect actual costs of building affordable housing. The inclusionary requirement for 5-19 dwellings would not change, and inclusionary requirements for developments of 20 or more dwellings would be reduced or eliminated for compact housing, and equal to or increased beyond the base requirement for larger, low-density housing. 4. Alternative Funding Assistance for City Fee Waivers for Affordable Housing, 23.6 and 23.7. These programs maintain existing city fee waivers and financial incentive's for very-low and low-income affordable housing, and call for the City to pursue alternative grant funding sources to enable the expansion of such incentives and maintain necessary funding for city services to new and existing residents. 5. No Net Housing Loss, 3.3.5. The changes would monitor demolitions in the Downtown Core (C-D zone) and the Downtown Planning Area outside the Core area, to ensure the number of dwellings removed does not exceed the number built. Requirements to retain housing would be triggered only when the number of dwellings removed exceeded the number of dwellings built, starting with a baseline date of when the Housing Element is adopted. This approach would apply on an area wide basis, allowing greater development flexibility. 6. Fair Housing, 4.2.4. This policy explicitly states the City will promote equal housing opportunities for all persons, as required by State law. Staff added this policy to meet State Housing and Community Development Department certification requirements. 7. Housing Variety and Tenure, 5.2.4. Provides that housing developments of 20 or more units should provide a variety of dwelling types, sizes and forms of tenure (ownership or rental). �^ I Draft Housing Element Update Page 8 8. Housing and Mixed-use Incentives, 6.2.3. Expands the range of development incentives to encourage housing in the Downtown Core, particularly in mixed-use developments. Incentives could include .flexible density, use, height, or parking provisions, streamlined development . review or construction permit processing. 9. Open Space and Affordable Housing, 6.2.6. Relax open space requirements in new developments in expansion areas in return for affordable housing, provided such open space is not specifically intended for protecting hillsides, creeks, or wetlands. 10. Flexible Zoning and Subdivision Standards, 63.8. Adopts more flexible zoning and subdivision standards to apply to affordable housing or mixed uses, and expands the range of possible changes to include flexible Floor Area Ratios for a specific site, reduced lot sizes and setbacks, and increased lot coverage. 11. Balance Infill and Expansion Area Housing Development,.6.3.9. The City-should place as much emphasis on ill and densification within City limits as it does on developing housing in expansion areas. This would be done by rezoning_ residential areas to promote denser, infill housing where appropriate. 12. Increase Residential Density Limits in Downtown Core, 6.3.16. Initiate amendments to the Zoning Regulations to increase allowed residential density in the Downtown Core,(C-D zone) beyond the current 36 Density Units per Acre. 13. Encourage Manufactured Homes in Expansion Areas, 8.2.3. Includes various strategies , to promote manufactured/mobile home parks in expansion areas. 14. Sustainable Housing, Site, and Neighborhood Design, Goal 9A et. seq: Expands upon the goal in the current Housing Element, "Energy and Water Conservation"., to address "Green Building" strategies and technology. 15. Local Preference, Goal 10.1 et. seq. Revises the current Housing Element goal, "Demand Management", to remove previous policies deemed unworkable or objectionable, to emphasize affordable housing benefits for people living or working in San Luis Obispo, and to encourage Cal Poly, Cuesta College, and State institutions to address housing needs as part of any further expansion. Environmental Review Community Development Department staff prepared an initial environmental study to evaluate the potential environmental effects of the Draft Housing Element Update (ER 33-02). Based on an analysis of 17 environmental factors, the initial environmental study concluded that adoption of the Update would not result in any new, significant environmental effects not previously considered in the Final EIR for the 1994 General Plan Land Use (LUE) and Circulation Element Updates. Accordingly; the Community Development Director determined the proposed project could not have a significant effect on the environment and directed that a Negative Declaration of environmental impact be prepared. Draft Housing Element Update Page 9 On August 27, 2003, the Planning Commission held an advertised public hearing to review the project's initial environmental study to determine whether, based on the goals, policies and programs in the Draft Housing Element dated August 13, 2003, the initial study adequately addressed the project's potential environmental effects, and to conduct scoping to identify issues needing further environmental study, if needed. Based on its review of the initial study, the Commission adopted Resolution No. 5369-03 supporting the preparation of a Negative Declaration (Resolution attached). In supporting a preparation of a negative declaration, Commissioners found that the Update was consistent with the LUE and Residential Growth Management Regulations, and that potential environmental effects of the LUE had been evaluated in an Environmental Impact Report certified on August 23, 1994: Specifically, Commissioners determined that the level of residential growth to be accommodated under the Update was consistent with the LUE and Residential Growth Management-Regulations and was not likely to result in the City exceeding its buildout population or its ability toadequately serve new residents with infrastructure or public services. At its December 17, 2003 special meeting, the Commission considered the initial._environmental study and determined the initial study adequately addressed the environmental issues. The Commission recommended that Council approve the Negative Declaration: of environmental impact based on the above findings. .1994 EIR on Land Use and Circulation Element Updates In 1994, the Final EIR evaluated Draft LUE policies that anticipated a total of.up to 24,300 dwellings and a total population of up to 58,200 persons by 2022. It included 37 mitigation measures and identified nine significant adverse impacts for which the-City, Council made. findings of overriding considerations. In particular, Council noted that the LUE update could result in conversion of prime agricultural land to urban use, that various street widening projects. would be necessary, that there would be a change from rural to urban character, and that unacceptable levels of service at certain major intersections and along most.arterial streets could result. The need to accommodate a reasonable share of anticipated regional growth was cited as the primary overriding consideration. Quantified Objectives in the Draft Housing Element Update As required by State law, the Draft Housing Element Update includes Quantified Objectives showing the number of dwelling units the City will be able to accommodate in each income group during the planning period from January 1, 2001 to July 1, 2008. The Quantified Objectives anticipate the eventual of up to 4,087 new dwellings. Of these, 2,167 units are targeted for very-low and low4ncome households to help meet the City's Regional Housing Needs Allocation. Under the General Plan and Residential Growth Management Regulations, these units are exempt from the one percent per year residential growth target. The Objectives include an additional 1,178 dwelling units for Cal Poly University students, faculty and staff, to be located on State-owned land, outside city limits. These units are not subject to city land use regulation. Consequently, during the Housing Element planning period, (4,087 — 2,167- 1,178 = 742), 742 non-exempt dwelling units are expected to be developed. The resultant annual average residential growth rate during the planning period is 0.51 percent. This is within the allowed average residential growth rate of one percent per year anticipated in the General Plan. l - 9 Draft Housing Element Update Page 10 Residential Growth Management The General Plan anticipates approximately 21,360 dwellings housing about 50,450 persons by July 2008. If all of the Draft Housing Element's proposed 2,909 in-city dwellings were built, the City's total housing stock could reach up to 22,264 dwellings (including both exempt and non- exempt units) and a population of up to 50,766 by 2008. In other words, if the number of new dwellings anticipated in the Update were actually built, the City would exceed its total expected housing stock (affordable and market rate) by about 4% or 326 dwellings, and its projected 2008 population by about 0.6%, or 316 persons. This variance is within the growth range analyzed by the 1994 EIR, and is unlikely to pose significant environmental impacts. The City's ability to achieve its Quantified Objectives is contingent upon 1).the City having adequate funding to undertake the necessary capital improvements for .the expanded water conservation and groundwater programs in 2005 and 2006, 2) adding the ,water resources necessary to serve 2,276 additional households, 3) developer interest in building below-market rate housing, and 4) securing local, State or federal funding to help fund the provision of very- .low and low income housing. It is also.contingent upon private development decisions and economic factors outside,of City control. While achieving these housing production objectives is ,theoretically possible given available land resources and expected water.and sewer:capacity*, it is. _ highly unlikely this number of dwelling units will actually be produced without significant local, State or federal assistance. ALTERNATIVES State law calls for cities and the unincorporated County to update their housing:elements by the end of 2003: While the City has not met that deadline, the State Department of Housing'and: Community Development has assured staff that there is not a significant ;problem with the proposed timeframe to complete the Housing Element. Council may choose alternative review strategies, and may choose to schedule additional meetings at which to consider the Draft. It may also, but is not required to, refer the Draft back to the Planning Commission for additional changes, as appropriate. Attachment: 1. Chapter 3 —Goals, Policies, and Programs (showing Housing Element changes) 2. Planning Commission Resolution No. 5369-03 3. Initial Environmental Study(ER 33-02) 4. Advisory Body Minutes and Meeting Updates (where minutes not yet available): Planning Commission, Architectural Review Commission, Cultural Heritage Committee. Transmitted separately: -2004 Council Hearing Draft Housing Element Update (includes Housing Element Update Task Force Final Report) Draft Housing Element Update Page 11 Council Reading File: 1. Public and agency correspondence on the Housing Element Update 2. State Housing Law JAMOMI-lousing Element Update\CARL-27-04HEupdate[3].doc 1 " � 1 - Attachment 1 chaptER 3 coals, policies ana puocuams 3.10 Overview This chapter of the Housing Element includes the City's Housing Implementation Plan for the period January 2001 to July 2008. The following goals;policies and programs are based on an assessment of the City's needs, opportunities and constraints; an evaluation of its existing policies and programs; and community input from the Housing Element Update Task Force, community groups, public hearings, workshops and correspondence. 3.20 Summary of New Programs Higher housing costs, population growth, and the State's economic recession are making it far more difficult for many households to meet their housing needs today than in the mid-1990s. Consequently, San Luis Obispo's housing strategy has expanded to meet those needs by: • Exempting housing affordable to moderate income households, and housing in the Downtown Core, from Residential Growth Management Regulations. • Providing incentives to encourage developers to build more affordable compact rental and ownership housing. • Initiating rezoning of several areas suitable for higher density, infill housing. • Establishing a "First-time Homebuyers Program" to assist low-and moderate- income households in purchasing a home. • Using a combination of State and Federal grants, affordable housing funds, density bonuses and other incentives, accommodate development of 4,087 dwellings during the planning period from January 1, 2001 to July 1, 2008. • Amending the City's Affordable Housing Standards to lower rent levels for dwellings intended to be affordable for moderate-income households and individuals. • Using Section 108 Federal guaranteed loan funds and other funding sources, initiate development of a major downtown mixed-.use project with both affordable and market-rate housing. • Requiring most new multi-story buildings in the Downtown Core to provide housing above the ground floor. • Providing special incentives to encourage downtown residential development, r Chapter 3—Goals,Policies and Programs Attachment 1 and instituting more flexible parking requirements for specified housing developments where alternative parking/transportation strategies exist. • Seeking new funding sources to help defray City development review and impact fees for developers of very low-, low- and moderate-income housing. • Reducing obstacles to the production of small residential projects by exempting the construction, remodeling or relocation of most developments of four dwellings or less from Architectural Review Commission review. • Promoting mixed-use development, infill residential development, and more compact,higher density housing where appropriate. This strategy combines requirements and incentives to increase production of both affordable and market-rate housing over the next four and a.half years. Like many small cities with only limited public funds for housing, the City has relied on the private sector to meet a portion of its affordable housing needs. Increasingly, local governments are finding it necessary to assist developers if adequate housing is to be built at prices that citizens can afford. Across the U.S., it has become apparent that the most effective programs involve cooperative public/private efforts to produce affordable housing. This requires that the City take a more active role in planning, funding and promoting affordable housing than has been its.practice. This Housing Element update builds upon programs introduced. in 1994 to promote affordable housing and expands incentives for affordable housing construction. For example, using Community Development Block Grant funds, the City has established a Housing Programs Specialist position to actively support affordable housing by soliciting grants, loans, and other forms of assistance. 3.30 Goals, Policies and Programs This chapter describes the City's housing goals, policies and programs, which together form the blueprint for housing actions during the seven and one-half year period covered by this Element. Goals, policies and programs are listed in top-to-bottom order, with goals at the top and being the most general Statements, working down to programs, the most specific Statements of intent. Here is how the three levels of policy differ: ❑ Goals are the desired results that the City will attempt to reach over the long term. They are general expressions of community values or preferred end states, and therefore, are abstract in nature and are rarely fully attained. While it may not be possible to attain all goals during this Element's planning period, they will, nonetheless, be the basis for City policies and actions during this period. ❑ Policies are specific statements that will guide decision-making. Policies serve as the directives to designers, decision makers and others who will initiate or review new development projects. Some policies stand alone as directives, but others require that z r— c 3 Chapter 3—Goals,Policies,and Programs — Attachment 1 additional actions be taken. These additional actions are listed under "programs" below. Most policies have a time frame that fits within this Element's planning period. In this context, "shall" means the policy .is mandatory; "should" or "will" indicate the policy should be followed unless there are compelling or contradictory reasons to do otherwise. ❑ Programs are the core of the City's housing strategy. These include on-going programs, procedural changes, general plan changes, rezonings or other actions that help achieve housing goals. Programs translate goals and policies into actions. In the following section, new goals, policies and programs are hi .g!gjg!LteA revised policies and programs from the 1994 General Plan Housing Element are in italics, and goals policies and programs carried forward with no significant changes from the previous Housing Element are in plain text. Goals, policies and programs from the 1994 Housing Element that have been changed or deleted are shown in s#iWesas text. Related policy changes are grouped and separated from unrelated policies by asterisks***. Housing Task Force recommendations that contradict the Commission's recommendation are in ext boxes. Goal 1.1 Safety. Providing safe, decent shelter for all residents. 1.2 Policies 1.2.1 Assist those citizens unable to obtain safe shelter on their own. *** 1.2.2 Support and inform the public about fair housing laws and programs that allow equal housing access for all city residents. *** 1.2.3 Maintain a level of housing code enforcement sufficient to correct unsafe, unsanitary or illegal conditions and preserve safe housing. 1.3 Programs 1.3.1 Provide financial assistance to very-low, law- and moderate-income homeowners and renters for the -rehabilitation of approximately 45 rental housing units and 45 single-family or mobile home units using Federal, State r and local housing funds. '1. 3.7> UsingSealeeF edefeA funds, •e as CO-ammait y Deyelepment Rleek dw City will establish a housing r-ehabilitmien pfegam offer-iRg s er- eb&-& eenventional fffhmeing. Many of the City's older- Musing anits in the D 1 and D 7 zeRes pr-eyide housiag- for- these en F..e.l .. W e 3 _ I � Chapter 3—Goals,Policies,and Programs —` Attachment 1 affeEdability er-iter-ia, the City will help pr-eseEve safe, ade"ate housing fer- ### 1.3.2 As staffing and funding levels allow, continue code enforcement to expedite the removal of illegal or unsafe dwellings, to eliminate hazardous site or property conditions, and resolve chronic building safety problems. 1.21.4 As staffmg and f�ndiRg levels allew, will be ex-paFA . ### 1.3.3 Enact a Rental Inspection Program to improve the condition of the City'-. housing stock, ### 1.3.4 As funding allows, continue to support local and regional solutions to homelessness by funding the SLO Homeless Shelter and Prado Day Center for Homeless Persons. 1.28.6 The City .,ill suppeFt Wee! and runie aal. solutions to mooting needs ahomeless per-sons, and will e .i I. i with other- , 1.3.5 Create an educational campaign for owners of older residences informing them of ways to reduce the seismic hazards commonly found in such .structures, and encouraging them to undertake seismic upgrades. 1.23.13 The City will er-eate an ed a atie nal eampiign fer-owner. ef Older- msideme& upgrades. T7:3.4 The City shall u neiu suiser.ie• upgrades e,f elder dwel ifigs to r-ed no_tho risk ef bedily hum and the less of heusing in an eaFth"ake. 1Z3.14 To assistst lexh,efhe. eholeln reteet their hemes f:efn eaFthauake damage, the City will er-eat-e a finaneial assistame program feF seis ### Chapter 3—Goals,Policies,drid Programs - Attachment 1 Goal 2.1 Affordability. Accommodate affordable housing production that helps meet the City's Quantified Objectives. 2.2 Policies 2.2.1 Income Levels for Affordable Housing. For purposes of this Housing Element, affordable housing is that which is obtainable by a household with a particular income level, as further described in the City's Affordable Housing Standards. Housing affordable to Very-low, Low, and Moderate-income persons or households shall be considered "affordable housing. " Income levels are defined as follows: Very low: 50% or less of County median household income. Low: 51%to 80% of County median household income. Moderate: 81%to 120%of County median household income. Above moderate: 121%or more of County median household income. 1. affer-dable heusiRg is housing that is a&Fdable beth inkially aad.iR the long tafm to a heuseheld ...at. as ..a..l;e,aa r- i me levet lReeme levels ffe defiRed as fellows. .. Ver-y leywE GAOL_ r- loon of media. ho el.eld Az i��dGTitte: _ Q1 % •e 12007_ of median t.euseheld : .. Y'tbeve-fneder-at$: 1214 omer-e o f-...ed a...-heusehel.7 e Housing Task Force Recommendation: Create two additional income categories - Extremely Low, and Above Moderate Income (120-160% of median County income). 2.2.2 Index of Affordability. The Index of Affordability shall be whether the monthly cost of housing fits within the following limits: ❑ For very low- and low-income households, not more than 25% of monthly income. ❑ For moderate-income households, not more than 30%of monthly income. ❑ For above-moderate income households, no index. These indices may be modified or expanded if the State of California modifies or expands its definition of affordability for these income groups. 5 ILP A'In 1 r Chapter 3—Goals,Policies,-and Programs Attachment 1 2.2.3 For housing to qualify as "affordable" under the provisions of this Element, guarantees must be presented that ownership or rental housing units will remain affordable for the longest period allowed by State law, or for a shorter period under an equity-sharing or rehabilitation agreement with the City. 1.22.1 Fef: a pr-ejeet to qualify as "a&r-Elable housing" under- the pfevisions of this affeFdable a least 30 years, or- as other-wise pr-evided -by StMe , 90). 2.2.4 Encourage housing production that provides affordable housing for all financial strata of the City's population, in the proportions shown in the Regional Housing Needs Allocation, 2001 - 2008. For this Element's planning period, the proportions shall be: very low income, 34 %; low income, 19 %; moderate income, 20 %; above moderate income, 27 %. 1.22.4 Housing pi:eduetiea II provide housing a&Fdable te all fimasial stfata are found in the City's pepulatien. Per- &As element's plafwAag , , . . the pr-epeffieks shaI4 be these ef the 1990 U.S. Geftsus� very low 3.1 ,. low neeee, 18%; faeQeFateineeeae, 17%; abeve esederate ifleeme, 34 1 22 G The City should Wle stups that efieeur-age 1...,.cehelds or- living gr-e s o ffnedest 2.3 Programs 2.3.1 Amend the Inclusionary Housing Regulations to require that new residential subdivisions and residential development projects meet the inclusionary requirement by: 1) building the required affordable housing on- or off-site, 2) dedicating real property, or 3) rehabilitating units with guarantees the units remain affordable, pursuant to the Affordable Housing Standards, as shown in Tables 2 and 2A, and as further described in the Inclusionary Housing Ordinance. 6 In I Chapter 3—Goals,Policies,and Programs Attachment 1 Table 2 Inclusionary Housing Requirement Type of Development Project Residential, 5-19 Dwellings Residentia20l or Commercial more Dwe Build 3% low or 5% moderate Adjust base Build 2 ADUs per acre, but not less y a cost Affordable Dwelling Units requirement per than 1 ADU per project; E N (ADUs2), but not less than I Table 2A ADU per project; Or U o or h c pay in-lieu fee equal to 5% of pay in-lieu fee equal to 5% of c building valuation.' building valuation. 0 r Build 5% low- and 10% Build 2 ADUs per acre, but not less Qa moderate-cost ADUs, but not than 1 ADU per project; ez less than 1 ADU per project; HQ Adjust base or Qo or requirement per Table 2A pay in-lieu fee equal to 5% of e pay in-lieu fee equal to 15% of building valuation. building valuation. 'Developer may build affordable housing in the required amounts, pay in-lieu fee based on the above formula, or dedicate real property. 'Affordable Dwelling Units must meet City affordability criteria listed in Goal 1.22. 3"Building Value" shall mean the total value of all construction work for which a permit would be issued, as determined by the Chief Building Official using the Uniform Building Code. TABLE 2A Project Inclusionary Housing Requirement Density Adjustment Factor2 (Density Units/Net Average Unit Size (sq. ft.) Acre)' Up to 1,201-1,500 1,501-2000 2,001-2,500 2,501- >3,000 1,200 3,000 36 or more 0 0 .75 1 1.25 1.5 24-35.99 0 0 .75 1.25 1.25 1.5 12-23.99 0 .25 1 1.25 1.5 1.75 7-11.99 0 .5 1 1.5 1.5 1.75 <7 0 .5 1.25 1.5 1.75 2 Including allowed density bonus,where applicable. 'Multiply the total base Inclusionary Housing Requirement (either housing or in-lieu percentage) by the adjustment factor to determine requirement. Chapter 3—Goals,Policies,and Programs Attachment 1 1.22.10 The City w4l amend its regulations to require dmt new deveiepment pr-9jeet& iaePade a&F&ble housing units, with gaffafitees that they re 17.90),er- pay an in lieu fee to assist in the develepment ef affer-dable • Table 1 Type of Developmeot Pr-eje fps) ADU ger pr-ejeet; eF in city OF buildiRg Val pay in lieu fee equW to 5% e �se�iee ��1A�3 dim ! ADU . in MpamieE of Area eF pay in lieti fee eq"to 15% ef 1 -velaetiea- lwl"g valtmien k amounts,Developer- may build affbFdable heiasifig in the r-equifed pf pay in lieu fiaebased en the abeve CbFmula. 3 Affer-dable DweHing Unks fEmst meet City a&r-dability er-iter-ia listed if) Goal 1.22. 3n Bui4diag Value" shall Enean the total value of all eenstfuetion wer-k fer- whieh a pe ....ld be issued, as dere.-.. i ed by the Chief &aildiag Off ei l usi-Ing the ir.,if.,r>,t Building 2.3.2 Maintain a city housing fund to be used to develop affordable housing units and acquire land for affordable housing projects. To quay for such public assistance, the development of affordable units must include guarantees the units will remain affordable for the longest period allowed by State law. Inclusionary housing in-lieu fees will be placed into this fund. 8 Chapter 3—Goals,Policies,and Programs Attachment 1 1.22.11 The City will establish a housing tFust fund to be used to develop a&rdabl-e 2.3.3 Review existing and proposed building and planning policies regulations to determine whether there are changes possible that could assist the production of affordable housing but that do not conflict with other General Plan policies. Such periodic reviews will seek to remove regulations that are no longer needed. 122.12 The City ,ill per-iodieelly review its buRding and planning regula ions to see if -ehanges possiblethateek-assist the—pr-eduetien--e€ needed. 2.3.4 Adopt permit streamlining procedures to speed up the processing of applications and construction permits for affordable housing projects. City staff and commissions should give such projects priority in allocating work assignments, scheduling, conferences and hearings, and in preparing and issuing reports. 1.22.13 The City will adept pFeeedur-es to speed the pr-eeessiag ef applieatieffi -- eeffHnissieashould give see r—ejeets priority in aiieeating- wer4E issuing-Fepef4s. 2.3.5 Review existing and proposed building and planning policies and regulations to encourage "green building technology", and to allow construction of personalized, unconventional housing types that reduce cost andlor energy and materials consumption, provided that residential quality and safety can be maintained. T2-2.1A The Pity .ill review its building and plaFming regulations to fiFAway t allew eeatFuefien--iy owner- builder-s of perseaaiized, a^t:^ a provided that residential "ality and safety effla be 9 � 'dru Chapter 3—Goals,Policies,and Programs - Attachment 1 2.36_ Pursue alternative funding sources for the payment of City impact fees so that new dwellings that meet the City's affordable housing standards can mitigate their facility and service impacts -without adversely affecting housing affordability, 2.3.7 To the extent additional funding sources can be identified to offset impacts on the General Fund, exempt dwellings that meet the moderate income, Affordable Housing Standards from planning, building and engineering development review and permit fees, including water meter installation fee. Retain current exemptions for very-low and low-income households. 1.22.15 The City will amead its r-eguiatiens te e*empt eeFtaifi a&Fdable housing . pat 2.3.8 Help coordinate public and private sector actions to encourage the development of housing that meets the City's housing needs. 1.22.17 The City will help eeer-dinate publie seeter- and private seetef aefiefts to 2.3.9 Assist with the issuance of bonds, tax credit financing, loan underwriting or other financial tools to help develop or preserve affordable units through various programs, including, but not limited to: (1) below-market financing and (2) subsidized mortgages for very-low, low- and moderate-income persons and first-time home buyers, and (3) self-help or "sweat equity" homeowner housing. 1.22.18 The City will enable i uanee effae lgage-mvv ""J e" 2.3.10 Amend Affordable Housing Standards to modify the method for calculating maximum moderate-income rental costs, so that moderate-income rents are proportionately consistent with rental costs for very low- and low-income renters,to the extent allowed by State and Federal law. 10 Chapter 3—Goals, Policies,and Progams `-- Attachment 1 2.3.11 Amend development standards to allow second residential units ("granny Mats') on most residentially-zoned lots by right; and to allow second residential units on non-conforming lots and in planned developments without the need for a PD zoning_amendment, submit to discretionary approval and architectural review. t.3.L2 In conjunction with the Housing Authority and other local housing agencies, provide ongoing technical assistance and education to tenants, property owners and the community at large on the need_to preserve at-risk units as well as the available tools to help them do so. value,1.22.3 The City will pr-eses,e and ercpand its supply. ef affeFdable Feata4 heusing. 1.23.210 afeas, the right of fifst r-eflasal shall be e*teaded te the City development. Goal 3.1 Housing Conservation. Conserve the housing stock and prevent the loss of safe, affordable housing and the displacement of current occupants. eeeupai4s 3.2 Policies 3.2.1 Encourage the rehabilitation, remodeling or relocation of sound or rehabitable housing rather than demolition. Demolition of non-historic housing may be permitted where conservation of existing housing would preclude the achievement of other housing objectives or adopted City goals. 1.23.2 The City shall diseeumge the demelitien of sound or. Fehabilitable e*istifig 1.23.3 Sinee elder—dwells can eften be relecatedand r-ehaftishedforz - , and sinee dwellings Enay offer- spatial and Fnater-ial amenities unavailable in new dwellings, the City, in the iawest ef both eeenefay and housing iv ]I Chapter 3—Goals,Policies,and Programs Attachment 1 3.2.2 Discourage the removal or replacement of housing affordable to very low- and low-income households by higher-cost housing unless: (1) it can be demonstrated that rehabilitation of lower-cost units at risk of replacement is financially or physically infeasible, or (2) an equivalent number of new units comparable or better in affordability and amenities to those being replaced are provided, or (3) the project will correct substandard, blighted or unsafe housing; and (4) replacement will not adversely affect a designated historic resource. 1 23 2 Th Citty shell .1: hplaeement _*isti.. lower- hg by......,....,..a the �e of e .. ....st heusing Wgher. east (1) the lewer- cost unks at risk can either- be e s eaffief3veds A .,:ties to these being Fe..lase.l o e e-anted .,s paA of the ., est axxa caxxc.....^.. .., .._.,..^ .,_�_a _r___-_ �- ---^--- -- r-- -- --- new• r~-r--- ### 3.2.3 Avoid permit approvals, municipal actions or public projects that remove or adversely impact affordable housing, unless such actions are necessary to achieve General Plan objectives and no feasible alternatives exist. whieh femoveor-adver-sel3affeet e*Mag-a€ferdable heusiHg. The City pfejeet, it shall assist displarsed residents with r-eleeatien eests and provide ES 1 23 2 The City shell avoid ae ,t. el netin.ns ,� Meh o e a .,table housing � Units. 3.2.4 Encourage seismic upgrades of older dwellings to reduce the risk of bodily harm and the loss of housing in an earthquake. 3.2.5 Encourage the construction, preservation, rehabilitation and expansion of residential hotels, group homes, integrated community apartments, and other types of single-room occupancy dwellings. } 23 3 Th City shalla r th r• habil:tetien and of ra ,� expansion Fesidemial hotels and other- "es of single r-eefn eeeupaney dwellings. 12 � - �3 Chapter 3—Goals, Policies,and Programs Attachment 1 3.2.6 Preserve historic homes and other historic residential buildings, historic districts and unique or landmark neighborhood features. *** 1.23.2 The City shah diseeufage the 4imimfien of existing heusing *** 3.3 Programs 3.3.1 When the City finds affordable unit removal is necessary in connection with a municipal project, it shall help displaced residents find affordable replacement housing and assist with relocation costs. 3.3.2 When the City permits private development projects that displace affordable housing, it will require the developer to assist displaced residents find affordable local replacement housing. Such measures may include: first priority in purchasing or renting new affordable dwellings to be developed on- site, assistance with relocation costs, or other financial measures. 1.22.16 The City will revise its eendefaipAum eefwer-siea regulations to diseoufage , are *** 3.3.3 Evaluate, and where necessary, revise building, zoning and fire code requirements which discourage housing and encourage the conversion of housing to other uses. 3.3.4 Using State or Federal grant funds such as Community Development Block Grants, or other funding sources, the City will establish a housing rehabilitation program offering low-cost loans or other rehabilitation assistance to those who cannot afford or obtain conventional financing. The purposes of the program shall be to remove unsafe, unsanitary or illegal conditions, maintain safe housing, and preserve neighborhoods. *** 3.3.5 To preserve housing in the Downtown Core (C-D Zone) and the Downtown Planning Area, the City will adopt a "no net housing loss" program by amending the Downtown Housing Conversion Permit ordinance. The amendment shall ensure that within each area, the number of dwellings 13 _ Chapter 3—Goals,Policies,and Programs Attachment 1 removed shall not exceed the number of dwellings added on an area-wide basis. nHe Mt hOUSiRg less" i maintained,units either- be in the ease ef Offi-re of pw;istift e heusing, be r-eplaeed en site or- neafby. n DewRtewa" meaffi the area betifided by Highway f the railroad i 1.23.9 ldewdfy Offlee (0) zoned afeas around the De%%temca Core AFea (a& Fesidemial md r-edesignate them fer- r-esideatial use. The City she-- efflee uses, the City w4l apply a n n , require r-eplaeefaent of dwellings as a eendifien of effiee expansion OF � n less" p qeeES� 3.3.6 Identify residential properties and districts eligible for local, State or Federal listing and prepare guidelines and standards to help property owners repair, rehabilitate and improve properties_in a historically and_architecturally sensitive manner. 3.3.7 To encourage housing rehabilitation, amend the Affordable Housing Standards to allow a reduced term of affordability for rehabilitated units, to the extent allowed bytate or Federal law,,but not less than three years. 3.3.8 Establish a monitoring and early warning system to track affordable housing units at-risk of being converted to market rate housing. 1=3.11 The City will Fefeve r-egulateFy ebstaeles to ther-eleeatien--ate Fehabilitaien ef dwellings that would ether-wise be defaefished beeaus sites.- 1.23.12 In the past, .i n liiari niece rr RS and culler mstrietieas have bleeketle r-eleeated dwel ings Chapter 3—Goals, Policies,and Programs Attachment 1 ,1.23.15 To e the reser.rntion e^d Yuhabilitatien of older heesi^R_ethete City eeafem+41 use in eeAain zones. Goal 4.1 Mixed-Income Housing. Preserve and accommodate existing and new mixed-income neighborhoods and seek to prevent neighborhoods or housing types that are segregated by economic status. 4.2 Policies 4.2.1 Within newly developed neighborhoods, housing that is affordable to various economic strata should be intermixed rather than segregated into separate enclaves. The mix should be comparable to the relative percentages of very- low, low, moderate and above-moderate income households in the City's quantified objectives. ' .s�"z' Within i'vxy develeped eeighber-heads, hetsing—a€€erdablete vafieus ### 4.2.2 Include both market-rate and affordable units in apartment and residential condominium projects and intermix the types of units. Affordable units should be comparable in appearance and basic quality to market-rate units. ' 7"-2 Within apaFaneat Er- r.r� r- units,and a&F&ble uaks should net stand eut as being speeial or- k9fefier, 4.2.3 Very low-income housing developments, such as those developed by the Housing Authority of the City of San Luis Obispo or other housing providers, may be located in any zone that allows housing, and should be dispersed throughout the City rather than concentrated in one neighborhood or zone. In general, 23 dwellings should be the maximum number of very-low-income units developed on any one site. 1.24.3 Pe subsidized Yer-y le iReeme housingre eetof s eh as these develop by the City Housing Authority er- non profit e general, -29 dwellings should be ahe Rmaxifffmm number- of subsidized lvefy low ifreeffle units developed 4.2.4 In its discretionary actions, housing programs and activities, the City shall affirmatively further fair housing and promote equal housing opportunities for 15 fir " Chapter 3—Goals,Policies,and Programs — Attachment 1 persons of all economic segments of the community. 4.3 Program 4.3.1 Review new development proposals for compliance with City regulations and revise projects or establish conditions of approval as needed to implement the mixed-income policies. Goal 5.1 Housing Variety and Tenure. Provide variety in the location, type, size, tenure, and style of dwellings to accommodate the wide range of households choosing to live within the City. weemmedate the wider-ange of heuseholds desir- ng to live within the 5.2 Policies 5.2.1 Encourage the integration of appropriately scaled, special-use housing into developments or neighborhoods of conventional housing. 5.2.2 Encourage mixed-use residential/commercial projects to include live-work and work-live units where housing, offices or other commercial uses are compatible. 1.25.2 Whery heusiRg ean be eeaVatible with efflees er- ether- businesses, mixed 5.2.3 Encourage the development of housing above ground-level retail stores and offices to provide housing opportunities close to activity centers and to use land efficiently. 5.3 Te p vide housing a pefPanities elese to aei efeiendy, thete City will eneear-age iFAll hens ng above g ..A level ..et..a 5.2.4 In general, housing developments of twenty (20) or more units should provide a variety of dwelling types, sizes or forms of tenure. types,1.25.4 LaFge housing developfaeffts should provide a vafiety of dwelliag 16 I (� Chapter 3—Goals,Policies, ..d Programs Attachment 1 5.3 Program 5.3.1 Review. new developments for compliance with City regulations and revise projects or establish conditions of approval as needed to implement the housing variety and tenure policies. 4.3.1 neyiew . . development p ,.1s f cemplianee vAth rit , r- „lations and , to b'dper-seml4ed living effvir-efffaems suited to , ### Goal 6.1 .Housing Production. Construct new housing to meet the full range of community housing needs and to achieve the City's Quantified Objectives. Gefistmet new housing te fulfill the *needs ,ef, first, City , there. andseeeEW, these who wefk in the City and who would like to live 6.2- Policies 6.2.1 Consistent with the growth management portion of its Land Use Element and . the availability of adequate resources, the City will plan to accommodate up to 2,909 dwelling units between,January•2001 and July 2008. Cal Poly University intends to provide up to 1,178 housing units on State land during the planning period. • avai1..hility e f adequate the /'pity .ill ..1., to aeeeR .,te up to 4,216 dwelling unks between june 1994 aFA Iune 1999, and te Ampnd thp.-%�WeFAW Growth Management Regulations te e*efnpt the pr-eduefiefi of a-w dwellings a r-dable to very low and low mneme heasehelds 6.2.2 New commercial developments in the Downtown Core (C-D Zone) shall include housing, unless the City makes one of the following findings: ❑ Housing is likely to jeopardize the health, safety or welfare of residents or employees; ❑ The property's shape, size, topography or other physical factor makes dwellings infeasible. 17 V r 0 Chapter 3—Goals,Policies,_,d Programs - Attachment 1 6.3:Fe add to the City's residential land base, the City will emearage the pr-eduetien ef. zenes. 6.3` 2 Provide incentives to encourage additional housing in the Downtown Core particularly in mixed-use developments. Incentives may include flexibl density, use, height, or parking provisions, fee reductions, and streamlined development review and permit processing. 6.3.3 If City services must be rationed to new development, residential projects will be given priority over non-residential projects. , 6.4.2 City costs of providing services to housing development will be minimized. Other than for existing housing programs encouraging housing affordable to very-low and low income persons, the City will not make new housing more affordable by shifting costs to existing residents. §T-he easts to the City of heasing develepment will be faipiimized and equit" • distFibu*d. The City will not ..,.,Le new housing '.•, a affordable by shifting eests raring residents. The Housing Task Force recommended that costs of providing affordable housing be spread to the entire community by developing or reallocating sources of funding. 6.5.2 Relax open space requirements in Expansion Areas in return for the provision �of additional affordable housing units beyond the minimum requirements provided that such open space is not for the specific purpose of protecting geographic features like hillsides,wetlands, biological resources and creeks.. is 1 Chapter —Goals,Policies., jid Programs - Attachment 1 6.3 Programs 6.3.1 Amend the General Plan and Residential Growth Management Regulations (SLOMC 17.88) to exempt all new housing in the C-D zone, and new housing in other zones that is affordable to very low-, low- and moderate- income households, pursuant to the Affordable Housing Standards. In expansion areas, the overall number of units built must conform to the city-approved phasing plan. 1.26.7- -The City will affiend its Resideff" Growth Mamgefnent Fegulations-to eFitertia f YeFy 1.... and 1,.... : a heusehelds. 6.3.2 Amend the Zoning Regulations to allow flexible parking regulations for housing development, especially in the Downtown Planning Area, includin the possibility of reduced or no parking requirements where appropriate I limit occupancies to.persons without motor vehicles or who use I lternative trans ortation . .3.3 Amend the Parking Management program to promote housing in the Downtown Core by allowing flexible use of city parking facilities b Downtown residents, where appropriate. Such use may include requirements for parking use fees, use limitations and enforcement provisions. 1,26.9 The City will amend.its ppgulafiens te require that seme new housing-be 6.3.4 Specific plans for designated Expansion Areas shall include appropriately zoned land to meet the City's regional housing need for dwellings affordable to very low- and low-income households, including R-3 and R-4 zoning. These plans shall include sites suitable for subsidized rental housing and affordable rental and owner-occupied units. Such sites shall be integrated within neighborhoods of market-rate housing and shall be architecturally compatible with the neighborhood. 1.26.10 For,ffh�er- residential e*pamiea areas, the City,wili adopt speei plans. These plaas will inelude &uffieieat R 4 zened land te meet the City's households. These plans will inelude sites suitable for- subsidized refital heasing and affefdable rental and owner- eeeupied heitsing. Such sites shall 19 1 - au Chapter 3—Goals; Pokieb,r id Programs Attachment 1 based en the aff-erdability ef dwellings and other- publie , the same housing a&r-dabilky- 6.3.5 Specific plans should designate sufficient areas at appropriate densities to accommodate the types of dwellings that would be affordable in the percentages called for by this Element. Also, specific plans will include programs to assure that the affordable dwellings actually will be pfoduced. 60.6 Initiate amendments to the General Plan and rezone commercial, manufacturing or public facility zoned areas for residential use, to promote higher-density, infill or mixed-use housing where appropriate. For example areas to be considered for possible rezoning include, but are not limited to the I sites(shown Lin Figure 1)L- �— a} Little Italy district and portions of Broad Street comdor_ _^ b) Mid-Higuera corridor, between Fontana Avenue and Prado Road 6) 791/861 Orcutt Road fid) Both sides of Ferrini Road, between Cerro Romauldo and Felton Wayl e) 3730 South Higuera Stree 1642 Johnson Avenue and 1499 .San Luis Drive w(rezone vacant and underutilized school district propertyi Ll 030 Southwood Drive 6.3.7 Support regional efforts to establish a countywide affordable housing fund to be funded through a countywide, dedicated revenue source rather than diverting existing affordable housing trust funds. The City should manage its Affordable Housing funds generated through the Inclusionary Housing Program to assist affordable housing development in the City;-- 6.3.8_Adopt flexible zoning and subdivision standards to be applied t developments in return for the provision of affordable housing units or mixed-,' uses. Such flexible standards could include floor area ratios modified for a specific site, reduced lot sizes, reduced setback requirements, increased building heights, or increased lot coverage; and should_ allow planned 20 Chapter 3—Goals,Policies,—id Programs Attachment 1 developments of less than 1 acre where otherwise allowed 3.9 Balance City efforts to encourage residential development. by focusing much on infill. development and densification within City Limits as o I of new residential land. The City will accomplish this b considering amendments to the General Plan and Zoning. Regulations t rezone residential areas to encouraize infill and densification, when appropriate, Figure 1 Areas to be Considered for Possible Rezoning d f a. I b — .�� t � j e I 21 � - 3�- Chapter 3-Goals, Policies-mi,d Programs Attachment 1 3.10 Seek opportunities with'otherpublic agencies and public utilities to identify, assemble, develop, redevelop and recycle surplus land for housing, and t convert vacant or underutilized ublic utili or institutional buildin t housing. .3.11 Develop multi-family housing_ design standards to promote innovative attractive, and well-integrated higher-density housing. Developments tha meet these standards shall be eligible for a streamlined level of planning anc� development review. Developments that include a significant commitment t affordable housing may also be eligible to receive density bonuses, parkin reductions and other development incentives including City financi assistance. 6.3.12 Financially assist in the development of 90 new ownership or rental units affordable to very-low, low- and moderate-income households during the planning period using State; Federal and local funding sources. 6.3.1` Actively seek new revenue sources, including State, Federal and private/non I profit sources, and financing mechanisms to assist affordable housing development and first-time homebuyer assistance programs. 6.3.14 Exempt the construction;relocation,rehabilitation or remodeling of up to fouu residentialunits from Architectural Review Commission review.New multill I housing may be allowed with "Minor or Incidental" or staff leve architectural review unless the units are located on a sensitive or historicall I I site. 6.3.1.5 Promote the development or rehabilitation of housing as part of large buildings in the Downtown Core. 1.26.9 The City will afnead its r-egulatiom t8 teoir-e ,dla seme new housing be Area (as deser-ibed in the Laad-Use QemepA). PaFkiag regulations may-be whie 6.3.1.6 Initiate amendments to theZoning Regulations to increase residential density limits in the Downtown Core(C-D Zone)T A 6.3.17 Assist in the production of long-term affordable housing by identifying vacant or undenitilized City-owned property suitable for housing, and dedicate publiq property, where feasible and appropriate, for such purposes I- 22 t f 33 Chapter 3—Goals, Policies,_1d Programs — Attachment 1 1.26.1.1 The Edna !slay Speeffie Plan guides development e€ 446 aefes in the southem peftien er- the City. Adopted in 1983, the plan ineludes ealy 1 and n3edtnm density—kenSn3g—Abe>ic two-azacr-in--the—area— ffi--vvva hoesingunits-are-possible-in the Edna !slay speeiPie-p=a=ng area. The City Goal 7.1 Neighborhood Quality. , Maintain, preserve and enhance the quality of neighborhoods, encourage neighborhood stability, and improve neighborhood appearance and function by applying "New Urbanist"design principles to new developments. Pfesefve the neighber-heeds and allow development.in-a - +*o f high q"iV. 7.2 Policies 7.2.1 . Within established neighborhoods, new residential development shall be of a character, size, density and quality that preserves the neighborhood character and maintains the quality of life for existing and future residents. 7.2L 2 Higher density housing should maintain high quality standards for unit design, privacy, security, on-site amenities, and public and private open space. Such `standards should be flexible enough to allow innovative design solutions in special circumstances, e.g. in develop,ingn mixed-use developments or iii housing in the Downtown Core 7.2.3 Within established neighborhoods, infill housing should be located on appropriate sites, but not on sites designated in the General Plan for parks or open space. 7.2.4 Within expansion areas, new residential development should be an integral part of an existing neighborhood or should establish a new neighborhood, with pedestrian and bicycle linkages that provide direct, convenient and safe access to adjacent neighborhoods, schools and shopping areas. 1.27.3 within city s, new r-esidefifial deyelepmepA should 23 Chapter 3—Goals,Policio_, mid Programs -- Attachment 1 7.2.5 The creation of walled-off residential enclaves, or of separate, unconnected tracts, is discouraged because physical separations prevent the formation of safe, walkable, and enjoyable neighborhoods. 1.27.4 T/, er-eatienof-walled €€Fesideatial efielaves, or- e€sepefate-aneefmeetea tFaetsis A' d beeause h t - eat F re ==tieof l D " Wit:}ening-neighbor-heads Neise walls be..o...,Assible where it ea,, be demeass r A R. ♦ no ether- ff fi :t: ..ti.. reek "esa available feasible. k#+k 7.2.6 Housing shall be designed to enhance safety along neighborhood streets and in other public and semi-public areas. 7.2.7 Neighborhood layout and house designs shouldromote walkin an bicycling, and should preserve open spaces and views 7.2.1 S High-Occupancy Residential Use Regulations should be amended a' necessary to achieve General Plan housing obiectives, preserve neighborhood livability and reduce parking conflicts- 73 • Programs 7.3.1 Implement varied strategies to ensure residents are aware of and able•to participate in planning decisions affecting their neighborhoods early in-the planning process. a7 6 Tl. !` .. 'ilWage FesidepAs to play lffgeE role in rr D 1.27.7 The City will establish_pr-eeedur-es te eneou-mg oeighber-heed kwelvement in the planning —an-d- develepme sses. 7.3.2 Idents specific neighborhood needs, problems, trends and opportunities for improvements. Work directly with neighborhood groups and individuals to address concerns. 1.2.8 49beFe neeessaff,the city will ide....€., Weei€te Reighbefheed aeea wig designate staff to wer-k dif:eedy with aeighbeFheed groups a 7.3.3 Help fund neighborhood improvements, including sidewalks, traffic calming devices, crosswalks, parkways, street trees and street lighting to improve the aesthetics, safety and accessibility within neighborhoods. 24 I r Chapter —Goals, Policies,old Programs Attachment 1 1.27.9 The City wi4l -help ftmd aeighber-heed impr-evements where aeeessafy to .3/.44 Residential development should promote defensible space and walkablel ocially-interactive neighborhoods. Design measures may include providing Seating porches,balconies,view windows or similar features, 73.5 Continue to develop and implement neighborhood parking strategies i including parking districts, to address the lack of on- and off-street parking in residential areasl Goal 8.1 Special Housing Needs. Encourage the creation and maintenance of housing for those with special housing needs. 8.2 Policies 8.2.1 Encourage housing development that meets a variety of special needs, including large families, single parents, disabled persons, the elderly, students, the homeless, or those seeking congregate care, group housing, single-room occupancy or co-housing accommodations. 1.284r—Trhe City.will enneouf rge-housing-that-meets-the Speeia4 needs ef. families with ssingle pffents, disabled , these desknkj eeaffegate or. , e hetising lifestyles, the el`le..lyf s students, and the.hemeless 8.2.2 Preserve manufactured housing parks and support changes in this form of tenure only if such changes provide residents with greater long-term security or comparable housing in terms of quality, cost, and livability. 0.2.3 Encourage manufactured homes in Expansion Areas by; I Encouraging developers to create owner-occupied manufactured hom parks with amenities such. as greenbelts; recreation facilities, and 'shopping services within a master planned community setting. Sucli I arks could be specifically designed to help address the needs of those with mobility and transportation limitations:� b�Establish lot sizes, setback, and parking guidelines that allow for relativel dense placement of manufactured homes_ within the master plane nei borhood. c)Locate manufactured home parks near public transit facilities or provid public transportation services to the manufactured home parks t minimise the need for residents to own automobiles I— 25 1 r Chapter 3—Goals, Policies, ,d Programs Attachment 1 8.2.4 Encourage Cal Poly University and Cuesta College to continue to strengthen student and faculty housing programs to lessen pressure on City housing supply and transportation systems to meet both existing and future needs, consistent with the Cal Poly Student Housing Needs Study recommendations. City housing supply and tFanspeftafien.systems, eensistent wM the Cal Poll' '8.2.5 Strengthen the role of on-campus housing by encouraging Cal Poly Universi Ito require entering freshmen students to live on campus during their first year 8.2.6 Fraternities and sororities should be located on the Cal Poly University campus. Until that is possible, they should be located in Medium-High and High Density residential zones. 8.3.4 Fr- to ..Baia. ffind r r-:ties sheald he leeated en the Cal Pel::_I rAyercity e.... pa . URW that is possible, they should be eeaeefAmted in high density r-esidmAial zones adjaeont to the eaWus rather- than dispeFsed dwougheut the City. 8.2.7 Special-needs living facilities should be dispersed throughout the City rather than concentrated in one district. 8.3 Programs 8.3.1 As funding allows, support local and regional solutions to meeting the needs of the homeless and continue to support,jointly with other agencies, shelters for the homeless and for displaced women and children. 8.3.2 Continue the mobile home rent stabilization program to minimize increases in the cost of mobile home park rents. 8.3.3 Identify sites in specified expansion areas suitable for tenant-owned mobile- home parks, cooperative housing, manufactured housing or other types of housing that meet special needs. 8.3.4 Advocate developing non-dormitory housing on the Cal Poly University campus and refurbishing existing campus housing and its associated programs to make campus living more attractive and affordable. 8.3.5 Work with Cal Poly University Administration to secure designation of on- 26 l I Chapter 3—Goals,Policies,mid Programs Attachment I campus fraternity/sorority living groups. with f 1 Pell T Tniye.. '�..- A A �. l9 pl3e E4E�bY}l� we�lc �Yia: cmTvrJ-vza�grm�-z,dffAm cxvirty oaomc designat;ien Of en e-aWus living—groups In the sae ter- ren City peh . City 1. a Piens suitable fe. f eA «' a •a' _, ..J r_ —J "__J ...�»........ ............... .... ....w.u.u...a a..w yva vaauvo will be vel-ned. Zeningr-egul tieFi�•l, be-im§ea cvicStfiet the-neeat xrnaeampus > . 8.3.6 Jointly develop and adopt a student housing plan and "good neighbor program" with Cal Poly University, Cuesta College and City residents. The program would seek to improve communication and cooperation between the City and the schools, set student housing objectives and establish clear, effective standards for student housing in residential neighborhoods. Goal 9.1 Sustainable Housing, Site, and Neighborhood Design. As pan of its overall commitment to quality of life for its citizens, and to maintaining environmental quality, the City encourages housing that is resource-conserving, healthful, economical to live in, environmentally benign, and recyclable when demolished. Gaal 1.29. Ener-gy and Water- Pr-eduee housing—that is ..vv..vuuvw to vvvuyy weuisw o o - - 9.2 Policies 9.2.1 Residential developments should promote sustainability in their design, placement, and use. Sustainability canbe promoted through a variety housing strategies.including the following a)Maximize use of renewable, recycled-content, and recycled materials, and minimize use of building materials that require high levels ofener t l I or that cause significant,adverse environmental,impacts[— "corporate renewable energy features into new homes, including passive solar design, solar hot water, solar powers and natural ventilation and coo, ling 219=1 Minimize thermal island effects through reduction of heat-absorbing pavement and increased tree shading. — z7 1 - 3g Chapter 3—Goals,Policies,_ad Programs Attachment 1 a Avoid building material's that may contribute to health problems through the release of gasses or glass fibers into indoor air, J Design dwellings for quiet, indoors and out for both.the mental and physical health of residents- 0 Design dwellings economical to live in because of reduced unlit bills to cost maintenance and operation, and improved occupant health(�� 1.29.0 Use construction materials and methods that maximize the recyclability of a building's partsF J Educate public, staff, and builders to the advantages and approaches'o ' _1 sustainable desi and thereb develo consumer demand for sustainable housin D 1 ty will consider ado tin a sustainable development ratio s stem such as the LEED program .2.2 1Residential site, subdivision,and neighborhood designs should be coordinated to make residential sustainability work. Some ways to do this include�� Design subdivisions to maximize solar access for each dwelling b, Design sites so residents have usable outdoor space with access to b sbot un and shade c).Adopt street and access way standards that reduce the amount o impermeable surface devoted to vehicular use. d�Use neighborhood retention basins to­purify street runoff prior to its entering creeks..Such basins should be designed to be attractive, visua and functional amenities in the dry season. Unsightlyz fenced-off retention basins should beavoided. + J Encourage cluster development with dwellings grouped around, significantly-sized, shared open space in return for City approval o£ smaller individual lots, 28 Chapter 3—Goals,Policie�,._id Programs Attachment 1 f,)Use landscape buffers,to separate neighborhoods of all densities from heavily trafficked streets and hi ways9 0.23 Preserve the physical neighborhood qualities in the Downtown Core tha contribute to sustainability. Some ways to do this include, 1.29:1 Maintain the overall scale,.density and architectural character of olde neighborhoods surrounding the Downtown Core,thereby preserving close living environments appealing to people who choose to live close to their jobs b Encourage the maintenance and rehabilitation of historic housin stock .2A To promote energy conservation anda cleaner environment,encourage th development of dwellings with energy=efficient designs;utilizing passive and active solar features, and the use of energy Saving techniques_that exceed I prescn�l5ed by State law_ .29 5 Actively promote water conservation to lessen the need for capital-intensiv water source develo men which could considerabl increase the cost of housin , utihziRg passive - teehpAques that erweed the mi i ibed by State 1- 1.29.2 [a order- te lessen the need fOF eapital ipAeasi*e water- seur-ee develepfflepA w 93 Programs 9.3.1 Educate planning and building staff and citizen review bodies on energy conservation issues, including the City's energy conservation policies and instruct that they work with applicants to achieve the housing goals that conserve energy. 9.3.2 Revise the Energy Conservation Element to address residential energy conservation for both new and existing dwellings. Disseminate this information to the public. and heuses as well as eendefrAfff'Was. 29 - !o 1 (� Chapter 3—Goals,Policie-.,_id Programs Attachment 1 9.3.3 Evaluate present solar siting and access regulations to determine if they provide assurance of long-term solar access for new or remodeled housing and for adjacent properties, and revise regulations found to be inadequate. publie, and ineefper-ate its key features We City eaefgy eeaseFvati pehey. L29.7 Continue, and expaad, .the Givy's subsidized PhHnbing mtFefk program uati4 all e...st:.... A..ell: s have been et.-e fiaed � _ with plumbing Fetfefits. Goal 10.1 Local Preference. Maximize affordable housing opportunities for those - who live or work in San Luis Obispo while seeking to balance job growth and housing supply. deffktad te ffhi*kr&e heusing eppeFtuaities fer-these who live or- work in the City. 10.2 Policies 10.2.1 Administer City housing programs and benefits,. such as First Time Homebuyer assistance or affordable housing lotteries, to give preference to persons living or working in the City or within the City's Urban Reserve and 'to persons living in San Luis Obispo Count 0.22 Cal Poly State University and Cuesta College should actively work with the City and community organizations to create positive environments around the Cal Poly Campus b J Establishing standardsfor appropriate student densities in nei borhoo ss near Campus J Promoting homeownership for academic faculty and staff in Low-Dens_ity Residential neighborhoods near Campus; and pc Encouraging and artici atin in the revitalization of de aded neighborhoods, ,1.39.i The-City will disee..mge aefiy:t:es ..,Web aggr-a ate the :...b l.,....e between 30 t - 41 „ 4 1 i � ( Chapter 3—Goals,Policies, id Programs Attachment 1 efnpleyffiefit housing mafketmafes- and industfial development. 1.30.3 The City will seek to faif�mize e*paffiiea of housing demnd and esealatien of housing eests due te per-seffi beiRg entieed to move &em ether- areas. • 10.3 Programs 10.3.1 Work with the County of San Luis Obispo to mitigate housing impacts on the City due to significant expansion of employment in the unincorporated areas adjacent to the City. Such mitigation might include, for example, County. . participation and support for Inclusionary Housing Programs. 1.30.6 The Gi�z will work with the County ef San Luis Obispo to diseeuFag0 :..'- 10.3.2 Encourage residential developers to promote their projects within the San Luis.. Obispo housing market area (San Luis Obispo County)first. pr-ejeets epAy within the housing faar-k-et aFea (San Luis Obispe Geunty). 10.3.3 Advocate the establishment of a link between enrollment growth and the expansion of campus housing programs at Cal Poly University and Cuesta College to reduce pressure on the City's housing supply. 10.3.4 Advocate that-further expansion of State institutions such as the California Men's Colony should include adequate provisions by the State for providing additional housing for new employees. east and supply as pai4 of any pr-epesals to designae addifie" land . , 31 Chapter 3—Goals,Policie_, -iid Programs Attachment 1 1.30.11 he Citywill--eensidef amending itsgFew Goal 11.1 Suitability. Develop and retain housing on sites that are suitable for that purpose. 11.2 Policies 11.2.1 Where property is equally suited for commercial or residential uses, give preference to residential use. Changes in land use designation from residential to non-residential will be discouraged. 11.2.2 Prevent new housing development on sites that should be preserved as dedicated open space or parks, on sites subject to natural hazards.such as . unmitigatable geological or flood risks, or wildfire dangers, and on sites subject to unacceptable levels of man-made hazards or nuisances, including severe soil contamination, airport noise or hazards, traffic noise or hazards, odors or incompatible neighboring uses. 1 .7 The City should of p it development of housing on a e if o 0 0 .. eenflietswMgoals er--pelieies of this Element, other- G ne...l Plan* Elements, or-with other- eeffaffuai�y geals. 1.31.3 The City should prevent now heusiRg develepment an sites that sheWd be 1.31.4 The City sheuld diseeufage r-edevelopmepA of sites where th er- r-ehabilitable housing is well suited te the needs ef lew inee , elderly, or- disabled per-sem, uffless an e"iva4eat fmfnberr ef new eempaFable in affefdability and ameakies to those being r-emeved are efeated as paFt of the new prrejeet—. 11.3 Program 11.3.1 The City will adopt measures ensuring the ability of legal, conforming non residential uses to continue where new housing is proposed on adjacent or nearby sites. 32 Chapter 3—Goals,Policies,-.mid Programs Attachment 1 uses.1.31.5 Pw City will adept Fegulations to pmveRt new housing deVelepmepA en s j h/Uhousingelemenmpdatel2004legislativedraft 33 Attachment 2 SAN LUIS OBISPO PLANNING COMMISSION RESOLUTION NO. 5369-03 WHEREAS, the Planning Commission of the City of San Luis Obispo did conduct a public hearing in the Council Chamber of City Hall, 990 Palm Street, San i Luis Obispo, California, on August 27, 2003, pursuant to a proceeding instituted under application ER and GPA 33-02, City of San Luis Obispo, applicant, for the project described below: ITEM REVIEWED: Consideration of a resolution supporting the preparation of a Negative Declaration of environmental impact, based on Initial Environmental Study 33-02, and on the goals, policies and programs contained in the Draft Housing Element Update dated August 13, 2003. DESCRIPTION: The project consists of the August 2003 Draft Housing Element Update, a seven and one-half year plan that describes the City's proposed housing goals, policies; and programs. It updates the current Housing Element adopted in September 1994. The Housing Element is part of the City's General Plan and guides public and private decisions regarding housing, including city development review, land use decisions, city budgets and capital improvement programs. The Draft Element includes policies and programs intended to increase housing opportunities for very-low, low- and moderate- income households, while accommodating growth .in a manner consistent with goals and policies contained in the. Land Use Element and other elements of the General Plan. GENERAL LOCATION: Citywide WHEREAS, said public hearing was for the purpose of reviewing Initial Environmental Study ER 33-02 to determine whether, based on the goals, policies, and programs in the Draft Housing Element Update dated August 13, 2003, the Initial Study adequately addresses the project's potential environmental effects; and to conduct scoping to identify issues needing further environmental study, if warranted; and ,rte C - -- MACHMN 2 Resolution No. 5369-03 Page 2 WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the Planning Commission reviewed and considered Initial Environmental Study ER 33-02 and the Director's Action granting a Negative Declaration of environmental impact for the Draft Housing Element Update dated August 19, 2003; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of the public, interested parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED, that the Commission supports the preparation of a Negative Declaration of environmental impact, based on Initial Environmental Study ER 33-02, and on the goals, policies and programs in the Draft Housing Element Update dated August 13, 2003, subject to the following findings: Section 1. Findings. 1. Goals, policies and programs in the Draft Housing Element are consistent with the General Plan Land Use Element and the Residential Growth Management Regulations; 2. The potential environmental effects of the General Plan Land Use Element were addressed in the Environmental Impact Report for the Land Use and Circulation Element Updates, certified on August 23, 1994; 3. The level of residential growth accommodated under the Draft Housing Element Update is consistent with the General Plan Land Use Element and Residential Growth Management Regulations, and is not likely to result in the City exceeding its build out population or its ability to adequately serve new residents with infrastructure and basic public services; 4. Implementation of the Draft Housing Element Update will not result in significant adverse impacts not previously considered and mitigated in the Land Use and Circulation Element Updates EIR; and 5. The City faces an unprecedented, critical need for providing housing affordable to 1 - 4 ATTACHMEW 2 Resolution No. 5369-03 Page 3 very-low, low and moderate income households, and that the Draft Housing Element Update is intended to help meet those needs.. The foregoing resolution was passed and adopted by the Planning Commission of the City of San Luis Obispo this 271h of August, 2003, upon the motion by Commissioner Loh, seconded by Commissioner Boswell, and on the following roll call vote: AYES: Commrs. Loh, Boswell, Aiken, Caruso, Christianson, and Osborne NOES: None ABSENT: Commissioner Cooper Ronal Whisenand, Secretary Planning Commission Attachment 3 awl INITIAL STUDY ENVIRONMENTAL CHECKLIST FORM For ER#33-02 1. Project Title: General Plan Housing Element Update 2. Lead Agency Name and Address: Community Development Department City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 3. Contact Person and Phone Number: Jeff Hook(805) 781-7176 4. Project Location: Throughout the City of San Luis Obispo. 5. Project Sponsor's Name and Address: Community Development Department City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 6. General Plan Designation: Project applies to all General Plan land-use designations. 7. Zoning: Project applies to all zones in the City. 8. Description of the Project: The project consists of the August 2003 Draft Housing Element Update, a seven and one-half year plan which explains the City's housing goals, policies, and programs. It updates the current Housing Element which was adopted in 1994. Once adopted, the Housing Element becomes part of the City's General Plan and will guide public and private decisions regarding housing, including city development review, land use decisions, city budgets and capital improvement programs. The Draft includes policies and programs intended to increase housing opportunities for very-low, low- and moderate-income households, while accommodating growth in a manner consistent with goals and policies contained in the Land Use Element and other elements of the General Plan. The content of housing elements is prescribed under state housing law, and this Draft has been prepared to include the required sections and information. The Draft Housing Element Update contains many of the same policies and programs found in the 1994 Housing Element. State, regional and local housing costs, supply and needs have changed since 1994, as evidenced by the 2000 Census and current information on real estate prices, affordable housing, and the widening "gap" between rental and purchase housing costs and consumers' incomes. The Draft Housing Element Update also includes new policies and programs to address these changes to the City's housing situation. ( - 4- Attachment 3 9. Surrounding Land Uses and Settings: The City of San Luis Obispo is a community of about 44,000 persons, is home to Cal Poly State University, and is separated from other communities in the County by agricultural and open lands. It is the County seat and the County's largest incorporated city with about one-fifth of the County's total population. San Luis Obispo is a charter city and began as one of a chain of 21 missions founded by Spanish missionaries in the late 1700s. The City is the retail, employment, and cultural center of the County, and is notable for the many scenic hillsides and "morros" that ring the City, and many creeks that wind through the community. The City is also noteworthy for the many historic homes and commercial buildings located downtown and in four other historic districts.. 10. Project Entitlements Requested: Council adoption of the Housing Element. 11. Other public agencies whose approval is required: The Draft Housing Element Update must be referred to the California Department of Housing and Community Development for a determination of consistency with state housing law. �r CITY OF SAN LUIS OBISPO 2 Wm LL.STUDY ENVIRONMENTAL CHECKLIST 2003 i ^ 0 Attachment �i ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a"Potentially Significant Impact" as indicated by the checklist on the following pages. Aesthetics Geology/Soils Public Services Agricultural Resources Hazards&Hazardous Recreation Materials Air Quality Hydrology/Water Quality Transportation&Traffic Biological Resources Land Use and Planning Utilities and Service Systems Cultural Resources Noise Mandatory Findings of Significance Energy and Mineral Population and Housing 16— Resources FISH AND GAME FEES There is no evidence before the Department that the project will have any potential adverse effects on fish X and wildlife resources or the habitat upon which the wildlife depends. As such, the project qualifies for a de minimis waiver with regards to the filing of Fish and Game Fees. The project has potential to impact fish and wildlife resources and shall be subject to the payment of Fish and Game fees pursuant to Section 711.4 of the California Fish and Game Code. This initial study has been circulated to the California Department of Fish and Game for review and comment. STATE CLEARINGHOUSE This environmental document must be submitted to the State Clearinghouse for review by one or more State agencies (e.g. Cal Trans, California Department of Fish and Game, Department of Housing and Community Development). The public review period shall not be less than 30 days (CEQA Guidelines 15073(a)). 6019S CITY OF SAN LUIS OBISPO 3 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2003 DETERMINATION: Attachment 3 On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. X I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made, or the mitigation measures described on an attached sheet(s) have been added and agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a"potentially significant" impact(s) or"potentially significant unless mitigated" impact(s) on the environment, but at least one effect (1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and (2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets.An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects(1) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (2) have been avoided or mitigated pursuant to that earlier EIR of NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. August 19, 2003 Je ociate Planner Date For. John Mandeville, Michael Draze, Deputy unity Development Community Development Director Direct �r CITY OF SAN Luis OBISPO 4 INITIAL STUDY ENVIRONMENTAL CHECKLIST ZOO$ 1 - S-[ Attachment 3 EVALUATION OF ENVIRONMENTAL IMPACTS: 1. A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the analysis in each section. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved(e.g. the project falls outside a fault rupture zone). A"No Impact"answer should be explained where it is based on project-specific factors as well as general standards(e.g. the project will not expose sensitive receptors to pollutants,based on a project-specific screening analysis). 2. All answers must take account of the whole action involved, including off-site as well as on-site, cumulative as well as project-level, indirect as well as direct; and construction as well as operational impacts. The explanation of each issue should identify the significance criteria or threshold,if any,used to evaluate each question. 3. "Potentially Significant Impact' is appropriate if there is substantial evidence that an effect is significant. If there are one or more"Potentially Significant Impact"entries when the determination is made,an EIR is required. 4. "Potentially Significant Unless Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from Section 17, "Earlier Analysis,"may be cross-referenced). 5. Earlier analysis may be used where,pursuant to the tiering,program EIR,or other CEQA process,an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063 (c) (3) (D) of the California Code of Regulations. Earlier analyses are discussed in Section 17 at the end of the checklist. 6. Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate,include a reference to the page or pages where the statement is substantiated. 7. Supporting Information Sources: A source list should be attached,and other sources used or individuals contacted should be cited in the discussion. In this case,a brief discussion should identify the following: a) Earlier Analysis Used. Identify and state inhere they are available for review.. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on earlier analysis. c) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. CITY OF SAN Luis Ompo 5 INITIAL STUDY ENvIRoNmENTAL CHECKLIST 2003 (-4�� Issues, Discussion and Support::_ .riformation Sources Sources Po., :..y Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER#33-02 Issues Unless impact Mitigation Inco ted Attachment.3 1.AESTHETICS. Would theproject: a) Have a substantial adverse effect on a scenic vista? X b) Substantially damage scenic resources,including,but not limited X to,trees,rock outcroppings,open space,and historic buildings within a local or state scenic highway? c) Substantially degrade the existing visual character or quality of 1,2 X the site and its surroundings? d) Create a new source of substantial light or glare that would X adversely effect day or nighttime views in the area? (Text references in parentheses refer to a General Plan Digest policy or program, e.g. LU 2.2.8 refers to Land Use Element policy 2.2.8,or the 1994 Final Environmental Impact Report for Land Use and Circulation.Element Updates) Policies in the Draft Housing Element Update encouragethe development of housing in urbanized areas and in expansion areas planned and phased to accommodate residential growth. It follows Land Use Element (LUE) policies in directing growth into those areas and sites that can accommodate residential development based on size,shape,topography,zoning and environmental sensitivity. New residential development would be guided by existing development standards regarding building height, creek and property line setbacks, and avoidance of important site and environmental features such as historic features or buildings, rock outcroppings,open space, and heritage trees. Draft policy 11.2.2 precludes new housing on sites subject to natural or manmade hazards, incompatible land uses, or on sites that should be preserved for dedicated parks or open space. New residential development may alter the visual settings of suburban and rural areas outside of the City's Urban Reserve. These areas primarily consist of major expansion areas and minor annexation areas that require either specific plans or development plans showing form,layout and integration of new buildings with the site. As noted in the 1994 Final EIR Land Use/Circulation Element Updates, accommodating a reasonable share of the anticipated regional growth will result in change from rural to urban character in some areas. This change was anticipated in the FEIR and a finding of overriding considerations was made(p.11, FEIR). Most new development will be subject to further environmental review under CEQA and architectural review for residential projects of five or more units, or where a sensitive or historically significant resource may be affected. These additional review steps focused on individual project designs should adequately address potential aesthetic concerns. Under the proposed Draft program 6.3.14,the construction or relocation of four or less dwellings would be exempt from architectural review. Such projects would still be required to be consistent with the Residential Project Objectives(LU2.2.12)that address privacy and overlook,views,usable outdoor space,use of natural ventilation,sunlight and shade for environmental comfort with reduced energy use, security and safety, design features to facilitate neighbor interaction, and noise and visual buffers from roads and incompatible uses. Policies in the Draft are intended to prevent housing on sites that are often scenic, including dedicated open space or parks, sites subject to natural hazards such a floods or seismic risks,or steep hillsides with wildfire susceptibility. Conclusion: No impact: 2.AGRICULTURE RESOURCES. Would theproject: a) Convert Prime Farmland,Unique Farmland,or Farmland of X Statewide Importance(Farmland),as shown on the maps 1,2,3 pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency,to non-agricultural use? b) Conflict with existing zoning for agricultural use or a X Williamson Act contract? c) Involve other changes in the existing environment which,due to X their location or nature,could result in conversion of Farmland to non-agricultural use? The City of San Luis Obispo is in the County's central coastal agricultural region. San Luis Obispo City is, for the most part, urbanized with only a few small farms still engaged in agricultural production. In 2003,about 33 acres remain in agricultural �i CITY OF SAN Luis OsisPo 6 INITIAL STUDY ENviRONmENTAL CHECKLIST 2003 Issues, Discussion and SUpportr, fiformation Sources Sources Po. .'y Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER#33-02 Issues Unless Impact Mitigation Incorporated Attactimen use within the City. The most intensive agricultural activity in the San Luis Obispo area is located in the Edna Valley,just south of the City. The Housing Element follows the General Plan Land Use Element(LUE) in terms of where housing should be developed, and is intended to promote compact urban form and reduce sprawl and loss of productive agricultural lands outside the City's Urban Reserve. Agricultural and Conservation/Open Space lands allow limited residential use at very low densities, appropriatefor rural housing. The Draft Housing Element Update will not result in the conversion of prime or unique.farmland or involve other changes that would lead to conversion of farmland to non-agricultural uses. A land inventory done in connection with the Housing Element Update identified approximately 49 acres of vacant or underutilized Interim Open Space within city limits. This includes three properties: the 25 acre Sunset Drive-in property,and two parcels totaling about I 1 acres between Los Verdes Residential Condominiums and San Luis Obispo Creek(off Los Osos Valley Road) that are farmed in 2003. These parcels are located within a 100-year flood zone and are not suitable for residential development until the flood hazard is mitigated without significant harm to San Luis Obispo Creek. Because this land is not yet suitable for residential development and provides open space benefits, it is considered a lower priority for development and is not included in the Draft Element's summary of residential development capacity. Development of Interim Open Space requires approval of a development plan or specific plan, showing how these flood hazards would be mitigated. Conclusion: No impact. The project is located primarily in an urban or suburban area. Agricultural resources would not be significantly affected. 3. AIR QUALITY. Would theproject: a) Violate any air quality standard or contriibute.substantially to an 1,2,3, X existing or projected air quality violation? 6,7,8 b) Conflict with or obstruct implementation of the applicable air X qty plan? c) Expose sensitive receptors to substantial pollutant X concentrations? d) Create objectionable odors affecting a substantial number of X people? e) Result in a cumulatively considerable net increase of any criteria X pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard (including releasing emissions which exceed qualitative thresholds for ozone recursors)? The Draft Housing Element Update includes policies and programs to accommodate up to 2,909 in-city dwellings during the planting period from January 2001 to July 2008. Of these,approximately one-half of the units are planned for very-low and low-income households. An additional 1,178 dwellings are anticipated on state-owned land, to be developed by Cal Poly University Foundation for students, faculty and staff: As discussed under Housing and Population, Section 12, this level of growth is consistent with the residential growth anticipated in the General Plan Land Use Element and evaluated in the 1994 FEIR on the Land Use and Circulation Element Updates. The anticipated population number within the planning period,and the rate at which it is attained,is within growth projections of theSanLuis Obispo County 2001 Clean Air Plan(CAP). Residential growth adds to local and commuting automobile trips, a primary factor affecting air quality. As a "job rich" community, a key component of vehicle trips is employees commuting into jobs in San Luis Obispo. The Final EIR for the CAP based its air quality assumptions in part,on an estimated San Luis Obispo population of 52,684 by 2008. The estimated city population in 2008, assuming development of up to 2,909 in-city dwellings is 50,766. The Final EIR also identified transportation control measures to reduce transportation-related emissions that affect air quality. The Draft Housing Element Update incorporates several of these measures as part of its overall"smart growth"strategy, including: 1)Planning Compact Communities, Mixed Use Development, and Improving Jobs/Housing Balance. The Draft has 28 policies or programs designed to promote compact urban growth,encourage mixed residential and commercial use,allow employees to live within walking or biking distance of their jobs,and to encourage downtown housing close to jobs,services,government,recreational and cultural opportunities. `i CRY OF SAN Luis OBISPO 7 INmAL STUDY ENVIRONMENTAL CHECKLIST2003 lr Sr•`�' Issues, Discussion and Suppol.... ,nformation Sources Sources K ..y Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant lmpact ER#33-02 Issues Unless Impact Mitigation Incorporated Attachment _ Conclusion: No impact. The Draft Housing Element Update is consistent with General Plan growth policies and with prevailing countywide assumptions regarding air quality. To the extent the updated Housing Element helps produce more "workforce" housing, that is, housing affordable to very-low, low and moderate income working people, many of whom now commute into the City, it may help improve the Jobs/Housing balance, promote use of alternative transportation, and help reduce traffic congestion. 4. BIOLOGICAL RESOURCES. Would theproject: a) Have a substantial adverse effect,either directly or indirectly or X through habitat modifications,on any species identified as a 1,2,3 candidate,sensitive,or special status species in local or regional plans,policies,or regulations,or by the California Department of Fish and Game or U.S.Fish and Wildlife Service? b) Have a substantial adverse effect,on any riparian habitat or X other sensitive natural community identified in local or regional plans,policies,or regulations,or by the California Department of Fish and Game or U.S.Fish and Wildlife Service? c) Conflict with any local policies or ordinances protecting X biological resources,such as a tree preservation policy or ordinance(e.g.Heritage Trees)? d) Interfere substantially with the movement of any native resident X or migratory fish or wildlife species or with established native resident or migratory wildlife corridors,or impede the use of wildlife nursery sites? e) Conflict with the provisions of an adopted habitat Conservation X Plan,Natural Community Conservation Plan,or other approved local,regional,or state habitat conservation plan? f) Have a substantial adverse effect on Federally protected X wetlands as defined in Section 404 of the Clean Water Act (including,but not limited to,marshes,vernal pools,etc.) through direct removal,filling,hydrological interruption,or other means? The General Plan Land Use and Open Space Elements guide the preservation of biological resources. These include creeks and adjacent riparian corridors,vernal pools,marshes,endangered species or species of special concern,hillsides,open space and park areas, and Laguna Lake. The Draft Housing Element Update is consistent with those documents, and anticipates new dwellings only in those areas suitable for residential development, with adequate guarantees to preserve natural and biological resources as part of new development. It says housing should be prevented on sites that are unsuitable for development due to open space values, or natural or manmade hazards. Individual development projects will be subject to environmental review and development review by staff and City advisory bodies to assure compliance with pertinent policies. All new residential development must comply with the Creek Setback Ordinance and must avoid sensitive site resources. "Green Building Technology" is encouraged to reduce energy consumption,promote development that is well-integrated with the natural features and environmental processes of its site, and to encourage personalized, unconventional housing that reduce costs,energy or materials consumption,and site disturbance. Conclusion: No Impact. Residential development anticipated in the Draft Housing Element Update is consistent with the General Plan Land Use Element and was evaluated as part of the 1994 General Plan Land Use Element Update EIR 5.CULTURAL RESOURCES. Would theproject:. a) Cause a substantial adverse change in the significance of a X historic resource?(See CEQA Guidelines 15064.5) b) Cause a substantial adverse change in the significance of an X archaeological resource?(See CEQA Guidelines 15064.5) `,� CITY OF SAN Luis OwsPO .8 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2003 Issues, Discussion and Supportit.,,hformation Sources Sources Poti y Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER#33 02 Issues Unless Impact Mitigation Inco orated 2 c) Directly or indirectly destroy a unique paleontological resource X 7 .onsite or unique geologic feature? d) Disturb any human remains,including those interred outside of X formal cemeteries? Preservation of cultural resources is a key General Plan goal. Policies in the Land Use Element (LUE 6.6) provide that historically and architecturally significant buildings should not be demolished or substantially changed in outward appearance unless necessary to remove a threat to health or safety and no other means exist to avoid the threat. They also encourage the preservation of archaeological resources and archaeological sites, and say that changes to historic buildings and new development in historic districts should reflect the design and materials of the original building and contribute to a neighborhood's historic patten and architectural character. Meeting the community's housing needs is also a key community goal, and the Draft Housing Element Update seeks to balance these sometime competing needs. It contains eight policies addressing the need to rehabilitate and preserve basically sound housing, protect historic housing and residential districts, including downtown hotels, ensure new residential development is compatible with designated historic resources, promote seismic safety upgrades,and the use of state or federal funds to protect and improve existing neighborhoods. As new housing is developed,those features or characteristics that create or reinforce San Luis Obispo's"sense of place"are to be preserved. Individual residential development projects will be evaluated for site-specific cultural resources and where necessary, appropriate mitigation included to protect those resources. Conclusion: No impact. 6. ENERGY AND MINERAL RESOURCES. Would theproject: a) Conflict with adopted energy conservation plans? 1,2,3 X b) . Use non-renewable resources in a wasteful and inefficient X manner? c) Result in the loss of availability of a known mineral resource X that would be of value to the region and the residents of the State? The General Plan Land Use and Energy Conservation Elements include policies to use land, water, and energy resources wisely. The Draft Housing Element Update is consistent with these documents in that it promotes housing design that uses energy and materials wisely, and encourages higher density, infill housing that by its nature, uses land more efficiently than conventional detached, single-family housing. The draft includes quantified objectives that summarize the number of dwellings the City plans to accommodate,by income group,within the planning period from January 2001 to July 2008. The Dian assumes that 60 percent of new housing will be multi-family and 40 percent will be single-family housing, including both attached and detached dwellings. Through development incentives, selected land use changes.(i.e. rezoning), and flexible development and architectural review standards, multi-family housing would be encouraged where appropriate to help meet affordable housing needs, avoid inefficient land use which can contribute to urban sprawl, and to use energy and materials wisely. The Draft also advocates flexible planning and building standards to encourage "Green Building Technology" such as hay bale construction, passive and active solar energy design,and use of appropriate siting and energy- saving features in new housing. Planning and building staff and city advisory bodies that review new housing would, under the Draft Element's new programs, receive special instruction in encouraging housing design that conserves energy. Conclusion: No impact. 7. GEOLOGY AND SOILS. Would theproject: a) Expose people or structures to potential substantial adverse 1,2,3 X effects,including risk of loss,injury or death involving: I. Rupture of a known earthquake fault,as delineated in the X most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area,or based on other substantial evidence of a known fault? II. Strong seismic ground shaking? EXXI III. Seismic-related ground failure,including liquefaction? CrrY OF SAN Luis O61SP0 9 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2003 -Slo Issues, Discussion and Supportit., aiformation Sources Sources Pot,- ..y Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER# 33-02 Issues Unless Impact Mitigation Incorated ac men -�3 IV. Landslides or mudflows? X b) Result in substantial soil erosion or the loss of topsoil? X c) Be located on a geologic unit or soil that is unstable,or that X would become unstable as a result of the project,and potentially result in on or off site landslides, lateral spreading,subsidence, liquefaction,or collapse? d) Be located on expansive soil,as defined in Table 18-1-B of the X Uniform Building Code,(]994),creating substantial risks to life or property? The Draft Housing Element Update policies would prevent new housing on sites with natural hazards, such as geological or seismic risks, including soil erosion, landslides, or liquefaction. City policies and development standards encourage housing where appropriately zoned land exists with the necessary public services and infrastructure(or can be served), and where the land is physically and environmentally suited for residential development. The Draft is consistent with these policies and standards. Conclusion: No impact. 8. HAZARDS AND HAZARDOUS MATERIALS.. Would the Pro`ect: a) Create a significant hazard to the public or the:environment X through the routine use,transport or disposal of hazardous 1,2,3 materials? b) Create a significant hazard to the public or the environment X through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely X hazardous materials,substances,or waste within one-quarter mile of an existing or proposed school? d) Expose people or structures to existing sources of hazardous X emissions or hazardous or acutely hazardous materials, substances,or waste? e) Be located on a site which is included on a list of hazardous X materials sites compiled pursuant to Government Code Section 65962.5 and,as a result,it would create a significant hazard to the public or the environment? f) For a project located within an airport land use plan,or within X two miles of a public airport,would the project result in a safety hazard for the people residing or working in the project area? g) Impair implementation of,or physically interfere with,the X adopted emergency response plan or emergency evacuation per? h) Expose people or structures to a significant risk of lose,injury, X or death,involving wildland fires,including where wildlands are adjacent to urbanized areas or where residents are intermixed with wildlands? The General Plan Land Use and Safety Elements are the primary policy documents addressing hazards and hazardous materials. The Draft Housing Element Update is consistent with these documents in that it includes polices to prevent new residential developments from being located on sites subject to natural or rnamnade hazards. Potential airport hazards are of special concern, since much of the City's additional residential capacity is located in the southern part of the City, near take off and landing approaches for the San Luis Obispo County Airport. The Airport Land Use Commission adopted a Land Use Plan to guide where and what types of land uses are compatible with airport operations. Generally,residential development is not appropriate in flight approach and take-off areas,and where safety or noise considerations dictate greater spacing between CITY of SAN Luis OsisPo 10 INITIAL STUDY ENv1RONmFNTAL CHEcKusT 2003 t �� Issues, Discussion and Supportii.y Information Sources Sources Pott-_,dy Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER#33-02 Issues Unless Impact Mitigation Incorporated housing and airport activities. City land use policies are generally consistent with the Airport Land Use Plan,and individual developments are evaluated for their consistency with the Plan. The anticipated residential growth is located outside of airport hazard areas, or within areas where residential use is conditionally allowed with appropriate design and safety considerations. Conclusion: No impact. 9. HYDROLOGY AND WATER QUALITY. Would theproject: a) Violate any water quality standards or waste discharge X requirements? 1,2,3 b) Substantially deplete groundwater supplies or interfere X substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level(e.g.The production rate of pre-existing nearby wells would drop to a level which would not support existing land uses for which permits have been granted)? c) Create or contribute runoff water which would exceed the X capacity of existing or planned storm water drainage systems or provide additional sources of runoff into surface waters (including,but not limited to,wetlands,riparian areas,ponds, springs,creeks,streams,rivers,lakes,estuaries,tidal areas,bays, ocean,etc.)? d) Substantially alter the existing drainage pattern of the site or X area in a manner which would result in substantial erosion or siltation onsite or offsite? e) Substantially alter the existing drainage pattern of the site or X area in a manner which would result in substantial flooding onsite or offsite? f) Place housing within a 100-year flood hazard area as mapped on X a Federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? g) Place within a 100-year flood hazard area structures that would X impede or redirect flood flows? h) Will the project introduce typical storm water pollutants into X ground or surface waters? i) Will the project alter ground water or surface water quality, temperature,dissolved oxygen,or turbidity9. New housing development must comply with existing city,regional and state standards for the protection of surface water and ground water quality. In major expansion areas, where large residential subdivisions will occur (Irish Hill, Margarita, and Orcutt expansion areas),specific project-related effects on runoff,siltation, flooding,water quality are or will be addressed in required specific plans and environmental review documents. Residential development anticipated in the Draft Housing Element Update is consistent with residential growth policies in the General Plan Land Use Element, and Hydrology and Water Quality impacts were addressed in the Final EIR for the 1994 Land Use Element Update. That document found that impacts of city development and growth on Hydrology and Water Quality were not significant provided that the following mitigation measures were implemented: expanded wastewater collection and treatment capacity, buffers/setbacks along waterways in residential development areas, provisions for natural drainage areas and porous paving, and Regional Water Quality Board oversight for projects disturbing more than five acres. The City is complying with these requirements in its capital improvement programs,in specific plans for major expansion areas and as part of development review. Conclusion: No impact 10. LAND USE AND PLANNING. Would theproject: UbZM CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2003 4� g Issues, Discussion and Supporting information Sources Sources Pott.___q Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER#33-02 Issues Unless Impact Mitigation Inco o a) Conflict with applicable land use plan, policy, or regulation of X an agency with jurisdiction over the project adopted for the 1,2,3 purpose of avoiding or mitigating an environmental effect? b) Physically divide an established community? X c) Conflict with any applicable habitat conservation plan or natural X community conservationplans? The Draft Housing Element Update includes numerous programs, or implementation "tools", to implement its goals and policies. Most of these programs require subsequent discretionary approvals or follow-up actions to take effect. Proposals to change adopted plans, zoning designations, development or land use;standards or regulations will require environmental review. For example, policies in the Draft encouraging higher density, infill housing close to jobs and employment centers would be implemented, in part, through changes to the General Plan Land Use Map and Zoning map. Sites that may be appropriate for multi-family housing are identified in the Draft, with subsequent review and action needed to evaluate and implement the change. At a broad policy level, such rezoning to accommodate dwellings close to.jobs and schools, along major transportation routes, and where compatible with adjacent uses, is consistent with General Plan goals and policies. Individual programs' impacts on City plans, policies, resources, and services will be evaluated for consistency and potential environmental effects once specific sites and land use changes are identified. Conclusion: No impact. 11.NOISE. Would the ro'ect.result in: a) Exposure of people to or generation of"unacceptable"noise X levels as defined by the San Luis Obispo General Plan Noise Element,or general noise levels in excess of standards established in the Noise Ordinance? b) A substantial temporary,periodic,or permanent increase in X ambient noise levels in the project vicinity above levels existing without the project? c) Exposure of persons to or generation of excessive groundbome X vibration or grotmdborne noise levels? d) For a project located within an airport land use plan,or within X two miles of a public airport or public use airport,would the project expose people residing or working in the project area to excessive noise levels? The General Plan Noise Element establishes standards and procedures for protecting noise-sensitive uses from stationary and mobile noise sources. Noise attenuation measures such as land use limitations, distance separation between land toes (i.e. noise buffers), earth berms, and where appropriate and no other feasible measure exists, noise walls. New residential development must be consistent with the Noise Element and Noise Ordinance standards. The Draft Housing Element Update encourages the production of affordable housing through development of non-conventional housing, including mixed residential-commercial.housing,"work-live"and"live-work"housing,and high-density downtown housing above commercial uses. In these types of housing, special attention must be paid to use compatibility, of which noise is a key factor. Lind use and design measures, such as building design and construction, types of adjacent commercial uses and hours of operation, environmental control systems, and location of building entries and exits will be considered on an individual project basis to assure compliance with adopted noise standards. Conclusion: No impact. 12. POPULATION AND HOUSING. Would theproject: a) Induce substantial population growth in an area, either directly X (for example by proposing new homes or businesses) or 1,2,3, indirectly (for example, through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing or people X 111111111101111 CITY OF SAN Luis GBIsPo 12 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2003 Issues, Discussion and Suppor n., information Sources Sources PC,.-i..ly Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER#33-02 Issues Unless Impact Mitigation Inco necessitating the construction of replacement housing elsewhere? General Plan policies seek to achieve a sustainable level of growth through the City's planned buildout in 2022. The Plan says the city housing supply should grow no faster than one percent per year, averaged over a 36-month period. This is to assure population growth does not exceed the City's ability to assimilate new residents and to ensure municipal services are available for new and existing residents. Under the General Plan Land Use Element(LU 1.11.2)and the Residential Growth Regulations(SLOMC Ch. 17.88),dwellings affordable to persons with very-low or low incomes are excluded from the City's one percent growth target. As required by state law, the Draft Housing Element Update includes Quantified Objectives showing the number of units the City expects to accomodate in each income group during the planning period from January 1, 2001 to July 1, 2008. The City's proposed Quantified Objectives are shown in Table 1, below. Under the Draft Update, the City would expect to accommodate up to 4,087 new dwellings. Of these, 2,167 units will be targeted for very-low and low-income households. An additional 1,178 units will be located on state-owned land, outside city limits and not subject to city land use controls. Consequently,during the Housing Element planning period,(4,087—2,167- 1,178=742),742 non-exempt dwelling units are expected to be developed. The resultant annual average residential growth rate during the planning period is 0.51 percent. This is within the allowed average residential growth rate of one percent per year. Table 1 Regional Housing Need Allocation,January 2001-July 2008 City of San Luis Obispo Income Group Number of New Quantified Objectives Dwellings Allocated. Very Low 1,484 1,390 Low 844 777 Moderate 870 817 Above Moderate 1,185 1,103 TOTAL 4,383 4,087 Source: City of San.Luis Obispo,Community Development Department According to the Regional Housing Needs Plan adopted by the.San Luis Obispo Council of Governments,San Luis Obispo's Regional Housing Need Allocation (RHNA) during the planning period is 4,383 dwellings. However state housing law (Article 10.6, Section 65583(b)(2) of the California Government Code) recognizes that total housing needs identified for a jurisdiction may exceed available resources and the ability of the jurisdiction to satisfy this need within the context of state and local General Plan requirements. Under these circumstances, a jurisdiction's quantified housing objectives need not be identical to the total housing needs. San Luis Obispo has evaluated its ability to accommodate the RHNA number of 4,383 dwellings by July 2008. Limited water supplies prevent the City from achieving the.RHNA number within the planning period. The problem is chiefly one of timing, since there is sufficient land suitable for residential development to accommodate the RHNA number within the planning period, and additional water supplies are planned which would allow this number of dwellings to be achieved over a longer period As shown in Table 1, the City's quantified objectives are less than the RHNA number. The Quantified Objectives include: Dwellings built and granted occupancy during the period from January 1, 2001 through July 31, 2003; Dwellings expected to be built and receive occupancy between August 1, 2003 and December 31, 2003; potential residential development between January 1,2004 and July 1,2008,based on anticipated water supplies;and construction of up to 1,178 dwellings on state-owned land for Cal Poly University students,faculty and staff. Achieving the Quantified Objectives is contingent upon the City having adequate funding to undertake the necessary capital improvements for the expanded water conservation and groundwater programs in 2005 and 2006, adding water resources to serve 2,276 additional households, and upon private development decisions and economic factors outside of city control. And while the attainment of these housing objectives is theoretically possible given available land resources and expected mad CITY OF SAN LUIS OBISPO 13 INITIAL STUDY ENVIRONmF-NTAL CHECKLIST 2003 1 -Lp ) Issues, Discussion and Suppor[n._ Aormation Sources Sources Po.,_ .y Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER#33-02 Issues Unless Impact Mitigation IncorporateA water and sewer capacity, it is highly unlikely this number of dwelling units will actually be produced without significant local,state or federal assistance. Conclusion: Less than significant impact., The Draft Housing Element Update and Quantified Objectives are consistent with the residential growth anticipated by the General Plan and allowed by the Residential Growth Management Regulations. Achieving residential growth projections are contingent upon availability of water supplies and adequate funding to secure water resources,and on private development decisions and economic factors outside City control. 13.PUBLIC SERVICES. Would the project result in substantial adverse physical impacts associated with the provision,or need,of new or physically altered government facilities,the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios,response times,or other performance objectives for any of the public services: a) Fire protection? 1,2,3, X 4,5 b) Police protection? X c) Schools? X d) Parks? X e) Roads and other transportation infrastructure? X Other public facilities? X The 1994 Final EIR on the Land Use and Circulation Element Updates noted that Public Services, including schools,police and fire services, parks, and general City administration were considered"marginally adequate" to meet current needs. In 2003, demands for public services continue to expand and municipal resources available to meet those demands face new challenges due to national economic factors and state fiscal policies. While purely economic or social effects are not considered environmental impacts under CEQA unless there are related physical effects, City policies do require that adequate facilities and services be in place before new development is approved. City policies call for new development to "pay its own way",and for costs of new development not to be shifted to existing residents. As noted above,public assistance may be needed to achieve affordable housing objectives, meet expanded needs for public services, and not increase costs to existing residents. City Utilities,parking facilities, recreation facilities and programs,and to a limited degree,public schools, are enterprise-funded in that they provide services that are, at least in part, funded by service users and new development. Other public services, like emergency services, general city administration, capital improvements, like roads, bridges, and public buildings, rely on city General Finds for operation, maintenance and improvement. City fees on new development, including water, wastewater, traffic, park, and affordable housing fees; and school fees are collected with most new development to offset added costs and service needs created by the project. The City monitors theadequacy of its public services and evaluates each major new residential development in terms of its ability to serve new residents. If additional service capacity is needed, new development will be responsible for providing funding or facilities in proportion to the increased need. Draft Housing Element Update policies and programs call for the City to solicit new funding sources to assist in the development of affordable housing and to work with other jurisdictions in the County to establish an Affordable Housing Fund to help produce affordable housing. The City of San Luis Obispo already has an Affordable Housing Fund that can be used to offset costs to provide additional infrastructure orservices for new affordable housing developments. This and other funding sources will be needed to meet the Quantified Objectives. Conclusion: Less than significant impact. New residential development will be required to provide or help fund its proportional share of the cost of additional public service or facility needs. 14.RECREATION. Would theproject: a) Increase the use of existing neighborhood or regional parks or X other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b) Include recreational facilities or require the construction or X expansion of recreational facilities,which might have an adverse CITY OF SAN LUIS OBISPO 14 INITIAL STUDY ENVIRONMENTAL.CHECKLIST 2003 Issues, Discussion and Support— iformation Sources Sources Pi. _ Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER#33-02 Issues Unless Impact Mitigation Incorporated physical effect on the environment? Same as above. Conclusion: Less than significant impact. 15. TRANSPORTATION/TRAFFIC. Would theproject: a) Cause an increase in traffic which is substantial in relation to the X existing traffic load and capacity of the street system? b) Exceed,either individually or cumulatively,a level of service X standard established by the county congestion management agency for designated roads and highways? c) Substantially increase hazards due to design features(e.g.sharp X curves or dangerous intersections)or incompatible uses(e.g. farm equipment)? d) Result in inadequate emergency access? X e) Result in inadequate parking capacity onsite or offsite? X f) Conflict with adopted policies supporting alternative X transportation(e.g.bus turnouts,bicycle racks)? g) Conflict with the with San Luis Obispo County Airport Land X Use Plan resulting in substantial safety risks from hazards,noise, or a change in air trafficpatterns? Refer to Section 3,Air Quality. Conclusion: No impact. 16.UTILITIES AND SERVICE SYSTEMS. Would the roiect: a) Exceed wastewater treatment requirements of the applicable X Regional Water Quality Control Board? b) Require or result in the construction or expansion of new water X treatment,waste water treatment,water quality control,or storm drainage facilities,the construction of which could cause significant environmental effects? c) Have sufficient water supplies available to serve the project X from existing entitlements and resources,or are new and expanded water resources needed? d) Result in a determination by the wastewater treatment provider X which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitment? e) Be served by a landfill with sufficient permitted capacity to X accommodate the project's solid waste disposal needs? f) Comply with federal,state,and local statutes and regulations X related to solid waste? The Draft Housing Element Update includes Quantified Objectives that take into account service capabilities of existing and planned water and wastewater treatment facilities. New development is contingent upon the availability of adequate water supplies and water treatment capacity. Based on the 2003 Water Resources Status Report prepared by the City's Utility Department,the City can reasonably expect to have up to 1,084 acre feet of water available to support new housing during the planning period — enough water for up to approximately 2,276 new dwellings. Draft Housing Element Update policies assume the development of up to 2,909 planned in-city dwelling units during the planning period will use up to, but not exceed, the 1,084 acre feet expected to be available. This also assumes funding is available to provide the necessary capital improvements,and may hinge on the availability of state or federal funding to achieve the Objectives. �� CITY OF SAN LUIS OBISPO 15 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2003 Issues, Discussion and Suppon.. '.iforriiation Sources Sources Pa Potentially Less Than No GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER#33-02 Issues Unless Impact Mitigation Incorporated Attachmpnt Conclusion: No impact. Based on planned service capacities and assuming adequate public funding is available,the City will be able to serve up to the number of in-city units anticipated in the Draft Housing Element Update. If funding is not available through local,state or federal sources,the Quantified Objectives may not be achieved during the planning period. 17.MANDATORY FINDINGS OF SIGNIFICANCE. a) Does the project have the potential to degrade the quality of the X environment,substantially reduce the habitat of a fish or wildlife species,cause a fish or wildlife population to drop below self- sustaining levels,threaten to eliminate a plant or animal community,reduce the number or restrict the range of'a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? Individual development projects' impacts on natural and cultural resources will be evaluated and mitigated regardless, consistent with.CEQA and with City General Plan policies. The proposed Update will not affect City policies on protecting and enhancing biological or cultural resources or preclude the City from achieving reservation goals. b) Does the project have impacts that are individually limited,but X cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of the past projects, the effects of other current projects,and the effects of probable futureprojects) The Draft Housing Element Update would accommodate up to 2,909 in-city dwelling units in a 7 %year period. Over %of these units are targeted to be affordable to very-low and .low-income households and exempt from Residential Growth Management Regulations. Consequently, the Draft Element is consistent with General Plan Land Use Policies regarding residential growth. Cumulative implications of General Plan policies are addressed and mitigated in the Land Use Element Final EIR. It also found identified significant, adverse impacts of cumulative growth factors, despite mitigation, for which findings of overriding considerations were made with regard to conversion of agricultural land to urban uses, accommodating a regional share of anticipated regional growth within the urban reserve line, and increases in population, employment and housing. c) Does the project have environmental effects which will cause X substantial adverse effects on human beings,either directly or indirectly? ONCECITY OF SAN LUIS OBISPO 16 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2003 18.EARLIER ANALYSES. Earlier analysis may be used where,pursuant to the tiering,program EK or other CEQA process,one or more effects have been,adequately analyzed in an earlier EIR or Negative Declaration. Section 15063 (c) (3) (D). In this case a discussion should identify the following items: Attachm a) Earlier analysis,used. Identify earlier analyses and state where they are available for review. Final Environmental Impact Report, Land Use and Circulation Element Updates; available at the Community Development Department,990 Palm Street,San Luis Obispo,CA 93401.. b) Impacts adequately addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. See attached Resolution No. 8332 excerpt, summarizing environmental impact, mitigation, monitoring and overriding considerations from the 1994 Land Use Element update. i) imtigadon measures. For effects that are"Less than Significant with Mitigation Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which theY address site-specific conditions of the project. The Draft Housing Element Update is consistent with the General Plan Land Use Element and must also be guided by the mitigation that applies to that document. 19. SOURCE REFERENCES. I General Plan Digest, City of San Luis Obispo. 2• Final Environmental Impact Report, Land Use Element/Circulation Element Updates, City of San Luis Obispo,August 1994. 3. Draft General Plan Housing Element Update, City of San Luis Obispo,August 2003. 4. 1999 Guide to the Environmental Quality Act, Solano Press Books, October 1999. 5. 2003 Califomia Environmental Quality Ad, CEQA Guidelines, Consulting Engineers and Land Surveyors of California. 6. 2001 Clean Air Plan,San Luis Obispo County, San Luis Obispo County Air Pollution Control District. 7. Final Environmental Impact Report, Clean Air Plan, SLO County, San Luis Obispo County Air Pollution Control District, November 1991. 8. Getting to Smart Growth— 100 Policies For Implementation, International City/County Management Association ICMA , March 2002. 9. General Plan Safe Element, City of San Luis Obispo,July 2000. 10. General Plan Noise Element and Noise Guidebook, City of San Luis Obispo, May 1996. Attachments: 1. Draft Housing Element Update 2. Excerpt,Resolution No. 8332 approving the Land Use/Circulation Element Updates and summarizing environmental impacts,mitigation and monitoring, and overriding considerations. JWLJHOUSMGELEMENTUPDATE/TNMALSTUDYER33-02 Attachment RESOLUTION NO. 8332(1994 SERIES) A RESOLUTION-OF THE SAN LUIS OBISPO CITY COUNCIL MAKING NVIRONMENTAL DETERMINATIONS, ADOPTING A REVISED LAND USE ELEMENT OF THE GENERAL PLAN, AND APPROVING A GUIDE TO ZONING CONSISTENCY The Council of the City of San Luis Obispo resolves as follows: 1. Record of Proceedings The City Council has reviewed and considered the Planning Commission recommendation, the staff recommendation, correspondence, and public testimony concerning the revised Land Use Element. Council also has received the Planning Commission recommendation, the staff recommendations and background material for the Circulation-Element update. The Council has reviewed.and considered the draft Environmental Impact Report(EIR), EIR Supplement, and comments and responses on them. These environmental documents covered both the Land Use Element update and the Circulation Element update. These items are on file in the office of the City Clerk. The City Council conducted eleven public hearings during .April through July 1994 concerning the Land Use Element update. The minutes of those hearings indicate Council members' votes on particular components of the revised element which may differ from the vote on this Resolution. 2. Public and Agency Review Drafts of the revised Land Use Element have been widely available for review and comment by interested agencies and individuals. Copies have been provided to the San Luis Obispo City-County Library and the Cal.Poly Library. Copies have been-provided to agencies whose jurisdiction is related to planning within the area, including the County of San Luis Obispo, the County Airport Land Use Commission, the Local Agency Formation Commission, the Council of Governments, and California Polytechnic State University. 3. Certification of Environmental Impact Report A draft Environmental Impact Report (State Clearinghouse No. 92101006) and an EIR Supplement have been prepared and circulated for public and agency comment, and responses to substantial environmental issues have been prepared, all pursuant to the California Environmental Quality Act ("CEQA") and the State and City CEQA Guidelines. D_Q R'17 Attachment Resolution No. 8332 Page 2 �) �l The final EIR consists of the following parts: A. The draft Environmental Impact Report ("EIR"), January 1993; B. Comments and responses. for the draft EIR, as presented to the Planning Commission May 5, 1993, including evaluation of an alternative corresponding with build-out of the previously adopted Land Use Element; C. The draft Environmental Impact Report Supplement ("Supplement"), September 1993, concerning certain land use alternatives; D. Comments and responses for the draft EIR Supplement, as presented to the Planning Commission December 1, 1993. Council hereby finds that it was not necessary to recirculate the draft EIR with the alternative of building out the adopted Land Use Element, because the impacts of that alternative were of the same in hind, and within the range of severity, of impacts associated with other alternatives evaluated in the draft EIR, as demonstrated in the response to comments. Council has considered how changes to the Land Use Element proposed during the hearings may affect the environment, and has determined that further environmental review is not needed because the adopted element corresponds with the project and alternatives evaluated in the draft EIR and Supplement. Council finds that the final EIR addresses all potential environmental impacts in sufficient detail. Mitigation measures to reduce potential impacts to a level of insignificance will be implemented, or overriding considerations exist which justify approval of the project despite potentially significant impacts, as fully set forth in Part 4 below. Council hereby certifies the final EIR. A copy of this Resolution, indicating the approved mitigation and monitoring program, shall be published as part of the final EIR. 4. Status of Environmental Impacts Mitigation and Monitoring. and Overriding Considerations Council hereby determines that the status of impacts is as follows, for the Land Use Element. Council finds that certain standard mitigations, mainly in the form of adopted City policies and standards, and the requirements of other agencies, will not be changed by adoption of the revised Land Use Element, and will remain in effect to help reduce impacts resulting from development consistent with the Land Use Element. These standard mitigations have been summarized under the discussion of "regulatory environment" within the EIR. I -�� ( r Attachment Page 3 Resolution No. 8332 The draft EIR, Supplement, and comments and responses covered the Land Use Element update and the Circulation Element update. The Circulation Element update is to be adopted by separate Council action. When the revised Circulation Element is adopted, Council will make additional determinations concerning that element. Any changes to the Circulation Element, which would result in potentially significant impacts not adequately addressed in the EIR hereby being certified, will require supplemental environmental review. Likewise, any changes to the Circulation Element which would reduce the effectiveness of mitigation for circulation-related impacts will require further determination by the City Council when that element is adopted. A. Not significant with project as proposed; no special monitoring of mitigation measures required or proposed: (1) Street character; (2) Park land availability; (3) Wildland fire hazard; (4) Electrical power service; (5) Natural gas service; B. Not'significant with mitigation as recommended by the draft EIR or EIR Supplement: Note: Monitoring of approved mitigation measures will be provided through the annual report on implementation of the General Plan, in addition to any other reports noted below. (1) Pedestrian obstruction by sound walls Mitigation summary: Policy 2.2.12.H modified. Monitoring: City will avoid noise walls in major expansion areas, and review plans for sound walls in other developments. (2) Land use at Vachell Lane extension: Circulation Element issue (extension recommended to be eliminated). (3) Land use at.South Street extension: Circulation Element issue (Planning Commission recommends extension be eliminated; Public Works Department recommends that it be included; see item D.9 below). Attachment 3 Resolution No. 8332 Page. 4 (4) Transit service not adequate for expansion areas Mitigation summary: City will adopt, update, and implement Long Range Transit Plan. Monitoring: City will consider transit plan when preparing specific plans for expansion areas. (5) Fire protection service demands and response time Mitigation summary: City will make more efficient use of existing resources than assumed in EIR, hire additional personnel as needed, collect impact fees for new facilities, add/relocate fire station if needed, obtain County airport fire station (or reciprocal response agreement). Monitoring: City will consider progress on mitigations before PQ adopting budgets and specific plans. (6) Police protection service demands Mitigation summary: City will hire additional personnel as needed, collect impact fees for new facilities, add substation if warranted. Monitoring: City will consider progress on mitigations before adopting budgets and specific plans. (7) General City governmental service demands (excluding utilities) Mitigation summary: City will improve productivity, and hire additional personnel as needed. Monitoring: City will review service levels before adopting budgets and specific plans. MR (8) School facilities adequacy Mitigation summary: School District will use "Measure A" bond funds and impact fees, and specific plans for expansion areas will provide for dedication of school sites. Monitoring: City and School District will consider progress on mitigations before adopting specific plans and budgets. Attachment 7j Resolution No. 8332 Page 5 (9) Wastewater (sewage) collection and treatment demands Mitigation summary: City will expand treatment capacity, funded by impact fees; collection system will be expanded, with developer installation, impact fees, or special assessments. Monitoring: City will consider progress on mitigations before adopting specific plans and development approvals. (10) Construction noise Mitigation summary: City will limit construction hours, require equipment maintenance and operation limits, and portable noise barriers. Monitoring: City will establish or revise standard contract provisions for its own projects and conditions of approval for other projects. (1.1) Traffic noise levels - existing and new streets Mitigation summary: City will reduce traffic speeds through limits or physical features, and require developments to attenuate noise through setbacks, berms, or walls. Monitoring: City will conduct project-level environmental assessments and check development plans. (12) Stationary (commercial, industrial) noise sources [See also C(3) below] Mitigation summary: City will require developments to attenuate noise through site arrangement and setbacks, walls, limits on hours of operations or loading/delivery. Monitoring: City will conduct project-level environmental assessments and check development plans. (13) Indoor noise levels from airport operations Mitigation summary: City will require developments to attenuate noise:as provided in Noise Element design standards. Monitoring: City will conduct project-level environmental assessments and check development plans. t'U9 Attachment 3 Resolution No. 8332 Page 6 (14) Construction air pollution Mitigation summary: City and Air Pollution Control District (APCD) will require developments to control dust and combustion emissions. Monitoring: City will conduct project-level environmental assessments, check development plans, inspect work in progress. (15) Santa Rosa park carbon monoxide (CO),concentration Mitigation summary: City will relocate existing play equipment closer to parking area when it needs to be replaced. Monitoring: City will request APCD to measure CO at proposed play equipment location to verify acceptability before relocating. (16) Construction water quality impacts, and (17) Oil/grease in urban runoff Mitigation summary: Regional Water Quality Control Board will administer permits for projects disturbing more than five acres; City will require buffer along waterways in expansion areas. Monitoring: No separate monitoring required. :-'(18) Flooding in expansion areas Mitigation summary: City will establish adequate creek setbacks in expansion areas. Monitoring: Adequate setbacks will be determined in specific plans. (19) Biological resources (excluding Sacramento Drive extension) Mitigation summary: City will implement (1) "biological resource protection program" for proposed development sites, (2) riparian and wetland mitigation, (3) sensitive flora taxa preservation, (4) coastal sage scrub restoration and limited fire . hazard fuel modification, and (5) revised landscaping guidelines to include native plants and exclude invasive nonnative plants. Monitoring: City will conduct CEQA project review and implement Open Space Element; include tally of habitat types and amounts lost or restored in annual report on General Plan. Attachment 3 Resolution No. 8332 Page 7 (20) Aesthetics: noise.walls, street facades, street & parking landscaping Mitigation summary: City will revise architectural review guidelines for public and private projects, concerning noise walls, landscaping, and entry presentation; specific plans will establish setbacks in expansion areas. Monitoring: General plan annual reports and Community Development Department two-year work programs. (21) High voltage power lines field exposure Mitigation summary: City will establish program for notification of owners .within 250 feet of power transmission line, and assure that specific plans for Margarita and Orcutt areas show school site separation in accordance with State standards. Monitoring: General plan annual reports and environmental determinations for expansion area specific plans. (22) Growth inducement of road extensions in open space areas Mitigation summary: General: policy 1.7 and 1.8 modified; Specific: some road extensions proposed to be eliminated. Monitoring: Project-level environmental review. (23) Human health hazards - evacuation routes. Mitigation summary- County annual review and update of emergency response plan will include evacuation points and routes as development occurs in southern part of City. Monitoring: Environmental review and plan approval for specific plans: Airport, Margarita, Orcutt. (24) Seismic and other geological hazard exposure - warehouse store merchandise in area of high ground shaking. Mitigation summary: Assessment of shelf and merchandise stability and restraint system recommendations at time of building permit. Monitoring: City plan check. Attachme,.,:3 Resolution No. 8332 Page 8 C. Not significant with mitigation revised from that recommended by draft EIR or Supplement; revised mitigation measures are found to address the same concerns to the same level as recommended, but in a manner more consistent with other City policies: �J (1) Water usage in San Luis Obispo area Mitigation summary: Development of additional water supplies; no net increase in water use from new development until adequate supplemental supply is available(safe yield basis for planning); water conservation programs. Monitoring: Annual water operations plan, quarterly and annual water allocation/offset report; project-level environmental review. (2) Land use - airport safety and outdoor noise exposure Mitigation summary: Changes reflected in adopted Land Use Element Map; City will include protection in Airport Area, Margarita Area specific plans. Monitoring: Specific plan environmental review; project-level environmental review, in case Airport Area Land Use Plan changes. (3) Noise exposure - commercial & industrial development Mitigation summary: City will revise Zoning Regulations and Architectural Review Guidelines, with reference to Noise Element design standards. Monitoring: City will conduct project-level environmental assessments and check development plans. (4) Water quality & flooding - natural drainage .. Mitigation summary: Policy modified to reflect Open Space Element. Monitoring: Project-level environmental review. (5) Water quality & flooding - porous paving ' Mitigation summary: Modified policy (6.4.7) added to Land Use Element. Q Monitoring: Project-level environmental review. -qa P Attachment 3 Resolution No. 8332 Page 9 (6) Cultural, archaeological resources Mitigation summary: Modified policy (6,6.4) added to Land Use Element. Monitoring: Project-level environmental review. (7) Aesthetics - scenic corridor standards Mitigation summary: Adequately addressed by modified Land Use Element policies (1.7.5, 1,.9.4, 6.0.3, 6.2.5) Monitoring: Project level environmental review. (8) Aesthetics - downtown building heights Mitigation summary: Policy of draft Land Use Element retained. Monitoring: Project-level environmental review. (9) Human health hazards - hazardous material routes Mitigation summary: Modified policy (2.2.12.J) added to Land Use Element. Monitoring: Project-level environmental review. (10) Utilities & resources - landfill capacity Mitigation summary: Modified policy 1.15 added to Land Use Element. Monitoring: Project-level environmental review. (11) Pedestrian safety Mitigation summary: Draft Circulation Element policies revised. to address concern. Monitoring: City will review development projects, design its own facilities in conformance, and consider policies during preparation.of capital budget. (12) Traffic - Highway 227 high occupancy vehicle lane Mitigation summary: City will advocate that lanes added to regional highways be for high occupancy vehicles. Monitoring: City will participate in Regional Transportation Plan updates. (13) Land use conflicts Mitigation summary: Changes to Land Use Element map to minimize adjacency of residential and nonresidential uses in the Airport Area. Monitoring: General plan annual reports and environmental determinations for expansion area specific plans. ' Attachment 3 Resolution No. 8332 Page 10 D. Significant,adverse impacts, despite proposed mitigation, for which findings D of overriding considerations are hereby made (numbered items below). Throughout these findings, reference is made to "a reasonable share of anticipated regional growth." The determination of a reasonable share is based on the Wowing facts. Determination of a reasonable share follows consideration of 0 sometimes conflicting State policies and mandates, including protection of air quality and open space (including prime agricultural land), responding to the Regional Housing Needs Assessment, and following the intent of the California Environmental Quality Act. Additional population and economic activity can have adverse environmental impacts wherever they occur. Generally, those impacts are less severe if the growth is within or adjacent to an existing urban area, compared to growth in rural areas. State and County populations are projected to increase between one percent and two percent annually for the next thirty years, based on recent trends. The City alone cannot change those trends. The City's planned residential and nonresidential growth rates --slightly more than one percent— are at the low end of the range projected for the State and the County. The City's share of projected State and County growth is determined to be reasonable because the increase is not significantly higher or lower than the State or County increases. Growth rates which are higher or lower than planned by the City could attract to San Luis Obispo, or deflect from it, adverse environmental impacts associated with growth. (1) Prime agricultural land conversion to urban use Overriding consideration: Accommodating a reasonable share of anticipated regional growth within the urban reserve line, contiguous to existing development, while preserving land outside the urban reserve line. t (2) Street widening land-use impact: Higuera Street, High to Marsh t Overriding consideration: Accommodating projected traffic levels (due I to reasonable share of anticipated regional growth), at acceptable level of I service, and providing a bike lane connection. 94 I Attachment 3 Resolution No. 8332 Page II (3) Street widening land-use impact: Santa Rosa Street, Olive to Foothill Overriding consideration: Accommodating projected traffic levels (due - to reasonable share of anticipated regional growth) at acceptable levels of service. (4) Statewide (cumulative) water usage increase Overriding consideration: Accommodating a reasonable share of anticipated regional growth within the urban reserve line. (5) Aesthetics -. change from rural to urban character Overriding consideration: Accommodating a reasonable share of anticipated regional growth within the urban reserve line. (6) Traffic - unacceptable levels of service at certain major intersections and along most arterial streets Overriding consideration: Accommodating projected traffic levels (due to reasonable share of anticipated regional growth), while avoiding significant land-use and aesthetic impacts that would follow from adding or widening roadways and changing intersections, and the City's inability to substantially change people's individual travel choices.. O Biological and aesthetic impacts in riparian area - Sacramento Drive extension Overriding consideration: Providing alternate traffic route (reduced arterial roadway congestion) and emergency access in a location where, riparian impacts can largely be mitigated through on-site, in-kind enhancement of degraded riparian area. Note: Council previously approved road extension in concept when acting on development plan for adjacent business park. (8) Population, employment, and housing number of workers likely to increase more than number of residents, resulting in additional commuting, with secondary impacts to energy consumption, air pollution, and traffic levels of service. - - Attachment Resolution No. 8332 Page 12 Overriding, consideration: Maintaining San Luis Obispo's fiscal health and hub role, and avoiding further expansion of residential development into open space areas. (9) Land use impacts at South Street extension Overriding consideration: Providing emergency_ access to the Johnson Avenue area if the main fire station is located at Broad and South Streets and the Laurel Lane station is closed. 5. Internal Consistency Council hereby determines that the revised Land Use Element and the proposed revision of the Circulation Element are consistent with all elements of the General Plan. (1 6. Conformance with State Law and Guidelines e Council hereby determines that the revised Land Use Element conforms with requirements of the California Government Code and the advisory General Plan Guidelines of Q the State Office of Planning and Research. 7. Regional Housing Opportunities Council hereby finds that the revised Land Use Element does not contain a policy or p program limiting the number of dwellings which may be constructed on an annual basis. However, by phasing the development of residential expansion areas in conformity with growth management goals, the revised Land Use Element may operate to limit the number of housing units which may be constructed within a period of years.. In fulfilling the intent of California Government Code Section 65302.8, Council hereby makes the following findings: A. Regional Housing Needs. The City has determined that approximately 5,300 additional dwellings can be accommodated by the land use designations and allowed densities contained within the Land Use Element, and that the intended growth rate will allow this capacity to be used within about twenty-five years. The City has further determined that the "Regional Housing Needs Assessment" assignment for San..Luis Obispo of 5,128 dwellings by July 1, 1999, was based on inaccurate data and is neither appropriate nor achievable within the identified time frame. Attachment,� Resolution No. 8332 Page 13 The rate of population growth on which regional housing need allocations were based is not likely to be achieved, because of San Luis Obispo County's recessionary economic conditions from 1991 through 1994, State population projections, and resource constraints. Through its General Plan, the City intends to manage residential and commercial growth so that new development occurs in an orderly manner and can be adequately served by utilities and public services like police, fire, schools, parks and recreation, and general government for the health, safety and welfare of its citizens. Modification of the Housing Element and Land Use Element policies to accommodate State-mandated growth targets would represent a fundamental policy shift, since both the previous and revised Land-Use Elements encourage gradual development outward from the City center. Accommodating the City's assigned share of regional housing need by 1999 would exhaust the land and water resources designated in the General Plan to meet the City's residential needs over the next 25 years. B. City Actions to Expand Housing Opportunities. The City is undertaking programs and activities to expand housing opportunities for all income groups and for those working within the City, as, specified in the draft Housing Element scheduled for adoption September 6, 1994. Further, the revised Land Use Element contains policies and programs which will expand housing opportunities for all income groups and for those working within the City, through provision of sites for additional multifamily housing within identified expansion areas and through density bonuses linked to transfer of development credits. C. Public Health Safety, and Welfare. Adoption of the revised Land Use Element will promote the public health, safety, and welfare by: (1) Strengthening the City's long-term fiscal health so that the City can provide adequate levels of service; (2) Assuring that adequate resources and services needed for new development will be made available concurrent with that development; (3) Protecting the natural environment and air quality to the extent possible within a region where population increase is expected; (4) Maintaining or enhancing the relatively high level of services enjoyed by City residents; Attachment -�p Resolution No. 8332 Page 14 (5) Assimilating new residents at a pace which preserves the community's social fabric, safety, and established neighborhoods; (6) Promoting residents' opportunities for direct participation in City government and their sense of community. D. Limited Local Resources. There are limited fiscal and environmental resources available to the City which can be devoted to meeting demands of additional residential development. Programs to remove or mitigate these constraints are I discussed in the Housing Element and the Water and Wastewater Management Element. However, several constraints to housing production remain which cannot feasibly be overcome within the time frame of the Regional Housing I Needs Assessment. These are: (1) Availability of Water. The City's growth projections assume that adequate resources and public services are available. Housing growth beyond the relatively small number of dwellings which can be built through the water offset (retrofit) program depends on successful City efforts to secure additional water supplies. (2) Public Facilities and Services. Schools, police and fire services, parks, and general City administration are currently considered marginally adequate to meet current needs, according to the EIR. To meet the City's assigned share of regional housing need would require 15 additional fire fighting personnel, 19 sworn police officers, and approximately 88 other full-time City staff; would generate demand for an additional 76 acres of neighborhood and district parks; and require additional faculty and classroom space to accommodate 2,364 students, assuming services are maintained at current levels. The capital costs of meeting these public services needs under the plan would exceed the City's and school district's financial resources, and result in significant financial hardship and public safety impacts. (3) Environmental Impacts. According to the EIR, significant adverse impacts to circulation, agricultural land, and aesthetics are likely to result from accommodating the proposed residential growth. Although growth impacts cannot be entirely mitigated, the 25-year planning time frame allows development of additional mitigations or adjustments to the planned 0 development capacity if proposed mitigations prove to be inadequate. p Accommodating an equivalent amount of residential growth within the compressed time frame of the Regional Housing Needs Assessment would Attachment 3 Resolution No. 8332 Page 15 result in significant adverse impacts and threaten public health and safety due to inadequate public facilities and services.. (4) Local Conditions Affecting Land Use. Unique physical characteristics, including steep topography, the need to preserve prime agricultural lands within and adjacent to the City, and the unique visual qualities of the City's volcanic morros and open spaces have guided the City's land use and planning policies. 8. Repeal of Previous Element The 1977 General Plan Urban Land Use and Growth Management Element,as amended, is hereby repealed, on the effective date of the revised Land Use Element. 9. Adoption of Revised Element The revised Land Use Element, consisting of a text and maps dated August 1994, on file in the City Clerk's Office, is hereby adopted. 10. Publication and Availability The Community Development Director shall cause the newly adopted element to be published and provided to City officials, concerned agencies, and public libraries, and to be made available to the public at a cost not to exceed the cost of reproduction. 11. Effective Date The newly adopted element shall be effective on the thirtieth day after passage of this Resolution. 12. Zoning Consistency The Council intends, within a reasonable time of adopting the revised Land Use Element, to make the Zoning Regulations and the official zone map consistent with the revised element. Because some names of land use districts are being added or changed, Council hereby approves the following as a guide to zoning consistency, pending a comprehensive revision of the Zoning Regulations and official zone map. ATTACHMENT ATTACHMENT 4—ADVISORY BODY MINUTES At the time of Council staff report preparation, minutes were not available for several Planning Commission meetings at which the Draft Housing Element was discussed. The transcripts for the Planning Commission meetings of October 22, 29, November 12, December 3 and December 17 will be forwarded to Council under separate cover on Friday, January 23. However, the routine "Planning Commission Meeting Updates" have been previously provided to the City Council through the meeting of December I7, 2003. � 'bv Planning Commission Min._6� Attachment 4 August 27, 2003 Page 14 Commr. Boswell supported staff' position and felt the issues discussed should be reviewed by the ARC. AYES: Commrs. Aiken, Cooper, Ca Loh, Boswell NOES: Commrs. Christianson and Osborn REFRAIN: None ABSENT: None The motion carries on a 5:2 vote. It was ted the ARC should review the project and resolve those design issues prior to the pro eturning to the Planning Commission. 4. Citywide. GPA and ER 33-02, Environmental scoping of the Housing Element Update. This is an opportunity to gather information from the public regarding the potential environmental impacts of the project that need to be evaluated in the environmental determination. It is not intended to be a hearing on the merits of the project. Therefore, members of the public should keep their comments focused on potential significant changes to the environment that may occur as a direct result of the Housing Element implementation. It is also an opportunity for the public to ask specific questions about the Housing Element and what is proposed. (Continued from August 13, 2003) (Mike Draze) Michael Draze, Deputy Community Development Director clarified the staff recommendation. He felt that it might appear that staff is suggesting that the Commission take an action on a negative declaration at this meeting, which is not the case. He clarified that the Commission will be reviewing the environmental document, but the City Council will be taking the final action. He explained this is not a required meeting, but rather a chance to get an early review of the environmental issues of the Housing Element Update, as well as receiving comments and suggestions from the public. He also noted he would be asking the Commission to set up some special meetings to review the Housing Element document. After discussion, October 1st and October 29th were decided as special meeting dates on the Draft Housing Element. Jeff Hook, Associate Planner, presented the staff report, explaining an environmental study had been prepared on the draft Housing Element that evaluates 17 different environmental factors. Based on that analysis, the report concludes that the Draft Housing Element Update will not have adverse environmental effects that have not already been discussed as part of the 1994 Final EIR on the Land Use and Circulation Element updates. If additional environmental study is determined to be needed, this meeting can serve as a scoping session to identify the issues that need to be addressed in further environmental studies. Planner Hook emphasized that the Draft Housing Element Update is a very preliminary document that meets the minimum State requirements for Housing Elements. Although the basics are there, the document will likely undergo changes during the public hearing process. He felt the main environmental issue is residential growth. I. � � I Planning Commission Min. __s August 27, 2003 Attachment 4 Page 15 PUBLIC COMMENT Chairperson Osborne noted he was given a memo from a citizen who was unable to stay to this late hour, who felt the Negative Declaration is not satisfactory and an in- depth EIR is needed. Marybeth Schroeder, 2085 Wilding Lane, supported residential growth for homeowners and families, and opposed more rental units and apartment complexes. COMMISSION COMENTS Commr. Loh moved to adopt a resolution supporting the preparation of a Negative Declaration of environmental impact based on Initial Environmental Study 33-02, and the goals policies and programs in the Draft Housing Element Update dated August 13, 2003. Seconded by Commr. Boswell. AYES: Commrs. Aiken, Caruso, Osborne, Loh, Boswell and Christianson NOES: None REFRAIN: None ABSENT: Commr. Cooper The motion carried on a 6:0 vote. COMMENT AND DISCUSSION: 5. Staff A. Agenda Forecast. September 23`d: Special joint meeting with the City Council to review the Conservation/ Open Space Element Update at 7:00 p.m.. ADJOURNMENT With no further business before the Commission, the meeting adjourned at 12:05 a.m. to the next regular meeting of the Planning Commission scheduled for Wednesday, September 10, 2003. Respectfully Submitted Diane Stuart Management Assistant I .4a l7rh 'JJ- v/. Attachment 4 SPECIAL "TOWN HALL" MEETING SAN LUIS OBISPO PLANNING COMMISSION MINUTES OF OCTOBER 1, 2003 CALL TO ORDER/PLEDGE OF ALLEGIANCE: The San Luis Obispo Planning Commission was called to order at 7:00 p.m. on Wednesday, October 1, 2003, in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California. ROLL CALL: Present: Commissioners Jim Aiken, Allan Cooper, James Caruso, Alice Loh, Michael Boswell, Carlyn Christianson, and Chairperson Orval Osborne Absent: None ACCEPTANCE OF THE AGENDA The agenda was accepted as presented. Chairperson Osborne opened the public meeting and noted this was an informal "Town Hall" meeting for the purpose of gathering public input regarding the progress of the Draft 2003 General Plan Housing Element. Staff provided a brief PowerPoint presentation focusing on what the General Plan Housing Element Update process is about. PUBLIC COMMENTS: Sandra Nielson, 71 Zaca Lane, complained of the difficulty of retaining employees due to high housing costs in San Luis Obispo. She stated that Cal Poly students rarely stay on after graduation and that recruiting employees has become nearly impossible in recent years due to housing costs. She also has issues with the density requirements and believed the lack of three- and four-bedroom dwellings is due to density constraints. She felt higher densities would easily be attained if government constraints were removed. She would like to see the allowance of secondary dwelling units on non- conforming lots, an increase in the number of dwelling units allowed on lots, and an easing of parking requirements. Jerry Bunin, 2078 Parker St. Suite 21.0, Central Coast Homebuilders Association, felt that in general, the Draft Housing Element was a good first step, but felt the Housing Element needed to be more incentive driven, and less requirement-driven. He supported exempting affordable housing and downtown housing from growth management, establishing a housing programs manager and first time homebuyers' Planning Commission Mint,. =Town Hall Meeting AttaChment 4 October 1, 2003 Page 2 assistance. Regarding policy 5.2.4 on Housing Variety and Tenure, he insisted that five units is too low of a threshold to require a mix of unit types. He thought this requirement would, in effect, act as a no growth policy, and encouraged staff to talk with builders to see how many units would be needed to make it work. He was supportive of program 6.3.14 on Housing Production and exempting residential developments of four units or less from architectural review. Regarding inclusionary housing in-lieu fees, he did not feel the City should disallow payment of in-lieu fees by residential developments to meet Inclusionary Housing requirements because it is money in the bank for affordable housing. He disagreed with the demand management section on market forces and believed that the housing supply and demand imbalance has caused the affordability problem. He stated that demand cannot be controlled, but supply can be increased. Requiring citizens to only sell their homes to those already in the area is unfair. He wants staff to focus on 5.2.4 and inclusionary housing. Andrew Carter, 1283 Woodside Drive, and Housing Task Force member, noted that some Task Force recommendations were incorporated into the Housing Element and others were not. He said the Task Force never collectively reviewed the Draft Housing Element Update and he did not want the Task Force involvement in the Housing Element Update process to be oversold. He felt some aspects of the Housing Element conflict with Task Force recommendations, and some recommendations are not addressed in the Draft Housing Element. He suggested that staff create a matrix to compare and contrast the two documents. He also suggested that the current Housing Element be compared to the Draft Housing Element. Mr. Carter felt that Inclusionary Housing Requirements are not consistent with Task Force recommendations. They did not make a recommendation to remove the in-lieu allowance, did not make a recommendation to increase the requirements in expansion areas, but they did make the recommendation that the housing requirements for commercial development in expansion areas are too low compared to residential requirements. He felt commercial development is creating the housing need and should have stricter requirements for inclusionary housing. Expansion areas already have requirements such as the 50% requirement for open space. He did not feel that new development should have to pay in-lieu fees and build all of their own infrastructure. He suggested that if affordable housing was a community-wide need, the community should share in the cost to develop affordable housing. He also felt that trying to increase the affordable housing requirements further is problematic. Tom Swem, Housing Element Update Task Force member, stressed the dynamic diversity of the Task Force in that it represented a cross section of the community. He acknowledged the consensus reached on many issues by its members. He strongly recommended looking at the task force document because of the great amount of consensus reached. He felt that the `Town Hall" meetings are an excellent forum for discussing these issues and encouraged incentive programs over requirements. He did not feel that rezoning the downtown office is appropriate and felt there is an inconsistency between the table on p174 (0 box down) with programs 3.3.5 and 3.3.6 (p30), which effectively rezones the office zoning that is in the downtown. He believed 1 r O 1 Planning Commission Mir,_ :s-Town Hall Meeting Attachment 4 October 1,2003 Page 3 the Task Force supported planned development of residential in the downtown to generate a number of residential units at once (e.g. Wineman Hotel), but did not support the demand scenario for other commercial properties. He preferred the emphasis of incentive programs to bring more housing to downtown. Marguerite Bader, President of the League of Women Voters of SLO County, noted they are preparing a study of workforce housing in the county. The League felt the Draft Housing Element is an encouraging blueprint for residential growth, and that it will be an effective tool. It addresses the genuine need for housing among the group that is earning below 120% of the median income, encourages density bonuses, and allows mixed and inclusionary zoning as well as second units, and promotes infill development. It demonstrates a genuine effort to remove the barriers inhibiting the construction of low- and moderate-income housing and seeks creative ways to finance such construction. Tom Kentrel, opposed the whole State Regional Housing Needs "exercise; and was disappointed in the San Luis Obispo Council of Governments for caving in to State demands. He felt the State has no concept of build-out, as expressed in the City's General Plan, and felt it was dishonest to assume that cramming everyone by increasing density will prevent urban sprawl. Everyone voted to accept the State Housing and Community Development process that assumes no constraints. We should not presume that anything is going to change the next time it comes around, and the State will simply increase housing demands. Nobody likes density for its own sake; we like density because it is cheap. He referred to the whole issue regarding incentives versus requirements; requirements say that new development should pay for itself while incentives say they should help pay for affordable housing. Coastal California counties have higher prices. (Santa Barbara, Orange County, Monterey, San Diego County have higher median prices.) Programs to help certain people gain housing take money from one to help another. He would like to see a more direct transfer of wealth approach because it would be more efficient. Paul Brown, observed he is one of a small group of people his age (35 years) living in the City of San Luis Obispo.. He felt that people his age cannot buy a home in San Luis Obispo. The City has not been producing the housing hoped for over the last 20 years. He felt we are not creating affordable housing and in many instances we are creating no housing and no growth whatsoever. He felt it is terrible that the people that work in this area cannot even come close to living here. He felt we must work with private industry to create incentives; if we don't, it will not only exacerbate the problem here in our city, but will expand out to create problems with other cities within the county. We cannot expect other cities within this county to deal with our problem. We need to create some of the housing that is necessary for our workforce. Mary Beth Schroeder, 2085 Wilding Lane, was concerned about the City being demolished by people coming in from the outside. She felt the City should not need to copy what other States or communities are doing. She is disappointed that single-family neighborhoods are not being promoted anymore. She stated that 60% of our homes were being converted to rentals for Cal Poly students. She felt San Luis Obispo has ( -9c Planning Commission Minim_ Town Hall Meeting October 1, 2003 Attachment 4 Page 4 become a haven for developers and real estate. The town has changed: meters, junk shops, congestion, and cars bumper-to-bumper. Many of her friends are moving away because they are losing the peace and tranquility that they used to enjoy. She does not like the rentals, noise and drunkenness prevalent today. She does not want to see changes in the zoning or open space. Steve Barasch, Housing Element Update Task Force member, said he develops infill housing for a living, and noted the median family income in SLO County is $57,000; in Santa Barbara it is $61,000. The average price of a house in Santa Barbara is $850,000 for a single family home; in the City of San Luis Obispo it is over $640,000 (excluding condominiums). He noted one cannot find a livable 2-bedroom 1-bath home for much less than $500,000 in San Luis Obispo today. He felt San Luis Obispo city had the largest affordability gap on the central coast, since the ratio of median income to median housing price in SLO is about 9.8. He felt single-family homes are being created on the urban edges of our community and the percentage of homes being built in the infill area is probably less than 10-15%. If the median family home is in excess of $640,000 and the income approaches $50,000 it is obvious that people are priced out of the market in the percentage of what they can afford versus what they can acquire is very limited. He noted that a subcommittee of the task force came up with income categories of "extremely-low" or "very-low" income; people making minimum wage, essential for providing essential services and making the city operate. The other category was an "above moderate" category, those that earn 120-160% of the median family income ($90,000 to $95,000). They still can't qualify for a market rate 2-bedroom 1-bath home with the above moderate category. Mr. Barasch emphasized that density bonuses were the most realistic and appropriate way to expand affordable housing. He suggested considering three criteria: 1) How efficiently the land is used 2) How much affordable housing is created in a given project, and 3) the location factor that San Luis Obispo city is more expensive than the rest of the county. Mr. Barasch further noted that building infill housing within San Luis Obispo is difficult. He said it takes at least one year to get through the process. He noted that San Luis Obispo has a very strict zoning ordinance and performance standards that don't allow flexibility to vary parking, setbacks, height, and solar access. He believed big, bold moves were needed to change this. He felt R-1 zoned areas are sacred, yet Community demographics have changed, and the community is becoming imbalanced. The imbalance between rental and ownership housing is growing and there is tension between renters and their neighbors who own their homes. Young people and families cannot afford to live here. Cal Poly graduates cannot afford to stay here. He suggested looking at what the Task Force has recommended to redefine affordable housing. He felt the City must find a way to build affordable housing in less than a year. Sal Orlando, 962 Mill Street, explained that he is a real estate agent. He enjoys helping young people get into a property and find creative ways to do so. He claims that home buying has become more and more challenging and would like to see prices go down I r U W Planning Commission Mi. :s-Town Hall Meeting Fi[ic- jLch ent 4 October 1, 2003 Page 5 so that more people can buy homes. He liked the work done so far on the Draft Housing Element, but doubts the policies will ever be truly effective or that it will ever be affordable to live in this community. He also felt more incentive-based programs should be included. He believed that in-lieu fees for residential developments in expansion areas should not be eliminated because they support affordable housing. He suggested that be easier for developers to build "green building designs" by giving developers incentives. We should review the requirements for relocation and replacement of units. To encourage builders to want to build they need incentives. He felt that fees are so out of line with other cities that developers are more willing to build elsewhere. The demand management (goal 10.1) of not enticing persons from elsewhere to move to the City needs to be reviewed as well. Gary Fowler noted that there were no seniors or students on the Housing Element Update Task Force. He felt that low-interest loans should be given to people in lower- paying jobs as well as to City department heads, as well as helping them financially. Housing units above business should be a priority; seniors and students would love to live in them. Students don't want to live on campus. They want to get out of that atmosphere because Cal Poly doesn't allow drinking, smoking, parrying, and doesn't provide space for them to do things (work on cars). Because of the outrageous taxes that property owners are forced to pay, they have to raise rents to cover their costs, and since students are more willing to pay the higher prices, they consume most of the rental housing instead of families. He felt that given the State's budget problems, the City probably won't get many housing grants from the State. Al Barrow, 700 EI Morro Ave., Los Osos, spoke representing The Coalition of Low- Income Housing. He explained they are promoting a program "Lease to Own" for low- income families to find housing as well as a tax credit program. He suggested the City encourage developers to include low- and very-low income in exchange for fast-tracking their projects to help ensure financial feasibility for new housing developments. The for- and non-profit community must come together to make this workable. He felt height allowances should be increased in some areas. Mr. Barrow further noted that a healthy vacancy rate is about 5-6%. He said in San Luis Obispo the vacancy rate has been near 0% for the last 5 years. Keeping the supply up would help keep the vacancy rate up. We should retain a balanced housing stock to sere all elements of the community (i.e., Warren County, Ohio). Some SLO families double up on housing in order to function, and some work 2 or 3 jobs per household, thus creating latchkey children and other social problems. He claimed we've lost 1,500 students and good teachers last year, and felt this was due to the lack of affordable housing. We should allow mixed-zoning in the low-income areas. He suggested the City address the need for Single Room Occupancy (SRO) dwellings as a step up for homeless people. He felt the high cost of housing encourages homelessness. Ybi Van Ekeren, 731 Santa Ysabel, Los Osos, suggested that General Hospital be renovated for semi-independent living for seniors. She felt that many of the amenities were already in place to support older people. She suggested that perhaps the main Planning Commission Min. Town Hall Meeting AttaChmcnt 4 October 1, 2003 Page 6 floor could be used for a dining area and shops. If General Hospital could house seniors, then it would open up homes to other people. Michael Sullivan, 1127 Seaward St., suggests that we review Policies and Programs: • 2.3.6 (p28) exemption of all new dwelling units that meet the City's affordable Housing Standards from certain fees. • 2.3.13 (p29) exempting residential units affordable to moderate-income households from certain fees. o For the above two points, he thinks it is a good idea but suggests that we need a way to enforce this on a long term basis. If regulations are in place, we need to think of the time frame involved for keeping the units affordable (20 years, 30 years?) • 2.3.10 (p28) What does "most" mean? R-2, R-3, R-4, R-1, everything? Is it really appropriate in R-3 and R-4 zones? • 5.2.4 (p31) Regarding variety of types, sizes and tenure, what is the policy going to be on condominiums? Recommended ratio of condominiums versus other units? • 6.2.3 (p32) Regarding the rationing of City services, though it is a good policy, however it isn't being 'implemented at the current time (Dalidio proposal, Frume Ranch) • 6.3.5 (p33) How are single-family home areas going to accommodate new development? How will they fit in? What kind of standards? Mr. Sullivan felt that in the expansion areas, we are seeing mostly traditional low- density single-fami)y developments and some multi-family units proposed, but not at nearly high enough densities. He suggested we follow a European model with very high densities in a compact urban core to preserve farmland. Also, we should consider changing the zoning ordinance to allow certain areas to have minimum density requirements. Paul Rys, P.O. Box 1502, insisted that people will always come flooding into San Luis Obispo and that housing prices are driven by market forces, not by government or realtors. We can build all we want (like Santa Diego), but that isn't going to stop prices from going up. If we want prices to stop going up, people have to stop having babies. Good workers cannot afford to live here. Not increasing jobs will not slow down the demand for housing. The government has to get involved and create permanent affordable housing. It cannot be sold by the private party for the free market price in 5 years or 20 years or 30 years. The last person to own it would be profiting and then the government would have to do it all over again. Economic forces are global. Welcome to California, the land of unaffordability. Prices are not unaffordable here, because if they were, real estate would not be selling as it has been. He expressed some confusion of the 23% of people who can afford to buy.. Chairperson Orval Osborne clarified that it is based on median family income. Planning Commission M. _ 's-Town Hall Meeting October 1, 2003 Attachment 4 Page 7 Mr. Rys also commented on the diversity of the Task Force and their reaching agreement. He felt it must mean that something is going on. This affordability problem affects all of us. If we could close the doors on California and prevent people from having babies, prices would stop going up. The State, has no concept of build out. At some point, we need to tell them that we have finite resources and that we can't continue to grow indefinitely. Biz Steinberg, 1030 Southwood Dr., Executive Director, Economic Opportunity Commission of San Luis Obispo County and member of the Housing Element Update Task Force, noted that in 1978, Head Start Program families were living in homes, not campgrounds, or three families in a house. Now, some of the same families are homeless. People can no longer save up in 3 or 4 months to be able to move out and afford rental housing; 6 to 8 months is more common. She suggested renovating hotels to provide single room occupancy opportunities for single, working homeless people and also recommended more transitional housing to help low-income families transition into the new affordable housing. She said organizations like EOC need affordable rentals for entry-level employees. She's also looking at first-time homebuyers programs. She suggested the City consider increasing height limits and preserve affordable housing. Frances Meenan, 2249 Glenn St., Los Osos, said she doesn't want to see San Luis Obispo turn into the Bay Area. She was impressed by the balance in the community and loves the locally-based economy. She also brought up the issue of entitlement to own a home, and felt that the ability to purchase a home is not a "right' for everyone. People need incomes to sustain their ability to live here. It is a choice made on their ability to pay. She expressed her fear of increased residential density because she associates it with the problems, such as crime, that comes with it. Europe might be a great model, but we are not Europe. She is satisfied with the.status quo and is happy that the government has been able to do as good a job as they have. She is concerned about maintaining the balance that we have here. Brett Cross, 1217 Mariners Cove, spoke of inclusionary housing and the impact that it has on the amount of housing being.built. He felt that if one looks at other areas with inclusionary housing, it's apparent that high 'inclusionary housing requirements have not discouraged developers from building market rate housing. He felt developers build what is being demanded - large single-family homes. He felt the Planning Commission should ask developers for specifics about what incentives are needed to enable them to build affordable housing in SLO. He noted the student population has a tremendous impact on housing prices in SLO; students can split rent cost five ways, making it less expensive per person, but making it more difficult for families to rent because the price is so high. He felt Cal Poly should continue with their on-campus housing programs, and supported the no net-loss housing policy to discourage downtown housing conversion to offices. He felt we are losing houses to conversion and need to have a program to stop that from happening. He asked if affordability agreements end at 30 years, and if so, they should be lengthened. The last person to Planning Commission Mi, -Town Hall Meeting October 1, 2003 - Attachment 4 Page 8 sell (from the affordable to the free market price) receives a windfall. He felt that many people don't want to live in higher density communities because they assume high- density developments lack amenities like private open space, large yards, etc. The City should create design standards so people will want to live in those areas. Mr. Barasch did not like the idea of smaller lot sizes with large houses, and felt if lots get smaller, the homes on those lots should be smaller also. He asked, why build above moderate units when we're talking about affordable housing. He thought the above- moderate number is too high, and that specific sites need to be designated for manufactured housing (mobile homes). He suggested a requirement that commercial projects build housing. He felt that charging more than the market rate defies the laws of economics. All Barrow, 700 El Morro Avenue, Los Osos, spoke in support of the San Luis Obispo County Housing Trust Fund, which has only about $225,000 and is still in the development stages. He said it has hired its first director, but doesn't have any housing funding money yet. He encouraged the City to help provide a permanent revenue stream for it and encouraged the City to partner with other cities and the county in that effort. Jerry Bunin, 2078 Parker St. Suite 210, did not feel that new development and affordable housing should pay for itself if the community places community value in it. The entire burden should not fall on the new homeowner. Someone has to pay for the subsidies for low- and very-low market housing. Developers build lower density because it will be approved. Builders do not want to sell expensive homes because it is difficult to find buyers. They want to sell homes affordable to more people so that they have less risk. Developers don't feel that higher density, good quality projects will be approved by government. Affordability is a community value; everybody has to buy in. More money would be raised by putting a 1% real estate transfer tax on every home that sold in SLO than would be raised by putting a 20% tax on new housing. Andrew Carter, 1283 Woodside Drive, noted the school district decides if a new school is going to be built. It has been made clear that the current number of elementary schools can handle the projected needs of the new elementary students created by all of the construction in the south end of town (Orcutt and Margarita). They have so much capacity already that they could close another school and wouldn't need it for another 5 to 10 years. It was his opinion that there is no need for an additional school. Ybi Van Ekeren, 731 Santa Ysabel, Los Osos, felt it is possible to build low-income housing. She talked of unfinished houses that could be finished by the owner while they are living in them, or may not be finished at all (incremental housing, build as you need it). There were no further comments made from the public. ( - 9D Planning Commission W_ .!§-Town Hall Meeting _ Attachment 4 October 1, 2003 Page 9 COMMISSION QUESTIONS: Commr. Boswell • How many non-conforming lots by size are there in town? • Should we simply prefer building housing to the in-lieu fee? What would a policy like that look like? • In-lieu fees leverage $5 - $13 of additional dollars for housing. Staff look into that and comment. • Can we write the policy on building affordable units to provide flexibility for constrained sites? • Can a no net loss policy for housing in the downtown be treated more as an area wide goal and not a site-specific regulation? More of a principal? • Should we anticipate HCD's next round and what it means to our concept of build out for SLO and our attempts to deal with affordability currently? Should we also be thinking one more step ahead with regard to our policies and what that may mean? • How often can we really use density bonuses? • On enticing people to move from other areas, isn't the point to reduce investment and speculation from outside areas? Equity refugees? Attraction of employees? More tailored policy. • What is the status of the General Hospital Property and have we talked to the county about doing anything with that? • If we reduce or eliminate fees where will, or can, the revenue difference be made up? • Can we provide incentives that would really achieve a result and a significant change in housing prices? Are prices so demand driven that it will overwhelm most incentive techniques? Cost effectiveness of incentives. Commr.. Cooper • P34, 6.3.11 Timeline on developing multifamily housing design standards • P39, 10.2.2 Are we talking about a commercial growth cap? • P40, Preventing new housing in hazard areas? Rezone areas? • P40-41 Explore the lease-own incentive program. • P46 table 5 Affordable student-housing living units? • P142 and later, Why is public coordination not needed? • P150 Why are city promotional practices not needed? Explanation. • P156 10.3.0 Was this taken into consideration around the rezone site locations? • P160 How do we maintain standards if we waive ARC review for 4 units or less? • Why didn't recommendations that did get consensus from the Task Force find their way into the document? (ex: FARs instead of maximum housing densities p163, utilizing unoccupied hotel buildings in downtown p172, maximizing solar access and usable outdoor space p168). Planning Commission W. -Town Hall Meeting Attachmorit 4 October 1, 2003 Page 10 Commr. Loh • Comparison with the 1994 Housing Element. • Affordable housing is great, but we can't prevent building of above moderate housing because there is a need there as well. • We are trying to help those people who work here and already live here rather than enticing the people from out of town. • General terms about downtown area, downtown core, and downtown planning area. Which is what? • Incentives for industrial and business people? • Table D-1 review. Lots of land in C-S & C-N. Include housing or more heavily emphasize it. C-R says less than 1 acre. Check numbers. FUTURE MEETINGS: • October 8th: Two-hour hearing: Detail about goals, policies, programs. • October 22nd: Recommendations for changes (molding the final document). • October 29th: Summary review and recommendations compilation. ADJOURNMENT: The meeting adjourned at 10:15 p.m. Respectfully submitted, Teri Bowen Planning Intern - Attachment 4 City of SA1 l LUIS OBISPO Department of Co--M,nits nevelnnment OBISPO Division October 28, 2003 TO: File GPA/ER 33-02: Citywide Jeff Hook,Associate Planner FROM: Michael Draze, Deputy Director of Community Developme4� SUBJECT- Review goals, policies and programs of the Draft General Plan Housing Element Update; including Environmental Review. The Planning Commission, at its meeting of October 22, 2003, took public testimony and discussed the Draft Housing Element goals, policies and programs. No formal Action was taken. cc: County of SLO Assessor's Office ( -q3 Attachment 4 � City Of SM WIS OBISPO nepartment of Community n vpinrmrant Planning Division November 5, 2003 TO: File GPA/ER 33-02: Citywide Jeff Hook, Associate Planner FROM: Michael Draze, Deputy Director of Community Developmerrf6G_/ SUBJECT: Review goals, policies and programs of the Draft General Plan Housing Element Update, including Environmental Review. The Planning Commission, at its meeting of October 29, 2003, took public testimony and discussed the Draft Housing Element goals, policies and programs. No formal action was taken. cc: County of SLO Assessor's Office Attachment 4 C4Of SM l W,S OBISW Department of Community neyelnnment "J Planning Division November 1$, 2003 TO: File GPA/ER 33-02: Citywide Jeff Hook, Associate Planner FROM: Michael Draze, Deputy Director of Community Developmen#/(—I,.-I SUBJECT: Review goals, policies and programs of the Draft General Plan Housing Element Update, including Environmental.Review. The Planning Commission, at its meeting of November 12, 2003, took public testimony and discussed the Draft Housing Element goals, policies and programs. No formal action was taken. cc: County of SLO Assessor's Office Attachment 4 Clay Of SM WIS OBISW nenartment of C_nm unitm nevpinpRlPnt Planning Division December 12, 2003 TO: File GPA/ER 33-02: Citywide Jeff Hook, Associate Planner FROM: Michael Dr , irector of Community Development SUBJECT: Review goals, policies and programs of the Draft General Plan Housing Element Update, including Environmental Review. The Planning Commission, at its meeting of December 3, 2003, took public testimony and discussed the Draft Housing Element goals, policies and programs, and the Housing Element Update Task Force recommendations. It completed its review of the policy matrix presented at the October 22nd meeting, reviewing each draft policy or program and HEUTF recommendation for possible inclusion in the Draft, with or without changes. Commissioners directed staff to revise the Draft, listing specific changes and additions, and to return with a "Planning Commission Draft" at the Commission's December 17th meeting. No formal action was taken. cc: County of SLO Assessor's Office - fi iaCili'i1ont 4 Cray pO Or SM JUIS OBISDepartment of comma inatm neyelonmpnt "J r "1" Planning Division December 29, 2003 TO: File GPA/ER 33-02: Citywide Jeff Hook, Associate Planner FROM: Michael Dr ep irector of Community Development SUBJECT: Review goals, policies and programs of the Draft General Plan Housing Element Update, including Environmental Review. The Planning Commission, at its meeting of December 17, 2003, forwarded the Draft Housing Element Update to the City Council and recommended that the City Council: 1) Approve a Negative Declaration of environmental impact, and 2) Approve the 2004 Council Hearing Draft Housing Element Update. The action of the Planning Commission is a recommendation to the City Council and, therefore, is not final. This matter has been tentatively scheduled for public hearing before the City Council on January 27 and January 29, 2004. These dates, however, should be verified with the City Clerk's office at (805),781-7102. cc: County of SLO Assessor's Office Attachment 4 Ci ►/ Of SM US 0B,SW [department of Comm, nity 11pvpinnment �+� T Planning Division September 18, 2003 TO: File ARC 33-02: Citywide Jeff Hook, Associate Planner FROM: Mike Draze, Deputy Director of Community Developmene�' SUBJECT: Review goals, policies and programs for Draft General Plan Housing Element Update The Architectural Review Commission, at its meeting of September 15, 2003, took public testimony and discussed the Draft Housing Element policies and programs, particularly those related to design review. No formal action was taken. cc: County of SLO Assessor's Office Attachment 4 CHC Minutes, Regular Meeting of September 22, 2003 Page 2 density for the R-4 zone. Mary Beth Schroed spoke in opposition to the project and said the buildings should not be demolished. Chairperson Juelke Carr closed the public he 'ng and asked for comments from Committee members. The Committee agreed that the buildings had undergone alterations and had deteriorated to the point that there was not mu integrity left. The setting of the buildings also compromised the potential of the building to ave historic significance. The Committee urged the applicant to preserve features of the buil ' gs that can be reused. The Committee discussed the photo-documentation requirements for project and stated that large-format black and white photography should be required. On a -0 vote (Carr, Crotser), the Committee determined that the Historic Resources Assessment dra accurate conclusions and that the project will not have an impact on significant historical reso ces. move a 3. Citywide. GPA/ER 33-02. Draft Housing Element Update and Initial Environmental Study. Michael Codron presented the staff report and described the major components of the Draft Housing. Element Update. He discussed the CHC's role in reviewing the document and discussed the particular policies that relate directly to CHC matters. He suggested that the Committee use the written staff report to work through those policy areas in particular. Mary Beth Schroeder provided public comment and suggested that the City should be repairing older historic homes, without making them larger, for young families that need housing. There was no further public comment. After much discussion, the Committee agreed to provide the following recommendations to the Planning Commission and the City Council: 1) In the absence of a new City-wide survey of historical properties,the City should generate a list of properties that were built between 1944 and 1958, which have become 50 years old since the last.Housing Element update, to be evaluated by the Cultural Heritage Committee for historical significance. 2) The Branch Street neighborhood, roughly bordered by High Street, South Street, Beebee Street and Broad Street should be surveyed for significant historical properties. 3) The City should develop a list of masonry homes as part of implementing Safety Policy 1.3.4, and should investigate different programs and funding available nationwide for the rehabilitation of these buildings, many of which may have historical significance. 4) The City should develop a list of buildings and structures that use clinker bricks as a structural component or as veneer. The list should be evaluated to determine if the historic use of these bricks constitutes"unique or landmark neighborhood features" under Policy 3.2.6. Attachment 4 CHC Minutes, Regular Meeting of September 22, 2003 Page 3 5) To encourage rehabilitation,rather than demolition of older homes, Policy 3.2.1 should be more specific. Examples of things the City could do to encourage rehabilitation should include parking reductions and relaxations of other property development standards that make it difficult to redevelop properties with existing buildings. 6) The plan should include specific references to, and photographs of, the neighborhoods that we cherish and whose character we want to emulate in our new development. 7) The first sentence of Policy 6.3.11 should be more specific by stating, "Promote attractive, well-integrated higher-density housing by developing multi-family housing design standards that reflect the traditional architectural style and predominant landscaping types for a given neighborhood." A 8) The plan should encourage the rehabilitation of existing, underutilized industrial buildings for housing, and-should encourage the construction of new mixed-use buildings in that historic industrial character. 9) It should be City policy to preserve historic commercial signage on buildings that are rehabilitated for residential use. COMMENT AND DISCUSSION: 4. Consider a proposal to instaran-0e ric monument to the Japanese-American community of San Luis Obispoippon Tract. Bruce Miller,Applicant. Bruce Miller described the proposal andt he would.like to place the monument in the Brook Street Park, but that he is also coplacing it on private property across the street. Michael Codron mentioned that if the over the Cal Trans yard at the end of Brook Street, as planned for in the Mid-Higuerment Plan, there would be more opportunities for the monument. The Committee.genported the proposed monument and suggested that Mr. Miller contact City staff to fithe required review process for installing the monument. 5. Summary of course findings frigh Density Housing Infill Development in Historic Districts.class at Cal PoI3 University. Committee member Crotser. Committee member Crotser said that .hi students needed additional time to augment their findings and that he would present a final p oduct at the October meeting. 6. Discuss the possibility of devel 'ing a CHC brochure to describe the Cultural Heritage Committee's role an duties, and to offer guidelines for public participation so that comments s on topic and constructive. ^ � DD /V ��7/dam r✓� The Price of Oranges What if you went to Scolari's, and asked the Produce Manager the price of a dozen oranges. And he answers: "They're two dollars a dozen,but if you only want four, they're free. And, if you will take 20, then they're free, too." Well, that's a little like the latest version of the Inclusionary Housing Requirement. [Please refer to Tables 2 and 2A in"Goal 2.1: Affordability"in the Draft Housing Element. They're on page 7 of the "Draft Housing Element Update"in the Councilmember package, and on pages 27 and 28 of the January 27,2004 revision of the draft.] Let me introduce myself: I'm Phil Gray,part of a local family-owned homebuilder Mid-State Properties. We own a small parcel in the Orcutt Area Specific Plan area, and hope to build homes there. Most of the Draft Housing Element is just fine, and we can live with it. But the effect of Tables 2 and 2A could stop us. Let me explain. First, two small points: I'm referring to the lower half of Table 2, as it relates to construction in 'expansion areas'. Second, I'll refer to `paying'the Inclusionary Housing Requirement as if it were money,because, of course, it is: money spent on homes that must be sold at a huge loss to a very few,really lucky people.. I want to make two points tonight: 1. It makes no sense to base the Inclusionary Housing Requirement(IHR) on quantity of units. A.For 1,500 sq ft homes: 1. if I build 1 to 4 homes, I pay 0%M. 2. If I build 5 thru 19,I pay a 15%II-R. 3. If I build 20 or more(with a density 24/ac) , I pay 0% M again! (And 12 units/acre density would only cost 3.75%) B For 3,000+ sq ft homes, the result is entirely the opposite: 1. If I build 1 to 4, I pay zero IHR. 2. If I build 5 through 19, 1 pay 15% 1HR. 3. If I build 20 or more(on lots larger than 6,223 sq ft) I pay 30%! These rules make no sense at all. They encourage small land-inefficient projects, and discourage larger,more efficient ones. Rather, the same IHR should apply regardless of quantity. Why exempt fewer than 5 units? They can pay the in-lieu fee. �. Page Now, for the second point: 2. The heart of Table 2A is a matrix of factors that are intended to multiply the 15% IHR fee in Table 2,based on project density and home size. The effect of the matrix is to reduce or eliminate the M fee on smaller homes. The Home Builders Association has (or will) advised you that the factor should be zero for homes up to 1,500 sq. ft., to encourage the production of smaller homes. We agree. But more is needed. The factors increase with increasing home size until they double the IHR, to a confiscatory 30%. This rate is unjust,because it unfairly penalizes those needing larger homes. Homebuilders have no choice but to pass the IHR on to their homebuyers. Why should the buyer of a 3,100-sq-ft home pay a 30% M "tax"--twice what a 2,000-sq-ft home would pay, and perhaps eight times what a 1,500-sq-ft home would pay? Each home has already paid all the impact,water, sewer, school, park, and road fees that are intended to pay their fair share of community costs related to their home.. And, statistically,the occupants of a large home,while paying more property taxes, will be less of a burden on community services (schools, police, fire, etc.) than the occupants of a smaller one. But this high IHR rate is also counterproductive; the 30%rate will result in fewer market-rate homes being built, and that will reduce the number of.Affordable homes built. The net result will be fewer homes built, making our City's hosing problem worse, not better. The answer into cap Table 2A's factor at 1.Don't put a counterproductive `penalty' factor on larger homes; they're not the problem. The problem is that Affordable homes aren't economically feasible. And that problem won't be solved by putting a greater burden on the backs of homebuilders and homebuyers. This change simplifies both tables;seethe enclosed `Proposed Changes': 1. In the heading of Table 2's second column, delete the words `549 Dwellings' 2. Also delete the middle column,titled `Residential, 20 or more dwellings' 3. In Table 2A: a. change the heading of the second column from `Up to 1,200' to `Up to 1;500.' b. delete the third column,now headed '1,201-1,5 00'. C. in the fourth column,headed `1,501-2,000', change the last factor from 1.25' to '1'. d. change the heading of the fifth column from `2,001-2,500' to `>2,000', and change each factor to `1'. e. delete the last two columns,now headed `2,501-3,000' and `>3,000'. Thank you. Phil Gray orPrice0fOranges2.wps 1/27/2004 Table 2 Inclusionary Housing Requirement Type of Development Project Residential,5-19 Dwellings Residential 20 or Commercial more Dwellin 2,1s Build 3%low or 5%moderate Adjust base Build 2 ADUs per acre,but not less cost Affordable Dwelling Unitsrequirement per than l ADU per project; c N (ADUS2),but not less than 1 Table 2A e ADU per project; Or Uo or e W pay in-lieu fee equal to 5%of pay in-lieu fee equal to 5%of building c building valuation.; valuation. 0 u ° m Build 5%low-and 10% Build.2 ADUs per acre,but not less ..7 u moderate-cost ADUs,but not than 1 ADU per project; less than 1 ADU per project; Adjust base or c� a o or requirement per Table 2A pay in-lieu fee equal to 5%of building e pay in-lieu fee equal to 15%of valuation. ., building valuation. 'Developer may build affordable housing in the required amounts, pay in-lieu fee based on the above formula, or dedicate real property. Affordable Dwelling Units must meet City affordability criteria listed in Goal 1.22. Building Value" shall mean the total value of all construction work for which a permit would be issued, as determined by the Chief Building Official using the Uniform Building Code. TABLE 2A Project Inclusionary Housing Requirement Density Adjustment Factor2 (Density Units/Net Average Unit Size (sq.ft) Acre)' Up to 1,201-1,500 1,501-2000 2,001-2,500 2,501- >3,000 1,200 3,000 36 or more 0 0 .75 1 1.25 1.5 24-35.99 0 0 .75 1.25 1.25 1.5 12-23.99 0 .25 1 1.25 1.5 1.75 7-11.99 0 .5 1 1.5 1.5 1.75 <7 0 .5 1.25 1.5 1.75 2 'Including allowed density bonus,whcre applicable. ZMUltiply the total base Inclusionary Housing Requirement (either housing or in-lien percentage) by the adjustment factor to determine requirement. Table 2 Inclusionary Housing Requirement Type of Development Project Residential esidential 20 or Commercial ore Dwellin s Build 3%low or 5%moderate Adjust base Build 2 ADUs per acre,but not less cost Affordable Dwelling Units quirement r than 1 ADU per project; E N (ADUS2),but not less than l Table 2 T.Q ADU per project; Or = c or c a pay in-lieu fee equal to 5%of pay in-lieu fee equal to 5%of building c building valuation.; valuation. 0 ° Build 5%low-and 10% K2Apay 2 ADUs per acre,but not less a Ea moderate-cost ADUs,but notthan 1 ADU per project; oNless than 1 ADU per project; or or lieu fee equal to 5%of building pay in-lieu fee equal to 15%of valuation. building valuation. 'Developer may build affordable housing in the required amounts, pay in-lieu fee based on the above formula, or dedicate real property. Affordable Dwelling Units must meet City affordability criteria listed in Goal 1.22. 3iBuilding Value' shall mean the total value of all construction work for which a permit would be issued, as determined by the Chief Building Official using the Uniform Building Code. TABLE 2A Project Inclusionary Housing Requirement Density Adjustment FactorZ (Density Average Unit Size(sq.ft.) Units/Net Acre)t Up to 1, 01-1,50 1,501-2000 3,00O®OA,50' 00 36 or more 0 0 _75 1 .2 .5 24-35.99 0 .75 ' 1 5 12-23.99 0 1 15 1 7-1.1.99 0 .5 1 ( 5 71 77- 'Including .5 ` iy6 I 175 2 Including allowed density bonus,where applicable. 2Multiply the total base Inclusionary Housing Requirement(either housing or in-lieu percentage) by the adjustment factor to determine requirement. Linda C. Dalton. Co-Chair, City of San Luis Obispo Housing Element Update Task Force January 27, 2004 Testimony to San Luis Obispo City Council Regarding Consistency between SLO Housing Element Update Task Force Report and Legislative Draft Report I have reviewed Chapter 3,Goals,Policies and Programs of the Legislative Draft in some detail, and would like to offer the following comments regarding the consistency of the Legislative Draft with the Task Force Report. Task Force co-chair Sam Blakeslee has seen a draft of this analysis and generally concurs that the Planning Commission accepted the intent of many Task Force proposals but that the Task Force provided more detail regarding a number of features—neighborhood quality, sustainable design, infill, incentives (particularly density bonuses), and scaling parking and other standards to encourage the production of more affordable housing. Other members of the Task Force also received a draft of my comments, but most have not had time to respond. The following summary covers each of the Housing Element goals. 1.1 Safety—The Task Force recommended somewhat stronger code enforcement policies than those in the Legislative Draft,but the intent is consistent. .2. 1 Affordabilitv— a. The Task Force proposed to broaden the definition of affordability to include an "extremely low" level at the lower end and an "above moderate"level at the higher end to recognize that existing housing is not "affordable" to moderate income families. The Planning Commission did not accept.our broadened definition, but the Legislative Draft does clarify the definition in the 1994 Element. b. In addition, the Task Force took a different approach to inclusionary housing than the one that emerged from the Planning Commission. I think the Planning Commission approach incorporates some of the intent of the Task Force discussions—primarily, differential treatment of different kinds of development that favors affordable housing. c. The Task Force called for a thorough review of current policies. The Legislative Draft recommends a similar program, although the Task Force stated our proposal more strongly. 3.1 Housing Conservation—Task Force members raised concerns regarding the distinction between conserving the number of units in an area, such as Downtown, s 1 vs. protecting the units themselves. The Legislative Draft incorporates some of our discussion regarding non-historic housing. 4.1 Mixed Income.Housing=The Legislative Draft includes aspects of the Task Force proposals including live-work and work-live units (5.2.2) and housing above ground-level for commercial projects (52.3). 5.1 Housing Variety and Tenure—The Legislative Draft is generally consistent with the Task Force discussions. 6.1 Housing Production— a. The Planning Commission rejected the Task Force's notion that the costs of affordable housing be distributed across the community. b. However, the Commission recommendations include proposals to amend the City's growth management regulations to allow for exemptions for affordable housing, including moderate-income households. 7.1 Neighborhood Quality—The Legislative Draft recognizes the importance of neighborhood compatibility, but is less detailed than the Task Force proposals. 8.1 Special Housing Needs—The Legislative Draft is generally consistent with the Task Force discussions. 9.1 Sustainable Housing, Site, and Neighborhood Design—The Task Force recommended a more inclusive approach to sustainability than in the 1994 Element. The Legislative Draft incorporates some of these concepts here and under Program 2.3.5, although with less detail than the Task Force Report. 10.1 Local Preference—Task Forces recommended more positive wording than in the 1994 Element,as represented by this newly-stated goal. 11.1 Suitability—Task Force members proposed that this goal encourage innovative subdivision and housing design. The Legislative Draft incorporates some of these concepts under Program 2.3.5. In sum, the Legislative Draft of Chapter 3 of the Housing Element notes only two areas where the Planning Commission did not accept the Task Force recommendations. Thus, for the most part the Legislative Draft reflects the intent of the Task Force Report even though Task Force would have liked to see the Planning Commission go further in several specific areas. In other words, it appears that the Task Force has served the process well and significantly influenced the goals, policies and programs in the Housing Element that are different from the 1994 Element. 2 Allen Settle- Housing Element Draft, Iter 3.5 Housing Conservation Policy _ ___._Page 1 RECEIVED From: "Donna Lewis" <LewisSLO@msn.com> JAN 2 l; 2004 To: <kschwartz@slocity.org>, <asettle@slocity.org>, <jewan@slocity.org , <cmullholland@slocity.org>, <dromero@slocity.org> $LO CITY CLERK Date: Thu,Jan 22,2004 5:21 PM Subject: Housing Element Draft, Item 3.3.5 - Housing Conservation Policy Dear Councilpersons: I wanted to submit my concern over item 3.3.5 (Housing Conservation Policy) which is a part of the Housing Element draft you will review on January 27th and 29th. I am concerned that the current wording, "the city will adopt a"no net loss" housing ordinance"will create a hardship for property owners who wish to convert their residential property in a commercially zoned area to commercial use as the zoning currently allows. RED FILE ._ I am a loan officer and handle real estate financing for 1-4 single _.. METING AGENDA family residences and I also service as the Chairperson of the Chamber's Housing Task Force. I can tell you from my professional experience that DATE t ' TEM #,-f4 1 in many cases, when a property is in a commercial zone, it is often difficult for the property owner to obtain anything but commercial financing even if the property is currently used as a single family residence. From an underwriting perspective,the only way the property owner can obtain standard residential single family financing (which is less costly than commercial financing) is if the city/county will allow that structure to be rebuilt as a single family residence if it were to burn to the ground. In most cases, within commercially zoned areas, if a structure burns down,the zoning dictates that the property be rebuilt as a structure that fits within its zone type- a commercial structure- regardless of the prior use. Because I finance properties throughout the County, I am not sure how this situation is treated currently within the City and downtown area, specifically in areas that are zoned commercial but which have a single family residence (typically referred to as "Iegal/nonconforming"). But I know in the past I have run into this dilemma with clients who own this type of property within the City limits. The very fact that the zoning is currently written in this way conflicts with the wording of the "no net loss" policy in the Housing Element draft. } CCU JCIL ;/CDD DIR So from this perspective, many property owners in commercially zoned .%CAO Z'FIN DIR areas are paying commercial rates to finance the house in which they iQ ACAO GFIRE CHIEF live, and as a result, they aren't really given an incentive to keep theiZ TORNEY Z,PW DIP, structure as a single family residence. On top of this, if the property 171 CLERKIORIG ,Z POLICE CHF burns to the ground,they will be required in many cases to rebuild a ❑ DPT HEADS Z REC DIR commercial structure. And from a resale standpoint, if the property u i IL DIR owner is forced to keep a portion of the property for use as a residence D ` — (if they convert to commercial as this item in the draft suggests), they may have difficulty selling the property as it's highest and best use in that zone type may in fact be commercial as the zoning dictates. I also believe that it is unrealistic to require a property owner to replace the lost residential unit in any other way as it would likely be at a significant cost. I am not completely up on zoning and planning issues so I may be missing , something here. I would simply suggest that you pay specific attention to this particular section of the Housing Element Draft before its Allen Settle- Housing Element Draft, Iter 3.5 Housing Conservation Policy____ Page 2 adoption. Thank you for taking the time to read my email and receive input. Donna Lewis Pacific Republic Mortgage 560 Higuera Street, Suite B San Luis Obispo CA 93401 (800) 945-2727, extension 31 Fax to (805) 547-3894 Cell (805) 235-0463 www.pacrep.net/donna.lewis CC: <redalert@wesburk.com>, "'Patricia Wilmore"' <pwilmore@slochamber.org> Allen Settle- Housing Element _ ;" Page 1 RECEIVED From: "Lisa Smith" <Ismith@slorealtors.org> JAN 2 n 2004 To: <asettle@slocity.org> Date: Thu,Jan 22,2004 3:20 PM SLO CITY CLERK Subject: Housing Element Dear Council Member I would like to express my concern regarding the Housing Conservation Policy item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, 'the city will adopt a no net:loss housing ordinance." many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, 'the city shall consider adopting a no net loss housing ordinance." (Housing conservation item 1.23.8) The current wording does not carry the mandate and would allow the public an appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. RED FILE Sincerely, — M IG AGENDA DAT '.721 ITEM #tPW1 Lisa A. Smith Executive Vice President San Luis Obispo Assn. of REALTORS 443 Marsh St. San Luis Obispo CA 93401 USA 805-541-2282 805-544-2813 805-704-9840 Ismith@siorealtors.org www.slorealtors.org Add this card to your address book g{y� Y100.� � ODD DIP. Lisa A. Smith, a-PRO, WCRCDuIICIL / � v:7 O FIN DIR I Executive Vice President ACRO SIRE CHIEF` San Luis Obispo Assn. of REALTORS r, A;,,ORNEY -?W �R CHF 443 Marsh St. ;ZCLERK/ORIG (, :PO San Luis Obispo, CA 93401IJ DEPT EADS _ �REC DIR http://www.slorealtors.org J y TIL DIR Ismith@slorealtors.org i� �?_ !V'. DIT; �T (805) 541-2282 (805) 544-2813 FAX Allen Settle HousingElement Update _ Page 1 From: "Cathy Francis" <cathy@cathyfrancis.com> RECEIVED To: <kschwartz@slocity.org>, <asettle@slocity.org>, <lewan@slocity.or >, JAN Z h, 2004 <cmulholland@slocity.org>, <dromero@slocity.org> Date: Thu, Jan 22, 2004 3:31 PM SLO CITY CLERK Subject: Housing Element Update Dear Council Member I would like to express my concern regarding the Housing Conservation Policy item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, 'the city will adopt a no net loss housing ordinance." many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, 'the city shall consider adopting a no net loss housing ordinance." (Housing conservation item 1.23.8) The current wording does not carry the mandate and would allow the public an appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. RED FILE SincerelyAGENDA � ETING S Cathy Francis DATEr ITEM OTS i ..n0FIN DIR I GACAC �=IRE CHIEF iZ'ATTCRNEY ZP;N DIR I%CL=RK/ORIG yPOLICE CHF I ❑ D5-.,T HEADS ;7/REC DIR i UTIL DIR Page 1 of 1 RECEIVED Allen Settle JAN 2 6 2004 SLO CITY CLERK From: 'Robert Petterson" <rpetterson@hotmail.com> To: <dromero@slocity.org> Date: 1/22/2004 4:43 PM CC: <cmulholland@slocity.org>, <jewan@slocity.org>, <asettle@slocity.org>;. <kschwartz @ slocity.org> RED FILE MEETING AGENDA DATE ITEM #21 1+l Council Members, I would like to take the time to express my concern over the Housing Conservation Policy 3.3.5 in the Housing Element Draft. In the current wording,the city "will" adopt a No Net Loss Housing ordinance." I strongly believe the correct wording should read that the city would "consider" this ordinance as it is currently stated in the housing element. ( item 1.23.8). This would allow the public an appropriate voice regarding the issue at the time the Council would be considering a new ordinance and more options could be considered. Sincerely, Robert Petterson Co-Owner, ComerStone Real Estate www.robertpettersonsio.com Scope out the new MSN Plus Internet.Software—optimizes dial-up to the max! LC_D DLH /CAO FIN DIR CACAO gIRE CHIEF � � ATTORNEY rL`'W DIR �Z--�LERK/ORIG POLICE CHF D T 7EA)s R=C DIR 2!,'UT;LDIR file://C:\Documents%20and%20Settings\slouser\Local%20Settings\Temp\GW}000O1.HTM 1/26/2004 Allen Settle- Housing Conservation PolisPage_1 From: <Chrisinslo@aol.com> To: <dromero@slocity.org>, <cmulholland@slocity.org>, <jewan@slocity.org>, <asettle@slocity.org>, <kschwartz@slocity.org> Date: Thu, Jan 22, 2004 10:36 PM RECEIVED Subject: Housing Conservation Policy JAN 2 6 2001", Dear Council Member SLO CITY CLERK I have a concern regarding the Housing Conservation Policy item 3.3.5 in the draft of the new Housing Element. The current wording, "the city will adopt a no net loss housing ordinance..." may negatively affect many property owners by the mandatory adoption of this policy. The wording should remain the same as it reads in the existing element, "the city shall consider adopting a no net loss housing ordinance..." (Housing conservation item 1.23.8) The current wording does not carry the mandate and would allow the publican appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. Sincerely, Christine Volbrecht RED FILE Mr;FTING AGENDA DATE t hq ITEM #,� { CIL .TCDD DIR C,�O Z FIN DIR AOAO AFIRE CHIEF Ail ORNEY �`OLICE CHF CLERKIORIG ;EC DIR = D`� �` DS 7UTIL DIR Allen Settle- no net loss housing ordinar -- v— - _ Page 1 RECEIVED From: "R.P. Brown"<r.p.brown@sbcglobal.net> JAN 2 6 2004 To: <asettle@slocity.org> Date: Fri,Jan 23, 2004 7:44 AM SLO CIN CLERK Subject: no net loss housing ordinance Dear Council Member I would like to express my concern regarding the Housing Conservation Policy item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, 'the city will adopt a no net loss housing ordinance." many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, 'the city shall consider adopting a no net loss housing ordinance." (Housing conservation item 1.23.8) The current wording does not carry the mandate and would allow the public an appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. Sincerely, Regina P. Brown Realtor Extraordinaire Real Estate Broker&Consultant phone: (805) 550-9340 fax: (805) 546-9292 email: rpbrown@realtor.com RED FILE web: www.Rea]EstateRanch.com - MEETING AGENDA DATE � ITEM #TH I _ 01 J— �g D!R [%COU?JOIL IN DIR 1 'CAO z'FIRE CHIEF i ACAOpN!DIR DJ'ATTOFINEY POLICE CHF CLERK'ORIG '�REC DIR D T HEADS i�7IL DIR HR DI71___--- Allen Settle- Housing_Element _ From: "bjbiames" <bjbjames@pacbell.net> To: <kschwartz@slocity.org>, <asettle@slocity.org>, <jewan@slocity.or <cmulholland@slocity.org>, <dromero@slocity.org> RECEIVED Date: Fri, Jan 23, 2004 9:05 AM Subject: Housing Element 'JAN The care and methodology used by the City in preparing the revised housing SIJ0 QTY al EAK element has been excellent, and you are to be congratulated. The resulting document is a vast improvement over the original draft, in my opinion. The one area which I would urge you to reconsider and change is the "No Net Loss" ordinance provision. That policy is on'e which I believe will not have the long-term results the City desires, and which I also believe unfairly affects property owners' rights. Please examine other methods to achieve the desired result and, in the meantime, do not include the provision as written. Beverly James LANDMARK COMPANY, San Luis Obispo, CA (805)544-7000,To[[ Free (888)411-7541 Mai[To:bjbjames@LandmarkCompany.net hftp://LandmarkCompany.net RED FILE Ell G AGENDA �113 "41 DATE% ITEM # - 3� 41C� 'NCIL ZCAO -yC D D DIR CACAO /2FIN DIR If ATTORNEY AFIRE CHIEF CLERK/ORinz SFW DIR CT HEADS#) -2 -C POLICE CHF L 'erg t DIP 7- UTiL DIR Allen Settle-Housing Element Update Page 1 RECEIVED From: "Abbie Woodward" <AbbieW @fix.net> JAN 2 6 2004 To: <kschwartz@slocity.org>, <asettle@slocity.org>, <jewan@slocity.org>, SLD CIN CLERK <cmulholland@slocity.org>, <dromero@slocity.org> Date: Fri, Jan 23, 2004 11:56 AM Subject: Housing Element Update Dear Council Member I would like to express my concern regarding the Housing Conservation Policy item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, "the city will adopt a no net loss housing ordinance." many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, "the city shall consider adopting a no net loss housing ordinance." (Housing conservation item 1.23.8) The current wording does not carry the mandate and would allow the public an appropriate voice regarding this issue at the time the Council would consider anew ordinance. The Council should.retain all options regarding anew ordinance. Sincerely Abbie Woodward RED FILE MEETING AGENDA DATE ITEM # !i f CAO Z CDD DIR �ACAO ,G IN DIR F �G FIRE CHIEF GYAI I ORNEY Z PIN DIR ei CLERK/O,RIG 2 POLICE CHF HEAD 2P,EC DIR IL DIR H �' __..r_.r_--• P' R DIFI Allen Settle- From: "Chantel Babcock" <cbabcock@firstam.com> To: <dromero@slocity.org>, <cmulholland@slocity.org>, <jewan@slocity.org>, <asettle@slocity.org>, <kschwartz@slocity.org> RECEIVED Date: Fri, Jan 23, 2004 1:54 PM Dear Council Member JAN 2 6 2004 1 would like to express my concern regarding the Housing Conservation Policy SLO CITY CLERK item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, "the city will adopt a no net loss housing ordinance.." many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, `the city shall consider adopting a no net loss housing ordinance..." (Housing conservation item 1.23.8) The current wording does not carry the mandate and would allow the public an appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. Sincerely Chantel Babcock RED FILE MEETING AGENDA DAT '"I ITEM -4 I CC: <alert@wesburk.com> �P'dl�ll.-C61Yi.1 p xnn� P/cOUNCIr,-Doig ICAO �IN DIR MACAO Fz FIRE CHIEF 9-14ZPW DIR ,a'CLERK/091G ZPOLICE CHF ❑ �T HEI -s DS Z R=C DIR fes-- : UTIL DIR r tCJ 7'H= i;l Allen Settle- Housing Element Update _--?a9 From: "Jim Smith" <jimsmith@theloanguy.com> RECEIVED To: <asettle@slocity.org> Date: Fri, Jan 23, 2004 2:55 PM JAN Z 6 ?011e Subject: Housing Element Update Dear Alan: SLO CITY CLERK The city council is reviewing the updated housing element next week. The "No Net Loss" provision as it applies to properties downtown is an unnecessary and unfair burden on property owners. Please reject this provision in the housing element. Jim Smith 2246 Santa Ynez Avenue San Luis Obispo RED FILE M ING AGENDA DAT % Y ITEM #� TCDD DIF AO '1N DI ACAO f F qt CHIEF ATTORNEY eo-p\"J D I R CLcRK'ORIG ;c POLICE CHF DEPT HEADS . DDIIR -rte z Allen Settle- No Net Loss Housing 3.3.5-' tsing Element - T —_ Page 1 From: "Sal Orlando" <theslolife@charter.net> RECEIVED To: <dromero@slocity.org> Date: Fri, Jan 23, 2004 6:13 PM JAN 2 6 2004 Subject: No Net Loss Housing 3.3.5 Housing Element SLO CITY CLERK Dear Council Member I would like to express my concern regarding the Housing Conservation Policy item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, "the city will adopt a no net loss housing ordinance..." many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, `the city shall consider adopting a no net loss housing ordinance..." (Housing conservation item 1.23.8) The current. wording does not carry the mandate and would allow the public an appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. Sincerely Sal Orlando The Real Estate Group 962 Mill St. San Luis Obispo, CA 93401 Office 805-541-2888 Cell 805-235-9770 www.theslolife.net theslolife@charter.net CC: <cmulholland@slocity.org>, <jewan@slocity.org>, <asettle@slocity.org>, <kschwartz @ slocity.org> RED FILE - M ETING AGENDA DAT `o'41 ITEM #'W I Cie" -Lmado •f COUNCIL TCDD DIR ,0'CAO �rFIN DIR ,2'ACAO AFIRE CHIEF 2'A7TORN=Y ;PW DIR 2TLERK/ORIG 2'POLICE CHF ❑ EPT HEADS �cR=C DIR ZUTIL DIR Allen Settle-Housing element --_ Page1_j From: <HSweasey@aol.com> To: <cmulholland@slocity.org>, <jewan@sloccity.org>, <asettle@slocity.org>, <kschwartz @ slocity.org> Date: Sat, Jan 24, 2004 6:21 AM Subject: Housing element RECEIVED Dear Council Member: JAN 2 6 2004 1 would like to express my concern regarding the Housing Conservation Policy SLO CITY CLERK item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, "the city will adopt a no net loss housing ordinance..."many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, "the city shall consider adopting a no net loss housing ordinance..." (Housing conservation item 1.23.8) The current wording does not carry the mandate and would allow the publican appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. I would like to express my concern regarding the Housing Conservation Policy item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, "the city will adopt a no net loss housing ordinance..."many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, `the city shall consider adopting a no net loss housing ordinance..." (Housing conservation item 1.23.8) The current wording does not carry the mandate and would allow the public an appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. Hal &Maria Sweasey 1920 Corralitos Ave SILO, CA 93401 RED FILE CC: <alert@wesburk.com> MEETING AGENDA DATE t�ITEM #T 41 ICCUNCIL —CDD DIR CAO eO-71N DIR O''ACAO 2fFIRE CHIEF ,Z'ATTORNEY ,G'Pw DIR LERK/ORIG ,❑'POLICE CHF ❑ D�FPT EADS aREC DIR _ UTIL DIR /� — rc�HR DIR - a i RED FILE ME ING AGENDA January 27, 2004 DATE-P/-0 f ITEM #�� TO: Ken Hampian, City Administrator FROM: John Mandeville, Community Development Direct f� l By: Michael Draze, Deputy Director of Community DevelopmenrzD SUBJECT: Letter of January 25, 2004 From Richard Schmidt In brief response to the letter from Mr. Schmidt relative to staff actions, we do not agree with the basic assumptions stated or the conclusions drawn. Rhetoric aside, the staff who worked with the Housing Element Update Task Force and the draft Housing Element made themselves and materials equally available to all members of the task force. Some members did ask the staff more questions than others but no early review of the draft Housing Element was provided outside City staff. The "official task force representative", whom we believe to be Steve Barasch, did talk with staff more than most other members but was never accorded any "...extraordinary access and special treatment by staff." Several members, including both Mr. Barasch and Mr. Schmidt, requested to see the draft Housing Element before public release. Typically these requests included comments to the effect that the task force member was interested in seeing how staff had included task force recommendations. Staff's response was essentially the first sentence of Mr. Schmidt's footnote (1): "Staffs response was until the draft was release to the public, the task force couldn't see it, since we were "public"". The remainder of footnote speculating about who is on the City payroll is assumed to be rhetorical hyperbole, and not a real allegation (if it were, it would be highly insulting to those who have worked hard and honestly on this process). After reviewing Mr. Schmidt's January 25 letter with Jeff Hook, Mike Draze did call Mr. Barasch to ask him if he had somehow seen any early drafts of the housing element. He responded that he had not and, in fact, recalled being upset that it took staff so long to release it. Staff is not sure what the reference to Mr. Barasch supposedly saying on several occasions "...that he'd seen the draft, and it was "pretty good"", means. If the comments referred to drafts of the Task Force report, staff did share the various drafts with any members who asked and regularly sent versions to all members of the task force. Our position was that this was their draft document and the Housing Element was the Planning Commissions document. As for staff sending Mr. Barasch's "...70% density bonus..." to the Planning Commission, we send all written requests relating to Planning Commission agenda items to the Planning Commission. It's only fair to note that staff did not support Mr. Barasch's suggestion on the density bonus. --j COUNCIL CDD DIR CAO FIN DIR ACAC FIRE CHIEF ATTORNEY PW DIR CLERK/ORIG POLICE CHF DEPT HEADS REC DIR ' u UTIL DIR ❑ __ 0 HR DIR SAN LUIS OBISPO ASSOCIATION OF REALTORS, INC. IR 443 MARSH ST/SAN LUIS OBISPO/CA 93401 /(805)541-2282/FAX (805)544-2813/WWW.SLOREALTORS.ORG REALTORe RECEIVED JAN 21 2004 January 20, 2004 SLO CITY CLERK Honorable Members of the San Luis Obispo City Council: The San Luis Obispo Association of Realtors had members present at the past Housing Element Update Task Force meetings and the subsequent Planning Commission discussions. We would like to commend the Planning Commission for their considerable time, and for attentively listening to input and showing a willingness to change base on that input.. We would like to express concern regarding an issue in the current draft of the Housing Element. 3.3.5 states "...the City will adopt a no net loss housing policy...." Although this is only a slight change from what is in the current Housing Element, the change is significant. Currently, the Housing Element states in section 1.23.8 "...the City will consider adopting a no net loss housing policy..." You will recall that an attempt to adopt a No Net Loss Policy approximately 12 months ago was met with strong opposition and an outcry from affected property owners. The wording change mandates that you adopt an ordinance that we do not believe has even been issued in its final draft form. Additionally,proper notice to those most affected has not occurred. The.wording change is apparently staff driven, and the Planning Commission may not fully understand the ramifications to property owners.. We believe that concurrent discussions of a new ordinance and the Housing Element update are not appropriate, and the issues should be separated. Our Association not only believes that if a No Net Loss Ordinance is going to be adopted, it should not only exist in draft form to be reviewed by the public but also those that will be impacted should be notified and included in the discussions through a public hearing. The first step towards accomplishing this is to reinstate the word, consider into the document. Sincerely d COUNCIL TCDD DIR ,a CAO -ZwFIN DIA RED FILE LrACAO -FIRE CHIEF Wes Burk ME I AGENDA 2rCLERRNEY 2rPO DIR ,0"CLERK/ORIG p'POLICE CHF President t M DET EADS -E2DIR DAT ITEM #2j i'�1 O'UTIL DIR i RECEIVED JAN 2 7 2004 SLO CITY CLERK January 27, 2004 MEMORANDUM TO: City Council VIA: Ken Hampian, City Administrative Officer FROM: John Mandeville, Community Development Direct( 01 irect X01 BY: Jeff Hook, Associate Planner SUBJECT: Draft Housing Element Chapter 3, Legislative Draft Items 6.23 through 6.26 Attachment 1 of tonight's staff report, Chapter 3 Legislative Draft, inadvertently omitted legislative draft items 6.23 through 6.26. These are shown on the attached sheet, which should be added between pages 1-28 and 1-29. The inserted text starts at the top of staff report page 1-29. RED FILE MEETING AGENDA DATE r` TEM # �i I Attachment Q mal GCOUNCIL 7-CDD DIR .GCAO ?'FIN DIR OACAO FrFIRE CHIEF O'ATTORNEY DePW DIR P,CLERK/ORIG Z. POLICE CHF OD T FADS ;ZREc DIR �ZUTIL DIR -'_----— SFR DIR_�� Chapter 3—Goals,Policie-,mid Programs Attachment 1 LEGISLATIVE DRAFT ITEMS 6.2.3— 6.2.6 *** 1.26.2 To add to the City's residefifial land base, the City 4l eneoufage the 1.26.3 New large Dewwewa eefamreialprejeetsshouid-mehide-hewing. 6.2.3 Provide incentives to encourage additional housing in the Downtown Core particularly in mixed-use developments. Incentives may include flexibl density, use, height, or parking provisions fee reductions and streamlines development review and permit processing. 6.2.4 If City services must be rationed to new development, residential projects will be given priority over non-residential projects. *** 6.2.5 City costs of providing services to housing development will be minimized. Other than for existing housing programs encouraging housing affordable to very-low and low income persons, the City will not make new housing more affordable by shifting costs to existing residents. 6.2.6 Relax open space requirements in Expansion Areas in return for the provisio I additional affordable housing units beyond the minimum requirements provided that such open space is not for the specific purpose of protecting geographic features like hillsides,wetlands,biological resources and creeks; *** 18 JAN-26-2004 22:46 Jan 8055412239 P.01/05 ERECEIVED 2004 LAW OFFICES OF JAN HOWELL MARLERK P.O. Box 1 445 Sew Luis OBISPO. CA 93406-1445 (805) 54 1-2716 (805) 54 1-2239 (FAcsIMILE) FAX COVER SHEET RED FILE ME NG AGENDA DAT=j ''( TEM #—T—k4L To: San Luis Obispo City Council FROM; Jane Marx FAX No: 781-7109 DATE: 1/27/04 TIME; noon RE: REVISED Comments on the Housing Element from the Sierra Club. Please replace our 1/26/04 letter with this letter. Thank you, Jan Marx NUMBER OF PAGES (INCLUDING COVER PAGE):5 PLEASE DELIVER IMMEDIATELY If you do not receive any or all of the pages, please call us at(805) 541-2716. Fax No.: 541-2239. The infomtation comamed in this facsimile message is attorney privileged and confidentwl information intended for ft use of the individual or entity named above. If the reader of this message is not the intended recipient,or the employee or agent responsible to deriver it to the intended recipient,you are hereby notified that any dissemination,distribution,or copying of this communication is strictly prohibited.. If you have received this fax in error,please immediately notify us by telephone,and return the original message to us at the above address via the U.S. postal service. COUNCIL .TCDD DIR T CAO FIN DIR Z`ACAO .e FIRE CHIEF ETATTORNEY Er PW DIR -E CLERK/ORIG -f POLICE CHF ❑ DE,pT EADS 2-REC DIR �l(L -2 UTIL DIR HR DIR JAN-26-2004 22:46 Jan 8055412239 P.02/05 Santa Lugs Chapter of the Sierra Club,P.O.Box 15755,San Luis Obispo,CA 93406. January V. 2004 Dear San Luis Obispo City Council: Note: This correspondence replaces our correspondence dated January 26,2004. The Santa Lucia chapter of the Sierra Club Housing Committee submits the Wowing comments concerning the draft Housing Element's("RE.")proposed Negative Declaration("Neg. Dec.")and recommendations concerning Chapter 3,Goals,Policies and Programs. The Sierra Club is a supporter of affordable housing and"smart growth" which minimizes environmental impact through excellent planning. L THE NEGATIVE DECLARATION IS INADEQUATE. The City Council in 2002 was wise to mandate analysis of the environmental impacts prior to adopting anew Housing Element Staff, in its g/19/03 Neg. Dec.,has dodged this mandate and stated that there will be"Less Than Significant Impact"or"No Impact"from the adoption of the draft HE. The City Council should require Planning Staff to do a thorough analysis of the new enviromnental impacts which would in fact flow from adoption of the draft H.E.,see below. Under CEQA,a focused EIR or at least Mitigated Negative Declaration is required to give the Council and city residents the environmental information they need before making important policy decisions. The Neg.Dec is largely based on the premise that the impacts of the proposed Housing Element have already been subjected to environmental review and mitigated by the 1994 Final EIR,Laud Use/Circulation Element Updates("1994 EW'). This premise is flawed Under CEQA a Negative Declaration for a new project can only be validly based on an old EIR if that old EIR considered exactly the saute impacts which are created by the new the project In outer words,all of the impacts of the new project must fall within the scope of the old EIR,or else a new EIR is required However,the proposed KE. creates new impacts not contemplated.in the 1994 EIR and also drops mitigations. The HE_ also seeks to make Land Use changes, which rightfully should only take place when the Land Use Element is updated, and does so without adequate environmental review or mitigation: New environmental review is required because the proposed Housing Element is M consistent with existing zoning and general plan policies which were in place at the time 1994 Land Use EIR was certified. Also, that 1994 Elft did not contemplate the current state of commercial and residential development The proposed HE exceeds the scope of the 1994 EIR significantly. The proposed HE contains new impacts which need new environmental review and mitigation. The Negative Declaration is simply not adequate,as discussed below: i JAN-26-2004 22:46 Jan 8055412239 P.03/05 1. DENSITY. The proposed KE. in many places proposes greater development density than that established by existing zoning and general plan policies.A few examples of this are on page 23 "Initiating rezoning of several areas suitable for higher density, infill housing"and 6.3.66.3.8, 6.3.9,6.3.11, and 6.3.16. The environmental impact of this proposed increased density in these specific locations has not been subjected to environmental review or mitigated as required by CEQA. (CEQA Cruidelines 15183). The locations of this increased density will affect traffic,air quality, noise,water and sewer infrastructure,as well as park and open space acquisition. Also, policy decisions regarding density are land use and zoning decisions,which belong in the Land Use Element,not the Housing Element 2. SPEED OF DEVELOPMENT. The Land Use Element plans for build out to occur in the year 2022,and this is basis for the 1994 EIR's analysis and mitigation measures. The proposed KE. plans for build out to occur much,much sooner than 2022, offers no new mitigation measures for the speed up and eliminates many of the 1994 Land Use and Circulation Element mitigation measures(including traffic impact and park in-lieu fees among others)which were intended to take place gradually over time as development occurred. The cumulative impacts of this speed up(and the speed up likely to occur with another H.E. update in 2008)combined with the loss of 1994 mitigation measures,requires environmental review and mitigation. 3. TRAFFIC. The impact of significantly reduced funding for transportation projects,as outlined on pages 6 and 7 of the 2003 Draft Housing Element Fiscal Impact Assessment("White Papel"), will be indefinite deferral of transportation mitigation projects required by the Circulation Element of the Creneral Plan, severely impacting traffic. The CEQA Guidelines Appendix G defines a"significant traffic impact"as one that causes an"increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system." The RE. creates new significant traffic impacts by not only failing to complete the mitigation projects,but also by planning more housing and increasing density in locations not contemplated by the 1994 Ell. These traffic impacts require thorough environmental review and mitigation. 4. PARKS. There are also CEQA compliance issues created by not mitigating the impact of park in-lice fee waivers on the City's General Plan parkland standards,as pointed out by the White Paper on page 8. The 1994 EIR did not contemplate these proposed waivers,and therefore the Neg. Dec. is inadequate in this regard.Creating higher density housing usually reduces back yards. This means that there is a greater need for parks with higher density housing.Not having enough parks will have a substantial adverse effect on human beings, which triggers a mandatory fording of significance under CEQA Park in-lieu fees should not be waived. Reducing the park ratio is also a Land Use decision,which should not be made in the Housing Element 5. OPEN SPACE. The draft H.E. at 6.2.6 proposes the City should"relax" Open Space requirements in expansion area for the provision of additional affordable housing units." The 1994 ER did not contemplate this proposed"relaxation,"and in fact 2 JAN-26-2004 22:47 Jan 8055412239 P.04/05 built in many specific protections for Open Space. Chang the Open Space policy will have environmental impacts,which need new environmental review and mitigation Creating higher density housing usually reduces back yards. This means that there is a greater need for Open Space with higher density housing. Not having enough open space will have a.substantial adverse effect on human beings, which triggers a mandatory finding of significance under CEQA. Also Open Space policy is a Laud Use and Conservation decision,which should not be made in the Housing Element. 6. GROWTH MANAGEMENT,Exempting housing affordable to those of Moderate Income would cause the city to exceed its I%cap. One example of this is 6.3.1 on page 33 which proposes to"exempt(from Residential Growth Management)all new housing in the C-D zone and new housing that is affordable to very low,low and moderate income households..." The 1994 ER is premised on the growth cap remaining firmly in place and applying to housing affordable to those of moderate income. Therefore,the changes proposed regarding growth management are outside the scope of the 1994 EIR and the Neg.Dec. is inadequate.. An ER is required to analyze impacts of these changes and to propose effective mitigation measures. 7. SPRAWL BEYOND THE URL. The 1994 ER contemplated development only within the Urban Reserve Line("URL' . The proposed H.E. section 6.2.6 which ells for the"relaxing"of open space requirements likely would result in expansion of urban development beyond the URL. Therefore,the 1994 ER is not adequate to support a Neg. Dec. and an EIR is required. IL RECOMMENDATIONS REGARDING CHAPTER 3. The proposed H.E. goes way beyond meeting the minimum requirements of the Housing and Community Development Department. It makes many proposals, which would burden present residents financially and degrade the environment of the City. We support the recommendations of Residents for Quality Neighborhoods and also make the following recommendations: a. The major planning incentive for low and very low income housing Production is its exemption from growth management and impact fees. Section 2.3.7 proposes to exempt moderate income housing from impactfees. Other sections exempt moderate income housing from growth management. This would eliminate the incentive for low and very low housing production,and we do not support that. we also support a new section similar to the following. "Encourage pubic employers to provide housing programs for their moderate income employees such as teachers,police, fire, cit workers, etc." In contrast,Section 2.3.9 appears to propose using General Fund monies to fund the programs listed in it,in order to aid unlimited numbers of moderate income persons from everywhere. This section needs revision. The above changes will go a long way to lessen the proposed RE's environmental and financial impact on permanent residents. This will also focus our efforts on helping those who most need the help and on establishing affordable units,which will remain affordable over time 14 JAN-26-2004 22:47 Jan 8055412239 P.05/05 b. Instruct staff to completely eliminate from the proposed H.E. any language or figures which exceed the scope of the 1994 Land Use Element EIEL The 1994 Ea balanced the Laud use Element fiscally and environmentally, as staff has reiterated many times to the Council and the public. To upset tat balance without environmental review and mitigation measures violates CEQA. It also creates inconsistencies within the General Flan, which make it vulnerable to litigation. C. Do not initiate rezoning or densification without thorough environmental review and effective,mov itored mitigation measures. 6.3.6, 6.3.81 6.3.9 should be deleted unless there is a thorough EIR and mitigations for increased density and resulting traffic. d. Adopt 2.2.3,which extends the time affordable housing remains affordable. Strike 3.3.7,which would allow reduced terns of affordability to rehabilitated units. C. Do not encourage increased housing for above moderate income households(2.2.4). There is plenty of that kind of housing in the City at present. f. Require commercial Development to pay 15%m lieu fee in the expansion areas,just as residential development must do(Table 2). g. Protect R-1 Neighborhoods. Back yards are important private open space to human and natural life forms. We support the deleted 1.24.3 rather tham the proposed Section 4.2.3. Clarification is needed that high density multiple family units are not being planned on R-1 lots. h. Enact `night sky"ordinance as a mitigation for the increased lighting, which will result from increased density and housing. Please consider our comments and recommendations part of the record. Thank you for including the environmental perspective as you deliberate regarding this important topic. Yours Truly, an Howell Marx Chair,Housing Committee Santa Lucia Chapter of the Sierra Club TOTAL P.05 Lee Price- Inclusionary request — Page 1� RED FILE From: Jerry Bunin <jbunin@surfari.neb MEETiNQMEE INGj A DAT�reQ __ To: <mdraze@slocity.org> Date: 1/27/04 4:33AM p' gyp{, Subject: Inclusionary request Dear Mayor Romero and the City Council: Since the Home Builders Association will be unable to attend the Jan. 27 City Council meeting but will be present at the Jan. 29 meeting to explain our position on the inclusionary housing section of the housing element, we ask the council to delay discussing the issue until the Jan. 29 meeting. Thank you for considering this request. Sincerely yours, Jerry Bunin Government Affairs Director Home Builders Association of the Central Coast (805)459-2807 Jerry Bunin www.slonet.org/-jbunin (home) jbunin@slonet.org (home) www.hbacc.org (work) jbunin@surfari.net(home) 805-481-2455 (home) jbunin@hbacc.org (work) 805-546-0226 (work direct) Cell 805-550-5334(mine) Cell 805-459-2807 (work) h"*1 cop a mrc t COUNCIL CrCDD DIR u'CAO [!,-FIN DIR [1-ACAO Ff�FIRE CHIEF ❑ATTORNEY r--,-PW DIR ❑-CLERK/ORIG rPOLICE CHF ❑ DEPT HEADS ❑-REC DIR V.6 p'UTIL DIR C.i P.113 I,,.1'-HR DIR Allen Settle- Housing_Element Dage 1 1V U JAN 2 7 2004 From: "Cydney Holcomb" <cholcomb@charter.net> SLO CITY CLERK To: "Ken Schwartz" <kschwartz@slocity.org>, 'John Ewan" <jewan@s >, nsine Mulholland" <cmulholland@slocity.org>, "Allen Settle" <asettle@slocity.org>, "Dave Romero" <drom ero @ slocity.org> Date: Mon, Jan 26, 2004 7:05 PM Subject: Housing Element Dear Mr. Mayor and Members of the City Council, Attached is an informational document (in Word& PDF)that we have prepared for our members in regards to the update of the Housing Element. We will also be sending you our comments on specific policies and programs contained in the Draft itself, hopefully, tomorrow. I do apologize for getting this material to you so late. I know you must have a mountain of things to read at this point, so we will try to be brief and to the point with our remaining remarks. Sincerely, Cydney Holcomb Chairperson, RQN CC: "Lee Price"<Iprice@slocity.org> OUNCILDD DIR 1 0 CAO C'FIN DIR #�ACAO SIRE CHIEF ATTORNEY �W DIR RED FILE J�CLERKIORIG 2 POLICECHF DEPT HEADS 1a REC DIR UTIL DIR M SING AGENDA (b J Ha DIP _ DATE ` j 2FlITEM #�— _ RQN THE HOUSING ELEMENT UPDATE January 26, 2004 NOTICE OF PUBLIC HEARINGS RE: CITY COUNCIL REVIEW OF DRAFT HOUSING ELEMENT WHEN: 7:00 P.M. - JANUARY 27, 2004 AND JANUARY 29, 2004 PLACE CITY HALL, 990 PALM STREET, SAN LUIS OBISPO Dear RQN Members, The required Housing Element update process which began approximately one year ago has resulted in a council draft that was crafted by city staff, a council appointed task force and the Planning Commission. If adopted the revised Housing Element will replace the current 1994 Housing Element and become the "Blueprint" for housing development in the City for the.next several years..And, if adopted as presented, it will change several longstanding City Policies, requiring changes to the existing Land Use Element, City Ordinances and Zoning Regulations. Attached to this letter is a set of answers to questions designed to help you understand some of the relevant issues involved with the Housing Element update process. RQN will also be filing written responses to several policy changes in the draft that we have identified as having serious impacts to the quality of life in our existing residential neighborhoods. These are some of the proposed changes: • Amending City policies and regulations to rezone residential areas to encourage infill and densification. • Allowing planned developments(PD Zoning) on less than 1 acre. • Relaxing open space requirements in favor of affordable housing. • Amending the Growth Management Regulations to exempt moderate-income housing. • Amending the Inclusionary Housing Requirements. • Allowing"granny flats" by right on non-conforming lots in all residential zones.. Draft Housing Element: htta://www.slocity.orci/communitvdevelopment/download/heocdraft.r)df Council Agenda Report: httn://www.slocity.org/cityclerk/agendas/council.asp WE NEED YOUR HELP — PLEASE WRITE, CALL, E-MAIL, AND/OR SPEAK AT THE CITY COUNCIL MEETINGS ON JANUARY 27, 2004 and JANUARY 29, 2004 Mayor Dave Romero: 781-7415 dromero@slocity.org Christine Mulholland: 781-7598 cmulholland@slocity.org John Ewan: 781-7752 jewan(aslocity.org Allen Settle: 781-7417 asettleCalslocity.org Ken Schwartz: 781-7750 kschwartz@slocity.org City Clerk 781-7104 Iprice@slocity.org CITY HALL FAX 781-7109 fax only 1/26/04 1 a RQN THE HOUSING ELEMENT UPDATE -Q&A RQN supports: the creation of a substantial number of new "affordable" housing units within the City of San Luis Obispo; the preservation and enhancement of the City's "established" residential neighborhoods; and, the "high quality of life" currently enjoyed by City residents. In that spirit we have prepared the following answers to questions regarding the General Plan Housing Element Update to assist our members and others in understanding this complicated process. A. UPDATING THE HOUSING ELEMENTi 1. What is the General Plan Housing Element? The Housing Element is one of seven required chapters that make up the City's General Plan. It establishes policies and programs to facilitate and encourage the provision of safe, adequate housing for current and future residents. The State of California requires all Cities and Counties to update their Housing Elements every five years. To be certified by the State Department of Housing and Community Development. (HCD) our Housing Element must provide "the opportunity to build" 4,087 housing units during the current planning period (2001-08) and it must also show how the "resources" necessary to build the units will be obtained. 2. What was the City Council's direction for updating the Housing Element? Their direction was to update the General Plan Housing Element with three specific goals in mind: • expanding housing opportunities for very-low, low, and moderate income households; • preserving and enhancing residential neighborhoods; and, • complying with state laws, including the California Environmental Quality Act (CEQA) (Resolution No. 9387). 3. Does RQN support all three of the Council goals? Yes. RQN's major focus is the preservation and enhancement of the City's existing residential neighborhoods, but we also support building a significant number of new affordable (at or below market rate) housing units in the City of San Luis Obispo. We believe, however, that this new residential growth should be well planned, as to its rate, location and environmental effects if we are to preserve the high quality of life currently enjoyed by the residents of our City. 4. What process for updating the Housing Element did RQN support? RQN lobbied for a process that would embody the preferences of the City's resident/voters. A process based on early resident participation in a variety of different forums such as: 1) outreach meetings in the City's neighborhoods, to involve residents early in the process as was done in the last housing element update; 2) a survey of City 1/26/04 - 2 resident/voters asking them to define neighborhood problems and their preferences on critical growth issues; and, 3) a task force made up of City residents, or alternatively, one in which neighborhood representatives were a voting majority. Unfortunately this was not the process supported by City staff for the current update of the Housing Element:and did not happen. S. What was the make-up and focus of the Housing Element Update Task Force? Each member of the Task Force represented a specific interest group; however, the voting majority of the task force was controlled by real estate development/new housing advocate interests whose focus was on the goal of developing new housing. It is now up to the City Council to ensure that "preserving and enhancing residential neighborhoods" and "complying with state laws, including CEQA" receive equal attention and that the decisions they make reflect all three of the goals that they established. 6. Does RQN support an Environmental Impact Report (EIR) for the Housing Element Update? Yes. RQN believes that better decisions are made when the impacts of different choices are known before the decisions are made. • Implementation of the Draft Housing Element Update would, for example, require modification of the General Plan and existing zoning designations to accommodate future residential development at densities greater than now permitted and on sites where residential development is not currently permitted. These modifications could have significant environmental impacts and create significant conflicts with the existing policies. • Additionally, residential development anticipated under the Housing Element Update during the planning period could result in an increase in San Luis Obispo's population of approximately 9,277, based on up to 4,087 additional housing units at an average household size of 2.27 persons (2000 U.S. Census value). This level of development would exceed current population projections established in the General Plan for the year 2007 and would be expected to result in significant effects related to traffic congestion and air quality. • Many new developments and other physical changes have taken place in the City and in the law since the last Housing Element Update in 1994, for example, the Copeland's project and the revisions to the "granny unit" legislation. Reliance on the 1994 General Plan EIR is not a sufficient substitute for an EIR based on the current state of the City. In addition, the 1994 EIR was based on a model of gradual, sustainable development within our 1% growth cap. The Draft Housing Element Update drastically speeds up the rate of development, which could increase geometrically if the Housing and Community Development Department (HCD) has its way. A factually accurate and current EIR would also provide a baseline for the City in the event the State continues to mandate. more and more housing. 1/26/04 - 3 • Furthermore, the City Council has decided that our Housing Element must comply with CEQA. Under CEQA, an up to date EIR is required for the decision- makers and the public to understand the environmental implications and cumulative impacts of the proposed Housing Element; short and long term. For these reasons, RQN, in conjunction with the Santa Lucia Chapter of the Sierra Club and the Environmental Center of San Luis Obispo (ECOSLO), made a formal, written request to the Planning Commission and City Council to prepare a full Environmental Impact Report (EIR) for the Update of the Housing Element-. 7. Did the Planning Commission support an EIR for the Draft Housing Element Update? No. The Planning Commission supported the staff recommendation for a Negative Declaration. B WORKFORCE HOUSINg 8. What has RQN done to support the Council goal of expanding housing opportunities for low, very low and moderate income households? • RQN requested the City Council change their original Housing Element goal of creating more housing for "all income levels" to a goal that would concentrate on providing more "affordable" housing in the City of San Luis Obispo. The Council agreed and changed the goal to reflect the very low, low, and moderate income categories only. RQN was the only group to make this request. • RQN contributed background information to the City Council regarding the State Housing Mandate and advised the Council not to support the incredibly high number of housing units (5,450) that the State had imposed on the City of San Luis Obispo. The Council agreed and that action ultimately resulted in a reduction of 1,067 units. Even with the adjustment San Luis Obispo's allocation is still very high compared to other Cities in the State of California. • RQN representatives lobbied the California State University Board of Trustees at their meetings in Long Beach to support building more student housing on the Cal Poly campus. Housing thousands of students on the campus is a very real way of " freeing up" large numbers of rental and ownership homes in the City's existing neighborhoods for families and those who work in San Luis Obispo. RQN was the only San Luis Obispo group to travel to Long Beach to make this request. • When a very large student housing project was proposed by Cal Poly and Capstone Weston a manufacturing site at the corner of Broad Street and Orcutt Road, RQN argued that the project belonged on the Cal Poly campus, not in the middle of the City. RQN noted that seven (7) on-campus student housing sites had already been selected and approved by the CSU Board of Trustees during the Master Plan process. The City Council advised the developers that they would not approve a student housing project at the Orcutt and Broad location. 1/26/04 - 4 j Subsequently, a proposal to build 2,700 beds on the campus to accommodate a planned enrollment increase of 3,000 additional students was approved by the CSU Board of Trustees. That project has now been placed on hold. *(It should be noted that if this project is ever completed it will not alleviate the current housing situation in the City's neighborhoods. There would still be approximately 11,000 Cal Poly students looking for off-campus housing every fall. • RQN supported rezoning the. Orcutt and Broad property from service- manufacturing to R-4 (high-density residential) and argued, specifically, for a significant number of the housing units to be deed restricted"in perpetuity" at or below-market rate. • RQN supported the appeal of a use permit allowing Sierra Vista Hospital to demolish four (4) housing units and re-zone two (2) parcels of R-4 (high density residential) property to a non-residential use. RQN argued that there is a critical need for "workforce" housing and that Sierra Vista Hospital, as a large-scale employer, should contribute to the housing needs of their employees and should at the very least replace the housing potential that would be lost due to the demolition and re-zoning. Unfortunately, the Council denied the appeal which will allow the hospital to expand their campus and add 350 additional employees without providing one new housing unit. G POPULATION DENS Background: • The City of San Luis Obispo already has an extremely high population density. According to the 2000 census "the most densely populated part of the County is the area around Cal Poly, with 8,575 people per square mile". And, overall the City has a population density of approximately 4,500 people per square mile. (See: Attachment A). *(It is interesting to note that the much larger City of Portland, Oregon only has 3,500 people per square mile). • There are approximately 28,000 college students enrolled at Cuesta College and Cal Poly. A very high percentage of these students live in the City of San Luis Obispo. That is clearly illustrated by the Census 2000 finding that the average age of the City's population is only.26.2 years. This high percentage of college students has another important "statistical ramification". Because most college students "technically" have low incomes, the City's median income level is artificially low. This skews the housing affordability index. • San Luis Obispo has the highest percentage of rental properties of any City in the County. Approximately 60% of the City's housing units are rentals. • Most homeowners in San Luis Obispo could not afford to purchase the home they Are living in today. It, therefore, follows that the City's most affordable housing stock is comprised of the homes that people own and currently live in. Census data reveals that 20% of the City's existing home ownership was lost through conversions to rentals between 1990 and 2000. The vast majority of these conversions were to high density, high rent, student rentals. 1/26/04 - 5 • The speculative purchase and conversion of existing single-family homes in established neighborhoods to high rent, high-density student rentals does not create"affordable infill housing." • High density student housing in single-family homes raises rents beyond the level affordable to most families and drives up housing prices because the sale price is often based on rental income potential. Conversion of existing single- family homes to high-density student rentals has repeatedly driven surrounding families out of homes that were affordable to them. This represents a loss of housing stock that is affordable. 9. Does RQN support increasing residential densities in the City? Yes. RQN supports increasing residential density in the annexation areas and in the commercial and office zones of the City. 10. Has RQN supported increased density in existing residential neighborhoods? RQN has strongly supported the Secondary Dwelling Unit Ordinance as a valuable means of adding "affordable" accessory dwelling units within the existing residential zones of the City. It is imperative, however, that the owner-occupancy requirement and the architectural guidelines remain in place to preserve the character of the City's neighborhoods. 11. Does the City need to increase density in the existing R-1 (low-density residential) neighborhoods to meet its regional housing need of 4,087 dwelling units? No. According to City Planning Staff, the City does not need to increase the density in established R-1 (low-density residential) neighborhoods to meet the regional housing needs allocation. 12. Does RQN support further density increases in the City's established R-1 (low- density residential) neighborhoods? No. 13. Does HCD certify Housing Elements that do not increase density in existing R-1 (low- density residential) zones? Yes. The City of Pasadena is a perfect example. They have met almost all of their regional housing needs allocation by adding high density residential to their commercial and office zones. The density of R-1 neighborhoods was not increased, and in some cases it was even decreased. 14. Does RQN support Planned Development (PD) zoning in existing R-1 (low- density residential) neighborhoods, on parcels of less than one (1) acre? No. Currently, the City of San Luis Obispo allows Planned Development (PD) zoning in all residential neighborhoods on parcels of one (1) acre or more. City planning staff has suggested that it would probably be very difficult to meet the intent of the PD zoning regulations on parcels of less than one (1) acre. RQN agrees 1/26/04 - 6 with that assessment. * ( It is interesting to note that the city of Pasadena only allows PD Zoning on parcels of two or more acres in their low density residential zones. RQN believes this should be the requirement for the existing R-1 (low density residential) neighborhoods of San Luis Obispo. 15.Does RQN support'7nfilln in R-1 (low-density residential).neighborhoods? RQN is supportive of infill development that is consistent with General Plan Policies, City regulations, and specifically the following definition contained in the Land Use Element Glossary: 17nfll is development on vacant sites which are essentially surrounded by urban development; and inside the city limits existing when this element was adopted". [Emphasis added.] D. GROWTH MANAGEMENT/ GROWTH COSTSS 16. What does the curren General Plan Land Use Element say about growth management and growth costs? According to the GP LUE the city should achieve a maximum annual average population growth rate of one (1) percent - the General Plan also manages expansion of growth- inducing activities. LU Policy 1.0.1: Growth Management Objectives The City shall manage its growth so that: A) The natural environment and air quality will be protected. B) The relatively high level of services enjoyed by City residents is maintained or enhanced. C) The demand for municipal services does not outpace their availability. D) New residents can be assimilated without disrupting the community's social fabric, safety, or established neighborhoods. E) Residents' opportunities for direct participation in City government and their sense of community can continue. LU Policy 1.0.2: Development Capacity and Services The City will not designate more land for urban uses than its resources can be expected to support. LU Policy 1.14: Costs of Growth The costs of public facilities and services needed for new development shall be borne by the new development, unless the community chooses to help pay the costs for a certain development to obtain community-wide benefits. The City will adopt a development fee program and other appropriate financing measures, so that new development pays its share of the costs of new services and facilities needed to serve it. 1/26/04 - 7 17. The draft Housing element proposes to amend the general plan and growth management regulations (SLOMC 17.88)to exempt housing that is affordable to very-low, low and MODERATE - income housing from growth management. If development impact costs for very low, low, and MODERATE income development are not collected from the developer, who will pay these costs? Generally, everyone in the City will pay these costs, either through increased fees or taxes on all residents, or by lowering current levels of service valued by the residents. (See: Fee Waivers and Housing Affordability White Paper & The Draft Housing Element and Housing Element Task Force Recommendations (October 17, 2003) by the City of San Luis Obispo) 18. If very low, low and moderate income development is exempt from growth management, do its impacts on air quality, water, road, sewers, schools, and police and fire levels of service go away? No. 19. As an incentive to build affordable housing, the City currently exempts low and very low income housing from impact fees and growth management. What happens if the same incentives are also given to moderate income housing? The incentive to build low or very low income housing is severely lessened. And, all allowable growth, under growth management, will be for above-moderate housing. E. DEMAND MANAGEMEN71 20. Have City residents supported managing the demand for housing? Yes. Measure G was on the 1989 City ballot and passed by 68%. It asked City voters if the City's Growth Management Ordinance should be expanded to include commercial development. F. VOTERS AND REFERENDU 21.Is the Housing Element subject to voter referendum? Yes. A voter initiated petition would have to be circulated to place the issue on the ballot. Prepared by: Residents for Quality Neighborhoods 1/26/04 - 8 i Attachment A SAN LUIS OBISPO COUNTY, CITIES & ACCOMMODATION OF GROWTH • Over what population base has each City stretched its resources? • What are the population densities of each City? POPULATION DENSITY CITY POPULATION SQUARE MILES PERS . MILE Paso Robles 26,000 27.0 963 Atascadero 26,411 24.38 11082 Morro Bay 10,500 6.16 11750 Pismo Beach 81300 3.50 2,371 Arroyo Grande 16,000 5.0 3,200 San Luis Obispo 44,613 10.7 4,500 Grover Beach 13,132 2.5 5,252 SUMMARY: The City of San Luis Obispo has accommodated more growth than any other City, has stretched its resource base over the greatest number of people, and has also reached one of the highest population densities of any City in the County. 1/26/04 - 9 Allen Settle- Housing Update LL _Page 1 From: Pbuschur@charter.net To: <dromero@slocity.org>, <cmulholland@slocity.org>, <jewan@slocity.org>, <asettle@slocity.org>, <kschwartz@slocity.org> Date: Mon, Jan 26, 200412:28 PM Subject: Housing Update Dear Council Member RECEIVED JAN 2 71 2004 I would like to express my concern regarding the Housing Conservation SLO CITY CLERK Policy item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, "the city will adopt a no net loss housing ordinance." many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, "the city shall consider adopting a no net loss housing ordinance." (Housing conservation item 1.23.8) The current wording does not carry the mandate and would allow the public an appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. Sincerely RED FILE MEETING AGENDA DAT X` ITEM #—'P—*� Paul Buschur CENTURY 21 San Luis Properties Phone 800-441-5023 or 805-541-3536 COUNCIL f�CA0 ADD DIR 1-27"ACAO Zf IN DIR t�ATTORNEY FIRE CHIEF - CLER H0RS - RpEC vv�IEL .fsOE4ICE UTIL DIR ;Allen Settle _ Page 1 From: 'Paul Bonjour" <paulbonjour@msn.com> To: <dromero@slocity.org>, <cmuIholland@slocity.org>, <jewan@slocity.org>, <asettle@slocity.org>, <kschwartz@slocity.org> Date: Mon, Jan 26, 2004 11:20 PM RECEIVED Dear Council Member JAN 2 7 2004 SLO CITY CLERK I would like to express my concern regarding the Housing Conservation Policy item 3.3.5 in the draft of the new Housing Element. I believe that given the current wording, "the city will adopt a no net loss housing ordinance." many property owners may be negatively affected by the mandatory adoption of such a policy. I believe the wording should remain the same as it reads in the existing element, "the city shall consider adopting a no net loss housing ordinance." (Housing conservation item 1.23.8) The current wording does not.carry the mandate and would allow the public an appropriate voice regarding this issue at the time the Council would consider a new ordinance. The Council should retain all options regarding a new ordinance. Sincerely ,eCOUNCIL LCDD DIR i,ZCAO ;?'-IFIN DIR ;MACAO FIRE CHIEF TTORNEY �PW DIR _, LERKYORIG POLICE CHF ❑ DEPT HEADS o�REC DIR RED FILE zUTL DIR MEETING AGENDA DAT & "k ITEM Richard Schmidt _ '25444247 Mi11/26/4 03:37 PM D1/2 RED FILE RECEIVED RICHARD SCHMIDT - MEETING AGENDA P 204 A 5J 4 -4 47 CAO ErFIN DIR SLO CITY CLERK ZrACAO 21-FIRE CHIEF January 25, 2004 eATTORNEY 2rp1w DIR 2rCLERK/ORIG ('POLICE CHF ❑ DEPT HEADS fGG R=C DIR Dear Mayor Romero: LITIL DIR hR_DIR- These are difficult times for governmental integrity. At the national level, we see crony politics in daily action, marching forward under pleasant-sounding slogans like Healthy Forests and Clean Skies which are mere fig leaves for programs that loot the public welfare for private gain. Unfortunately, similar crony politics appears to have spread to San Luis Obispo. The housing element update is one example. The normal update process would begin with an energetic effort by the city to ascertain what residents want.. Instead, for reasons that remain hidden, this time city staff forged an alliance with a formal coalition of developers, realtors, and fellow travelers, and created a one-sided "task force" process designed to let these vested interests hijack the General Plan. The result is a draft document which advances a list of radical changes intended to break apart a 27-year community consensus about the broad direction of our community's general plan. It can fairly be called the No Developer Left Behind act of 2004. It puts the aspirations and needs of city residents behind satisfying the greed of those the city invited to shape the update. As you know, this plan is coming before the city council this week. One of the most strident developer coalition members is the San Luis Obispo Property Owners Association, which had three of its board members on the city's housing task force. Its official task force representative was accorded extraordinary access and special treatment by staff. When other task force members, including myself, questioned why they were being denied all knowledge about draft element policies being written by staff, (1) this member volunteered -- several times-- that he'd seen the draft, and it was "pretty good," and that he regularly provided staff input, which they were incorporating. Indeed, when the draft first emerged into daylight, it contained many of his proposals. When staff forwarded the draft to the planning commission, they also sent along this member's lengthy writeup of a 70% density bonus, an idea rejected even by the task force, a favor accorded no other task force members' rejected proposals. (This same idea was also published in the SLO Property Owners newsletter, suggesting the organization's support.) It was unclear why staff accorded the SLO Property Owners representative such favored treatment and access. Whatever the reason, this looks pretty bad to the public, especially when we learn that our mayor sits on the SLO Property Owners board.(2) Mr. Mayor, with all due respect, your sitting on the board of an advocacy group which has helped hijack the housing element update, and then presiding over the review of that hijack on behalf of the public, presents you with an untenable common law conflict of interest. This is the classic divided-loyalties-type conflict of interest, akin to sitting in judgment of your mother-in- Mayor Romero, Page 1 Richard Schmidt 4 5444247 ME 1126/4 03:37 PM p212 law's rezoning application (to borrow an analogy from Judge Picquet). Others would say it cannot pass the "smell test." Mr. Mayor, I don't for a moment question your honesty, but I do question the ability of any human being to participate in a public process as essential to our city as this one will be while simultaneously serving two masters with opposing interests -- the public interest, and the private interests of those most close to him -- and pulling it off in a manner that doesn't raise serious questions about propriety and fairness. Compounding the problem are two additional issues: 1. 1 don't recall, when the process for the housing element update was being discussed by the council, ever hearing you note, for the public record, your apparently long-term personal involvement in an interested organization, let alone your board membership, when said organization was being provided such great influence over the outcome. Isn't this information the public and your fellow council members deserve to know? (Perhaps the council needs to improve its interest disclosure policies.) 2. 1 also find it unsettling that, in addition to direct involvement with SLO Property Owners, the list of your campaign contributors (noting, also, that it is mainly your very well-financed campaigns that have multiplied the cost of seeking local elective office) is remarkably close to the list of those lining up to hijack the general plan. At the very least, this creates an awkward situation, since your siding with them would be perceived by the public as a payback, your snubbing them might be perceived by them as ingratitude. Clearly, Mr. Mayor, for the integrity of the public process, you need to recuse yourself from consideration of this housing element. Your involvement with SLO Property Owners puts you too close to the fray. I fail to see how you can participate, as mayor and as a partisan, in this element's review and adoption without raising numerous questions about fairness, propriety, ethics, the integrity of the public process, and so on. I am therefore asking you to recuse yourself from acting on the housing element. For the good of the city and your own reputation, please step down when the housing element comes forward. Your esteem in the public's eyes will rise if you do. Sincerely, Richard Schmidt (1) Staff's response was until the draft was released to the public, the task force couldn't see it, since we were "public." So why was the SLOPOA representative treated differently? Perhaps he is secretly on the city's payroll and therefore not "public"? (2) Both the 2003 board roster and the fall/winter newsletter list this board membership. cc: 1. Members of the city council 2. FPPC Mayor Romero, Page 2 COUNCIL � CDD DIR ICAO -?jFIN DIR ACAO ,7oFIRE CHIEF ATTORNEY .a"PW DIR FEEED MEMO Z CLERKORIG 2rPOUCE CHF ❑ D T HEADS 2-REC DIR 004 10 -0 H.R L DIR January 26, 2004 -- _ _z HR DIR ERK To: Jeff Hook, aze, John Mandeville From Ken Schwart RED FILE Copy' Ken Hampian MgETING AGENDA Re: Housing Element Update DATEIaLk ITEM #-21±J You asked to be alerted to issues/questions prior to the public hearings slated for Tuesday and Thursday, January 27 and 29. I have concentrated my reading as you have recommended on Chapter 3, consequently there may be answers to a couple of my concerns located elsewhere in the documents. If so, I need to be directed to those locations. 1. I find it very puzzling that in all of the verbiage about `housing' and `housing units' and `households'that there is no definition of`house.' Just what is a house? I get the idea that we all think that a "Housing Element"is an important unit of our General Plan—at least the State does—yet this document comes across as a huge impersonal compilation of rules and directions,goals,polices and programs without ever getting to the heart of why a `housing element' is important. I presume that a `house' is a unit of`housing,'but ifthis `housing element'never defines house,then the importance of the housing element is lost on me. The term`dwelling unit'is used a lot. If we substitute `house unit' for `dwelling unit' does the meaning remain the same? When does the term`home' enter the picture? 2. The assignment of responsibilities for improving the inventory of housing units in SLO appears to be laid at the doorstep of the city. I don't accept this premise. I remember that it was the Chamber of Commerce who identified the lack of workforce affordable housing as one of the major problems effecting business in SLO. And the Chamber published a housing study in supportof their position. I also remember very vividly that the State's Housing and Community Development Department identified the lack of housing as one of the major deterrents to maintaining the State's economic position. HCD then dictated that each local government entity throughout California would be held responsible for accommodating a proportional share of this perceived housing need. No ifs ands or buts. As I read the docaments presented, I find no assignment of a share of the responsibility for producing more housing to the private sector. I think this is a huge and unacceptable void. MEMO:page 2 I want to know what goals will be established for the private sector to meet in return for the relaxation of city regulations that have allegedly restricted housing growth. For instance, what will the real estate industry contribute;what will the financial community contribute;what will the developer community contribute;what will the design community contribute;and what will the homebuuRders contribute? All of these private interests add a cost to the price of housing. If the City is expected to reduce regulations to help cut the cost ofhousmg,what kind ofhelp can City taxpayers,the Chamber of Commerce and HCD expect of the private sector? If the answer is `nothing,' then I have a problem 3. Where are the illustrations? Where are the examples of good housing? We show all kinds diagrams and pictures in our other documents. Why do we not have illustrations showing what a good workforce affordable house looks like? Surely there must be a passel of examples of good designs. In fact,why doesn't this document contain a number of"Stock plans"with the proviso: `Build Plan 101A and the City will issue you a building permit over the counter at 50%of the normal permit fees." "Construct a four- plex using Plan 4144P and the City will issue you a building permit over the counter at 30% of the normal permit fees." "Add a floor of apartments to your downtown commercial building using apartment units conforming with Plan 603-CD and the City will grant you use of use of X parking spaces within the DT parking district." Etc., etc. There has been much talk of`incentives.' OK, I favor incentives,but on terms that return a measurable benefit to the City. The only reference I find to `design' is 6.3.11 on page 22. Why is this? If we really want to produce affordable housing we are going to have to come to terms with simplicity. Merchant homes are just like SUV's. We need to unload all of the gewgaws and get down to the basics of what constitutes the essentials of a good house(dwelling unit). The building industry(and city folks too)have gotten so far away from simple,well-designed housing units that we(collectively)have forgotten what they look like. IF the city is going to subsidize housing, then we absolutely must subsidize good design. 4. Last, but not least, I find far too much unnecessary repetition throughout chapter 3. Program language is very,very similar to Policy language. Can some ofthis be cleaned up? I RECEIVED Monday, January 19, 2004 RED FILE JAN �/ �`j 'ZUU'i IVIEFTINQ AGENDA SLO CITY CLERK San Luis Obispo City Council DATE L* ITEM #'�i 990 Palm St. San Luis Obispo, Ca. 93401 Dear Mayor Dave Romero and City Council: San Luis Obispo's Planning Commission did an excellent job reviewing and making recommendations on the draft Housing Element during weeks of detailed review and discussion. Commissioners built on good ideas the staff recommended to help the city and private sector work more effectively together to provide a full range of housing options. The San Luis Obispo Chamber of Commerce, Association of Realtors, Property Owners Association, Downtown Association and Home Builders Association jointly reviewed each draft of the Housing Element and attended every commission meeting. We were consistently impressed with how carefully commissioners listened to, weighed and responded to public input and carefully considered recommendations from the city-appointed Housing Element Task Force. Our coalition particularly endorses commission decisions to:. • Retain the in-lieu fee option in the inclusionary housing program. This will help builders meet the city's housing needs on land with environmental constraints (Program 2.3.1). • Require affordable units in mixed-income projects to "be comparable in appearance and basic quality to market-rate units." This flexibility will let builders provide the best possible market-rate and affordable units (Policy 4.2.2). ^CIL _-CDD DIR 2-CAO ZFIN DIR y"7rACAC 2rFIRE CHIEF .I1-ATTORNEY B"PW DIR ZCLERK109IG rPOLICE CHF ❑ DEPT HEADS 0"REC DIR 7 :XV @"UTIL DIR _ ei HR DIR • Change the maximum number of very-low income units in a project to 23. That will allow enough units to include an onsite manager. That will make affordable housing easier to operate after construction(Policy 4.2.3). • Require developments of 20 or more units to offer a variety of dwelling types and sizes or forms of tenure. Commissioners made this more effective by raising the number of units from four and increasing builder options(Policy 5.2.4). • Use incentives such as increased building heights and reduced parking or open space requirements to promote housing in such desired places as the downtown and expansion areas. Home builders report that development standards now stop them from achieving densities land is zoned for(Policies 6.2.3 and 6.2.6 and Program 6.3.2). • Initiate amendments where appropriate to rezone commercial, manufacturing or public facility.zoned areas to promote higher-density, infill or mixed-use housing. Home builders report that the biggest factor in the rising cost of housing is the lack of available land to meet the residential demand (Program 6.3.6). • Adopt flexible zoning and subdivision standards in return for providing affordable housing or mixed uses. Allowing builders to know in advance what flexibility will apply will assist in the construction of more moderately priced units. (Program 6.3.8) • Balance efforts to encourage infill with annexing land to meet all housing needs. Communities need to provide affordable rental and for sale units to prevent their workforces from commuting long distance (Program 6.3.9). • Exempt residential projects fewer than four units from architectural review. This will cut costs for smaller projects by speeding the development review process on simpler applications (Program 6.3.14). • Clarify and focus the former"Demand Management" section so it emphasizes "local preference."This will help achieve the desired outcome (Goal 10.1).. • Add a section that ensures the ability of legal, conforming, non-residential uses to continue where new housing is proposed on adjacent or nearby sites. (Goal 11). We encourage the City Council to support the overall concepts that the commission recommends. We believe they did a yeoman's job in their review of the Housing Element draft we hope that you will choose to approve their recommendations. Sincerely yours: 6 ��i�i�T ���cJL-✓i S �/S�d �Ss� Or �c�ii L/C7� C \(�?S��ler. l ( ✓�PJ'S I�SSDC rcn-Arv- ��� a x ,570 (D \40 Richard Schmidt V 544-4247 1&1/23/4 02:21 PM D1/3 RED FILE RECEIVED MEETING AGENDA RICHARD SCHMIDT DAT `� 20.1TEM # l IAN 2 3 2004 SLO CITY CLERK 112 Broad Street, San Luis Obispo, CA 93405 (805) 544-4247 'COUNCIL 2-CDD DIR January 23, 2004 ,ICAO ;F N DIR VIA FAX ACAO al -,FIRE CHIEF To the Council ATTORNEY a"PW DIR Re: Housing Element and Mixed Use Expectations �CLERK/ORIG fZ'POLICE CHF � DST HEADS fZ'REC DIR ATTORNEY 2 UTIL DIR Dear Council Members: t•- _ t'HR DIR I remain concerned that staff continues to undersell to you the value of mixed use as a way to provide lots more housing and lots better land use in San Luis Obispo than any other method contemplated in the draft Housing Element! This is not a propagandistic statement -- it is fact. Please note on the next page the potential, over time, to nearly double the number of housing units in the city by taking one simple step-- applying the MU overlay zone to suitable commercial property. I remain totally baffled at the city's unwillingness to apply the MU zone as was intended upon its creation -- namely, as an overlay zone that would produce upper story residential units above new businesses and rebuilt businesses throughout town. This can be done without disrupting our existing neighborhoods through haphazard densification, such as the building industry/speculator class people have selfishlyhad inserted into the draft HE. In fact, mixed use's contribution to the housing stock dwarfs anything that could conceivably be accomplished by those neighborhood-bashing proposals (advanced largely by people who will not be affected by them because of where they live). I have watched as large parts of our commercial land base, areas where mixed use would be a wonderful adjunct to commercial use, have redeveloped with no housing component, including: Taft- California, where service stations have been replaced with strip malls; Foothill Square and Foothill Plaza; Foothill-Chorro (Ferrini complex); Copeland Center/Court Street; Downtown Center; Madonna Plaza; San Luis Mall/Promenade; Broad-Orcutt; Brickyard; among others. We've lost far too much opportunity to date. We need to implement MU now, before more opportunities are lost. To that end: flegardina the draft Housing Element: Policy 6.2.3 is fine for downtown, but it's not enough for the city as a whole. Please add 6.2.x, an additional policy, to read: "6.2.x. Apply the mixed use overlay to suitable commercial properties throughout the city so new development and redevelopment will incorporate housing." and a corresponding new program, "6.3.x. As a priority matter, review all commercial areas throughout the city for mixed use Richard Schmidt 1W 544,4247 _MD 1/23/4 02:21 PM 02/3 housing potential, and Institute application of the MU zoning overlay to the city's zoning map for all found suitable for such use." Regarding the discussion of mixed use potential on page 136 of the draft HE, this is a remarkably underwhelming assessment of the mixed use potential to supply housing, which actually cuts the potential from the existing Housling Element Table 6 by two thirdsl It is evident howthis has been done -- by considering only "vacant and underutilized land that could accommodate mixed commercial and residential uses" -- but not why it has been done. As should be clear from my recitation above of selected "lost opportunities," considering vacant and underutilized land isn't enough. We should be looking ahead to future redevelopment of everldhilig, which takes place incrementally about once per generation in our throwaway stripmall culture, andup t in1p ace today the ' ectation about the makeup of that redevelopment when it occurs some years down the road. If we don't, we'll continue to miss this opportunity. Please give mixed use the front and center position it deserves in the housing policy of this increasingly urbanized place. Please adopt the additional policy and program suggested above. Please, finally, direct staff to revise the discussion on page 136 to include the expectations due to incremental redevelopment of commercial property throughout the city, and to revise its expected numbers upward accordingly. Thank you, for the good of our city and our neighborhoods. Sincerely, Richard Schmidt Attached: "Housing Potential in Commercial Zones by Applying the Mixed-Use Zone Overlay" Richard Schmidt 4544-4247 It 1/23/4 02:23 PM ❑3/3 A To Housing Task Force From Richard Schmidt Housing Potential in Commercial Zones by Applying the Mixed-Use Zone Overlay(Some Sample Density Scenarios) Zone Acres' R-1 Overlay R-2 R-3 Allowed "Expected"' (6 units/acre) (12 u/a) (18u/a) (by zoning) CC 43 258 516 774 1548 1548 CN 51 306 612 918 612 153 CR 168 1008 2016 3024 6048 4536 CS 465 2790 5580 5580 O 168 1008 2016 3024 2016 504 Total Units Possible 5370 10740 16110 10224 6741 Food for thought: This chart shows the housing potential we're losing by failure to apply the mixed use zone as an overlay zoning designation to the various commercial districts where mixed-use housing is feasible. (I've used the "traditional" zoning densities only as a way to translate this information into familiar conceptions of density.) Obviously, one doesn't gain all this overnight, but as long as the mixed use zone isn't applied, we're unlikely to get any of it. We've already "lost" hundreds of potential units by delay (for a decade) in implementing an existing zoning classification. Worth noting: 1. We could theoretically meet our entire regional housing numbers without annexing another square inch of land to the city. The statement that "to meet our needs we must annex large new areas and build to higher density in them" thus doesn't withstand a simple mixed-use analytical test. 2. In theory, we can nearly double the number of housing units without annexations. 3. Infrastructure is already in place in these zones. Development costs to city and developers are therefore much less than when developing raw land at the urban edge. 4. Given their locations, many commercial districts are efficiently served by public transportation, which outlying subdivision development cannot be, even if laid out along so-called "new urbanist" principles. Mixed-use applied to existing commercial areas thus promotes compact urban form as well as efficient use of already-urbanized land and infrastructure. 5. In practice, it would make sense to apply a mixed-use overlay to the zoning map rather than to an entire zone classification so that those areas best suited for housing can be selected for this application. One could then mix-and-match densities from the appropriate column above, for example, depending upon the specific situation at hand. In existing city limits. Future annexations will add more acres to these zones. 2 The "expected"density is from Table 6 in the Housing Element, indicating a best guess about actual density likely. i Home Builders Association RECEIVED OF THE CENTRAL COAST JAN 2004 providing quality housing and communities SLO CITY CLERK Jan.23,2004 Mayor Dave Romero and City Council RED FILE 990 Palm St. MEETING AGENDA San Luis Obispo,CA 93401 1 a DAT ITEM #3�1 Dear Mayor and Council Member: The Home Builders Association has mostly high praise for the Planning Commission's draft Housing Element update.However,when the City Council begins considering the update Tuesday,January 27,we recommend revising the inclusionary housing section so it is more incentive driven and encourages building more moderately priced homes. Table 2A in the inclusionary section 2.3 uses a sliding scale to determine the number of affordable homes required in the annexation areas based on the average square footage of units.As the average square footage increases in a project,more affordable units are required. The commission recommends that units averaging less than 1,200 square feet have no inclusionary requirement because they would be small enough to be considered affordable. That is a clearly a step in the right direction. But the inclusionary waiver should include units up to 1,500 square feet.A typical new single-family home built in San Luis Obispo County today is about 2,200 square feet. Homes that are one-third smaller than the typical unit will sell for less,should be considered moderately priced,and encouraged by government. You can offer that encouragement by increasing the size for which the inclusionary waiver is granted. Such an action would be good land use, social and environmental policy,by promoting a denser use of residential land,and it also would signal home builders that the city wants to work with the private sector to find solutions to the community-wide housing affordability problem. Inclusionary housing programs are generally unproductive since they produce few units and put upward pressure on the price of market-rate housing.They aggravate the affordability problem and unfairly burden home builders. Home builders wind up bearing almost the entire fiscal responsibility for constructing affordable housing that benefits everyone in the community.The affordability problem is the result of a supply-demand imbalance created by bad land use policy,neighbor opposition to most residential developments,and existing homes being resold for top dollar.The problem has not been created by new construction,but the home building industry is very interested in partnering with local government to help address this problem. I cannot attend the January 27 City Council meeting,but will attend the January 29 meeting to discuss this with you. Thank you very much for considering our ideas. L ll can be reached at(805)546-0226 or jbunin(a,hbacc.org if you would like to further discuss our letter. 'COUNCIL TCDD DIF Sincerely yours 2-CAO Z,`-IN DIR Z'ACAO Z. FIRE CHIEF ATTORNEY 21:1WW DIR Jerry Bumn Z'CLERKIORIG 2,yPOUCE CHF Government Affairs Director 0 DUT HEADS Z REC DIR Home Builders Association of the Central Coast �rCC ,Er UTILDIR �HR DIR P. O. Box 13010 805.5460418 : voice 2078 Parker Street, Suite 210 805.546.0339 : fax San Luis Obispo, California 93406-3010 www.hbacc.org : internet