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HomeMy WebLinkAbout01/19/2010, PH 4 - DRAFT HOUSING ELEMENT UPDATE (GPA 120-08) council M,fi,Dit, 1/0 j acEn0A uEpont . ,wmNum //�� CITY OF SAN LUI S O B 1 S P 0 FROM: John Mandeville, Director of Community Developm t Prepared By: Kim Murry and Jeff Hook W SUBJECT: DRAFT HOUSING ELEMENT UPDATE (GPA 120-08) RECOMMENDATION As recommended by the Planning Commission, adopt a resolution approving the Negative Declaration of Environmental Impact and the November 2009 Draft Housing Element of the General Plan. REPORT-IN-BRIEF Updating the General Plan Housing Element is a key step in the City's efforts to expand affordable housing opportunities and is required by California Government Code Section 65580- 65589.8. Once adopted, the 2009 Housing Element will replace the current Housing Element adopted and certified by the State in 2004 and guide City housing actions through 2014. The updated Housing Element builds on the strong foundation created during the previous update by the Housing Element Update Task Force. It carries forward many policies and programs that are still needed or those that have yet to bear fruit. Following six public hearings and three public workshops, the Planning Commission has referred the Update to Council for final action, along with a recommendation for a Negative Declaration of environmental impact. The November 2009 City Council hearing draft includes changes made by the Commission, and addresses comments from citizens and the State Department of Housing and Community Development (HCD). The Draft has also been reviewed by the Human Relations Commission and endorsed by the County Airport Land Use Commission. Last May, Council authorized staff to submit an early draft housing element to HCD for preliminary review to meet the State's August 31, 2009 deadline. From that initial review, the City received a detailed letter from HCD describing changes and additions needed to achieve State certification. In November 2009, staff submitted a revised draft—the November 2009 City Council Hearing Draft Housing Element before the Council this evening — which addressed HCD's comments. State officials have acknowledged our hearing schedule and advised staff they intend to review and comment on the revised draft before the Council hearing. Staff will review any comments received from HCD with the Council at the hearing. Once the Housing Element is adopted, State law allows HCD up to 90 days to review the element and certify compliance. 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 / a P Council Agenda Report-Draft Housing Element Update January 19,2010 Page 2 section of the document and as such, has been the focus of community interest and Planning .Commission work. DISCUSSION State Requirements By law, housing elements must be updated every five years. The update process is a tool to update housing policies and programs to reflect the changing needs, resources, and conditions in the community, and to respond to changes in housing law. Much of the content of the Housing Element is prescribed by State law and reviewed by HCD to ensure compliance, however local jurisdictions must also address local housing conditions in their Housing Elements. Once HCD determines a city or county housing element meets requirements, it "certifies" that locality's housing element. The process leading to adoption of the 2004 Housing Element Update was intensive. For that update, the City assembled a task force of community members and conducted a lengthy and extensive outreach and analysis process to develop the City's first Housing Element to achieve HCD certification. The current update process has not been as intensive because most of the policies and programs in the 2004 Element are still relevant. The 2009 Update builds upon the 2004 Housing Element by carrying forward policies and programs that are still needed or those that have yet to bear fait. The Planning Commission's efforts focused on 1) evaluating whether there had been substantial changes in the community or local housing needs, 2) determining whether existing policies and programs are meeting housing needs, and 3) identifying new policies and programs to meet unmet housing needs or changes in housing law. The updated Draft has been revised and expanded to address citizen and HCD comments. Table 1 on pages 13 and 14 of the Draft Housing Element provides a brief checklist on how the document meets housing element requirements. In addition, Attachment 2 includes HCD's comments on the preliminary draft element and an explanation of how the Council Hearing Draft responds to those comments. While some real estate values have declined during the recession, housing costs still outpace incomes of most San Luis Obispo residents, forcing many prospective homebuyers who rent or work in San Luis Obispo to seek affordable housing elsewhere. Now, more than ever, state and federal grants are critically needed to help make housing "affordable" for moderate and lower income households. By once again achieving housing element certification, the City can continue to compete for State housing grants and other forms of housing assistance which would not otherwise be available. Since 2004, the City has received over $600,000 dollars in grant funds due to having a certified Housing Element. In addition, affordable housing projects proposed by the Housing Authority and by ROEM development have been eligible to apply for state grants and tax credit financing that would otherwise not be available if the City's Housing Element was not certified. PN �f-a Council Agenda Report-Draft Housing Element Update January 19,2010 Page 3 Updating the Housing Element began in August 2008. Staff worked with the San Luis Obispo Council of Governments, the County, the other cities in the.County, and the State to determine the City's "fair share" of housing production. Table 1 shows the Regional Housing Need Allocation or"RHNA"for each jurisdiction in San Luis Obispo County. Table 1-San Luis Obispo County Regional Housing Need Allocations Revised RHNA Allocation - Oct 2008 RCD 9-26-2008 Revision (Formula derived by applying SLOCOG proportions to Revised Totals) Very Low Low Moderate Above Moderate Total Alloca- Alloca- Alloca- Alloca- Alloca- Jurisdiction % tion % tion % tion % tion tion Arroyo Grande 23.0% 16.0% 19.0% 42.0% 84 59 67 152 362 Atascadero 1 23.0% 107 16.0% 75 19.0% 86 42.0% 194 462 Grover 23.0% 17.0% 19.0% 42.0% Beach 44 32 36 81 193 Morro Bay 23.0% 41 17.0% 30 18.0% 33 42.0% 76 180 Paso Robles 23.0% 151 16.0% 105 19.0% 120 42.0% 270 646 Pismo 23.0% 16.0% 18.0% 43.0% Beach 36 25 29 68- _ 158 San Luis 23.0% 370 16.0% 259 19.0% 295 42.0% 665 1,589 Obispo Un- Incorpor- 23.0% 303 16.0% 211 19.0% 241 42.0% 540 1,295 ated Total 23.3% 1,136 16.3% 796 18:6% 907 41.9% 2,046 4,885 Each jurisdiction's housing element must, under law, show sufficient residential capacity in terms of adequate zoned land to accommodate its RHNA. Compared to the City's 2004 RHNA of 4,383, our 2009 allocation of 1,589 can more realistically be accommodated within the housing element's five-year planning period. What's New in the Draft Housing Element? The foundation from the previous Housing Element is a strong one. The City is just now feeling the results of many of the programs implemented in the existing Element. The recommended Draft builds upon housing incentives and requirements in the current Housing Element to increase production of both affordable and market-rate housing over the next five 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 PH q-3 I Council Agenda Report—Draft Housing Element Update January 19,2010 Page 4 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 continue to take an active role in planning, funding and promoting affordable housing. The draft update includes most of the policies and programs from the 2004 Housing Element and includes several new policies and programs. New policies and programs are identified as "new" in the page margins in Chapter 3 — Goals, Policies and Programs. Many of the changes are necessary to bring the City into compliance with several housing laws adopted since 2004, and require local governments to: 1. Provide for the development of housing for households iri a new income category referred to as extremely low income earning 30% or less of the median income in the area; 2. Identify at least one land use zone where emergency shelters are allowed by right; 3. Strengthen legal protections for affordable housing projects within the discretionary review process; 4. Conduct a parcel-specific land inventory to determine residential development capacity; 5. Identify a reasonable accommodation process for households with disabled residents; 6. Treat transitional and supportive housing like a residential use for purposes of zoning and land use entitlements, and to allow them wherever residential uses are allowed. In addition, new programs have been added to address community needs, such as increased recognition of mobile home parks through "MH" overlay zoning, and consideration of possible re-zonings to encourage housing, where appropriate. Most of the new housing programs are found under Goal 6: Housing Production. Public Input Methods and Types of Outreach In its work on the Draft, the Commission retained or added programs needed both to meet community housing needs and to meet State law. In addition to the scheduled public hearings, various segments of the community were invited to contribute to and participate in the update process. To gather information from residents, builders, non-profits, and service providers, several different outreach methods were used, including public hearings, workshops, interviews, and staff presentations/discussions with various civic, neighborhood and housing stakeholder groups. For example, in addition to posting legal ads in the Tribune (larger size), staff maintained an email list of persons interested in the housing update and housing update website. The list was started with contacts from the 2004 housing element update and augmented with contacts from Peoples' Self Help Housing, Housing Authority, Home Builders Association, The Tribune Government Affairs, SLO Chamber of Commerce, Community Action Partnership, Workforce Housing Coalition, League of Women Voters, Mission Community Bank, Residents for Quality Neighborhoods, SLO Property Owners' Association, Downtown Association, Habitat for Humanity, Superintendent of Schools, San Luis Coastal Unified School District, New Times, Council Agenda Report—Draft Housing Element Update January 19,2010 } Page.5 SLO Council of Governments, WestPac, Northern Chumash Council, ECOSLO, Economic Vitality Corporation, County of San Luis Obispo, SLO Senior Center, 33 mobile home park residents, and an apartment owner who expressed interest. The distribution list is used to send emails describing upcoming public hearings and workshops. The email notifications contain links to the City's website and to staff reports for the associated hearings so that interested parties can access information being presented and have been able to review the draft Housing Element as it was revised and developed. Public workshops were held to gather input about three key issue areas: Housing Needs in the Community, Development and Resources; and Neighborhoods and Sustainability. Staff used flyers and posters to inform the public about workshops and posted these at public and business locations. While many of the chain stores would not allow posters to be placed due to corporate rules, some allowed flyers to be left for public review and several locally-owned and operated stores agreed to place posters in their windows in addition to having flyers available for viewing. Staff attended meetings or interviewed key members of several interest groups in order to understand issues specific to each. These meetings and interviews have included: Homebuilders' Association, Chamber of Commerce Economic Subcommittee, Housing Trust Fund Executive Director, SLO Property Owners' Association, Workforce Housing Coalition, Mobile Home Park Resident representative, RQN, Transitional Food and Shelter representative, and the Supportive Housing Consortium. A summary of input received and ways the Draft Housing Element was updated to respond to that input is included in the next section. - Input Received The workshops included an opinion survey with several standard questions and several questions unique to the focus of the specific workshop. In addition, a Mobile Home park residents' group representative took survey forms to her group meeting and many surveys were returned from that meeting. The input from outreach efforts to date, along with staff response to the information, is summarized in the Draft and below. Inclusionary Housing Ordinance Input Several people asked that Table 2A, part of the Inclusionary Housing Ordinance, be re-evaluated to improve its effectiveness. Commentors suggested that the adjustment of the inclusionary housing requirement based on average dwelling unit size was problematic — either because the unit sizes (floor areas) were too large to result in affordable housing or too small to incentivize housing development. Other comments indicated that the City's inclusionary requirement is well below others in the State and should be changed to increase affordable housing production. Program 2.5 calls for consideration of changes to Table 2A to provide more ways for commercial development projects to meet the requirements (such as by providing land to accommodate the required number of inclusionary units or by converting off-site units to affordable units through deed restrictions). This change generated support in the development community but concern in other groups. Several non-profit organizations expressed concern that converting existing units TH+5 Council Agenda Report—Draft Housing Element Update January 19,2010 Page 6 to affordable units would not result in additional housing being created and would evict existing tenants. Response New Program 2.16 calls for an evaluation of the Inclusionary Housing Ordinance (IHO) and the effect of Table 2A on the City's ability to provide affordable housing in the proportions shown in the Regional Housing Needs Allocation. An in-depth analysis of the Inclusionary Housing Ordinance and Table 2A will provide information regarding the program's effectiveness, how it compares to other examples in the State, and how Table 2A has impacted the production of affordable units, allowing Council to make informed changes to the IHO as appropriate. New Program 2.5 directs staff to bring forward amendments to Table 2A to develop more ways for commercial development projects to meet inclusionary requirements. Converting off-site. units to affordable units is one possible approach; however, further analysis may indicate this is not an appropriate avenue.to pursue. The program calls for a more comprehensive look at options for commercial development and will involve developing criteria and pros and cons of which approach to use under different site or project considerations. Conclusions about appropriateness of approaches to consider will be aided through the evaluation which adoption of Program 2.5 will trigger. Funding Affordable Housing Input Severar sources indicated that the Inclusionary Housing Ordinance requirements should not be the sole source of funding for affordable housing. Some believed new development carries an undue burden to affordable housing, while others focused on the need to generate supplemental housing funding to augment the City's inclusionary housing requirements. Other input characterized affordable housing as a community-wide benefit that should be supported by more segments of the community to make sure affordable housing gets constructed. Response As part of the implementation of Program 2.16 which calls for the evaluation of the effectiveness of the Inclusionary Housing Ordinance, there will be an opportunity to look at how different communities find funds to help support the production of affordable housing. In addition, Program 6.14 States the City will actively seek new revenue sources and financing mechanisms to assist affordable housing development for extremely low, very low and low or moderate income households and first time homebuyers. Historically, the City has also brought other financial resources to bear when supporting affordable housing developments including State and Federal grants such as Community Development Block Grant funds, BEGIN and First Time Homebuyer Funds. Densi Input Community opinions on residential density vary widely. Several sources provided input on the policies that address infill and density. Some expressed concerns about the changes to R-1 and R-2 neighborhood character if additional density were to be supported in these established Council Agenda Report—Draft Housing Element Update January 19,2010 Page 7 neighborhoods. Others indicated strong support for infill in the form of "granny units" and creative subdivision design, and other comments focused on possible sites for where new housing could or should occur. Some suggested that existing manufacturing zoned areas would be appropriate to consider for mixed use housing, while others indicated that R-3 and R-4 zoned areas near Cal Poly could accommodate greater densities. Response The Draft Housing Element contains several programs that address infill and density. Some of the public comments related to density are discussed under "Neighborhood Concerns" below. Program 6.7 supports redevelopment of public and private utility properties for housing, where appropriate. Program 6.12 calls for the City to consider rezoning of identified manufacturing, public facility, or commercially zoned properties for mixed use or housing development, where appropriate. New Program 6.25 directs the City to evaluate increasing residential density allowed in CN, O and CD zoning districts. New program 6.28 indicates the City should consider changes to the Secondary Dwelling Unit Ordinance to include possible incentives. New program 6.29 indicates the City will evaluate Subdivision and Zoning Regulation changes to support small lot subdivisions, ownership bungalow court development and other alternatives to conventional subdivision design. Any program that specifies changes to ordinances or regulations will require separate public and environmental review which will provide ample opportunity for community members to provide additional input. Neighborhood Concerns Input Much of the input received in the public workshops focused on the effects of rental housing, tenants and non-resident landlords on neighborhoods, including issues of parking, noise, trash, and lack of property maintenance. Other inputs related to concerns about allowing PD zoning on properties less than one acre in size due to issues of parking and incompatibility with the neighborhood character; as well as encouraging housing development on Cal Poly and Cuesta campuses for students. Specific requests included requiring business license approval and a rental inspection program for all rentals; and making it easier to form residential parking districts. Response There are a variety of existing programs in the Housing Element that address neighborhood issues. Specifically, Program 7.8 recommends finding ways to involve residents in decisions affecting their neighborhoods. To this end, staff is in the early stages of describing neighborhood boundaries and characteristics. To accomplish this, staff will solicit neighborhood comments and use the information to better understand, and help craft programs to meet neighborhood needs. Program 7.11 indicates the City will continue to develop and implement neighborhood parking strategies including parking districts. The primary parking concern expressed was the amount of area the district needed to cover and receive resident support before a parking district request could be processed. Several participants found this process to be difficult; however, the City's noticing requirements ensure unintended consequences are anticipated and avoided, where possible. Larger areas are considered as part of the residential parking district program to make sure parking issues for a limited area are not merely "pushed oT' to surrounding residential Council Agenda Report—Draft Housing Element Update January 19,2010 Page 8 areas. The larger area is considered as part of a more comprehensive approach to a neighborhood parking issue. ` Program 3.9 calls for the City to "correct unsafe, unsanitary, or illegal housing conditions". Program 1.6 is intended to help accomplish this. Like Program 3.9, Program 1.6 is carred forward from the 2004 Housing Element and calls for the City to enact a rental inspection program to improve the condition of the City's housing stock. To date, this inspection program has focused on Fire/life-safety issues associated with multi-unit rentals. Developing a program to review every rental in the City would have a large staffing impact and is probably not feasible for the entire City without budgeting additional resources. However, the City's code enforcement and neighborhood services teams work on maintenance and behavior issues within the neighborhoods. In addition, the City Council recently directed staff to bring forward stronger ordinances to address noise and party impacts to neighborhoods which may help alleviate some of the behavioral concerns. Programs 8.14, 8.15, and 8.16 address cooperation between the City, Cal Poly, and Cuesta College to address."good neighbor" programs, and student housing and fraternity/sorority living group needs on campus. A staff proposal to include a program to work with Cuesta College to develop on-campus housing was recommended for removal by the Planning Commission due to concerns of environmental sensitivity of the Chorro Valley and the lack of neighborhood-serving facilities on or near campus. Mobile home parks Input `Mobile home park residents have supported the creation of a new, separate zoning category for mobile home parks. Information provided by the residents distinguishes mobile home parks from traditional neighborhoods and describes their unique maintenance, service and financing challenges; and indicates that these differences may support the need for a new "MH" zone to be applied to existing mobile home parks. Response Mobile home parks provide one of the City's most affordable housing types. Existing policies and programs recognize this affordable housing resource by reflecting support for mobile home rent stabilization (Program 8.12), funding for rehabilitation of mobile homes (Program 1.4), and support for mobile home development in the expansion areas (Program 8.13). Policy 8.2 indicates the City should preserve manufactured housing or mobile home parks and support changes in these forms of tenure only if such changes provide residents with greater long-term security of comparable housing in terms of quality, cost, and livability. The issue of establishing a new Mobile Home park zoning needs further exploration. Several California communities (i.e. Santa Maria, Capitola, Carlsbad, Goleta, Santa Barbara County and Sonoma County to name a few) have used zoning designations to identify existing mobile home parks through overlay zones or single-purpose zones or use restrictions. �N�� �1 Council Agenda Report—Draft Housing Element Update January 19,2010 Page 9 _. Having a single purpose zone category for mobile home parks may work to provide constructive notice regarding applicable requirements, but it will not prevent the parks from converting to another use. The City has adopted rent stabilization and a mobile home park conversion ordinance that better address long-term affordability for the residents and the protection available to tenants in the event the-owner decides to redevelop the mobile home park. In addition, a zoning category 'specific to mobile home parks will not address the unique challenges experienced by park residents related to maintenance. Health and Safety Code sections 18605 and 18610 provide that HCD's rules govern park maintenance and operations. City zoning will have no impact on these issues. Mobile home parks have developed in locations that are covered by a variety of zoning categories including R-2, R-2-S, C-R-MU, C-S, C/OS40, and R-4. Anew zoning category separate from the City's existing categories might not be equally appropriate for all of the existing mobile home park sites. For example, the mobile home park on South Street is identified in the Mid-Higuera Enhancement Plan as appropriate for redevelopment to a higher density residential development. Evaluation of existing land uses and future potential would be most appropriate during the Land Use Element update, especially in light of SB 375 direction and the associated Sustainable Communities Strategy being developed. An overlay zone for existing or new mobile home parks might be a more appropriate method to indicate that other requirements (rent control and conversion requirements) apply to these developments. In response, the Planning Commission supported Program 8.24 calling for the City to consider addition of an overlay zone to existing. mobile home and trailer park sites to provide constructive notice that additional requirements (such as rent stabilization and a park conversion ordinance) apply. County-owned Property behind former General Hospital Input City staff met with the County to discuss possible development of County-owned property behind the former General Hospital. The County is considering development concepts that may include densities of seven to 15 dwellings per acre on property now zoned R-1 (allowing up to seven dwellings per acre), and estate sized lots on the property that is within the City limits but outside of the Urban Reserve Line. The County is also considering working with adjacent owners of several of the larger lots to the south to transfer development rights from lots higher on the hillside and more difficult to develop to the lower lots that could be created behind the former General Hospital. While County development ideas for this property are still very preliminary, the draft Housing Element contains a new policy, Policy 6.6, and a new program, Program 6.23, that address the former General Hospital site and indicates the City should consider assigning a "Special Design Area" overlay with guidance to direct any future development to slopes of 20% or less, to include open space dedication; and to note that an additional water tank may be required. In effect, this program raises the level of City scrutiny for development proposals to address slope, drainage, . access and land use compatibility. This proposed policy and program elicited a strong response from some of the neighbors in the Flora Street and Wilding areas who were opposed to the developments proposed as part of the eastside annexations. They acknowledge that R-1 -P N11— I 1 Council Agenda Report—Draft Housing Element Update January 19,2010 Page 10 development is already possible under current zoning and believe an S overlay zone would encourage residential development, possibly at densities higher than the seven units/acre allowed under the R-1 zone. Response The Commission supported Policy 6.6 and Program 6.23 to guide development proposals and address the site's specific conditions and opportunities. The Special Design Area overlay does not change the underlying zoning, which is R-1 and C/OS on the County's property within the City limits. Several lots in adjacent neighborhoods exist at higher elevations than the area addressed with this policy and program. The intent is to require additional planning review for development beyond what would be required under current zoning, while retaining Council flexibility to consider residential proposals that are compatible and that provide a substantial community benefit, such as affordable housing, open space dedication, historic preservation of Sunny Acres, and infrastructure improvements. If adopted as proposed, the policy and program calls for evaluation and consideration of applying the"Special Design Area", and such an action would require separate public review and hearings before it could take effect. RHNA Credit for Cal Poly Housing The City's 2004 Housing Element credited housing built on the Cal Poly campus towards meeting its Regional Housing Needs Allocation, and HCD and the County of San Luis Obispo did not object to that approach. Cal Poly is outside City limits but inside our Urban Reserve and plays a key role in the City's housing supply and demand. For this update, however, HCD has disallowed claiming 690 dwellings recently developed at Bella Montana and Poly Canyon Village, Phases 1 and 2 toward meeting RHNA because they are located outside City limits. Staff has revised the Draft accordingly. The change does not affect the City's ability to meet its RHNA requirement (See Tables 4 and 5, pp. 56 and 57 of the Draft Housing Element). The Commission accepted HCD's exclusion of the apartment units constructed at Cal Poly with the understanding that, based on HCD's assurances, the City may yet be able to apply recently completed on-campus apartments toward meeting the City's RHNA. Accordingly, in the next Housing Element update cycle, if Cal Poly is annexed and the County has not counted those units in their RHNA performance (which they did not), the City could negotiate an agreement as part of the annexation process to count those units that were built within the appropriate time frame as part of the City's performance toward meeting the Regional Allocation for the current Housing Element(2009-2014). Planning Commission Action The"City Council Hearing Draft" incorporates changes from the working draft presented in May 2009. Staff incorporated changes in response to HCD's review, public input, and the Planning Commission's review and revisions. Overall, the Planning Commission's recommended changes provide more specific guidance on the city housing objectives, particularly with regard to flexible development standards and creative housing products to include small lot subdivisions, bungalow court development and other alternatives to conventional housing designs. Council Agenda Report—Draft Housing Element Update January 19,2010 Page 11 The Commission also provided input on the five year work plan. While all of the housing programs are important, the Commission was interested in identifying those programs that seemed to have the most critical timing. Appendix F of the Housing Element contains the five- year implementation plan. Table A lists the proposed programs sorted by priority and Table B shows all of the programs with additional information related to primary person responsible for implementation, priority, and includes potential resources that might assist with implementation. State Review HCD staff works individually with each jurisdiction and closely reviews draft housing elements for conformance with State housing law. Staff received initial HCD comments on the Draft Housing Element in August 2009 and the Planning Commission reviewed the proposed changes made in response to HCD's initial review. Most comments were generally favorable and several of the comments reflected the need for the City to provide the background information to "show its work". Staff resubmitted the revised Planning Commission recommended draft to HCD staff on November 19`x'. The City's HCD analyst, Melinda Coy, indicated that she would most likely be able to provide comments back by early January. Assuming State comments and requirements do not change markedly, it appears promising that the City will be able to satisfy HCD concerns and achieve certification based on the structure and content of the current Draft Housing Element. If comments are received prior to the City Council hearing, staff will bring those comments forward for Council review. 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's mandatory final review. HCD then has up to 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. Any substantive changes would come back to Council; however staff does not anticipate that major changes will be required since HCD's initial comments are typically the most extensive, with HCD's final review consisting mainly of checking for compliance with earlier comments. 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. Since this Draft Housing Element updates and closely follows the 2004 Housing Element, Council's review can be more focused than was necessary for the comprehensive rewrite of the Housing Element in 2003. Given the Commission's detailed review of the Draft, it may be possible for Council to complete its review in a single meeting. However, if multiple meetings are needed, staff recommends Council focus on Chapter 3 — Goals, Policies and Programs for this first meeting. This is the core of the Housing Element and is the main part of the document that will guide housing decisions. Council Agenda Report—Draft Housing Element Update January 19,201.0 Page-12 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. Environmental Review Community Development Department staff prepared an initial environmental study to evaluate the potential environmental effects of the Draft Housing Element Update (ER 120-08). 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. In 1994, the Final EIR evaluated Draft Land Use Element (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. On November 12, 2009, 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 October 2009 Draft Housing Element, the initial study adequately addressed the project's potential environmental effects. Based on its review of the initial study, the Commission adopted Resolution No. 5536-09 (2009 Series) as shown in Attachment 3, and supported preparation of a negative declaration of environmental impact. In supporting a negative declaration, Commissioners determined the Draft was consistent with the General Plan and was in compliance with State law. Quantified Objectives in the Draft Housing Element Update 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 r. Council Agenda Report—Draft Housing Element Update January 19,2010 Page 13 period from January 1, 2007 to July 1, 2015. The Quantified Objectives anticipate up to 1,589 new dwellings - the full Regional Allocation. The City has sufficient zoned land and infrastructure to accommodate its assigned RHNA. .The City's ability to achieve its Quantified Objectives is contingent upon developer interest in building below-market rate housing, and 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. FISCAL IMPACT Adopting a Housing Element that can be certified by the State Department of Housing and Community Development (HCD) makes the City eligible to receive certain grants, and enables affordable housing developments to qualify for additional grant and tax credit financing. To the extent that these outside funding sources are available, the City is able to leverage the City's Affordable Housing Funds more effectively to assist development of affordable housing projects. ALTERNATIVES State law calls for cities and the unincorporated County to update their housing elements by the end of 2009. While the City has not met that deadline, the State Department of Housing and Community Development staff has assured City 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. Initial Environmental Study(ER 120-08) 2. Response to HCD initial review 3. Planning Commission Resolution 5536-09 (2009 Series) 4. Council Resolution Approving Housing Element 5. Council Resolution Adopting Negative Declaration of Environmental Effect Transmitted separately: 2009 Council Hearing Draft Housing Element Update GACD-P LAND KMURMHousing Element Update 2009\Staff reportACAR I-19-10.doc -?Nq-I3 - Attachment 1 ���iiiii��llllllll (Ilii II l INITIAL STUDY ENVIRONMENTAL CHECKLIST FORM For Eft# 120-08 1. Project Title: General Plan.Housing Element Update 2. Lead Agency Name and Address: Community Development Department City of San Luis Obispo -919 Palm Street San Luis Obispo,CA 93401 3. Contact Person and Phone Number: Jeff Hook(805)781-7176 4. Project Location: Citywide;no specific address 5. Project Sponsor's Name and Address: Community Development Department City of San Luis Obispo 919 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 City zones. 8. Description of the Project: The project consists of the September 2009 Draft Housing Element Update, a five-year plan which explains the City's housing goals, policies, and programs. It updates the current Housing Element which was adopted in 2004. Once adopted, the Housing Element becomes part of the General Plan and will guide public and private decisions regarding housing, development review, land use, City budgets and capital improvement programs. The Draft includes policies and programs intended to increase housing opportunities for extremely low,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. This draft update addresses changes in State housing law and in regional housing needs. State, regional and local housing costs, supply and needs have changed since 2004, as evidenced by current information on real estate prices, affordable housing, and the widening "gap" between rental and purchase housing costs and consumers' incomes. Although the update retains many of the same policies and programs in the 2004 Housing Element, there are also new policies and programs that address these changing conditions. Some of the 2004 Housing Element policies Attachment 1 and programs that were accomplished have been removed, as discussed in more detail in the body of this Initial Study. 9. Surrounding Land Uses and Settings: The City of San Luis Obispo is a community of about 44,000 persons, home to Cal Poly State University, and 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 the chain of 21 missions founded by Spanish missionaries in the late 1700s. The City is the retail, employment, government 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: General Plan Amendments approving the 2009 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. JMbMVA- CITY OF SAN Luis Osisao 2 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 , . . . .... . . .. . .. .. . .. Attachment 1 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 s VIM mss. Energy and Mineral Population and Housing 'z, . 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 enviromnental document must be submitted'to the State Clearinghouse for review by one or more X State agencies (e.g. Cal Trans, California Department of Fish and Game, Department of Housing and Communiry Development). The public review period shall not be less than 30 days (CEQA Guidelines 15073(a)). CITY OF SAN LUIS OBISPO 3 INITIAL STUDY ENVIRONMENTAL C'HECKUST12009 i r Attachment 1 DETERMMATION: 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 prqpar4 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 isTeguired. October 15,2009 Caitlin Morici Date Kim Murry,Deputy c6maunity Development for John Mandeville, Community Director Development Director CITY OF SAN Luis OBISFo 4 INITIAL STUDY ENVIRONMItNTAL CHECKLIST 2009 _ .I Attachment t. EVALUATION OF ENV RONWNTAL EWPACTS: 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 measureshas 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 where 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 OBISPo - 5 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 Attachment 1 Issues, Discussion and Supporting information Sources Sources Potentia„y Potentially Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant impact ER # 120-08 Issues Unless Impact Mitigation Inomol-Ated 1.AESTHETICS. Would the project: a}T' .. a substantial adverse effect oa a xeate v�stxt 17 X b) $ubstanit3llydamagascentciesourceg m�ltidifig,butaotlifiltted; 1 X to trees,rockouteroPPtngs oPetispace,a�tdlu§jatncbwldus K4 ”" Y $ jk1lhl},a local or., sceralc.htgtl9Vayh G $ubsrantaIly degrade the extsUug vt5t�a)v1Szacter Ar'gttallty o£ 8 X ' 'the srte and its srnxoundmgs7 W d Create a n8w source osubstantlal hghtbr glare that would 7,12 X advemc. effeGtiis orni"" "ttinte views,tn tlte'area? a) Policies in the Draft Housing Element Update encourage the development of housing in urbanized areas and is 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 suitability. New residential development would be guided by existing development standards regarding building height,creek and property line setbacks,and protection of important site and environmental features,such as historic features or buildings,rock outcroppings,open space,and heritage trees. Conservation and Open Space Element,policy 9.2.1 addresses views to and from public places,including scenic roadways. This policy guides the City towards actions that will preserve and improve views of important scenic resources from public places. When proposed projects may include impacts to scenic resources,these impacts are routinely identified in the associated environmental documents and mitigation measures, including increased setbacks are lower buildings heights, are required to reduce potential impacts to less than significant levels. b)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. Growth management policies, _ including Land Use Element Policy 1.0.1,state that the City should manage its growth to protect the natural environment and air quality. New development is subject to environmental and architectural review„ particularly where a sensitive or historically significant resource may be affected. These review steps help ensure that individual projects are modified through required conditions of approval or mitigation measures, as necessary,to meet General Plan policies and Community Design Guidelines that require the protection of important viewsheds. c)The General Plan contains goals and policies that address the visual character and quality of new development. Within the Community Design Guidelines, General Principle 2.1, Site Design, states that each project should be designed with careful consideration of the site character and constraints and minimise changes to natural features rather than altering a site to accommodate a stock building plan. The Architectural Review Commission uses this policy, among others, to determine if new development is acceptable as proposed or needs modification. The Community Design Guidelines include other principles that require new development to be designed in a manner that is consistent with its surrounding structures and environment. The Architectural Review Commission(ARC) and the development review process ensure, through required project modifications, conditions of approval or mitigation measures, that development plans are consistent with visual character and quality guidelines prior to project approvals. d)To minimize potential light and glare impacts,residential development projects will be required to comply with all policies governing light and glare outlined in the City's Municipal Code. In 2009, the City's night sky ordinance was adopted regulating development to prevent new sources of visual glare and light pollution. Within the Conservation and Open Space Element, Policy 9.2.3 says that outdoor lighting shall avoid operating at unnecessary locations, level and times; spillage to areas not needing or wanting illumination; glare (intense line of sight contrast); and frequencies(colors) that interfere with astronomical viewing. Conclusion: No impact. The City's adopted policies,standards and guidelines in the Community Design Guidelines and the General Plan will avoid or mitigate the potential aesthetic impacts of new residential development to less than significant levels. CITY OF SAN Luis OBtsPo S WIAL STUDY ENVIRONMENTAL CHECKUsT 2009 1 �� Attachment 1 Issues, Discussion and Supporting-Information Sources sources So=es Potennaliq Potentially Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact Issues Unless bilpact ER # 120-08 Mitigation Incorporated 2.AGRICULTURE RESOURCES. Would thegroject: Faratla ' LX ....... .......... .......t4nKT1W`Z0*..'0 pm61,2 ..............M!, ..w. ...... X X ther3lobatton or nature, aiild, S7LIR i- qxiri a)The City of San Luis Obispo is in the central portion of the County coastal agricultural region. The City is,for the most part,urbanized with only a few small farms still engaged in agricultural production. Land Use Element Policy 1.8.1 calls for the preservation of economically viable agricultural operations and Land within the Urban Reserve and City limits. The Housing Element follows the General Plan Land Use Element (LUE) in terms of where housing should be developed and promotes compact urban form to reduce urban sprawl and loss of productive agricultural lands outside the Urban Reserve. Agricultural and Conservation/Open Space designated lands allow limited residential use at very low densities of one dwelling per five or more acres,which is only suitable for rural housing. The Draft Housing Element Update will not result in the conversion of prime or unique flumland or involve other changes that would lead to conversion of farmland to Don- agricultural uses because it does not identify any new land that is subject to urbanization, rezoning from agricultural use to residential use or expansion of the City's Urban Reserve Line beyond that already anticipated in the General Plan. A residential development capacity inventory done in connection with the Housing Element Update identified approximately 146 acres of vacant or underutilized Interim Open Space within city limits, with a potential development capacity of 266 density units. This includes three properties: the 25 acre Sunset Drive-in property, and two parcels totaling about I I acres between Los Verdes Residential Condominiums and San Luis Obispo Creek(off Los Osos Valley Road)that were farmed in 2008. 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. b) The City has established an Agricultural land use designation (Ag) in its General Plan to help preserve important agricultural land. No land within the current City limits is designated Ag. The General Plan has allocated sufficient land for urban uses to achieve the City's housing goals and meet the RHNA numbers without expanding the current Urban Reserve Line into agricultural lands in the unincorporated County area. Draft Housing Element Policy 6.14 states that the City will encourage residential development focused on infill development and densification within City Limits and designated expansion areas over new annexation of residential land to maximize housing potential in the City. c)No changes to land use or zoning designations on agricultural land or prime agricultural soils are anticipated with adoption of the draft Element. Conclusion: No impact. The Draft Housing Element prioritizes infill residential development and densification within the existing City Limits.Agricultural resources will not be significantly impacted by development that is carried out in a manner consistent with the policies and programs contained in the Draft Housing Element. 3. AM QUALITY. Would the project: -7- i-7w TM-77-777-ir -7- '77-77 n'th-bute - io ate:,44y.air qua, t r c 124 , , . 1.: 5y�tihdard 0 q substantially X "T a ­6M , 0 t,i bb s ft U a l6m,p n='-6 i i 2,4 X gably plea?6U:;of k tlt -Olt Mitt X l,ti NMI till CITY OF SAN Luis Oaispo 7 INITAL STUDY ENVIRONMENTAL CHEcKusT 2009 Attachment 1 Issues, Discussion and Supporting Information Sources sources Potentiang Potentially Less That, No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant impact ER # 120-D8 Issues Unless impact Mitigation Inco mated _ �. 4).. Create 015dationable odois affecting a subsfanttal numbei of X �]'_. ReUlt_i a�tutiulatrvety considerable:nermcrease a1 any cirtetl .` 2,4 X pollutantfor vi*4 the project region snbR attainment un$eF�A'. applrcableederaEorstate ainBient air quality standard (mchrdmg_re. Mg emtssions tivbrch exceed-q�ialuatrve v T a) The Draft Housing Element Update includes policies and programs to accommodate up to 1,589 in-city dwellings during the planning period from January 2009 to July 2015. Of these,794 units will be affordable to extremely low,very low, low and moderate income households. 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 General Plan Land Use/Circulation final EIR. Based on added number of in city dwelling units and the average number of occupants per household(2.186 persons), the City can anticipate a maximum increase of 3,607 persons during this planning period. This anticipated population number within the planning period,and the rate at which it is attained,is within growth projections of the San Luis Obispo County 2001 Clean Air Plan(CAP). b) and c)The 2009 Housing Element Update will not conflict or obstruct implementation of the Clean Air Plan(CAP). The CAP calls for building compact communities to limit urban sprawl, mix complementary land uses, such as commercial services with higher density housing, increase residential and commercial densities along transit corridors, and increase pedestrian—friendly and interconnected streetscapes, helping to make alternative means of transportation more convenient The Draft Housing Element Update is consistent with this plan. Policies 9.4 through 9.9 promote sustainable development that will help reduce green house gas emissions. Housing Element policies 7.4, 7.5,and 7.7 support walkable and bilceable neighborhoods,connected to shopping,schools and other neighborhoods. Community Design Standards and Noise Element Policies require setback buffers and HVAC systems for residences located along high traffic corridors. These mitigations also serve to separate residences from potential exposure to vehicle-related pollutants. d)New development within mixed-use projects are subject to impacts from odors generated by restaurants and other business activities. The City of San Luis Obispo routinely confers with the local Air Pollution Control District regarding the acceptability of adjacent land uses and routinely prohibits certain odor-producing uses from mixed-use developments, including coffee roasters and nail salons. Limits on hours of operation also reduce conflicts between residents and customers in mixed-use developments. The City's use permit requirement and performance standards for mixed-use development enable the City to establish conditions of approval to reduce potential impacts to less than significant levels. e) The proposed project will not result in a significant impact to air quality. The Housing Element Update anticipates less population and housing growth than allowed under the General Plan Land Use Element, and as evaluated earlier based on household size and maximum dwelling unit potential for this planning period. This is because average household size has been treading downward in the City, and because housing production has been significantly lower than anticipated Residential growth will add to locall and commuting automobile trips,a primary factor affecting air quality,but in lower levels than previously attributed to new housing development As a "job rich" community, a key component of vehicle trips is employees commuting into San Luis Obispo for jobs. The City's trip reduction plan has increased efforts to include incentives for employees and businesses which utilize and promote rideshare,alternative transportation options and subsidies for students who use public transportation. Lower vehicle trip rates will cut the amount of auto emissions. The CAP based its air quality assumptions in part,on an estimated San Luis Obispo population of 48,499 by 2015,a 22%growth increase since 1995. However,current population projections account for an annual growth rate of.49%a significantly lower percentage. Specific control measures to reduce transportation-related emissions that affect air quality were also identified. The Draft Housing Element Update incorporates several of these measures as part of its overall "smart growth" strategy, including: Policies 4.1—4.4 as well as 5.3 and 5.4 that promote planning compact communities and mixed use development The Draft has numerous policies or programs designed to promote compact urban growth,encourage mixed use,promote housing within walking or biking distance of employment,and encourage downtown housing close to jobs,services,government,recreational and cultural opportunities. i 9 CITY OF SAN Luis OBISPO $ INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 j pl* J Attachment 1 Issues, Discussion and Supporting Information Sources sources Potentiaay Potentially Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Sign ues significant significant to pact I ssues Unless Impact ER # 120-08_ Mitigation turn orated Conclusion: No impact. The Draft Housing Element Update is consistent with General Plan growth policies and with prevailing countywide assumptions regarding air quality, including APCD's Clean Air Plan. To the extent the updated Housing Element helps produce more housing that is affordable to extremely-low, very-low, low and moderate income working people, many of whom now commute into the City, it may help provide additional density to support alternative transportation,and help reduce traffic congestion. 4. BIOLOGICAL RESOURCES. Would the ro'ect: a} ave a su¢"stga�. vers�eecf ertbgpci�rect�y br mdtreatLy bF 1,2,7 X tluoda ut4Saany s pe9A .j gafified anti a candr�afe,sens>t;te,or special staprs s�ecteocal orreWgronal plans,policies,ar eegnlanonspr by the Caltfomsp pep— r-�rtrue�K . o£Fish and Game or�7 S F h snit Wii3hfe Sere c b fat e a snb5�ltaTt�vsg ef)ec�bnpy hanatt flabrtat of` 9 X �-�othg>`senstitve fial�at-cgmzovlrtty tdentilied m.localorregional' -�'_�la�,p'olict�tfr r�egnlattons�or#�y the Caltfo�D'e_'pmrtmeai �' _ of Frsh:aitd�e or U S Fts�t,ani}�dhfo,,�ervsce? c}'Conflrctwnth any 1pcalpghc>es or grdvnaucespxotectm1 X biglogica�resrnue zs,sucl�as a tree gre$exvaugD poltcy kt ordmanee(e gerrtage3rees)r d) fnterferesubstanhailywrththemovernenfofangnatrveresr�e 3,7 X • or uugratoryfisiror�vtldh�cs�secies`orwdh establtshed native zestdent;or mrgratory wtldh Lc comdors,orunpede the use 9MMM, of _ wrldbfi nursir�ysites'� X� � e)'_ConflrcyYtth Elie pTov3stops 4£anadoptedliabttat.Consetvauon 18 X Plan,37atural Cptttpttptty Ccusezv�ttoA Flan,or other�proued Iotlal regwnai,6f statc habitat cbnser aIIon plant substanusl adverse effect on Fed`erallgprotectedM X t yvetlands;asdefiaedm Section 04 o thiF ean.-aferAct ' (mclndm butbtlmntedto,marshes tenial pools,etc). thmYtgh tizcmaval�fil)mg,hydmlogtcal mtemtnt,-h of ;,otliermeans� a) The General Plan Land Use and Conservation and Open Spare Elements guide the preservation of biological resources. Resources 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. General Plan Conservation and Open Space Element Policy 7.3.3 says that wildlife habitat and corridors that provide continuous wildlife habitat shall be preserved, 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 the presence of open space resources, or natural or manmade hazards. b), and f)Individual development projects will be subject to development review by staff and City advisory bodies to ensure compliance with pertinent creek and wetland policies. Zoning Regulation 17.16.025 Creek Setbacks requires projects to be consistent with the General Plan and requires the protection of scenic resources, water quality and natural creekside habitat including opportunities for wildlife habitation, rest and movement; therefore, all new residential development must comply with the Creek Setback Ordinance and must avoid sensitive site resources. New projects are routinely evaluated for compliance with the City's Creek Setback Ordinance and modifications are required through the development review process, conditions of approval or mitigation measures,as appropriate to insure that any potential impacts are less than significant. c) Conservation and Open Space Element Policy 7.5.1 states that significant trees making substantial contributions to natural habitat or to the urban landscape due to their species, size or rarity shall be protected and their removal will be subject to specific criteria and mitigation requirements. Any housing projects proposed on sites with significant trees will be subject to this policy and mitigation. '• � CIT/of SAN LUIS Oeispo 9 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 l � '0 -� Attachment 1 Issues, Discussion and Supporting Information Sources Sources Potentuny Potentially Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant impact ER # 130 08 Issues Unless Impact Mitigation Incorporated d)Development is subject to applicable City standards and guidelines,the State and Federal Endangered Species Act(ESA), the Clean Water Act (CWA) and other local, state and federal regulatory programs to ensure significant impacts have mandated mitigation measures. Conservation and Open Space Element Policy 7.7.8 of the General Plan ensures the protection of wildlife corridors. The City shall condition development permits in accordance with applicable mitigation measures to ensure that important corridors for wildlife movement and dispersal are protected. Important featured corridors include riparian corridors,wetlands,lake shorelines,and protected natural areas with cover and water. e) The Draft.Housing Element does not conflict with any existing Habitat Conservation Plans, as determined by the City's Natural Resources Manager. Conclusion: No Impact Residential development anticipated in the Draft Housing Element Update is consistent with the General Plan Land Use Element and Conservation/Open Space Element Proposed development projects will be evaluated for their potential to impact biological resources and modified,if necessary,to avoid significant impacts in accordance with local,State and Federal law and Conservation and Open Space Element policies. 5.CULTURAL RESOURCES. Would thero'ect- subsiatitial14-yMech.... to tTiq.,i tt$_atice oda 1,2,16 X `histone resourpe7(See CY( AGmdeltne$15pC+ �b) :Causes nbstaniral wa,0a- clthng8 m the srgnifieanca ofan 2,7,]5 X arcbaeoftcFescttttCe b( eeE( A es,lOG4 5) Directly ar andirecfiX d M _au15 X oFsrte ar umquregeolagtc --------- is istttr aay reariams;melt;drag tliosamterreti autstde of. 3{ __;`formalcertietexies?:W a) Preservation of cultural resources is a key General Plan goal. Land Use Element Policy 6.6 says 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. Draft Housing Element Policy 3.1 encourages the rehabilitation,remodeling or relocation of housing rather than demolition. Changes to historic buildings and development in historic districts should reflect the design and materials of the original building and contribute to a neighborhood's historic pattern of development and architectural character. b) The City has established criteria to identify significant archeological resources and encourage the preservation of these archaeological resources and sites. The City's Archaeological Resource Preservation Guidelines will be the driving force in determining significant resources. These guidelines implement General Plan Conservation and Open Space Element Policy 3.5.1, which requires the City to protect known and potential archaeological resources. 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,and ensure that new residential development is compatible with designated historic resources,promotes seismic safety upgrades,and the use of State or Federal ftmds to protect and improve existing neighborhoods. According to the Guidelines, 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, project modifications to avoid resources or other appropriate mitigation measures will be included to protect Archeological resources. c) and d) The City's Archeological Resource Preservation Guidelines include specific criteria that address the discovery of unique resources or human remains during construction excavation. Development that is proposed on sensitive sites,which are mapped,requires a Phase 1 study to determine the likelihood of discovering resources during construction. These existing measures,which are in place for development city-wide,are sufficient to prevent impacts to archeological or paleontological resources,or any discovered human remains. Conclusion: No impact The Historic Preservation Program Guidelines and the Archeological Resource Preservation CRY OF SAN LUIS OsisPO 10 :INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 Attachment I Issues, Discussion and Supporting'lnforrnation Sources Sources Potentij4 Potentially Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant impact ER # 120-08 Issues Unless impact Mitigation Incorporated Guidelines include specific criteria and steps that must be taken to protect and preserve cultural resources, including archeological or paleontological resources,or human remains discovered during construction. 6. ENERGY AND MINERAL RESOURCES. Would the proiect: Cogthct jE j -trio 1,2 X plans?'s?' b) Use ngn bi a:w'a-s an.me aAeAV 2 X ---------- ava Aility.ol'alciiovvn.,mi,ndrw"r"esourc�d:, 7 X Named the:Ypg,ton and the resideiifs.:p..rheq. a) In compliance with Title 24 of the California Code of Regulations, the use of energy efficient appliances and insulation reduces energy consumption associated with new residential development projects. The Land Use and Conservation/Open Space 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 conserves energy, water and materials wisely, and encourages higher density,infill housing that uses land more efficiently than conventional,detached,single-family housing. Through development incentives,selected land use changes(i.e.rezoning),and flexible development and architectural review standards,multi-family housing will be encouraged to help meet affordable housing needs,to 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 projects would,under the Draft Element's programs,encourage housing design that conserves energy and resources. b) Draft Housing Element Policy 9.1 states that residential developments should promote sustainability in their design, placement and use. This can be achieved by incorporating renewable energy features into new homes,including passive solar design,solar hot water,solar power,and natural ventilation and cooling.Policy 9.1 will promote efficient design practices.by encouraging the use of construction materials and methods that maximize the recyclability of building elements. c)Conservation and Open Space Element Policy 4.2,Sustainable Energy Use,and Policy 4.3.1 both promote the use of best available practices in energy conservation,procurement and use and production. With policies to guide new developments the City can ensure the protection of non renewable resources by conditioning a project to eliminate potential environmental effects. Conclusion: No impact. 7. GEOLOGY AND SOILS. Would the project: a) _:Expose people � .. -4 . --- - -1 1..''...1.- I q4��o,pqtehtial substantial adviiii 1,2 X effects,uiel{ g ri,`sk of 9ssilpiury,or,death involving Rupture of a known earthquake fadltw elaatie 11h,the X mtsfr .......... Ah -Z hiiike,fault T a -A I .— - ;--, '.z. b the•S b` -V.wg y .". I. JAfor fie -or.. oii:6 nce X Lg gismtc reUted ground Failutm7"ific g i' g' ili"q-ue&a qqoh?4 , X 64 IVB Landslides X or.iiNdAdivs'? X $ian or fhu loss of topsoils e, .cri ,.that X instable,aisa-result'6fthepIpje t;an ntia Y, ......t..M. m...oro.. prea pg subsidence' hquefactrgn,-or collapse " 0f&, a 16 184:�B` - APOO 0a CITY OF SAN Luis Osispo INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 Attachment 1 Issues, Discussion and Supporting Information Sources sources Potet lam' Potentially IxssThan No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant significant SigncImpact ER # 120-08 Issues unless Impactt Mitigation Incorporated a),b),c)and d)The Draft Housing Element Update includes policies to prevent establishing new housing on sites with natural hazards,such as geological or seismic risks,including soil erosion,landslides,or liquefaction. Draft Housing Element Policy 3.3 encourages seismic upgrades of older dwellings to reduce the risk of bodily harm and the loss of housing in an earthquake. Policy 11.2 states that the City will prevent new housing development on sites subject to natural hazards such as unmitigable geological or flood risks, or wild fire dangers. 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 Building and Safety Division has designated a Seismic Coordinator to assist in the implementation of mitigation programs to prevent unreinforced masonry hazards. The City's Construction Regulations regarding grading and drainage include specific erosion control measures to ensure the safety of all residents. Building Permit issuance and development review of projects will ensure projects are developed in a manner that is safe and consistent with City standards,guidelines and policies. Conclusion: No impact The Draft is consistent with these policies and standards. 8. HAZARDS AND HAZARDOUS MATERIALS. Would the Pro'ect: a Creafaa'st` cant hazard fd"311e ublicorthe eavuonment`- X throngEtpesot .use;traasportorchposaloFhazardolts 12,5 r -_'�tatet7al3� - 512.Create a sigmfisanf�iazard xo tfle Qufihpof the erlvugnment 5 X ' �thron -rea�'onah7}foreseeable upset and accideklt.Fondt3tons . �mvolZitig'th��"release oFhazacdous ulater�c1ls�nt9 the -� m envrronmrnt� e ,Fmtthazardtyus emtss>ons orhandleliazardous or acutely 1 X zhazaidays zaatt tials>substances,or waste within nae quattes _mileo'�an or�roposedschool2 ,,� s : ;i �d Erose eople.Or SAmGtpres tq eacastm s9ucceg 1)f li zaY�lOUS 2 X emtssroas gr"ha�azi',1ous or aatttely�tazardaLia zltatq�a�s, F +e ,sBubsren�es,or waste?- , , ] e lova#ed�n a stte wlnc vs iuclnded oil a)tst of Hazardqus 2 X matenalssttes compiled pursdantto Governmenf.Code Seciton -639���anki,as a'zesult,tt uvuld crew#e astgntficant'hazard"to ` tie pu8li On&eiivtrgtuneiit7 -.:. f}' Fgra project located vittthm an atruport lana useplan�qr aptthm, 1,10 X twovtiles ol'apubLaauport,,woi9ii the pro ect:result m a:safety haz§r$iQ ttl Pegple restdtng orworkmg mthe.;pjpRt areae 47 Imlatr Impleme>xtauoA of,or phyStcall}*mterfer et yi ttfi,the X ado�ttedem�rgeacyresponScplanoremergency.evaauanon- ' h) -Expose people orstftictt3re�fo a stgri>6cartt risk of}ase,mltuy, 5 X or,deathz}nvolVmg:vnld{lapid 6tesy sgclu�tng whez,C wllfiIanGis ora': a jaeea tosurbazuaed areas or w�e�e residep s ire mtptm>ated ` : a)The General Plan Land Use and Safety Elements are the primary local policy documents addressing hazards and hazardous materials. Within the Safety Element, Policy 5.2 states that new residential projects should minim ze people's exposure to hazardous materials and substances. 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 manmade hazards. Policy 11.4 states that the City will implement a construction and demolition debris recycling program(as described in Chapter 8.05 of the San Luis Obispo Municipal Code)to ensure disposal of hazardous materials are displaced properly. b)Safety Element Policy 5.3 says the City should avoid using hazardous materials in its own operations to the greatest extent practical and will follow all established health and safety practices when they are used. The protection and safety of MCITY OF SAN Luis Owspo 12 INITIAL STUDY ENVIRONMENTAL CHECKLtsT 2009 - pf�-a�' Attachment 1 Issues, Discussion and Supporting Information Sources Sources PotcnL4 Potentially Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Signi scant Significant Significant Impact ER # 120 OS Issues Unless impact Mitigation incorporated community members is also evaluated in development applications and plans by the Building and Safety Division. Construction codes ensure hazards are taken into consideration and mitigated accordingly. c) Schools within the City are safely located within residential developments,close to parks and transit stops. Any proposed development that may result in upset or accident conditions near schools is routed to San Luis Coastal School District for comments. The City's Fire Marshall has the authority to require changes to proposed projects or existing uses where hazardous materials usage is proposed or ongoing. d) Draft Housing Element Policy 9.1 states that residential developments should promote sustainability in their design, placement and use by avoiding the use of building materials that may contribute to health problems through the release of gasses or fibers into indoor air. New development projects are reviewed for consistency with this policy and changes to proposed projects are required through conditions of approval or mitigation measures where potential impacts may occur. e) Draft Housing Element Policy 11.2 states that the City will prevent housing development on sites subject to unacceptable levels of man-made hazards or nuisances, including severe soil contamination,odors or incompatible neighboring uses. New development projects are reviewed for consistency with this policy and changes to proposed projects are required through conditions of approval or mitigation measures where potential impacts may occur. 1) Airport compatibility issues are of special concern because much of the City's vacant residential land is located in the southern part of the City,near the San Luis Obispo County Airport. The Airport Land Use Commission adopted the San Luis Obispo County Airport 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 housing and airport activities. City Land Use policies are 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. For instance, the Margarita Area and Orcutt Area Specific Plans both include chapters that deal specifically with airport compatibility and ensure that future development is consistent with the Airport Land Use Plan. g) Fire Code compliance is checked with all new residential development to ensure the safety of the community by the Fire Marshall and the Building and Safety Division. h) Safety Element Policy 3.0 requires adequate fire services and Policy 3.1 requires housing in interface areas to address wildland fire safety. It is the City's policy to only approve development when adequate fire suppression services and facilities are available. Maintaining consistency with Fire Department standards will ensure the safety and well being of community members and prevent development from occurring in areas of high or extreme wildland fire hazards. Conclusion: No impact. Existing City standards and General Plan Policies from the Safety Element and Housing Element ensure that potential impacts from hazards and hazardous materials are entirely avoided, or mitigated to less than significant levels,before new development is permitted. 9. HYDROLOGY AND WATER QUALITY. Would the ro'ect: a) Violate any water quahty standards or waste drSchaPge X [edutremetuts '` ;, , 11,13 b)'-Substantially cleple {grousYdwater supplies bt tntttirfre ' X substantially>nnth gmundwatef recharge such that.ihere would be4 a netldelictt m aquifer voLixne ora lowering oVocal' groundwafer fade levet(e g The prodiicuon rate,of pre-exfstmg- ueaFby wells}voulrQp to a,Igvelw)uch ygouldnofi support i. y,e=pft anduses for which ernatts have beenYgranted�? a rrreateorcgntt�ibpfQrtutofivalerwhtchv�onl�le�teeedthe 3,9,10 X acty of exustvnorlawied st�tnwaterdramage;sste�s br i,; ' Crry of SCAN Luis OsisPo 13 INITIAL STUDY ENYatoNMENTAL CHEmisT 2009 Attachment 1 Issues, Discussion and Supporting'Information Sources Sources PotentiauyFInc Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE SignificanSignificant Impact ER # 120-08 issues Impact Provzdcaddihonalsources9fhmtifffii utrfaceiwaters 4- -(ci; d(ob:mntlands;:rzpa.. 8reas,ponds, sr{ngszeks,Streams,nuers,lakes,:estuanes,tidal areas;hays o4ean,gCc}? ' d)y"SdbstatttaHy;iter the e7nstutg ndramas pattemnf tha site ai X 91 area id iaanarti&—h , woulds esult rn substantial efoston or stlt8uononstte.ax<affs><te��,; � e) Slstantiailp alrktfi4ttit �1 g8p.............. ttern bf the Site bt X afea xn milntleF gur woufd ult to subsfanttal ffondm :.: onsite o4itsrte - f} Place 8oi5sra-g"'51thin a 104 Y r#lbod ls`azar ares laS tnailR10 oxo X aFederal Elpo3Ha?ard Bortudaty of-FT oodJ3�su�pce FaT Mug Il 62 {ielrueli o mdp? g):'�7>lcewztlna a 1QEYyea Y1oahaz`aid area stt�i{es would X .1m�ede.ar redo ecYt7ood flows?^y r Y Al the project urtrodace typical storm wader pollutants mto 13 X gronitd o;smfaeewate�ta? 3 t) ':V�ill The:proleet alter�_qund mater orsurfaes water quality,._ tune.dissblued.ax' ea.onturli`dr a) and b) The General Plan Water and Wastewater Element states that the City will 'maximize the yield and long-term reliability of all water resources, and will minimize overall costs for meeting urban water demand, (Water and Wastewater Element Policy 1.0.3). To ensure there is not a water deficit,the City abides by a safe annual yield amount,per Policy 1.0.2. The adopted safe annual yield from Salinas and Whale Rock Reservoirs,and groundwater resources for 2008, is 7,460 acre- fee per year(AFY). Water allocated from the Nacimiento pipeline will provide an additional 3,380 AFY by 2010 for new developments,increasing the safe annual yield amount to 11,090,which is above the projected demand of 9,290 acre feet at General Plan build-out In major expansion areas, where large residential subdivisions will occur (Margarita and Orcutt expansion areas), specific project-related effects on runoff siltation, flooding, and water quality are addressed in required specific plans and environmental review documents. Housing development must comply with City, regional and State standards for the protection of surface water and ground water quality.Compliance with these regulations is mandated by the City's Storrawater Management Plan permit under the RWQCB program,and ensures that significant impacts will not occur with new development anticipated by the Housing Element. c),d),e),f),h)and i)Newly proposed developments shall be in accordance with City, State,and Federal standards relating to development within flood zones. The City's established environmental review process will help to ensure future residential developments will be evaluated on an individual basis for potential violation of water quality standards. For example, the Prefiuno Creek Commons EIR and Orcutt Area Specific Plan EIR have substantial guidance and mitigation required to comply with RWQCB standards and address impacts to drainage,flooding and erosion. Conclusion: Less than significant impact. Hydrology and water quality impacts are avoided in new construction,including the new housing anticipated by the Draft Housing Element Update,through compliance with existing City,State and Federal water qualify guidelines implement by the RWQCB. 10. LAND USE AND PLANNING. Would theproject: a) Conflict with app'RON Ittdd*-P an _ollcy, or regulation of; X an agency with jwTs3tctton over the pro)ect adoote� for the 1,2 �'PA9ge if avox�itmg ur tnthgatt»g an elvtrctt ental #b) ?Physically divide an established commiinrt}I? X e) :'Cbttflrct tvtth any applicable tiabttaVeorlsen+apon plan or it8;tural X r;ciinimuiu . conserxatKot%? lans7 '.„.: ',. a), b), and c)The Draft Housing Element Update includes numerous programs, or implementation"tools", to implement its goals and policies. For example,policies m the Draft encouraging higher density,infill housing close to jobs and employment centers are consistent with existing policies in the Land Use Element that encourage compact urban form. A few programs am CITY OF SAN LUIS OSISro 14 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 PH a Attachment 1 Issues, Discussion and Supporting information Sources Sources Potentia,ry Potent ally Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant SigaiSnnt bmpact ER # 120-08issues MitiUnlessgaItion bmpact I Incorporated that identify non-residential sites as potential areas to consider residential zoning would be implemented, in part, through changes to the General Plan Land Use Map and Zoning map but do not involve activities that would conflict with a regulation adopted for the purpose of avoiding an environmental effect. 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, however, no circumstance can be envisaged where an encouraged project would physically divide an established community. No Habitat Conservation Plans are in effect on any of the sites identified in the Housing Element as suitable for residential development Conclusion: No impact. The Draft Housing Element does not conflict with any plan,policy or regulation adopted for the purpose of avoiding an environmental effect, will not divide an established community and does not conflict with any applicable habitat conservation plan. If during the implementation of any Housing Element policy or program,such an impact is found to have a potential effect,then appropriate mitigation would be adopted prior to permit issuance to insure compliance with existing City policies and State environmental thresholds. 11.NOISE. Would the project result in: S:Ios>ire 0fl�e`ople to or geneYaYton off`tmaeceptatila'itoise = 2,6 X �eve1�as defpaesl by the sap; ails Olns�raGeAe �1"31 1 "1-1 - emen,or gcnera]no leYel§mexecs§of§tagdards° y �: estab�,iSh�m`-the;LYougtk�tr}aacc7 , ;. b) = A stihstanttal temporaryrpenodtc or permanent uicrease to X amEtt nors�3eu lsurheP%lecf tabovelevergx1so>7g cgtthl3t�tt the p%feet? b c) ExEosure ofpersons to os-pederarion,of a cessbve grouDd�iome X vtbra?ton-or�rotindlrotnenoiseievels� d) _For a pm�ect Iocatpd within amairport land uselrfan;qr wttb, 10 X t vomtlesrofa bI., anporl or ptYbliruse'au�oi wquld t(ib ;; Proleclt,exposepeople zestdtngttr worktngm tlieproieciitiea to - excessive acise�levels� - a..; ,:. a), b),and c) The General Plan Noise Element establishes standards and procedures for protecting noise-sensitive uses from stationary and mobile noise sources. Noise attenuation measures identified in the General Plan include land use limitations, separation between land uses (ie. 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 City Noise Ordinance standards. Noise Element Policy 1.1 says that the City will work to minimize noise exposure based on the established numerical noise standards, or thresholds, contained in the document. 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"Iive-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. The City of San Luis Obispo routinely evaluates proposed development projects to ensure compliance with applicable Noise Element policies and Noise Ordinance Standards. The City also publishes a Noise Guidebook, which includes prescriptive compliance techniques where noise attenuation through building design is determined to be necessary. d) The City's General Plan and Zoning ordinance are consistent with the standards contained in the SLO County Regional Airport land Use Plan. The Airport Land Use Plan includes standards to insure that uses proximate to the airport are developed in a manner that is safe and compatible with aircraft operations. Noise levels are one of the key considerations in the Airport Land Use Plan, and all development within the Plan area must be developed in a manner that eliminates noise exposure in excess of the standards,including through the imposition of noise attenuation measures where necessary. Conclusion: No impact. The City's Noise Element, Noise Ordinance, Noise Guidebook and the Airport Land Use Plan include existing standards,policies and procedures to ensure that new development does not expose people to excessive noise levels. 42. POPULATION AND HOUSING. Would the p,ro'ect: a ' IntTuee sub"stanhal o ulaugn gam:tth-jn are.. etter;.. "ec X i CITY of SAN Luis OstsPo $ INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 i Att"uhnnent 1 Issues, Discussion and Supportirig lnformation Sources Sources Potentia„y Potentiany Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant Impact ER # 130 08 issues Unless Impact Mitigation Inc raterL example by-_proposing 90 1,2,12 Igdirzctly (for:exampter^ilsiough=eicteatston of loads or othee: infrastructurerl �)`'Displasg substant►21 numbers o extsnng y�toti stng or people: 3 X #e ess}taang the: ronsrucuon ,af 'rtplace�ent housing; e ...- ..:', lSew er a) General Plan policies seek to achieve a sustainable level of growth through the City's planned build-out of 24,300 dwellings and 57,200 persons,anticipated to occur by 2022. Land Use Element Policy 1.10.2 says the City's housing supply should grow no faster than one percent per year, averaged over a 36-month period.This will assure population growth does not exceed the City's ability to assimilate new residents and ensure municipal services are available for new and existing residents. Affordable housing is excluded from the City's one percent growth limit, which is established by General Plan Land Use Element Policy 1.11.2 and the Residential Growth Management Regulations(SLOMC 17.88). As required by State law,the Draft Housing Element Update includes Quantified Objectives showing the number of units the City expects to accommodate in each income group during the planning period from January 1,2007 to December 31,2014. Under the Draft Update,the City would expect to accommodate up to 1,589 new,in-ity dwellings. Of the total,58%,or 922, units will be affordable to extremely low, very low, low and moderate income households. The remaining units can be constructed within the allowed average residential growth rate of one percent per year and will be credited towards meeting the City's Regional Housing Need Allocation of 1,589 added units by 2014. 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 1,589 dwellings as shown in table 1. 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. The City's proposed Quantified Objectives are shown in Table 1, below. Table 1 Regional Housing Need Allocation,January 2007-December 2014 City of San Luis Obispo s�r � r m euro eu nb� c” 1L`2 s 'X 1 an R.. �Sq� ^ ^¢' Y " o- 2�� g�73e gF oda �t c IL q +.5 r ^�°, r.3.a..3�lr"rn r. ate. Very Low 366 366 Low 254 254 Moderate 302 302 Above Moderate 668 668 TOTAL 1589 1589 Sources City of San Luis Obispo,Community Development Department b) San Luis Obispo has evaluated its ability to accommodate the RHNA number of 1,589 dwellings by December 2014 and determined it has sufficient zoned land and infrastructure to accommodate its assigned regional housing need allocation. There is sufficient land and water supplies for residential development to accommodate the RHNA number within the planning period. New State housing laws have placed greater responsibility on local government to address housing needs even in the face of reduced financial resources. The updated Housing Element includes new information, policies and programs to address these legal requirements. Such proposed statewide and regional changes include the approval of SB 2, SB 575,AB 2348 and AB 1866. Conclusion: No 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. Population and ., CITY OF SAN Luis 081spo 16 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 -P -a� Attachment I Issues, Discussion and Supporting Information Sources Sources Potentia,ry Porentauy LessTtum No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Sign f ant Significant Lnpact ER # 124-08 Issues Unless impact Mitigation Inco orated Housing growth anticipated in the General Plan were evaluated in the 1994 General Plan Land Use/Circulation Elements Final EIR,and the growth anticipated in the Draft Housing Element is consistent with growth levels evaluated in the FEIR. 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: aj 1 ire�irtectron� = 5 X b� =Eoitce pzotechon?; X SCho977 r 2 X a}_: Parks2 17 X e)_ Roads aad other transportatton mfratluGture? 2 X Othetr bad f totes ..- 2 X a) and b) Safety Element Policy 3.0 states that adequate facilities and services shall be in place before new development is approved. Section 9.3 of the Safety Element includes specific response performance standards. For fire protection, the standard is a response-time objective of four minutes. The Police Department has set a 30-pereent available-time objective for patrol response. When new development is proposed,the location and size of the development is considered to determine if they will impact the adopted response performance standards. In addition, the ability of each Department to meet these standards city-wide is monitored and evaluated on an annual basis as part of the General PIan Annual Report and the City's budgeting documents. When resource deficiencies are identified, the City Council routinely allocates funding for new personnel or facilities to insure compliance. c) The Draft Housing Element update estimates that one, or possibly two, additional school sites will be needed to serve planned residential growth in the southern part of the City. The Orcutt Area Specific Plan includes one potential elementary school site. Development projects will be required to pay construction permit school fees to offset costs of developing new schools. d.)The Parks and Recreation Element of the General Plan requires new development to allocate 10 acres of developed park land for every 1000 residents to ensure that sufficient parkland is developed along with new residential development. e)Draft Housing Element policies encourage connectivity between residential developments. Policy 7.5 discourages walled- off residential developments because physical separation prevents the formation of safe, walkable and enjoyable neighborhoods, and reduces convenient access to transit routes. Draft Housing Element Policy 7.4 says that residential developments should be an integral part of an existing neighborhood with pedestrian and bicycle linkages that provide direct, convenient and safe access to adjacent neighborhoods and commercial areas. As new development is proposed, projects are evaluated to ensure consistency with these policies. f) Draft Housing Element Update policies and programs call for the City to solicit new funding sources to assist in the development of affordable housing.The City of San Luis Obispo has an Affordable Housing Fund that can be used to offset costs and provide new infrastructure and services to new affordable housing developments. This and other funding sources will be needed to meet the Quantified Objectives. City Utilities,parking facilities,recreation facilities and programs,and to a limited degree,public schools,are funded by service users and new development. City fees on new development, including water, wastewater, traffic,park, and affordable housing fees,and school fees are collected at the time of construction permit issuance to offset the costs bome by the City to meet the service needs of new development Conclusion: Less than significant impact. Residential development will increase demands for public services, however, as provided in State law and local ordinances, new developments are required to fund a proportional share of the cost of additional public service or facility needs. 14.RECREATION. Would theproject: CrrT OF SAN Luis Oaispo 17 INmAL STUDY ENVIRONMENTAL CHECKLIST 2009 ! Attachment 1 Issues, Discussion and Supporting Information Sources Sources Potentlnay Potentially t.ess'Man No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Significant impact Eft # 120-08 Issues Unless impact Mitigation Inco orated a) ncrsase;ihettseofmilttngerghborhaodnrregtonalpaz]csor 17 X 4tberrecreatt§-0-d facilrttes such that substantut)physrca� detenoratmn of the ficthtp�vould occtu orbe aCcetrated� lid Include r leafional litcrlrhes vrrequtrelh�cons W(h%4'of 2 X e ansron f tronal.faerhtaes ivhtc�t mlghhave ar>adyersa,: � 1c..;effecCAa the enviioamEnL?, : j ' a)The General Plan Parks and Recreation Element Policy 3.13.1 of the General Plan says the City shall develop and maintain a park system at a rate of 10 acres of parkland per 1,000 residents. The City monitors the adequacy of its recreational facilities and evaluates each major new residential development to determine if additional service capacity is needed. Specifically, all new residential expansion areas are required to develop neighborhood parks at the rate of 5 acres per 1,000 residents. Additional parkland is acquired and developed by the City as fees become available through the City's parkland in- lieu fee program to insure compliance with City policies regarding the total amount of parkland that should be maintained New development is responsible for providing funding or facilities in proportion to the need generated by the development project. This will help to ensure sufficient open space and recreational areas are allocated for the community. Generally,new subdivisions with 50 units or more are required to dedicate the required parkland,however, smaller subdivisions may pay a fee in lieu of dedicating land for parks. b) Housing development,including recreational facilities required as a condition of that development,will be allowed only in areas'suitable for such development. Moreover,the Draft Housing Element Policy 11.2 states that the City will prevent new housing development on sites that should be preserved as dedicated open space or parks. Conclusion: Less than significant impact. Implementation of existing City policies and programs ensures that there will be adequate developed parkland available to serve new City residents. 15. TRANSPORTATIONfrRAFFIC. Would the project. au , . X fhseetastmgffi4. tern?ro ¢ n b�a Excetidr`eithas v)dtvrduailY qK i ma*&iviq ;a leve�af servree - 14 X standaYd hs)teN y fire couuty'congestion management ` agency for desrgnaYed krsads and hrgways i) upstfinhaliy---:a-e-hazards due to:destgn.features(eyg sharp X cttryesordangerousmiersec7 prancdintikfii des�e g. .farm egtnpment)? ` , � , a) �tesulJf in inadequate emergency access2 5 X e} ResulYm id wtquatepa h` g CagaX f) Conflte[wrth adopted polrcres supgo;ticig altetnattve 14 X .i.transgvrtauon(e g:bus.tymou%bwy le nc�ks)? g) _C4 4 i tl eyw,tth San Luis Obispo County'-A'i'r-por t LsndA 10,14 X Use Pl ti reg on'g m rsd6stamtal safety risks from h zards,7tAise�. ,or chorine in atr:tic atteins� a) Circulation Element Policy 16.1.4 states that the City will evaluate potential transportation impacts created by new development projects; development proposals to the City will include displays of the proposal's interfaces with nearby neighborhoods,and indicate expected significant qualitative transportation effects on the entire community. Traffic load and circulation impacts must be mitigated prior to development plan approvals. This information is routinely used by decision makers and planners to ensure that appropriate mitigation measures,including required off-site improvements,are established as part of any approved residential development project. b) Circulation Element Policy 8.0.1 says that the City will manage the use of arterial streets and regional routes/highways to accommodate increases in traffic levels limited to and permitted by the City's adopted growth management plan so levels of traffic congestion do not exceed the peak hour level of service standards. To maintain levels of service,traffic management plans will be established,alternative forms of transportation will be established and minor changes within existing roadways will be made to improve pedestrian and bicycling safety while improving traffic flow. CITY OF SAN Luis Oatsvo $ INmAL STUDY ENv1RommENTAL CHECKusT 2009 Attachment 1 Issues, Discussion and Supporting Information Sources Sources Poteniiaay :PotentiaUy Less Than No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant ant Significant Impact ER # 120.08 6sues s Impact ioaated c) The City routinely evaluates proposed development projects to insure that hazards due to design features are reduced or eliminated The proposed Housing Element update will not change the City's process for evaluating new development projects to ensure that vehicle circulation is accomplished without creating design hazards or conflicts with incompatible uses. d) Emergency access to new development will be taken into consideration during early phases of the development review process. Safety Element Policies 9.20 through 9.23 list the precautionary measures the City will take when evaluating a development plan. The City conducts safety inspections for fire safety,including enforcement of fire lanes,for multi-family residential developments. e) Circulation Element Policy 13.0.1 encourages people working in the commercial core to use alternative forms of transportation to get to and from work Workers who do drive individual vehicles should use parking structures or common facilities rather than curb parking,which generally should be reserved for short-term parking. f) Using alternative means of transportation is a key way to minimize congestion, and reduce health and environmental impacts. The General Plan discusses transportation with goals that are supported by specific policies to encourage alternative modes of travel throughout the City. Community Trip Reduction Policy 2.0.1, supports county wide and community programs geared to substantially reduce the number of vehicle trips and parking demand. Through this and many other transportation-related policies, transportation impacts due to level of service, road damage and traffic capacity can be successfully mitigated. g) The General Plan is consistent with the San Luis Obispo County Regional Airport Land Use Plan and the Draft Housing Element will be reviewed by the Airport Land Use Commission as a mandatory referral. The draft Housing Element cannot be adopted unless the Airport Land Use Commission determines that it is consistent with the Airport Land Use Plan. Conclusion: No impact Existing policies and procedures ensure that new development is evaluated during the development review process so that any potential circulation impacts are mitigated as part of the development project. The proposed Draft Housing Element is consistent with the City's Circulation Element and the FEIR for the Circulation Element and does not propose substantially new housing development increment that was not previously anticipated. Overall,total housing in the City remains below the projections made in the Final EIR for the Land Use and Circulation Elements. 16.UTILITIES AND SERVICE SYSTEMS. Would theproject: E:teed_,9tew#tectreatmeutrequrementsof'theappTtca6le 2 X :,13egronal Water�aZm���troYBoaLi� N t3)' Requrre orresttlt inita eonstrucuotcor,exparisroix of nevy water X .. r treatment waste water tieatrnent,yvaPei.quralily conlrol;pr storm''' dxauaage£acrtitues'the coristiactrorz o£whuacouxd du>$e srgm$cant, envuonmentai effects? Have sufficte wafer sngglies available to serve the pro3ecf 13 X from existtng entitlements and resources or are new and expanded waterreSotuces needed d):"Resultiira determinahon bythe wastewater treatmerrtprovrder X whmch selves on may s"'. the project .adeguate { _? capa9M_, 5.efve`the project's prole ted demand in the 'ad'dmanTp = �mr4vide s ekrsttng`ctrmgYrtmgnt � 1 1 e) `Baserved by a landfill Wath suifficrent peutted c`aac�ty to X accommodate thte_. sposal�'n.e.eeprjes sohwas fCyhfiafsaed lalora ds? ,fel Xomplyw ;anWtesdg Fa;, and b) The. Draft Housing Element Update includes Quantified Objectives that can be accommodated by existing and nned water and wastewater treatment,distribution and collection facilities. :. INKS CRY OF SAN LUIS OeisPO 19 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 p4 Z Attachment I Issues, Discussion and Supporting Information Sources SourcesrPotenithay Potentially [lssTiran No 3009 GENERAL PLAN HOUSING ELEMENT UPDATE cant Significant Significant impact fR #.130 08 es Unless Impact Mitigation Incorporated c) Based on the 3009 Water Resources Status Report, prepared by the City's Utility Department, the City can reasonably expect to have up to 1,828 AFY of water available to support new housing during the planning period—enough water to accommodate San Luis Obispo's projected population growth through 2022. Draft Housing Element Update policies assume that the development of up to 1,589 planned in-city dwelling units during the planning period will use 1,084 AFY,which is less than the amount available to allocate to new development. The table below represents the water available for development based on water demand of 145 gallons per person per day. Projected City population of 57,200 at General Plan build-out results in a projected water demand of 9,290 acre-feet per year (excluding demand from the Cal Poly campus,which has separate entitlements),which is within the City's Safe Annual Yield of 11,080 acre feet. Table 4:Water Available for Develo ment Year Population Present Water Safe Annual Yield Water Available for Demand @ 145 gpcd Allocation based on General Pian 2009 44,750 7,268 of 11,080 of 1,828 of d) The City of San Luis Obispo provides wastewater treatment for City residents. The capacity of the Water Reclamation Facility is adequate to accommodate project population growth and new commercial development in the City. The Wastewater Master Pian is updated from time to time to identify when additional capacity at the facility will be regitired. The planned expansion of the Water Reclamation Facility is funded by rate payers and through impact fees collected from new development. e), f) The City's Construction Debris Diversion and Recycling Ordinance requires that all new development include a recycling plan to reduce the amount of debris disposed of at the Cold Canyon Landfill, which serves the City of San Luis Obispo. Cold Canyon Landfill has sufficient capacity to accommodate the City's anticipated build-out population. Conclusion: No impact. Based on planned service capacities, the City will be able to serve the increased water demand resulting from the additional population and housing anticipated in the Draft Housing Element Update. The increase in service demand is within the City's projections for available water and wastewater treatment resources,and within the growth limits established in the General Plan Land Use Element. 17.MANDATORY FINDINGS OF SIGNIFICANCE. aj,woes rhe proaecthave the poten tat to degrade the:t�ttalttybfrhe s X environment sulistn[tallyreducetEe'ha(�ttatofafshorwrldltfe': spectes;cause a fisYrorwildi fePpR_j flop".0: p%17e'iow$elf sustatpuip levels,,ttueaten to eluntnate aplant or azurttak community,reduc. th numb'er ornstric6.t the singe' farare qr r endangered plant.or atiumal or eluntnate unportaute:taviples ors the nla Qr 6r10d5_b'f Cal&riia histo OL xehistii Individual development projects' impacts on natural and cultural resources will be evaluated and mitigated,consistent with CEQA and with General Plan policies. The proposed Update will not affect City policies on protecting and enhancing biological or cultural resources or preclude the City from achievingresource protection goals. b)"';Does the project hate unpxcts.tb4are mdtvtdualty l tnttezlz bvt X l.It S kA'P, .�'_, cumulatively ct�nsY ierable t ("Cumulatively cbfisyderabYe"r means that the mcementaleffects of a project sire Contderable xvhen viewed iuq with the effects ofthe. UN." _the effects of otfter current protects,and the effects of prgliable 6.a .fuAiie iolects; The Draft Housing Element Update would accommodate up to 1,589 in-city dwelling units in a five year period. Over'ri 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 CITY OF SAN LUIS OelsPo 20 INITIAL STUDY ENVIRONMENTAL CHECKLIST 2009 (.�r Attachment 1 Issues, Discussion and Supporting information Sources Sources Potentiauy Potentially LessTlnn No 2009 GENERAL PLAN HOUSING ELEMENT UPDATE Significant Significant Sibip ct dmpact ER # 120-08 Issues Unless Impact Mitigation ' Incorporated residential growth. Cumulative impacts of General Plan policies and anticipated growth 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) .;T]oe�the,p%lect have envrztinmental'effeots tvbCh vzuzJl'ctise X Substanrial a+ivetse. ffects on lwman beings,0tther dubctly or The Housing Element update will meet a portion of the City's housing needs for all income groups. There is no evidence that the Element's policies and programs will have significant,adverse impacts on humans either directly or indirectl . Cmr OF SAN Luis OBISPO 21 INITIAL STuny ENVIRONMENTAL CNEcKLIST 2009 Attachment I 18.EARLIER ANALYSES. Earlier analysts Itia�be used'Where,pursuant[o'lhq tierSfi$,�!'ograt4t F,IR;qr other'CEQ,Q prgcgsrs,,onq or more effects havb been adequately 2na1 ed m an tar.les Tn tjtls case 4. iKm-iorf n shouldId` .thefollowin""°itcdse —= -a) $arhe, sts used=Id earhet:anaL ..e$.andstate';�v ere tlfe :�re,SJa latile fox 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 ' I01PMF-s adggaately ad7ressed Ldentify w ttcl►effects roAn t)Le above ehecklis£were vmthm the sco re ofanii 8detltiately analyzed�n an ea_rher document ptSrsuaztt tq aggltgable legal*San clLR;, whethef sucb effects were a3dressed byr _::_:mitt ati�xAtoasui�s]aasr�nn3lz��adter_sttal 'iso_ r See attached Resolution No. 8332 excerpt, summarizing environmental impact, mitigation, monitoring and overriding considerations from the 1994 Land Use Element update. _cj Mibl ahon meastnesi -of.df icls that are"Y ess tltati 5tgtnfican�with Mrttgatton Igcfl�oratedilescrtbe the ttlmg iSbrc ttitasssres which'w6re t�corporated or;efined froin. earlier document end the extent tq yhtcli they addre§s sifiFW6cfic; cdndrtionso£t5e' ect 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. 1 Unified General Plan, City of San Luis Obispo. 2. Drafi General Plan Housing Element Update,City of San Luis Obispo,September 2009 3. 1003 California Environmental Quality Act CEQA Guidelines, Consulting Engineers and Land Surveyors of California. 4. 2001 Clean Air Plan,San Luis Obispo County, San Luis Obispo County Air Pollution Control District. 5. General Plan Safety Element, City of San Luis Obispo,July 2000 6. General Plan Noise Element and Noise Guidebook,City of San Luis Obispo,May 1996. 7. General Plan Conservation and Oen Space Element,City of San Luis Obispo, 8. Community Design Guidelines, City of San Luis Obispo,May 2003 9. Zoning Regulations,City of San Luis Obispo,August 2009 10. Airport Land Use Plan, City of San Luis Obispo,May 2005 11. Draft Orcutt Area and adopted Margarita Area Specific Plans,City of San Luis Obispo,October 2004 12. Municipal Code,City of San Luis Obispo 13. Water Resource Status Report,City of San Luis Obispo,July 2009 14. General Plan Circulation Element, City of San Luis Obispo,July 2000 15. Archaeological Resource Preservation Guidelines,City of San Luis Obispo,October 1995 16. Historic Preservation Guidelines,City of San Luis Obispo,April 2008 17. General Plan Parks and Recreation Element, City of San Luis Obispo,July 2000 18. Conservation Plans;Cerro San Luis,September 2005,Bishop Peak Natural Reserve,July 2004,Irish Hills Natural Reserve,Johnson Ranch,January 2008,South Hills,July 2007,Draft Stenner Springs Natural Reserve, July 2009 Attachments: 1. Draft Housing Element Update July 2009 2. Excerpt, Resolution No. 8332 approving the Land Use/Circulation Element Updates and summarizing environmental impacts,mitigation and monitoring, and overriding considerations. Car)Docs/Gs4atAL PLAN/Houswc ELEMENT is -,�5 Attachment . 2 November 18,2009 City of San Luis Obispo Housing Element Update SUBJECT: November 2009 Council Hearing Draft—Response to HCD Comments Following are HCD's comments and a summary of how the 2009 Council Hearing Draft Housing Element responds to those comments: Staffs responses are in italics. The following changes would bring San Luis Obispo's housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. A. Housing Needs, Resources,and Constraints 1. include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households(Section 65563(a)(1)). While the element quantifies existing and projected extremely low-income(ELI) households,pursuant to Chapter 891, Statutes of 2006(AB 2634), it must also include an analysis of their housing needs. The analysis of needs should consider tenure and rates of overpayment and overcrowding and is helpful in formulating specific policies and programs to assist in the development or maintenance of housing for ELI households. To assist the analysis,see the enclosed Comprehensive Housing Affordability Strategy (CHAS)data and Departments sample analysis from the Building Blocks website at htto://www.hcci.ca.00v/hod/housina elenment2/EHN extremelvlowincome.ohp. The Draft was revised to address extremely low income households, including an analysis of their housing needs (p. 102-105). 2. Include an inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment; and an analysis of the relationship of zoning and public facilities and services to these sites(Section 65583(a)(3)). The inventory of land suitable for residential development shall be used to identify sites that can be developed for housing within the planning period(Section 65583.2). Since the adoption of San Luis Obispo's 2004 housing element, Chapter 724, Statutes of 2004(AB 2348), amended housing element requirements relating to the land inventory. To address the City's regional housing needs allocation (RHNA) of 1,589 housing units, the element relies on vacant sites, redevelopment and mixed-use opportunities, and sites within new Specific Plan Areas. However, to demonstrate the adequacy of these sites and strategies to accommodate the City's RHNA, the element must include complete analyses: P N -36 Attachment 2 Response to HCD Comments-November 2009 Council'Hearing Draft Housing Element Page 2 Progress in Meeting the-RHNA: The element credits 621 units constructed on the Cal Poly Campus towards the City's RHNA. However, according to the Department of Finance's (DOF) Demographic Research Unit,these units will be attributed in their periodic updating of housing stock to the unincorporated County as the Cal Poly Campus is outside the City limits and within the unincorporated County and DOF was unaware of any formal agreement between the City, County, and/or University which would provide a basis for allocation to the City. The RHNA plan adopted by SLOCOG (page 10) also indicates.thatadjustments were not made in the allocations for the new housing development on the Cal Poly campus. Accordingly, as the RHNA methodology incorporates housing estimates as reported by DOF,the element cannot credit the units built on the Cal Poly campus against its RHNA. Staff has revised the Draft accordingly. The change does not affect the City's ability to meet its RHNA requirement. (Tables 4 and 5,pp. 55 and 59, and discussion on pp. 121-122). Sites Inventory: The parcel-specific inventory (Appendix N) must also include a listing of sites by general plan designation and identify existing uses on underutilized and non- vacant sites. In addition, to demonstrate the availability of the following sites,the element must address the following: • Specific Plan Areas: The element relies on capacity within the approved Margarita and proposed Orcutt Specific Plans (Survey Areas 18 and 21) to accommodate a portion of the City's RHNA(page 153). As phasing is required for future development within these areas (page 129),the element.should describe the development potential of the identified sites within the Planning period, and include a description of any requirements for unit types or affordability that could impact development potential. • Sites within the Urban Reserve: Should the element need to rely on sites within the Orcutt Specific Plan, it must include a program committing to the annexation of those sites pursuant to the February 2010 timeframe (page 126). The additional site inventory information has been provided in Appendix N, p. 286, and additional information provided on specific plan areas (pp.131-135) to address development phasing and these areas' readiness for development. Program 6.17 was added (p. 35) calling for annexation of the Orcutt Specific Plan Area by December 2010. Pl4�- 3 Attachment 2 Response to HCD Comments-November 2009 Council Hearing Draft Housing Element Page 3 Realistic Capacity: While the element describes the methodology for determining capacity based upon required site improvements, physical constraints, and the City's density unit criteria (Appendix N, pages 10-12), for sites within mixed-use zones, capacity estimates must also account for potential non-residential uses including any performance standards mandating a specified portion of a mixed-use site as non- residential (i.e.,first floor,front space as commercial). For non-vacant sites, the element should estimate potential residential capacity considering not all non-vacant sites will redevelop within the housing element planning period. For example, the element could base estimated capacity on those sites determined to have the greatest potential for redevelopment. The element should also describe any existing or proposed regulatory incentives and standards to facilitate housing development in the mixed-use or commercial zones and on the identified non-vacant sites. The methodologyfor determining residential capacity is described in Appendix D (p. 164) and in Appendix N. An evaluation of residential density capacity and a discussion of "realistic" residential development capacity was added (p. 180). Capacity calculations apply a 25 percent reduction to each property's allowed residential density, so that capacityfigures are adjusted to 75 percent of allowed density after adjusting for lot zoning, size and slope. Staff also expanded the capacity inventory to include descriptions of property status and likelihood to redevelop within the 5-year timeframe. Properties without reasonable potential for residential development or redevelopment were not included in the capacity totals. Existing and proposed regulatory and financial incentives to encourage housing development are included(p. 181) Suitability of Non-Vacant Sites: The element relies on redevelopment potential of blighted and underutilized sites throughout the City to accommodate a portion of the RHNA. To demonstrate the suitability and feasibility of non-vacant sites, the element must analyze the extent to which existing use may impede additional residential development. The element could include information such as the condition of the structure, whether the use is operating, marginal or discontinued, recent development trends, and/or interest from owners or developers. For sites with residential uses,the inventory should generally describe structural conditions or other circumstances and trends demonstrating the redevelopment potential to more intense residential use. For further information on meeting this requirement, refer to the Building Blocks' website at httoJ/www.hcd.ca.ciov/hpd/housing element2/SIA zoningphp#nonvancant. The requested information has been provided in Appendix N, Residential Capacity Inventory,p. 286. Small Sites: Given the element's reliance on small sites to accommodate housing affordable to lower-income households, it should evaluate the realistic potential for additional residential development on smaller residential infill parcels. For example, while it may be possible to build housing on a very small parcel,the nature and conditions necessary to construct the units often render the provision of affordable housing infeasible. Most assisted housing developments utilizing State or federal financial resources typically include at least 50 to 80 units. For further information on meeting this requirement, please refer to the Building Blocks'website at http://www.hcd.ca.gov/hpd/housing element2/SIA zoning pho. A discussion of residential development potential of small sites is discussed starting on page 176. Anticipated residential development during the planning period relies on a range of housing -PH 3'�Y Attachment 2 Response to HCD Comments-November 2009 Council Hearing Draft Housing Element Page 4 sources, including infill development on vacant sites, redevelopment of underutilized or blighted properties, mixed use development and development within expansion areas (Margarita and Orcutt specific plan areas). It does not rely solely on small sites to meet lower-income housing needs. Zoning provisions are flexible in allowing development of small residential sites. For example, Zoning Regulations allow legally-created, residential lots of any size to have a single dwelling unit, irrespective of density standards, provided they can otherwise meet development standards (e.g. setbacks,parking, lot coverage and building height). Zoning Appropriate to Facilitate and Encourage Housing for Lower-Income Households: The element identifies some sites zoned at densities greater than 20 units per acre; however,to accommodate a portion of the housing need for lower-income households, it appears to rely on sites zoned R-3, C-N, and M,which have densities under 18 units per acre(Table C-1). Should the element need to rely on sites within these zones to accommodate a portion of the FiHNA for lower-income households,the element must demonstrate the adequacy of these zones to encourage and facilitate development of housing affordable to lower-income households. The analysis should be based on factors such as market demand;development experience within zones,and specifically address the impacts of density on financial feasibility. For communities with densities that meet specific standards(at least 20 units per acre for San Luis Obispo),this analysis is not required(Section 65583.2(c)(3)(B)). Pursuant to the City's density standard formulas(see Table C-1),densities are based on the number of bedrooms in the units. For example,densities in the R-3 zone(18 du/acre)could range from 9 to 32 depending on the number of bedrooms. The element must demonstrate the typical densities or other estimates of likely densities achieved in the R-3,C-N, and M zones(i.e.,based on development trends),are appropriate to encourage housing affordable to lower-income households. From this comment it appears that allowed density (in "Density Units') is being equated with the maximum possible number of dwelling units (i.e.front doors). Staff has provided additional explanation of density units relate to residential development potential in terms of dwelling units (p. 173). For example, 18 density units per net acre (allowed density in R-3 zone) could allow up to 36 studio apartments on an acre. New programs 6.25 and 6.26 regarding residential density also address this comment. Environmental Constraints: The element did not address this requirement. The element must include a general description of any environmental constraints to the development of housing within the jurisdiction. This information need not be identified on a site- specific basis. Environmental constraints are described on p. 158. Attachment. 2 Response to HCD Comments-November 2009 Council Hearing Draft Housing Element Page 5. Sites with Zonina for a Variety of Housing Lmes Emergency Shelters: Program 8:19 must be revised pursuant to Chapter 633, Statutes of 2007 (SB 2),to identify which zone(s)the City is considering to allow emergency shelters without discretionary approval,demonstrate the appropriateness of the zone and describe the available capacity. Singe-Room Occupancy(SRO): The element did not address the requirement. In accordance with AS 2634, the element should identify which zoning districts allow the use and whether development standards and permit procedures encourage and facilitate these housing types. Staff added a section describing how the City met SS 2 requirements, p. 115. City Zoning Regulations allow emergency shelters in the PF zone. It also describes appropriateness of the_ zone and the available capacity. A section explaining SROs was added, p. 120. The Wineman Hotel remodel in the Downtown core is an example of this type of development. 3. Analyze potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing fdentirred in paragraph(t)of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality Mom meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7) (Section 65583(a)(5)). Fees and Exaction: While the element describes some typical planning fees in relationship to surrounding cities and total fees for typical single-family developments, it did not include a complete description of processing and impact fees for multifamily development nor analyze their cumulative impact on the cost and supply of housing. Recent market conditions make this analysis particularly important. For further information, refer to the Building Blocks'website at http:/twww.hcd.ca.aov/hpd/housina elementWCON fees nho. Multi family fees have been included,pp. 148-151. Local Processina and Permit Procedures: While the element generally describes processing procedures for single-family development, it must specifically describe and analyze the City's permit processing and approval process for typical multifamily projects. The analysis provided in the previous element could assist in addressing this finding (page 117). As the City is relying on residential potential on sites within the C-S and M zones to accommodate a portion of the RHNA,the element should describe use permit requirements and analyze the conditional use permit(CUP)process for impacts on the cost and supply of housing. Multi family processing and permit procedures are addressed, p. 147, and Tables C-1, C-2, and C-3 (pp. 124-129). Attachment 2 Response to HCD Comments-November 2009 Council Hearing Draft Housing_ Element Page 6 Inclusionary Housino: While the element generally d6scribes the City's inclusionary implementation framework(page 27), it should also evaluate those requirements for their potential impact on the cost and supply of housing. For example, the element should discuss options for meeting the requirements, analyze in-lieu fees and describe how the City promotes compliance with inclusionary requirements, including any incentives or regulatory concessions. This is particularly important given current market conditions and the cumulative impact of local regulations. The City could engage the development community to facilitate this analysis. Inclusionary housing section was added (p. 154-155), explaining the program's implementation framework and how "Table 2A " works to promote smaller, higher density housing. It also cites previous studies (Mundie and Associates) on the economic effects of inclusionary housing requirements. New Program 2.5 expands flexibility in how builders can meet inclusionary requirements. Constraints on Persons with Disabilities: The element notes local compliance with the federal Fair Housing Act (page III-19) and includes a program to adopt a formal procedure for reasonable accommodation requests. However, the element must include a complete analysis of zoning and development standards for the development of housing for persons with disabilities. The analysis provided in the previous element could assist in addressing this finding (page 113). For further information, refer to the Building Blocks'website at http://www.hod.ca.aov/hi)dlhousino element2/CON disabilities.ohp. The section on constraints to persons with disabilities was expanded, pp. 144-146. City Zoning and Development standards are consistent with Americans With Disabilities Act requirements; housing for persons with disabilities is subject to the same zoning requirements as other housing types; however all residential projects must meet Title 24 Code requirements to provide housing accessible to disabled persons. 4. Analyze the opportunities for energy conservation with respect to residential development(Section 65583(a)(8)). The element states the City addresses energy conservation goals through enforcement of the Califomia Energy Building Code(page 122). According to staff,the City has adopted a number of energy and climate change strategies including those in other elements of the general plan. The element could reference and describe these efforts and consider how housing and land-use policies or programs could further support energy or climate change objectives. For example,the element could include incentives to promote higher density housing along transit,encourage green building techniques and materials in new and resale homes, promote energy audits and participation in utility programs, and facilitate energy conserving retrofits upon.resale of homes. Additional information on potential policies and programs to address energy conservation are available on the Building Blocks website at httpY/www.hed.ca.ciov/hpd/housing element2/SIA .conservation.php. Energy conservation goals are addressed in the Draft Element on p. 129. The City's full range of energy and materials conservation goals, policies and programs are addressed primarily in the Conservation and Open Space Element of the General Plan. Draft Housing Element Policies 9.1, 9.2, 9.4 and 9.5; and Programs 9.6, 9.8, 9.9, and 9.10 already address energy- and resource-saving strategies in the placement and design of housing.. �t� � -41 � 4 Attachment 2 Response to HCD Comments -November 2009 Council Hearing Draft Housing Element. Page 7 B. Housing Programs I. Include a program which sets forth a rive:year schedule of actions the local government J undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land-use and development controls,provision of regulatory concessions and incentives,and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions(Section 65583(c)). Chapter 3 contains the programs, policy, and goals for the 2009 and 2013 housing element and Appendix F contains the timeframes for the implementation of those programs. However, as acknowledged in the element,Appendix F must be updated to incorporate the new programs contained in Chapter 3 and include timeframes within the current olanning period for all programs. In addition,the following programs require revision: -- Program 3.14: Describe how the City will work with housing providers to rehabilitate residential,commercial, or industrial building to expand housing opportunities to lower- income households. Program 6.27: Describe how the City will support residential infill development and promote higher density residential development. Programs 1.4.2.12. 6.10.6.18. and 8.12: The element could quantify the number of households served or housing units anticipated to be rehabilitated or constructed in the planning period through the implementation of these programs. Implementation is addressed in Appendix F,p. 209. Pages 181-183 address how City will assist housing developers to achieve housing.goals and implement incentive programs. Discussions of residential density and how the City encoavrages infill is located in several places in the document; including: 125, 137, 154, and 180-181. Table 7 on page 62 summarizes rehabilitation and constriction objectives. = Attachment 2 Response to HCD Comments-November 2009 Council Hearing Draft Housing Element Page 8 ` 2. identify adequate sites which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage the development of a variety of types of housing for all income levels, including rental housing, factory-built housing, mobilehomes, and emergency shelters and transitional housing. Where the inventory of sites,pursuant to paragraph(3)of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall provide for sufficient sites with.zoning that permits owner-occupied and rental multifamily residential use by right, including density and development standards that could accommodate and facilitate the feasibility of housing for very low-and low-income households (Section 65583(c)(1)). As noted in finding A2, the element does not include a complete site analysis and, therefore,the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis,the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. For your information,where the inventory does not identify adequate sites pursuant to Government Code Sections 65583(a)(3)and 65583.2,the element must provide a program to identify sites in accordance with subdivision (h)of 65583.2 for 100 percent of the remaining lower-income housing need with sites zoned to permit owner-occupied and rental multifamily uses by-right during the planning period. These sites must also be zoned with minimum density and development standards that permit at least 16 units per site at a density of at least 20 units per acre. Also, at least 50 percent of the remaining need must be planned on sites that exclusively allow residential uses. The Residential Capacity Survey Appendix N(p. 286) now includes additional site analysis (site status, existing use, area and likelihood of redevelopment). The City housing capacity (p. 174- 176) exceeds its RHNA number (Table 6, p. 61). After crediting units built, permitted or under construction since January 1, 2007, the City's remaining housing need is 985. As described in Table D-5 (p. 176), this is within the City's housing capacity within the planning period. It is not necessary to provide an additional program as described in the above paragraph, since the City has identified adequate sites to meet housing needs. Programs 6.25, 6.26 and 6.27 address City efforts to promote higher density housing where appropriate. 3. The housing element shall contain programs which "assist in the development of adequate housing to meet the needs of extremely low-, low-and moderate-income households(Section 65583(c)(2)). Pursuant to AB 2634, existing programs should either be expanded or new programs added to specifically assist in the development of a variety of housing types to meet the housing needs of ELI households. To address this requirement,the element could revise programs to prioritize some funding for the development of housing affordable to ELI households, and/or offer financial incentives or regulatory concessions to encourage the development of housing types, such as SRO units,which address the needs of this income group. Extremely Low Income households are now specifically addressed in policies and programs 2.1, 2.2, 2.4, 2.18, 4.3, 6.18, and Table 5—Quantified Objectives. -p A+ 3 �\ Attachment 2 Response to HCD Comments-November 2009 Council Hearing Draft Housing Element Page 9 4. The housing element shall contain programs which "address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing"(Section 65583(c)(3)). As noted in finding A3; the element requires a more detailed analysis of potential governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs to address and remove or mitigate any identified constraints. The analysis of potential government constraints has been expanded,pp. 123-155. C. Public Participation Local governments shall make a diligent effortto achieve public participation of all economic segments of the community in the development of the housing element,and the element shall describe this effort(Section 65583(c)(7)). While the element includes a summary of the public participation process for the previous planning period(Appendix G,J, l.}, it does not demonstrate how the City has or will make a diligent effort to achieve the involvement of all economic segments of the community through the current housing element update process. The element should be revised to specifically describe the City's efforts to circulate the housing element among low-and moderate-income households and organizations that represent them and to involve such groups and persons in the development of the element. Appendix L,p. 259, has been updated to describe public outreach efforts for the current Housing Element Update. More information will be added as necessary. Attachment 3 RESOLUTION NO. 5536-09 (2009 Series) A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN LUIS OBISPO RECOMMENDING THE CITY COUNCIL ADOPT AMENDMENTS TO THE HOUSING ELEMENT OF THE GENERAL PLAN (GPA/ER 120-08) WHEREAS, State law requires cities and counties to adopt a general plan. The general plan includes seven required elements, one of which is the housing element. The housing element must be updated every five(5)years or as otherwise provided by State law; and WHEREAS, the Housing Element of the San Luis Obispo City General Plan was last updated on March 30, 2004, in compliance with State law; and WHEREAS, the City of San Luis Obispo has prepared an updated Draft General Plan Housing Element to address community-wide housing needs, challenges and opportunities, and to meet State Law; and WHEREAS, the draft Housing Element update was forwarded to the State Department of Housing and Community Development (HCD) for review, and modifications have been made to address HCD comments; and WHEREAS, the potential environmental impacts of the updated Housing Element have been evaluated in accordance with the California Environmental Quality Act pursuant to an initial environmental study (City File number ER 120-08) and the Community Development Director has prepared a negative declaration of environmental impact; and WHEREAS, the Planning Commission, Human Relations Commission, and the City Council have held nine public hearings on the updated Housing Element in accordance with the Califomia Government Code, as well as three focused workshops, and numerous meetings with stakeholders in the community; and WHEREAS, the Planning Commission, at the hearing on November 12, 2009, considered the amendments to the General Plan Housing Element as shown in the October 2009 Draft Housing Element and proposed Negative Declaration of Environmental Effect. NOW,THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San Luis Obispo as follows: SECTION 1. Findings. The Planning Commission, after considering the proposed 2009 Planning Commission Hearing Draft Housing Element, environmental determination, staff recommendations, public testimony and correspondence, and reports thereon, makes the following findings: 1. The proposed draft housing element, including amendments contained in the October 2009 draft Housing Element Update and as further revised by the Planning Commission, are consistent with the General Plan. / Attachment 3 Resolution No. 5536-09(2009 Series) Page 2 2. The proposed amendments are appropriate and necessary to ensure that the City's Housing Element meets State law. 3. Achieving Housing Element certification will promote affordable housing opportunities and help achieve adopted housing goals by making the City eligible for various housing grants and financial incentives and will foster cooperation among local and state agencies in'addressing an urgent need for affordable housing in San Luis Obispo. SECTION 2. Environmental Determination. The Planning Commission has reviewed the project's initial environmental study and determined that the proposed General Plan Housing Element amendments will not create a substantial environmental effect as defined by the California Environmental Quality Act and supports approval of the initial environmental study (City File Number ER 120-08) and associated Negative Declaration prepared by the Community Development Director. SECTION 3. Action. The Planning Commission does hereby recommend to the City Council of the City of San Luis Obispo approval of the 2009 Draft Housing Element, subject to the amendments described in the Commission's November 12, 2009, minutes being incorporated into. the Draft Housing Element, and approval of the project's Negative Declaration of environmental effect. Upon motion of Vice-Chairman Multari, seconded by Commissioner Boswell, and oil the following roll call vote: AYES: Commissioners Boswell, Meyer, Singewald, Whittlesey, Multari, and Stevenson. NOES: None RECUSED: None ABSENT: Commissioner Draze The foregoing resolution was adopted this 12thday of November 2009. hilt'l Kim Murry, Secretat Planning Commission Exhibit "A'` November 2009 City Council Hearing Draft Housing Element Attachment 4 RESOLUTION NO. (2010 Series), A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO ADOPTING AN UPDATED HOUSING ELEMENT OF THE GENERAL PLAN WHEREAS, State law requires cities and counties to adopt a general plan. The general plan includes seven required elements, one of which is the housing element. The housing element must be updated every five(5) years or as otherwise provided by State law; and WHEREAS, the City of San Luis Obispo has prepared an updated Draft General Plan Housing Element to address community wide housing needs, challenges and opportunities, and to meet State law; and WHEREAS, the Planning Commission and the City Council have held public hearings_ on the updated Housing Element in accordance with the California Government Code; and WHEREAS, the City Council has considered the input of diverse community interests and housing stakeholders in the preparation of the updated Housing Element to identify community needs and to recommend housing policies and programs; and WHEREAS, the potential environmental impacts of the updated Housing Element have been evaluated in accordance with the California Environmental Quality Act pursuant to an initial environmental study (City File Number ER 120-08), and the Community Development Director has granted a negative declaration of environmental impact, and WHEREAS, the Planning Commission recommends the City Council approve the negative declaration of environmental impact and the updated Housing Element. WHEREAS, by a separate resolution the City Council found that there is no evidence from which it can be fairly argued, that the project will have a significant, adverse effect on the environment; and consequently certified and approved the negative declaration of environmental impact for the Updated Housing Element NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Record of Proceedings. The City Council has received and considered the Planning Commission recommendations, public testimony and correspondence, and the staff reports on the Housing Element Update. Copies of these items or testimony are on file in the office of the City Clerk and in the Community Development Department. The Planning Commission held seven public hearings to consider the Housing Element Update and related matters..The Human Relations Commission held two public hearings and the Airport Land Use Commission held one public hearing to consider the Housing Element Update and related matters. In addition, staff conducted three public workshops and attended numerous meetings. with stakeholder groups to consider the Update and related matters. The minutes of those hearings indicate Commission member comments on the Housing Element Update and are on file in the office of the City Clerk. ^ R Attachment 4 Resolution No. (2010 Series) Page 2 SECTION,2. Public and Agency Review. Drafts of the proposed Housing Element Update have been made widely available for review and comment by interested agencies and individuals. Copies were posted on the City's website and were distributed to the San Luis Obispo City- County Library and to the California State Department of Housing and Community Development ("HCD") as required by law, and to governmental and non-profit housing agencies whose jurisdiction includes housing issues within the San Luis Obispo Area. An email list of interested parties has been kept abreast of hearings, proposed changes and updates to the Housing Element in addition to distribution required by law. SECTION 3. Findings. This Council, after considering the 2009 Final Draft Housing Element, the Planning Commission's recommendations, staff recommendations, public testimony and correspondence, and reports thereon, makes the following findings: 1. The Housing Element Update, as contained in the document titled "Council Hearing Draft General Plan Housing Element", dated November 2009, Exhibit "A" on file in the Community Development Department (hereinafter "the Update"), is consistent with all elements of the General Plan. 2. The Update will promote public health, safety, and welfare by: preserving housing that is affordable to extremely-low, very-low, low- and moderate income households; encouraging variety in housing types, sizes, cost, and tenure; establishing programs to ensure that most new development incorporates affordable housing, pays an "in-lieu" fee toward the development of affordable housing, or otherwise contributes to the production of affordable housing; establishing incentives to encourage and help defray the costs of affordable housing development; affirmatively furthering fair housing opportunities; and by setting quantified objectives for housing production, rehabilitation, preservation and conservation. 3. Consistent with provisions of California Government Code Section 65583 (b)(2), San Luis Obispo has evaluated its ability to accommodate its Regional Housing Need Allocation (RHNA) number of 1,589 dwellings by July 2014 and has adopted quantified objectives that are the same as the RHNA number. There is sufficient land suitable for residential development to accommodate the RHNA number within the planning period. 4. The November 2009 Draft Housing Element was submitted to HCD for its review, as required by State law. The Update includes additional information and analysis in response to HCD comments. The Council has determined that the Update conforms to the statutory requirements of State housing element law (Article 10.6 of Government Code). 5. Council hereby finds that the Update will not operate to directly limit the total number of dwellings which may be constructed on an annual basis, since dwellings affordable to extremely-low, very-low, low-, and moderate income households, and dwellings constructed in the Downtown Core (C-D Zone), are exempt from Residential Growth Management Regulations. t"n14 q Attachment 4 Resolution No. (2010 Series) Page 3 SECTION 4. Approval of the 2009 Housing Element. Council hereby approves the 2009 Housing Element, as set forth in Exhibit A. SECTION 5. Publication and Availability. The Community Development Director shall cause the updated Housing Element to be published and provided to City officials, concerned agencies, public libraries, and to the public. The Director shall also transmit a copy of the Update to HCD for its final review, as required by State law. - .SECTION 6. Effective Date. The 2009 Housing Element shall become effective immediately upon adoption of this resolution. SECTION 7. Repeal of Previous Element. The Housing Element adopted March 30, 2004 and as subsequently amended, is repealed upon the effective date of the 2009 Housing Element. Upon motion of , seconded by , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 19th day of January, 2010. David F. Romero, Mayor ATTEST: Elaina Cano City Clerk APPROVED AS TO FORM: ! R�fi I stine Dietrick City Attorney Attachmant 5 RESOLUTION NO. (2010 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING AND CERTIFYING A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT FOR THE UPDATED HOUSING ELEMENT OF THE GENERAL PLAN WHEREAS, State law requires cities and counties to adopt a general plan. The general plan includes seven required elements, one of which is the housing element. The housing element must be updated every five(5) years or as otherwise provided by State law; and WHEREAS, the City of San Luis Obispo has prepared an updated Draft General Plan Housing Element to address community wide housing needs, challenges and opportunities, and to meet State law; and WHEREAS, the Planning Commission and the City Council have held public hearings on the updated Housing Element in accordance with the California Government Coded and WHEREAS, the potential environmental impacts of the updated Housing Element have been evaluated in accordance with the California Environmental Quality Act pursuant to an initial environmental study (City File Number ER 120-08), and the Community Development Director has granted a negative declaration of environmental impact; and WHEREAS, the Planning Commission recommends the City Council approve the negative declaration of environmental impact and the updated Housing Element; and WHEREAS, The City Council has reviewed and considered the information contained in the initial study and the negative declaration for ER No. 120-08 prepared for this Housing Element Update. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Environmental Determination. This Council, as a result of its deliberations, Planning Commission recommendation, the initial environmental study, and the evidence presented at hearings on this matter, determines that as required by the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, a negative declaration adequately addresses the potential environmental impacts, of the Housing Element Update, On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the project will have a significant, adverse effect on the environment, and hereby certifies and approves the negative declaration of environmental impact for -the Updated Housing Element. SECTION 2. Effective Date. The approval and certification of the negative declaration of impact shall take effect immediately. ^H .E..J -5D R Attachment 5 Resolution No (2010 Series) Page 2 Upon motion of , seconded by and on the following roll call vote: - AYES: NOES: ABSENT: The foregoing resolution was adopted this 30th day of March, 2004. David F. Romero, Mayor ATTEST: Elaina Cano City Clerk APPROVED S TO FO i; stine Dietrick City Attorney �N-y-sl J ` a - 84° Community Development Department Memorandum RECEIVED RED FILE JAN 1. 5 2010 MEETING AGENDA January 15,2010 SLO CITY CLERK DAT 1 a I°ITEM # N TO: City Council FROM: John Mandeville, Community Development Director SIR VIA: Shelly Stanwyck, Assistant City ManagerouNCIL TCDD DIR VCAO VFIN DIR B� ACAO &B-FIRE CHIEF SUBJECT: Housing Element Update ! l�'ATTORNEY B PO IR CHF Response to HCD Comments and DEPT HEADS P AEC DIR Proposed Review Strategy for Council Hearing pry' fp UTIL DIR - rOuu� 8 HR DIR Response to HCD Comments � eLa2« Staff sent the November 2009 Housing Element draft to the State Department of Housing and Community Development (HCD) for additional review, and staff received verbal comments from the HCD analyst last week. The review yielded a much shorter list of requested changes and additions than HCD's review of the first draft. With relatively minor changes, the Draft can be amended to address latest HCD's comments following Council adoption and prior to sending the approved Housing Element to HCD for its final certification review. With the exception of item 3 below, the requested information will be included in appendices. Following is a summary of HCD's most recent comments and how staff proposes to address these in the final element. 1. Revise the Residential Capacity Inventory, Appendix N, to more clearly differentiate between vacant or underutilized sites and those sites that are under construction and partially developed. Projects with planning approvals (but not building permits) must be counted under "Capacity" rather than dwellings if not yet fully built out. Response: This is a minor technical change affecting how residential capacity is counted. It affects only a few properties (e.g. Laurel Creek development off Orcutt Road), and has no affect on housing policy, programs or the City's ability to meet its regional housing need(RHNA). 2. Provide a breakdown of how many dwelling units in the Margarita and Orcutt specific plan areas are likely to be multi-family dwellings, and how much land is zoned for densities of at least 20 dwelling units per acre (HCD uses this density 919 Palm Street San Luis Obispo,CA 93401-3218 (805) 781-7171 FAX:(805) 781-7173 ' Housing Element Update Page 2 Council Hearing January 19. 2010 threshold to determine feasibility of developing dwellings affordable to lower income households. Response: Staff will provide the information. Both specific plan areas propose residentially-zoned land that would accommodate densities of 20 dwellings/acre or higher. 3. Provide a program to give priority to residential projects that include housing affordable to Extremely Low Income households. Response: Staff proposes modifying Program 6.18, page 35 as follows (added language underlined): 6.18 (3.1212) Financially assist in the development of housing affordable to extremely low, very-low, low- or moderate income households during the planning period using State, Federal and local funding sources, with priority given to proiects that produce the maximum number ofhousing units that meet the lowest income levels. 4. Include typical City fees (development review, permit, and impact fees) applying to multi-family housing. Response: Staff will include this information in Appendix C, section h) Development Fees,page 148. 5. In addition, the Planning Commission recommended that an additional property be considered for possible rezoning under Program 6.12. The Commission recommended inclusion of the parcel located at 12165 Los Osos Valley Road,just south and across Los Osos Valley Road from the Prefumo Creek Commons project site. This is consistent with Council direction provided during hearings on Prefumo Creek Commons. Response: Staff will add parcel 067-241-023 (12165 Los Osos Valley Road) to the list of parcels to consider for mixed use or residential development under program 6.12 and to the map shown under Figure 1. Council Review Strategy Staff is recommending the following review strategy for Tuesday's Council meeting. The Housing Element is organized as four chapters followed by appendices. Chapters 1 and 2 provide a summary of the appendices; Chapter 3 contains the policies and programs; and Chapter 4 contains the quantified objectives. The appendices contain the demographic and other data that support the primary focus of the Housing Element: the policies and programs that describe the City's approach to housing over the upcoming five year period. Housing Element Update Page 3 Council Hearing January 19. 2010 Staff recommends that Council members review the appendices and Chapters 1 and 2 of the draft element to determine if there are any questions to which staff can respond. If the Council does not have questions regarding the data, the review can move to the more impactful discussion of Chapter 3: Goals, Policies and Programs and Chapter 4: Quantified Objectives, since these are the core of the Housing Element. After hearing public testimony, Council members may wish to proceed by considering Chapter 3 by each goal section (e.g. Goal 1 Safety, Goal 2 Affordability, etc.), and to poll Council members to determine if there are any programs or policies members would like to discuss or change. If no policies or programs are identified, the Council may move on to the next goal, and so on. The discussion of Chapter 4: Quantified Objectives can follow. Good evening. My name is Joan Harper. I live in Laguna.Lake Mobile Estates, and I speak for the 500+ residents of our park, as well as for all park residents in the City who otherwise have no formal representation. My comments are therefore directed toward those segments of the Housing Element specifically addressing mobilehome parks. The city's Housing Element clearly includes language that recognizes the part that mobilehome parks play in providing homes for lower-income citizens. These people range from —young service workers in the City and their families who can't afford any other housing, --disabled seniors trying to make ends meet on social security, and —retired seniors, who provide untold hours of volunteer work to City hospitals, police stations, schools, and charitable organizations. Sections of the Housing Element draft, so very important to us in MHParks, are those that address —the need for sufficient affordable housing —the need to conserve, rehabilitate, and improve the City's existing affordable housing, and to find the financial assistance to do so --the need to continue the mobile home rent stabilization program --and the need for a new zoning designator for mobilehome parks These needs have been included in the Housing Element in the following sections: Goal 1: Program 1.4 Goal 8: Policies 8.2, 8.3 Programs 8.12, 8.13, and 2 new ones, 8.21, 8.24 I question Program 8.21 (p. 39)that states"Identify properties [mobile home parks in the list] that can be acquired and converted to affordable permanent housing and permanent supportive housing for homeless persons and families." Most of the 1500 MH spaces in the city do provide affordable permanent housing, so the New part is "permanent supportive housing for homeless persons and families." I do support this program, but only if it can be accomplished without evicting existing MH residents. On the other hand, I acknowledge the fact that a few older parks in the city are in tough shape. They need redevelopment work, not destruction, as, for the residents living there, those parks are the only housing they can afford. To close or convert the park would literally put them on the street. I ask you tonight to accept the draft sections pertaining to MHParks as they currently appear. I'd like to thank Kim and Jeff for their outstanding efforts and dedication to providing an excellent Housing Elements document for the City. Good job! Thank you.