City of Huntington Beach - File #: 22-870

File #:

22-870

Type:

Public Hearing

Status:

Held

File created:

10/10/2022

In control:

City Council/Public Financing Authority

On agenda:

11/29/2022

Final action:

Title:

Adopt Resolution No. 2022-62 approving General Plan Amendment No. 2021-003 (Housing Element Update), adopt Resolution No. 2022-78 approving General Plan Amendment No. 2022-001 (General Plan Land Use Element Affordable Housing Overlay), approve for introduction Ordinance No. 4269 approving Zoning Map Amendment No. 2022-002 (Zoning Map Affordable Housing Overlay), approve for introduction Ordinance No. 4272 approving Zoning Text Amendment No. 2022-008 (HBZSO Chapter 229 Affordable Housing Overlay), adopt Resolution No. 2022-59 approving Zoning Text Amendment No. 2022-009 (Beach and Edinger Corridor Specific Plan Affordable Housing Overlay), approve for introduction Ordinance No. 4271 approving Zoning Text Amendment No. 2022-007 (Holly Seacliff Specific Plan Affordable Housing Overlay), and adopt Resolution No. 2022-63 approving Subsequent Environmental Impact Report No. 2022-002 with findings of fact and statement of overriding considerations (Housing Element Update and Associated Progra...

Attachments:

1. Att #1 Resolution No. 2022-63 SEIR (FOF_SOC), 2. Att #2 Resolution No. 2022-62 GPA No. 21-003 (HEU), 3. Att #3 Resolution No. 2022-78 GPA No. 22-001 (LUE), 4. Att #4 Leg Draft GPA No. 22-001_Land Use Element, 5. Att #5 General Plan Land Use Map Figure LU-2 (GPA 22-001), 6. Att #6 ZTA No. 22-008_ZMA No. 22-002 (HBZSO)_Findings, 7. Att #7 Ordinance No. 4269_ZMA No. 22-002, 8. Att #8 Ordinance No. 4272 ZTA No. 22-008 (Ch 229), 9. Att #9 ZTA No. 22-009 (BECSP)_Findings, 10. Att #10 Resolution No. 2022-59_ZTA No. 22-009 (BECSP), 11. Att #11 ZTA No. 22-007 (SP9)_Findings, 12. Att #12 Ordinance No. 4271 ZTA No. 22-007 (SP9), 13. Att #13 Appendix B - Adequate Sites, 14. Att #14 Housing Element Sites Map, 15. Att #15 Housing Element Weblink, 16. Att #16 Final SEIR_MMRP, 17. Att #17 Public Comments (for PC Meeting of Nov. 16), 18. Att #18 Oct. 11, 2022 PC Staff Report (no attachments), 19. Att #19 Nov. 16, 2022 PC Staff Report (no attachments), 20. Att #20 PowerPoint Presentation, 21. 11/23 Communications, 22. 11/28 Sup Com, 23. 11/29 Sup Com

Date	Action By	Action	Result	Action Details	Meeting Details	Video
11/29/2022	City Council/Public Financing Authority	continued	Pass	Action details	Meeting details	Video

REQUEST FOR CITY COUNCIL ACTION

SUBMITTED TO: Honorable Mayor and City Council Members

SUBMITTED BY: Al Zelinka, City Manager

VIA: Ursula Luna-Reynosa, Director of Community Development

PREPARED BY: Nicolle Aube, AICP, Senior Analyst

Subject:

title

body

Statement of Issue:

The proposed General Plan Amendment No. 2021-003 would update the City’s Housing Element for the sixth planning period covering 2021-2029 to accommodate its regional housing need allocation (RHNA) of 13,368 units. The associated requests implement the necessary program actions identified in Section 4: Housing Plan of the Housing Element to accommodate the City’s RHNA by applying residential overlays on the identified sites inventory. On November 16, 2022, the Planning Commission held a public hearing to consider the Housing Element Update, the Subsequent EIR (SEIR), and the associated program implementation actions. The Planning Commission and staff recommend approval of the requests as modified by the Planning Commission. If the City Council approves the recommended actions, the Housing Element will be transmitted to the California Department of Housing and Community Development (HCD) for review and certification.

Financial Impact:

Not applicable.

Recommended Action:

recommendation

CEQA Action

A) Approve Subsequent EIR No. 22-002 with findings of fact and statement of overriding considerations by approving City Council Resolution No. 2022-63, “A Resolution of the City Council of the City of Huntington Beach certifying Final Subsequent Environmental Impact Report No. 22-002 for the City of Huntington Beach 6^th Cycle Housing Element Update (2021-2029), adopting findings pursuant to the California Environmental Quality Act, adopting a statement of overriding considerations, and adopting a mitigation monitoring and reporting program” (Attachment No. 1);

Housing Element Update Action

B) Approve General Plan Amendment No. 21-003 (Housing Element Update) and City Council Resolution No. 2022-62, “A Resolution of the City Council of the City of Huntington Beach approving General Plan Amendment No. 21-003 (2021-2029 Housing Element Update” (Attachment No. 2);

Implementation Actions (Legislative Amendments)

C) Approve General Plan Amendment No. 22-001 (General Plan Land Use Element Affordable Housing Overlay) and City Council Resolution No. 22-78, “A Resolution of the City Council of the City of Huntington Beach approving General Plan Amendment No. 22-001 (Land Use Element and Land Use Map Updates” (Attachment Nos. 3, 4 and 5);

D) Approve Zoning Map Amendment No. 22-002 (Zoning Map Affordable Housing Overlay) with findings (Attachment No. 6) by approving Ordinance No. 4269, “An Ordinance of the City of Huntington Beach amending District Maps 2 (Sectional Map 2-6-11), 15 (Sectional Map 14-5-11), 26 (Sectional Map 23-5-11), 27 (Sectional Map 24-5-11), 31 (Sectional Map 26-5-11), 32 (Sectional Map 27-5-11), and 39 (Sectional Map 35-5-11) of the Huntington Beach Zoning and Subdivision Ordinance to add the Affordable Housing Overlay to real property within the City of Huntington Beach” (Attachment No. 7);

E) Approve Zoning Text Amendment No. 22-008 (HBZSO Chapter 229 Affordable Housing Overlay) with findings (Attachment No. 6) by approving draft Ordinance No. 4272, “An Ordinance of the City Council of the City of Huntington Beach amending the Zoning and Subdivision Code of the City of Huntington Beach to add a new Chapter 229 (Affordable Housing Overlay)” (Attachment No. 8);

F) Approve Zoning Text Amendment No. 22-009 (Beach and Edinger Corridor Specific Plan Affordable Housing Overlay) with findings (Attachment No. 9) by approving draft City Council Resolution No. 2022-59, “A Resolution of the City Council of the City of Huntington Beach approving an amendment to the Beach and Edinger Corridors Specific Plan (SP 14)” (Attachment No. 10); and

G) Approve Zoning Text Amendment No. 22-007 (Holly Seacliff Specific Plan Affordable Housing Overlay) with findings (Attachment No. 11) by approving draft Ordinance No. 4271, “An Ordinance of the City Council of the City of Huntington Beach amending the Holly-Seacliff Specific Plan (SP 9) to establish an Affordable Housing Overlay” (Attachment No. 12).

end

Alternative Action(s):

The City Council may make the following alternative motion(s):

1. Continue Subsequent EIR No. 22-002, General Plan Amendment No. 21 -003, General Plan Amendment No. 22-001, Zoning Map Amendment No. 22-002, Zoning Text Amendment No. 22-009, Zoning Text Amendment No. 22-007, and Zoning Text Amendment No. 22-008 and direct staff accordingly.

The City Council can utilize this alternative if direction is provided to make changes to the Housing Element, including direction to bring forward for consideration the Housing Element reviewed and approved by HCD, which was previously considered by the Planning Commission at a public hearing on October 11, 2022.

2. Deny Subsequent EIR No. 22-002, General Plan Amendment No. 21 -003, General Plan Amendment No. 22-001, Zoning Map Amendment No. 22-001, Zoning Map Amendment No. 22-002, Zoning Text Amendment No. 22-009, Zoning Text Amendment No. 22-007, and Zoning Text Amendment No. 22-008 and direct staff accordingly.

The Housing Element is required to be submitted to HCD for certification that it substantially complies with state Housing Element law. Continuation or denial of the Housing Element Update will preclude the City from obtaining HCD certification of the Housing Element. The City is subject to legal challenges, enforcement actions from the state, and penalties for noncompliance as described in this report as long as the Housing Element remains out of compliance.

Potential consequences if the City Council does not adopt the Housing Element and associated implementation actions

If the City Council does not adopt the Housing Element and associated implementation actions and forward to HCD for certification, the City will not be in compliance with State Housing Element laws. HCD has significant enforcement capabilities due to AB72 (2017), which enables HCD to refer non-compliant jurisdictions to the State Attorney General’s Office. If the court finds a city’s Housing Element invalid, the city can potentially face penalties such as:

• Moratorium on all development/building permit issuance

• Loss of local land use authority

• Fines of up to $100,000 per month.

• Loss of eligibility for State funding programs for housing, transportation and infrastructure

• Court appointed receiver with powers necessary to bring the City’s Housing Element into compliance with State laws

• Vesting of “Builders Remedy” affordable housing projects that are not required to comply with the City’s General Plan or Zoning regulations

• Lawsuits and associated expenses from individuals, HCD, groups, and/or developers

Analysis:

A. PROJECT PROPOSAL:

The Housing Element is a citywide plan for housing, including the provision of affordable housing, in the City of Huntington Beach. It is one of the seven State mandated elements of the General Plan and is on an eight-year update cycle. Pursuant to California Government Code Section 65588, the Housing Element must be updated for the 6^th Cycle that covers the 2021-2029 planning period. The City’s RHNA is 13,368 units for the 6^th Cycle.

In addition to the Housing Element update, the proposed project consists of several actions to implement Housing Element Programs 2A and 2B, which commit the City to rezoning certain properties and applying an Affordable Housing Overlay to housing sites identified in the Housing Element to meet the City’s Regional Housing Needs Allocation (RHNA) targets. As such, the following legislative amendments are necessary to adopt the Housing Element Update and implement the RHNA programs:

General Plan Amendment No. 21-003 represents the Housing Element Update for the 2021-2029 planning period. (Attachment No. 2)

General Plan Amendment No. 22-001 is a request to amend the Land Use Element of the General Plan to establish an Affordable Housing Overlay. The request also includes an amendment of Figure LU-2 - General Plan Land Use Map to designate certain sites with the Affordable Housing Overlay. (Attachment Nos. 3, 4, and 5)

Zoning Text Amendment No. 22-008 is a request to amend the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) to add Chapter 229 - Affordable Housing Overlay, which establishes land use controls and development standards for projects proposed in the Affordable Housing Overlay areas. (Attachment No. 6 and 8)

Zoning Map Amendment No. 22-002 is a request to add the Affordable Housing Overlay to the Zoning Map and designate various properties with the Affordable Housing Overlay. The primary locations of the Affordable Housing Overlay sites are the Golden West College campus and the Gothard corridor. (Attachment Nos. 6 and 7)

Zoning Text Amendment No. 22-007 is a request to amend the Holly Seacliff Specific Plan (SP9) to establish an Affordable Housing Overlay on existing Industrial properties located on the east side of Goldenwest Street north and south of Garfield Avenue. (Attachment Nos. 11 and 12)

Zoning Text Amendment No. 22-009 is a request to amend the Beach and Edinger Corridors Specific Plan (SP14) to expand the existing Affordable Housing Overlay to sites within the specific plan area that allow residential uses. (Attachment Nos. 9 and 10)

In addition, a Subsequent Environmental Impact Report (SEIR No. 22-002) was prepared to evaluate the potential environmental impacts associated with the Housing Element update and the implementing legislative amendments described above pursuant to the California Environmental Quality Act (CEQA). (Attachment Nos. 1 and 16).

B. BACKGROUND:

State Housing Element Law (Article 10.6 of Chapter 3 of the Government Code) establishes requirements for the content of local agencies’ housing elements in order to ensure that housing issues are adequately and thoroughly addressed. The City has retained a consultant, Kimley Horn and Associates, to assist staff in the preparation of the Housing Element Update in meeting the State’s requirements and ultimately obtaining certification from the California State Department of Housing and Community Development (HCD).

Public Participation

Housing Element law (Government Code 65583(c)(7)) requires that a local government make a diligent effort to engage with all economic segments of the community in the preparation of the Housing Element. The Housing Element Update kicked off in the Spring of 2021 with a series of public workshops and meetings. The City’s Housing Element team conducted extensive public outreach regarding the Housing Element update. Outreach was held in various formats, including multiple virtual public meetings and workshops, small group meetings with local stakeholders, a Spanish Language outreach event, and an online survey. The City also maintained a dedicated webpage as a hub for all items related to the Housing Element Update and provided information regarding the RHNA process. The initial Draft Housing Element was published on the website and included a 60-day public review and comment period. In compliance with AB 215, each subsequent Draft Housing Element was published on the City’s website for seven calendar days and email notifications were sent to interested parties. In addition to the public participation events, the City held one joint Study Session of the Planning Commission and City Council, three Planning Commission Study Sessions, one City Council Study Session, and two Planning Commission public hearings on the Housing Element. The CEQA review process for the Housing Element update entailed preparation of a Subsequent EIR, which also included public outreach and a public review/comment period.

HCD Review and Certification

The California Department of Housing and Community Development (HCD) is tasked with reviewing and certifying Housing Elements pursuant to Housing Element law. The City submitted the first draft Housing Element to HCD in December 2021. HCD then had 60 days to review the draft Housing Element and provide comments regarding the City’s compliance with Housing Element law. The draft Housing Element submitted by the City to HCD on August 1, 2022 was determined to comply with Housing Element law as detailed in a letter from HCD on September 30, 2022. Since the City has made multiple changes to the Housing Element reviewed by HCD, the letter from HCD would no longer apply to the current proposed draft Housing Element. However, the City has had informal discussions with HCD staff who have indicated that the City’s revisions are adequate.

Benefits of HCD Certification

The main benefit of HCD certification is the presumption of a legally adequate Housing Element, particularly in light of expanded enforcement authority granted to HCD through AB72 (2017), which enables HCD to refer non-compliant jurisdictions to the State Attorney General’s Office. If the court finds a city’s Housing Element invalid, the city can potentially face penalties such as a moratorium on all development/building permit issuance, loss of local land use authority, and fines of up to $100,000 per month. One other benefit of certification is eligibility for State funding programs for housing, transportation and infrastructure. In some cases, funding from programs can only be accessed if the jurisdiction has a compliant housing element. In other cases, a compliant housing element helps a jurisdiction receive extra points on a competitive funding application. State funding programs that require a local jurisdiction’s housing element compliance include:

• Infill Infrastructure Grant Program

• Local Housing Trust Fund Program

• Affordable Housing and Sustainable Communities Program

• Permanent Local Housing Allocation Program

• Caltrans Sustainable Communities Grant Program

Lastly, if a City fails to provide adequate sites to meet its RHNA pursuant to Housing Element law, the City would face RHNA carry over to the next planning period. The RHNA carry over would be in addition to any new RHNA units that must be accommodated.

Statutory Timelines

Sixth cycle Housing Elements for the SCAG region were required to be certified by October 15, 2021. Prior to the 6th cycle, jurisdictions had three years to complete rezonings required to accommodate the RHNA. AB 1398 (2021) shortened the rezoning timeframe to one year from the required certification date (October 15, 2022) for any jurisdiction that did not have a certified Housing Element within 120 days of the statutory deadline. Jurisdictions that did not complete the rezonings would be found out of compliance. SCAG jurisdictions opposed the legislation because SCAG adopted the RHNA late, leaving most jurisdictions in a position to face potential legal challenges and penalties until rezonings were completed. SB 197 (2022) extended the rezoning timeframe back to three years, but only for jurisdictions that obtained HCD certification within one year from the statutory deadline (October 15, 2022). The law also states that for any jurisdiction that does not have a certified Housing Element by October 15, 2022, HCD cannot certify their Housing Element until required rezonings are completed. As such, the City prepared the RHNA implementation actions (proposed legislative amendments) for adoption with the Housing Element.

C. OCTOBER 11, 2022 PLANNING COMMISSION MEETING AND RECOMMENDATION

On October 11, 2022, the Planning Commission held a public hearing on Subsequent EIR No. 22-002, General Plan Amendment No. 21 -003, General Plan Amendment No. 22-001, Zoning Map Amendment No. 22-001, Zoning Map Amendment No. 22-002, Zoning Text Amendment No. 22-009, Zoning Text Amendment No. 22-006, Zoning Text Amendment No. 22-007, and Zoning Text Amendment No. 22-008. The Planning Commission also considered Zoning Text Amendment No. 22-006, which proposed an Affordable Housing Overlay (RH - 35 du/ac) within the Ellis Goldenwest Specific Plan (SP7) as described in the Housing Element that HCD determined to be in susbstantial compliance with Housing Element law. There were 27 speakers at the public hearing and four written comments were received. Those in favor cited the need for additional housing and housing affordable to lower income households, the positive impact of a compliant Housing Element on property values, and HCD’s determination of substantial compliance. Those in opposition expressed concerns related to increased traffic, overcrowding at Seacliff Elementary School, adequacy of the EIR, drought conditions, neighborhood compatibility in the Ellis Goldenwest Specific Plan area, crime, and property values.

The Planning Commission asked questions of staff and deliberated the recommended actions. It should be noted that during the meeting, Commissioner Ray attempted to make a straw vote motion that did not proceed. Ray’s straw vote proposed to send a minute action to the City Council to direct the City Attorney’s Office to challenge the City’s RHNA allocation in court. The straw vote motion did not receive a second. Commissioner Ray requested that the record reflect his individual recommendation for the City Council to challenge the RHNA allocation in court.

Commissioner Scandura recommended to add clarifying language changes to certain pages in the Housing Element Update document (Attachment No. 15), which were supported by the Planning Commission. Commissioner Scandura also recommended to update the Housing Element document to send notification of ministerial project approvals to residents within 500 feet of the applicable project site. This change was also supported by the Planning Commission.

On October 11, 2022, the Planning Commission unanimously recommended approval of all items to update the Housing Element and implementation actions with Commissioner Mandic absent for all items and Commissioner Ray voting No on Zoning Text Amendment No. 22-006 (SP 7 RH-Overlay).

D. NOVEMBER 1, 2022 CITY COUNCIL STUDY SESSION

On November 1, 2022, the City Council held a study session on the Housing Element Update and implementation actions. Staff presented an overview of the HCD approved Housing Element Update as well as option to revise the Housing Element to address concerns raised by residents primarily from the Edwards Hill (SP 7) and Seagate (SP 9) neighborhoods, which are located in proximity to identified Housing Element RHNA sites. Staff presented five options to accommodate the RHNA that held varying degrees of challenges related to time, budget, and compliance with Housing Element law site criteria. The study session also included a lengthy public comment period with 25 speakers and six written comments received. The City Council provided feedback to staff regarding removing the SP 7 (Edwards Hill neighborhood) RH-Overlay sites, reducing the density in SP 9 (adjacent to the Seagate neighborhood) and increasing density on the Frontier site. The City Council also provided feedback on further evaluating City-owned property for residential redevelopment in the future.

Based on feedback received from the City Council at the study session, Staff prepared revisions to the Housing Element document and associated implementation programs, which are summarized below.

Revised Housing Element and Implementation Actions

Adequate Sites/RHNA Related Revisions

1. Add the Frontier site to the Affordable Housing Overlay - The Frontier site was included as a Residential Medium High Density (RMH) rezoning site in the HCD approved Housing Element. As a RMH designated property, the site could accommodate 202 dwelling units, although due to the density being less than 30 dwelling units per acre, the site did not accommodate any lower income RHNA units. Shifting this site from RMH to the Affordable Housing Overlay increases the allowable density at the site and provides capacity for 567 units, including 170 lower income units. This revision would result in the removal of the Frontier site from Zoning Map Amendment No. 22-001 and adding it to Zoning Map Amendment No. 22-002. These revisions are reflected in the recommended actions.

2. Delete the RH-Overlay from the Ellis Goldenwest Specific Plan (SP 7) - The RH-Overlay in SP 7 consists of an approximately 18-acre unoccupied area on the west side of Goldenwest Street north of Garfield Avenue. Portions of the area are vacant and much of the area was once occupied by a landscape business. The area accommodated 493 units, including 113 lower income units. Deletion of the RH-Overlay in SP 7 would remove Zoning Text Amendment No. 22-006 from the implementation program. As such, Zoning Text Amendment No. 22-006 is not reflected in the recommended actions.

3. Provide for mixed density in Holly Seacliff Specific Plan (SP 9) Affordable Housing Overlay - The HCD approved Housing Element would apply the proposed Affordable Housing Overlay (with a maximum density of 70 dwelling units per acre) within a portion of the Industrial designated area of SP9. The revision would maintain the SP 9 Affordable Housing Overlay area as currently proposed, but would permit residential developments at maximum density of 35 units per acre in the portion north of Garfield Avenue and 70 units per acre south of Garfield Avenue. It should be noted that two parcels located at the northeast corner of Goldenwest Street and Ernest Drive (Sites 393 and 394 of Appendix B of the Housing Element Update) were removed from the proposed Overlay as part of the November 16, 2022, Planning commission actions and are no longer shown in any Housing Element related exhibits.

Additional Non-RHNA Revisions

4. City-owned sites program - Based on feedback from the City Council during the November 1st study session, Section 4: Housing Plan has been updated to include Program 3C to evaluate city-owned sites for future residential development. The City would commit to evaluating the feasibility of redeveloping the civic center site including development of residential uses. The information would be presented to the City Council in 2023. This revision does not affect the City’s RHNA strategy and the City is not relying on housing units developed on City-owned sites to accommodate the 6^th Cycle RHNA.

5. Removal of Reliable Lumber and Chuck E. Cheese sites from RMH rezoning - Three sites were identified to be rezoned from their existing non-residential designations to Residential Medium High Density (RMH) as part of Zoning Map Amendment No. 22-001: Frontier, Reliable Lumber, and Chuck E. Cheese. The Reliable Lumber and Chuck E. Cheese sites included due to residential projects that would be submitted by the respective property owners soon after the rezoning became effective. The property owners of Reliable Lumber and Chuck E. Cheese recently informed the City they no longer plan to propose the residential development. As such, the City has removed these two sites from Zoning Map Amendment No. 22- 001. Further, Frontier is now considered for inclusion in the proposed Affordable Housing Overlay as described under ZMA No. 22-002 and ZTA No. 22-008. Therefore, none of the three properties are currently under consideration for rezoning and it is no longer necessary for the City Council to take action on Zoning Map Amendment No. 22-001.

E. NOVEMBER 16, 2022 PLANNING COMMISSION MEETING AND RECOMMENDATION

On November 16, 2022, the Planning Commission held a public hearing on the revised Housing Element Update and implementation actions. There were 21 speakers at the public hearing and 72 written comments were received. Those in favor cited the need for additional housing and housing affordable to lower income households, the benefits of a complaint Housing Element, potential consequences of not adopting a compliant Housing Element, and general support for Option 3 (as discussed at the November 1, 2022 City Council study session). Those in opposition expressed concerns about increased traffic, parking issues, neighborhood compatibility, and proximity to existing single-family residential. The Planning Commission asked questions of staff and deliberated the recommended actions. On November 16, 2022, the Planning Commission unanimously recommended approval of the revised Housing Element Update and implementation actions with modifications to remove Sites 393 and 394 from the SP 9 Overlay. Commissioner Mandic was absent.

F. STAFF ANALYSIS AND SUMMARY

The staff report for the October 11, 2022, and November 16, 2022, Planning Commission hearings (Attachment Nos. 18 and 19) provide a detailed description and comprehensive analysis of the proposed project including the Housing Element Update, the SEIR, and associated program implementation actions to accommodate the RHNA. This analysis focuses only on the revised Housing Element and implementation actions. The recommended actions incorporate the proposed revisions as recommended for approval by the Planning Commission.

Regional Housing Needs Assessment (RHNA)

State Housing Element Law requires that each city and county develop local housing programs to meet its share of existing and future housing needs for all income groups, as determined by the jurisdiction’s Council of Governments. In the southern California region, the agency responsible for assigning the regional housing needs to each jurisdiction is the Southern California Association of Governments (SCAG). Each SCAG jurisdiction’s RHNA is determined based on projected need (household growth, future vacancy need, and housing replacement need), existing need (transit and job accessibility), and a social equity adjustment including additional adjustments for areas that are designated as high resource. SCAG has determined that Huntington Beach has a regional housing need (RHNA) of 13,368 units for the 2021-2029 planning period, which is the sixth housing element cycle. The table below provides a breakdown of the RHNA allocation by various household income categories.

TABLE 1: City of Huntington Beach RHNA Allocation

Income Level	Percent of AMI* (Area Median Income)	Number of Units	Percentage of Units
Very Low (includes Extremely Low)	0-50%	3,661	27%
Low	51-80%	2,184	16%
Moderate	81-120%	2,308	17%
Above Moderate	>120%	5,215	39%
Total		13,368	100%
*2022 Orange County AMI = $119,100

State law requires local governments to demonstrate through zoning that the RHNA can be accommodated for every income level. RHNA is not a construction mandate. However, State law requires every jurisdiction to show that it has capacity to accommodate its RHNA through zoning capacity. With the proposed revisions to the Housing Element and implementation actions, the City is able to accommodate the full RHNA requirement with a substantial buffer. Table 2 reflects the RHNA strategy with the Housing Element revisions.

Table 2: Revised RHNA Strategy

	Very Low	Low	Moderate	Above Moderate	Total
RHNA Target	3,661	2,184	2,308	5,215	13,368
Approved/Pending Projects	17	285	82	1,371	1,755
ADU	307		170	10	487
Hotel/Motel Conversion	415		0	0	415
Affordable Housing Overlays**	5,420		2,581	9,541	17,542
Total	6,444		2,833	10,922	20,199
RHNA MET?	YES		YES	YES	YES
**removes SP7 Overlay, reduces density of proposed SP9 Overlay north of Garfield (AHO-70 Overlay), removes identified sites nos. 393 and 394; all RMH rezoning sites have been removed (Chuck E. Cheese and Reliable Lumber were deleted entirely, Frontier is moved to the AHO)

Frontier Site (Zoning Map Amendment No. 22-002)

The addition of the Frontier site to the Affordable Housing Overlay (in conjunction with the removal of the SP 7 Overlay) would accommodate dwelling units in all income categories and make up for the removal of the SP 7 RH-Overlay. The site is currently designated Industrial and is occupied by Frontier for primarily storage, vehicle maintenance and offices. A large portion of the site is undeveloped without permanent structures. The site is underutilized with a low existing floor area ratio (FAR). The site is in close proximity to high-performing schools, jobs, services, and daily needs along the adjacent Gothard Street corridor and nearby Beach Boulevard. Access to these types of resources will contribute to upward economic mobility. The Frontier site is also adjacent to Huntington Central Park, Central Library, and Senior Center. Proximity to these community resources and facilities would improve access for lower income households, and promote healthy lifestyles and the City’s affirmatively furthering fair housing goals. In addition, the site has vehicular access to two primary arterial streets, Slater Avenue and Gothard Street. The property has over 1,000 feet of street frontage along Slater Ave. The wide frontage makes the property uniquely ideal for a lot split or multiple lot splits to potentially tailor a site for competitive funding to develop a 100 percent affordable project. It also allows for construction of a variety of multi-family residential product types, which would be permitted pursuant to the Affordable Housing Overlay. The site directly abuts Central Park on two sides, the south and the west. East of the site, across Gothard Avenue, is developed with Industrial land uses. The site is only bordered by single-family residential on one side, across Slater Avenue. Although it is currently developed and occupied as a yard for Frontier, there has been a lot of development interest in the site, particularly over the past five years.

Holly Seacliff Specific Plan Mixed Density Affordable Housing Overlay (Zoning Text Amendment No. 22-007)

The revisions to the proposed Affordable Housing Overlay in the Holly Seacliff Specific Plan (SP 9) divide the Overlay into two areas. Area A would allow a maximum density of 35 dwelling units per acre and apply the City’s existing RH development standards. Area B would allow a maximum density of 70 dwelling units per acre similar to the other areas of the proposed Affordable Housing Overlay (except the Beach and Edinger Corridors Specific Plan). The proposed development standards in Zoning Text Amendment No. 22-008 (Chapter 229 of the HBZSO) would apply in Area B. While the revisions to allow for a mixed density in SP 9 would result in a decrease in overall capacity, both areas would still accommodate lower income units and help to accommodate the RHNA in all income categories. The reduction in density in Area A and overall decrease in capacity address residents’ concerns related to the number of units that would be allowed in the area as well as concerns related to the higher densities allowable across Ernest Drive. The revisions to ZTA No. 22-007 also incorporate the removal of the northeast corner of Goldenwest Street and Ernest Drive, as recommended by the Planning Commission.

Summary

The 2021-2029 Housing Element Update in conjunction with the proposed program implementation actions to accommodate the City’s RHNA adequately addresses housing needs in the City of Huntington Beach and complies with State requirements. It identifies appropriate programs to assist the City in meeting its housing goals, objectives and policies. Staff and the Planning Commission recommend approval of the updated Housing Element and proposed legislative amendments for the following reasons:

• The updated Housing Element and proposed legislative amendments are consistent with the General Plan and State law requirements.

• The Housing Element identifies specific programs to address the community’s housing needs, including provision of adequate sites, removal of governmental constraints, the preservation and development of affordable housing, equal housing opportunity, healthy and sustainable housing, solutions for people experiencing or at risk of homelessness, promoting place making, and affirmatively furthering fair housing.

• The Housing Element and legislative amendments will enable the City to obtain certification from HCD and maintain eligibility for funding programs for housing, transportation and infrastructure.

• SEIR No. 22-002 has been prepared in accordance with the California Environmental Quality Act (CEQA), adequately addresses the environmental impacts of the Housing Element Update and associated General Plan, Zoning Text and Zoning Map amendments, and identifies project alternatives and mitigation measures to lessen the project’s impacts.

Environmental Status:

A Subsequent EIR (SEIR) was prepared for the project (Attachment No. 16). The SEIR is a tiered analysis document utilizing the City’s General Plan Update Program EIR (August 2017) as a baseline. Pursuant to State CEQA Guidelines §15162(3)(A) and (B), the SEIR evaluates potential environmental impacts associated with adoption and implementation of the Housing Element Update. The SEIR concludes that the Project would result in significant and unavoidable impacts concerning air quality, greenhouse gases, hydrology and water quality, noise, and utilities and services systems. The SEIR was available for a 45-day public review period from June 29 to August 19, 2022. The final EIR includes responses to comments received.

The proposed changes to the HEU resulting from the City Council’s direction to remove candidate housing sites from SP7, reduce the overall permitted density in SP9, increase density on the Frontier site, and the Planning Commission’s recommendation to remove Sites No. 393 and 394, would redistribute density within the project area while remaining consistent with the total density proposed as part of the HEU and the total density analyzed in the SEIR. In addition, the revised site capacity does not exceed the overall capacity analyzed in the SEIR. The proposed changes are consistent with the existing analysis and conclusions in the SEIR. As such, the proposed changes would not result in a new significant environmental impact, a “significant increase” in the severity of an environmental impact for which mitigation is not proposed, or a new feasible alternative or mitigation measure that would lessen the significant environmental impacts of the project, nor do the changes reflect a “fundamentally flawed” or “conclusory” SEIR. As such, the SEIR is not subject to recirculation prior to certification pursuant to Section 15088.5 of the State CEQA Guidelines.

Statement of Overriding Considerations

Section 15093 of the CEQA guidelines requires the decision-making agency to balance, as applicable, the economic, legal, social, technological, or other benefits of a proposed project against its unavoidable environmental risks when determining whether to approve the project. If the specific economic, legal, social, technological, or other benefits of a proposed project outweigh the unavoidable adverse environmental effects, the adverse environmental effects may be considered “acceptable.” When the lead agency approves a project that will result in the occurrence of significant effects, which are identified in the Final EIR but are not avoided or substantially lessened, the agency shall state in writing the specific reason to support its actions based on the Final EIR and/or other information in the record. The statement of overriding considerations shall be supported by substantial evidence in the record.

The City of Huntington Beach proposes to adopt a Statement of Overriding Considerations regarding the significant air quality, greenhouse gas, hydrology and water quality, noise, and utilities/water supply impacts of the Project. The City has evaluated all feasible mitigation measures and potential changes to the Project with respect to reducing the impacts that have been identified as significant and unavoidable. Specific economic, social, or other considerations outweigh the significant and unavoidable impacts stated above. The reasons for proceeding with the proposed project, notwithstanding the identified significant and unavoidable impacts, are described below.

Proposed Project Benefits

1) The HEU would facilitate the development of a wide range of housing types in sufficient supply to meet the needs of current and future residents, particularly for persons with specific needs, including but not limited to extremely low, very low, and lower income households; seniors; persons with disabilities; large households; single-parent households; people experiencing homelessness or at risk of homelessness; and farmworkers.

2) The HEU would increase the supply of affordable housing in high opportunity/resource areas, including areas with access to employment opportunities, community facilities and services, and amenities.

3) The HEU would provide a comprehensive system of support and would expand housing options aimed to prevent and end homelessness.

4) The HEU would reduce constraints to the development of housing, including affordable housing, through programs that allow ministerial approval processes, permit ready plans for Accessory Dwelling Units, a review and update of the City’s small lot ordinance, and housing overlays in nonresidential areas.

5) The HEU would address planning and monitoring goals for long-term affordability of adequate housing.

6) The HEU would facilitate the development of an accessible housing supply for all persons without discrimination in accordance with State and federal fair housing laws. The HEU would enhance existing lower resource neighborhoods by promoting livable, healthy, and safe housing for all residents.

7) The HEU provides a plan for meeting the City’s RHNA goals and to affirmatively further fair housing, which substantially complies with State law, thereby enabling the City to achieve certification of the HEU through the California Department of Housing and Community Development. Certification of the HEU would also enable the City to maintain eligibility for funding programs tied to a compliant HEU.

8) The HEU would allow the City of to revitalize commercial corridors and older industrial areas by allowing for additional housing opportunities in the City while maintaining the character of existing, long-established single-family residential neighborhoods in the City. Consistent with General Plan Implementation Program LU-P.14, the Affordable Housing Overlay allows for housing within the Research and Technology zoned areas, which establishes housing opportunities for employees of business in these areas. The provisions of the Affordable Housing Overlay ensure that potential conflicts between residential and non-residential uses in these areas would be minimized. The City would continue to ensure that all standards for building design, streetscape design, and landscaping would be adhered to and would review development proposals to ensure consistency with the character and visual appearance of the surrounding neighborhood.

9) The HEU would encourage future housing developments to better integrate with alternative modes of traditional transport because over half of the candidate housing sites identified in the HEU are located along High Quality Transit Areas. New development would also be encouraged to promote and support public transit and alternative modes of transportation by incorporating bus turnouts and shaded bus stops (where appropriate) and providing enhanced pedestrian and bicycle facilities.

10) With more organized development and guided use of existing resources, such potential impacts to water supply can be monitored and improved for the health and benefit of residents. Further, parklands and open spaces can be protected and retained in place throughout the planning horizon to provide recreational benefits to residents, visitors and school aged students. A shift toward sustainable resources and self-sufficiency, as outlined in the HEU, will allow for the continuation of the valued way of life within the City of Huntington Beach throughout the planning horizon. For example, future projects would be required to comply with General Plan Goal ERC-15 and Policies ERC-15.A and ERC-15.B, which aim to maintain an adequate supply of water and distribution facilities capable of meeting existing and future water supply needs and require monitoring to reduce impacts to the water system in an effort to maintain and expand water supply and distribution facilities.

Strategic Plan Goal:

Economic Development & Housing

Attachment(s):

1. City Council Resolution No. 2022-63 for Subsequent EIR No. 22-002 with Findings of Fact and Statement of Overriding Considerations

2. City Council Resolution No. 2022-62 for General Plan Amendment No. 21-003 (Housing Element Update)

3. City Council Resolution No. 2022-78 for General Plan Amendment No. 22-001 (General Plan Land Use Element)

4. Legislative Draft Land Use Element changes - General Plan Amendment No. 22-001 (Affordable Housing Overlay)

5. Proposed General Plan Land Use Map - Figure LU-2 - General Plan Amendment No. 22-001 (Affordable Housing Overlay)

6. Suggested Findings of Approval for Zoning Text Amendment No. 22-008/ Zoning Map Amendment No. 22-002 (Chapter 229 Affordable Housing Overlay HBZSO)

7. City Council Ordinance No. 4269 for Zoning Map Amendment No. 22-002 (Affordable Housing Overlay)

8. City Council Ordinance No. 4272 and Legislative Draft for Zoning Text Amendment No. 22-008 (Chapter 229 Affordable Housing Overlay HBZSO)

9. Suggested Findings of Approval for Zoning Text Amendment No. 22-009 (BECSP Affordable Housing Overlay)

10. City Council Resolution No. 2022-59 and Legislative Draft for Zoning Text Amendment No. 22-009 (BECSP Affordable Housing Overlay)

11. Suggested Findings of Approval for Zoning Text Amendment No. 22-007 (Holly Seacliff Specific Plan Affordable Housing Overlay)

12. City Council Ordinance No. 4271 and Legislative Draft for Zoning Text Amendment No. 22-007 (Holly Seacliff Specific Plan Affordable Housing Overlay)

13. Housing Element Appendix B - Adequate Sites Analysis

14. Housing Element Sites Map

15. Draft 6th Cycle Housing Element Update available at <https://www.huntingtonbeachca.gov/housing-element-update/public-review-draft-housing-