CITY OF ENCINITAS CITY COUNCIL AGENDA REPORT Meeting Date: July 17, 2013

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1 CITY OF ENCINITAS CITY COUNCIL AGENDA REPORT Meeting Date: July 17, 2013 TO: VIA: FROM: Mayor and City Council Gus Vina, City Manager Planning and Building Department Jeff Murphy, Director Diane S. Langager, Principal Planner Mike Strong, Associate Planner SUBJECT: The City of Encinitas Housing Element Update: A presentation and discussion on the City s housing unit allocations for the 5 th cycle of the 2013 to 2020 planning period, statuary deadlines, Restart findings and recommended next steps for Council direction. BACKGROUND AND DISCUSSION: A. Housing Element Purpose The provisions of affordable housing in California, and the San Diego area in particular, have been a challenge during both economic boom and bust years. High demand for housing often pushes prices out of reach for low and moderate income households. During the economic recession (precipitated by the housing and financial bubble), housing prices have dropped, but lack of jobs and tightening of the credit market have equally denied these households adequate housing opportunities. Local and state governments have a responsibility to facilitate the improvement, preservation, and development of housing. In carrying out this need each local government must consider community goals set forth in General Plans, which contribute to the region s housing requirements. To assure counties and cities establish and attain these goals, the state requires that local governments prepare, implement an update their Housing Element. The content and process by which a Housing Element is prepared is prescribed in state law, which requires local governments to adequately plan for existing and projected housing needs of all economic segments of the City. The element addresses in greater detail, the identification and analysis of existing and projected housing needs and a statement of goals, policies, programs strategies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement and development of housing. t/adv plng/gp comp update/cc /CC report HE Update 1 07/17/2013 Item #09 Page 1

2 Over the years, the City has implemented a number of valuable Iris Apartments programs that have assisted low income families (i.e. Community Development Block Grants and Section 8 financing programs) as well as approved low income rental housing projects such as the Iris Apartments. However, with a changing demographic and aging population, it is becoming even more important to properly plan and provide for affordable housing for all income levels. B. Housing Element Housing Units & Capacity Generally speaking, the State Department of Finance defines and allocates a region s share of the anticipated statewide housing needs based on the regional population forecasts used in preparing Regional Transportation Plans (RTP), vacancy rates, and persons per household among other factors. These housing unit allocations are referred to as the Regional Housing Needs Assessment (RHNA). The final RHNA plan (Exhibit CC-2 ) for the City and other jurisdictions within San Diego County was adopted by the San Diego Association of Governments (SANDAG) Board of Directors on October 28, 2011, and covers the 2013 to 2020 Housing Element planning period. This planning period is commonly known as the 5 th Housing Element Cycle. The RHNA allocations (housing units) for Encinitas for the 5 th Cycle are as follows: Total Allocation Very Low Low Moderate Above Moderate 2, The RHNA for the 5 th Cycle is final and the City cannot negotiate to lower these numbers. However, the City can look at its current General Plan, as well as its other existing land use programs and policies, to determine how much of the RHNA can be accounted for without needing to change these plans. Below are the City s RHNA allocations and the sites/planned capacity that staff anticipates that we can take credit for without any plan/policy amendments or rezones. These numbers are based on verbal discussions with the State Department of Housing and Community Development (HCD), who is responsible for review and certification of the City s Housing Element Update. t/adv plng/gp comp update/cc /CC report HE Update 2 07/17/2013 Item #09 Page 2

3 RHNA Income Level HE Cycle Available Sites 2 (Current GP) New Construction ( ) Possible Accessory Units (2 nd DU) Units Remaining Low / Very Low 1, Moderate RHNA Satisfied Above Moderate 907 1, RHNA Satisfied 1 Includes a 250 unit carry-over penalty from the previous planning period, effective April Based on analysis conducted prior to Proposition A implementation. As reflected in the chart, the City s current General Plan can accommodate some, but not all of the allocated low and very low housing units the City s plan is roughly 853 units short of the goal and rezoning will be required to accommodate these units. However, staff continues to work with HCD in an effort to find other opportunities that will help minimize the need for unnecessary rezoning. Items of discussion include the following: Securing more credit for the City s mixed-use zones in key areas rather than the HCD standard practice of 50% credit of the planned density; Obtain credit for R-25 land use classification as an affordable housing category rather than the HCD standard practice of R-30, based on market data and recent project experience; and, Change assumptions and regulations and provide incentives to increase productivity of accessory units (2 nd dwelling units) by 25%. While we may find agreements that will further reduce our obligations, our current General Plan simply does not have the capacity to capture ALL of our RHNA numbers a certain level of rezoning will be required. Of course, as we further assess the ramifications of Proposition A, such as the densities that can be accomplished based on the 30 foot and two story height limit and/or constraints to housing development, the available capacity may be reduced. In other words, Prop A will likely impact our ability to take credit for the low/very low (345) and a portion of the moderate (497) units that are available under our current General Plan. C. Housing Element Deadlines and Penalties Deadlines and penalties for Housing Element Updates are defined in State law and coordinated by HCD. The penalties occur at different times, and for different reasons, which make the timeline complicated. There are three main legislative bills that establish the most recent and significant deadlines: Senate Bill 575; Senate Bill 375; and Assembly Bill Below is a summary of each, with a more detailed background provided in Exhibit CC-3 and the full text of the legislative bills provided in Exhibit CC-4. t/adv plng/gp comp update/cc /CC report HE Update 3 07/17/2013 Item #09 Page 3

4 1. SB 575/375 Update Due Date A jurisdiction s Housing Element Update must be reviewed and certified by HCD within 18 months following the SANDAG Board s adoption of the Regional Transportation Plan (RTP). The RTP was completed in October 2011, which established an HCD certification date for the City s Housing Element Update of April 30, The law provides, however, a 120-day grace period, which extends the date to the end of August The law does not provide for an extension of this deadline. 2. SB 375 Builder s Remedy The senate bill includes an additional penalty for when a jurisdiction fails to complete the rezoning of sites identified for residential development as part of meeting RHNA. Under the bill, if a private development project proposes units where at least 49% qualify for very low to moderate income levels, the City cannot disapprove the project when the units are located on a site listed for rezoning in an adopted Housing Element. This penalty is effective three years following the April 30 th due date (April 2016). 3. AB 1233 Carry Over Penalty This Assembly Bill introduced a penalty where the RHNA numbers carry over to the next planning cycle when a jurisdiction fails to get its Housing Element Update timely certified by HCD. This penalty is effective 30 months after the 2019 RTP adoption. However, according to HCD staff, this penalty does not get enforced so long as the HCD certifies a jurisdiction s Housing Element Update prior to the effective date of the penalty roll-over. D. Housing Element Restart As part of the General Plan Restart effort, in March 2012 the City Council directed that a housing exercise be provided to the General Plan Advisory Committee (GPAC); the Element Review Advisory Committee (ERAC); and the Planning Commission (PC); as well as the community through a series of public workshops. The purpose of the housing exercise(s) was to engage in a dialogue with different groups, get feedback on the opportunities and constraints facing the City, and to consider the appropriate location of higher density housing and ways in which to accomplish it in compliance with State and regional requirements. 1. Restart Approach The ERAC, GPAC and Planning Commission (PC) worked independently to identify where future housing development may be located and developed methodologies on t/adv plng/gp comp update/cc /CC report HE Update 4 07/17/2013 Item #09 Page 4

5 how to distribute multi-family housing in the city. The applied strategies and policy recommendations that each group developed were incorporated into a series of Housing Policy Reports, representing each group s feedback to City Council. The results set forth in the Housing Policy Reports were presented individually by a representative(s) of each group to City Council in February 2013; said reports are available for review as Exhibit CC-5. An extended public outreach effort was also included as part of the General Plan restart, where the public was asked to consider the appropriate location of higher density housing within the community. This included an extensive educational/question and answer program at five open houses (one in each community), which highlighted Housing Element law requirements and issues associated with addressing regional housing needs. Two public workshops were held, which provided an opportunity for public input through a mapping exercise and tools to accomplish housing survey, similar to those conducted by the GPAC, ERAC and PC. The workshop exercise/survey allowed participants to identify where and how they think appropriate land use changes should occur in order to accommodate housing. The results of the public workshops were presented to Council on September 19, 2012 by the General Plan Restart Facilitator Peder Norby; and were included in the meeting agenda report, which is included as Exhibit CC-6 for review. 2. Restart Involvement/Participation The work of the GPAC, ERAC and PC as well as the public open houses and citywide workshops were well attended and the level of participation was significant. A total of 374 people signed in at the open house events and a total of 584 folks signed in at the citywide workshops. Please note that some people attended and chose not to sign in. Overall, as part of the Council Directed restart, a total of 30 meetings were conducted, consisting of over 60 hours of interaction with stakeholders and community members (this does not account for the make-up sessions conducted at City Hall). 3. Restart Collective Findings Public Workshop Following the presentations of the restart results, staff analyzed the documents to try to find commonalities or areas of agreement. What was found was that there are a variety of tools that can be utilized to plan for affordable housing sites; some of the most commonly agreed upon strategies/tools are noted below. t/adv plng/gp comp update/cc /CC report HE Update 5 07/17/2013 Item #09 Page 5

6 Near transit centers Near commercial areas Utilize mixed-use Context sensitive locations There was also general agreement that the allocation of affordable housing units should NOT be placed in any single community, but distributed so that each community takes a reasonable share. The dispersal percentages for each community, based on the results of the mapping exercises described in the Housing Policy Reports, are shown below. Restart Average Dispersed Approach Coincidently, these findings are consistent with Housing Element Policy 1.4 of the current Housing Element, which requires that low and moderate-income households not be concentrated in any single community or single area of the City. The City of Encinitas existing General Plan, through a number of goals and policies in the Land Use Element and the Housing Element, includes other relevant policies on this subject, including those listed below. The full text of the referenced Goals and Policies are included herein as Exhibit CC-7 Provide a balance of housing, Provide housing opportunities for all segments of society, Provide a wide range of housing by location, type of unit, and price to meet the existing and future housing needs in the region and city, Provide sound housing in the City for all persons regardless of income level. t/adv plng/gp comp update/cc /CC report HE Update 6 07/17/2013 Item #09 Page 6

7 RECOMMENDATION: A. Direct staff to continue to work with State HCD; B. Affirm that a general dispersed approach is the appropriate methodology for affordable housing unit distribution; and, C. Direct staff to return to the City Council by September with the following: 1. A presentation on the areas of agreement in the Housing Policy Reports relative to site identification strategies. 2. Preparation of Housing Element draft rezone maps (target three map options per community) based on the site identification strategies. 3. A draft community outreach plan where the strategies and mapping options will be vetted with the five distinct communities, with the goal of developing and refining individual community endorsed land use maps that provide a planned capacity in conformance with Encinitas RHNA allocations. t/adv plng/gp comp update/cc /CC report HE Update 7 07/17/2013 Item #09 Page 7

8 ATTACHMENTS: Exhibit CC-1 PowerPoint Presentation Exhibit CC-2 * Regional Housing Needs Assessment Plan Fifth Housing Element Cycle Planning for Housing in the San Diego Region Exhibit CC-3 Housing Element Update deadlines and penalties as set forth in SB 375 and 575 and AB1233 Exhibit CC-4 * Full text of legislative bills: SB SB575 AB Exhibit CC-5 * GPAC Housing Policy Report ERAC Housing Policy Report PC Housing Policy Report Exhibit CC-6 * Council Agenda Report for the September 19, 2012 meeting re: city-wide workshop results Exhibit CC-7 Full text of Land Use Element Goal 1 and Policy 3.2, and Housing Element Goals 1 and 2 and Policy 1.4 *Due to its significant size, the document(s) is not included as a hard copy, but is available at the referenced link. t/adv plng/gp comp update/cc /CC report HE Update 8 07/17/2013 Item #09 Page 8

9 EXHIBIT CC-1 POWERPOINT PRESENTATION FOR THE JULY 17, 2013 CITY COUNCIL MEETING REGARDING THE HOUSING ELEMENT UPDATE t/adv plng/gp comp update/cc /CC report HE Update 9 07/17/2013 Item #09 Page 9

10 ITEM # JULY 17, 2013 CITY COUNCIL HEARING Housing Element Update Presentation, Discussion & Direction 07/17/2013 Item #09 Page 10

11 HOUSING ELEMENT UPDATE Quick Background Establishes policies & programs for the preservation, improvement and development of housing for all income levels. One of seven mandated elements of the General Plan The only element with statutory update requirements Requires that each jurisdiction update their Housing Element and identify and rezone sites to accommodate housing 2 07/17/2013 Item #09 Page 11

12 PRESENTATION OUTLINE A.Housing Deadlines & Numbers 1. State Deadlines 2. RHNA housing numbers 3. Discussions with HCD B.Housing Element Restart 1. Council direction 2. Approach to the restart 3. Group Results Areas of agreement C.Next Steps 3 07/17/2013 Item #09 Page 12

13 Housing Deadlines & Numbers THE DEADLINES, RHNA NUMBERS AND HCD DISCUSSIONS 4 07/17/2013 Item #09 Page 13

14 HOUSING NUMBERS & DEADLINES State Deadlines Defined by State Housing Element Law Coordinated with State HCD Overview of the more recent and significant bills establishing deadlines Senate Bill 575 Senate Bill 375 Assembly Bill /17/2013 Item #09 Page 14

15 HOUSING NUMBERS & DEADLINES State Deadlines SB 375/575 Housing Element (HE) updated 18 months following SANDAG s adoption of the RTP and RHNA Adopted in October 2011, state law requires the City to adopt HE by April 30, 2013 Grants a 120 day grace period, which pushes the date (rounded) to August 30, /17/2013 Item #09 Page 15

16 HOUSING NUMBERS & DEADLINES State Deadlines SB 375/575 NOT on target to meet this date Currently lack Agreed upon housing distribution methodology Identification/analysis of housing sites Environmental analysis 7 07/17/2013 Item #09 Page 16

17 HOUSING NUMBERS & DEADLINES State Deadlines SB 375/575 Failure to comply 4-year update/reporting cycle instead of 8-year Could impede City s ability to be competitive for grants Risk of litigation (Loss of land use control) 8 07/17/2013 Item #09 Page 17

18 HOUSING NUMBERS & DEADLINES State Deadlines SB 375/575 Failure to comply 4-year update/reporting cycle instead of 8-year Could impede City s ability to be competitive for grants Risk of litigation (Loss of land use control) City has been out of compliance for several years 9 07/17/2013 Item #09 Page 18

19 HOUSING NUMBERS & DEADLINES State Deadlines SB 375 The Builders Remedy If at least 49% of the proposed units are very low to moderate, City cannot disapprove a project when it is on a site listed for rezoning Action to compel City to complete zoning change Effective 3 years (plus 120 days) following the April 30 th due date (August 2016) 10 07/17/2013 Item #09 Page 19

20 HOUSING NUMBERS & DEADLINES State Deadlines AB 1233 Roll-Over Penalty Housing numbers carry over to the next cycle when the City fails to implement to an adopted HE or provide the required zoning to accommodate lower-income households 18 months after next RTP adoption, plus 12 months into the next planning period RTP adoption for 6 th Cycle anticipated in mid-late /17/2013 Item #09 Page 20

21 HOUSING NUMBERS & DEADLINES The Housing Numbers RHNA Income Category & Density (DEFAULT) Income Category Units Per Acres Very Low Low Moderate Above Moderate 30 Dwelling Units/Acre 30 Dwelling Units/Acre Dwelling Units/Acre Less than 15 Dwelling Units/Acre State Housing law equates density with affordability Based on supporting evidence, a City may negotiate density in relation to income category 12 07/17/2013 Item #09 Page 21

22 HOUSING NUMBERS & DEADLINES The Housing Numbers It is important to properly plan for housing for all levels of income Jurisdiction needs only to show that sites are available City is not obligated to build affordable housing In all zones that allow multi-family use, the City has approved less than 250 units since /17/2013 Item #09 Page 22

23 HOUSING NUMBERS & DEADLINES The Housing Numbers Regional Housing Needs Assessment - Allocation RHNA Income Levels HE Cycle Very Low / Low 1,283* Moderate 413 Above Moderate 907 * Includes 2003/2010 Roll-over penalty of 250 Effective August /17/2013 Item #09 Page 23

24 HOUSING NUMBERS & DEADLINES The Housing Numbers Regional Housing Needs Assessment Current GP RHNA Income Level HE Cycle Available Units (current GP) Difference Very Low / Low 1, Moderate RHNA Satisfied Above Moderate 907 1,300 RHNA Satisfied 15 07/17/2013 Item #09 Page 24

25 HOUSING NUMBERS & DEADLINES The Housing Numbers Regional Housing Needs Assessment New Const. RHNA Income Level HE Cycle New Const Difference Very Low / Low Moderate Above Moderate RHNA Satisfied RHNA Satisfied RHNA Satisfied RHNA Satisfied RHNA Satisfied RHNA Satisfied * A jurisdiction may take RHNA credit for new units approved, permitted, and/or built since the start date of the RHNA projection period /17/2013 Item #09 Page 25

26 HOUSING NUMBERS & DEADLINES The Housing Numbers Regional Housing Needs Assessment 2 nd DUs RHNA Income Level Previous Production/Yr Ability to Provide 2DUs Difference Very Low / Low 3.6* Moderate Above Moderate RHNA Satisfied RHNA Satisfied RHNA Satisfied RHNA Satisfied RHNA Satisfied RHNA Satisfied * The City produced roughly 19 units/year from Of these, 19.5% were rented out at VL/L income levels and 6% were rented at moderate /17/2013 Item #09 Page 26

27 HOUSING NUMBERS & DEADLINES The Housing Numbers Regional Housing Needs Assessment - Allocation RHNA Income Levels HE Cycle Very Low / Low 853 Moderate RHNA Satisfied Above Moderate RHNA Satisfied 18 07/17/2013 Item #09 Page 27

28 HOUSING NUMBERS & DEADLINES The Housing Numbers Continuing discussions with State HCD to minimize the need for rezone 50% v. 75% mixed-use credit. Try to obtain more (75%) density credit for mixed-use residential R-30 versus R-25. Try to get credit for R-25 land use classification based on market data, financial feasibility, recent project experience Accessory Units. Change assumptions to increase productivity by 25% 19 07/17/2013 Item #09 Page 28

29 Housing Element Restart Results THE PARTNERS, THE APPROACH AND THE AREAS OF AGREEMENT 20 07/17/2013 Item #09 Page 29

30 HOUSING EXERCISE RESULTS City Council Direction DATE December 14, 2011 January 18, 2012 March 7, 2012 September 19, 2012 February 2013 ACTION Initial General Plan outreach revamp Element Review Advisory Committee formed Restart directed, with mapping exercises Citywide workshop results presented Housing Policy Reports (Planning Commission, GPAC, and ERAC) 21 07/17/2013 Item #09 Page 30

31 HOUSING EXERCISE RESULTS The Partners - Representatives Facilitator Mr. Peder Norby ERAC Element Review Advisory Committee (ERAC) Mr. Ruben Flores-Saaib and Mr. Robert Bohrer GPAC General Plan Advisory Committee (GPAC) Mr. Lee Vance PC Planning Commission (PC) Mr. Kurt Groseclose 22 07/17/2013 Item #09 Page 31

32 HOUSING EXERCISE RESULTS Meeting Dates/Attendance Restart Effort Total # of meetings: 30 Total # of hours: 60* Total # of open house participants: 374 Total # of workshop participants: 584 * Hour total does not include staff coordination, preparation, follow-up, or staff time at make up sessions 23 07/17/2013 Item #09 Page 32

33 HOUSING EXERCISE RESULTS Areas of Agreement GPAC Citywide Survey PC ERAC 24 07/17/2013 Item #09 Page 33

34 HOUSING EXERCISE RESULTS Areas of Agreement TOOLS SURVEY STRATEGIES Citywide Survey GPAC New homes should be located in Context sensitive locations Near transit services PC Near commercial services Mixed-use/residential ERAC 25 07/17/2013 Item #09 Page 34

35 HOUSING EXERCISE RESULTS Areas of Agreement Citywide Survey GPAC Allocation of affordable housing units should not be placed in any single community Each community should take a reasonable share PC ERAC 26 07/17/2013 Item #09 Page 35

36 HOUSING EXERCISE RESULTS Areas of Agreement New Encinitas GPAC 26.6% ERAC 16.5% mean = 23.65% PC 25.0% median = 25.75% Citywide Workshop 26.5% 27 07/17/2013 Item #09 Page 36

37 HOUSING EXERCISE RESULTS Areas of Agreement Old Encinitas GPAC 26.0% ERAC 24.9% mean = 22.63% PC 25.0% median = 24.95% Citywide Workshop 14.6% 28 07/17/2013 Item #09 Page 37

38 HOUSING EXERCISE RESULTS Areas of Agreement Leucadia GPAC 22.6% ERAC 27.2% mean = 23.10% PC 22.5% median = 22.55% Citywide Workshop 20.1% 29 07/17/2013 Item #09 Page 38

39 HOUSING EXERCISE RESULTS Areas of Agreement Cardiff by the Sea GPAC 14.6% ERAC 18.8% mean = 14.90% PC 15.0% median = 14.80% Citywide Workshop 11.2% 30 07/17/2013 Item #09 Page 39

40 HOUSING EXERCISE RESULTS Areas of Agreement Olivenhain GPAC 10.0% ERAC 12.4% mean = 15.60% PC 12.5% median = 11.25% Citywide Workshop 27.5% 31 07/17/2013 Item #09 Page 40

41 HOUSING EXERCISE RESULTS Areas of Agreement Resulting Potential Distribution Cardiff 15% 23% Old Encinitas RESTART FINDINGS Leucadia 23% 15% Olivenhain 24% New Encinitas 32 07/17/2013 Item #09 Page 41

42 HOUSING EXERCISE RESULTS Areas of Agreement Resulting Potential Distribution Olivenhain 0% Leucadia 0% 13% Cardiff ORIGINAL DRAFT PLAN New Encinitas 64% 23% Old Encinitas 33 07/17/2013 Item #09 Page 42

43 HOUSING EXERCISE RESULTS Areas of Agreement Resulting Potential Distribution Cardiff 15% 23% Old Encinitas RESTART FINDINGS Leucadia 23% 15% Olivenhain 24% New Encinitas 34 07/17/2013 Item #09 Page 43

44 Next Steps COUNCIL DIRECTION ON THE NEXT STEPS 35 07/17/2013 Item #09 Page 44

45 NEXT STEPS Recommendations Direct staff to continue to work with State HCD 36 07/17/2013 Item #09 Page 45

46 NEXT STEPS Recommendations Direct staff to continue to work with State HCD Affirm that a general dispersed approach is the appropriate methodology for housing distribution 37 07/17/2013 Item #09 Page 46

47 NEXT STEPS Recommendations Direct staff to continue to work with State HCD Affirm that a dispersed approach is the appropriate methodology for housing distribution Direct staff to return to the Council by late September with the following Presentation on the areas of agreement between ERAC, GPAC, PC & Citywide study on site identification strategies Three HE site map options for each community based on the distribution and mapping strategies A proposed community outreach effort to discuss the strategies and mapping options in an effort to develop a single community endorsed plan 07/17/2013 Item #09 Page 47 38

48 ITEM # JULY 17, 2013 CITY COUNCIL HEARING Housing Element Update Presentation, Discussion & Direction 07/17/2013 Item #09 Page 48

49 EXHIBIT CC-2 REGIONAL HOUSING NEEDS ASSESSMENT PLAN FIFTH HOUSING ELEMENT CYCLE PLANNING FOR HOUSING IN THE SAN DIEGO REGION *Due to its significant size, the document is not included as a hard copy, but is available at the following link: t/adv plng/gp comp update/cc /CC report HE Update 10 07/17/2013 Item #09 Page 49

50 EXHIBIT CC-3 HOUSING ELEMENT UPDATE DEADLINES AND PENALTIES AS SET FORTH IN SB 375 AND 575 AND AB 1233 t/adv plng/gp comp update/cc /CC report HE Update 11 07/17/2013 Item #09 Page 50

51 HOUSING ELEMENT UPDATE DEADLINES AND PENALTIES AS SET FORTH IN SB 375 AND 575 AND AB 1233 The current RHNA and efforts to update Housing Elements must fully incorporate reform provisions contained in Senate Bill (SB) 375/SB575 provisions and Assembly Bill (AB) Under SB375 Housing Element updates are now synchronized with Regional Transportation Plan (RTP) and Sustainable Communities Strategy (SCS) adoption and the RHNA must be consistent with the RTP/SCS and its development pattern. It also requires that the SCS land use pattern, and therefore the RHNA, assist the region in meeting the greenhouse gas (GHG) reduction targets set by the California Air Resources Board (CARB). The penalties for not having a certified housing element used to be minimal. SB 375 contained a number of improvements designed to hold local governments accountable. SB375 further modified the housing element law by establishing new planning horizons, requiring more zoning for housing up front and giving advocates greater authority to sue over housing plans. The jurisdiction is required to complete rezoning of the sites it identified for residential development within three years of the element s adoption. SB375 contained two remedies if a jurisdiction fails to rezone or implement programs by the deadlines: a. Builder s Remedy: A developer can build on any site that is identified in an element for residential development, as long as the development is within the densities and development standards specified in the element. The local government must allow the development to proceed unless it makes finding that the development will have a specific, adverse impact upon the public health or safety. The housing development must be at least 49% affordable to low-and moderate-income households and be located on a site required to be rezoned. If the jurisdiction illegally denies a development, a court can order it to comply with the law. b. Citywide Remedy: Any interested party can sue to compel the jurisdiction to complete the rezonings or other programs. The local government will have the burden of proving its action was legal, and the court can impose sanctions for violations of the law. Under SB375, a jurisdiction that does not adopt an element within four months of the statutory deadline will shift into four-year cycles. Therefore the City of Encinitas will have to initiate a Housing Element update in 2016, and have it completed by April 30, Furthermore, individual projects and local government plans that are consistent with the approach outlined by SANDAG to reduce GHG emissions will be eligible for incentives, including CEQA streamlining and priority for transportation funding. It is important to note that SANDAG has also tied eligibility for certain regional-pots of money to Housing Element certification. SB575 modified the schedule as it pertains to local governments within the regional jurisdiction of SANDAG to require those governments to adopt the 5th revision of the housing element no later than 18 months after adoption of the RTP, and subjects those governments to specified requirements for subsequent revisions of the housing element. The next RHNA process will occur in conjunction with the 2019 RTP (eight year cycle). AB1233 mandates that previously identified housing needs (RHNA) not accommodated by a jurisdiction in one planning period be carried over to the next planning cycle. Government Code will apply to local governments that a. Failed to adopt an updated housing element for the prior planning period; b. Adopted a Housing Element found out of compliance by HCD due to a failure to substantially comply with the adequate sites requirement; c. Failed to implement the adequate sites programs to make sites available within the planning period; or d. Failed to identify or make available adequate sites to accommodate a portion of the regional housing need. t/adv plng/gp comp update/cc /CC report HE Update 12 07/17/2013 Item #09 Page 51

52 A jurisdiction must zone or rezone sites to address the accommodated housing need within the first year of the new planning period. In addition to demonstrating adequate sites for the new planning period, the updated Housing Element must identify the accommodated housing need by income level. Please note that once this timeframe has lapsed, HCD cannot find a jurisdiction s element in compliance until the required zoning or rezoning is complete and the element is amended to reflect conformance with the requirement. Date Issue Penalty Notes April 30, 2013 Deadline date for Housing Element No penalty update for the 5 th cycle ( ) August 30, day grace period for adoption Missing this deadline puts the City into a future 4-year cycle April 30, 2014 Deadline to complete rezoning for the 4 th cycle (from ) AB1233 carryover from cycle 4 is formally assessed April 30, 2016 Deadline to complete rezoning for the 5 th SB375 remedies become cycle ( ) effective (i.e. builder s remedy) April 30, 2017 Deadline to complete revisions and No penalty update to Housing Element update Early-mid 2021 Deadline date for Housing Element No penalty update for the 6 th cycle ( ) Early-mid 2022 Deadline to complete rezoning for the 5 th cycle AB1233 carryover from cycle 5 is formally assessed to the 6 th cycle. Note: Penalties identified are known as of this writing. State law changes may impact the schedule and associated penalties for non-compliance. Potential loss of grant funding and underlying risk of litigation is current and on-going. RHNA and Housing Element Schedule As the city s Housing Element is required to be regularly revised pursuant to a statutory schedule, consequently, there are a number of fixed RHNA dates or Housing Element time frames that must be aligned. The RHNA, RTP/SCS schedule and alignment of key milestones are provided below. HCD Consultation on Regional Housing Target at least 26 months from HE due date (June and November 2010) Draft RHNA Methodology done at least 24 months from HE due date (May 2012) RTP/SCS must be done 18 months from HE due date (October 2012) Final RHNA must be done at least 12 months from HE due date (October 2012) Housing Element adoption due date must be 18 months from RTP/SCS adoption (April 30, 2013)* Housing Element adoption due date 120-day grace period (August 30, 2013)* RHNA planning period: Housing Element planning period: Housing Element 4-year cycle planning period: and ** **Next Housing Element planning period: **Housing Element adoption due date must be 18 months from RTP-SCS adoption (early/mid 2021) * deadline dates are rounded to the 15 th or 30 th of each month ** For jurisdictions that did not adopt their fourth housing element revisions by the deadline date ***estimates t/adv plng/gp comp update/cc /CC report HE Update 13 07/17/2013 Item #09 Page 52

53 EXHIBIT CC-4 FULL TEXT OF LEGISLATIVE BILLS SB 375 AND 575 AND AB 1233 *Due to their significant size, the documents are not included as a hard copy, but are available at the following links: SB375 SB575 AB t/adv plng/gp comp update/cc /CC report HE Update 14 07/17/2013 Item #09 Page 53

54 EXHIBIT CC-5 GPAC, ERAC AND PC HOUSING POLICY REPORTS *Due to their significant size, the documents are not included as a hard copy, but are available at the following links: GPAC Housing Policy Report ERAC Housing Policy Report PC Housing Policy Report t/adv plng/gp comp update/cc /CC report HE Update 15 07/17/2013 Item #09 Page 54

55 EXHIBIT CC-6 COUNCIL AGENDA REPORT FOR THE SEPTEMBER 19, 2012 MEETING REGARDING THE CITY-WIDE WORKSHOP RESULTS *Due to its significant size, the document is not included as a hard copy, but is available at the following link: t/adv plng/gp comp update/cc /CC report HE Update 16 07/17/2013 Item #09 Page 55

56 EXHIBIT CC-7 FULL TEXT OF LAND USE ELEMENT GOAL 1 AND POLICY 3.2 AND HOUSING ELEMENT GOALS 1 AND 2 AND POLICY 1.4 t/adv plng/gp comp update/cc /CC report HE Update 17 07/17/2013 Item #09 Page 56

57 Land Use Element Goal 1: Encinitas will strive to be a unique seaside community providing a balance of housing, commercial light industrial/office development, recreation, agriculture and open space compatible with the predominant residential character of the community. Land Use Element Policy 3.2: The City will designate land use categories/zones for residential development which provide housing opportunities for all segments of society at densities consistent with the goals of this Element. Housing Element Goal 1: The city will encourage the provision of a wide range of housing by location, type of unit, and price to meet the existing and future housing needs in the region and city. Housing Element Goal 2: Sound housing will be provided in the city of encinitas for all persons regardless of age, family status, income level, race, or ethnicity. Housing Element Policy 1.4: Require that housing constructed expressly for low and moderate income households should not be concentrated in any single community or single area of the City and that such housing should be high quality in terms of design and construction without sacrificing affordability. t/adv plng/gp comp update/cc /CC report HE Update 18 07/17/2013 Item #09 Page 57