SB 827 (WIENER) TRANSIT-RICH HOUSING BONUS, RESOLUTION TO OPPOSE UNLESS AMENDED COUNCILMEMBER JOHN D'AMICO COUNCILMEMBER LAUREN MEISTER

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1 CITY COUNCIL CONSENT CALENDAR FEBRUARY 5, 2018 SUBJECT: INITIATED BY: PREPARED BY: SB 827 (WIENER) TRANSIT-RICH HOUSING BONUS, RESOLUTION TO OPPOSE UNLESS AMENDED COUNCILMEMBER JOHN D'AMICO COUNCILMEMBER LAUREN MEISTER COMMUNITY & LEGISLATIVE AFFAIRS DIVISION (John Leonard, Manager~ ~ (Hernan Molina, Governmental Affairs Liaison (Andi Lovano, Senior Management Analyst) STATEMENT ON THE SUBJECT: The City Council will consider adopting a resolution to oppose (unless amended) SB 827 (Wiener), which would authorize developments with housing to receive a "transitrich" housing bonus without consideration of existing city zoning or any meaningful local input. RECOMMENDATIONS: 1) Adopt Resolution No "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD TO OPPOSE SB 827 (WIENER) UNLESS AMENDED." 2) Direct the Community & Legislative Affairs Division to send copies of the adopted resolution to Governor Jerry Brown, State Senators Ben Allen and Scott Wiener, State Assembly Member Richard Bloom, and other partners as appropriate. BACKGROUND / ANALYSIS: California is immersed in one of the worst affordability crises in the nation with rents and home prices rising far quicker than income. California needs over a million new housing units to just meet current demand. In 2017, the California Legislature adopted 15 laws meant to speed up housing production, streamline housing approvals, and increase housing supply in order to meet the existing, and growing, need. A new bill, SB 827, introduced by Senator Scott Wiener (D-San Francisco), also aims to address the affordable housing crisis by encouraging high-density housing developments near transit. Although the intent of the bill has merit, the requirements of the bill as currently drafted are too extreme and remove local control of zoning and land-use decisions. SB 827 authorizes a transit-rich housing bonus - essentially a density bonus - for new developments that are within a certain distance from a "major transit stop" or a "highquality transit corridor". The California Public Resources Code Section defines Paget ofs AGENDA ITEM 2.V.

2 "major transit stop" as "a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods. A "high-quality transit corridor" is defined as a corridor with fixed route bus service that has service intervals of no more than 15 minutes during peak commute hours". Santa Monica Boulevard is an example of a "high quality transit corridor" and most major intersections in West Hollywood, such as Fountain Avenue and Crescent Heights Boulevard, Melrose Avenue and La Cienega Boulevard, Santa Monica and Fairfax Avenue, or Santa Monica Boulevard and La Brea Avenue, would be considered "major transit stops". According to SB 827, all parcels within a certain distance of major transit stops and high quality corridors are considered potential locations for "transit-rich housing projects" and are eligible to receive a transit-rich housing bonus. This bonus would exempt any development with housing from maximum residential density or floor area ratio requirements, minimum parking requirements, and design standards that restrict the applicant's ability to construct the maximum numbers of units consistent with the applicable building code. Most significantly, SB 827 exempts transit-rich housing projects from maximum height limitations imposed through any local ordinance, general plan element, or other local law. Specifically: If the transit-rich housing project is within a one-quarter mile radius of a high quality transit corridor or within one block of a major transit stop, the maximum height limitation cannot be less than 85 feet - about 8 stories. If the parcel is facing a street that is less than 45 feet wide from curb to curb, the maximum height limitation cannot be less than 55 feet. If the transit-rich housing project does not meet the criteria detailed above, but is within one-half mile of a major transit stop, the maximum height limitation cannot be less than 55 feet - about 5 stories. If the parcel is facing a street that is less than 45 feet wide from curb to curb, the maximum height limit cannot be less than 45 feet. Potential Impacts on West Hollywood This legislation would require California cities to allow denser, taller housing developments near all transit hubs and bus lines. West Hollywood has high frequency bus service on nearly all major corridors. Considering the total area of West Hollywood is only 1.9 square miles and the width of the City is only about five to six blocks, the proposed provisions of SB 827 will allow new housing developments on all parcels in West Hollywood to be built to at least 55 feet. New housing developments on parcels along Santa Monica Boulevard and other major boulevards would be allowed to be built Page2of8

3 to at least 85 feet. SB 827 would override local zoning regulations on height, density, parking and floor area ratio within almost all of West Hollywood. The maps provided below highlight the full extent to which this proposal will impact zoning requirements in West Hollywood. Map 1 below shows the existing base heights in each zoning district in West Hollywood. The base height is the maximum height allowed without any additional concessions or bonuses. The base heights range from 15 feet to 100 feet, with the majority of areas in the City having height requirements of less than 45 feet. Developments that are eligible to receive height concessions through the affordable housing density bonus law ( sometimes referred to as SB 1818) may be allowed to build ten feet higher than the base heights shown in Map 1. To provide a few examples, The Dylan, a mixed-use housing project at the corner of Santa Monica Boulevard and La Brea Avenue has a base height of 60 feet and an actual height of 70 feet with additional bonuses. The Crown, a mixed-use housing project at Santa Monica Boulevard and Kings Road, has a base height of 35 feet and an actual height of 36.5 feet. Map 1: Existing Base Heights Maximums w LA9end 15' '40'. 60',00' 25 45' 65' Public FacHities 35' 55' 90' ,... l r I> -~ -- e NOIIIOlulit Lal~ l'age j or ll

4 Map 2 shows the proposed base height allowances under SB 827. Effectively all of West Hollywood would have a base height allowance of at least 55 feet. Developments along the major transit corridors would have a base height allowance of 85 feet. Developments would still be eligible to receive a height concession if they include affordable housing, adding an additional ten feet above the base height allowance. The examples provided above, The Dylan and The Crown, would have been eligible for a height of up to 85 feet, plus an additional ten with applicable height bonuses. Map 2: Proposed Height Allowances Under SB 827 I _... I Up to 85' In height (45' or l'tlof"e street width) Up to 9~ In height d pro;ect onclu~s,ffordable units and e1o91ble for height concession under SB 1818 Up to 55' In h~ght (less than 45' In street width) Up to 65 in ~eight.f pro;ecl includes affordable units and e1191blp ror height concl"\!tioi" under SB (!) ,.. Map 3 highlights examples of the proposed height and density changes in SB 827 and the impact on specific neighborhoods in West Hollywood. For example, the neighborhood designated as area 1 on the map is currently zoned as R1 B, with a maximum height of 2 stories. Under SB 827, this would change to a maximum of 5 stories, or 6 stories with eligible height concessions. Area 10 shown in Map 3 is currently zoned CC 1 with a maximum height of 3 stories. Under SB 827, this would change to a maximum of 8 stories, or 9 stories with eligible height concessions. Page 4 of 8

5 Map 3: Example Impacts on Certain Neighborhoods ,.u L---,.-,-~ -, I ll. h J M11N cc1.n:,...,,... Ol.11 >-.., n:,_ -.is.,_.. <4).... s;s-m: -- IS'l--<S'- 6S... 95, taorwt ts. tllerin,..,.. trj&,.... (0..4);.. " "" ttl Mflb QllS J*'ift SS:StilllltnllS;l~... Wl'IUl "'u:,_ ss:s-.. : --r- ( ( 1, ls, l MotliN n:14'0ttn (Ct.to: IIIO!t.N IS:1... 9S'.tll*ll"I 6S.,_...m,_......,,~.,norin w.t tmotlin*"kult.aw ts, t,1001, H: t\lorlf'i Ln1 Upd..o &4f1 ' Oppose Unless Amended Position The City of West Hollywood is supportive of new housing and measures to increase affordable housing and is well-known for being a creative and progressive city, particularly when it comes to housing policies. The City of West Hollywood has an lnclusionary Housing program and an Affordable Housing Trust Fund, which was created to off-set development impacts and generate additional resources to meet the increasing need for affordable housing. The City has consistently met its Regional Housing Needs Assessment (RHNA) allocation and has exceeded housing production goals established by existing state law. The proposal by Senator Wiener will preempt cities' and counties' local zoning ordinances by granting density bonuses above and beyond the current bonuses prescribed by both state and local laws. By setting blanket height and density increases, the bill will remove local control from much of the development process. Allowing highdensity development throughout West Hollywood, including in neighborhoods zoned for low rise residential, will fundamentally change the character of nearly every neighborhood in the City. The bill would also limit a city's ability to maintain Page s of 8

6 differentiation between the look and feel of different neighborhoods, for example, the Melrose Avenue area of West Hollywood has a different look and feel, than the Sunset Strip because of the size and mass of buildings allowed in each of the areas. SB 827 could have other potential negative impacts. The up-zoning requirement could make communities resistant to increase transit in some areas where they do not want to be subject to the increase in height requirements. Additionally, unlike fixed rail routes, bus routes may change or shift periodically depending on ridership or funding. As currently drafted, SB 827 treats all major transit stops the same, regardless of whether it is fixed or variable. By imposing much higher density and taking over zoning from local governments, the bill could result in communities losing protections that prevent further gentrification and provide an incentive for developers to build taller buildings without using existing tools, such as the affordable housing density bonus, that would provide additional public benefits to the community. SB 827 does not take into consideration infrastructure demands created by additional height and density. West Hollywood's infrastructure is not significantly different from areas that have half the density. SB 827 potentially increases the demand for water, sewer, electrical, etc., without providing additional funding for local governments to accommodate these increases. In addition, there are no environmental review requirements to address potential cumulative negative effects and no traffic studies to assist with planning for this type of growth. The following must be considered: o Consideration for the current density (per square mile) of a city. o Consideration of the size of the city (land area). o Consideration for whether a proposed development is on a parcel previously occupied, within the last five years, by a rent-stabilized apartment building. The proposed resolution would approve an "oppose unless amended" position for the City of West Hollywood. If approved, the City's staff and lobbyist would work with the bill's author to propose amendments to make the bill more acceptable for local communities. Recommended amendments include: o Exemptions for jurisdictions that are already meeting Regional Housing Needs Assessment (RHNA) allocations. o Exemptions for jurisdictions that have other innovative housing programs such as inclusionary housing or transit-oriented development goals. o Exemptions for jurisdictions with densities far above the statewide median. Page 6 of 8

7 o o o o Exemptions for smaller cities, e.g., those with total land area under 5 square miles. Exemptions for areas zoned for low rise residential. Limiting the bill's application to no more than 5% to 25% of any jurisdiction's land area (percentage scale dependent upon city size) and targeting the transit corridors to protect neighborhoods. Incorporating a provision that allows jurisdictions to accommodate increased density as they see fit. If for example, the bill required jurisdictions to provide more density than current zoning allows, each jurisdiction could plan for the increase accordingly and maintain a level of local control. CONFORMANCE WITH VISION 2020 AND THE GOALS OF THE WEST HOLLYWOOD GENERAL PLAN: This item is consistent with the Primary Strategic Goal(s) (PSG) and/or Ongoing Strategic Program(s) (OSP) of: PSG-1: Maintain the City's Unique Urban Balance with Emphasis on Residential Neighborhood Livability. OSP-12: Actively Participate in Regional Issues. In addition, this item is compliant with the following goal(s) of the West Hollywood General Plan: LU-1: Maintain an urban form and land use pattern that enhances quality of life and meets the community's vision for its future. LU-2: Maintain a balanced mix and distribution of land uses that encourages strategic development opportunities and mobility choices within the City. EVALUATION PROCESSES: City staff will monitor the progress of SB 827 as it moves through the legislative process. Staff will provide updates to City Council on the progress of the legislation via its regularly scheduled legislative briefings and summary notes of such briefings. ENVIRONMENTAL SUSTAINABILITY AND HEALTH: N/A COMMUNITY ENGAGEMENT: N/A Page7of8

8 OFFICE OF PRIMARY RESPONSIBILITY: CITY MANAGER'S DEPARTMENT/ COMMUNITY & LEGISLATIVE AFFAIRS DIVISION FISCAL IMPACT: None. ATTACHMENT: Resolution No "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD TO OPPOSE SB 827 (WIENER) UNLESS AMENDED." Page 8 of 8

9 RESOLUTION NO. 18- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST HOLLYWOOD TO OPPOSE SB 827 (WIENER) UNLESS AMENDED WHEREAS, California is immersed in one of the worst affordability crises in the nation with rents and home prices rising far quicker than income; and, WHEREAS, SB 827, introduced by Senator Scott Wiener (D-San Francisco), aims to address the affordable housing crisis by encouraging high-density housing developments near transit; however, the requirements of the bill as currently drafted are too extreme and remove local control of zoning and land-use decisions; and, WHEREAS, SB 827 authorizes a transit-rich housing bonus - essentially a density bonus - for new developments that are within a certain distance from a "major transit stop" or a "high-quality transit corridor; and, WHEREAS, this bonus would exempt any development with housing from maximum residential density or floor area ratio requirements, minimum parking requirements, and design standards that restrict the applicant's ability to construct the maximum numbers of units consistent with the applicable building code; and, WHEREAS, most significantly, SB 827 exempts transit-rich housing projects from maximum height limitations imposed through any local ordinance, general plan element, or other local law; and, WHEREAS, if the transit-rich housing project is within a one-quarter mile radius of a high quality transit corridor or within one block of a major transit stop, the maximum height limitation cannot be less than 85 feet - about 8 stories, and if the parcel is facing a street that is less than 45 feet wide from curb to curb, the maximum height limitation cannot be less than 55 feet; and, WHEREAS, if the transit-rich housing project does not meet the criteria detailed above, but is within one-half mile of a major transit stop, the maximum height limitation cannot be less than 55 feet - about 5 stories, and if the parcel is facing a street that is less than 45 feet wide from curb to curb, the maximum height limit cannot be less than 45 feet; and, WHEREAS, West Hollywood has high frequency bus service on nearly all major corridors, and considering the total area of West Hollywood is only 1.9 square miles and the width of the City is only about five to six blocks, the proposed provisions of SB 827 will allow new housing developments on all parcels in West Hollywood to be built to at least 55 feet; and, Page 1of2 ATTACHMENT A

10 WHEREAS, SB 827 would remove local control of zoning by overriding local zoning regulations on height, density, parking and floor area ratio within almost all of West Hollywood; and, WHEREAS, allowing high-density development throughout West Hollywood, including in neighborhoods zoned for low rise residential, will fundamentally change the character of nearly every neighborhood in the City; and, WHEREAS, SB 827 does not differentiate between different types of transit stops such as bus routes versus fixed rail routes, nor does it take into consideration infrastructure demands and costs created by additional height and density; and, WHEREAS, the City of West Hollywood is supportive of new housing and measures to increase affordable housing and is well-known for being a creative and progressive city, particularly when it comes to housing policies; and, WHEREAS, West Hollywood has an lnclusionary Housing program and an Affordable Housing Trust Fund, which was created to off-set development impacts and generate additional resources to meet the increasing need for affordable housing, and the City has consistently met its Regional Housing Needs Assessment (RHNA) allocation and has exceeded housing production goals established by existing state law; and, WHEREAS, the City of West Hollywood is interested in working with the bill's author to develop amendments that take into consideration the size, density, existing housing programs, housing development, and other specific features of local jurisdictions to make the bill more equitable and maintain a level of local control over development decisions; and, NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of West Hollywood opposes SB 827 (Wiener) unless the bill is amended to address the City's concerns. PASSED, APPROVED AND ADOPTED THIS day of, 20_. ATIEST: MAYOR City Clerk Page 2 of2