Title
Planning Board Study Session: Proposed Process and Schedule to Update the City’s General Plan Housing Element for 2023 to 2031
Body
To: Honorable President and Members of Planning Board
EXECUTIVE SUMMARY
The March 8, 2021 Planning Board workshop is an opportunity for the Planning Board and the public to review the Housing Element Update work program and initial work products. Planning Board comments and direction on the proposed work program and initial work products will help guide the work of staff and the Planning Board Housing Element Update Subcommittee in support of the Planning Board’s responsibilities to prepare a draft Housing Element update for recommendation to the City Council by the fall of next year.
BACKGROUND
On November 4, 2020, the City Council requested an opportunity to review and comment on the Association of Bay Area Governments (ABAG) Housing Methodology Committee’s Draft Methodology for Distributing the Regional Housing Needs Allocation (RHNA) among Bay Area cities and counties.
On December 1, 2020, the City Council reviewed and commented on ABAG’s draft methodology.
On January 25, the Planning Board reviewed the initial staff recommended process to update the Alameda General Plan Housing Element to accommodate the anticipated RHNA of approximately 5,400 residential units.
On February 2, 2021, the City Council reviewed and endorsed the process.
On February 8, the Planning Board reviewed the Annual Report on the General Plan and Housing Element implementation. At the meeting, several of the Planning Board members identified priorities and issues to address in the Housing Element update, in addition to those identified by staff.
On February 16, 2021, staff requested guidance from the State Department of Housing and Community Development (HCD) regarding reconciliation of State Housing Law with Alameda City Charter Article 26.
DISCUSSION
State Law.
Under the Planning and Zoning Law (§§ 65000-66499.58), the City of Alameda has the “responsibility to ... make adequate provision for the housing needs of all economic segments of the community.” (§ 65580, subd. (d).) This is accomplished through the adoption, amendment, and implementation of a general plan for the community (§§ 65300-65302), including a mandatory housing element (§§ 65580-65589.11). The Housing Element must be updated every eight years to accommodate the local share of the regional housing need (more frequently if the jurisdiction does not have a certified housing element). To be in compliance with State Law, the City Council must approve an updated Housing Element of the General Plan, which identifies the sites with appropriate zoning necessary to accommodate Alameda’s RHNA by December 2022.
Regional Housing Needs.
The State of California has determined that the Bay Area’s housing need for the period 2023-2031 is 441,176 housing units. In accordance with State Law, ABAG has developed a draft methodology for distributing the RHNA among Bay Area cities and counties. ABAG’s draft methodology allocates approximately 1% of the region’s housing needs to Alameda (approximately 5,406 housing units, comprised of 1,455 very low-, 837 low-, 868 moderate- and 2,246 above moderate-income units). Once Alameda receives its final draft RHNA from ABAG this summer, the City Council may decide whether to appeal the draft final RHNA allocation in an effort to reduce the RHNA for Alameda. The RHNA appeal period is scheduled to take place in summer 2021. Given that any reduction in Alameda’s RHNA would result in an increase in some other jurisdiction’s allocation, staff believes the chance of a successful appeal is extremely limited. For that reason, staff is proceeding with the working assumption that the City of Alameda RHNA will remain at roughly 5,400, whether the Council chooses to appeal or not.
Site Inventory Update:
The Housing Element update requires an update to the Housing Element housing opportunity site inventory, which lists the sites made available by the City of Alameda to accommodate the RHNA. Staff has prepared an initial working draft of the site inventory for the 2023-2031 housing cycle update to accommodate an estimated RHNA of approximately 5,600 units. (HCD will require every city to include some “buffer units” in the event that one or more of the sites anticipated to develop housing over the next 8 years do not in fact move forward or decide to reduce the number of units in that project.) The list includes:
1) Approved projects that will build housing during the period 2023-2031,
2) Projects that need to be re-entitled by the Planning Board and City Council, so that they can build housing during the period, and
3) Sites and districts to be up-zoned to permit multifamily housing at densities that support lower income housing types, i.e. Multifamily Overlay sites.
Multifamily Zoning Districts.
Under the Planning and Zoning Law (§§ 65000-66499.58), the City has a “responsibility to ... make adequate provision for the housing needs of all economic segments of the community.” (§ 65580, subd. (d).) To meet the RHNA’s overall goal of 5,400 units and provide zoning designations that accommodate lower income housing, staff is recommending several new multifamily zoning designations that permit multifamily housing by right and at residential densities of at least 30 units per acre. (See Table above for location of new MF Zones.)
The staff recommended multifamily zoning districts are in direct conflict with the Alameda City Charter Article 26’s citywide prohibition of multifamily housing and citywide prohibition on residential densities above 21 units per acre. In a 2009 letter to the City regarding Article 26 (Measure A), HCD stated:
“Prohibiting multifamily or limiting density is a fundamental constraint with significant impacts on the cost and supply of housing and particularly a variety of housing types. In addition, Measure A severely restricts promoting higher density housing and mixed-use development near jobs and transit to maximize land resources and address climate change.”
“Pursuant to Government Code Sections 65583.2 and 65583(c), the City is required to make zoning available to encourage and facilitate multifamily development and address and remove constraints. As a result, the element must include programs to address and remove or modify the constraint, including making zoning available to allow multifamily housing.”
The staff recommended multifamily districts are the “programs to address and remove or modify the constraint, including making zoning available to allow multifamily housing.” Given the conflicts between the City Charter and State Law, staff is seeking updated guidance for the Planning Board and City Council from the State of California regarding options for how the City may adopt a Housing Element consistent with State Housing Law, given the recent decision of the voters of Alameda to retain a citywide multifamily prohibition. (See Exhibit 1.)
Citywide Housing Constraints Zoning Analysis and Amendments.
The Housing Element update process requires an evaluation of all City-imposed regulations and requirements that may pose constraints to private development of housing in Alameda. Staff prepares a Housing Element Annual Report with an analysis of existing regulations and requirements and recommended changes to existing city ordinances to facilitate housing development consistent with State law and City of Alameda Housing policy objectives. Exhibit 2 includes the 2020 Housing Element Annual Report.
Based upon the Planning Board’s recent review of the 2020 Annual Report and the requirements of State Law, staff anticipates the need for evaluation and possible Zoning Code amendments to address the following:
• Efficiency units
• Live-work residential units
• Assisted living units
• Emergency shelters and warming centers
• Single room occupancy units
• Inclusionary Housing units
• Accessory dwelling units
• Recent state changes to state Density Bonus Law
• Off-Street Parking requirements
• Public Art requirements
• Development Impact fees
Housing Element Update Work Program and Schedule.
Staff’s proposed process and schedule for updating the Housing Element requires a sequence of actions and decisions by the Planning Board and City Council over the next 18 to 24 months. Staff is recommending the following sequence for public and Planning Board review and comment.
Spring and summer 2021:
• Encinal. Planning Board Public Hearings to consider recommendations to City Council on Encinal Terminals Tidelands Exchange, revised Master Plan, and Development Agreement to facilitate construction of 589 units during 2023-2031 Housing Element cycle. (Encinal Terminal Staff Report and Master Plan on March 8, Planning Board Agenda)
• Alameda Point. Planning Board Public Hearings to consider recommendations to City Council on Alameda Point General Plan amendment and site specific entitlements to facilitate construction of 1,500 units at Alameda Points during 2023-2031 Housing Element cycle. (1,500 represents maximum number of units the City could approve on City owned property within U.S. Navy imposed cap.)
• Multifamily Districts. Planning Board Public Workshops on draft Multifamily Zoning Districts and other zoning amendments necessary to remove constrains on housing development and facilitate housing construction during the 2023-2031 Housing Element cycle,
• RHNA Appeal. City Council public hearing to review and decide on RHNA appeal.
Fall 2021:
• Final RHNA. City Council receives final RHNA allocation from ABAG and results of appeal, if any.
• Planning Board Public Hearings to consider draft Housing Element and associated Zoning Amendments
Spring and summer 2021:
• Planning Board final Public Hearings and recommendation to City Council on draft Housing Element and associated Zoning Amendments
• City transmits recommended draft Housing Element to HCD for review.
Fall 2022.
• City Council public hearings and final action on draft Housing Element (Informed by HCD review).
• City submits approved Housing Element to HCD for certification.
• HCD sends City letter of certification.
Conclusion:
The 20 month Housing Element update process will require a coordinated effort between the staff, the Planning Board subcommittee, the Planning Board, the City Council and the Alameda community. Comments on the proposed work program, the sequencing of staff work and Planning Board public meetings and public decision making, and the initial site inventory will inform the upcoming work by staff and the Planning Board subcommittee.
ENVIRONMENTAL REVIEW
Reviewing and commenting on the Housing Element update process is not a project subject to the California Environmental Quality Act (CEQA).
CLIMATE IMPACT
A Housing Element that accommodates the RHNA supports the region’s Sustainable Communities Strategy to reduce greenhouse gas emissions. A decision by the City to not meet the RHNA would likely have a negative impact on the region’s ability to reduce greenhouse gas emissions.
RECOMMENDATION
Conduct a public hearing and review and comment on Proposed Process and Schedule to Update the City’s General Plan Housing Element for 2023 to 2031.
Respectfully submitted,
Andrew Thomas, Planning, Building and Transportation Director
Exhibits:
1. Letter to HCD.
2. 2020 Housing Element Annual Report.