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SR - GPA-2013-0002 - PART 1 2014-21 GENERAL PLAN HOUSING ELEMENTq of OR g G �� • 3c oneori.;T�� C � CUUNV CP AGENDA ITEM January 14, 2014 TO: Honorable Mayor and Members of the City Council THRU: John W. Sibley City Manager FROM: Gregory Hastings I_Ier Interim Community Development Director ReviewedNer' ed By: City Manager Finance Direct r To Be Presented By: Jennifer Le Cons Calendar _ City Mgr Rpts Council Reports _ Legal Affairs Boards /Cmtes X Public Hrgs Admin Reports Plan /Environ 1. SUBJECT A Resolution of the City Council of the City of Orange adopting the City of Orange 2014 -2021 General Plan Housing Element. 2. SUMMARY A request to adopt an updated General Plan Housing Element in accordance with State law. The Housing Element is one of the State - required chapters or "elements" of the City's General Plan. The updated Housing Element identifies existing and projected housing needs, plans for the long- term provision of housing for a variety of household income levels and articulates the City's official policies for the preservation, conservation, improvement and production of housing for the 2014 through 2021 planning period. 3. RECOMMENDED ACTION Approve Resolution No. 10755, making certain findings related to California Environmental Quality Act (CEQA) compliance and approving General Plan Amendment No 2013 -0002 adopting the City of Orange 2014 -2021 General Plan Housing Element. 4. FISCAL IMPACT None. The Housing Element includes a Policy Action Program which would be implemented over the 2014 -2021 planning period. Implementation of some policy action items may require future funding allocations. Such requests would be made as part of the normal City budget process and subject to Council approval. ITEM // / 1 01/14/14 5. STRATEGIC PLAN GOAL(S) Goal 3. Enhance and promote quality of life in the community. (c) Support and enhance attractive, diverse living environments. 6. GENERAL PLAN IMPLEMENTATION The project is a comprehensive update to the General Plan Housing Element and its policies. 7. DISCUSSION and BACKGROUND Background State law requires the City to have an adopted General Plan Housing Element. The Housing Element was last updated in April 2010 and covered the 2006 through 2014 planning period. State law requires the Housing Element to be updated to cover a new eight year planning period, 2014 through 2021, by February 12, 2014. If the City adopts the Housing Element Update by this deadline, the Housing Element will not need to be updated for another eight years. If the City does not adopt the Housing Element by the deadline, the Housing Element will need to be updated every four years. Housing Element Content The City of Orange 2014 - 2021 General Plan Housing Element identifies the existing and projected housing needs of the Orange community and articulates the City's official policies for the preservation, conservation, improvement and production of housing units in the City. In response to the City's RHNA allocation, the Housing Element's "quantified objectives" for the 2014 -2021 planning period are 363 units through new construction, rehabilitation of 32 units and conservation and /or preservation of 97 units at risk of converting from affordable to market rate units. The Housing Element contains the following sections, in accordance with State requirements: • Needs Assessment • Resources and Constraints Analysis • Housing Policy Program • Summary of Community Outreach Efforts • Adequate Sites Analysis • Review of Past Performance (2006 -2014 planning period) In summary, the Housing Element finds that: 38% of Orange households fall within Lower Income categories. Housing affordability in Orange remains a challenge. ITEM 2 01/14/14 • Orange has limited vacant land available for new housing. Future opportunities for new housing will primarily rely on redevelopment or reuse of already developed properties in the City's urban core. • Opportunities for development of new units affordable to Lower Income households lie primarily within the City's Urban Mixed Use zones, where allowable density is 30 to 60 dwelling units per acre. 30 dwelling units per acre is the minimum density at which the State assumes the private market can produce units affordable to Lower Income households. • With the demise of Redevelopment Agencies state -wide, Orange has limited funding to support affordable housing projects. The Housing Element's policy program acknowledges limited resources and focuses on encouraging affordable housing development through regulatory incentives and streamlined development standards. Overall, the Housing Element establishes a Policy Program with 26 policy action items to be implemented within the 2014 through 2021 planning period. Through the adequate sites analysis and policy program, the Housing Element demonstrates that the City is providing adequate opportunities for the production of new housing units for all income levels in a manner that meets the City's RHNA goal and complies with State law. It should be noted that the City will meet its 2014 -2021 RHNA goal of 363 new construction housing units through "projects in the pipeline ", i.e. projects that are in the entitlement process, entitled, or approved but not yet constructed. Additional capacity for future housing is identified as infill or redevelopment projects within the City's General Plan "focus areas ". The Housing Element is included as "Exhibit B" to the Council Resolution (Attachment 1 to this report). Environmental Review Initial Study No. 1834 -13 was prepared in compliance with CEQA to evaluate the environmental effects of the Housing Element Update. The Initial Study concludes that project impacts have already been analyzed and mitigated pursuant to an earlier Environmental Impact Report (the Program Environmental Impact Report prepared for the 2010 Comprehensive General Plan Update, State Clearinghouse No. 2006031117, certified on March 9, 2010). Therefore, the Initial Study finds that no further documentation is warranted or required in order to comply with CEQA. The Initial Study is included as "Exhibit A" to the Council Resolution (Attachment 1 to this report). State Department of Housing and Community Development (HCD) Review State law requires the Housing Element to be reviewed and certified by State HCD. Staff submitted the Draft Housing Element for HCD review in August 2013. HCD provided comments, staff made revisions, and on September 25, 2013, the State issued a letter to the City finding the Draft Housing Element in compliance with State law. The letter is included as Attachment 2 to this report. ITEM 3 01/14/14 Public Comments Staff began the Housing Element update by staffing community outreach booths at two local farmers markets in January 2013. Staff also held a Stakeholders Meeting for local housing services providers and developers in February 2013. Community feedback obtained is summarized in Appendix A of the Housing Element and was considered during preparation of the Housing Element. In August 2013, the Draft Housing Element was completed and was posted online for public comment. During the public comment period, the City received email correspondence from one Orange resident, commenting on items such as the City's existing multi- family parking requirements and the existing Density Bonus Ordinance. The City also received a letter from the Kennedy Commission, requesting the City strengthen its Housing Element policy program by including additional policy actions items. The comment letters are included as Attachment 3 to this report. Planning Commission Recommmendation The Planning Commission reviewed the Housing Element Update at a public hearing on December 16, 2013. No public comments were received at the hearing. The Planning Commission recommended approval to the Council by a vote of three ayes and two absences. The Planning Commission resolution, meeting minutes and staff report are included as Attachments 4, 5 and 6 for your consideration. 8. ATTACHMENTS • Attachment 1- City Council Resolution No. 10755 • "Exhibit A" - Initial Study No. 1834 -13 • "Exhibit B "- City of Orange 2014 -2021 General Plan Housing Element • Attachment 2- State HCD Letter dated September 25 2013 • Attachment 3- Public Comments Received • Kennedy Commission Letter dated August 27, 2013 • Email Correspondence from Dan Graupensperger • Attachment 4- Planning Commission Resolution No. 43 -13 • Attachment 5- Planning Commission Meeting Minutes • Attachment 6- Planning Commission Staff Report (without attachments) ITEM 4 01/14/14 RESOLUTION NO. 10755 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE MAKING CERTAIN FINDINGS RELATED TO CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) COMPLIANCE AND APPROVING GENERAL PLAN AMENDMENT NO 2013 -0002 ADOPTING THE CITY OF ORANGE 2014 -2021 GENERAL PLAN HOUSING ELEMENT. APPLICANT: CITY OF ORANGE WHEREAS, the City Council has authority per State law and Orange Municipal Code Section 17. 10.010 to take action on General Plan Amendments; and WHEREAS, the Housing Element is one of the required chapters of the City's General Plan, required by State law; WHEREAS, the City previously adopted its 2006 -2014 General Plan Housing Element in April 2010; WHEREAS, the California Government Code requires Cities to review and update their Housing Elements according to a schedule set forth by the State Department of Housing and Community Development (HCD); WHEREAS, the City also desires to update its Housing Element to ensure that it accurately reflects the City's housing policy and addresses community needs; WHEREAS, the City has prepared the 2014 -2021 Housing Element as an update to its previously approved Housing Element in compliance with State law; and WHEREAS, the City has prepared Initial Study No. 1834 -13, evaluating the environmental effects of the proposed Housing Element in compliance with the provisions of the California Environmental Quality Act (CEQA); and WHEREAS, the Planning Commission, having considered the proposed General Plan Housing Element and Initial Study 1834 -13 at a duly advertised public hearing held on December 16, 2013, including review of the staff report and receiving public testimony on the item, has determined that General Plan Amendment No. 2013 -0002 is justified and recommended approval thereof, and WHEREAS, the City Council considered the proposed General Plan Housing Element update and Initial Study 1834 -13 at a duly advertised public hearing held on January 14, 2014 including review of the staff report and receiving public testimony on the item. ATTACHMENT NO. 1 CC RESOLUTION NO. /0755 HOUSING ELEMENT UPDATE JANUARY 14, 2014 CC MTG.