REPORT TO CITY COUNCIL
SUBJECT
Title
Public Hearing: Action on Amendment to the City of Santa Clara General Plan - Re-Adoption of the 2023-2031 Housing Element with Revisions
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The Housing Element, one of the required elements of the City’s General Plan, includes goals, policies, actions, and objectives intended to help the City meet the housing needs of all current and future Santa Clara residents. State law requires that local jurisdictions update their housing elements every eight years and that the Housing Element be reviewed by the State Department of Housing and Community Development (HCD). HCD “certifies” housing elements that it determines to be in substantial compliance with State housing law. Since the housing element statutes were first enacted, five such cycles of adoption and certification have been completed; a sixth cycle of eight years began on February 1, 2023.
The City has already adopted two versions of the 6th Cycle Housing Element: an initial version on January 31, 2023, and a revised version on June 27, 2023. After HCD provided comments on the January 31st version, staff met with HCD on April 20, 2023 to discuss those comments and again on June 2, 20223 to discuss staff’s preliminary draft revisions to the adopted Housing Element to address those comments, followed by the June 27, 2023 Council re-adoption. On October 20, 2023, the City received HCD’s comment letter (Attachment 1) on the June 27, 2023 version, which found that the re-adopted Housing Element addressed many of their earlier comments, but that additional revisions would still be necessary for HCD to certify the Housing Element.
From November 2023 through February 2024, City staff met with HCD five times to discuss their October 20, 2023 formal comments on the City’s re-adopted Housing Element and their subsequent informal comments on six preliminary draft revisions to the Housing Element. Staff submitted another preliminary draft revision and met with HCD two additional times in March 2024 to discuss public comments received during the public posting period of the draft revisions to the re-adopted Housing Element. The City submitted the proposed adoption draft of the Housing Element to HCD for formal review on March 26, 2024 (Attachments 2 (clean) and 3 (redline)).
On April 11, 2024, the City received a letter from HCD (Attachment 4) finding that the revised draft Housing Element meets the statutory requirements of State Housing Element Law (Gov. Code 65580 et seq.) with the condition that the Housing Element be re-adopted by the City, submitted to, and approved by HCD in the revised form, and the necessary rezonings along the El Camino Real corridor be completed.
DISCUSSION
The Planning Commission hearing on this item took place on April 17, 2024. Staff provided a presentation (Attachment 5) with background information on housing elements in general and specifically about the City’s housing element update process. The presentation also highlighted the key changes made to the Housing Element in response to comments from HCD. A detailed summary of HCD’s comments on each of the City’s prior submittals and the City’s revisions to address those comments, including the March 2024 draft, is included in the discussion section of the April 17, 2024 Planning Commission staff report (Attachment 6).
The Commission asked questions about:
• the City’s shrinking population and whether that impacts the City’s Regional Needs Housing Allocation (RHNA) numbers,
• the role of the City’s Annual Progress Report (APR) to the State on implementation of the Housing Element, and
• how required infrastructure for new development is analyzed, planned, and paid for.
Staff provided responses that any changes to the City’s population do not impact the City’s RHNA numbers for this housing cycle. The City began implementing the current Housing Element since its adoption on January 31, 2023. At the beginning of each year, the City is required to prepare an Annual Progress Report (APR) for the prior calendar year demonstrating progress made toward implementing the Housing Element. The APR is then submitted to HCD for review by April 1st. Staff provided the Planning Commission with a copy of the recently submitted APR for the 2023 calendar year.
Staff also shared that the Housing Element includes an evaluation of existing and planned infrastructure to accommodate the RHNA. All of the sites in the Housing Element inventory have existing General Plan designations that allow residential development at levels greater than the conservative estimates of realistic residential unit capacity used for Housing Element purposes.
The majority of planned housing is located in the City’s adopted Specific Plan areas, each of which included a detailed evaluation of the improvements related to infrastructure needed to support the proposed uses within those areas and a plan for funding/phasing those improvements.
Commissioners also commented that the City should do something about buildings/properties along El Camino Real that have been vacant for a long time.
The Commission also asked for, and was provided information about, the potential penalties for not having an adopted and certified Housing Element.
A public comment letter (Attachment 7) and four letters of support (Attachments 8-11) were provided to and reviewed by the Planning Commission.
Commissioner Biagini made a motion (Bhatnagar seconding) to adopt a resolution (Attachment 12) to recommend City Council amend the General Plan by re-adopting the 2023-2031 Housing Element with revisions incorporated to address HCD comments. The Commission voted unanimously (7-0-0) in favor of the motion.
City staff’s understanding and belief is that both versions of the Housing Element adopted by the City Council (initially on January 31, 2023 and re-adopted on June 27, 2023) were in “substantial compliance” with state law requirements. Because HCD had issues and concerns with the adopted versions, including a desire to add language, analysis and programs that went above and beyond strict legal standards, staff continued to work with HCD to address their issues to develop a version of the Housing Element that HCD was prepared to certify. Staff also responded to concerns brought by the “Housing Action Coalition” (HAC) concerning the viability of selected nonvacant sites for redevelopment, including 56 pages of new analysis added to Appendix C in the new version. Staff believes, with this version, that the concerns of HCD and the HAC have been fully addressed in a manner that is consistent with and in many ways exceeds legal standards, and that is also consistent with the City’s affordable housing objectives (see Attachment 4 April 11, 2024 HCD Findings Letter). Accordingly, staff strongly recommends the City Council adopt the Housing Element as presented.
ENVIRONMENTAL REVIEW
Consistent with California Environmental Quality Act (CEQA) guidelines 15162, the City prepared an Addendum to the 2010-2035 General Plan Environmental Impact Report (Attachment 13) for the 6th Cycle (2023-2031) Housing Element, which concluded that there is no substantial change to the General Plan that would require major revisions to the previous EIR; that there is no substantial change in circumstances as a result of modifications to the General Plan that would cause new or substantially more severe impacts; and, that there is no new information of substantial importance that identifies new or more intense significant impacts than those identified in the General Plan EIR.
With the adoption of Resolution No. 23-9118 (Attachment 14) at a public hearing on January 31, 2023, the City Council approved the Addendum to the General Plan EIR for adoption of the 6th Cycle Housing Element. Although the proposed action is to make additional revisions to the Housing Element and General Plan, there are no new policies proposed that would generate new or substantially more significant environmental impacts; moreover, the revised inventory identifies slightly fewer sites than in the January 2023 element and June 2023 re-adopted element, and so any impacts are likely to be slightly reduced. As such, the General Plan EIR and Addendum remain sufficient for the environmental analysis of the proposed Housing Element.
FISCAL IMPACT
There is no fiscal impact associated with this report. On January 25, 2022, the City Council approved a consultant agreement with MIG, Inc. to update the City’s Housing Element and accepted $499,150 in reimbursable grant funding from the State’s Local Early Action Planning (LEAP) grant program. Of this grant funding, $289,868 will be used to fund MIG’s work and the remaining $209,282 will be used to fund City staff expenses. Initially, all grant funds were required to be expended on or before December 31, 2023. Staff is processing a state-approved time extension that would cover expenditures through the end of 2025.
Re-adoption of the Housing Element, with revisions as drafted, includes new and revised City programs to implement the Housing Element goals and policies in conformance with State requirements. The potential implementation of these programs will require future City Council review, including analysis of their potential fiscal impacts.
COORDINATION
This report was coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
On March 1, 2024, a GovDelivery bulletin was emailed to the City’s 2,639 Housing Element Update topic subscribers, including all prior commentors, to let them know of the availability of the draft revisions to the re-adopted Housing Element.
On March 5, 2024, pursuant to Government Code Section 65352(a), the City mailed referral letters to tribes and outside agencies advising them of the City’s intent to take action on a General Plan Amendment to adopt revisions to the 2023-2031 Housing Element.
On March 27, 2024, pursuant to Government Code Section 65353 and 65355, a notice of public hearing was published in The Weekly, a newspaper of general circulation, regarding the Planning Commission and City Council public hearings.
On April 12, 2024, a Gov Delivery bulletin was emailed to the City’s 2,778 Housing Element Update topic subscribers, including all prior commentors, regarding the Planning Commission and City Council public hearings.
ALTERNATIVES
1. Adopt a Resolution to amend the General Plan by re-adopting the Housing Element for the 2023-2031 Cycle with the revisions presented to address HCD’s comments.
RECOMMENDATION
Recommendation
Adopt a Resolution to amend the General Plan by re-adopting the Housing Element for the 2023-2031 Cycle with the revisions presented to address HCD’s comments.
Staff
Reviewed by: Reena Brilliot, Acting Director, Community Development
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. HCD’s October 20, 2023 Findings/Comment Letter on Re-Adopted Housing Element
2. Draft Revisions to Re-Adopted Housing Element (clean)
3. Draft Revisions to Re-Adopted Housing Element (redline)
4. HCD’s April 11, 2024 Draft/Conditional In-Compliance Letter
5. Planning Commission Presentation April 17, 2024
6. Planning Commission Staff Report April 17, 2024
7. Housing Action Coalition Comment Letter March 8, 2023
8. SV@Home Support Letter April 11, 2024
9. Freebird Development Support Letter April 9, 2024
10. The Core Companies Support Letter April 8, 2024
11. Charities Housing Support Letter April 10, 2024
12. Planning Commission Resolution No. 24-008
13. CEQA Addendum
14. City Council Addendum Resolution No. 23-9188
15. General Plan Amendment Resolution