REPORT TO PLANNING COMMISSION
SUBJECT
Title
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 policies and programs 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 sixth 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 31 version, staff met with HCD on April 20, 2023 to discuss those comments and again on June 2, 2023 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 on the June 27 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 on 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.
A summary of revisions made to address HCD’s and public comments on the re-adopted Housing Element are provided in the discussion section below.
DISCUSSION
The following is a list of the City’s Housing Element submittals made to HCD, HCD’s comments on each of those submittals, and the number of revision items/categories identified at each stage of their formal and informal reviews.
• Draft Housing Element (August 22, 2022)
o HCD Formal Comment Letter (November 18, 2022)
§ 43 Revision Items in 6 Categories
• Adopted Housing Element (January 31, 2023)
o HCD Formal Comment Letter (March 28, 2023)
§ 40 Revision Items in 5 Categories
• Re-Adopted Housing Element (June 27, 2023)
o HCD Informal Comments (November 16, 2023)
o Initial Draft Revisions to Re-Adopted Housing Element to HCD (October 13, 2023)
o HCD Formal Comment Letter (October 20, 2023)
§ 11 Revision Items in 3 Categories
o Preliminary Draft Revisions to HCD (December 5, 2023)
o HCD Informal Comments (January 3, 2024)
§ 4 Revision Items in 3 Categories
o Preliminary Draft Revisions to HCD (January 22, 2024)
o HCD Informal Comments (February 7, 2024)
§ 5 Revision Items in 2 Categories
o Preliminary Draft Revisions to HCD (February 12, 2024)
o HCD Informal Comments (February 15, 2024)
§ 3 Revision Items in 2 Categories
o Preliminary Draft Revisions to HCD (February 21, 2024)
o HCD Informal Comments (February 22, 2024)
§ 3 Revision Items in 2 Categories
o Preliminary Draft Revision to HCD (February 22, 2024)
o HCD Informal Comments (February 27, 2024)
§ 1 Revision Item in 1 Category
o Preliminary Draft Revisions to HCD (February 27, 2024)
o HCD Informal Comments (February 28, 2024)
§ 0 Revision Items in 0 Categories
• Draft Revisions to Re-Adopted Housing Element (March 26, 2024)
o HCD Formal Findings Letter (April 11, 2024)
§ HCD found that the revised draft housing element meets the statutory requirements of State Housing Element Law (Gov. Code 65580 et seq.) with the condition that necessary rezonings along the El Camino Real corridor have been completed and the housing element is adopted, submitted to and approved by HCD.
Summary of HCD Comments on Re-Adopted Housing Element and Draft Revisions
In HCD’s October 20, 2023 comment letter (Attachment 1) on the City’s re-adopted Housing Element, HCD identified 11 revision items in three different categories that needed to be addressed. These categories, revision items, and draft revisions are summarized below.
1. Sites Inventory
a. Progress toward the RHNA
Draft Revisions (Appendix C, Chapter 2 Housing Plan):
• Created a new Appendix C, “Supplemental Sites Inventory Analysis,” that includes sections on the availability of specific plan sites during the planning period, suitability of nonvacant sites, impediments to the availability of sites during the planning period, redevelopment trends, and a site-by-site analysis for each opportunity site in the Tasman East Focus Area, Patrick Henry Drive Focus Area, and Lawrence Station Specific Plan Area, as well as for selected sites to be rezoned along El Camino Real.
• Added more details and discussion about the City’s specific plans, including buildout horizons, and necessary steps to make these sites available for development within the planning period.
• In Housing Plan Action 10, “Monitoring,” added a mid-term evaluation of the City’s progress toward the RHNA.
b. Suitability of nonvacant sites
Draft Revisions (Appendix C):
• Included additional supporting information for the factors and trends that support the determination that nonvacant sites can redevelop within the planning period, including documented conversations/correspondence with property owners or their representatives about their interest in and ability to redevelop their sites.
• Provided a detailed evaluation, on a site-by-site basis, of the extent existing uses can impede redevelopment.
• Added table of details of prior uses of pipeline (approved, under construction, recently completed) projects to support a redevelopment trend in specific plan areas.
• In addition to all the sites that were previously removed from the sites inventory, removed several sites HCD flagged as less likely to redevelop in the planning period (1 Tasman East Specific Plan and 8 El Camino Real rezoning sites).
• Included general and specific information about the office market (e.g., rents, vacancy rates) in Silicon Valley and in the northern Santa Clara submarket.
c. Required findings
Draft Revisions (adoption resolution):
• All required findings in Housing Element adoption resolution included.
d. Emergency shelters
Draft Revisions (Chapter 2 Housing Plan):
• Clarified that with the Zoning Code Update, emergency shelters are allowed by right in certain zones per state law.
• Added Objective 2 under Action 9, “Zoning Ordinance,” to consolidate all details related to emergency shelters, including a future Zoning Amendment to revise the definition of emergency shelter and other minor revisions to the development standards in compliance with state law.
e. AB 2339 analysis.
Draft Revisions (Chapter 2 Housing Plan, Chapter 5 Constraints):
• Provided additional analysis of suitable capacity for emergency shelters.
2. Governmental Constraints
a. Land use controls.
Draft Revisions (Chapter 5 Constraints, Chapter 2 Housing Plan):
• Described how Zoning development standards are not a constraint to projects being able to achieve the maximum allowed General Plan densities.
• Clarified that the Zoning Code will be updated, as needed, to allow residential care facilities for 7 or more residents, as required by state law.
b. Revise Housing Plan Actions
Draft Revisions (Chapter 2 Housing Plan):
• Action 1, clarified that residential care facilities will be permitted in all residential zones similar to other residential uses of the same type in the same zone, consistent with state law.
• Action 2, added commitment to bring revisions to the Affordable Housing Ordinance, if necessary
• Action 3, clarified commitment to certain parking reductions
3. Affirmatively Furthering Fair Housing (AFFH)
a. Increase housing choices and affordability in areas of opportunity by including:
i. Robust actions beyond the RHNA/state law, and
ii. Quantified metrics beyond the RHNA.
Draft Revisions (Chapter 2 Housing Plan):
• Revised and clarified how the City’s Housing Plan actions and objectives help to increase housing choices and affordability in areas of opportunity.
§ Created a new Objective heading under Action 1 Provision of a Variety of Housing Types, where several objectives and metrics for increasing housing choices and opportunities are grouped.
§ Added a new section under the Housing Plan Quantified Objectives called, “Beyond the RHNA” with quantified metrics for affordable housing development within opportunity areas.
§ Added new Action 21 Place-based Programs with objectives that highlight the activities the City is already doing in terms of community revitalization. In Action 21, added Objective f to explore grants for place-based improvements, and Objective e for developing a CDBG NOFA that awards points to place-based capital improvements that improve access to opportunities.
Draft revisions to the re-adopted Housing Element are included as Attachment 2 (clean) and Attachment 3 (redlined).
Sites to Meet the RHNA (Sites Inventory)
Santa Clara has taken concrete steps, including the adoption of multiple specific plans, to support a significant amount of new housing development within the City. As shown in the table below, there are 12,209 units in pending and approved projects with a status of either: proposed (i.e. awaiting Planning approval), approved (all required Planning entitlements secured), under construction, or occupied.
The majority of pending and approved projects are market rate with the conservative assumption that assigns 10,201 units from those projects into the Above Moderate (120% AMI) affordability category. The remaining pending and approved projects include over 2,000 restricted affordable units, because of the City’s inclusionary requirements and/or the development of 100% affordable projects.
Although the total number of pending and approved units (12,209) exceeds the City’s total RHNA of 11,632 units, these projects do not fully meet the City’s RHNA requirement within the Lower and Moderate affordability categories.
In addition to the City’s pending and approved projects (12,209 units) and projected ADU production (393 units), the Housing Element Sites Inventory includes redevelopment of available specific plan sites (5,592 units) and certain rezoning sites along the El Camino Real corridor (805 units).
The sites to meet the City’s RHNA include a surplus of units (a buffer beyond the minimum RHNA target) in all affordability categories (i.e. Lower, Moderate, Above Moderate) as recommended by HCD to comply with the “No Net Loss” provisions of State Housing Element Law. Under the “No Net Loss” law, jurisdictions must maintain a sufficient capacity to accommodate their RHNA throughout the planning period at all income levels, and by maintaining a buffer above the minimum RHNA, it is less likely that the City would inadvertently violate that statute during the sixth cycle.
The table below reflects the previous removal of six properties from the inventory of the sites that were identified through earlier public comment, as well as nine additional sites (eight along El Camino Real and one in the Tasman East Specific Plan) that were removed based on additional recent public comment, site evaluation, and per HCD’s recommendation. These sites are described in more detail in the new Appendix C, “Supplemental Sites Inventory Analysis.”
|
Site/Credit Type |
Affordability Category |
Total Capacity |
|
|
Lower |
Moderate |
Above Moderate |
|
|
|
Very Low [0-50% AMI] |
Low [50-80% AMI] |
[80-120% AMI] |
[> 120% AMI] |
|
|
Pending and Approved Projects |
710 |
794 |
504 |
10,201 |
12,209 |
|
Tasman East Focus Area |
114 |
239 |
175 |
3,838 |
4,366 |
|
Patrick Henry Drive Focus Area |
76 |
75 |
75 |
1,294 |
1,520 |
|
Lawrence Station Area Plan |
39 |
45 |
58 |
635 |
777 |
|
Freedom Circle Focus Area |
54 |
54 |
54 |
913 |
1,075 |
|
Other |
427 |
381 |
142 |
3,521 |
4,471 |
|
ADU Projection |
118 |
118 |
118 |
39 |
393 |
|
Available Specific Plan Sites |
2,138 |
1,586 |
1,728 |
140 |
5,592 |
|
Tasman East Focus Area |
268 |
196 |
318 |
121 |
903 |
|
Patrick Henry Drive Focus Area |
1,747 |
1,299 |
1,299 |
- |
4,345 |
|
Lawrence Station Area Plan |
123 |
91 |
111 |
19 |
344 |
|
El Camino Real Rezoning Sites |
319 |
236 |
250 |
- |
805 |
|
Total |
3,285 |
2,734 |
2,600 |
10,380 |
18,999 |
|
RHNA |
2,872 |
1,653 |
1,981 |
5,126 |
11,632 |
|
Surplus (buffer above RHNA) |
33% |
31% |
102% |
63% |
Notes: AMI = Area Median Income. The El Camino Real rezoning sites are not required to accommodate a lower-income RHNA shortfall, but have been included in the Sites Inventory for their contribution to meeting HCD’s recommended RHNA buffer for lower-income units, particularly in the Very Low Income (VLI) category.
Summary of Public Comments
On March 8, 2024 the City received a letter (Attachment 4) from the Housing Action Coalition with the following comments:
1. For certain sites, there is no substantial evidence that the existing use is likely to discontinue in the next 8 years.
2. The Housing Element overestimates the development potential of sites in the Patrick Henry Drive Specific Plan.
3. The City must address a shortfall from the 5th Cycle Housing Element.
Regarding comment 1, City staff worked closely with HCD staff to ensure that substantial evidence was provided for each of the properties on the sites inventory, including the ones identified in the comment letter, to demonstrate the existing uses are not an impediment to redevelopment and would likely discontinue within the planning period.
Comments 2 and 3 were previously addressed with the June 27, 2023 re-adopted Housing Element. Regarding comment 2, the City verified with HCD staff that the methodology used for estimating development potential for Patrick Henry Drive sites is conservative and appropriate. Regarding comment 3, HCD verified that the City is not subject to any requirement to address a shortfall of sites to accommodate the City’s RHNA from the 5th Cycle Housing Element. The City’s 5th Cycle Housing Element was certified by HCD and each year after certification, through the Annual Progress Report (APR) process, was found by HCD to remain in substantial compliance with State housing law.
From April 8-11, 2024, the City received copies of letters of support for the City’s March 2024 revised draft Housing Element sent to HCD from SV@Home, Freebird Development, The Core Companies, and Charities Housing (Attachments 9, 10, 11, and 12).
Conclusion
City staff’s understanding and belief is that the Housing Element adopted by the City Council 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 version, including a desire to add language, analysis and requirements 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 believes, with this version, that HCD’s issues and concerns 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 8 April 11, 2024 HCD Findings Letter). Accordingly, staff recommends Planning Commission recommend City Council adoption of the Housing Element as presented.
Next Steps
• May 7, 2024 City Council Adoption Hearing
• May 8, 2024 Submit Adopted Housing Element to HCD
• July 5, 2024 HCD Comment Letter or Certification of Housing Element Due
ENVIRONMENTAL REVIEW
The City prepared an Addendum to the 2010-2035 General Plan Environmental Impact Report (Attachment 5) 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 of 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 6) 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-provided 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 an 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 Commission 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. The referral letters also include notice of the proposed Planning Commission and City Council hearings.
On April 3, 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 GovDelivery 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 Recommend the City Council Amend the General Plan by Re-Adopting the 2023-2031 Housing Element with revisions incorporated to address HCD comments
2. Adopt a Resolution to Recommend the City Council Amend the General Plan by Re-Adopting the 2023-2031 Housing Element with revisions incorporated to address HCD comments, with additional revisions
RECOMMENDATION
Recommendation
Alternative : 1. Adopt a Resolution to Recommend the City Council Amend the General Plan by Re-Adopting the 2023-2031 Housing Element with revisions incorporated to address HCD 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. Revisions to Re-Adopted Housing Element (clean)
3. Revisions to Re-Adopted Housing Element (redlined)
4. March 8, 2023 Letter from Housing Action Coalition
5. Addendum
6. City Council Addendum Resolution No. 23-9188
7. Planning Commission Resolution
8. HCD’s April 11, 2024 Draft/Conditional In-Compliance Letter
9. April 11, 2024 SV@Home Letter
10. April 9, 2024 Freebird Development Letter
11. April 8, 2024 The Core Companies Letter
12. April 10, 2024 Charities Housing Letter