REPORT TO PLANNING COMMISSION
SUBJECT
Title
Public Hearing: Recommendation on an Amendment to the Zoning Code Implementing AB 1397 (2017) Relating to Affordable Housing Developments and Allowing “Use By Right” for Selected Projects Pursuant to the City’s Adopted Housing Element
Report
BACKGROUND
At the January 9, 2024 City Council meeting, the Council adopted the comprehensive Zoning Code Update. On May 7, 2024, the City Council adopted the 6th Cycle (2023-2031) Housing Element, which describes how the City will provide sites and implement programs to meet the City’s Regional Housing Needs Allocation (RHNA) of 11,632 units over the next eight years. As a part of the Housing Element adoption process, over the past 18 months City staff have engaged in repeated, detailed discussions with the State Department of Housing and Community Development (HCD) regarding the policies and programs of the City’s Housing Element. On May 31, 2024, HCD certified the City’s Housing Element. One of HCD’s requests was that the Housing Element include an Action item to revise the Zoning Code to implement a state law, Assembly Bill (AB) 1397 (2017).
DISCUSSION
As part of the certification process, HCD asked the City to include Action 9 in the final Housing Element. That Action requires the City to implement AB 1397 (2017), which applies to housing sites listed in the inventories of previous Housing Elements, such as sites along El Camino Real.
AB 1397 affects two kinds of sites: 1) nonvacant sites included in the inventory of the 5th Cycle (2015-2023) Housing Element, and 2) vacant sites included in both the 4th Cycle (2007-2014) and 5th Cycle (2015-2023) Housing Elements. For these sites, AB 1397 requires the City to allow “Use By Right” approval for housing developments for which 20 percent or more of the units are affordable to lower income households. To implement this requirement, language regarding sites used in previous Housing Elements is proposed to be added to the residential and mixed-use chapters of Article 2, Zones, Allowable Uses and Development Standards of the Zoning Code.
The ordinance would also add a definition of the term “Use By Right” consistent with AB 1397. As proposed, “Use by Right” will mean that the City’s review of multi-family residential projects will be largely ministerial, such that no conditional use permit or other discretionary review or approval will be required. However, the “Use By Right” requirement will not exempt the developments from objective design review requirements, and any subdivisions will still need to comply with the City’s Subdivision Ordinance.
AB 1397 took effect on January 1, 2018, and applies to all cities, regardless of whether or not they adopt an implementing ordinance. The proposed ordinance will satisfy a request from HCD and an Action in the City’s Housing Element, but the “By Right” requirements of AB 1397 will apply whether the City adopts this ordinance or not.
The proposed code changes are included in the Planning Commission resolution as Attachment 1.
ENVIRONMENTAL REVIEW
On January 31, 2023, the City Council adopted an Addendum to the 2010-2035 General Plan Environmental Impact Report (EIR) to cover adoption of the January 31, 2023 Housing Element Update. The Addendum concluded that the Housing Element Update and its associated programs, including the adoption of the Zoning Code Update, would not result in any environmental impacts beyond those described in the General Plan Update EIR. On May 7, 2024, the Council adopted the current version of the Housing Element, and made a finding that the refinements and modifications contained in the May 7, 2024 Housing Element Update did not result in new or more significant impacts than those considered in the January 2023 Addendum, and that therefore no further environmental review was necessary for the adoption of the May 7, 2024 Housing Element Update. The proposed Zoning Code amendment is listed as Action 9 in the May 7, 2024 Housing Element, and therefore within the scope of the previous environmental analysis.
FISCAL IMPACT
Adoption of the proposed Zoning Code amendment would help the City to fully comply with Action 9 of the adopted Housing Element and satisfy the request from the State Department of Housing and Community Development (HCD). No additional resources are needed beyond those indicated at the time of Zoning Code adoption.
COORDINATION
This item was coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Planning 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.
ALTERNATIVES
1. Provide an alternate recommendation to the City Council than adopting the Zoning Code ordinance amendment to Implement Action 9 of the Housing Element.
RECOMMENDATION
Recommendation
1. Adopt a resolution recommending that the City Council adopt the Zoning Code amendment to implement Action 9 of the Housing Element relating to “By Right” residential development pursuant to AB 1397.
Staff
Prepared by: John Davidson, Principal Planner, Community Development
Reviewed by: Alexander Abbe, Assistant City Attorney
Approved by: Reena Brilliot, Acting Director of Community Development
ATTACHMENTS
1. Resolution Implementing AB 1397 and “Use by Right” for Residential Development.