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Home My WebLink About03.a. Receive the Regional Housing Needs Allocation (RHNA) Plan for Central SanPage 1 of 8 Item 3.a. F__1_448�411C_S0 November 15, 2023 TO: REAL ESTATE, ENVIRONMENTAL AND PLANNING COMMITTEE FROM: GEOFFREYMICHALCZYK, MANAGEMENT ANALYST REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE THE REGIONAL HOUSING NEEDS ALLOCATION (RHNA) PLAN FOR CENTRAL SAN The California Department of Housing and Community Development (HCD) approved the Association of Bay Area Governments (ABAG) RHNA Plan in November 2022. HCD required the Bay Area to plan for and revise local zoning to accommodate 441,176 additional housing units during the 2023-31 period. To reinforce the intention to reduce housing shortages in California, HUD issued guidance to cities and counties on the consequences of falling short in meeting these housing targets. The attached 2021 article provides some of the impacts of failure to comply. Central San anticipates an increase of 28,822 housing units within its service area according to the RHNA plan. Utilizing the individual Housing Elements from our local cities and the County, staff has input this proposed growth plan into our GIS framework and will provide a live demonstration of the dashboard created by our staff. Additionally, staff will review the attached presentation of the RHNA analytics. Strategic Plan Tie -In GOAL ONE: Customer and Community Strategy 1 - Deliver high -quality customer service, Strategy 3 - Build neighborhood and industry relations ATTACHMENTS: 1. HUD Article on Consequences of Non -Compliance of Housing Elements 2. Presentation November 15, 2023 REEP Committee Meeting Agenda Packet - Page 3 of 14 June 2021 Attachment 1 Page 2 of 8 Growing List of Penalties for Local Governments Failing to Meet State Housing Law California's Housing and Community Development (HCD) department in April 2021 issued guidance to cities and counties about the consequences of falling short in adopting or otber°wise complying with previously adopted housing elements. HCD noted that, under legislation enacted in recent years, it is authorized "to review any action or failure to act by a local government (that it finds) inconsistent with an adopted housing element or housing element law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government's actions do not comply with state law." And because housing elements are a mandatory part of a city or county's General Plan, a noncompliant housing element could also impact its General Plan, potentially invalidating it as well. Localities in this situation are subject to a range of penalties or consequences, including: Legal Suits and Attorney Fees: Local governments with noncompliant housing elements are vulnerable to litigation from housing rights' organization, developers, and HCD. If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the case, it often must pay substantial attorney fees to the plaintiff's attorneys in addition to the fees paid to its own attorneys. Potential consequences of lawsuits include: mandatory compliance within 12o days, suspension of local control on building matters, and court approval of housing developments. Loss of Permitting Authority: Courts have authority to take local government residential and nonresidential permit authority to bring the jurisdiction's General Plan and housing element into substantial compliance with State law. The court may suspend the locality's authority to issue building permits or grant zoning changes, variances, or subdivision map approvals - giving local governments a strong incentive to bring their housing element into compliance. Financial Penalties: Local governments are subject to court -issued judgements directing jurisdictions to bring a housing element into substantial compliance with state housing element law. If a jurisdiction's housing element continues to be found out of compliance, courts can fine jurisdictions up to $1oo,000 per month, and if they are not paid, multiply that by a factor of six. Court Receivership: Courts may appoint an agent with all powers necessary to remedy identified housing element deficiencies and bring the jurisdiction's housing element into substantial compliance with housing element law. Streamlined Ministerial Approval Process: Proposed developments in localities that have not yet made sufficient progress towards their allocation of the regional housing need are now subject to less rigorous "ministerial" approvals in order to hasten the production of housing and bring a jurisdiction into compliance with its state -determined housing need allocation. OVER T November 15, 2023 REEP Committee Meeting Agenda Packet - Page 4 of 14 Housing Laws Figure Prominently in the News Following are links to a sampling of recent news coverage documenting the risks and challenges faced by cities and counties in the new housing arena: State can sue: • In the face of unprecedented housing crisis, California takes action to hold cities accountable for standing in the way of housing https://www.gov.ca.gov/2019/01/25/ housing -accountability/ • Huntington Beach loses housing case with state of California https://web.archive.org/web/20210203030515/ https:/%-ww.latimes.com/socal/daily-pilot/news/ story/2o21-02-02/huntington-beach-loses-housing-case- with-state-of-California State may revoke Encinitas's compliance status with California housing law https://www. sandiegouniontribune.com/communities/north-county/ encinitas/story/2020-02-14/state-revokes-enc initas s- compliance-status-with-calif ornia-housing-law • Under pressure from state, Simi reverses opposition to proposed 278-unit apartment complex https://www. vcstar. c om/story/news/local/communities/simi- valley/2o2o/02/08/apartments-low-income-housing- s imi-valley-California/4679587002/ Developers can sue: • Holland & Knight First in California to Win Lawsuit Under New State Housing Law https://www.hklaw.com/ en/news/pres sreleases/2020/05/holland-knight-first-in- calif ornia-to-win-lawsuit-new-housing-law Developer Sues Millbrae Over Proposed Housing at Historic El Rancho Inn https://sanfrancisco.ebslocal. com/2o 21/o6/o3/developer-sue s-millbrae-over- proposed-housing-at-historic-el-rancho-inn/ Page 3 of 8 Third parties can sue: • Controversial Vallco project can continue under SB 35, judge rules https://sanjosespotlight.com/controversial- vallco-project-can-continue-under-sb-35-judge-rules/ • City of Coronado sued over failing to comply with state law allowing expedited approval for accessory dwelling units https://www.sandiegouniontribune.com/business/ story/2021-01-21/Coronado-sued-over-allegedly-denying- granny-flats • Los Altos drops appeal to court -approved housing development https://www.mv-voice.com/ news/2o2o/og/o8/los-altos-drops-appeal-to-block-five- story-downtown-housing-project • City Takes Step That Could Expand Housing on the Westside https://www.sfpublicpress.org/city-takes-step- that-could-expand-hous ing-on-the-west side/ Individuals can sue: • Clovis loses legal challenge, will be forced to zone and plan for low-income housing https://www.fresnobee.com/ news/local/article251227789.html 0 Association of Bay Area Governments Technical Assistance for Local Planning HOUSING Page 4 of 8 Attachment 2 1 Overview ABAG updated the its 8 year Regional Housing Needs Assessment (RHNA) in November 2022 for housing needs through FY 2030-31 Each community produced Housing Elements document in 2023 to address housing needs Housing Elements contain an inventory of sites by housing type, density, and total unit capacity to be developed by FY 2030-31 z November 15, 2023 REEP Committee Meeting Agenda Packet - Page 6 of 14 1 Page 5 of 8 Attachment 2 Central San Considerations Assess staffing needs to accommodate increased RHNA housing applications. Assess hydraulic model capacity in localized pipe system with respect to growth trends Adjust/increase revenue assumptions in 10-year rate plan 3 Housing Through 4 Element Data by Housing Type FY 2031 Agency Single Family Danville Adjusted Multi 236 Housing Element Family ADUs 1,806 Data Inventory % of Total 199 2,241 7.8% Lafayette 305 1,618 192 2,114 7.3% Martinez 163 1,145 37 1,345 4.7% Moraga 395 684 38 1,118 3.9% Orinda 0 1,315 44 1,359 4.7% PleasantHill 223 1,450 129 1,803 6.3% San Ramon 94 4,957 60 5,111 17.7% Walnut Creek 119 5,528 158 5,805 20.1% Contra Costa 122 2,035 127 2,283 7.9% Subtotal 1,656 20,538 984 23,179 80.4% Clayton 128 425 17 570 2.0% Concord 370 4,441 262 5,073 17.6% Subtotal 498 4,866 279 5,643 19.6% Total 2,155 25,404 1,263 28,82.2 100.0% 7.S% 88.1% 4.4% 100.091 November 15, 2023 REEP Committee Meeting Agenda Packet - Page 7 of 14 2 Page 6 of 8 Attachment 2 Consequences of Non -Compliance with Housing Laws Applies only to cities and counties Loss of Permitting Authority Financial Penalties Court Receivership Streamlined Ministerial Approval Process Legal Suits and Attorney Fees 5 88% of Housing Units will be Multi Family ■ Single Family ■ Multi Family ■ AM M. November 15, 2023 REEP Committee Meeting Agenda Packet - Page 8 of 14 3 Page 7 of 8 Attachment 2 Applications to Total 4,000-5,000 over 7.5 years Danville 285 88 240 613 Lafayette 381 114 240 735 Martinez 211 56 48 315 Moraga 637 17 62 716 On nda 0 81 80 161 Pleasant Hill 345 74 200 619 San Ramon 110 66 70 246 Walnut Creek 132 92 176 400 Contra Costa 131 53 137 321 2,232 641 1,253 4,125 Subtotal Clayton 179 15 17 211 Concord 328 161 262 751 Subtotal 507 176 279 962 Total 2,739 817 1,531 5,087 7 Each Single Family unit = 1 application Each Multi Family location = 1 application Each ADU = 1 application 54% of Applications will be Single Family ■ Single Family ■ Multi Family ■ ADUs 1.1 November 15, 2023 REEP Committee Meeting Agenda Packet - Page 9 of 14 4 Page 8 of 8 Attachment 2 70 65 50 55 50 45 40 35 3D 25 I 10 Staffing adequate for RHNA Projections within Central San Service Area Concord Community Reuse could affect additional needs A/�AN/_-\V ------ TV -------- — ------- KT� +i ac ¢ ,ai Q< m; a� 3 ' Q o' ac a x` 4 �,e' �c o� Z. oe � � cT o- � � ' Q �F o 2 0` � � cr � � —Actual Permit Applications ---Historic Average —Projected Applications with Concord —Projected Applications RHNA Dashboard Central San averaged 45 applications per month for last two fiscal years RHNA projections forecast 46 applications average per month 57 projected applications per month with Concord development from Community Reuse Project is up to a 26% increase Staff will review housing element dashboard - I November 15, 2023 REEP Committee Meeting Agenda Packet - Page 10 of 14 5