WHERE ARE WE WITH THE HOUSING ELEMENT?
Posted January 10, 2023
Overview
On November 12, 2022, the Department of Housing and Community Development (HCD) sent the City a Review Letter with questions on the Draft Housing Element (HE). The city must respond with a revised HE prior to the January 31, 2023 statutory deadline or face severe penalties.
This report summarizes information from three public outreach meetings conducted by Development Services Director Nick Zornes on December 16, 2022. Key points covered:
Single-family (R1) neighborhoods will not have to be rezoned.
The revised HE will allow an additional ten (10) feet height in the Commercial Neighborhood (CN) , Commercial Thoroughfare (CT), and Mixed Use zones.
In spite of the shallow lots abutting single family homes in the Office/Administrative (OA) District on San Antonio Road, that area remains in play for rezoning.
Village Court (Corner of El Camino and San Antonio) can be rezoned regardless of the Planned Unit Development (PUD) overlay.
If Rancho Shopping Center cannot be rezoned for housing, it’s likely the City would need to rezone R1 single-family areas.
The City will hire a Housing Manager to help comply with the Affirmatively Furthering Fair Housing Act (AFFH), and various housing programs within the City as required by law.
What You Can Do
Your comments are welcomed by the City and informs HCD that the city has reached out to residents. The revised HE will be discussed at City Council meetings on January 10 and January 24. Please send your comments to
PublicComment@losaltosca.gov with PUBLIC COMMENT in the Subject line.
Los Altos Residents Meeting
City Manager Gabe Engeland also attended this meeting.
Single-family Neighborhoods
We can achieve the HE goals without rezoning any R1 single-family parcels. This was a Council policy decision, as was the reduction of the number of buffer units over HCD requirements from 20% to 10%.
City-owned Surplus Land
When local agencies sell or lease surplus land, California's Surplus Land Act (SLA) requires them to prioritize that land for housing, recreational purposes, and school use.
City-owned parking plazas downtown can be declared surplus land if the City wants to do anything with them other than the existing parking lots. The Draft HE proposes moderate income housing on some of those plazas, but they could be rezoned to also permit very low and low income housing.
Cost of Revising the HE
Lisa Wise Consulting continues to work with the City to complete the Housing Element by January 2023 at no additional charge, since they have not yet reached the “not to exceed” limit in their original contract.
Relying on Non-vacant Sites to Meet HE Requirements
Many residents have expressed concern about designating Rancho shopping center and two church sites on Magdalena for potential housing.
State law requires the HE to show existing use (church and shops) is not an impediment to housing. LAR finds it troubling that the city cannot provide substantial evidence that those existing uses would be discontinued over the 8-year plan period.
The city has not received any communication from the owners of the properties identified in the Draft HE indicating that the owner would discontinue existing use. This information is generally provided in the form of information about existing leases. The property owners have not provided that information and the City cannot require that it be made available. The City has been in communication regarding the redevelopment of sites in the future. A formal application has yet to be received.
Rancho Shopping Center
Rancho, which is privately owned, has been designated as a potential site for low-income housing. LAR notes that private development is market driven. A developer would probably build market-rate units with only a few affordable units necessary to take advantage of perks such as bonus density. Density Bonus is allowed by State law and provides a developer with certain waivers from development standards in place at the time of application, but guarantees the City a specific number of affordable units in exchange for the waivers granted.
Per Nick and Gabe, if Rancho cannot be zoned for housing, it’s likely the City would need to rezone R1 single-family areas.
Complying with the Affirmatively Furthering Fair Housing Act (AFFH)
The HCD Review Letter says the HE should provide “local data not captured in regional, state, or federal data analysis to help describes (sic) what contributes to the higher concentration of nonwhite residents in the southern part of the City.”
This is a major challenge because we do not have local data. The revised HE will reflect the City’s plan to hire a Housing Manager who will be tasked with bringing the City into compliance with AFFH requirements.
NOTE: According to the most recent American Community Survey (ACS), the racial composition of Los Altos was:
White: 59.57%
Nonwhite:
Asian: 32.40%
Two or more races: 5.83%j
Other race: 1.44%
Black or African American: 0.65%
Native American: 0.12%
Native Hawaiian or Pacific Islander: 0.00%
Office/Administrative (OA) District on San Antonio Road
Many residents are concerned about the housing built in this area across from the downtown triangle. LAR inquired whether the City could specify town houses instead of taller apartment buildings because the lots are shallow and abut R1 single family homes. Nick said that’s a consideration, but housing must be located somewhere, and these sites are in play. Any type of housing such as apartments, condos, townhomes, etc. could be built in the OA district if the type of housing achieves the density the city is projecting to be built onsite and included within the rezone.
LASD School District
It has not been receptive to any discussion of including its sites in the HE.
City Development Fees
A poorly-worded statement in the Review Letter requires the City’s fees be “analyzed relative to other jurisdictions in the county, which currently are significantly higher than surrounding jurisdictions, and add a program to address any potential constraints.” In fact, the City’s fees are very low, and fees for multifamily projects are not significantly higher than those for single-family projects. The comprehensive fee study conducted by a third-party independent consultant will provide analysis regarding the city’s existing fee structure.
Village Court (Corner of El Camino and San Antonio)
This shopping center is currently zoned with a Planned Unit Development (PUD). Gabe and Nick said this would not prevent the city from re-zoning it.
2. League of Women Voters Housing Committee Meeting
Downtown Parking
Nick believes that there is not a fundamental parking issue in downtown Los Altos at all times of the day. He indicated that a parking study must be conducted to review the exact parking supply and demand in the downtown triangle.
Height/Story Increase
Nick indicated he would revise the HE to allow an additional ten (10) feet height.
in the Commercial Neighborhood (CN) , Commercial Thoroughfare (CT), and Mixed Use zones. A specific increase in height was required per the revisions required by HCD. This height increase accommodates the fundamentals of the program which is to increase the height of the zoning district to allow for an additional story of height.
Village Court
Nick elaborated regarding the PUD. He said there is no restrictive covenant that would bar redevelopment. Even if there were such a covenant, the Housing Crisis Act overrides any restrictions and does not allow any reduction in intensity or density. The Act (SB330) currently sunsets in 8 years, but was just extended in 2021, and is likely to be extended until the housing crisis is determined by the state legislature to be no longer exist.
Rancho Shopping Center
Only the parking lot land area was figured in the HE. Nick thinks development could be staged such that only half the existing buildings could be removed initially, and new buildings constructed, potentially with underground parking. Then the key tenets could move into the new buildings and the remainder of the new buildings constructed thereafter. Staged development is common practice in other jurisdictions and especially when redevelopment of more land area is possible. This is something that can be worked on with a project specific application.
Appeal from Planning Commission Decisions
In response to HCD’s requirement to streamline the approval process, Council decided to let the Planning Commission make final decisions on project approvals, i.e., some projects would no long have to go before Council. (the city council will review some developments).
If a developer appeals a Planning Commission decision, Nick advised that eligibility will have to be addressed. Most likely there will be a time period during which an appeal could be filed with Council. He also confirmed the Design Review Commission would no longer be required, or perhaps might meet twice a year to review Objective Standards. The third-party architectural review which applies to only some developments downtown has also been eliminated; this requirement is also currently not enforceable due to the Housing Crisis Act (SB330).
Streamlined Review Approval for Small Projects
Projects with less than five (5) units will be subject to administrative design review approval. This is also common practice in other jurisdictions such as Mountain View. This process is often called “Directors Hearings”, or “Zoning Administrator Hearings.”
Developer Entitlements
The entitlement process is a legal process in which a developer or landowner obtains government approval for their development plans. No timelines will be established for entitlements so as not to conflict with ever-changing state law. Many timelines are already established by State law such as the Permit Streamlining Act, and several Housing Laws established within the last five (5) years.
Complying with the Affirmatively Furthering Fair Housing Act (AFFH)
Nick reaffirmed the importance of hiring a Housing Manager to gather local data and adjust programs necessary to achieve compliance. This will be an ever-evolving process with continual updates of the HE. The City has engaged Dignity Moves to potentially satisfy requirements for transitional and supportive housing. Additional discussions will be necessary in the near future if they are a service provider the city seeks to utilize moving forward.
Community Outreach
LWV suggested the City (1) create FAQs on the City website to inform residents of changes that will come about due to the HCD housing requirements and (2) ask the Town Crier to do a monthly article about the HE.
What’s next?
Once the HE is submitted and found to be substantially compliant, the General Plan must be updated to be in sync, and zoning codes overhauled.
3. Los Altos Community Coalition (LACC) Zoom Meeting
Nick’s slide presentation provided general information, but not specifics about HCD’s Review Letter. He encouraged attendees to watch the November 29th City Council Study Session to get a detailed account of HCD’s findings and his interpretation of them. To watch the November 29 City Council Study Session, click on this link.
He provided a timeline to submit the revised HE:
CRITICAL DATES CALENDAR
11/29/2022 City Council Study Session
11/30/2022 OPEN-MND-Public Review Release (30ays)
12/30/2022 CLOSE-MND-Public Review
1/5/2023 Planning Commission Hearing
1/10/2023 City Council Hearing
1/24/2023 City Council Hearing
1/31/2023 Housing Element Statutory Due Date
Nick has had many meeting with community members and outlined some action items to be completed:
Conduct more public outreach
Rezone
We can “play with the numbers” to make slight adjustments as allowed by law, for example, when developing the implementing ordinances.
Show we are adopting programs to lower barriers to meet HE requirements
The bottom line is we MUST meet this basic contract with the state. If the HE is not found to be substantially compliant within 120 days of the statutory deadline of January 31, 2023, there are severe penalties:
PENALTIES FOR NONCOMPLIANCE
Rezoning must be completed in 3 years (1 year if Housing Element deadline- January 31, 2023 - is missed), or else jurisdiction is in noncompliance
Potential penalties for noncompliance include:
Financial penalties (courts can multiply financial penalties by a factor of six if housing element is not in compliance)
Legal suits and attorneys fees from lawsuits from housing rights organization, developers, and HCD
Loss of state funding sources such as grants for local transportation improvements (SB1 grants) and regional transportation funding, among others
Loss of permitting authority through General Plan inadequacy (court receivership)
To watch the LACC meeting, click on this link.
IMPORTANT REFERENCE DOCUMENTS
California Department of Housing and Community Development (HCD) Review Letter of the Los Altos Housing Element, November 10, 2022.
Click here.
City Staff Report to City Council re HCD Review Letter, City Council Study Session, November 29, 2022
Click here.
6th Cycle Housing Element, 2023 – 2031, City of Los Altos, Public Hearing Draft, December 2022
Click here.
_____________________________________________________________________________
Posted March 2022
THE HOUSING ELEMENT UPDATE WILL HAVE A PROFOUND IMPACT ON EVERY LOS ALTOS NEIGHBORHOOD - INCLUDING YOURS!
It is essential that you stay informed, learn about the implications, and provide feedback to the city throughout this process.
THE BASICS
California’s Department of Housing and Community Development (HCD) is responsible for determining the Regional Housing Needs Assessment (RHNA) for every city and county government in the state.
The RHNA for Los Altos is 1,958, which means the city is required to plan for 1,958 new housing units over the next eight years (2023 – 2031) in the following categories:
501 units: very low Income (Less than 50% of Area Median Income)
288 units: low income (50-80% of Area Median Income)
326 units: moderate income (80-120% of Area Median Income)
843 units: above moderate Income (More than 120% of Area Median Income)
Density requirements (units per acre) vary for each category vary.
The city’s Housing Element, one of the required elements (chapters) of our General Plan, provides a comprehensive strategy for promoting the production of safe, decent, and affordable housing within the community. To meet the mandated RHNA goal of 1,958 new homes, the Housing Element must be updated and portions of the city will have to be rezoned.
If we fail to satisfy the state, there are serious consequences including financial penalties and loss of authority to issue permits.
Los Altos hired Lisa Wise Consulting (LWC) to help us with our Housing Element.
LAR PURSUES THE DETAILS
In order to understand the requirements and process, LAR requested a meeting on March 16 with City Manager Gabe Engeland. Mr. Engeland invited Interim Planning Director Laura Simpson, and David Bergman and Stefano Richichi of LWC to join.
LAR submitted questions prior to the meeting (attached below along with the answers from LWC). Here’s what we learned in our conversation during the meeting. The city’s job is to zone to allow housing. Designated sites must have potential for housing, but there’s no guarantee housing will be built.
The Housing Element Update must show how Los Altos will accommodate RHNA units on sites that have “realistic capacity” for housing development. Realistic capacity indicates the number of units that could fit on a site, e.g., 30 units per acre.
Working from county assessor data, LWC has identified potential sites that include vacant sites, sites with buildings on them, and city-owned properties such as parking plazas.
Zoning maps showing these proposed sites are at:
https://static1.squarespace.com/static/612fc0231c3b5b71bdaee404/t/622fcd377bbc821429d6e636/1647299904958/LWC_LosAltos_HEU_AdminDraft_SitesAnalysis_031322_Combined.pdf
There’s no guarantee housing will be built on any of the sites, nor that any housing built would be at the designated income levels. The city just has to tell the state, “Here’s our plan for where housing could be built if we zone for it.”
It will be up to property owners to decide whether or not to build housing. For example, assume Rancho Shopping Center is rezoned to permit housing or mixed use (housing and commercial). The owner could:
· Keep Rancho just as it is today.
· Redevelop the shopping center without housing.
· Redevelop with housing above ground floor commercial.
· Redevelop with all housing.
· Sell the property.
Zoning determines a property’s value. The land value of a 1960s shopping center would be greater if developed as mixed use or all housing, which might induce an owner to redevelop it or sell. The new owner could do any of the above.
HCD recommends cities add a buffer, i.e., provide for more than the required RHNA units, because we can’t assume every property will be built out to maximum capacity. Some developments might be under max capacity and some sites might not be developed at all. LWC is recommending an additional 20% buffer to avoid delays and problems with HCD.
What about ADUs and SB9?
Accessory Dwelling Units (ADUs) will count toward RHNA. HCD has not yet decided if the city can make assumptions about SB9 lot splits, which would allow four to six homes where there is now one. Los Altos City Council restricted the number of housing units to four.
click here for QUESTIONS POSED BY LAR
with ANSWERS PROVIDED BY LWC
LAR submitted 20 questions to LWC that cover many of the issues that are not addressed on the City’s Housing Element website. We believe these Q&As will be of interest to all Los Altans.
TIME IS OF THE ESSENCE
The city is in a real time crunch to get our Housing Element Update submitted to and approved by HCD by January 2023, with a four-month grace period.
If we meet the deadline, Council has three years to rezone and modify the General Plan to be consistent with the Housing Element. If not, Council will have only one year to make those changes, which would be a daunting task.
Please check out the timeline for the Housing Element process at https://www.losaltoshousing.org/learnmore
THE CITY WANTS YOUR FEEDBACK
If you have concerns about selected housing sites or ideas for other sites, please send detailed comments to:
Interim Planning Director Laura Simpson at lsimpson@losaltosca.gov
Planning Commission at PlanningCommission@losaltosca.gov
City Council at council@losaltosca.gov
To stay informed, sign up for Housing Element updates at the City's Housing Element website.
DIG DEEPER
(This section will be updated periodically)
1. Portola Valley Presentation Visualizing Density
2. Marin Independent Journal Big struggle for county over sites for housing.
3. The Almanac Massive public records request escalates battle over Portola Valley's housing element.
4. Association of Bay Area Governments Growing List of Penalties for Local Governments Failing to Meet State Housing Law
5. California Department of Housing and Community Development: Housing Elements