MEETING DATE:
MARCH 11, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9414 - APPROVE THE ANNUAL PROGRESS REPORT ON HOUSING ELEMENT COMPLIANCE FOR 2024
Body
Recommendation
Recommendation
ADOPT resolution approving the Annual Progress Report and Addendum (SB341 Report) on Implementation of the Housing Element.
Body
Board or Commission Action
On July 13, 2021, the City Council adopted City Council Resolution No. 2021-8906, adopting the 2021-2029 Sixth Cycle Housing Element update to the General Plan (GPA 21-0003).
Relevant Council Strategic Theme
Planning for the Future
Executive Summary
The Housing Element is a state mandated component of the General Plan that identifies the City’s housing conditions, needs, establishes the goals, objectives, and policies that are the foundation of the City’s housing strategy. The current Housing Element was adopted by the City Council on July 13, 2021 and covers the planning period October 15, 2021 through October 15, 2029. The State Department of Housing and Community Development (HCD) certified on August 3, 2021, that the City’s Housing Element complied with state law. California Government Code Section 65400 mandates that all cities and counties submit an annual progress report on the implementation of its Housing Element to the Governor’s Office of Planning and Research (OPR) and HCD. The State’s Regional Housing Need Allocation (RHNA) goals will continue to be used as the benchmark for compliance reporting purposes. In addition, the mandated annual successor housing entity report is enclosed as Attachment A to the Annual Progress Report.
Discussion
Cal. Gov. Code § 65400 requires that the Annual Progress Report be considered during a City Council meeting where members of the public shall be allowed to provide oral testimony and written comments. The City’s Annual Progress Report on Implementation of the Housing Element for calendar year 2024 is provided as Attachment 2. It addresses the following topics:
• Progress towards the State designated RHNA goals for the City.
• Attainment of housing goals and objectives in the 2021-2029 Housing Element
• Detail on housing development applications received, new construction entitlements, building permits, and completed units
• Detail on sites identified or rezoned to accommodate housing needs
The RHNA is State mandated and requires that each city accommodate its fair share of the region’s housing need by providing for a mix of housing for all economic segments. The RHNA is linked to various factors, including the availability of adequate sites with appropriate zoning. It also takes into consideration sites that are vacant or underutilized. The City’s current RHNA allocation is 3,116 units. More than half (63 percent) of these units have been permitted, with a majority of the units in the moderate to above moderate category. The required remaining units fall primarily within the very low to low-income categories. The table below shows the breakdown of the City’s RHNA allocation and progress. The current RHNA cycle ends on December 31, 2029.
|
2021- 2029 Regional Housing Needs Assessment Allocation by Income |
|
Very Low |
Low |
Moderate |
Above Moderate |
Total |
|
728 |
530 |
542 |
1316 |
3116 |
|
Permitted Units Issued by Affordability |
|
173 |
94 |
915 |
810 |
1992 |
|
Total Remaining RHNA By Income Level |
|
555 |
436 |
|
506 |
1497 |
The City continues to implement the Inclusionary Housing ordinance to support the development of very-low and low-income housing through the collection of an in-lieu fee or on-site development, and in collaboration with affordable housing developers.
Additionally, California Health & Safety Code Section 34176 as amended by Senate Bill 341 has mandated an annual successor housing entity report be submitted to HCD as an addendum to the Annual Progress Report. The period of time covered in the annual successor housing entity report is for the previous fiscal year from July 1 through June 30. The additional report is enclosed as Attachment A to the Annual Progress report and covers the most recent fiscal year ending June 30, 2024.
Environmental Review
Section 15378(a) of the California Environmental Quality Act (CEQA) Guidelines (California Code of Regulations, Title 14, Chapter 3) defines an activity as a “project” if it has the potential to result in either a direct, or reasonably foreseeable indirect, physical change to the environment. The proposed adoption of a Resolution approving the Annual Progress Report and addendum on Implementation of the Housing Element is not a project within the meaning of CEQA because there is no potential for it to result in a physical change in the environment, either directly or indirectly.
In accordance with Section 15164 of the State CEQA Guidelines, the 2021 Housing Element’s environmental documentation was an Addendum to the 2012 General Plan Final Environmental Impact Report (SCH No. 2011071028), the Public Review Draft of the 2021-2029 Housing Element was available for a 30-day review period starting on March 12, 2021.
Fiscal Impact
There is no fiscal impact to submitting these annual progress reports. Failure to submit the annual progress report could limit the City’s ability to successfully compete for grants administered by the State government.
In addition to the importance of annually reviewing the City’s progress in meeting its Housing Element goals, state agencies have increasingly tied various competitive funding programs for non-housing-related activities (such as infrastructure and parks) to a jurisdiction’s compliance with Housing Element law, including having a certified Housing Element and submittal of the jurisdiction’s annual Housing Element progress report to the HCD.
Attachment(s)
1. Resolution Approving the Annual Progress Report on Housing Element Compliance in 2024
2. Annual Progress Report on Housing Element Compliance for 2024
3. Attachment A - Addendum Annual Progress Report
Prepared by: Song LeBaron, Sr. Management Analyst
Reviewed by: Joe Farace, Planning Division Director
Reviewed by: Sylvia Daniels, Housing & Neighborhood Services Director
Reviewed by: Isaac Etchamendy, Development Services Director/City Engineer
Approved by: Michelle Bender, City Manager