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Home My WebLink AboutRES-24-7453 (GENERAL PLAN AMENDMENT)Page 1 of 5 RES-24-7453 CITY OF HERMOSA BEACH RESOLUTION NO. RES-24-7453 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING GENERAL PLAN AMENDMENT (GPA) 23-01, RE- ADOPTING THE 2021-2029 CITY OF HERMOSA BEACH HOUSING ELEMENT AS CERTIFIED BY THE STATE OF CALIFORNIA, ALONG WITH ASSOCIATED LAND USE ELEMENT AMENDMENTS, AND MAKING A DETERMINATION THAT THE REVISED HOUSING ELEMENT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) WHEREAS, the Housing Element is a required part of the City’s General Plan, known as PLAN Hermosa; and WHEREAS, the State of California requires that jurisdictions update the Housing Element at specified internals, with all jurisdictions in the Southern California Association of Governments (SCAG) region having a statutory deadline of October 15, 2021, with a 120-day grace period ending February 15, 2022; and WHEREAS, the City of Hermosa Beach received a Regional Housing Needs Assessment (RHNA) allocation of 558 units (232 very-low income; 127 low income; 106 moderate income; 93 above-moderate income); and WHEREAS, the City’s Housing Element must comply with State Housing Element Law (California Government Code Sections 65580 through 65589.11), including the Sites Inventory which demonstrates development capacity for the RHNA; and WHEREAS, the City prepared a draft 2021-2029 Housing Element and submitted the document to California Housing and Community Development (HCD) for review on August 5, 2021; and WHEREAS, the City received a comment letter from HCD on October 4, 2021 indicating revisions needed to the Housing Element to comply with required State Housing Element law; and WHEREAS, the City Council conducted a duly-noticed public hearing, received public testimony, and adopted the 2021-2029 Housing Element on December 21, 2021; and Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Page 2 of 5 RES-24-7453 WHEREAS, the City submitted the adopted 2021-2029 Housing Element to HCD for review; and WHEREAS, the City received a comment letter from HCD on March 22, 2022 indicating revisions needed to the 2021-2029 Housing Element to comply with required State Housing Element Law; and WHEREAS, after a detailed analysis of vacant land and potential redevelopment opportunities was prepared as required by State law, it was determined the City’s land inventory based on current zoning is insufficient to accommodate the Regional Housing Needs Assessment (RHNA) allocation for the 2021-2029 planning period; and WHEREAS, during the initial adoption of the 2021-2029 Housing Element on December 21, 2021, the City found that the proposed Housing Element would not approve any development or change any land use designations; therefore, the City determined that it was exempt from California Environmental Quality Act (CEQA) per Section 15061, Review for Exemption of the CEQA Guidelines. Specifically, Section 15061(b)(3) states, in part, that a project is exempt from CEQA if “the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.”; and WHEREAS, the Planning Commission held a duly noticed public hearing on June 20, 2023, to consider revisions to the City’s revised adopted 2021-2029 Housing Element, and associated Land Use Element amendments, in compliance with the State Housing Element law; and WHEREAS, after considering public input, reviewing the agenda materials, and conducting discussion, the Planning Commission adopted a resolution recommending that the City Council adopt revisions to the City’s adopted Housing Element for the 2021-2029 planning period and associated Land Use Element amendments; and WHEREAS, the City Council held a duly noticed public hearing on August 8, 2023, to consider revisions to the City’s adopted Housing Element for the 2021- 2029 planning period, in compliance with the State Housing Element law, and associated Land Use Element amendments, during which the City Council Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Page 3 of 5 RES-24-7453 considered public input, reviewed agenda materials, and conducted discussions on the Housing Element; and WHEREAS, on August 8, 2023, after considering public input, reviewing the agenda materials, and conducting discussion, the City Council adopted Resolution Number 23-7396, adopting the revised 2021-2029 Housing Element and authorizing staff to make non-substantive changes to the Housing Element to respond to HCD comments; and WHEREAS, on August 31, 2023, the City submitted the adopted revised 2021-2029 Housing Element to HCD; and WHEREAS, on October 31, 2023, HCD transmitted a letter to the City indicating that more information was needed on various sections of the Housing Element, and that the Housing Element-related Zoning Text amendments must be completed; and WHEREAS, on November 14, 2023 and January 23, 2024, the City Council adopted Ordinances 23-1470, 23-1471, and 24-1474, approving Housing Element- related Zoning Text amendments; and WHEREAS, on February 9, 2024, the City submitted to HCD the revised 2021- 2029 Housing Element with non-substantive revisions to respond to HCD comments, along with the completed zoning documents; and WHEREAS, on April 5, 2024, HCD transmitted a letter to the City indicating that more information was needed on sections of the Housing Element; and WHEREAS, on May 13, 2024, the City submitted to HCD the revised 2021- 2029 Housing Element with non-substantive revisions to respond to HCD comments; and WHEREAS, on July 12, 2024, HCD transmitted a letter to the City indicating that the City’s Housing Element complied with State law, and that minor several revisions to the Zoning Ordinance were required; and WHEREAS, on July 23, 2024, the City Council adopted Ordinance 24-1481, approving the HCD-requested revisions to the Housing-Element-related zoning amendments; and WHEREAS, on August 1, 2024, HCD transmitted a letter to the City indicating Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Page 4 of 5 RES-24-7453 that the City’s Housing Element was in substantial compliance with State law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Hermosa Beach hereby re- adopts the revised General Plan 2021-2029 Housing Element, incorporating all non-substantive revisions since the August 8, 2023 adoption, as included in Exhibits A and B. SECTION 2. The City Council of the City of Hermosa Beach hereby adopts the Planning Commission recommendation to adopt associated amendments to the Land Use Element to ensure consistency with the adopted Housing Element, as included in Exhibit C. SECTION 3. The Housing Element includes programs to ensure that the Land Use Element of the General Plan and the Zoning Map and Ordinance are amended in order to accommodate programs in the Housing Element and to ensure internal consistency amongst the different elements in PLAN Hermosa; and SECTION 4. Based on the analysis in Appendix B, Sites Inventory, detailing substantial evidence of the likelihood of redevelopment on non-vacant sites with lower-income housing units in the RHNA allocation, with the substantial evidence consisting of physical site criteria, recent development trends, and property owner intent/interest, the City Council finds that there is substantial evidence and information provided in the record that the existing uses on the Sites Inventory sites to accommodate the RHNA low-income allocation are likely to be discontinued during the 2021-2029 planning period, and therefore do not constitute an impediment to additional residential development; and SECTION 5. The City has reviewed the revisions to the 2021 -2029 Housing Element for compliance with the California Environmental Quality Act. Pursuant to the provisions of the California Environmental Quality Act, the City finds that the revised 2021-2029 Housing Element continues to be consistent with the initial finding that the Housing Element is exempt under CEQA per Section 15061. the revised Housing Element is exempt from California Environmental Quality Act (CEQA) requirements per Section 15061, Review for Exemption of the CEQA Guidelines. The Housing Element would not approve any development project Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Page 5 of 5 RES-24-7453 or change any zoning regulations which control development, and therefore would not cause a significant effect on the environment; and SECTION 6. The City Council authorizes staff to incorporate non-substantial revisions to the Housing Element, including the Sites Inventory, as necessarily for internal consistency, compliance with any HCD comments or requirements, and in conformity with the City Council action. Should HCD comments consist of substantial changes to the revised 2021-2029 Housing Element, staff will present the requested changes to City Council for review and adoption. PASSED, APPROVED and ADOPTED on this 10th day of September, 2024. Mayor Dean Francois PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM: ________________________________ ________________________________ Myra Maravilla, Patrick Donegan, City Clerk City Attorney Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 CITY OF HERMOSA BEACH HOUSING ELEMENT POLICY PLAN 2021-2029 Adopted December 21, 2021 Re-adopted (with revisions) August 8, 2023 Revisions (January, May, and June 2024) EXHIBIT A Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 This page intentionally left blank Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 i Contents I.Introduction ................................................................................................................................. I-1 A.Purpose of the Housing Element ...................................................................... I-1 B.Scope and Content of the Housing Element .................................................. I-1 C.Public Participation ........................................................................................... I-2 D.Consistency with Other Elements of the General Plan ................................... I-2 II.Housing Policy Plan ................................................................................................................... II-1 A.Housing Element Issues and Policies ............................................................... II-1 B.Housing Programs ............................................................................................. II-4 C.Quantified Objectives .................................................................................... II-19 D.Summary of AFFH Actions .............................................................................. II-19 List of Tables Table II-1 Quantified Objectives 2021-2029 ..................................................................... II-19 Table II-2 Affirmatively Furthering Fair Housing Summary Actions ................................ II-199 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 ii This page intentionally left blank Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Introduction Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 I-1 I.INTRODUCTION A.Purpose of the Housing Element The Housing Element describes the City’s needs, goals, policies, programs and objectives regarding the preservation, improvement, and development of housing in Hermosa Beach. The Element reflects community housing needs in terms of affordability, availability, adequacy, and accessibility. The Element describes the City’s strategies for addressing housing needs over the 2021-2029 period and identifies specific programs to address those needs. The Housing Element is the City’s official municipal response to the State Legislature’s declaration that adequate housing for all economic segments of the community is a matter of statewide importance that must be addressed by all levels of government. The 2021 Housing Element update provides Hermosa Beach with the opportunity to plan for the existing and future housing needs in the community, and identifies strategies and programs to address those needs. B.Scope and Content of the Housing Element The California Legislature has recognized the role of local general plans and particularly the Housing Element in implementing statewide housing goals to provide decent and adequate housing for all persons. The California Department of Housing and Community Development (HCD) also has adopted detailed guidelines regarding the scope and content of housing elements, including the following major components: •An analysis of demographic and housing characteristics and trends (Technical Report, Chapter I); •An evaluation of resources, including land, financial, and administrative resources, available to address the City’s housing goals (Technical Report, Chapter II); •A review of potential constraints, both governmental and non-governmental, to meeting housing needs (Technical Report, Chapter III); •The Housing Policy Plan addressing the City’s identified housing needs, including housing issues, policies, programs and quantified objectives (Chapter II of this document); •An evaluation of the appropriateness and effectiveness of previous policies and programs in achieving the City’s objectives, and the progress in implementing Housing Element programs (Technical Report, Appendix A); •A parcel-specific inventory of vacant and underutilized suitable sites for additional housing (Technical Report, Appendix B); and •A description of the public participation process during the preparation and adoption of the Housing Element (Technical Report, Appendix C). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Introduction Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 I-2 C. Public Participation Public participation is an important component of the planning process, and this update to the Housing Element has provided residents and other interested parties numerous opportunities to be involved in the preparation of the element. Public meetings to discuss housing needs and policy options were conducted by the Planning Commission and City Council, and notices of all meetings were published in advance of each meeting. The draft Housing Element was made available for review at City Hall and posted on the City’s website and was also circulated to housing organizations representing the interests of lower-income persons and those with special housing needs. After receiving comments on the draft Housing Element from the State Housing and Community Development Department, a proposed final Housing Element was prepared and made available for public review prior to review by the Planning Commission and adoption by the City Council. Appendix C provides additional information regarding opportunities for public involvement in the preparation of this Housing Element update, as well as a list of persons and organizations who were invited to participate. D. Consistency with Other Elements of the General Plan The Housing Element must be consistent with other elements of the General Plan, which was last updated in 2017. Housing Element policies and programs are closely correlated with the development policies contained in the Land Use Element, which establishes the location, type, and intensity of land uses throughout the city. The Land Use Element determines the number and type of housing units that can be constructed in the various land use districts. Areas designated for commercial and industrial uses create employment opportunities, which in turn, create demand for housing. The Circulation Element establishes the location and scale of streets, highways and other transportation routes that provide access to residential neighborhoods. Because of the requirement for consistency among the various General Plan elements, the 2021 Housing Element update included a review of other General Plan elements to ensure that consistency is maintained. Government Code Section 65302 also specifically requires that the Safety and Conservation Elements be reviewed concurrent with each Housing Element update. SB 1087 of 2005 requires cities to provide a copy of their Housing Elements to local water and sewer providers, and also requires that these agencies provide priority hookups for developments that include lower-income housing. These agencies have been invited to participate in the Housing Element update process and the Housing Element will be provided to these agencies immediately upon adoption. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-1 II. HOUSING POLICY PLAN The purpose of this Housing Policy Plan is to identify policies and programs that will help the City in addressing its housing needs during the 2021-2029 planning period. This section includes the following components: • Section A identifies the housing issues facing Hermosa Beach and establishes guiding policies for addressing those issues; • Section B describe specific program actions the City will take consistent with established policies; • Section C establishes quantified objectives for the construction of new housing, rehabilitation of existing housing in need of repair, and the conservation of existing affordable housing. A. Housing Element Issues and Policies This section establishes the City’s housing policy framework. Section 65583(c) of the California Government Code requires that actions and policies included in the Housing Element address five key issue areas: • The manner in which the City will assist in the conservation of existing housing resources, particularly affordable housing; • The City’s strategy in assisting in the development of new housing opportunities; • How the City intends to provide adequate sites to achieve a variety and diversity of housing types; • How the City proposes to remove governmental constraints that may impact the preservation and development of housing; and, • How the City may help to promote equal housing opportunities. Issue Area 1 - Conservation of Existing Affordable Housing The City’s proximity to the Pacific Ocean and its desirability as a place to live and visit contributes to the high land and housing costs relative to the surrounding region. The City, nevertheless, has been successful in maintaining its more affordable housing through the adoption of ordinances and special land use regulations. The City works proactively to preserve and maintain the existing housing resources in the City, including affordable housing. This commitment is underscored by the policies listed below. Policy 1.1 The City will continue to encourage the maintenance and improvement of the existing housing stock within the local neighborhoods. Policy 1.2 The City will assist in the preservation and enhancement of the housing supply available to senior citizens. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-2 Policy 1.3 The City will work to minimize the conversion of existing lower-cost rental housing in multiple-family developments to condominiums. Policy 1.4 The City will investigate potential sources of funding and other incentives that will assist in the preservation and renovation of older housing units. Policy 1.5 The City will continue to implement its current code enforcement procedures as a means to ensure the conservation and maintenance of existing housing resources in the City. Issue Area 2 - New Affordable Housing Development The City’s ability to directly fund the construction of affordable housing is constrained due to budget limitations. In addition, the construction of affordable public housing within the coastal zone would not represent an efficient expenditure of public money, given the high land and development costs. As a result, the City continues to be an active participant in the development of more affordable housing through land use regulations and other incentives. The City of Hermosa Beach will continue to assist in the development of new housing for all income groups through the following policies. Policy 2.1 The City will continue to promote the development of a variety of housing types and styles to meet the existing and projected housing needs of all segments of the community. Policy 2.2 The City will continue to encourage the development of safe, sound, and decent housing to meet the needs of varying income groups. Policy 2.3 The City will continue to implement the land use policy contained in the City’s General Plan, which provides for a wide range of housing types at varying development intensities. Policy 2.4 The City will continue to support and promote home ownership in the community. Policy 2.5 The City will continue to cooperate with other government agencies, citizen groups, and the private sector, in order to assist in meeting the existing and future demand for housing. Policy 2.6 The City will encourage the addition of ADU and JADU units as a strategy to provide new housing units for low- and moderate-income households. Issue Area 3 - Provision of Adequate Sites for New Housing The majority of the city was developed during the early 1900s. More intensive development has continued up to the present time. There are few vacant parcels of land remaining in the city, and the majority of the residential construction that has occurred involved the “recycling” of older structures. Nevertheless, the City of Hermosa Beach will continue to Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-3 explore potential sites for residential development as a means to achieve a variety and diversity of housing types. Policy 3.1 The City will evaluate new development proposals in light of the community's environmental resources, the capacity of public infrastructure to accommodate the projected demand, and the presence of environmental constraints. Policy 3.2 The City will continue to evaluate the General Plan and zoning to ensure residential development standards are adequate to serve future development. Policy 3.3 The City will continue to review current zoning practices for consistency with the General Plan as a way to facilitate new mixed- use development within or near the commercial districts. Issue Area 4 - Removal of Governmental Constraints to Housing In previous years, the City has been successful in the conservation of housing, especially affordable housing, through the implementation of land use ordinances and regulations. A key component of the City’s housing policy is to assist in the development of more affordable housing with the use of incentives and other measures. The City of Hermosa Beach will remain committed to the removal of governmental constraints through the following policies. Policy 4.1 The City will continue to abide by the provisions of the Permit Streamlining Act as a means to facilitate the timely review of residential development proposals. Policy 4.2 The City will work with prospective developers and property owners to assist in their understanding of the review and development requirements applicable to residential development in the city. Policy 4.3 The City will continue its efforts to educate the community regarding the development standards contained in the City of Hermosa Beach Zoning Ordinance, including the ability to provide ADU and JADU units on residential properties. Policy 4.4 The City will continue to evaluate its Zoning Ordinance and General Plan and remove governmental constraints related to development standards. These may include, but not be limited to, parking requirements, allowing affordable housing on commercial sites, new standards for mixed-use development, lot consolidation incentives, and senior housing requirements. Issue Area 5 - Equal Housing Opportunity Federal and State laws prohibit housing discrimination based on an individual’s race, ethnicity, religion or other characteristics. Enforcement of fair-housing laws generally occurs through the courts, though persons being discriminated against often lack the Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-4 resources to obtain the necessary legal protections. As a result, alternative means to obtain assistance must be made available. Towards this end, the City will continue to cooperate with other public agencies and non-profit organizations providing assistance in ensuring equal housing opportunities for all. Policy 5.1 The City will continue to provide information and referral services to regional agencies that counsel people on fair housing and landlord- tenant issues. Policy 5.2 The City will continue to cooperate with the County Housing Authority related to the provision of rental assistance to lower- income households. Policy 5.3 The City will continue to cooperate with other cities and agencies in the area in investigating resources available to provide housing for the area's homeless population. Policy 5.4 The City will support the expansion of shelter programs with adjacent cities and local private interests for the temporary accommodation of the homeless population. Issue Area 6 – Sustainable Housing Development The City works to promote sustainability and energy conservation in a number of ways. Plan Hermosa, the City’s General Plan, establishes a blueprint for sustainability and a low- carbon future, and provides a framework within which City regulations, programs, and projects work in unison to ensure that land use, transportation, and other aspects of City operations support sustainable development and energy conservation goals. Specifically for the residential sector of the community, the issue of energy conservation can be addressed at several levels: community-wide land use and transportation planning, building technology in both new construction and rehabilitation or remodeling of existing structures, and through lifestyle options such as walking and cycling. This is further supported by water conservation and sustainable neighborhood design. Policy 6.1 The City will support sustainable residential development through land use planning, building technology and lifestyle options. B. Housing Programs The programs listed below describe the actions the City intends to take to address the policy issues discussed above. The City’s main challenge in accommodating new residential development is its lack of vacant land. As a result, the vast majority of new housing development must occur through the “recycling” of older structures and redevelopment of underutilized parcels. The lack of financial resources, coupled with high land and development costs, will continue to be a constraint to the development of new affordable housing. As a result, the focus of these programs is on strategies to assist the private market in the development of affordable housing. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-5 Issue Area 1 - Conservation of Existing Affordable Housing 1. Code Enforcement Program Description: Chapter 8.28 of the Municipal Code provides for the abatement of safety and nuisance conditions relating to private property. To implement this requirement, the Code Enforcement Program emphasizes the following: • The City actively pursues Municipal Code violations on a complaint basis, with particular emphasis being placed on those areas clearly exposed to public view; • All necessary steps are taken to ensure that violations are corrected in an expeditious and voluntary manner; • Where appropriate, property owners are informed of available assistance programs for lower-income persons who may not be able to afford needed improvements or corrections; and • The City utilizes misdemeanor criminal prosecution only when attempts to gain voluntary compliance have failed. The Code Enforcement Program implements those sections of the Municipal Code related to property maintenance, including zoning, property maintenance, illegal units, trash container regulations, construction without permits, and sign regulations. The Code Enforcement Officer assists and makes recommendations to other City departments, such as conducting inspections of business licenses, home occupation offenses, and obstructions in public rights-of-way. Timing: This program is in place and will continue through the planning period. Funding: General Fund. 2. Conservation of Existing Affordable Housing Program Description: This program provides for the ongoing maintenance and conservation of the Marine Land Mobile Home Park located at 531 Pier Avenue. The 60- space park provides housing for extremely-low-, very-low- and low-income households. The Hermosa Court Recreational Vehicle Park with 19 pads at 725 10th Street also provides transitional housing space for those persons or households in transition from an RV to a more permanent home. The City's MHP Zoning District requires Planning Commission approval in order to add or delete spaces in the park, which helps to preserve affordability by discouraging conversion from single- to double-wide spaces. In 2013 the Mobile Home Park received over $111,000 of City funds and $1.2 million through the State’s Mobilehome Park Resident Owner Program (MPROP) and the Marineland Community Association, Inc., the resident association, purchased the park, ensuring the long-term security of this important affordable housing resource. In addition to mobile homes, existing apartments provide an important source of housing at lower cost than ownership housing. To reduce the potential impact of condominium conversions on low- and moderate-income residents of converted condominiums, Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-6 Chapter 17.22 of the Municipal Code establishes requirements including first right of refusal and relocation assistance for tenants. Timing: • To ensure that the amount of relocation assistance remains sufficient, review and update relocation reimbursement requirements annually should condominium conversion become a trend again in the future. (There has not been any condominium conversion in the City for more than a decade.) Funding: General Fund. Issue Area 2 - New Affordable Housing Development 3. Density Bonus and Other Incentives Program Description: State law requires cities to grant a density bonus and other incentives for qualifying affordable or senior housing developments. Section 17.42.100 of the Zoning Ordinance establishes standards and procedures for implementing State Density Bonus Law. In addition to State requirements, the City has adopted additional incentives that allow increased density when small parcels are combined to create a larger residential building site. State density bonus law has been amended from time to time to encourage the development of affordable and senior housing. The City has been implementing the State density bonus law. To provide clarity and help incentivize affordable housing development, the City will revise its density bonus regulations (Municipal Code Sec. 17.42.100) to comport with current State law. In addition, the City will inform developers and contractors of this incentive program through brochures at the public counter and information posted on the City’s website. Timing: • As part of the comprehensive Zoning Ordinance update, revise the City’s Density Bonus regulations by the end of 2023. • Continue to make information available on the density bonus program through brochures and the City website throughout the planning period. Funding: City General Fund. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-7 4. Affordable Housing Development Outreach and Assistance Program Description: This program includes investigation of potential funding sources and administrative support to assist private and non-profit organizations in the development and/or provision of affordable housing. The City will investigate the feasibility of expanding CDBG funding and Section 8 rental vouchers to qualifying households. The Section 8 program is one of the major sources of housing assistance for very-low- and extremely-low- income households. If the City is successful in obtaining increased CDBG funding and/or expanding Section 8 rental vouchers for residents, this information will be posted in the Community Center, on the City’s website, in handouts provided in the information kiosk in the City Hall lobby, and in the local library. Brochures will also be provided to local service clubs including the local “Meals on Wheels” program, local dial-a-ride service, the local recreation center, and emergency shelters in the area. The City will also provide incentives such as priority processing, fee waivers and deferrals, and modified development standards to projects with low- or moderate-income units, and will assist in preparing and processing grant applications for affordable housing projects to support the development of such units. Project sponsors will be encouraged to include units for extremely-low-income households where feasible. As part of the 2021 Housing Element update the City consulted with a variety of housing organizations to identify potential actions the City could take to facilitate the development of affordable housing, including to extremely-low-, very-low- and low-income households. Timing: • Annually pursue funding available to expand affordable housing opportunities in the City, especially housing for special needs populations, including extremely low income households. • Annually contact developers to explore affordable housing opportunities, especially for developers with experience in special needs housing. • As affordable units become available, conduct Affirmative Fair Marketing to agencies and organizations that serve low and moderate income households and special needs populations in the South Bay region. Funding: This program will be financed through the City’s General Fund and grant funds. 5. Facilitate Efficient Use of Sites that Allow High-Density Residential Development Program Description: This program will facilitate affordable housing development on sites that allow high-density residential development including reducing constraints posed by small lot sizes. a. While the City does not rely on small sites to meet its lower income RHNA, the City will continue to facilitate lot consolidation by: • Assisting affordable housing developers in identifying opportunities for lot consolidation using the City’s GIS system and property database; Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-8 • Continuing to expedite processing for lot consolidations processed concurrently with planning entitlements; • Continuing to provide a graduated density bonus for lower-income housing on small lots consolidated into a single building site according to the following formula (Zoning Ordinance Sec. 17.42.170): Combined Parcel Size Allowable Base Density* b. The City will continue to facilitate affordable housing development by: • Facilitating pre-application meetings; • Implementing incentives under the Density Bonus law; • Reducing property development standards (e.g. reduced setbacks, reduced parking standards) for small developments below the threshold of Density Bonus law when affordable units targeted to the elderly or persons with disabilities are provided; • Allowing deferral or waiver of City fees necessary to make the project cost- effective; • Facilitating permit processing so that developers can take advantage of funding opportunities; • Expediting permit processing through concurrent review through the planning and building processes; • Promoting programs on the City’s website and at the Planning Counter and biennially notify affordable housing developers of the City’s housing incentives. Timing: • By the end of 2023, publicize the lot consolidation incentives on the City’s website, at the Planning counter, and by notice to affordable housing providers. • Annually contact developers to communicate the various city incentives available to facilitate affordable housing development. • By the end of 2025, conduct an assessment of the City’s progress in providing affordable housing in the community. If the City is not making meaningful progress in its affordable housing goals, the City will develop additional incentives and strategies to expand affordable housing opportunities by the end of 2026. Additional incentives may include increasing the graduated densities for lot consolidation. Funding: General Fund. Accessory Dwelling Units Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-9 6. Accessory Dwelling Units Program Description: Accessory dwelling units (ADUs) provide an important source of affordable housing for seniors, young adults, care-givers and other low- and moderate- income segments of the population. In recent years, the State Legislature has adopted extensive changes to ADU law in order to encourage housing production. Among the most significant changes is the requirement for cities to allow one ADU plus one “junior ADU” on single-family residential lots by-right subject to limited development standards. The City further incentivizes ADU development by allowing a second ADU in lieu of the JADU. This flexibility facilitates the development of a range of ADU sizes to accommodate the diverse housing needs in the community. The City will review new legislation each year and update ADU regulations as necessary to ensure conformance with current State law. Timing: • Facilitate the development of 95 ADUs over the eight-year planning period, over the RHNA projection of 64 ADUs. • Monitor legislation and update City ADU regulations as necessary to maintain consistency with State law by the end of 2023. • Provide ADU standards, guidance, and resources on City website by the July 2024. For example, provide links to the California Housing Finance Agency (CalFHA) ADU grant program that provides $40,000 in pre-development funds to qualified homeowners. • By the end of 2025, develop incentives to facilitate the construction of ADUs. Incentives may include pre-approved plans, expedited review, assigned staff or office hours for ADU review and consultation, and/or reduced fees. • By the end of 2025, amend the Zoning Code to allow an additional JADU (beyond current allowance under State and local laws) within the existing square footage of larger homes. A survey of completed homes in the past four years revealed an average primary unit size of 3,500 square feet. The City proposes to allow an additional JADU in primary units over 3,000 square feet on single-family (R-1) lots, only when the additional JADU results in a net additional dwelling unit. The City aims to add 15 additional units using this method between 2026 and 2029. • Monitor the trend of ADU development every other year beginning in 2025. If by 2027, the ADU activities are not trending to meet the Housing Element goal, develop additional incentives (such as pursuing State funds or partnering with nonprofits) by July 2028 to further facilitate ADU development, or to identify replacement sites or rezoning, if necessary, to address any sites capacity shortfalls. • Promote the use of Housing Choice Vouchers for ADUs. Create a Fair Housing Factsheet on landlord responsibility as part of ADU application packet by July 2024. Funding: General Fund and grant funds, if available. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-10 7. Land Value Recapture Program Description: When land is rezoned to allow higher-intensity uses, the value of that property typically increases. Land value recapture refers to a policy requiring that a portion of the increased value be dedicated to a public benefit, such as affordable housing. The City adopted the Housing Element on December 21, 2021, including the Land Value Recapture Program as Program 7. This Program was introduced early in the Housing Element discussions and has been a part of the Housing Element update since inception. The Program was carried through to the revised adopted Housing Element on August 8, 2023. The Housing Element indicates that the City will perform a feasibility analysis on the Land Value Recapture Program. The premise of the Land Value Recapture Program is that properties that benefit from zoning actions to allow for residential development increase in value. In the South Bay region where Hermosa Beach is located, there is a decreasing desire to redevelop commercial properties and instead an increased desire to redevelop properties into mixed use or all residential. This desire correlates to property values. The Program levies a fee onto any residential development on properties that benefited from a zoning action that expanded their development ability. However, the property is exempt from the fee if the proposed residential development includes 15% very-low-, 15% low-, or 25% moderate- income units. The City worked with a real estate advisory company to evaluate the economic feasibility of Land Value Recapture. The analysis included sample business proformas indicating that the City’s proposed Land Value Recapture fee did not render development infeasible (i.e., that an acceptable return on investment would be possible), and even further that in some cases, construction affordable units and taking advantage of density bonus provisions amplified the return on investment. Timing: • Conducted feasibility study concurrent with rezoning in 2023 (see Program 9) and begin implementation in 2024. Funding: General Fund and grant funds, if available. 8. Housing Trust Funds Program Description: Housing trust funds are a dedicated source of financial assistance for affordable housing and can be funded through a variety of mechanisms, such as governmental grants, loans, charitable contributions, development fees, and land value recapture requirements (see also Program 7). The City has joined the South Bay Housing Trust Fund managed by the South Bay Council of Governments (SBayCOG). Specifically, the City has contributed SB 2 funds toward the Trust Fund. Timing: Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-11 • Annually pursue funding to provide for affordable housing, especially funding for special needs populations. As funding permits, continue to participate in the South Bay Housing Trust Fund. Funding: General Fund or grant funds, if available. Issue Area 3 - Provision of Adequate Sites for New Housing 9. Adequate Sites to Accommodate Housing Needs Program Description: State law requires cities to ensure that their land use plans and development regulations identify adequate sites with appropriate zoning to accommodate housing needs assigned through the Regional Housing Needs Assessment (RHNA) process. The City’s RHNA allocation is described in Section I.H of the Housing Element Technical Report, and an analysis of the City’s potential sites for additional housing is presented in Appendix B of the Technical Report. For the 6th cycle RHNA, the City has been allocated a RHNA of 558 units (232 very low, 127 low, 106 moderate, and 93 above moderate income units). With projected ADUs of 64 units over eight years, the City has a remaining RHNA obligation of 494 units (221 very low, 99 low, 102 moderate, and 72 above moderate income units). These units are being accommodated on sites rezoned or amended to allow mixed use and residential uses. At the State default minimum density of 20 units per acre, up to 24.7 acres of rezoning would be required. However, the City proposes to rezone two one-acre city-owned properties at a minimum density of 34 units per acre, and the majority of identified parcels will be rezoned to a minimum density of 25.1 units per acre. Overall, 23.5 acres of rezoning were identified. The sites analysis concluded that amendments to current land use and zoning designations are necessary in order to fully accommodate the RHNA. Specifically, the City identified a number of sites with potential for redevelopment into residential or mixed use residential development. An estimated 302 units can be accommodated on parcels larger than 0.5 acre (151 very low, 76 low, 44 moderate, and 31 above moderate income units). In addition, Sites 1 and 2 (St. Cross), while comprising of multiple parcels, are under common ownership and function as an integral campus. These two sites can accommodate 33 very low and 13 low income units. These large parcels and St. Cross site can accommodate the majority of the City’s remaining lower income RHNA, with 47 units (less than 15 percent) of the remaining lower income units required to be accommodated on consolidated sites. As discussed before, all small sites used for lower income RHNA are contiguous, under common ownership and with no more than two owners. Moderate and above moderate income housing can be developed on small parcels without consolidation. This program describes the actions the City will take to ensure that adequate sites are designated consistent with Government Code Sec. 65583(c)(1)(A) and 65583.2. • The City will process General Plan and zoning amendments, including the required CEQA analysis, for the selected sites. The rezoned sites shall include the following components pursuant to Government Code Sec. 65583.2(i): Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-12 o Permit owner-occupied and rental multi-family uses by-right for developments in which 20 percent or more of the units are affordable to lower-income households. o Permit the development of at least 16 units per site. o Permit a minimum of 20 dwelling units per acre. o Ensure that either: a) at least 50 percent of the shortfall of low- and very-low- income regional housing need can be accommodated on sites designated for exclusively residential uses; or b) if accommodating more than 50 percent of the low- and very-low-income regional housing need on sites designated for mixed uses, all sites designated for mixed uses must allow 100 percent residential use and require that residential uses occupy at least 50 percent of the floor area in a mixed-use project. • The City will report on the status of this program each year as part of the Annual Progress Report. Timing: • In November 2023, the City completed Zoning map and text amendments to provide adequate sites: o Rezone City-owned properties (Sites 10 and 11) from M-1 and O-S to Public Facilities with an allowable residential density of 34-50 units per acre. o Rezone Sites 1 and 2 (St. Cross Church properties) from R-1/R-2 to R-2A with an allowable residential density of 22-25 units per acre. o Amend Zoning Ordinance to add residential and mixed use development as permitted uses to C-2, C-3, SPA-7, SPA-8, and SPA-11 RHNA sites with an allowable residential density of 25.1-33 units per acre. o Amend Zoning Ordinance to establish a formal procedure to monitor for the No Net Loss of capacity for accommodating the RHNA, pursuant to SB 166. o Amend Zoning Ordinance to establish the replacement housing requirements when redevelopment occurs on RHNA sites where existing units occupied by or deed-restricted for lower income households are demolished. • In November 2023, the City amended the General Plan land use designation for Sites 1 and 2 in the inventory from Low Density to Medium Density Residential. • By the end of July 2024, complete text corrections regarding the rezoning above to ensure compliance with the minimum density of 20 du/ac. • Facilitate affordable housing development on City-owned sites: o Develop and release a Request for Proposal by the end of 2024 to solicit a public/private partnership for affordable housing (including housing for special needs populations). If disposition of site(s) is considered, the City will ensure compliance with the Surplus Land Act. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-13 o Complete design work, environmental review and associated approvals by the end of 2025. o Identify affordable housing developer(s) to partner with on affordable housing projects meeting the RHNA allocation of 100 affordable units on the City sites (30 very low, 45 low, and 25 moderate income units) on City-owned sites. o If the City is not successful in pursuing affordable housing on these sites and construction has not started by 2027, the City will pursue alternative actions (such as identifying alternative sites) by the end of 2028. • Beyond the sites required to accommodate the City’s RHNA, the City also embarked on an effort starting in 2022 to introduce residential development along all major commercial corridors. As of November 2023, the City completed the zoning text changes creating mixed use (residential/ commercial) development standards in C-2 and C-3 zones, and allows mixed use/residential only in the newly created the Housing Element Sites Overlay (Sites Inventory sites) with a density range of 25.1 to 33 du/ac. By the end of 2026, the City will create additional mixed use overlays to include other areas in the major commercial corridors, with a minimum density of at least 20 du/ac. The City anticipates this will result in 100 units above the Housing Element Sites Overlay capacity. Funding: General Fund; grant funds. Issue Area 4 - Removal of Governmental Constraints to Housing 10. Housing for Persons with Special Needs Program Description: The Zoning Ordinance encourages the provision of housing for persons with special needs, including regulations and procedures related to group homes, emergency shelters, transitional/supportive housing and persons with disabilities. The City is in the process of updating the Zoning Ordinance. Specific changes to address special needs housing include: • Emergency Shelters: Revise parking standard based on staffing level only. Designate R-3 (Multi-Family Residential) as zone for emergency shelters by right without discretionary review. Expand the definition of emergency shelters to include interim housing options pursuant to State law (AB 2339), including bridge housing, navigation centers, and respite and recuperative care. Review and revise or remove the bed limit based on consultation with service providers. • Transitional and Supportive Housing: These uses are currently permitted in all residential zones as similar uses in the same zones. Revise the Zoning Ordinance to similarly permit transitional and supportive housing in all zones that permit residential uses. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-14 • Supportive Housing: Recent changes to State law (AB 2162 of 2018) require that supportive housing (up to 50 units) meeting specific requirements be a use by-right in zones where multi-family and mixed uses are permitted, including non-residential zones permitting multi-family uses. Furthermore, if the development is located within half-mile from transit, no minimum parking can be required. • Residential Care Facilities (for seven or more persons): Revise the CUP review process for large care facilities to an Administrative Permit in all residential zones, with a lower fee, and establish findings for approval that are objective and provide certainty in outcomes similar to other residential uses of the same type in the same zone. • Low Barrier Navigation Center: In 2019 the State Legislature adopted AB 101 establishing requirements related to local regulation of low barrier navigation centers, which are defined as “Housing first, low-barrier, service-enriched shelters focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” Revise the Zoning Ordinance to permit low barrier navigation centers meeting specified standards by- right in areas zoned for mixed use and in nonresidential zones permitting multi-family uses. • Reasonable Accommodation: In the October 2023 Zoning Ordinance amendment, the City removed the public hearing requirement for reasonable accommodation requests and required finding relating to traffic and parking impacts. However, the finding relating to neighborhood character remained. In November 2023, the City adopted the Housing Element Zoning Text Amendment and removed the finding regarding neighborhood character to ensure objectivity. (This action is completed.) • Live/Work Housing: The City’s Economic Subcommittee studied the increased need for live/work housing. Develop strategies for providing live/work housing and 15- minute neighborhoods. Timing: • Zoning Code amendments by the end of 2024. • Develop strategies for live/work housing by 2025. Funding: General Fund and grants 11. Streamline Housing Permit Processing Program Description: As part of the comprehensive Zoning Ordinance update the City will evaluate methods to simplify the housing development review process such as eliminating the conditional use permit requirement for multi-family, condominium and mixed-use developments and reviewing the Precise Development Plan (PDP) process including what is reviewed, typical findings and approval procedures by zone and housing type, and impacts as potential constraints on housing supply and affordability. Consistent with new transparency laws, zoning, development standards and fees are posted on the City website. The Zoning Ordinance update will also include revisions to streamline PDP process Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-15 and develop objective standards to minimize constraints on housing supply and affordability. In addition, the City will establish procedures to process SB 35 projects. Timing: • Zoning Ordinance update by the end of 2023 to: o Streamline the Precise Development Plan review process as discussed in the Housing Element Technical Report. o Develop object standards for project review. • By the end of 2023, establish SB 35 procedures. • Annually update City website to provide current information on zoning, development standards and fees. • By the end of 2024, update Subdivision Ordinance to address CUP requirement for condominium projects. Funding: General Fund and grants. 12. Remove Governmental Constraints Program Description: As part of this Housing Element update, the City has evaluated the effectiveness of its development standards and procedures in facilitating residential and mixed use developments. Specifically, the City’s parking standards for multi-family housing does not support a variety of unit types and sizes. Subsequent to the adoption of the Housing Element, the City will review any Coastal Land Use Plan policies that must be updated and submit to the California Coastal Commission for certification. The timeline will be more apparent once the amendments have been submitted. Timing: • As part of comprehensive Zoning Ordinance update by the end of 2023, revise parking standards to facilitate a variety of unit sizes and types, such as smaller units, senior units, and mixed use developments, and offer alternative options such as shared parking arrangements for mixed use development. (This task has already been completed as part of the October 2023 Zoning Ordinance update. Parking for small units (zero to one-bedroom) has been reduced from two spaces per unit to 1.5 spaces per unit. Transitional and supportive housing, which is usually smaller in size, the parking requirements mirror that of regular residential uses, except when such housing is located within one-half mile of transit. In that case, no parking is required.) By the end of 2024, the City will revise the parking standards to remove the guest parking requirements. The currently adopted parking standards will remain but will be indicated as inclusive of guest parking. • By 2024, submit updated Coastal Land Use Policies to the CCC for certification. Funding: General Fund and grants. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-16 Issue Area 5 - Equal Housing Opportunity 13. Affirmatively Furthering Fair Housing Program Description: As a participating city in the Los Angeles County CDBG program, Hermosa Beach has access to services for fair housing outreach, education, and counseling on housing discrimination complaints. The City will continue to advertise the fair housing program through placement of fair housing service brochures at the public counter, at the Senior Center, through the City's newsletter, and on the City website. Apartment owners and managers are provided with current information about fair housing issues, rights and responsibilities. The Apartment Association of Greater Los Angeles conducts seminars on State, Federal and local Fair Housing laws and compliance issues. In addition, the City will: • Ensure that all development applications are considered, reviewed, and approved without prejudice to the proposed residents, contingent on the development application’s compliance with all entitlement requirements. • Accommodate persons with disabilities who seek reasonable waiver or modification of land use controls and/or development standards pursuant to procedures and criteria set forth in the applicable development regulations. • Work with the County to implement the regional Analysis of Impediments to Fair Housing Choice and HUD Consolidated Plan. • Facilitate public education and outreach by posting informational flyers on fair housing and housing resources at public counters, libraries, and on the City’s website and at Senior Center. Expand the City’s outreach efforts to reach a broader audience by: o Advertising housing-related initiatives and programs in newspapers that have broader circulation beyond city limits (such as the Daily Breeze. o Making hard copies of documents to assist the technology challenged. o Expanding notifications to agencies and organizations that serve residents in the South Bay region. • Conduct at least one public meeting annually to discuss housing-related issues. Conduct public meetings at suitable times, accessible to persons with disabilities, and near public transit. The utilizes multi-media platforms to outreach to lower and moderate income populations and persons with special needs. The City partners with community agencies for outreach at community events on weekends and at public locations. For community workshops and meetings, the City offers to the degree possible hybrid attendance depending on the setting. Usually, this includes a minimum of two (2) methods of attendance consisting of in-person and one other method. Resources will be invested to provide interpretation and translation services when requested at public meetings when feasible. • Encourage community and stakeholder engagement during development decisions. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-17 • Collaborate with home share programs and promote programs to residents. Home share programs available to South Bay residents include: o Home Share South Bay, a program offered by the South Bay Cities Council of Governments (SBCCOG), is a community solution that matches homeowners with renters seeking affordable housing in the South Bay. o Affordable Living for the Aging (ALA) offers a home share program. ALA screens, matches, and monitors two people to share a home based on living preferences and compatibility. Arrangements may be rent or a combination of rent and daily living support such as cleaning, cooking, or transportation. Timing: This program is ongoing and will continue through the planning period. Funding: General Fund. 14. Neighborhood Improvement Given the City’s compact size, the City’s strategies for AFFH Placed-Based Strategies for neighborhood improvements are focused on ensuring that every area in the City receives systematic investment while also ensuring that every area in the City is connected to amenities, such as services, businesses, and recreation across the City as well as regionally. Certain programs are available for senior and disabled residents as well. Community Development Block Grant (CDBG) The City uses CDBG funds to further mobility across all areas of the City by retrofitting existing intersections for disabled-accessible crosswalks and ramps. Safe Routes to School The City, in concert with the Hermosa Beach City School District, has a Safe Routes to School program. The Program includes educational materials, outreach, and a reporting system to ensure that routes to school are safe. https://www.hermosabeach.gov/our-government/city-departments/police/programs- tips/safe-routes-to-school Aging in Place The City of Hermosa Beach offers a tax rebate and certain exemptions (sewer, lighting assessment, utility user tax) for income-qualified elderly or disabled residents. https://www.hermosabeach.gov/our-government/finance-department/finance- administration/rebates The City offers a House Check program for senior citizens, including those with Alzheimer’s to ensure that these residents are safe. https://www.hermosabeach.gov/our- government/police-department/not-alone-program-alzheimer-checklist-vacation-house- checks Beach Cities Health District (BCHD) has a Care Management Program to ensure senior receive services they need to continue living in their home. BCHD also pairs volunteers up with senior to assist them on errands so they can continue to live in their homes. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-18 Maintenance of Property Senior Grant Program – Los Angeles County Development Authority – senior homeowners for $15,000. Examples are livability and age in place, including deferred maintenance repairs. BCHD’s Senior Resources includes assisting seniors with mental health issues that may affect an individual’s ability to maintain and upkeep their home. Capital Improvement Program (CIP) The City’s CIP projects which are under currently construction are focused on public amenities that are used by all residents, including repair of the Municipal Pier, accessible beach routes, sidewalk and accessible curb ramps, and repair of City park restrooms. https://hermosabeach.maps.arcgis.com/apps/Shortlist/index.html?appid=d4 f16ff6c37544a0b8bd0dc0a725452f The City’s 5-year CIP includes repair of a wide variety of public amenities. https://hermosabeach.maps.arcgis.com/apps/Shortlist/index.html?appid=d4f16ff6c3754 4a0b8bd0dc0a725452f Clean-up Events The City benefits from clean-up events through sponsoring and also in partnership with many organizations. The City of Hermosa Beach, Friends of the Parks-Hermosa Beach, the Surfrider Foundation, are some examples. These clean-up events restore public amenities for residents. Recent events headed by the Mayor of Hermosa Beach included a painting of classrooms in a park facility, new landscaping at park facilities, and beach clean-ups. Timing: • Annually during budgeting process, prioritize improvements and services that have the most urgent need. Funding: General Fund and grant funds. Issue Area 6 – Sustainable Housing Development 15. Sustainable Housing Development Program Description: In 2017 the City adopted a comprehensive update to the General Plan (PLAN Hermosa). One of the primary themes of the new General Plan is community sustainability. Chapter 4: Sustainability + Conservation establishes state-of-the-art policies to improve sustainability and energy conservation in residential development. Those policies will continue to guide City decision-making in land use decisions and the development review process. Funding: General Fund. Timing: Throughout the planning period. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-19 C. Quantified Objectives Table II-1 describes the City’s quantified objectives for new construction, rehabilitation and conservation during the planning period. Table II-1 Quantified Objectives 2021-2029 New construction 116 116 127 106 93 558 Rehabilitation 10 10 Conservation (1) 60 60 1. Mobile homes D. Summary of AFFH Actions The table below summarizes the City’s actions to affirmatively further fair housing. This table supplements the descriptions, actions, and timing for citywide programs with targeted actions for AFFH. Implementation of the housing programs and detailed shown in the table below are both considered commitments of the City of Hermosa Beach. Table II-2 Affirmatively Furthering Fair Housing Summary Actions Program Specific Commitment Contributing Factors: Lack of fair housing service records Lack of fair housing testing Lack of monitoring Affordable Housing Development and Outreach affordable housing organizations regarding residential organizations serving low and moderate income and special needs households in the South Bay region development of 359 lower income units Marketing as affordable housing become Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-20 Program Specific Commitment Program 13: AFFH outreach by posting informational flyers on fair housing and housing resources at public counters, libraries, on the City’s website, and social media (FB, Twitter, Instagram, Next Door, and Tik Tok), and paid advertising such as Daily Breeze – engage a more diverse population, especially relying on social media platforms highest resource areas) development of 558 units, including 359 lower income units discuss housing-related issues. Conduct meetings at suitable times, accessible to persons with disabilities, and near public transit. Resources will be invested to provide interpretation and translation services when requested at public meetings year stakeholder engagement during development decisions. during development Marketing as affordable housing units become available. become available organizations serving low and moderate income and special needs households in the South Bay New Opportunities in High Resource Areas – High Priority Contributing Factors: High land, rental, and ownership housing costs Density Bonus and Other Incentives and make information available on the density bonus program through brochures and the City 2023 highest resource areas) construction of 359 lower income units Facilitate Efficient Use of Sites that Allow High-Density Residential affordable housing development through implementation of strategies outlined in Program 5. and mixed use zones consolidation to facilitate development of 100 multi- family units Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-21 Program Specific Commitment Program 6: ADUs City ADU regulations as necessary to maintain consistency with State 2023 neighborhoods construction of 95 ADUs, including 15 additional JADUs Choice Vouchers for AUDs. Create a fair housing factsheet to additional JADU on R-1 lots if the primary unit is at least 3,000 square feet and the additional JADU will result in a net increase in 2025 Adequate Sites to Accommodate Housing Needs amendments to provide adequate sites for RHNA. 2023 commercial corridors e 100% of the shortfall of sites to accommodate the city’s remaining housing need of 359 units for very low and low income Housing Mobility– High Priority Contributing Factors: High land, rental, and ownership housing costs ADUs Choice Vouchers for AUDs. Create a fair housing factsheet to 2023 neighborhoods construction of 95 ADUs additional JADU on R-1 lots if the primary unit is at least 3,000 square feet and the additional JADU will result in a net increase in 2025 Adequate Sites to Accommodate Housing Needs Sites Overlay capacity. 2026 corridors development of 100 units along commercial corridors Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-22 Program Specific Commitment Program 10: Housing for Persons with Special Needs amendments outlined in Program 10 to promote housing for special needs groups. 2023 property and along commercial corridors construction of 100 units for special needs populations, including 50 units of senior housing on City-owned increased need for live/work – develop strategies for live/work housing, co-working space, and 15-minute neighborhood, etc. commercial corridors and in light manufacturing development of 50 live/work units Affirmatively Furthering Fair Housing outreach by posting informational flyers on fair housing and housing resources at public counters, libraries, and on the City’s website and at Senior Center. Expand the City’s outreach efforts to reach a broader audience by: o Advertising housing-related initiatives and programs in newspapers that have broader circulation beyond city limits (such as the Daily Breeze. o Making hard copies of documents to assist the technology challenged. o Expanding notifications to agencies and organizations that serve residents in the South Bay 2024 neighborhoods referrals to services to 20 households, with the goal of reaching a broader population via other media platforms. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-23 Program Specific Commitment Collaborate with home share programs and promote programs to residents. Home share programs available to South Bay residents include: o Home Share South Bay, a program offered by the South Bay Cities Council of Governments (SBCCOG), is a community solution that matches homeowners with renters seeking affordable housing in the South Bay. o Affordable Living for the Aging (ALA) offers a home share program. ALA screens, matches, and monitors two people to share a home based on living preferences and compatibility. Arrangements may be rent or a combination of rent and daily living support such as cleaning, Neighborhood Improvements activities and neighborhood improvements: • CDBG mobility access improvements at crosswalks and ramps • Safe routes to school budgeting process median household income and along commercial corridors and manufacturing areas where future housing improvement projects Affirmative Marketing affordable housing projects or projects with affordable units to implement an Affirmative Fair Marketing Plan to outreach to a diverse population, extending outreach to nearby communities in the South Bay, especially to workers in the City who do not live in the City. These affirmative marketing materials will include contact information for housing service providers (such as the home share programs) and non- profit housing organizations that serve lower income tenants in the units are developed future occupants of affordable units from outside Hermosa Beach, including those who work but do not live in the City Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-24 Program Specific Commitment Develop materials for Hermosa Beach residents who may be seeking tenants for their ADUs, which will be provided to ADU applicants at the time they apply for a building permit or ADU permit. These affirmative marketing materials will include contact information for housing service providers (such as the home share programs) and non- profit housing organizations that serve lower-income tenants in the surrounding region. Interested residents can use these materials to find prospective tenants in a larger market area beyond city limits, including residents of all races, ethnicities, ages, and 2025 neighborhoods and high resource areas (citywide) future ADU occupants from outside Hermosa Beach, including those who work but do not live in the City Monitoring and effectiveness in April and include information in annual report to HCD. If the City is not on track to meet its housing mobility goals by 2027, the City will consider alternative land use strategies and make necessary amendments to zoning or other land use documents to facilitate a variety of housing choices, including but not limited to, strategies that encourage missing middle zoning (small-scale multi- unit projects up to four-plexes), adaptive reuse, within six months, if sufficient progress toward this quantified objective is not being April (including 15 additional JADUs) Home match for 20 households Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-25 Program Specific Commitment Contributing Factors: Unaffordable rental prices Availability of affordable housing Neighborhood Improvements activities and neighborhood improvements: • Aging in place services, including tax rebates and exemptions for assessments • Promote property maintenance assistance, such as LACDA senior repair grants • Capital improvements for budgeting process median household income and along commercial corridors and manufacturing areas where future housing is expected exemptions for seniors and disabled households Conduct 8 neighborhood cleanup events Tenant Protection and Anti-Displacement– High Priority Contributing Factors: Lack of fair housing service records Lack of fair housing testing Lack of monitoring Conservation of Existing Affordable reimbursement requirements for relocation assistance. displaced households compensated. Housing Trust Funds provide for affordable housing and as funding permits, continue participation in the South Bay Housing Trust Fund Region the development of 5 affordable housing units in Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Policy Plan – CERTIFIED August 1, 2024 Adopted December 21, 2021/ August 8, 2023 Revised January, May, June 2024 II-26 Program Specific Commitment AFFH: Homelessness Plan Homelessness Plan, including outreach for persons experiencing homelessness: • PATH provides dedicated outreach teams for homeless assistance, and also connects individuals with medical and mental healthcare, interim housing, veteran services, employment services and providing benefits enrollment and advocacy. • Through PATH, the City has an Outreach Hotline. • The LA County MET performs outreach and assessments on individuals with mental health needs, and provides linkages to services. • City staff meets quarterly with regional outreach representatives from PATH and Harbor Interfaith Services to share relevant information, assess service connections made, and identify community “hot spots” where additional attention is needed. • In partnership with SBCCOG, facilitate landlord outreach/education regarding opportunities for housing individuals at- emphasis on southwest section of the City persons experiencing homelessness through outreach efforts annually. Homelessness Plan to support response efforts and special circumstances. This fund can cover items such as miscellaneous services and materials, motel vouchers, transit vouchers, laundry services, hygiene emphasis on southwest section of the City persons experiencing homelessness annually. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 CITY OF HERMOSA BEACH HOUSING ELEMENT TECHNICAL REPORT 2021-2029 Adopted December 21, 2021 Re-adopted (with revisions) August 8, 2023 Revisions (January, May, and June 2024) EXHIBIT B Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 This page intentionally left blank Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 i Contents I. Housing Needs Assessment ............................................................................................. I-1 A. Population Characteristics................................................................................... I-1 1. Population Growth Trends ........................................................................... I-1 2. Age Characteristics ..................................................................................... I-1 B. Household Characteristics ................................................................................... I-2 1. Household Tenure and Size ......................................................................... I-2 2. Overcrowding .............................................................................................. I-4 3. Income and Overpayment ........................................................................ I-5 C. Employment .......................................................................................................... I-8 D. Housing Stock Characteristics ............................................................................. I-9 1. Housing Type and Growth Trends ............................................................... I-9 2. Housing Age and Conditions .................................................................... I-10 3. Vacancy ..................................................................................................... I-12 4. Housing Cost .............................................................................................. I-13 E. Special Needs ..................................................................................................... I-14 1. Persons with Disabilities .............................................................................. I-15 2. Elderly .......................................................................................................... I-19 3. Large Households ...................................................................................... I-20 4. Female-Headed Households .................................................................... I-21 5. Farm Workers .............................................................................................. I-23 6. Homeless Persons ....................................................................................... I-23 F. Assisted Housing at Risk of Conversion ............................................................. I-27 G. Low- and Moderate-Income Housing in the Coastal Zone ............................ I-27 H. Future Housing Needs ........................................................................................ I-27 1. Overview of the Regional Housing Needs Assessment ........................... I-27 2. Hermosa Beach 2021-2029 Housing Needs ............................................. I-28 II. Resources and Opportunities ......................................................................................... II-1 A. Land Resources ................................................................................................... II-1 B. Financial and Administrative Resources ............................................................ II-1 1. State and Federal Resources ..................................................................... II-1 2. Local Resources .......................................................................................... II-2 C. Sustainable Housing Development .................................................................... II-2 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 ii 1. AB 32 and SB 375 ......................................................................................... II-2 2. Energy Conservation Opportunities........................................................... II-3 III. Constraints ...................................................................................................................... III-1 A. Governmental Constraints ................................................................................. III-1 1. Transparency with Development Regulations ......................................... III-1 2. Land Use Plans and Regulations ............................................................... III-1 3. Development Processing Procedures .................................................... III-15 4. Development Fees and Improvement Requirements .......................... III-17 B. Non-Governmental Constraints ....................................................................... III-19 1. Environmental Constraints ....................................................................... III-19 2. Infrastructure Constraints ......................................................................... III-19 3. Land Costs ................................................................................................ III-20 4. Construction Costs ................................................................................... III-20 5. Cost and Availability of Financing .......................................................... III-21 6. Timing and Density ................................................................................... III-21 Appendix A – Evaluation of the 2014-2021 Housing Element Appendix B – Residential Land Inventory Appendix C – Public Participation Summary Appendix D -- Affirmatively Furthering Fair Housing Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 iii List of Tables Table I-1 Extremely-Low-Income Households by Race and Tenure Hermosa Beach .................. I-5 Table I-2 Cost Burden by Income Category and Tenure Hermosa Beach ................................... I-6 Table I-3 Income Categories and Affordable Housing Costs – Los Angeles County ................. I-13 Table I-4 Disability by Employment Status – Hermosa Beach ........................................................ I-17 Table I-5 Developmental Disabilities – Hermosa Beach ................................................................. I-18 Table I-6 Agricultural Employment – Hermosa Beach .................................................................... I-23 Table I-7 Regional Housing Needs 2021-2029 – Hermosa Beach .................................................. I-28 Table II-1 Land Inventory Summary ....................................................... Error! Bookmark not defined. Table III-1 Residential Land Use Categories – Hermosa Beach General Plan ............................... III-2 Table III-2 Residential Development Standards by Zone ................................................................. III-2 Table III-3 Permitted Residential Development by Zone ................................................................. III-4 Table III-4 Residential Parking Requirements ................................................................................... III-10 Table III-5 City of Hermosa Beach Planning & Building Fees ......................................................... III-18 List of Figures Figure I-1 Population Growth 2000-2020 – Hermosa Beach vs. SCAG Region ............................... I-1 Figure I-2 Population by Age and Gender – Hermosa Beach ......................................................... I-2 Figure I-3 Housing Tenure – Hermosa Beach vs. SCAG Region ........................................................ I-3 Figure I-4 Housing Tenure by Age – Hermosa Beach ........................................................................ I-3 Figure I-5 Household Size by Tenure – Hermosa Beach..................................................................... I-4 Figure I-6 Overcrowding by Tenure – Hermosa Beach vs. SCAG Region ....................................... I-4 Figure I-7 Rent as Percentage of Income – Hermosa Beach ........................................................... I-6 Figure I-8 Rent as Percentage of Income by Income Category – Hermosa Beach ..................... I-7 Figure I-9 Mortgage Cost as Percentage of Income by Income Category – Hermosa Beach ..................................................................................................................................... I-7 Figure I-10 Employment by Industry – Hermosa Beach ....................................................................... I-8 Figure I-11 Employment by Occupation – Hermosa Beach ............................................................... I-9 Figure I-12 Housing by Type – Hermosa Beach vs. SCAG Region .................................................... I-10 Figure I-13 Housing Growth Trends by Type – Hermosa Beach ........................................................ I-10 Figure I-14 Housing Units by Year Built – Hermosa Beach vs. SCAG Region ................................... I-11 Figure I-15 Substandard Housing Units – Hermosa Beach vs. SCAG Region .................................. I-12 Figure I-16 Vacant Units by Type – Hermosa Beach vs. SCAG Region ........................................... I-12 Figure I-17 Median Existing Home Prices – Hermosa Beach vs. SCAG Region .............................. I-14 Figure I-18 Disabilities by Type – Hermosa Beach .............................................................................. I-16 Figure I-19 Disabilities by Type for Seniors (65+) – Hermosa Beach .................................................. I-16 Figure I-20 Elderly Households by Income and Tenure – Hermosa Beach ...................................... I-20 Figure I-21 Household Size by Tenure – Hermosa Beach................................................................... I-21 Figure I-22 Female Headed Households – Hermosa Beach ............................................................. I-22 Figure I-23 Female Headed Households by Poverty Status – Hermosa Beach .............................. I-22 Figure I-24 Los Angeles County Homeless Service Planning Areas .................................................. I-26 Figure III-1 Racial Characteristics – Hermosa Beach ............................. Error! Bookmark not defined. Figure III-2 Racially/Ethnically Concentrated Areas of Poverty – Hermosa Beach . Error! Bookmark not defined. Figure III-3 Poverty Status – Hermosa Beach .......................................... Error! Bookmark not defined. Figure III-4 Population with a Disability – Hermosa Beach .................... Error! Bookmark not defined. Figure III-5 TCAC/HCD Opportunity Map ............................................... Error! Bookmark not defined. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-1 I. HOUSING NEEDS ASSESSMENT This chapter examines general population and household characteristics and trends, such as age, race and ethnicity, employment, household composition and size, household income, and special needs. Characteristics of the existing housing stock (e.g., number of units and type, tenure, age and condition, costs) are also addressed. Finally, the City’s projected housing growth needs based on the 2021-2029 Regional Housing Needs Assessment (RHNA) are examined. The Housing Needs Assessment utilizes the most recent available data from the U.S. Census, the California Department of Finance (DOF), the California Employment Development Department (EDD), the Southern California Association of Governments (SCAG) and other relevant sources. Supplemental data were obtained through field surveys and from the California Department of Finance. A. Population Characteristics 1. Population Growth Trends Located 17 miles southwest of Los Angeles at the southern end of Santa Monica Bay, the 1.3-square-mile City of Hermosa Beach was incorporated in 1907. The city grew very slowly during the 1990s, having grown less than 2% from 1990 to 2000. Most of the growth that has recently occurred has consisted of density increases on existing parcels, through demolition and replacement of existing homes. Hermosa Beach had a 2020 population of 19,614 according to the California Department of Finance. From 2000 to 2020 Hermosa Beach had an annual growth rate of 0.3% compared to 0.7% for the SCAG region.(see Figure I-1). As an essentially built-out city, there continue to be few opportunities for growth, except through redevelopment/infill on existing parcels. Figure I-1 Population Growth 2000-2020 – Hermosa Beach vs. SCAG Region 2. Age Characteristics Housing needs are influenced by the age characteristics of the population. Different age groups have different housing needs based on lifestyles, family types, income levels, and Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-2 housing preference. Figure I-2 shows the age distribution of Hermosa Beach residents by gender. The population of Hermosa Beach is 53.7% male and 46.3% female. The share of the population of Hermosa Beach which is under 18 years of age is 17.2%, which is lower than the regional share of 23.4%. Hermosa Beach's seniors (65 and above) make up 11.7% of the population, which is lower than the regional share of 13%. Figure I-2 Population by Age and Gender – Hermosa Beach B. Household Characteristics 1. Household Tenure and Size Household characteristics are important indicators of the type and size of housing needed in a city. The Census defines a “household” as all persons occupying a housing unit, which may include single persons living alone, families related through marriage or blood, or unrelated persons sharing a single unit. Persons in group quarters such as dormitories, retirement or convalescent homes, or other group living situations are included in population totals, but are not considered households. Housing tenure (owner vs. renter) is an important indicator of the housing market. An adequate supply of housing units available both for rent and for sale is desirable in order to accommodate a range of households with varying incomes, family sizes and composition, and lifestyles. Figure I-3 provides recent Census estimates of the number of owner-occupied and renter-occupied units in the city as compared to the SCAG region as a whole. This table reveals a higher proportion of renters in the city, which is not unusual for beach communities. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-3 Figure I-3 Housing Tenure – Hermosa Beach vs. SCAG Region Figure I-4 shows that tenure varies by age group, with younger residents more likely to rent as compared to those in the 45+ age groups who are more often homeowners. Figure I-4 Housing Tenure by Age – Hermosa Beach Figure I-5 illustrates the range of household sizes in Hermosa Beach for owners, renters, and overall. The most commonly occurring household size is of two people (37.1%) and the second-most commonly occurring household is of one person (36.7%). Hermosa Beach has a higher share of single-person households than the SCAG region overall (36.7% vs. 23.4%) and very few large households with more than 5 persons. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-4 Figure I-5 Household Size by Tenure – Hermosa Beach 2. Overcrowding Overcrowding is often closely related to household income and the cost of housing. The U.S. Census Bureau considers a household to be overcrowded when there is more than one person per room, excluding bathrooms and kitchens, with severe overcrowding when there are more than 1.5 residents per room. Overcrowded households are usually a reflection of the lack of affordable housing (see Section D.4 starting on page I-13 below for a detailed definition of “affordable” housing). Figure I-6 summarizes recent overcrowding data for Hermosa Beach and the SCAG region as a whole. Figure I-6 Overcrowding by Tenure – Hermosa Beach vs. SCAG Region Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-5 Based on U.S. Census standards, Hermosa Beach residents live in less crowded housing conditions than the region as a whole. In Hermosa Beach, 20 owner-occupied and 109 renter-occupied households had more than 1.0 occupants per room, which meets the ACS definition for overcrowding. No owner-occupied households and 88 renter-occupied households had more than 1.5 occupants per room, which meets the ACS definition for severe overcrowding. 3. Income and Overpayment Extremely-low-income households are defined as those with incomes of 30% or less of areawide median income (AMI). Table I-1 shows the number of extremely-low-income households in Hermosa Beach by race and tenure. Table I-1 Extremely-Low-Income Households by Race and Tenure Hermosa Beach According to State housing policy, overpaying (or “cost burden”) occurs when housing costs exceed 30% of gross household income. Table I-2 displays recent HUD estimates for overpayment by income category and tenure for Hermosa Beach residents. As shown in this table, extremely-low-income and very-low-income households experienced the highest rates of overpayment. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-6 Table I-2 Cost Burden by Income Category and Tenure Hermosa Beach Across Hermosa Beach's 4,608 renter households, 1,306 (28.3%) spend 30% or more of gross income on housing compared to 55.3% in the SCAG region. Additionally, 704 renter households in Hermosa Beach (15.3%) spend 50% or more of gross income on housing cost, compared to 28.9% in the SCAG region (Figure I-7). Figure I-7 Rent as Percentage of Income – Hermosa Beach While the previous table breaks down cost burden by area-relative income, Figure I-8 shows percentage of income spent on rent by income category. As one might expect, the general trend is that lower-income households spend a higher share of income on Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-7 housing (often more than 50%) while high-income households are more likely to spend under 20% of income on housing. Figure I-8 Rent as Percentage of Income by Income Category – Hermosa Beach Figure I-9 shows the percentage of income spent on mortgage costs for Hermosa Beach homeowners by income category. As one might expect, the general trend is that lower- income households spend a higher share of income on housing costs, while high-income households may spend a lower share of income on housing. Figure I-9 Mortgage Cost as Percentage of Income by Income Category – Hermosa Beach Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-8 C. Employment Employment is an important factor affecting housing needs within a community. The jobs available in each employment sector and the wages for these jobs affect the type and size of housing residents can afford. Hermosa Beach has 12,290 workers living within its borders who work across 13 major industrial sectors. Figure I-10 shows that the most prevalent industry is Professional Services with 2,327 employees (18.9% of total) and the second most prevalent industry is Education & Social Services with 1,968 employees (16% of total). Figure I-10 Employment by Industry – Hermosa Beach In addition to understanding the industries in which the residents of Hermosa Beach work, Figure I-11 shows the types of jobs they hold. The most prevalent occupational category in Hermosa Beach is Management, in which 7,580 (61.7% of total) employees work. The second-most prevalent type of work is in Sales, which employs 2,966 (24.1% of total) in Hermosa Beach. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-9 Figure I-11 Employment by Occupation – Hermosa Beach D. Housing Stock Characteristics This section presents an evaluation of the characteristics of the community’s housing stock and helps in identifying and prioritizing needs. A housing unit is defined by the Census Bureau as a house, apartment, mobile home, or group of rooms, occupied as separate living quarters, or if vacant, intended for occupancy as separate living quarters. 1. Housing Type and Growth Trends Figure I-12 shows detailed information on the housing stock in Hermosa Beach. The most prevalent housing type in Hermosa Beach is single-family detached with 43.8% of all units in the city. The share of all single-family units in Hermosa Beach is 52%, which is lower than the 61.7% share in the SCAG region. Out of the total housing units in Hermosa Beach, there are 9,565 occupied-units, which equates to a 5.2% total vacancy rate. The average household size (as expressed by the population to housing unit ratio) is 2.049. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-10 Figure I-12 Housing by Type – Hermosa Beach vs. SCAG Region Over the past two decades there has been more construction of single-family residential units than multi-family residential units in Hermosa Beach. During the period 2000 to 2020, single-family units increased by 231 while the number of multi-family units decreased by 114. Mobile and manufactured homes increased by 135 during this period. Figure I-13 Housing Growth Trends by Type – Hermosa Beach 2. Housing Age and Conditions Housing age is often an important indicator of housing condition. Housing units built prior to 1978 before stringent limits on the amount of lead in paint were imposed may have interior or exterior building components coated with lead-based paint. Housing units built before 1970 are the most likely to need rehabilitation and to have lead-based paint in deteriorated condition. Lead-based paint becomes hazardous to children under age six and to pregnant women when it peels off walls or is pulverized by windows and doors opening and closing. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-11 Figure I-14 shows the age distribution of the housing stock in Hermosa Beach compared to the SCAG region as a whole as reported in recent Census data. Figure I-14 Housing Units by Year Built – Hermosa Beach vs. SCAG Region This chart shows that more than half of the housing units in Hermosa Beach were constructed prior to 1970. These findings suggest that there may be a need for maintenance and rehabilitation, including remediation of lead-based paint, for a large percentage of the city’s housing stock. However, due to the city’s relatively high household incomes, market forces would be expected to encourage more private maintenance, rehabilitation, and lead paint remediation, as compared to lower-income communities. Figure I-15 shows recent Census data regarding conditions that may indicate substandard housing conditions. In Hermosa Beach and the region as a whole, the lack of telephone service, plumbing facilities and complete kitchen facilities are rare, and could be indicative of surveys being conducted while remodeling is being done rather than permanent conditions. With regard to telephone service, the availability of cell phones has made landline telephones unnecessary; therefore, this may not be a reliable indicator of substandard housing conditions. Based upon a windshield survey by Building Inspectors and Code Enforcement Officers, it is estimated that approximately 10 properties in the city are in need of rehabilitation or replacement. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-12 Figure I-15 Substandard Housing Units – Hermosa Beach vs. SCAG Region 3. Vacancy Housing vacancy characteristics for Hermosa Beach and the SCAG region as reported by recent Census data are shown in Figure I-16. The largest category of vacant units in both the city and the region as a whole was those held for seasonal use. Figure I-16 Vacant Units by Type – Hermosa Beach vs. SCAG Region Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-13 4. Housing Cost a. Housing Affordability Criteria State law establishes five income categories for purposes of housing programs based on the area (i.e., county) median income (“AMI”): • Extremely-Low (30% or less of AMI), • Very-Low (31-50% of AMI), • Low (51-80% of AMI), • Moderate (81-120% of AMI), and • Above Moderate (over 120% of AMI). Housing affordability is based on the relationship between household income and housing expenses. According to HUD and the California Department of Housing and Community Development, housing is considered “affordable” if the monthly payment is no more than 30% of a household’s gross income. In some areas, these income limits may be increased to adjust for high housing costs. Table I-3 shows 2020 affordable rent levels and estimated affordable purchase prices for housing in Los Angeles County by income category. Based on State-adopted standards for 4-person households, the maximum affordable monthly rent for extremely-low-income households is $845, while the maximum affordable rent for very-low-income households is $1,407. The maximum affordable rent for low-income households is $2,252, while the maximum for moderate-income households is $2,319. Maximum purchase prices are more difficult to determine due to variations in mortgage interest rates and qualifying procedures, down payments, special tax assessments, homeowner association fees, property insurance rates, etc. With this caveat, the maximum home purchase prices by income category shown in Table I-3 have been estimated based on typical conditions. Table I-3 Income Categories and Affordable Housing Costs – Los Angeles County Income Limits Affordable Rent Affordable Price (est.) Extremely Low (<30%) $33,800 $845 * Very Low (31-50%) $56,300 $1,407 * Low (51-80%) $90,100 $2,252 * Moderate (81-120%) $92,750 $2,319 $375,000 Above moderate (120%+) Over $92,750 Over $2,319 Over $375,000 Assumptions: -Based on a family of 4 and 2020 income limits -30% of gross income for rent or principal, interest, taxes and insurance plus utility allowance -10% down payment, 3.75% interest, 1.25% taxes & insurance, $300 HOA dues Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-14 b. For-Sale Housing Housing sales price statistics reported by Core Logic/DataQuick (Figure I-17) show that between 2000 and 2018, median home sales prices in Hermosa Beach increased 219% while prices in the SCAG region increased 151%. As of 2018, the median home sales price in Hermosa Beach was $1,617,500 compared to about $600,000 for the SCAG region as a whole. Based on the estimated affordable purchase prices shown in Table I-3, it is unlikely that any market rate homes would be affordable to lower- or moderate-income residents. These data illustrate the fact that in beach communities, very large public subsidies are generally required to reduce sales prices to a level that is affordable to low- and moderate-income buyers. Figure I-17 Median Existing Home Prices – Hermosa Beach vs. SCAG Region c. Rental Housing Based on a recent rental survey, typical rents for 2-bedroom units are more than $2,300 per month. As would be expected in a desirable beach community in Southern California, when market rents are compared to the amounts households can afford to pay (Table I- 3, page I-13), it is clear that very-low- and extremely-low-income households have a very difficult time finding housing without overpaying. At a rent of $2,300 per month, the gap between market rent and affordable rent at the very-low-income level is at least $900 per month, while the gap at the extremely-low-income level is approximately $1,500 per month. E. Special Needs Certain groups have greater difficulty in finding decent, affordable housing due to special circumstances that may be related to one’s employment and income, family characteristics, disability, or other conditions. As a result, some Hermosa Beach residents may experience a higher prevalence of overpayment, overcrowding, or other housing problems. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-15 State Housing Element law defines “special needs” groups to include persons with disabilities, the elderly, large households, female-headed households with children, homeless people, and farm workers. This section contains a discussion of the characteristics and housing needs facing each of these groups. 1. Persons with Disabilities Federal laws define a person with a disability as “any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such impairment; or is regarded as having such an impairment.” In general, a physical or mental impairment includes hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS Related Complex, and intellectual disability that substantially limits one or more major life activities. Major life activities include walking, talking, hearing, seeing, breathing, learning, performing manual tasks, and caring for oneself. The U.S. Census Bureau classifies disabilities into the following categories: • Hearing difficulty: Deaf or having serious difficulty hearing • Vision difficulty: Blind or having serious difficulty seeing, even when wearing glasses • Cognitive difficulty: Because of a physical, mental, or emotional problem, having difficulty remembering, concentrating, or making decisions • Ambulatory difficulty: Having serious difficulty walking or climbing stairs • Self-care difficulty: Having difficulty bathing or dressing • Independent living difficulty: Because of a physical, mental, or emotional problem, having difficulty doing errands alone such as visiting a doctor’s office or shopping The Housing Element must analyze potential and actual constraints upon the development, maintenance, and improvement of housing for persons of disabilities and include programs for the removal of such constraints or provide reasonable accommodation for housing designed for persons with disabilities. Disability status does not necessarily indicate a need for special need/supportive housing, and data on the total number of disabled persons needing supportive housing in the City is not available. Using the national standard of one to three percent of the disabled population needing supportive housing, it can be estimated that the City has approximately 196 to 588 disabled individuals in need of supportive housing. Individuals with disabilities can often have difficulties participating in the labor force or finding employment, whether because of an inability to leave one’s home, an inability to meet the physical requirements of the job, discrimination on the part of prospective employers, or other factors. Figure I-18 shows recent Census data regarding the types of disabilities experienced by Hermosa Beach residents while disability data for seniors in Hermosa Beach compared to the SCAG region are shown in Figure I-19. The most common types of disabilities for those in Hermosa Beach were cognitive and ambulatory. Compared to the entire SCAG region, Hermosa Beach seniors were less likely to have a disability in all categories except for Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-16 hearing impairment. Housing opportunities for those with disabilities can be maximized through housing assistance programs and providing universal design features such as widened doorways, ramps, lowered countertops, single-level units and ground floor units. The Housing Plan includes several programs to directly address the housing needs of persons with disabilities including Program 2. Conservation of Existing Affordable Housing, 3. Density Bonus and Other Incentives, 4. Affordable Housing Development Outreach and Assistance, 6. Accessory Dwelling Units, 9. Adequate Sites to Accommodate Housing Needs, 10. Housing for Persons with Special Needs and 12. Affirmatively Furthering Fair Housing. Figure I-18 Disabilities by Type – Hermosa Beach Figure I-19 Disabilities by Type for Seniors (65+) – Hermosa Beach Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-17 Understanding the employment status of people with disabilities may also be an important component in evaluating specialized housing needs. In Hermosa Beach, 68.2% of the population with a disability is employed, compared to 84.9% of the non-disabled population (Table I-4). Table I-4 Disability by Employment Status – Hermosa Beach Developmental Disabilities As defined by federal law, “developmental disability” means a severe, chronic disability of an individual that: • Is attributable to a mental or physical impairment or combination of mental and physical impairments; • Is manifested before the individual attains age 22; • Is likely to continue indefinitely; • Results in substantial functional limitations in three or more of the following areas of major life activity: a) self-care; b) receptive and expressive language; c) learning; d) mobility; e) self-direction; f) capacity for independent living; or g) economic self- sufficiency; and • Reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. The Census does not record developmental disabilities as a separate category of disability. According to the U.S. Administration on Developmental Disabilities, an accepted estimate of the percentage of the population that can be defined as developmentally disabled is 1.5 percent. Many developmentally disabled persons can live and work independently Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-18 within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult. The California Department of Developmental Services (DDS) currently provides community-based services to persons with developmental disabilities and their families through a statewide system of 21 regional centers, four developmental centers, and two community-based facilities. The Westside Regional Center (WRC) located in Culver City (http://www.westsiderc.org/) provides services for people with developmental disabilities in Hermosa Beach. The WRC is a private, non-profit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. Recent DDS data (Table I-5) reported 206 persons in Hermosa Beach with developmental disabilities. Table I-5 Developmental Disabilities – Hermosa Beach There is no charge for diagnosis and assessment for eligibility. Once eligibility is determined, most services are free regardless of age or income. There is a requirement for parents to share the cost of 24-hour out-of-home placements for children under age 18. This share depends on the parents' ability to pay. There may also be a co-payment requirement for other selected services. Regional centers are required by law to provide services in the most cost-effective way possible. They must use all other resources, including generic resources, before using any regional center funds. A generic resource is a service provided by an agency that has a legal responsibility to provide services to the general public and receives public funds for providing those services. Some generic agencies may include the local school district, Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-19 county social services department, Medi-Cal, Social Security Administration, Department of Rehabilitation and others. Other resources may include natural supports. This is help that disabled persons may get from family, friends or others at little or no cost. Special housing needs for persons with disabilities fall into two general categories: physical design to address mobility impairments and in-home social, educational, and medical support to address developmental and mental impairments. According to California Department of Social Services records, 2 State-licensed community care facilities operate in Hermosa Beach. These facilities have a total capacity of 194 persons. There are four types of facilities within Hermosa Beach: • Adult Day Care: Serves seniors and developmentally disabled adults who are able to live at home but require a certain level of care during the day. Some adult day care facilities provide health care services, while others provide non-medical care in the form of personal hygiene and meals (one in Hermosa Beach with capacity to serve 52 persons). Residential Care Facilities for the Elderly: Provide care and supervision for persons aged 60 and above and assistance with activities of daily living, such as bathing and grooming. They may also provide incidental medical services under special care plans (one in Hermosa Beach with capacity to serve (142 persons).The Housing Plan includes several programs to directly address the housing needs of persons with disabilities, including developmental disabilities, including Program 2. Conservation of Existing Affordable Housing, 3. Density Bonus and Other Incentives, 4. Affordable Housing Development Outreach and Assistance, 6. Accessory Dwelling Units, 9. Adequate Sites to Accommodate Housing Needs, 10. Housing for Persons with Special Needs and 12. Affirmatively Furthering Fair Housing. 2. Elderly Seniors or the elderly (persons aged 65 and older) are persons with special needs. Special needs for the elderly stem from three different sources: (1) relatively low fixed incomes; (2) high health care costs; and (3) physical disabilities. A low fixed income makes it difficult for many of the elderly to obtain adequate housing. This is further compounded by rising health care costs, which are a product of health problems associated with aging. If an elderly person is disabled, health care costs may be even higher, and housing may be more difficult to find due to accessibility issues. Other special needs relevant to this demographic group include transportation and home modification such as wheelchair ramps, enlarged doorways, modified bathrooms and kitchens. Federal housing data define a household type as 'elderly family' if it consists of two persons with either or both age 62 or over. Figure I-20 shows recent HUD income estimates for elderly Hermosa Beach owners and renters. Of Hermosa Beach's 1,759 senior households, 10.5% earn less than 30% of the surrounding area income, (compared to 24.2% in the SCAG region), 19.8% earn less than 50% of the surrounding area income (compared to 30.9% in the SCAG region). The housing needs of this group can be addressed through smaller units, accessory dwelling units on lots with existing homes, shared living arrangements, congregate or assisted living and housing assistance programs. The Housing Plan includes several programs to directly address the housing needs of the elderly including Program 2. Conservation of Existing Affordable Housing, 3. Density Bonus and Other Incentives, 4. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-20 Affordable Housing Development Outreach and Assistance, 6. Accessory Dwelling Units, 9. Adequate Sites to Accommodate Housing Needs, 10. Housing for Persons with Special Needs and 12. Affirmatively Furthering Fair Housing. Figure I-20 Elderly Households by Income and Tenure – Hermosa Beach According to the California Department of Social Services, as of May 2023 there is one residential elderly care facility with a capacity to serve 142 residents within the City. In addition, the Hermosa Five-O Senior Activity Center located at 710 Pier Avenue provides services to the elderly population. The Center is open to all South Bay Residents who are over the age of 50. The Center programs a variety of activities to help residents live a balanced life; physically, emotionally and mentally. The City also operates the bus passes and dial-a-taxi program, Access, and the WAVE, providing transportation and discounts for seniors. 3. Large Households Large households are defined as those with five or more members. These households are usually families with two or more children or multi-generational families. It can also include multiple families living in one housing unit. Large households are a special needs group because the availability of adequately sized, affordable housing units is limited. To save for necessities such as food, clothing, and medical care, lower- and moderate-income large households may reside in smaller units, resulting in overcrowding. Household size is an indicator of need for large units. Large households are defined as those with five or more members. Figure I-21 illustrates the range of household sizes in Hermosa Beach for owners, renters, and overall. The most commonly occurring household size is of two people (37.1%) while the second-most commonly occurring household is of one person (36.7%). Hermosa Beach has a higher share of single-person households than the SCAG region overall (36.7% vs. 23.4%) and a lower share of 7+ person households than the SCAG region overall (0% vs. 3.1%). This chart suggests that the need for large units with four or more bedrooms is expected to be much less than for smaller units. The Housing Plan includes several programs to directly address the housing needs of large families including Program 2. Conservation of Existing Affordable Housing, 3. Density Bonus and Other Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-21 Incentives, 4. Affordable Housing Development Outreach and Assistance, 9. Adequate Sites to Accommodate Housing Needs, 10. Housing for Persons with Special Needs and 12. Affirmatively Furthering Fair Housing. Figure I-21 Household Size by Tenure – Hermosa Beach According to 2016-2020 ACS estimates, of the 8,596 occupied housing units in Hermosa Beach, only 210 have five or more bedrooms (2.4%). All of these housing units are owner- occupied units. There are no renter-occupied units with five or more bedrooms in the City. Large households in Hermosa Beach can also benefit from general programs and services for lower-and moderate-income persons, including Housing Choice Vouchers, and various community and social services provided by non-profit organizations in the region. 4. Female-Headed Households Female-headed households, especially single parent households, typically have lower incomes and a greater need for affordable housing. In addition, these households can have needs for items such as accessible day care and health care, as well as other supportive services. The relatively low incomes earned by female-headed households, combined with the increased need for supportive services, severely limit the housing options available to them. Of Hermosa Beach's 8,979 total households, 3.9% are female-headed (compared to 14.3% in the SCAG region), 2.4% are female-headed and with children (compared to 6.6% in the SCAG region), and 0.8% are female-headed and with children under 6 (compared to 1.0% in the SCAG region). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-22 Figure I-22 Female Headed Households – Hermosa Beach As shown in Figure I-23, recent Census data estimated that 108 households in Hermosa Beach were at poverty level (1.2 percent of all Hermosa Beach households) compared to 7.9 percent of households in the SCAG region. Of those, nearly half were female-headed households. The Housing Plan includes several programs to directly address the housing needs of female headed households including Program 2. Conservation of Existing Affordable Housing, 3. Density Bonus and Other Incentives, 4. Affordable Housing Development Outreach and Assistance, 6. Accessory Dwelling Units, 9. Adequate Sites to Accommodate Housing Needs, 10. Housing for Persons with Special Needs and 12. Affirmatively Furthering Fair Housing. Figure I-23 Female Headed Households by Poverty Status – Hermosa Beach Assistance for female-headed households includes childcare services are also provided in licensed private Family Child Care Homes within the City. There are two school age day care centers in Hermosa Beach with a capacity to serve 280 children and three licensed day care centers with a capacity to serve 108 children. There is also one family day care home in the City(capacity to serve 14). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-23 Female heads of households in Hermosa Beach can also benefit from general programs and services for lower-and moderate-income households, including the Housing Choice Voucher program, and various community and social services provided by non-profit organizations in the region. 5. Farm Workers Farm worker households are considered as a special needs group due to their transient nature and the lower incomes typically earned by these households. Migrant workers, and their places of residence, are generally located in close proximity to agricultural areas providing employment. Although agriculture is a large industry in Los Angeles County, no major agricultural activities are located in Hermosa Beach. As shown in Table I-6, recent Census estimates reported 88 Hermosa Beach residents working in farming, fishing and forestry occupations but none of those were full-time jobs. The Housing Plan includes several programs to directly address the housing needs of lower income persons that may include farmworkers including Program 2. Conservation of Existing Affordable Housing, 3. Density Bonus and Other Incentives, 4. Affordable Housing Development Outreach and Assistance, 6. Accessory Dwelling Units, 9. Adequate Sites to Accommodate Housing Needs, 10. Housing for Persons with Special Needs and 12. Affirmatively Furthering Fair Housing. Table I-6 Agricultural Employment – Hermosa Beach 6. Homeless Persons The U.S. Department of Housing and Urban Development (HUD) defines the term “homeless” as the state of a person who lacks a fixed, regular, and adequate night-time residence, or a person who has a primary night time residency that is: • A supervised publicly or privately operated shelter designed to provide temporary living accommodations; • An institution that provides a temporary residence for individuals intended to be institutionalized; or • A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.1 1 Stewart B. McKinney Act, 42 U.S.C. §11301, et seq. (1994) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-24 Although there are myriad causes of homelessness, among the most common are: • Substance abuse and alcohol • Domestic violence • Mental illness Homeless individuals and families have differing housing needs. Both groups are in crisis and need food, clothing and shelter. Long-term transitional shelters, however, have different emphases for individuals and families. An individual would do well in transitional housing such as cooperative or single-room occupancy facilities. Families require more housing amenities to accommodate their size and diverse age-related needs; thus, lower income reentry housing such as single or multi-family units are more appropriate. Both groups require supportive housing and social services. The needs of homeless families are more complicated than those of homeless individuals. Childcare, pediatric care, and education are additional to basic health, mental health, employment, and other supportive social and housing needs. Hermosa Beach is located within the Los Angeles Homeless Services Authority’s (LAHSA) Service Planning Area (SPA) 8 – South Bay (see Figure I-24). The 2020 homeless count found 28 unsheltered homeless persons in Hermosa Beach 2 and 4,560 homeless persons within SPA 8 as a whole. The 2020 homeless count was slightly higher than prior years, which reported between 17 and 23 homeless persons in Hermosa Beach during 2015 to 2019. Of the unsheltered homeless enumerated in 2020, more than two-thirds were reported as living in cars, vans, or other vehicles. Shelter and service needs of the homeless population are significantly different depending on the population subgroup. Los Angeles County’s Continuum of Care approach to homelessness is a coordinated and systematic local approach to meet the needs of homeless individuals and families within these subgroups, including: • Chronic Homeless Persons; • Episodic Homeless Persons; and • Persons at Risk of Becoming Homeless For many years Hermosa Beach has been actively engaged in efforts to address the problems of homelessness. In 2015, the City Council adopted an initial Homeless Strategy and Action Plan, establishing and committing to a list of preliminary steps toward addressing homeless issues locally and as part of a broader effort to meet growing demands at the regional level. Since that time, Hermosa Beach has taken significant steps to implement the Action Plan, including: • Leadership in hosting a beach cities deployment site and organizing local volunteers for the annual Greater Los Angeles Homeless Count, conducted each January in partnership with the Los Angeles Homeless Services Authority (LAHSA); 2 https://www.lahsa.org/data?id=45-2020-homeless-count-by-community-city Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-25 • Participation of the Hermosa Beach Police Department in collaborative outreach and response with Manhattan Beach PD, Redondo Beach PD, and a mental health clinician assigned by the Los Angeles County Department of Mental Health (DMH); • Collaboration with other South Bay cities in deployment of dedicated outreach teams from PATH (People Assisting The Homeless) under the leadership of the South Bay Cities Council of Governments (SBCCOG); • Participation in Los Angeles County’s efforts to develop a set of regional strategies for combating homelessness, which were ultimately adopted by the Los Angeles County Board of Supervisors; • Collaboration with the South Bay Cities Council of Governments (SBCCOG) and South Bay Coalition to End Homelessness (SBCEH) on policy initiatives to identify additional resources for our region; • Participation in South Bay Cities Council of Governments (SBCCOG) bi-monthly Homeless Services Task Force meetings to learn about County and regional homelessness programs, services, policy updates, and opportunities; and • Building a relationship with Harbor Interfaith Services, the lead agency for the Service Planning Area 8 Coordinated Entry System (CES), to access services and support for people who are homeless or are at risk of homelessness in Hermosa Beach. In 2018 the City Council adopted a Five-Year Homelessness Plan 3 incorporating these and other actions designed to address the problems of homelessness in Hermosa Beach. Additional information regarding the City’s efforts to address the problems of homelessness is provided in Chapter II, and Program 10 in the Housing Policy Plan describes actions the City intends to take during the 2021-2029 planning period related to homelessness. 3 https://www.hermosabeach.gov/home/showdocument?id=11049 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-26 Figure I-24 Los Angeles County Homeless Service Planning Areas Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-27 F. Assisted Housing at Risk of Conversion As part of the Housing Element update, State law requires jurisdictions to identify assisted units that are at risk of conversion to market rate housing during the 10-year period 2021- 2031. According to the Southern California Association of Governments and the California Housing Partnership Corporation, there are no units at risk in Hermosa Beach. G. Low- and Moderate-Income Housing in the Coastal Zone The majority of Hermosa Beach west of Valley Drive is within the Coastal Zone. California Government Code §65590 et seq. prohibits conversion or demolition of existing residential dwelling units occupied by low- or moderate-income persons or families unless provision has been made for the replacement in the same city or county of those dwelling units with units for persons and families of low- or moderate-income (excludes structures with less than 3 units, or less than 10 units for projects with more than one structure, among other exclusions). Section 65590(d) further requires new housing development in the coastal zone to provide housing units for persons and families of low or moderate income, or if not feasible, to provide such units at another location within the same city or county, within the coastal zone or within three miles thereof. Due to the exemptions noted above, no documented affordable units have been constructed in the Coastal Zone. No deed-restricted affordable units have been demolished or converted within the Coastal Zone since 1982. The Coastal Land Use Plan (LUP) addresses three primary issue areas: access, planning for new development, and the preservation of marine-related resources. The LUP contains policies that may impede the construction of new housing development within the designated coastal zone of the City. These include policies related to the preservation of beach access, adequate parking and controlling the types and densities of residential development within the coastal zone. Coastal policies and standards controlling mass, height and bulk discourage “mansionization.” Policies do not prevent residential units above ground floor commercial as allowed in the C-1 zoning district. H. Future Housing Needs 1. Overview of the Regional Housing Needs Assessment The Regional Housing Needs Assessment (RHNA) is a key tool for local governments to plan for anticipated growth. The RHNA quantifies the anticipated need for housing within each jurisdiction for the 2021 to 2029 period, also referred to as the “6th cycle” in reference to the six RHNA cycles that have occurred since the comprehensive revision of State Housing Element law in 1980. Communities then determine how they will address this need through the process of updating the Housing Elements of their General Plans. The current RHNA was adopted by the Southern California Association of Governments (SCAG) in March 2021. The need for housing is determined by the forecasted growth in households in a community as well as existing needs such as overpayment and overcrowding. The housing need for new households is adjusted to maintain a desirable Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element I Housing Needs Assessment Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 I-28 level of vacancy to promote housing choice and mobility. An adjustment is also made to account for units expected to be lost due to demolition, natural disaster, or conversion to non-housing uses. Total housing need is then distributed among four income categories on the basis of the county’s income distribution, with adjustments to avoid an over- concentration of lower-income households in any community. Additional detail regarding SCAG’s methodology used to prepare the RHNA can be reviewed on SCAG’s website at https://scag.ca.gov/rhna. 2. Hermosa Beach 2021-2029 Housing Needs The share of regional housing need for the City of Hermosa Beach as determined by SCAG for the 2021-2029 planning period is 558 units, distributed by income category as shown in Table I-7. Pursuant to Government Code §65583(a)(1) it is assumed that the need for extremely-low-income households is half of the very-low-income need. A discussion of how the City will accommodate this housing need is provided in the Land Resources section of Chapter II. Table I-7 Regional Housing Needs 2021-2029 – Hermosa Beach Very Low Low Moderate Above Moderate Total 232* 127 106 93 558 41.6% 22.8% 19.0% 16.7% 100% Source: SCAG 2021 *116 of these are allocated to the extremely-low-income category Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element II Resources and Opportunities Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 II-1 II. RESOURCES AND OPPORTUNITIES A. Land Resources Section 65583(a)(3) of the Government Code requires Housing Elements to contain an “inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites.” A detailed analysis of vacant land and potential redevelopment opportunities has been prepared and is described in Appendix B. The results of this analysis are summarized in the table below. The City’s land inventory based on current zoning is insufficient to accommodate the RHNA allocation for this planning period; therefore, amendments to General Plan and zoning designations are necessary pursuant to State requirements (see Program 9 in the Housing Policy Plan). Table II-1 Land Inventory Summary vs. RHNA Income Category Total VL Low Mod Above RHNA (2021-2029) 232 127 106 93 558 Accessory dwelling units 11 28 4 21 64 Remaining RHNA 221 99 102 72 494 Sites Inventory (Table B-4) 353 171 80 604 % Buffer Above Remaining RHNA 10% 68% 11% 22% Source: Hermosa Beach Community Development Dept., 2023 A discussion of public facilities and infrastructure needed to serve future development is contained in Section III.B, Non-Governmental Constraints. There are currently no known service limitations that would preclude the level of development allocated in the RHNA, although developers will be required to pay fees or construct public improvements prior to or concurrent with development. B. Financial and Administrative Resources 1. State and Federal Resources Community Development Block Grant Program (CDBG) - Federal funding for housing programs is available from the Department of Housing and Urban Development (HUD). During the previous planning period the City received approximately $68,000 per year, however the latest grant for FY20-21 was about $63,000 and future years are unknown. In recent years, the City has used CDBG funds for ADA compliance retrofits for sidewalk handicap ramps, which is expected to continue during the planning period. In FY 20-21 a one-time grant program for eligible businesses with low- and moderate-income employees to assist with recovery from pandemic used $37,479 CDBG CARES ACT funds and $72,571 unspent funds from prior years’ allocations. The City does not currently participate in other HUD programs such as HOME, Emergency Shelter Grant (ESG) or Housing Opportunities for Persons with AIDS (HOPWA). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element II Resources and Opportunities Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 II-2 Section 8 Rental Assistance – The Section 8 Housing Choice Voucher Program (HCVP) assists very-low-income senior citizens, families and the disabled with the cost of rental housing. Generally, a tenant pays 30% of his or her adjusted income towards the rent and the Section 8 program pays the balance directly to the landlord. Unfortunately, the need for rental assistance is greater than available resources. 2. Local Resources As a very small jurisdiction, Hermosa Beach has extremely limited resources for housing assistance. The only locally-generated source of housing revenue is the Condominium Conversion fund, which is an "infrastructure fee toward the physical and service structure of the community from which the development benefits" (Municipal Code Section 17.22.270). C. Sustainable Housing Development The City of Hermosa Beach is working to be a leader in sustainability. The three elements of sustainability, environment, and economy are related to the objectives of this housing element in several ways. Strong, sustainable communities connect housing, transportation, jobs and equity. They reduce transportation costs for families, maximize resource efficiency, improve housing affordability, save energy, and increase access to housing and employment opportunities. This nurtures healthier, more inclusive communities and housing opportunities. Hermosa Beach can use sustainable communities strategies and techniques to invest in healthy, safe and inclusive neighborhoods. Strategies to increase sustainability are multidisciplinary and are integrated throughout all elements of the City’s new General Plan, which was adopted in 2017. The General Plan focuses on sustainability and a low-carbon future. 1. AB 32 and SB 375 In 2006, the Legislature passed AB 32—The Global Warming Solutions Act of 2006,—which requires the State of California to reduce “greenhouse gas” (GHG) emissions to 1990 levels no later than 2020. Passenger vehicles account for 31 percent of the state’s total emissions. In 1990 greenhouse gas emissions from automobiles and light trucks were 108 million metric tons, but by 2004 these emissions had increased to 135 million metric tons. SB 375 asserts that “Without improved land use and transportation policy, California will not be able to achieve the goals of AB 32.” SB 375, passed in 2008, builds on the existing regional transportation planning process (which is overseen by local officials with land use responsibilities) to connect the reduction of GHG emissions from cars and light trucks to land use and transportation policy. SB 375 has three goals: (1) to use the regional transportation planning process to help achieve AB 32 goals; (2) to use the California Environmental Quality Act (CEQA) streamlining as an incentive to encourage residential projects that help achieve AB 32 goals to reduce GHG emissions; and (3) to coordinate the regional housing needs allocation process with the regional transportation planning process. SB 375 requires consistency between the Regional Transportation Plan (RTP) and the Regional Housing Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element II Resources and Opportunities Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 II-3 Needs Assessment (RHNA), which is accomplished through using an “integrated” growth forecast for use in both of these policy documents. 2. Energy Conservation Opportunities Given the built-out nature of Hermosa Beach, attention should be focused on redevelopment, rehabilitation and retrofits. As residential energy costs rise, the subsequent increasing utility costs also reduce housing affordability. Although the City is fully developed, new infill development, rehabilitation and retrofits provide opportunities to enhance community sustainability and directly affect energy use within its jurisdiction. State of California Energy Efficiency Standards for Residential and Nonresidential Buildings were established in 1978 in response to a legislative mandate to reduce California's energy consumption. The standards are codified in Title 24 of the California Code of Regulations and are updated periodically to allow consideration and possible incorporation of new energy efficiency technologies and methods. The most recent update to State Building Energy Efficiency Standards were adopted in 2019. Building Energy Efficiency Standards have saved Californians billions of dollars in reduced electricity bills. They conserve nonrenewable resources, such as natural gas, and ensure renewable resources are extended as far as possible so power plants do not need to be built.4 Title 24 sets forth mandatory energy standards and requires the adoption of an “energy budget” for all new residential buildings and additions to residential buildings. Separate requirements are adopted for “low-rise” residential construction (i.e., no more than 3 stories) and non-residential buildings, which includes hotels, motels, and multi-family residential buildings with four or more habitable stories. The standards specify energy saving design for lighting, walls, ceilings and floor installations, as well as heating and cooling equipment and systems, gas cooling devices, conservation standards and the use of non-depleting energy sources, such as solar energy or wind power. The home building industry must comply with these standards while localities are responsible for enforcing the energy conservation regulations through the plan check and building inspection processes. In addition to state-mandated Title 24 requirements, Hermosa Beach is participating in a coalition to collaboratively tackle the issue of energy conservation.5 The South Bay Environmental Services Center (SBESC 6) is educating residents, business owners and public agencies and hosting or making available information about the energy conservation programs, retrofits and incentives available in the community and how to incorporate more energy-saving practices into everyday life. Established through funding from the California Public Utilities Commission, the SBESC includes the 15 cities that comprise the South Bay Cities Council of Governments (SBCCOG), and is associated with Southern California Edison and Southern California Gas Company. 4 California Energy Commission (https://www.energy.ca.gov/programs-and-topics/programs/building- energy-efficiency-standards) 5 http://www.imakenews.com/priorityfocus/e_article001104271.cfm?x=bcHNgMg,b7M8B89t 6 www.sbesc.com Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element II Resources and Opportunities Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 II-4 The City of Hermosa Beach has adopted solar energy and wind energy ordinances to facilitate their use, and has reduced building permit fees for solar energy systems and waived the planning fee for wind energy systems. The City has adopted a water conservation ordinance and a water efficient landscape ordinance that is significantly more restrictive than required by state law in that demonstration of drought-tolerant landscaping is required for all new landscaping in connection with all projects regardless of size or tenancy. Issue Area No. 6 and Program 9 in the Housing Plan describe the City’s policies and objectives for identifying these and other opportunities for more sustainable development as part of the General Plan update. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-1 III. CONSTRAINTS A. Governmental Constraints 1. Transparency with Development Regulations To increase transparency and certainty in the development application process as required by law, the City provides a range of information online for ease of access, some of which is as follows: General Plan, Zoning, and Local Coastal Plan: https://www.hermosabeach.gov/our-government/community- development/programs-projects-plans Applications, Forms, Handouts, and Fee Schedule: https://www.hermosabeach.gov/our-government/community- development/applications-forms-handouts Current Development Projects: https://www.hermosabeach.gov/our-community/quick-links/city- projects/development-projects 2. Land Use Plans and Regulations a. General Plan Each city and county in California must prepare a comprehensive, long-term General Plan to guide its future. The Land Use Element of the General Plan establishes the basic land uses and density of development within the various areas of the city. Under State law, the General Plan elements must be internally consistent and the City’s development regulations must be consistent with the General Plan. Thus, the land use plan must provide suitable locations and densities to implement the policies of the Housing Element. The Hermosa Beach General Plan – or PLAN Hermosa - was comprehensively updated in 2017. Land Use + Design Element of the General Plan includes four residential land use designations with allowable densities ranging from 2 to 33 units per acre, as shown in Table III-1. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-2 Table III-1 Residential Land Use Categories – Hermosa Beach General Plan Designation Definition Low Density Single-family residential (attached or detached) 2.0 – 13.0 Medium Density Single-family residential and small-scale multi-family residential (duplex, triplex, condominium) 13.1 – 25.0 High Density Medium (8-20 unit buildings) and large-scale (20+ unit buildings) multi-family residential 25.1 – 33.0 Mobile Home Mobile home parks, where lots are owned, rented or leased to accommodate mobile homes for human habitation 2.0 – 13.0 As noted previously in Section II.A, amendments to General Plan and zoning designations are necessary to ensure adequate sites to accommodate the RHNA pursuant to State law (see Program 9 in the Housing Policy Plan). With those amendments, the General Plan will not pose a constraint to implementation of Housing Element policies and objectives. b. Zoning Regulations The City regulates the type, location, density, and scale of residential development through the Municipal Code. Zoning regulations serve to implement the General Plan and are designed to protect and promote the health, safety, and general welfare of residents. The Municipal Code also helps to preserve the character and integrity of existing neighborhoods. The Municipal Code sets forth residential development standards for each zone district. In 2017 the City adopted a new General Plan and is currently in the process of updating zoning regulations to ensure consistency with the General Plan. The Zoning Ordinance update is expected to be completed in 2023. The following discussion describes current regulations, some of which will be revised as part of the new Zoning Ordinance. There are currently five residential zones in Hermosa Beach: R-1 Single Family Residential (R-1A: Two Dwelling Units per Lot) R-2 Two-Family Residential (R-2B: Limited Multiple Family Residential) R-3 Multiple-Family Residential R-P Residential Professional MHP Mobile Home Park In addition to these zones, residential uses are also permitted above ground floor commercial within the C-1 “Limited Business and Residential Zone” (see Table III-2). A summary of the development standards for these zones is provided in the table below. Residential Development Standards by Zone Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-3 Development Standard R-P R-1 R-1A R-2 R-2B R-3 C-1 Minimum Lot Area (sq.ft.) per DU 1,320 4,000 3,350 1,750 1,750 1,320 1,320 Equivalent Density 33 10.9 13 24.9 24.9 33 33 Minimum Front Yard (ft.) n/a 10% of lot depth 10% of lot depth 10% of lot depth 10% of lot depth Per zoning map 0 Minimum Side Yard (ft.) 10% of lot width 10% of lot width 10% of lot width 10% of lot width 10% of lot width 10% of lot width 5' Minimum Rear Yard (ft.) 5 5 (3 if alley) 5 (3 if alley) 5 (3 if alley) 5 (3 if alley) 5 if alley 5' Maximum Building Height (ft.) 30 25 25 30 30 30 30 Source: Hermosa Beach Zoning Ordinance, http://www.hermosabch.org/departments/cityclerk/code/zoning.html Minimum lot area per unit ranges from 1,320 square feet in the R-P, R-3 and C-1 zones to 4,000 square feet in the R-1 zone. The R-P zone provides for mixed-use commercial/ residential development with varying densities depending on lot area and dimensions. Density bonuses would permit more units than allowed by the underlying zone pursuant to State law and the implementing ordinance adopted by the City in 2004. The densities within mobile home parks are regulated by Title 25 of the California Administrative Code, subject to a use permit. A summary of the uses permitted in the City’s residential zoning districts is provided in Table III-2. Although a range of residential densities are allowed by-right in residential zones, a discretionary precise development plan (PDP) is required when more than one unit is developed per lot to ensure site design is compatible with the Code and adjacent development. In 2013 the Zoning Code was amended to clarify that the PDP is a site design tool, rather than providing a means of evaluating whether the type of use should be allowed on a particular site. The City also has adopted nine specific plan areas (SPAs), in many cases to accommodate specific commercial or residential development projects. Residential use is either not allowed in these specific plan areas or the specific plan area was adopted to specifically accommodate a development project which has been constructed. SPA-7 and SPA-8 provide a significant number of parcels for commercial development fronting Pacific Coast Highway. As part of this Housing Element update, the City proposes to add residential and mixed use as permitted uses in the C-2, C-3, SPA- 7, SPA-8, SPA-11, and M-1 zones for RHNA sites. A residential density of 25.1-33.0 units per acre, consistent with the R-3 zone’s allowable density, will be available to RHNA sites in C-2, C-3 SPA-7, Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-4 SPA-8, and SPA-11 zones. A density of 34-50 units per acre will be available to RHNA sites in the M-1 zone. Table III-2 Permitted Residential Development by Zone Housing Type Permitted R-1 R-1A R-2 R-2B R-3 MHP R-P C-1 C-3 SF Detached P P P P P P 4 Single-Family Attached P* P* P* P* P* 4 Multi-Family P* P* P* C Mobile Home P P P P P P P Second Units P3 C1 C1 C1 C1 C1 Emergency Shelters P Transitional, Supportive, Group Housing 6 6 6 6 6 6 6 6 Single-Room Occupancy P Care Facility (6 or fewer) P P P P P P Care Facility (7+) C2 C2 C2 C2 C2 Assisted Living5 Source: Hermosa Beach Zoning Ordinance P = Permitted P* = Permitted subject to approval of a precise development plan to evaluate site design (excluding development of small second unit in R-1 zone) C = Conditional Use Permit 1 Senior units only 2 Accessory to a single-family detached dwelling; for child care purpose 3 Administrative Permit subject to limitation on size 4 Residential uses are allowed above ground floor commercial uses 5 A specific plan area was created to accommodate a senior assisted living center. Zoning for Lower-Income Housing Lower-income housing can be accommodated in all zones permitting residential use in Hermosa Beach. These may include accessory dwelling units in all residential zones, multi- family apartments in the R-3 zone, and residential or commercial/residential mixed-use developments within the C-1 and R-P Zones. Under State law, the “default density” presumed to be adequate to facilitate lower-income housing is 20 units/acre in Hermosa Beach. As noted in before, the R-2, R-2B, R-3, R-P and C-1 zones all permit development at greater than 20 units/acre and therefore are considered suitable for lower-income housing under state law.7 Review of development trends confirms that actual densities in these zones are typically greater than 20 units per acre. 7 Assembly Bill 2348 of 2004 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-5 Hermosa Beach is one of the most densely developed and populated cities in Los Angeles County and is essentially built-out. About 75% of the city is residentially zoned, with about 35% of this area zoned for high-density R-2 and R-3 development. Approximately 11% of the city has commercial zoning, and just 1% is industrially zoned. The balance of the city is zoned for open space, most of which is the beach area. As part of this Housing Element update, the City proposes to add residential and mixed use as permitted uses to RHNA sites in the C-2, C-3, SPA-7, SPA-8, and SPA-11, with a residential density of 25.1-33.0 units per acre, consistent with the R-3 zone’s allowable density. Residential and mixed use will also be added as permitted uses to RHNA sites in the M-1 zone with a residential density of 25.1-33 units per acre. Special Needs Housing Under State law, persons with special needs include those in residential care facilities, persons with disabilities, farm workers, persons needing emergency shelter, transitional or supportive housing, and low-cost single-room-occupancy units. The City’s regulations regarding these housing types are discussed below. • Housing for Persons with Disabilities State requirements. Health and Safety Code §§1267.8, 1566.3, and 1568.08 require local governments to treat licensed group homes and residential care facilities with six or fewer residents no differently than other single-family residential uses. “Six or fewer persons” does not include the operator, the operator’s family, or persons employed as staff. Local agencies must allow these licensed care facilities in any area zoned for residential use, and may not require licensed residential care facilities for six or fewer persons to obtain conditional use permits or variances that are not required of other family dwellings. The Zoning Ordinance includes definitions and standards in conformance with State law. Group homes and residential care facilities for up to six persons are a permitted use in any residential zone. Large residential care facilities are conditionally permitted in most residential zones (Table III-2). In consideration of the City’s small lots and densely-populated residential neighborhoods, the conditional use permit requirement is reasonable to ensure that the operational characteristics of such facilities do not generate conflicts with surrounding residential uses. As part of the comprehensive Zoning Ordinance update, the City will revise the CUP review process for large care facilities to an Administrative Permit in all residential zones, with a lower fee, and Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-6 establish findings for approval that are objective and provide certainty in outcomes (Housing Program 10). Reasonable Accommodation. The City’s Building Code requires that new residential construction comply with Title 24 accessibility standards. These standards include requirements for a minimum percentage of fully accessible units in new multi-family developments. In addition, Section 17.42.120 of the Zoning Ordinance establishes procedures for the review of requests for reasonable accommodation pursuant to State law. The reviewing authority shall approve the request for a reasonable accommodation if, based upon all of the evidence presented, the following findings can be made: 1. The housing, which is the subject of the request for reasonable accommodation, will be occupied by an individual with disabilities protected under Fair Housing Laws; 2. The requested accommodation is reasonable and necessary to make housing available to an individual with disabilities protected under the Fair Housing Laws; 3. The requested accommodation will not impose an undue financial or administrative burden on the city, as defined in the Fair Housing Laws and interpretive case law; and 4. The requested accommodation will not require a fundamental alteration in the nature of the city’s zoning or building laws, policies and/or procedures, as defined in the Fair Housing Laws and interpretive case law. The city may consider, but is not limited to, the following factors in determining whether the requested accommodation would require a fundamental alteration in the nature of the city’s zoning or building program: a. Whether the requested accommodation would fundamentally alter the character of the neighborhood; and b. Whether granting the requested accommodation would substantially undermine any express purpose of either the city’s general plan or an applicable specific plan. These regulations are consistent with fair housing law and do not pose a constraint on persons with disabilities. The City approved two Reasonable Accommodation applications in recent years. In October 2023, the City amended the Zoning Ordinance to remove the public hearing requirement for the approval of Reasonable Accommodation requests. This change to the Reasonable Accommodation procedures is aimed at facilitating housing for persons with disabilities. However, the finding relating to neighborhood character remains. The Housing Element includes an action to address this finding as a constraint to housing for persons with disabilities. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-7 Definition of “Family”. The Zoning Ordinance defines "Family" as “two or more persons living together in a dwelling unit, sharing common cooking facilities, and possessing the character of a relatively permanent single bona fide housekeeping unit in a domestic bond of social, economic and psychological commitment to each other, as distinguished from a group occupying a boarding house, club, dormitory, fraternity, hotel, lodging house, motel, rehabilitation center, rest home or sorority.” This definition is consistent with State law. Maximum concentration requirements. There are no concentration or separation requirements for residential care facilities or group homes in the Zoning Ordinance. Site planning requirements. There are no special site planning requirements (other than parking, height, and setbacks) for residential care facilities or group homes in the Zoning Ordinance. Parking requirements. Off-street parking requirements for residential care facilities and group homes are the same as for single-family dwellings, which is two spaces plus one guest space. This requirement does not pose an unreasonable constraint to such facilities. • Farm Worker Housing The City’s Zoning Ordinance does not identify farm worker housing separately as a permitted use. However, as discussed in Chapter II, no agricultural activities are found within Hermosa Beach or in the surrounding communities. Therefore there is no demand for farm worker housing in Hermosa Beach. • Emergency Shelters, Transitional/Supportive Housing and Low Barrier Navigation Centers Emergency shelters are facilities that provide a safe alternative to acute homelessness either in a shelter facility, or through the use of motel vouchers. Emergency shelter is short-term, usually for 30 days or less. Senate Bill 2 of 2007 requires that unless adequate shelter facilities are available to meet a jurisdiction’s needs, emergency shelters must be allowed by-right (i.e., without discretionary review such as a conditional use permit) in at least one zoning district, but may include specific development standards. AB 2339 (2022) requires that the zone(s) designated for by-right shelters to be zones that also permit residential uses. The Hermosa Beach Municipal Code allows emergency shelters by-right in the C-3, SPA-7 and SPA-8 zones, with a ten- bed limit per shelter and a 300-foot separation from another shelter. The City will redesignate the R-3 zone (Multi-Family Residential) for emergency shelters by right. While the ten-bed limit may appear to be a constraint to development of emergency shelters, the lack of funding for such facilities may preclude the development of larger facilities. Both State and Federal policy directions have moved from providing emergency/transitory housing to rapid rehousing to permanent supportive housing. Nevertheless, this Housing Element includes a Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-8 program to review and revise the bed limit based on consultation with service providers. The City has an unsheltered homeless of 28 persons according to the 2020 Point- in-Time Count. At appropriately 200 square feet per person (AB 2339 guidance), a building space of 5,600 square feet would be needed. Given the costs of new construction and the small size of the City’s unsheltered homeless population, adaptive reuse of existing buildings may be a more feasible option than new construction. The R-3 zone contains 1,034 parcels totaling 88 acres. While there are virtually no vacant parcels in the City, including the R-3 zone, opportunities exist for adaptive reuse of single-family homes, duplexes, or small apartments as shelters. As of fall 2023, the City had 297 R-3 parcels developed with single-family homes. The home sizes range from 298 square feet to just over 7,000 square feet. The smaller homes R-3 lots are feasible for redevelopment given the obvious underutilization of the land or adaptive reuse into small shelters. AB 139 also requires that the City establishes parking standard for emergency shelters based on staffing level only. Transitional housing is longer-term housing, typically up to two years. Transitional housing generally requires that residents participate in a structured program to work toward established goals so that they can move on to permanent housing. Residents are often provided with an array of supportive services to assist them in meeting goals. Under SB 2 transitional and supportive housing is deemed to be a residential use subject only to the same requirements and standards that apply to other residential uses of the same type in the same zone. Current City definitions for transitional and supportive housing are in compliance with this requirement. In 2018 AB 2162 amended State law to require that supportive housing be a use by-right in zones where multi-family and mixed uses are permitted, including non-residential zones permitting multi-family uses, if the proposed housing development meets specified criteria. Program 10 in the Housing Policy Plan includes a commitment to process an amendment to the Municipal Code in compliance with this requirement. In 2019 the State Legislature adopted AB 101 establishing requirements related to local regulation of low barrier navigation centers, which are defined as “Housing first, low-barrier, service-enriched shelters focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” Low barrier means best practices to reduce barriers to entry, and may include, but is not limited to: (1) The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth (2) Accommodation of residents’ pets (3) The storage of possessions Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-9 (4) Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms Low barrier navigation centers meeting specified standards must be allowed by-right in areas zoned for mixed use and in nonresidential zones permitting multi-family uses. Program 7 in the Housing Policy Plan includes a commitment to process an amendment to the Zoning Code in compliance with this requirement. • Single Room Occupancy Single-room-occupancy (SRO) facilities are small studio-type units that rent in the low-, very-low- or extremely-low-income category. SROs with up to six units are permitted administratively within the R-3 district while SROs with seven or more units are conditionally permitted in the R-3, C-3, SPA-7 and SPA-8 districts. There is no density limit for SRO developments and the allowable unit size is 150 to 400 square feet. An affordability covenant is required for all SRO units except the manager’s unit. c. Off-Street Parking Requirements The City’s parking requirements for residential zones vary by residential type and housing product (Table III-3). Two off-street parking spaces plus one guest space are required for single-family, duplex or two-family dwellings. Multiple dwellings (three or more units) are also required to have two off-street spaces, plus one guest space for each two dwelling units. Mobile homes are required to have two spaces per unit. The City adopted a reduced parking standard for Specific Plan Area No. 6 in conjunction with approval of a senior assisted living facility, and shared and reduced parking may be approved by the Planning Commission on a case-by-case basis. Pursuant to State Density Bonus Law reduced parking standards apply to affordable housing developments. Under the current parking requirements, two off-street parking spaces plus one guest space are required for single-family, duplex or two-family dwellings. Multiple dwellings (three or more units) are also required to have two off-street spaces, plus one guest space for each two dwelling units. These parking requirements do not support a variety of housing types, limit design options, result in residential street frontages dominated by parking and garages, and can preclude achievement of maximum allowed density, especially on the City’s smaller residential lots. As part of the comprehensive Zoning Ordinance update currently underway the City will revise the parking requirements to facilitate a variety of housing types, such as smaller units, and mixed use development that can take advantage of shared parking. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-10 Table III-3 Residential Parking Requirements Type of Unit Minimum Parking Space Required Single family residence 2 spaces plus 1 guest space Mobile home park 2 spaces Duplex or two-family dwelling 2 spaces plus 1 guest space Multiple dwellings (3+ units) 2 spaces plus 1 guest space for each 2 dwelling units Detached servant’s quarters or guest houses 1 space Multi-family lower-income and senior restricted housing, multi-family housing restricted to disabled persons, and single-room-occupancy Ordinance, Chapter 17.44 d. Cumulative Impacts of Development Standards Future multi-family residential development is likely to take place as mixed use developments along the City’s commercial corridors. The City’s existing mixed use standards available to the C-1 zone only requires a minimum of 30-foot average depth of space. There is no requirement for a full-ground floor commercial space. In many cases, the ground floor will also be utilized for parking entry, circulation, common areas, lobbies, etc. Residential units can also be located on the ground floor. Therefore, mixed use development can accommodate two floors above ground floor while maintaining the height limit. Multi-floors of residential then exist behind or above that height. The graphic of a mixed-use building that had a very tall commercial space (>21 feet tall) that has units behind and beyond, as well as above. Because the commercial spaces are most effective at the corner, the corner ends up being double height while the other frontages of the building can be two-level uses. Overall, the City’s flexibility with commercial component in a mixed use building, proposed revisions to the parking standards, will allow developments to achieve the maximum allowable density. e. Accessory Dwelling Units Accessory dwelling units (ADUs) provide an important source of affordable housing for seniors, young adults, care-givers and other low- and moderate-income segments of the population. In recent years, the State Legislature has adopted extensive changes to ADU law in order to encourage housing production. Among the most significant changes is the Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-11 requirement for cities to allow one ADU plus one “junior ADU” on single-family residential lots by-right subject to limited development standards. Program 6 in the Housing Policy Plan includes a commitment to monitor legislation annually and update City ADU regulations as necessary to maintain consistency with State law. f. Density Bonus Under State law cities and counties must provide a density increase above the otherwise maximum allowable residential density under the Municipal Code and the Land Use Element of the General Plan and other incentives when builders agree to construct housing developments with units affordable to low- or moderate-income households or housing developments restricted to seniors. Section 17.42.100 of the Zoning Ordinance establishes standards and procedures for implementing State Density Bonus Law. In order to further encourage affordable housing development, in 2013 the City adopted enhanced density bonus standards (Sec. 17.42.170) to incentivize consolidation of small lots into larger building sites according to the following formula. Combined Parcel Size Allowable Base Density* AB 2345 of 2019 amended State law to revise density bonus incentives that are available for affordable housing developments. Program 3 in the Housing Policy Plan includes a commitment to update City density bonus regulations to reflect these changes to State law. g. Mobile Homes/Manufactured Housing There is often an economy of scale in manufacturing homes in a factory rather than on site, thereby reducing cost. State law precludes local governments from prohibiting the installation of mobile or manufactured homes on permanent foundations on single-family lots. It also declares a mobile home park to be a permitted land use on any land planned and zoned for residential use, and prohibits requiring the average density in a new mobile home park to be less than that permitted by the Municipal Code. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-12 Mobile and manufactured homes are permitted in each of the residential zones, thereby facilitating the construction of this type of housing. One mobile home park is located in Hermosa Beach (Marine Land Mobile Home Park), which is owned by a private, non-profit corporation. In addition, the adjacent "State RV Park" is occupied by very-low- income households and persons in transition to permanent residency. The City committed to retaining the Marine Land Mobile Home Park by designating it within the General Plan and Zoning Code as a Mobile Home Park (MHP) Zone and in 2008 the City Council allocated over $111,000 from the Condominium Conversion Fund to assist residents with their acquisition of the Marine Land Mobile Home Park. In 2008 the project was awarded $1,200,000 subject to conditions under the State’s Mobilehome Park Resident Owner Program (see Program 2 in the Housing Policy Plan). h. Condominium Conversions In order to reduce the impacts of condominium conversions on residents of rental housing and to maintain a supply of rental housing for low- and moderate-income persons, the City's Municipal Code provides for a tenant assistance plan that includes the following: a. An option to first purchase units, including tenant purchase discounts. For those who choose not to purchase a unit, the subdivider must provide a method by which tenants will be assisted in finding comparable replacement rental housing within the area of the conversion, including professional relocation assistance. b. A statement of the method by which the subdivider will comply with the requirements of Section 66427.1 of the State Subdivision Map Act. Such method must provide that no tenant shall be required to move from his or her apartment due to the proposed conversion until the expiration of the two-month period for exercise of his or her right of first refusal. c. Reimbursement for moving costs incurred, not to exceed $500. d. Extension of tenancy to complete a school term, if necessary. Because of these requirements, the potential impact of condominium conversions is not a significant constraint on the preservation of affordable rental housing. However, the reimbursement amounts for moving and for rent differentials should be reviewed to ensure costs have not outpaced reimbursements. This review is incorporated into Program 2 in the Housing Policy Plan. More importantly, condominium conversion has not been a trend in California for more than a decade and is not likely to become a significant trend again due to the viability of the rental housing market and the costs of conversion. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-13 i. Short-Term Rentals Short-term rentals of less than 30 days are prohibited in all residential zones citywide. j. Nonconforming Uses and Buildings The Zoning Code allows residential uses to be rebuilt in the case of destruction or damage beyond the owner's control provided the nonconformity is not increased. Nonconforming buildings may expand 100 percent in floor area (existing prior to October 26, 1989, up to 3,000 square feet per unit or 5,000 square feet of total floor area for the building site). Nonconforming portions of a building with a nonconforming residential use may be partially modified or altered to the extent necessary to comply with the Uniform Building Code. Specific rules pertaining to nonconforming parking apply. Building sites with three or more dwelling units cannot be expanded in floor area unless two parking spaces per unit plus one guest space for every two units are provided. The Zoning Code also allows the Planning Commission to validate as legal nonconforming residential units that can be shown to have been used for residential occupancy more or less continuously since January 1, 1959 when City records and actual property use conflict. In 2013 the City evaluated whether to relax provisions governing validation of residential units that contribute to the supply of affordable rental housing when the use is demonstrated to have existed for a shorter period of time (to be determined as part of the city's consideration) than is currently required under the code, provided the units are improved so as to not be substandard and parking adequate for the occupancy can be provided and determined to maintain the existing regulations due to density, parking and issues that would be associated with administration of such a program. k. Building Codes State law establishes building standards and prohibits the imposition of standards that are not necessitated by local geographic, climatic or topographic conditions and requires that local governments making changes or modifications in building standards must report such charges to the Department of Housing and Community Development and file an expressed finding that the change is needed. The City’s Building Codes incorporate State Codes. These are necessary to protect the public's health, safety and welfare. The City’s building standards include some amendments to the State Building Code that exceed state standards; however, these amendments are all relatively inexpensive, and Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-14 most of the revisions are related to fire alarms, smoke detectors, sprinkler systems, drainage, increased demolition diversion, and increased energy efficiency. These modifications were determined to not substantially increase project costs. l. Coastal Zone The City of Hermosa Beach includes nearly two miles of shoreline and varies in width between one-half mile and approximately one mile inland. Approximately 43% of the total land area in Hermosa Beach is located within the Coastal Zone, as defined by the Coastal Act. The Coastal Zone in Hermosa Beach spans the entire length of the City from north to south, and extends from the mean high tide line inland to Ardmore Avenue with two exclusions: The area from Hermosa Avenue to Valley Drive between Longfellow Avenue and 31st Place; and the area east of Park Avenue or Loma Drive between 25th Street and 16th Street. While a substantial portion of the City is in the Coastal zone, the character of land uses within the Coastal zone areas of the City is widely varied. The commercial area concentrated around the pier and shoreline includes lodging, restaurants (early morning and late night), snack shops, retail, recreation, and services that serve visitors and residents alike. As distance increases from this concentrated area, development begins to include mixed use and small-scale residential. Many areas of the Coastal zone in the City are primarily residential (single- and multi- family) but interspersed with local commercial uses. The City’s General Plan, PLANHermosa, adopted in 2017, recognizes this and assigns different land use designations within the Coastal zone that reflect the purpose of these areas. Recreational Commercial (RC) is designated for the primarily visitor-serving area near the Pier; Downtown (DT) is designated the retail and service core that includes mixed use and residential uses. The City proposes sites within the DT area on the Sites Inventory to further the development of housing in the coastal zone in a manner that is consistent with existing development patterns. This is similar to the manner in which the City already allows mixed-use development in the C1 zones. Meanwhile, the City is not proposing sites in the Recreational Commercial, as the City’s Coastal Land Use Plan recognizes this as a primarily visitor serving area. The City of Hermosa Beach is currently working with the California Coastal Commission (CCC) to obtain approval of the City’s Local Coastal Program (LCP) and Land Use Plan (LUP). On October 25, 2021, the City submitted the Mobility Element amendment for review and approval to the CCC, which is the City’s first step for an updated LCP. The City implements State laws such as SB 330 and SB 9 to ensure housing development opportunities are available within the Coastal Zone. The City received comments from the CCC in 2022 and will be addressing their comments along with any subsequent need to update the Coastal Land Use Plan to accommodate the RHNA. Affordable housing projects in the Coastal Zone are processed pursuant to State Law. The City is also in the process of updating the comprehensive Zoning Ordinance, which will address permitting requirements for multifamily developments. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-15 Subsequent to the adoption of the Housing Element, the City will review any Coastal Land Use Plan policies that must be updated and submit to the California Coastal Commission for certification. The timeline will be more apparent once the amendments have been submitted. 3. Development Processing Procedures a. Residential Permit Processing State Requirements. State Planning and Zoning Law establishes permit processing requirements for residential development. Within the framework of State requirements, the City has structured its development review process in order to minimize the time required to obtain permits while ensuring that projects comply with applicable regulations. Developer Assistance. Hermosa Beach has prepared permit processing guidelines to assist builders in applying for development permits for residential developments and subdivisions. The guides are comprehensive in nature, and address the steps to be followed. Early consultation with City staff is encouraged to identify issues as soon as possible and reduce processing time. This consultation (at no cost to applicants) allows applicants to become acquainted with the application materials and fees required by each department and agency. Preliminary site and architectural plans are also reviewed for consistency with City standards. This conference allows the applicant to assess the feasibility of the project and make adjustments during the preliminary planning stages to minimize costs and permit processing time. Permit Approval Procedures and Timing. Simultaneous processing of required entitlements (e.g., subdivisions and planned development permits) is also provided as a means of expediting the review process. Most projects under the purview of the Planning Commission are acted upon within six weeks of filing; a subsequent process requiring Planning Commission actions to be reported to the City Council and the appeal period typically requires about 30 days. Therefore, the process is typically completed within three months from application filing. • Single-Family Detached Units – Applications are reviewed by the Planning Division for zoning clearance, and subsequently by the Building Division. Processing time is typically three to four weeks. • Condominiums – A conditional use permit, precise development permit (PDP) design review, and tentative subdivision map must be approved by the Planning Commission; this process is usually completed within three months from the date a complete application is received. Once Planning Commission approval is obtained, the building permit application can be simultaneously reviewed by the planning and building divisions. • Multi-Family Projects – A precise development plan (PDP) design review is conducted by the Planning Commission. If a conditional use permit is also required, it is reviewed by the Planning Commission concurrently. Such review is usually completed within three months from the date a complete application is received. Once Planning Commission approval is obtained, the building permit application can be simultaneously reviewed by the Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-16 planning and building divisions. A structural plan check is performed by an outside contractor. • Mixed-Use Projects – A precise development plan (PDP) design review is conducted by the Planning Commission. If a conditional use permit is required by the Zoning Code, concurrent Planning Commission review is usually completed within three months from the date a complete application is received. • Building Plan Check - Plan check for the processing of residential building permits is generally four to six weeks, depending on the City’s workload. Building codes are applied to new construction, and projects are monitored and inspected under the building permit process. In 2021 the City initiated a comprehensive Zoning Ordinance update. One of the major objectives of the update is to simplify the development review process. Specifically, the City is proposing to revamp the PDP requirements. Program 11 in the Housing Policy Plan includes a commitment to this revision. Also, in the pending Subdivision Ordinance update, the City will be addressing the CUP requirement for condominium projects. The City proposes to revise the PDP process by project size. The scope of PDP review will be limited on physical characteristics as they apply to the design of the sites plan, structures, landscaping, and other physical features of the proposed project, including: 1. Building proportions, massing, and architectural details. 2. Site design, orientation, location, and architectural design of buildings relative to existing structures on or adjacent to the property, topography, and other physical features of the natural and built environment; 3. Size, location, design, development, and arrangement of on-site parking and other paved areas; 4. Height, materials, and design of fences, walls, and screen plantings; 5. Location and type of landscaping including selection and size of plant materials, and design of hardscape; and 6. Size, location, design, color, lighting, and materials of all signs. Applicability and Review Authority Single- family Residential Projects with 2-4 dwelling units; 5 or more dwelling units Exceptions Application Type Ministerial PDP PDP Housing projects with >= 20% affordable units, senior units, or with a staff level PDP Body Staff Commission Commission Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-17 The review authority must make all of the following findings to approve or conditionally approve a Precise Development Plan application: A. The design, layout, and other physical features of the project complies with all other applicable provisions of this Title and all other titles of the Hermosa Beach Municipal Code; B. The design, layout, and other physical features of the project is consistent with the General Plan, and any applicable specific plan or design guidelines; and C. The design, layout, and other physical features of the project complies with any design or development standards applicable to the zone, unless waived or modified pursuant to the provisions of this Title. The City will be developing objective standards for the PDP review as part of the comprehensive Zoning Ordinance update. b. Environmental Review Environmental review is required for all discretionary development projects under the California Environmental Quality Act (CEQA). Most projects in Hermosa Beach are either Categorically Exempt or require only an Initial Study and Negative Declaration. Developments that have the potential of creating significant impacts that cannot be mitigated require the preparation of an Environmental Impact Report. The Negative Declaration process typically requires about three to four weeks. Categorically Exempt developments such as ADUs require a minimal amount of time. Although environmental review adds to the time and cost of development, it is mandated by State law. 4. Development Fees and Improvement Requirements State law limits fees charged for development permit processing to the reasonable cost of providing the service for which the fee is charged. Various fees and assessments are charged by the City and other public agencies to cover the costs of processing permit applications and providing services and facilities such as schools, parks and infrastructure. Most of these fees are assessed through a pro-rata share system, based on the magnitude of the project's impact or on the extent of the benefit that will be derived. Table III-4 shows fees associated with new development within Hermosa Beach. As can be seen from the table, Park and Recreation and Building Permit fees represent the largest development fees, although since many projects replace units, credits can be obtained. For a typical 2,000-square-foot single-family dwelling (excluding any demolition or entitlement cost), current (2021) permit fees are estimated at approximately $30,000 per unit or $15,000 if the new unit replaced a 1,500-square-foot house. Fees for a 2,000-square- foot condominium unit (part of a typical two-unit project) that replaced a 1,500-square- foot dwelling would be about $30,000, or $45,000 if no replacement is involved. Nearly all multi-family projects are small condominium projects, which allow owners to maximize investment on small lots. The City periodically evaluates the actual cost of processing the development permits when revising its fee schedule. The last review was 2020. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-18 In addition to City fees, development fees levied by the school districts and special districts include the following as of 2021: • School Fees: $4.79 per square foot • L.A. County Sewer Connection Fee: $4,610 (single-family home) Aside from parkland fees, no other impact fees have been adopted. Table III-4 City of Hermosa Beach Planning & Building Fees Planning Fees/Building Fees Fee Amount Conditional Use Permit (CUP) $5,900 CUP for Condominium (cost/2 units) $6,127 CUP for Condominium (per unit over 2 units) $227 CUP/Parking Plan/PDP (amendment) $5,197 Negative Declaration/Initial Study $4,125 / At cost Extension (tentative map, final map, CUP) $1,196 Final Map $851 General Plan Amendment Map/Text $4,673 / $6,290 / At Cost Zone Change $4,917 Parking Plan $5,444 Precise Development Plan $6,127 Subdivision – Tentative Map $5,677 Variance $4,547 Parks and Recreation Fees (condos excluded)** $9,148/unit Parks and Recreation Fees, in lieu (condos only)** $14,096/unit Building Permit *Averages for 3-bedroom, 2 bath single-family home. **Credits available if existing square footage is demolished or dwelling units are replaced. The City requires developers to provide on-site and off-site improvements necessary to serve their projects. Such improvements may include water, sewer and other utility extensions, street improvements and traffic control devices that are reasonably related to the project. Dedication of land or in-lieu fees may also be required of a project for rights- of-way, transit facilities, recreational facilities and school sites, consistent with the Subdivision Map Act. The City’s Capital Improvement Program (CIP) contains a schedule of public improvements, including street improvements and other public works projects, to facilitate continued development according to the City’s General Plan. The CIP helps to ensure that construction of public improvements is coordinated with private development. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-19 Although development fees and improvement requirements increase the cost of housing, cities have little choice in establishing such requirements due to the limitations on property taxes and other revenue sources needed to fund public improvements. B. Non-Governmental Constraints 1. Environmental Constraints Environmental constraints include physical features such as steep slopes, geological hazards, floodplains, or sensitive biological habitat. In many cases, development in these areas is constrained by State and Federal laws (e.g., FEMA floodplain regulations, the Clean Water Act, Endangered Species Act, Coastal Act, State Fish and Game Code and the Alquist-Priolo Act). The City’s Coastal Land Use Plan and General Plan have been designed to protect sensitive areas from development and to protect public safety, as required by State and Federal law. Environmentally sensitive areas are generally zoned and protected as parklands. However, a significant portion of the city is within the Coastal Zone wherein impacts to coastal resources are always of concern. In addition, portions of the city are located on moderately steep hillsides and some areas are subject to liquefaction. While policies constrain residential development to some extent, they are necessary to support other public policies. 2. Infrastructure Constraints With about 20,000 people living within its 1.3 square miles and virtually no vacant land, the City’s growth is limited to redevelopment and replacement of existing structures. This section discusses potential infrastructure constraints on such development. Water and Wastewater. Water and wastewater systems are generally able to serve existing demands. Most new development will continue to be replacement of existing structures, and water and sewer capacities are projected to be sufficient to accommodate this replacement during the planning period. However, significant deficiencies in the sewer system exist and rehabilitation is necessary, and new development may require offsite improvements. The City Council approved Sewer System Master and Management Plans identifying the cost to repair the 80-year-old system at $9 million over 10 years, which is incorporated in the annual City budget. The City also has adopted a Storm Drain Master Plan, with annual storm drain improvements included in the annual City budget. Water infrastructure is replaced and developer improvements are in accordance with the schedules and requirements of the service providers. Streets and Parking. One of the primary infrastructure issues associated with the current level of development is the limited capacity of on-street parking. As a dense beach city inundated by tourists throughout the summer months, there can sometimes be a shortage of adequate parking in many areas. The City addresses this constraint incrementally by ensuring that all new developments, both residential and commercial, provide adequate off-street parking so they do not need to rely on on-street parking. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-20 Streets in Hermosa Beach are subject to high levels of traffic, which are further impacted by new development. The great majority of the traffic, especially during the summer months, consists of through-traffic over which the City has no control. Because of the city’s location in relation to the regional freeway system, access to the surrounding region is limited to the arterial roadways. The many thousands of visitors to the local beaches also affect parking and other services. Drainage. Urban storm water run-off is a challenging issue because Hermosa Beach is an oceanfront community with over 90% impermeable ground surface. In addition to best management practices (BMPs) implemented through its regional storm water discharge permit, the City also requires infiltration basins, when appropriate, with new developments. The City has adopted rules to allow and encourage pervious surfaces and also adopted Cal-Green building standards in 2019 exceeding State requirements by requiring increased permeability or infiltration in connection with new development. The City has installed an award-winning infiltration project in the downtown area, which should serve as a model for other areas. Additionally, the City adopted Low Impact Development Requirements for New Development and Redevelopment Projects (Municipal Code Sec. 8.44.095). Dry utilities. Dry utilities such as electricity, telephone and cable are provided by private companies and are currently available in the areas where future residential development is planned. When new development is proposed the applicant coordinates with utility companies to arrange for the extension of service. There are no known service limitations that would restrict planned development during the planning period. 3. Land Costs Land represents one of the most significant components of the cost of new housing. Land values fluctuate with market conditions, and the downturn in the housing market following the 2008 mortgage crisis had a negative effect on property values. In recent years real estate values have increased significantly. Per-unit land cost is directly affected by density – higher density allows the land cost to be spread across more units, reducing the total price. Most new residential development in the city consists of one to two units per lot, and recent trends indicate redevelopment projects have been maximizing density. However, no land was available for sale during the writing of this Housing Element. 4. Construction Costs Residential construction costs are estimated by the Community Development Department at $500 per square foot and higher, usually due to the type of construction and amenities desired by developers. Construction cost is affected by the price of materials, labor, development standards, and general market conditions. The City has no influence over materials and labor costs, and the building codes and development standards in Hermosa Beach are not substantially different from other cities in the South Bay area. Since most development consists of private redevelopment where impact fees and major infrastructure or offsite improvements are typically not required, it is likely that costs are lower than in many cities. The City’s building code amendments do not add substantial cost. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element III Constraints Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 III-21 5. Cost and Availability of Financing Hermosa Beach is similar to most other California communities with regard to private sector home financing programs. Although the mortgage crisis that began in 2008 affected the availability of real estate loans, interest rates are at historic low levels. For buyers with good credit, the current low interest rates significantly reduce the cost of housing. Under State law, it is illegal for real estate lending institutions to discriminate against entire neighborhoods in lending practices because of the physical or economic conditions in the area (“redlining”). In monitoring new construction sales, resales of existing homes, and permits for remodeling, it does not appear that redlining is practiced in any area of the city. 6. Timing and Density Due to very high land cost and limited available sites, development projects typically maximize the allowable density. Furthermore, to accommodate the City’s 6th cycle RHNA, much of the new housing is anticipated in the high density residential and commercial districts where mixed use and residential uses are permitted at a density range of 25.1 to 33.0 units per acre. The timeline of development projects from project approval to building permit application can vary from project to project depending on multiple factors unrelated to City requirements, and may be impacted by the availability of financing, contractors, labor, and materials. In reviewing the most recent residential development projects during the last four years, the average time between project approval and building permit application is about 118 days, with a median of 93 days. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix A – Evaluation Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 A-1 Appendix A Evaluation of the 2014-2021 Housing Element Section 65588(a) of the Government Code requires that jurisdictions evaluate the effectiveness of the existing Housing Element, the appropriateness of goals, objectives and policies, and the progress in implementing programs for the previous planning period. The Housing Element update included a review the housing goals, policies, and programs of the prior Housing Element, and evaluated the degree to which those programs have been implemented during the previous planning period. The Housing Element update also included an assessment of the appropriateness of goals, objectives and policies. The findings from this evaluation have been instrumental in determining the City’s Housing Implementation Program for the 2021-2029 planning period. Table A-1 summarizes the programs contained in the previous Housing Element along with the source of funding, program objectives, accomplishments, and implications for future policies and actions. Table A-2 presents the City’s progress in meeting the quantified objectives from the previous Housing Element. The City has limited funding to address housing needs. However over the past cycle, the City accomplished the following for special needs populations: • Approved two reasonable accommodation requests to address the housing needs of persons with disabilities. The City also recently removed the public hearing requirement for Reasonable Accommodation requests. • Promoted the ADU development in the community, which benefits elderly and lower income households. ADU activities increased significantly in 2021 and 2022. • Preserved the affordability of Marine Land Mobile Home Park by facilitating the conversion of the park into resident ownership. • Provided rental assistance to at-risk homeless through the PLHA funds administered by LACDA. • Began discussions with St. Cross Church regarding its intent to develop affordable housing on site. The 2013-2021 Hermosa Beach Housing Element did not include specific goals, policy, or action to address the housing needs of households with special needs. The only action included in the previous Housing Element was related to zoning code amendments, which the City was able to accomplish. The 6th cycle Housing Element includes additional commitments to address special housing needs. These include: • Program 4: Affordable Housing Development Outreach and Assistance – Conduct affirmative fair marketing to agencies and organizations that serve low and moderate income households and special needs populations. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix A – Evaluation Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 A-2 • Program 10: Housing for Persons with Special Needs – Amend Zoning Ordinance to facilitate a range of housing options for person with special needs and amend strategies for live/work housing and 15-minute neighborhoods. • Program 12: Remove Governmental Constraints – Amend Zoning Ordinance to revise parking standards, such as for senior units. • Program 13: Affirmatively Furthering Fair Housing – Facilitate public education and outreach on fair housing and promote home sharing opportunities. • Program 14: Neighborhood Improvement - Offer a tax rebate and certain exemptions (sewer, lighting assessment, utility user tax) for income qualified elderly or disabled residents. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix A – Evaluation Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 A-3 Table A-1 Housing Element Program Effectiveness Evaluation City of Hermosa Beach 2014-2021 Name of Program Objective Status of Program Implementation Continued Appropriatene ogram 1 Density nus. density bonus program through brochures and the City website throughout the planning period. for density bonus were submitted. Most new units in Hermosa Beach are typically small 1-4 replacement units. For the 6th cycle 2021-2029, larger sites identified for housing are along the City’s commercial corridors, including small parcels under the same ownership that could be consolidated. The City has a lot consolidation program that Housing Element. available to accommodate its new housing need for the 2014-2021 planning period, and continue to maintain its comprehensive land use database as means to identify suitable sites for new residential development. This database provides zoning and other information for every parcel in the City, and includes information regarding underdeveloped and undeveloped parcels. to accommodate housing needs. This program should be revised to reflect the 6th cycle sites inventory. The City receives occasional inquiries from developers for some older, underutilized commercial sites. To be more proactive and encourage new residential development along the corridors, the program should provide a dedicated webpage with opportunity sites information and contacts to make the information more accessible to interested developers for 2021-2029 6th Cycle. dedicated webpage with contacts in July 2023. conservation of the Marine Land Mobile Home Park located at 531 Pier Avenue. The 60-space park provides housing for extremely-low-, very- low- and low-income households. The Hermosa Court Recreational Vehicle Park with 19 pads at 725 10th Street also provides transitional housing space for those persons or households in transition from an RV to apartment or home. The Mobile Home Park has obtained state funding to convert to a resident owned park. resident ownership was completed in 2013. This program should be continued. Income limits are verified for new buyers according to extremely-low, very-low and low-income restrictions and reviewed and approved for conformance by the Homeowners Board prior to purchase to maintain these affordable for-sale units. review. for enforcing those sections of the Municipal Code related to property maintenance, including zoning, property maintenance, illegal units, trash container regulations, construction without permits, and sign regulations. The Code Enforcement Officer assists and makes recommendations to other City departments, such as conducting inspections of business licenses, home occupation offenses, and obstructions in public right-of-way program is effective and should be continued with a change in description. This description was provided before the program was implemented. The Program description should be revised to reflect actual activities and should specifically include housing stock preservation through nuisance maintenance cases and neighborhood preservation through response to neighbor complaints, in addition to response to residents asking about Fair Housing. Code Enforcement housing preservation activities. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix A – Evaluation Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 A-4 ame of Program Objective Status of Program Implementation Continued Appropriateness funding and Section 8 rental vouchers to qualifying households. If the City is successful in obtaining increased CDBG funding and/or expanding Section 8 rental vouchers for residents, this information will be posted in the Community Center, on the City’s website, in handouts provided in the information kiosk in the City Hall lobby, and in the local library. Brochures will also be provided to local service clubs including the local “Meals on Wheels” program, local dial-a-ride service, the local recreation center, and emergency shelters in the area. CDBG and Section 8 programs. No developers have expressed interest in pursuing affordable housing development. Hermosa Beach receives CDBG fund distribution through Los Angeles County Community Development Authority (LACDA) since it is a small city with a population of 19,614. During the 2013-2021 5th Cycle period the City has designated its $60,000-$63,000 annual funding for residential neighborhood sidewalks replacement. The City intends to continue use of CDBG funds for this neighborhood preservation purpose. This program should be continued and expanded to add Section 8 information to the City’s website with information for property owners to encourage participation and information for residents seeking properties available through Section 8 housing vouchers. It should be noted that new Permanent Local Housing Allocation (PLHA) funds, also distributed through LACDA, have been designated for Rental Assistance programs to help LA County residents, including Hermosa Beach residents, stay in their homes and avoid becoming at-risk of July 2023. organizations to address complaints regarding housing discrimination within the City and provide counseling in landlord/tenant disputes. should be continued, revised and expanded to address Affirmatively Furthering Fair Housing (AFFH) policies and the City’s AFFH analysis. The City should include Fair Housing information on its website, including the LA County LACDA and non-profit Housing Rights Center. Easy Fair Housing information and access will assist residents and allow City Staff, not just Code Enforcement, July 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix A – Evaluation Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 A-5 Name of Program Objective Status of Program Implementation Continued Appropriatene ogram 7 Zoning for ecial Needs and ordable Housing. regarding regulations related to persons with special needs and affordable housing. needs and affordable housing. New state laws will be addressed for special needs and affordable housing as part of the Comprehensive Zoning Code update underway, expected to be considered for approval in July 2023. State laws incorporated for Element rezoning and -Density sites that allow high-density residential development including reducing constraints posed by small lot sizes. development; however, no applications have been submitted. This program is expanded through allowance of residential in commercial zones for mixed-use and 100% residential with affordable housing as part of the 6th cycle rezoning program and Comprehensive Zoning Code update underway and expected to be considered for approval in with introduction of mixed- and 100% residential with affordable housing through by City Council in July 2023. update to the General Plan. One of the primary themes of the new General Plan will be community sustainability. As part of the General Plan update, state-of-the-art options to improve sustainability and energy conservation will be reviewed, and those that are appropriate for Hermosa Beach will be pursued. New initiatives related to residential development will be incorporated into the Housing Element, as appropriate. program should be continued. This program description should be revised to include the General Plan Amendments underway, including the Housing Element, Safety Element, and Comprehensive Zoning Code update underway including necessary rezonings to meet the City’s RHNA allocation and expected to be considered in July 2023. Sustainability is prioritized throughout the 2017 General Plan and will be continued in the General Plan Amendments. The City also implements the State’s Green Building Code. EV charger and solar panel permits also are expedited for processing. General Plan Amendments underway with prioritized sustainability throughout, Safety Element, and update underway including City’s RHNA allocation and approval in July 2023. Table A-2 Progress in Achieving Quantified Objectives City of Hermosa Beach 2014-2021 Program Category Quantified Objective Progress New Construction1 Extremely Low 1 - Very Low - - Low 1 - Moderate - 15 Above Moderate - 10 Total 2 25 Rehabilitation2 Extremely Low 10 10 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix A – Evaluation Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 A-6 Very Low Low Moderate Above Moderate - Total 10 Conservation3 Extremely Low 60 60 2 Private repairs Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-1 Appendix B Residential Land Inventory 1. Regional Housing Need Allocation (RHNA) State law requires each city to include in its Housing Element an inventory of vacant parcels having the potential for residential development, or “underutilized” parcels with potential for additional development or redevelopment. The purpose of this inventory is to evaluate whether there is sufficient capacity, based on the General Plan, zoning and development standards to accommodate the City’s assigned share of regional growth needs as identified in the 2021-2029 Regional Housing Needs Assessment (RHNA). This analysis represents an assessment of the City’s realistic development potential. Actual development will depend on the intentions of each property owner, market conditions and other factors. The methodology and assumptions for the residential land inventory are provided below. The City has been allocated a need of 558 units during the 2021-2029 projection period, which are distributed among the following income categories: Very-low income 232 units Low income 127 units Moderate income 106 units Above-moderate income 93 units Projected ADUs Pursuant to State law, the City may credit potential ADUs to the RHNA requirements by using the trends in ADU construction to estimate new production. Hermosa Beach had a slow start with ADU construction with the changes in State law. However construction of ADUs significantly increased over the last two years. The City’s five-year ADU records are: 2018 – 1 unit 2019 – 1 unit 2020 - 1 unit 2021 – 16 units 2022 – 14 units 2023 – 13 units Based on this data, the City has an average of 6.6 ADUs annually over the past five years. However, given the sharp rise in ADU activities in the last three years at the beginning of this RHNA cycle, the City anticipates an average of eight ADUs annually for 64 units over eight years. This projection assumes some tapering off of interest in later years. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-2 SCAG conducted a regional analysis of existing ADU rents in April and June 2020. The analysis broke down Los Angeles County into two survey areas. The City of Hermosa Beach is located within in the LA County I study area. The analysis resulted in affordability assumptions for jurisdictions in this study area, that allocated 15 percent to extremely low income, 2 percent to very low income, 43 percent to low income households, 6 percent to moderate income, and 34 percent to above moderate income households. Based on the ADU rent survey conducted by SCAG, of the 64 ADUs projected to be built, 10 units will be for extremely low income households, one unit for very low income households, 28 for low income households, four for moderate income households and 21 units for above moderate income households. Remaining RHNA Accounting for the projected ADUs, the City has a remaining RHNA of 494 units. The City must identify adequate sites with appropriate density and development standards to accommodate this remaining RHNA. Table B-1 RHNA Status RHNA ADU Projection Remaining RHNA Extremely Low (<30%) 116 10 106 Very Low (31-50%) 116 1 115 Low (51-80%) 127 28 99 Moderate (81-120%) 106 4 102 Above moderate (120%+) 93 21 72 Total 558 64 494 Note: While RHNA does not separately identify an allocation for extremely low income households, State law required jurisdictions to estimate the projected housing needs of this income group. The acceptable methodology is to assume 50% of the very low income RHNA as extremely low income. 2. Availability of Sites For potential new units in a city’s land inventory, State law establishes affordability assumptions based on density. The “default” density for small metropolitan jurisdictions, including Hermosa Beach, is 20 units per acre8. This means that if the General Plan and zoning allow development at 20 units per acre or greater, these sites are deemed appropriate to accommodate housing for lower-income households. In Hermosa Beach, the following residential zoning districts allow multi-family development at densities greater than 20 units/acre: District Allowable Density R-2 24.9 units/acre R-2B 24.9 units/acre R-3 33 units/acre 8 Government Code §65583.2(c)(3)(B) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-3 R-P 33 units/acre Also the C-1 commercial district allows mixed-use development at a density of 33 units/acre. The allowable densities in all of these districts are significantly greater than the state default density of 20 units/acre; therefore, they are considered suitable for accommodating the City’s lower-income housing need. However, the City has few vacant or underutilized sites in these districts to accommodate new housing. As a strategy to meeting the City’s RHNA obligations, the City proposes to allow residential and mixed use development in the C-2, C-3, SPA-7, SPA-8, SPA-11, and M- 1 zones. A residential density of 25.1-33.0 units per acre will be permitted. 3. Redevelopment Trends in South Bay Throughout the South Bay region, redevelopment of existing underutilized commercial properties into residential and mixed use projects has become a significant trend. The impacts of COVID (such as accelerated trends of online shopping and remote working) have resulted in increased redevelopment of commercial properties into residential/mixed use projects. Table B-2 below provides a sample of recycling underutilized commercial properties in the South Bay region. These uses being redeveloped in the South Bay region are similar to the existing uses of sites with redevelopment potential in Hermosa Beach (selection Criteria: d). Table B-2 Redevelopment Trends in South Bay Community Location/Project Prior Uses Redevelopment Redondo Beach South Bay Galleria Shopping mall Redondo Beach Alcast Foundry RV parking and truck storage for development of 36 Rolling Hills Estates 927 Deep Valley Drive Medical office Rolling Hills Estates Peninsula Pointe Office building into an 80-unit El Segundo Pacific Coast Commons Fairfield Inn and Suites 263 units and 11252 square feet of retail Hermosa Beach 2700 Manhattan Ave Manhattan Beach Verandas 79 housing units Manhattan Beach 1701-1707 Artesia 14 housing units Torrance 18045 Western Avenue Torrance 24 townhomes Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-4 Lomita 2457 Lomita Blvd. Equipment rental yard Prior to the rezoning in October 2023, limited opportunities existed in Hermosa Beach for multi-family and mixed use development. Therefore, the City was not able to use built projects to demonstrate the characteristics of sites with redevelopment potential. However, as the City was going through the public outreach process for the rezoning, multiple property owners/developers have expressed interest in redeveloping their properties. The characteristics of these properties can be used as proxies for selecting other sites with near-term redevelopment potential. Specifically, characteristics of sites with existing are presented in Table B-3. Table B-3 Characteristics of Sites with Development Interests Parcel Existing Use Property Owner FAR ILR 4186-026-804 4186-026-806 4186-026-801 4186-026-805 4186-026-800 Utility switching station/commercial parking Adaptive reuse of existing buildings to incorporate residential units 1.0 NA NA 2 4185-017-015 4185-017-014 Multi-tenant commercial and commercial parking incorporate 1.0 0.34 1964 1 4183-016-029 4183-016-040 4183-016-033 4182-019-001 4182-019-002 4182-019-003 4183-016-011 4183-016-012 4183-016-035 4183-016-036 4183-016-037 4183-016-038 4183-016-039 Religious facility, existing residential units, and parking Infilling site to incorporate additional residential units 0.5 0.56 1923-1968 Average 1 4183-018-013 4183-018-015 Multi-tenant commercial redevelopment into 0.6 0.57 1957-1963 1 and 2 4183-018-003 Multi-tenant commercial residential units into 0.6 0.38 1955 1 4183-018-002 Personal services residential units into 0.5 0.42 1945 2 4186-012-014 Abandoned auto repair redevelopment into 0.4 0.28 1945 1 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-5 Parcel Existing Use Property Owner FAR ILR 4186-031-001 4186-031-002 4186-031-003 Auto-related use Complete redevelopment into residential uses 1.03 0.15 1955 Mostly parking 4185-002-007 4185-002-014 Retail redevelopment into 0.14 0.29 1952 1 and 2 Range 0.14 – 1.03 0.15-0.57 1923-1968 1-2 4. Identification of Parcels The City has been in discussions with several property owners who have expressed interest in redeveloping their properties for residential or mixed use development. In addition, the City has identified sites that are underutilized and possess characteristics that are consistent with sites where owners have expressed interest in redevelopment or with sites that have been redeveloped or proposed for redevelopment in the South Bay region. These properties are described in detail in Table B-5 (Sites Identified for Rezoning). Sites are included in the inventory if they meet a, b, OR c: a. Owner or developer interest b. Vacant land c. Vacated building or high vacancy For sites not meeting any of the factors above, they are included in the inventory if they meet at least three of the following five factors: d. Uses are consistent with uses that are being redeveloped in the region, as shown in Table B-2. These uses include: retail, office, auto-related uses, parking lots, etc. Regionally, these uses are being redeveloped as, or infilled to incorporate residential uses. e. Existing FAR: Minimal structures or improvements on site, such as parking lots, typically have low floor area ratios. However, among the properties with developer/property owner interest for redevelopment, the existing site average FAR can be as high as 1.03, with an average FAR of 0.64. This analysis uses a threshold of 0.70 (see Table B-3). f. Low improvement to land ratio (ILR): Among properties with developer/owner interest for redevelopment, the site average ILRs range from 0.15 to 0.57, with an average of 0.37. The threshold used in this analysis is 0.40. g. Age of structures: Because the City has not seen any commercial development during the last few decades, there are few post-1990 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-6 commercial properties in the City. Hermosa Beach sites inventory parcels with property owner and developer interests show a wide range of age. The majority of sites identified for the RHNA were built between 1940 and 1980, only seven parcels have structures built in the 1980s. In fact, five parcels were built in 1981. This analysis uses a threshold year of 1990 for several reasons: 1. Buildings constructed prior to 1990 are typically not compliant with accessibility/ADA requirements. An important fact is that virtually no properties have gone through substantial improvements that would trigger a building permit and therefore reassessment post 1990. This means the majority of these properties are at least 40-50 years of age with outdated systems and infrastructure. Any major renovation would require the buildings be brought up to code, which may be cost prohibitive and physically not feasible. 2. Buildings constructed prior to 1990 may contain asbestos and buildings constructed prior to 1980 may contain lead-based paint. Abatement of these toxic substances can be costly and may defer significant property renovations. 3. For commercial uses, especially retail, 20 years of age is considered outdated as retail is volatile and often reflects market trends. 4. In the nearby City of Manhattan Beach, properties with structures as young as 10 years old (e.g. the Residence Inn site) have developer interest for redevelopment. Similarly in the City of Redondo Beach, the North Kingsdale site where the developer actively acquired commercial properties for consolidation and redevelopment, existing buildings were all constructed during the 1980s and 1990s. Another site in Redondo Beach with developer interest in the Vons site, which was constructed in 1993. h. Height: Most parcels are developed with single-story structures or used as surface parking. The City’s height limits are 30-35 feet (depending on zones), which can accommodate a three-story building. Many commercial and residential buildings in the City along Pacific Coast Highway are three-story buildings. In the City’s SPA-11 and M1, however, the height limit was restricted to two stories. This restriction has been removed as part of the October 2023 Zoning Ordinance update. Therefore, the majority of the parcels in the sites inventory can significantly intensify with redevelopment. Among properties with expressed developer/ property owner interests, many contain two-story structures. These include 555 Pier, 411 Pier, 700 PCH, and 1706 PCH. The majority of the properties contain surface parking and a combination of single-story and two-story structures. In most cases, the two-story structures occupy only a very small footprint of the site. Therefore, the existing height being mostly single-story is used as a factor for potential redevelopment. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-7 Table B-5 provides values for existing FAR, improvement to land value ratio (ILR), age of structure, and height of structures. For parcels that belong to the same grouping, these values are averaged for the group. Only one site – Site #7 – with a capacity for four moderate income units, does not meet at least three factors. It is included in the sites inventory because it is located in a stretch of the commercial corridor that is experiencing transition and the existing use (office) can be converted or redeveloped to incorporate a mixed use development. However, this site is not critical to the City’s ability in meeting its RHNA. While it is included in the sites inventory and has been rezoned, it is excluded in the summary of capacity for meeting the RHNA. 2. Sites Inventory Table B-4 summarizes the City’s inventory of sites compared to the RHNA, while potential vacant and underutilized sites for residential development are listed in Tables B-2 and B-3, respectively. The City’s current inventory of sites does not have adequate capacity to fully accommodate the RHNA allocation for the planning period. Therefore, as required by State law 9 Program 9 in the Housing Policy Plan includes a commitment to process zoning amendments for sufficient sites to accommodate the shortfall. Sites to be rezoned are identified in Table B-5. Figure B-1 illustrates the location of these parcels identified for rezoning. Table B-4 Land Inventory Summary vs. RHNA Income Category Total VL Low Mod Above RHNA (2021-2029) 232 127 106 93 558 Accessory dwelling units 11 28 4 21 64 Remaining RHNA 221 99 102 72 494 Sites Inventory (Table B-5) 353 171 80 604 % Buffer Above Remaining RHNA 10% 68% 11% 22% Source: Hermosa Beach Community Development Dept., 2023 Small Parcels vs. Small Sites Parcels are identified by the site/area number. Many parcels are contiguous and owned by the same owners. These parcels are grouped into sites. No small sites (less than 0.5 acre) are used to meet the City’s lower income RHNA. Only contiguous parcels that are owned by no more than two property owners and can consolidate into a site larger than 0.5 acre (and more than 16 units based on minimum density) are used to fulfill lower income RHNA obligations. These parcels are considered a site because they are generally in the same condition and developed with similar intensity and uses. Combining these parcels will allow for improved site planning given the site shape and access. 9 Government Code Sec. 65583.2(h) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-8 Discussions with developers in the region indicate consolidation of parcels involving two to three property owners are typical given the urbanized character and historical subdivision patterns in Southern California. Contiguous parcels with multiple owners are grouped but not used for lower income RHNA. These parcels can be developed individually; lot consolidation is not necessary to develop market-rate housing. These parcels are grouped because they can form regularly shaped lots that can offer potential for improved site planning and access. For example, Site 28 is comprised of six parcels owned by two property owners, with one owning just one parcel. But even this parcel (0.46 acre) is adequate to accommodate a small to medium size townhome project. It does not require consolidating to achieve the allowable number of units or be feasible for a market rate project. The City received expressions of interest from property owners in being involved in the City’s Housing Element. One particular area is in the City’s Upper Pier area, a two-block stretch of the downtown. Sites 3 through 9 are located in this area. All include contiguous parcels between 0.7 acre and 0.23 acre. • Site 3 includes 1 parcel • Site 4 includes 12 parcels • Site 5 includes 2 parcels • Site 6 includes 2 parcels • Site 7 includes 1 parcel • Site 8 includes 3 parcels These sites are located in the SPA-11 zoning area, which is intended to maintain a downtown scale and feel. Through the City’s Economic Development efforts, the property owners identified this area as being ripe for redevelopment into a mixed-use area. This contemplates retaining ground floor storefronts, but adding residential units to commercial properties to form mixed use developments. The Sites Inventory took this into consideration when identifying this area as contributing towards the Moderate and Above-Moderate RHNA. These properties are developable individually or as part of a lot consolidation. Furthermore, many property owners in this area have collaborative relationships given their common experiences with operating property downtown. This increases the potential for lot consolidation as compared to many other areas. Realistic Capacity Hermosa Beach is completely developed; there are no recent examples of large-scale housing or mixed-use development in the city. There is virtually no vacant multi-family land remaining. Until 2023, mixed-use development is only allowed in the C-1 zone. Given the limited opportunities, no development application for any type of development was filed between 2019 and 2023. In October 2023, the City amended the Zoning Code to allow housing and mixed-use development in portions of C-2, C-3, SPA-7, SPA-8, SPA-11, M-1 and PF zones via an Overlay to implement the Housing Element RHNA sites. The rezoning covers an area that is larger than the RHNA sites to avoid spot zoning. Development interests expressed on these RHNA sites are all for housing and mixed use only. Based on the lack Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-9 of 100% nonresidential development over the past three to four years, the City expects the new opportunities offered by the rezoning will begin to convert commercial uses into housing/mixed use development, such as in the neighboring Redondo Beach, Torrance, and Lawndale. The densities are allowed on rezoned sites (maximum density at 33 and 50 units/acre) would create a substantial financial incentive for redevelopment. Due to extremely high land values, developers are likely to maximize yields on these properties. Also, the trend of redevelopment in the South Bay area is robust, introducing residential uses into existing commercial corridors. However, as a conservative strategy, other than the City-owned properties, capacity at all identified parcels are estimated based on minimum density of 25.1 units per acre for RH or 22 units per acre for the new R2A. Infrastructure (including sufficient water, sewer, and dry utilities) for affordable housing development is not a constraint. City-owned Sites City-owned sites are expected to be long-term leases for housing rental properties. If any City-owned site is sold, it will be in compliance of the Surplus Lands Act. The City is in an early stage of analyzing of the City-owned property for potential redevelopment. Upon City Council approval, a Request For Proposals (RFP) would be issued for a development partner for a public-private partnership to creatively redevelop city-owned properties to better meet the City’s needs and achieve affordable multi-family and senior housing. It is anticipated that the City would develop the public-private partnership RFP in 2024, complete design work, environmental review, and associated approvals in 2024/2025, with construction to begin in the 2026/2027 period. Existing Uses as Impediments to Redevelopment The properties included in the sites inventory are mostly independently owned. There are no major anchor stores included in the sites inventory. Therefore, redevelopment of properties in the sites inventory typically would not involve corporate strategic planning. Typically, commercial properties have leases that are at least one year but many are medium length between three and five years. Therefore, leases are not likely to constitute a major impediment to redevelopment during the eight-year planning period. Only larger tenants may have longer lease terms (five to ten years). However, no major tenants are included in the sites inventory. Ten of the 28 sites identified have expressed interest for redevelopment, indicating existing uses on these sites are not likely to impede redevelopment. In addition, three sites (Sites 12, 13, and 23) have high vacancies in recent years. The Overlay created as part of this Housing Element update is presenting the property owners a financially viable alternative that was not available to them before. Furthermore, several sites with expressed interest for redevelopment are contemplating adaptive reuse and infilling parking space or open areas on site with residential uses. These development concepts can replace the nonviable uses on site without displacing the existing uses. Throughout California, many commercial and shopping centers are being reimagined utilizing such strategies. Therefore, existing uses are not expected to impede the introduction of residential units on site. A nearby example is South Bay Galleria in Redondo Beach. The shopping center has already been approved for reconfiguration of Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-10 existing buildings and uses to add residential units on site. Therefore, existing uses on these sites are not expected to impede the incorporation of housing on these sites. Site 13 can be reimagined with infill housing on site. All the sites included in the inventory are developed with existing uses that are experiencing redevelopment in region. These include retail, office, auto-related, parking, and warehousing/storage uses. A self-storage facility in Carson is being marketed for sale with the potential for housing. This can be similar to Site 26 in this Housing Element. St. Cross Sites The St. Cross church site consists of 15 parcels comprising approximately 2.2 acres developed with a church sanctuary and administrative offices, education building, 18 residential units, and surface parking lots. The church seeks to add housing units on site. The church has rented units to homeless veterans, refugees, and formerly to a women’s shelter, and accommodated workforce housing. St. Cross Church wrote a letter of support for Housing Element. The Housing Element evaluated existing uses on proposed properties for the Sites Inventory. The church expressed interest in furthering the existing mission of providing affordable housing to members of the community in need. The feasibility of development is supported by the owner of St. Cross, who has expressed the desire to add to the existing housing uses on the property. The City has evaluated the property and determined that existing uses will not impede the development of housing, and that existing uses have already set the stage for additional similar uses. The St. Cross church site is located in an established residential neighborhood with single- and multi-family homes. The neighborhood includes properties occupied by long-tenured residents and properties recently acquired for redevelopment. Due to its potential for ocean views, the neighborhood is highly desirable from a real estate standpoint. The trend in the neighborhood has been demolition of smaller homes for large single-family homes, often on R-2-zoned lots. The inclusion of the St. Cross church in the City’s Housing Element, and rezoning to accommodate the Housing Element Regional Housing Needs Assessment (RHNA) Allocation, raised substantial neighborhood concerns. The City received a multitude of comments during the Housing Element adoption process, and altered the plan for the St. Cross site, lowering the RHNA densities from 33 dwelling units per acre (du/ac) to 25 du/ac, with a minimum of 22 dwelling units per acre. The 22 du/ac supports the Sites Inventory indication that the St. Cross site, can be developed with 44 units. The 15 parcels comprising the St. Cross church site form Site 1 and 2, separated by a portion of an alley and a one-block length of 19th Street that provides access to both the church site and other properties. The St. Cross church site is developed with a church sanctuary and administrative offices, education building, 18 residential units (with about 7,000 sq. ft. of 2-story construction), and surface parking lots. Assuming that the church sanctuary and administration building is retained, there is approximately 93,500 square feet (2.1 acres) of land area (based on an aerial map measurement). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-11 Site 1 amounts to approximately 9,500 square feet and Site 2 (deducting the church sanctuary and administrative offices) amounts to approximately 84,000 square feet of land area. The rest of the site is underdeveloped, consisting of a substantial parking lot and small residential structures. Site 1 Site 2 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-12 There is potential for consolidating and redeveloping residential projects to the height limit of 30 feet, which allows 2 or 3 stories depending on the roof pitch. While there have not been official development plans submitted, residential development to 22 dwelling units per acre is achievable by the following methods (in no particular order): • Building additional residential units on the underdeveloped areas, such as parking lots or redundant driveways • Second-story additions or expansions to existing residential structures to accommodate more units. • Lot consolidation / reconfiguration of separate parcels to accommodate construction of attached residential uses. • Conversion of portions of existing structures, like the education building, to include residential uses. • Use of density bonus provisions to accommodate additional units or waivers and concessions of development standards. There have been many townhome developments of similar density per acre in the region developed on parking lots or portions of underutilized sites. There are examples of residential developments that can be accommodated on the available land area using the above- mentioned methodology. Some include the following. 1) Example: A 3-story, 32-unit project (all two- or three-bedroom units, ranging from 1,000 square feet to 1,680 square feet) was recently approved in the City of Long Beach on a site of 44,153 square feet (1.01 acre). (This is a slightly larger scale development than the scale found in the St. Cross church site) 2) Example: A 2-story, 24-unit residential townhome project (all two-bedroom units) was approved in January 2021 in the City of Torrance on a site of about 43,560 square feet (1 acre), on the former site of a church. (This is comparable scale to the housing on the St. Cross church site). 3) Example: A 3-story 48-unit market-rate residential development (all three- and four- bedroom units, ranging from 1,724 to 2,252 square feet) is under construction in the City of Torrance on a site of 2.5 acres on a former church parking lot. The project retained the church sanctuary. (This is a larger scale development than the scale found in the St. Cross church site) 4) Example: A 2-story 86-unit senior living facility was approved on a 2.65-acre former parking lot in the City of Long Beach. (This is a larger site than the St. Cross church site, but has smaller units for seniors which is more consistent with the St. Cross church site scale). 5) Example: A 3-story, 22-unit townhome development (studios to 4 bedrooms) was approved in the City of Gardena a 0.72-acre lot, using a density bonus that added 4 units. (This is a smaller site than the St. Cross church site, but would be scalable). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-13 4. Availability of Infrastructure Water Hermosa Beach is located in the California Water Service Company’s (Cal Water) Hermosa-Redondo District. The PLAN Hermosa EIR evaluated the potential impacts of development on water supply and concluded that there was sufficient capacity to serve this increase in demand. The PLAN Hermosa EIR also concluded that existing water treatment infrastructure was sufficient to accommodate development anticipated under the PLAN Hermosa. Improvements under the proposed projects could require replacement with larger diameter pipes if needed. Potential environmental impacts that could result from pipeline improvements would be project specific and are generally limited to upgrades within the project frontage. New or expanded local water distribution facilities would require permitting and review in accordance with CEQA, which would ensure environmental impacts are disclosed and addressed in the environmental analysis. The Hosing Element program changes would generate approximately 600 additional residents compared to what was evaluated in the PLAN Hermosa, but 1,000 fewer jobs and workers and therefore is similar to the amount of development assumed in the PLAN Hermosa EIR. Moreover, new construction implemented under the Project would be required to implement water conservation components of the Building Code to reduce potable water demand. Therefore, no further impact to these services and facilities are anticipated. Therefore, sufficient water is available to serve the RHNA anticipated units. Sewer The City of Hermosa Beach provides wastewater collection services in the City. The effluent collected by sewer lines is discharged into the Sanitation Districts of Los Angeles County (LACSD) trunk lines. The LACSD trunk lines flow to the Joint Water Pollution Control Plant (JWPCP), located in Carson. The JWPCP is one of the largest wastewater plants in the world and is the largest of the LACSD wastewater treatment plants. The PLAN Hermosa EIR evaluated the potential impacts of new development on sewer capacity and concluded that there was sufficient capacity to serve this increase in demand. The Housing Element program changes could generate approximately 600 additional residents compared to what was evaluated in the PLAN Hermosa, but 1,000 fewer jobs and workers. Therefore, it is similar to the amount of development assumed in the PLAN Hermosa EIR and no further impact to these services and facilities are anticipated as sufficient sewer service is available to serve the RHNA anticipated units. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-14 Table B-5 Sites Inventory Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total 10 552 11th Place 4187-020-907 PF Public Facilities M-1 Light Manufacturing PF Public Facility 34 50 1.00 Self-Storage - 25 25 - 50 ILR: 0 Year Built: NA Height: 1 This city-owned property currently has a month-to-month lease for a public storage facility. It is surrounded on two sides by medium density housing. City is currently working with a real estate development analysis firm to determine potential public- private-partnership for housing development, including affordable housing. Proposed General Plan and Public Facility zoning is 34-50 units per acre, for a total yield of 50 units. Potential RFP in 2025 and construction in 2026. Y City of HB 11 710 Pier Avenue 4187-024-902 PF Public Facilities O-S Open Space PF Public Facility 34 50 1.00 Community Center 30 20 - - 50 ILR: 0 Year Built: NA Height: Mostly unoccupied land with only 16% of site with a 2-story building This city-owned community center property is currently under study by a real estate development analysis firm to determine potential public-private-partnership for senior affordable housing development of up to 50 units. This site is ideal for senior housing due to smaller units, reduced parking needs, services offered at community center, available onsite parking and proximity to PCH bus transportation and grocery/drug Y City of HB Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-15 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total Proposed General Plan and Public Facility zoning will be changed to 34-50 units per acre, for a total yield of 50 units. Potential RFP in 2024 and construction in 2026 or 2027. The Community Center building is two stories and designated historic, and occupies 0.75 acre of the site. The rest of the site is developed with surface parking, lawn area, and tennis courts that could be reconfigured or redeveloped to accommodate potential residential development. The Sites Inventory list this as one (1) acre, but there are actually 3.75 acres of space that is not currently occupied by any building. 28 911 1st Street 4186-026-047 CC Community SPA-7 Specific Plan 25.1 33 0.46 Commercial Parking - - - 12 12 ILR: 0 Year Built: NA Height: 0 Currently zoned commercial, this vacant former parking lot site is surrounded on three sides by low-to-medium density residential. The owner is interested in developing 12 for- sale units, likely at the moderate and above- moderate income levels. Y 1ST STREET PARTNERS LLC C/O LUIGI SCHIAPPA DEVELOPMENT 28 102 PCH 4186-026-804 CC Community 25.1 33 0.4 - - 5 5 10 ILR: NA Year Built: NA Height: 2 Built in 1975, this telephone/ internet utility structure and supporting parking lots once Y GTE CALIF INC SBE 201-19- 874B PAR 5 6PTS 28 102 PCH 4186-026-806 CC Community 25.1 33 0.2 - - 5 - 5 28 102 PCH 4186-026-801 CC Community 25.1 33 0.1 - - 3 - 3 28 102 PCH 4186-026-805 CC Community 25.1 33 0.09 - - 3 - 3 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-16 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total 28 1st Street and PCH 4186-026-800 CC Community SPA-7 Specific Plan 25.1 33 0.5 Commercial Parking - - 6 7 13 technician desks and large number of phone operator desks. The building currently houses telephone/internet equipment in approximately 20% of the building with only a handful of employees. The owner has recently approached the City to discuss adaptive reuse of this Art Deco building, with equipment consolidation and introduction of housing uses. At least two affordable housing developers have expressed interest in working with the property owner to convert a portion of the building into residential units. Of 1.49 acres, about 0.62 acre (27,000 sq. ft.) is a surface parking lot. An existing building with a footprint of about 0.85 acres (37,000 sq. ft.) A 20,000 square-foot portion of the building is 2 stories tall and currently vacant. There is potential for conversion to residential use. This building is 80% vacant and only has telecommunications switching equipment inside. 19 1103 Aviation Boulevard 4185-017-015 GC Gateway C-3 General and Highway Commercial 25.1 33 1.3 Multi-tenant Commercial 24 8 - - 32 ILR: 0.34 Year Built: 1964 Height: 0 and 1 Older 1975 commercial site with multiple tenant retail. Developer inquired about adding residential uses to commercial property. Low density residential is adjacent to the rear of the property. These parcels are currently functioning as an integral site. Y BARA S TR BARBARA S KENNARD TRUST AND HOROWITZ,RAL PH TR HOROWITZ 19 1209 Aviation Boulevard 4185-017-014 GC Gateway C-3 General and Highway Commercial 25.1 33 0.5 Commercial Parking 6 5 - - 11 Y SELECTIVE API ONE LLC Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-17 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total Factors for Selection: a, d, f, g, h 19 1062 AVIATION 4186-001-008 CC Community and Highway 25.1 33 0.12 Retail - Nursery - - 3 - 3 ILR: 0.11 Year Built: 1964 Height: 1 - MARIE SOLYMOSI 19 1062 AVIATION 4186-001-007 CC Community and Highway 25.1 33 0.11 Retail - Nursery - - 2 - 2 2 1732 Monterey Boulevard 4183-016-028 Density/ Family Density 22 25 0.07 1 Unit - 1 - - 1 FAR: 0.5 ILR: 0.56 Year Built: 1923-1968 Height: Average 1 (5 0-story, 4 1-story, 6 2- story) The St. Cross church site consists of 15 parcels, developed with a church sanctuary and administrative offices, education building (24,000 sq. ft. footprint), 18 residential units (with about 7,000 sq. ft. of 2-story construction), and surface parking lots. The surface parking areas and underdeveloped properties on the site create potential for additional residential units. These parcels are currently functioning as one campus. Leaders at St. Cross Church reached out the City to explore ways to add additional units to their property portfolio, which includes 15 lots with historic church, 18 existing units and parking lots. The church seeks to add housing units for the dual purpose of providing affordable housing to the community and market rate units to help offset costs for affordable units. The church has rented units to homeless veterans, refugees, and formerly to a women’s shelter. Y RECTOR, WARDENS AND VESTRYMEMBE RS ST CROSS PARISH HERMOSA BEACH 2 1736 Monterey Boulevard 4183-016-029 Density/ Family Density 22 25 0.07 1 Unit - 1 - - 1 2 1818 Monterey Boulevard 4183-016-040 Density/ Family Density 22 25 1.2 Religious Institution 27 - - - 27 2 302 19th Street 4183-016-033 Density/ Family Density 22 25 0.07 Wireless Comm. - - - - - 1 1900 Monterey Boulevard 4182-019-001 Density/ Family Density 22 25 0.08 3 Units - - - - - 1 1908 Monterey Boulevard 4182-019-002 Density/ MD Medium R-1 Single- Family Residential R-2A Medium Density Residential (22) 22 25 0.06 Private Parking Lot 1 1 - - 2 1 1914 Monterey Boulevard 4182-019-003 Density/ MD Medium R-1 Single- Family Residential R-2A Medium Density Residential (22) 22 25 0.06 2 units - - - - - 2 1718 Loma Drive 4183-016-011 Density/ MD Medium R-2 Two Family Residential R-2A Medium Density Residential (22) 22 25 0.06 2 Units - - - - - 2 1722 Loma Drive 4183-016-012 Density/ MD Medium R-2 Two Family Residential R-2A Medium Density Residential (22) 22 25 0.06 1 Unit - 1 - - 1 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-18 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total 2 1730 Loma Drive 4183-016-035 Density/ MD Medium R-1 Single- Family Residential R-2A Medium Density Residential (22) 22 25 0.1 1 Unit 1 1 - - 2 add affordable units, including consideration of SROs or a Planned Unit Development (PUD). St. Cross Church wrote a letter of support for Housing Element recommending RHD zoning. Factors for Selection: a, d, e, g, h 2 1734 Loma Drive 4183-016-036 Density/ MD Medium R-1 Single- Family Residential R-2A Medium Density Residential (22) 22 25 0.1 2 Units - 1 - - 1 2 Loma Drive and 19th Street 4183-016-037 Density/ MD Medium R-1 Single- Family Residential R-2A Medium Density Residential (22) 22 25 0.09 Private Parking Lot 1 1 - - 2 2 Loma Drive and 19th Street 4183-016-038 Density/ MD Medium R-1 Single- Family Residential R-2A Medium Density Residential (22) 22 25 0.1 Private Parking Lot 1 2 - - 3 2 1854 Loma Drive 4183-016-039 Density/ MD Medium R-1 Single- Family Residential R-2A Medium Density Residential (22) 22 25 0.1 Private Parking Lot 1 2 - - 3 2 1902 Loma Drive 4183-023-022 Density/ MD Medium R-1 Single- Family Residential R-2A Medium Density Residential (22) 22 25 0.1 Private Parking Lot 1 2 - - 3 5 4183-018-013 CC Community 25.1 33 0.24 - - 3 3 6 ILR: 0.57 Year Built: 1957-1963 Height: Mostly 1 This 32,000 sq. ft. site is developed with about 16,000 sq. ft. of building footprint. A 7,600 sq. ft. portion (0.037 acre) of the building is currently two stories. Property owner communicated to staff regarding interest in redevelopment. Y 555 PIER AVENUE LLC C/O RIVIERA CENTER MGMT CO 5 555 Pier Avenue 4183-018-015 CC Community SPA-11 Specific Plan 25.1 33 0.49 Multi-tenant Commercial - - 6 6 12 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-19 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total 4 517 Pier Avenue 4183-018-018 CC Community SPA-11 Specific Plan 25.1 33 0.07 Offices - - - 1 1 ILR: 0.57 Year Built: 1957-1963 Height: 1 - WRAY,RICHAR D AND DOLORES TRS WRAY FAMILY TRUST 4 4183-018-017 CC Community 25.1 33 0.07 Offices - - - 1 1 FAR: 0.7 ILR: 0.37 Year Built: 1939-1957 Height: Mostly 1 (8 1-story and 1 2-story) These parcels are all being accessed from Oak Street behind the buildings with no individual driveways. Shared access is conducive to consolidation. Factors for Selection: d, e, f, g, h - 4 4183-018-016 CC Community 25.1 33 0.07 - - - 1 1 - WWS PIER LLC 4 4183-018-007 CC Community 25.1 33 0.07 - - - 1 1 - REFOUA LLC 4 4183-018-006 CC Community 25.1 33 0.07 - - - 1 1 4 4183-018-005 CC Community 25.1 33 0.07 Restaurant - - - 1 1 4 425 Pier Avenue 4183-018-004 CC Community SPA-11 Specific Plan 25.1 33 0.07 Multi-tenant Commercial - - - 1 1 - AND LEA TRS D AND L CAPALDI 4 405 Pier Avenue 4183-018-001 CC Community SPA-11 Specific Plan 25.1 33 0.07 Personal Services - - - 1 1 - MEHDI K AND ROSA TRS DANESHMAND 4 337 Pier Avenue 4183-018-026 CC Community SPA-11 Specific Plan 25.1 33 0.08 Restaurant - - 2 - 2 - RT H TR SACKLEY 4 321 Pier Avenue 4183-017-025 CC Community SPA-11 Specific Plan 25.1 33 0.17 ground floor and residential on - - 4 - 4 - HB 321 PIER AVE LLC 4 419 Pier Avenue 4183-018-003 CC Community SPA-11 Specific Plan 25.1 33 0.05 Multi-tenant Commercial - - - 1 1 ILR: 0.38 Year Built: 1955 Height: 1 Y 419 PIER AVENUE LLC Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-20 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total Owner provided preliminary plans for 4 residential units on 2nd and 3rd floor. Currently zoned commercial only. Zoning development standards to be determined with residential standards. 4 411 Pier Avenue 4183-018-002 CC Community SPA-11 Specific Plan 25.1 33 0.07 Personal Services - - - 1 1 ILR: 0.42 Year Built: 1945 Height: 1 Owner interested in adding small residential units on 2nd and 3rd floors. Y AESTHETIC HORIZONS INC C/O JONATHAN DAVID 7 338 Pier Avenue 4187-011-054 CC Community SPA-11 Specific Plan 25.1 33 0.17 Office - - 4 - 4 ILR: 1.65 Year Built: 2010 Height: 2 While this parcel appears newer, it is located between blocks of parcels that exhibit potential for conversion into mixed use development. Office buildings also often have higher FAR and ILR. However, with increased remoting working, this site can present opportunity for redevelopment. This is included only as a RHNA buffer site and is not needed to accommodate the City’s moderate income RHNA. - BLAKE HOLDINGS LLC C/O DAVID MCGOVERN 8 400 Pier Avenue 4187-019-037 CC Community SPA-11 Specific Plan 25.1 33 0.21 Offices - - 5 - 5 ILR: 0.60 Year Built: 1915-2010 Height: Primarily 1 (2 1-story and 1 2-story) - HOLDINGS LLC C/O DAVID 8 4187-019-003 CC Community 25.1 33 0.11 Restaurant - - 2 - 2 - Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-21 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total 8 422 Pier Avenue 4187-019-022 CC Community SPA-11 Specific Plan 25.1 33 0.23 Multi-tenant Commercial - - 5 - 5 Factors for Selection: d, e, f, g, h PROPERTIES 9 4187-020-020 CC Community 25.1 33 0.1 Offices - - 1 - 1 ILR: 0.27 Age of Structure: 1925-1966 Height: Average 1 (1 0-story, 1 1-story, 1 2- story) Potential for office conversion. - 9 4187-020-032 CC Community 25.1 33 0.1 - - 1 - 1 - REDDY, DAMODER P AND SOUMITRI TRS PATI FAMILY TRUST 9 526 Pier Avenue 4187-020-017 CC Community SPA-11 Specific Plan 25.1 33 0.08 Retail Business - - 2 - 2 3 301 Pier Avenue 4183-017-001 CC Community SPA-11 Specific Plan 25.1 33 0.19 Retail Business - - 5 - 5 ILR: 0.87 Year Built: 1959 Height: 1 - SANDY FEET LLC C/O DONALD ENGLISH 6 4187-011-012 CC Community 25.1 33 0.09 Retail Business - - 2 - 2 ILR: 1.0 Age of Structure: 1923-1944 Height: 1 Common ownership; currently functioning as one site. - VISION HERMOSA 1 0 LLC 6 318 Pier Avenue 4187-011-013 CC Community SPA-11 Specific Plan 25.1 33 0.11 Retail Business and Residential - - 2 - 2 18 1214 Owosso Avenue 4185-015-021 CC Community and Highway 25.1 33 0.1 1 Unit - - 3 - 3 ILR: 0.16 Year Built: 1923 Height: 1 Common ownership; currently functioning as one site. - CASNER,CRAIG 18 1055 Aviation Boulevard 4185-015-024 CC Community C-3 General and Highway Commercial 25.1 33 0.05 Vacant Land - - 1 - 1 26 530 6th Street 4188-018-028 25.1 33 0.33 Self-Storage - 4 4 - 8 - Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-22 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total 26 Cypress (530 4188-018-027 CI Light Industrial M-1 Light Manufacturing 25.1 33 0.12 Self-Storage - 1 2 - 3 Height: 2 2-story warehouse building with self-storage use in residential adjacent neighborhood. This is expected to be developed due to zoning changes now allowing residential development. Warehouse building existed in the 1950s when the freight line ran through town. The four parcels are under common ownership that function as a cohesive site with shared access. The property is located in the M1 zone where residential has never been permitted. Rezoning to allow residential uses in M1 will increase redevelopment potential. This rezoning is not comparable to past Housing Element programs, since there were no rezoning programs nor were non- residential sites contemplated at that point. As demonstrated in Table B-2 Redevelopment Trends in the South Bay, there are examples of storage facilities (RV parking, truck storage, equipment rental yard, etc) being converted to housing developments. There is currently also a self- storage site in Carson, within the South Bay, marketed for housing. Factors for Selection: d, f, g HUNT TRUST C/O HUNT ENTERPRISES INC 26 4188-018-031 25.1 33 0.17 Self-Storage - 2 2 - 4 26 Valley Drive (530 6th St.) 4188-018-008 CI Light Industrial M-1 Light Manufacturing 25.1 33 0.05 Self-Storage - - 1 - 1 27 Pacific Coast 4186-025-029 CC Community SPA-7 Specific Plan 25.1 33 0.08 Auto Repair - - 2 - 2 ILR: 0.16 Year Built: 1905-1925 Height: <1 (2 0-story, 2 1-story) Common ownership; currently functioning as - GRAND PROPERTY GROUP LLC 27 4186-025-028 CC Community 25.1 33 0.15 Auto Repair - - 4 - 4 27 4186-025-027 CC Community 25.1 33 0.08 Auto Repair - - 2 2 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-23 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total 27 Pacific Coast 4186-025-002 CC Community SPA-7 Specific Plan 25.1 33 0.05 Auto Repair - - 1 - 1 Factors for Selection: d, e, f, g, h 25 747 5th Street 4188-030-002 SC Service SPA-7 Specific Plan 25.1 33 1 Auto Repair 20 5 - - 25 FAR: 0.4 ILR: 0.29 Year Built: 1923-1978 Height: 1 Factors for Selection: d, e, f, g, h - MARDIKIAN, 25 715 5th Street 4188-030-001 SC Service SPA-7 Specific Plan 25.1 33 0.37 Auto Repair/Fitness Center - - - 9 9 - ANDREW AND ELIZABETH AND FISHER, 22 4187-032-027 SC Service 25.1 33 1 Lumber Yard 20 5 - - 25 FAR: 0.2 ILR: 0.04 Year Built: 1988 Height: <1 (5 0-story, 1 1-story) Site 24 is part of Site 22 owned by the same party. Currently, the two sites function as an integral site. Factors for Selection: d, e, f, g, h - LEARNED, MICHAEL CO TR LEARNED TRUST 24 709 6th Street 4187-033-022 SC Service 25.1 33 0.06 1 1 - - 2 24 721 6th Street 4187-033-021 SC Service 25.1 33 0.06 1 1 - - 2 24 723 6th Street 4187-033-020 SC Service 25.1 33 0.06 1 1 - - 2 24 Hwy and 6th 4187-033-019 SC Service SPA-7 Specific Plan 25.1 33 0.06 Parking Lot/Lumber Yard 1 1 - - 2 24 725 6th Street 4187-033-018 SC Service 25.1 33 0.06 1 1 - - 2 23 4186-013-019 SC Service 25.1 33 0.36 Auto Repair 6 3 - - 9 ILR: 0.32 Year Built: 1923-1978 Height: Average 1 (1 0-story, 1 1-story, 1 2- story) Site 23 is 0.86 acre, consisting of three parcels with two owners, currently functioning as a cohesive site with shared access, operating as interrelated auto businesses. If consolidated, the site would benefit from the City’s current lot consolidation allowances. Most of the site is automobile-related uses developed with only - SMILE LLC 23 4186-013-018 SC Service 25.1 33 0.14 Fitness Studio 2 2 - - 4 23 620 Pacific Coast Highway 4186-013-064 SC Service SPA-7 Specific Plan 25.1 33 0.36 Car Rental Agency 6 3 - - 9 - NOOR ESTATE LLC Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-24 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total story automobile-related buildings. There is a two-story building with two small office suites above. (At least one office was vacant as of summer 2023). The two-story portion of the building is approximately 1,400 square feet. 13 1100 Pacific Coast Highway 4185-011-039 GC Gateway and Highway 25.1 33 0.55 Retail Market 10 4 - 14 ILR: 0.65 Year Built: 1977 Height: Average 1 (1 0-story, 1 2-story) This is a 2.8-acre shopping center with one owner and operating as a cohesive site and would need to be consolidated for shared access if redeveloped. About 0.9 acres are occupied by buildings, with the rest (almost two acres) being surface parking lot and undeveloped land. The site is developed with about 40,000 square feet of building area. All buildings are single story with the exception of one 7,500 square foot portion which is two-story. This two-story portion has been partially vacant for over a year. This indicates that there are no significant second-story encumbrances on the development of the site for mixed use or residential purposes. The 2.8 acre center comprises two parcels. One parcel is 0.55 acre, is coterminous with the footprint of one building and is entirely nestled (landlocked) in the 2.27 acre parcel. As such, the entire site already functions as one cohesive site with driveway access points and internal circulation. Y BACON, STEPHEN F CO TR ROGER E BACON DECD TRUST 13 1100 Pacific Coast Highway 4185-011-061 GC Gateway C-3 General and Highway Commercial 25.1 33 2.27 Parking Lot/Pad Shops 30 6 5 16 57 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-25 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total Factors for Selection: d, e, g, h 12 1601 Pacific Coast Highway 4185-011-061 GC Gateway C-2 Commercial SPA-8 25.1 33 1.92 Personal Services with office space 24 8 8 8 48 ILR: 1.80 Year Built: 1988 Height: 0 Given the high vacancy and the reliance on one anchor (gym), there is a likelihood that residential may be a viable conversion. The building also has similar massing as other nearby multi-family residential buildings (like the adjacent one). This property has the potential to redevelop through use of internal conversion into residential. - 1601 PCH LP C/O SHAOUL LEVY 14 900 AVIATION 4186-003-024 CC Community and Highway 25.1 33 0.15 Retail - - 3 - 3 FAR: 0.8 ILR: 0.39 Year Built: 1940-1981 Height: <1 (6 0-story, 5 1-story, 1 2-story) These sites are under common ownership and is about 0.7 acres (30,000 sq ft). About 7,200 square feet of building footprint is two stories. Factors for Selection: d, f, g, h - EDDIE TALBOT TRUST 14 916 AVIATION 4186-003-030 CC Community and Highway 25.1 33 0.21 Retail - - 5 - 5 14 950 AVIATION 4186-003-019 CC Community and Highway 25.1 33 0.05 Parking Lot - - 1 - 1 14 950 AVIATION 4186-003-018 CC Community and Highway 25.1 33 0.05 Parking Lot - - 1 - 1 14 950 AVIATION 4186-003-017 CC Community and Highway 25.1 33 0.05 Parking Lot - - 1 - 1 14 950 AVIATION 4186-003-027 CC Community and Highway 25.1 33 0.08 Parking Lot - - 2 - 2 14 950 AVIATION 4186-003-028 CC Community and Highway 25.1 33 0.14 Multi-tenant Commercial - - 3 - 3 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-26 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total 15 1000 AVIATION 4186-002-020 CC Community and Highway 25.1 33 0.07 Multi-tenant Commercial - - 1 - 1 15 1014/1016 AVIAITION 4186-002-013 CC Community and Highway 25.1 33 0.03 Multi-tenant Commercial - - 1 - 1 15 1016 AVIAITION 4186-002-012 CC Community and Highway 25.1 33 0.03 Parking Lot - - 1 - 1 15 1036 AVIATION 4186-002-011 CC Community and Highway 25.1 33 0.03 Parking Lot - - 1 - 1 15 1036 AVIATION 4186-002-021 CC Community and Highway 25.1 33 0.09 Multi-tenant Commercial - - 2 - 2 16 1021 AVIATION 4185-014-015 CC Community and Highway 25.1 33 0.11 Multi-family - - 2 - 2 FAR: 0.4 ILR: 0.57 Year Built: 1947-1962 Height: 1 Factors for Selection: d, e, g, h - HBAVIATION LLC 16 1029 AVAITION 4185-014-015 CC Community and Highway 25.1 33 0.11 Multi-family - - 2 - 2 16 1035 AVAIATION 4185-014-001 CC Community and Highway 25.1 33 0.17 Multi-tenant Commercial - - 4 - 4 29 824 1ST STREET 4186-031-102 CC Community SPA-7 Specific Plan 25.1 33 0.13 Abandoned Office Condos - - 3 - 3 ILR: 0.18 Year Built: 1979 Height: 1 - KOCHDVPMT LLC 21 700 Pacific Coast Highway 4186-012-014 SC Service C-3 General and Highway Commercial 25.1 33 0.33 Abandoned Auto Repair - - 4 4 8 ILR: 0.28 Year Built: 1945 Height: 1 Owner communicated to staff regarding interest in redevelopment. Y LOWENSTEIN,J OSEPH R AND GAIL TRS LOWENSTEIN TRUST Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-27 Site/Area No. Address APN Existing/ Proposed GP Existing Zoning Proposed Zoning Min. Den. Max. Den. Parcel Size (acres) Existing Use Capacity Based on Minimum Density Factors for Selection Owner/ Developer Interest Owners Low Mod Total 30 4186-031-001 CC Community 25.1 33 0.14 Auto Related 2 2 0 0 4 ILR: 0.15 Year Built: 1955 Height: <1 (3 0-story, 1 1-story) Owner submitted a letter of interest for redevelopment. Y 900 North PCH LLC c/o Peter Nolan 30 No Address 4186-031-002 CC Community 25.1 33 0.14 Auto Related 1 2 0 0 3 30 4186-031-003 CC Community 25.1 33 0.25 Auto Related 3 3 0 0 6 30 26 N PACIFIC COAST HWY 4186-031-036 CC Community Specific Plan 25.1 33 0.21 Auto Related 2 3 0 0 5 31 4185-002-007 CC Community 25.1 33 0.13 Retail 0 0 3 0 3 ILR: 0.29 Year Built: 1952 Height: 1 Only occupied by a 1-story single-family home. Owner submitted a letter of interest for redevelopment. Y Egerer, Joseph J and Egerer, Thomas C 31 1706 PACIFIC COAST HWY 4185-002-014 CC Community Specific Plan 25.1 33 0.17 Retail 0 0 4 0 4 Notes: *Income level assigned to lower for parcels at least 0.5 ac. and smaller parcels that can be consolidated, or moderate for other small parcels less than 0.5 ac. Site 7 is excluded as a site to meet the RHNA as it only meet two of the five criteria for underutilization. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix B – Land Inventory Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 B-28 Figure B-1 Sites Inventory Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-1 Appendix C Public Participation Summary This Appendix describes opportunities for public involvement along with an explanation of how public comments were incorporated into the Housing Element. In addition, prior to the adoption hearings all interested parties were given the opportunity to review the recommended revisions. 1. Public Participation for the Development of the 6th Cycle Housing Element Public participation is an important component of the planning process, and this update to the Housing Element has provided residents and other interested stakeholders, particularly lower-income households and persons with special needs, numerous opportunities for review and comment. Outreach Process Early in the process a dedicated Housing Element update website10 was created and an online survey was posted to solicit comments about housing needs in the city. Public notices of all Housing Element meetings and public hearings were published in advance of each meeting, as well as posting on the City’s website and direct mail to the Housing Element interest list (Table C-1). The draft Housing Element was made available for review at City Hall, posted on the City’s website, as well as at the Public Library. Notice of availability of the draft Housing Element was also provided to housing advocates, mobile home residents, and non-profit organizations representing the interests of lower-income persons and special needs groups. Table C-1 on the following page lists persons and organizations that were notified of public meetings for this Housing Element update. In addition, public hearings are televised on the local cable channel. During the Housing Element update process City Staff conducted interviews with key members of the community listed below to help determine community priorities, housing needs, and goals for housing in Hermosa Beach. • Hermosa Beach City School District • Manhattan Beach Unified School District • Employers (Vons, Lazy Acres Grocery, Beach House Hotel) • Commercial property owners (Aviation Blvd. 8/3/21) • Churches (Our Lady of Guadalupe Catholic Church, St. Cross Episcopal Church, Hope Chapel) • Affordable Housing Developers (City Ventures, Lance Libriano) 10 https://www.hermosabeach.gov/our-government/city-departments/community-development/plans- programs/housing-element-update Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-2 • St. Cross Episcopal Church indicated interest in building additional affordable and market-rate units at their properties, and wrote a letter of support for the Housing Element. In addition to public meetings, the City has an email list with over 3,500 parties (expanded from 1,800 parties since the beginning of the Housing Element process) who have requested to be included on items associated with the Housing Element. For every Housing Element event (meeting, posting, revision), the City announces the posting of the Housing Element to that list via email. The City schedules workshops during times outside of business hours due to staffing and to accommodate those with work hours. We also offer hybrid attendance options. The City partners with community agencies for outreach at community events on weekends and at public locations. The City also continues to offer hybrid meetings. After receiving comments on the draft Housing Element from the State Housing and Community Development Department, a proposed final Housing Element was prepared and made available for public review prior to adoption by the City Council. For City Council and Commissions meetings, the public has the following options for attendance and participation: 1) In-Person (viewing live and participation) 2) In-Person with Assistive Listening Device 3) Phone – Toll Free - (listening live and participation) 4) Videoconference (viewing live and participation) 5) Video over City website (viewing live) 6) Video over internet (viewing live or later) 7) Cable television (viewing live or later) The City offers these methods of participation to ensure a variety of methods to the community, including those without internet or ability to operate complex technology. For community workshops and meetings, the City offers to the degree possible hybrid attendance depending on the setting. Usually, this includes a minimum of two (2) methods of attendance consisting of in-person and one other method. The following is a list of opportunities for public involvement in the preparation of this Housing Element update. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-3 Planning Commission meeting December 15, 2020 Housing Needs Workshop and Study Session February 3, 2021 Planning Commission Meeting June 30, 2021 City Council Meeting July 27, 2021 Planning Commission Public Hearing November 16, 2021 City Council Public Hearing December 21, 2021 Planning Commission Meeting December 5, 2022 Planning Commission Study Session March 9, 2023 Planning Commission Study Session March 23, 2023 Presentation at Mayor’s cleanup event April 10, 2023 Planning Commission Public Hearing June 20, 2023 City Council Study Session July 11, 2023 City Council Public Meeting July 25, 2023 City Council Public Hearing August 8, 2023 The May 2023 Revised Housing Element was posted on the City’s website on May 3, 2024 for ten days. Public Comments Received During and after the June 20, 2023 Planning Commission public hearing to consider the revised Housing Element, the City received a significant volume of comments concerning the City’s Sites Inventory to accommodate the RHNA. Residents were concerned about the magnitude of the proposed rezoning at the St. Cross Episcopal church site (Sites 1 and 2). At the July 11, 2023, City Council meeting, the volume of comments increased, with community members recommending alternative strategies for meeting the RHNA, such as adding new sites to the Sites Inventory in place of an affordable housing site at St. Cross. However, there were also comments from the public supporting the rezoning of St. Cross to allow for additional affordable units. Representatives from St. Cross were also present to support their dedication to providing affordable housing in the community and the willingness to work with the neighbors. The City Council responded by encouraging the community members to submit additional sites for consideration and staff to conduct additional research on the any submitted sites and strategies proposed by community members. At its August 8, 2023 meeting, the City Council conducted a public hearing to consider the revised Housing Element, deliberated on the Sites Inventory, and adopted the revised Housing Element with direction to staff to make adjustments to the sites inventory, including: • Retaining the St. Cross site, creating a new zoning district to accommodate medium-high density residential at 22-25 dwelling units per acre. This action was directly in response to public comments regarding increasing density at this site. The City Council created a new medium-high density zoning category that represents a moderation from the proposed rezoning to high density, but still allows additional affordable housing to be added to the site. • Adding two new sites to the inventory (Sites 30 (8-26 Pacific Coast Highway) and 31 (1706/1734 Pacific Coast Highway) where property owners have expressed interest in development of housing, including affordable housing. These sites will be Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-4 including in zoning amendments that allow for high density residential uses at 25.1- 33 dwelling units per acre. 2. Public Comments Received by HCD on the Adopted Housing Element HCD transmitted to City staff public comments pertaining to the St. Cross site and the Land Value Recapture program. The City appreciates the opportunity to provide clarifying information and thematic responses to the comments. List of Public Comments received by HCD: 8/2/2023 Tony Higgins St. Cross site – existing uses vs. RHNA 8/7/2023 Tony Higgins St. Cross site – existing uses vs. RHNA 8/9/2023 Tony Higgins St. Cross site – existing uses vs. RHNA 8/10/2023 Tony Higgins St. Cross site – existing uses vs. RHNA 8/10/2023 Tony Higgins St. Cross site – existing uses vs. RHNA 10/17/2023 RezHB St. Cross site – existing uses vs. RHNA 10/19/2023 Jon David Land Value Recapture – barrier to development 10/23/2023 Jon David Inquiry on submitting comments 10/23/2023 Jon David Land Value Recapture – barrier to development 12/19/2023 Jonathan Wicks Land Value Recapture – should apply to single-family units 12/19/2023 Laura Pena, et al. • Land Value Recapture – barrier to development • Parking constraints 1/8/2024 Jon David Land Value Recapture – barrier to development 5/11/2024 Tony Higgins St. Cross site – existing uses vs. RHNA Responses to Comments a) St. Cross site (Sites 1 and 2) – existing uses The St. Cross church site consists of 15 parcels comprising approximately 2.2 acres developed with a church sanctuary and administrative offices, education building, 18 residential units, and surface parking lots. The church seeks to add housing units for the dual purpose of providing affordable housing to the community and market rate units to help offset costs for affordable units. The church has rented units to homeless veterans, refugees, and formerly to a women’s shelter, and accommodated workforce housing. St. Cross Church wrote a letter of support for Housing Element. The St. Cross church site is located in an established residential neighborhood with single- and multi-family homes. The neighborhood includes properties occupied by long-tenured residents and properties recently acquired for redevelopment. Due to its potential for ocean views, the neighborhood is highly desirable from a real estate standpoint. The trend in the neighborhood has been demolition of smaller homes for large single-family homes, often on R-2-zoned lots. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-5 Clarification of Comments The inclusion of the St. Cross church in the City’s Housing Element, with potential rezoning to accommodate the RHNA, raised substantial neighborhood concerns. The City received a multitude of comments during the adoption process, and altered the plan for the St. Cross site, lowering the RHNA densities from 33 dwelling units per acre to 25 dwelling units per acre, with a minimum of 22 dwelling units per acre. The Housing Element evaluated existing uses on proposed properties for the Sites Inventory. As indicated in the Sites Inventory, the existing uses on the St. Cross site already include affordable housing uses made available to homeless veterans, refugees, and women in need. Furthermore, the site is underdeveloped, consisting of a substantial parking lot and small structures. While there has not been an official development plan submitted, residential development to 22 dwelling units per acre is achievable on the underdeveloped areas, second-story additions to existing structures, or conversion of portions of existing structures for residential use. The feasibility of development is further supported by the owner of St. Cross, who has expressed the desire to add to the existing housing uses on the property. In summary, the City has evaluated the property and determined that existing uses will not impede the development of housing, and in fact that existing uses have already set the stage for additional similar uses. Some commenters mention that Sites 1 and 2 are not contiguous. However, the 15 parcels have functioned as one cohesive campus for many decades under common ownership. Functionally, this enables the property to take advantage of joint parking, driveway, and open space facilities, while benefiting from maintenance and operation under one owner. There also are instruments available to ensure in perpetuity that the sites function as part of one cohesive operation, to be discussed when there is an official development proposal. Additionally, Sites 1 and 2 are separated only by a 30-foot-wide segment of City street, which provides access to the parcels comprising Sites 1 and 2. There is no foreseeable change in the use of the City street. The City received an additional comment on the St. Cross site in May of 2024. The comment reiterated the same concerns that have been addressed in the analysis above. b) Land Value Recapture During the development of the Housing Element programs from 2021 through 2023, staff conducted numerous meetings with the community, City Council, and Planning Commission to discuss ways to develop and implement the Housing Element. Specifically, the City discussed strategies to advance the inclusion and construction of affordable housing. Eighty-three percent (83%) of the City’s RHNA is in the affordable income category, as follows: Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-6 6th Cycle RHNA by Income Category—Hermosa Beach Income Level Very Low Low Moderate Above Moderate Total Prior to 2023, the City had no program in place to require affordable housing. There are currently no affordable units in the City. The City adopted the Housing Element on December 21, 2021, including the Land Value Recapture Program as Program 7. This Program was introduced early in the Housing Element discussions and has been a part of the Housing Element update since inception. The Program was carried through to the revised adopted Housing Element on August 8, 2023. The Housing Element indicates that the City will perform a feasibility analysis on the Land Value Recapture Program. The premise of the Land Value Recapture Program is that properties that benefit from zoning actions to allow for residential development increase in value. In the South Bay region where Hermosa Beach is located, there is a decreasing desire to redevelop commercial properties and instead an increased desire to redevelop properties into mixed use or all residential. This desire correlates to property values. The Program levies a fee onto any residential development on properties that benefited from a zoning action that expanded their development ability. However, the property is exempt from the fee if the proposed residential development includes 15% very-low-, 15% low-, or 25% moderate-income units. Incentivized Affordable Housing. The City’s Land Value Recapture Program is intended to incentivize the construction of affordable housing as part of redevelopment. The City’s intent is not to derive revenue from the Program. Rather, the intent is a result of actual affordable housing that is available for housing. However, should the City collect funds from the program, it would be solely usable to assist in the creation of affordable housing in the future. The City could also contribute to the South Bay Regional Housing Trust Fund. Economic Feasibility. The City worked with a real estate advisory company to evaluate the economic feasibility of Land Value Recapture. The analysis included sample business proformas indicating that the City’s proposed Land Value Recapture fee did not render development infeasible (i.e., that an acceptable return on investment would be possible), and even further that in some cases, construction affordable units and taking advantage of density bonus provisions amplified the return on investment. The City’s analysis is included herein. Clarification of Comments HCD received a series of comments on Land Value Recapture. Five of six communications were sent by the owners of one downtown commercial property who have long expressed Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-7 a desire to redevelop their property. The comment letters repeatedly raised points that Land Value Recapture was a barrier to development by creating economic disincentive. These commenters insisted that their property was eligible for only one dwelling unit; however, the City’s density regulations allow up to 33 dwelling units per acre, which would allow up to three units on many lots downtown. Including one affordable unit as part of the three units would exempt a downtown property from any fee. In response to public comments about fairness to smaller lots, the City Council created a two-tier Land Value Recapture fee; one for smaller lots (identified as having four or fewer units using minimum density in the Housing Element Sites Inventory) and one for larger lots (identified as having five or more units using minimum density in the Housing Element Sites Inventory). This accounts for the eligibility of larger parcels that could take advantage of State density bonus provisions. The comments mention financial disincentives from vacancies during redevelopment. Any property owner choosing to redevelop a property would incur vacancies and “down time” during demolition, substantial remodel or addition, and general construction. These are business decisions that are part of every construction project and not related to Land Value Recapture. The comments mention that the City’s changes do not eliminate other barriers to development, such as parking constraints and development review processes. The City’s zoning changes did revise the parking regulations from a flat parking ratio per dwelling unit to tiered ratios that are more commensurate with unit size. Furthermore, the City reviewed development review processes to ensure that affordable housing projects were afforded a streamlined review, thereby incentivizing affordable housing. Lastly, a comment from a former Planning Commissioner advocated for extending Land Value Recapture to single-family homes. Single-family homes are provided additional options to develop more units, such as accessory dwelling units and units under Senate Bill 9. There is currently not an opportunity to levy an affordable housing fee on single-family homes. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-8 Table C-1 Housing Element Notification List Hermosa Beach Historical Society Hermosa Beach Education Foundation Beach Cities Health District Hermosa Beach Chamber of Commerce Senior Center Hermosa Beach City School District Legal Aid Foundation of Los Angeles Marineland Mobilehome Park PATH People Assisting the Homeless Hermosa Beach Church of Christ First Church of Christ, Scientist Hope Chapel St. Cross Episcopal Church Our Lady of Guadalupe Catholic Church Temple Shalom of the South Bay Hermosa Friends Foundation Sandpipers Hermosa Beach Kiwanis Club Hermosa Beach Rotary Club South Bay Association of Realtors South Bay Workforce Investment Board Jewish Community Center Catholic Charities of Los Angeles Los Angeles Homeless Services Authority LA County Department of Military and Veterans South Bay Center for Counseling Salvation Army Stillman Sawyer Family Services The Arc of South Bay Disability Community Resource Center Harbor Regional Center Wellness Community South Bay Cities LA county Department of Children & Family Services Social Vocational Services, Inc. 1736 Family Crisis Center Shelter Partnership Abundant Housing City Ventures Residences South Bay Cities Council of Governments Manhattan Beach Unified School District Redondo Beach Unified School District City of Redondo Beach Community Development City of Torrance Community Development City of Manhattan Beach Community Development Wishtoyo Chumash Foundation Gabrielino/Tongva Indians of CA Native American Heritage Commission Beach Cities Transit LA Metropolitan Transit Authority Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-9 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-10 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-11 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-12 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-13 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-14 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-15 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-16 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-17 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-18 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix C – Public Participation Summary Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 C-19 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Hermosa Beach 2021-2029 Housing Element Appendix D – AFFH Housing Element Technical Report D-1 Adopted December 21, 2021/ Re-adopted (with revisions) August 8, 2023 Appendix D Affirmatively Furthering Fair Housing (Please note this Appendix is an entirely new analysis) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-1 APPENDIX D: AFFIRMATIVELY FURTHERING FAIR HOUSING (AFFH) A. Introduction and Overview State law prohibits discrimination in the development process or in real property transactions, and it is the City’s policy to uphold the law in this regard. Fair housing issues are addressed in Hermosa Beach through coordination with fair housing organizations to process complaints regarding housing discrimination and to provide counseling in landlord/tenant disputes. Anti-discrimination resource materials (e.g., handouts, booklets, and pamphlets) are made available to the public at City Hall, the library, and on the City’s website through links to the Housing Rights Center. Assembly Bill (AB) 686 requires that all housing elements due on or after January 1, 2021 must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Furthering Fair Housing (AFFH) Final Rule of July 16, 2015. Under State law, affirmatively further fair housing means “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” There are three parts to this requirement: 1. Include a Program that Affirmatively Furthers Fair Housing and Promotes Housing Opportunities throughout the Community for Protected Classes (applies to housing elements beginning January 1, 2019). 2. Conduct an Assessment of Fair Housing that includes summary of fair housing issues, an analysis of available federal, state, and local data and local knowledge to identify, and an assessment of the contributing factors for the fair housing issues. 3. Prepare the Housing Element Land Inventory and Identification of Sites through the Lens of Affirmatively Furthering Fair Housing. 1. Analysis Requirements An assessment of fair housing must consider the elements and factors that cause, increase, contribute to, maintain, or perpetuate segregation, racially or ethnically concentrated areas of poverty, significant disparities in access to opportunity, and disproportionate housing needs. The analysis must address patterns at a regional and local level and trends in patterns over time. This analysis should compare the locality at a county level or even broader regional level such as a Council of Government, where appropriate, for the purposes of promoting more inclusive communities. For the purposes of this AFFH, “Regional Trends” describe trends throughout Los Angeles County. “Local Trends” describe trends specific to the City of Hermosa Beach. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-2 2. Sources of Information The City used a variety of data sources for the assessment of fair housing at the regional and local level. These include: • U.S. Census Bureau’s Decennial Census (referred to as “Census”) and American Community Survey (ACS) • U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS) data • Los Angeles County Analysis of Impediments to Fair Housing Choice in March 2018 (2018 AI) • California Department of Housing and Community Development (HCD) Affirmatively Furthering Fair Housing (AFFH) Data Viewer • Local Knowledge It is important to note that HCD released the HCD Data Viewer 2.0 during the drafting of this Assessment of Fair Housing Issues. The 2.0 version of the Data Viewer includes updated data such as the 2017-2021 ACS, 2023 Opportunity Map, and 2020 Census. Much of the regional mapping relies on the original HCD Data Viewer and may not match exactly the 2.0 Data Viewer used for some of the local narrative. However, several components of this Assessment of Fair Housing utilize datasets from various, but similar, time periods based on availability of the data (i.e., 2022 HUD CHAS data based on the 2015-2019 ACS vs. demographics data using the 2016-2020 ACS). The difference between datasets used in this analysis is negligible and does not obstruct the identification of demographic patterns and trends in the City. The tracts shown in Figure D-1 will be referred to throughout this Assessment of Fair Housing Issues. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-3 Figure D-1: Hermosa Beach Tracts and Populations (2020) Source: 2016-2020 ACS (5-Year Estimates). B. Assessment of Fair Housing Issues 1. Fair Housing Enforcement and Outreach The fair housing assessment should include a description of state and local fair housing laws and how the City complies with those laws. These laws include the following: • California Fair Employment and Housing Act (FEHA) (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2) • FEHA Regulations (California Code of Regulations (CCR), title 2, sections 12005- 12271) • Government Code section 65008 covers actions of a city, county, city and county, or other local government agency, and makes those actions null and void if the action denies an individual or group of individuals the enjoyment of residence, landownership, tenancy, or other land use in the state because of membership in a protected class, the method of financing, and/or the intended occupancy. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-4 • For example, a violation under Government Code section 65008 may occur if a jurisdiction applied more scrutiny to reviewing and approving an affordable development as compared to market-rate developments, or multifamily housing as compared to single family homes. • Government Code section 65008, subdivision (e), authorizes preferential treatment of affordable housing • Government Code §8899.50 requires all public agencies to administer programs and activities relating to housing and community development in a manner to affirmatively further fair housing and avoid any action that is materially inconsistent with its obligation to affirmatively further fair housing. • Government Code §11135 et seq. requires full and equal access to all programs and activities operated, administered, or funded with financial assistance from the state, regardless of one’s membership or perceived membership in a protected class. • Density Bonus Law (Gov. Code, §65915.) • Housing Accountability Act (Gov. Code, § 65589.5.) • No-Net-Loss Law (Gov. Code, § 65863) • Least Cost Zoning Law (Gov. Code, § 65913.1) • Excessive subdivision standards (Gov. Code, § 65913.2.) • Limits on growth controls (Gov. Code, § 65302.8.) • Housing Element Law (Gov. Code, § 65583, esp. subds. (c)(5), (c)(10).) The City of Hermosa Beach ensures compliance with these laws through the City’s daily operations, with any complaints referred to the City Attorney and/or the City Manager for investigation and action, as appropriate. Further analysis of the City’s compliance with fair housing laws is also provided in the Constraints chapter of this Housing Element. Federal fair housing laws prohibit discrimination based on: race, color, religion, national origin, sex/gender, handicap/disability, and familial status. Specific federal legislation and court rulings include: • The Civil Rights Act of 1866- covers only race and was the first legislation of its kind • The Federal Fair Housing Act 1968- covers refusal to rent, sell, or finance • The Fair Housing Amendment Act of 1988- added the protected classes of handicap and familial status • The Americans with Disabilities Act (ADA)- covers public accommodations in both businesses and in multi-family housing developments • Shelly v. Kramer 1948- made it unconstitutional to use deed restrictions to exclude individuals from housing Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-5 • Jones v. Mayer 1968- made restrictive covenants illegal and unenforceable California state fair housing laws protect the same classes as the federal laws with the addition of marital status, ancestry, source of income, sexual orientation, and arbitrary discrimination. Specific State legislation and regulations include: • Unruh Civil Rights Act- extends to businesses and covers age and arbitrary discrimination • California Fair Employment and Housing Act (Rumford Act)- covers the area of employment and housing, with the exception of single-family houses with no more than one roomer/boarder • California Civil Code Section 53- takes measures against restrictive covenants • Department of Real Estate Commissioner’s Regulations 2780-2782- defines disciplinary actions for discrimination, prohibits panic selling and affirms the broker’s duty to supervise • Business and Professions Code- covers people who hold licenses, including real estate agents, brokers, and loan officers. The City has committed to complying with applicable federal and State fair housing laws to ensure that housing is available to all persons without regard to race, color, religion, national origin, disability, familial status, or sex as outlined in the 2018 AI. Further, the Los Angeles County Development Authority (LACDA) prohibits discrimination in any aspect of housing on the basis of race, color, religion, national origin, disability, familial status, or sex. As presented in this Housing Element, the City has committed to meaningful actions to promote the development of housing for special needs populations, including lower income housing. Further, this Housing Element includes actions to affirmatively further fair housing through strategies related to housing mobility, new housing opportunities in high resource areas, fair housing enforcement and outreach, place-based strategies for neighborhood improvement, and tenant protection. The City continues to participate in the CDBG Urban County program contracting with the Housing Rights Center to ensure housing discrimination complaints are properly addressed and fair housing resources and services are offered to residents. The following shows applicable fair housing laws and the City’s compliance: • Fair Housing Act; Title VI of the Civil Rights Act of 1964 – the City complies by ensuring its actions related to housing are not discriminatory through City protocols, decision-making procedures, and adhering to non-discrimination requirements of federal funding programs. • Rehabilitation Act of 1973 – see Fair Housing Act; also, the City complies through its accessibility protocols, administered and enforced by the City’s ADA/504 Coordinator and Building Official. • American Disabilities Act – the City complies with the ADA through building permit review and issuance. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-6 • California Fair Employment and Housing Act (FEHA) and FEHA Regulations – the City complies with FEHA and its regulations through established City protocols decision making, legal counsel and advisement. • Government Code Section 65008 – the City Zoning Code is written to ensure that the City’s actions regarding the development of housing for persons and families of very low, low, moderate, and middle incomes, or emergency shelters for the unhoused, are not discriminatory. Programs are included in this Housing Element to facilitate housing for all households, including protected classes (e.g., programs regarding residential care facilities, emergency shelters, and reasonable accommodations). • Government Code Section 8899.50 – This section, Appendix D, of this Housing Element documents compliance with Affirmatively Furthering Fair Housing requirements. • Government Code Section 11135 et. seq. – the City complies with anti- discrimination requirements through the City’s Human Resources programs and the City’s procurement protocols. • Density Bonus Law (Government Code Section 65915) – the City implements density bonus provisions in compliance with the Density Bonus Law. • Housing Accountability Act (Government Code Section 65589.5) – the City has documented compliance with the HAA. • No-Net-Loss Law (Government Code Section 65863) – the City has documented compliance with sufficient capacity for RHNA and will ensure compliance with no-net-loss via required annual reporting to HCD. • Least Cost Zoning Law (Government Code Section 65913.1) – the City includes programs in this Housing Element to ensure that sufficient land is zoned with appropriate standards to accommodate its RHNA. • Excessive subdivision standards (Government Code Section 65913.2) – the City’s subdivision standards are typical or not excessive in compliance with the Government Code. • Limits on growth control (Government Code Section 65302.8) – the City complies as it has no growth control measures. • Housing Element Law (Government Code Section 65583) – this Housing Element documents compliance with Housing Element Law. The City has complied with all fair housing laws and has not been involved in any fair housing or civil rights legal actions, nor has the City been subject of findings, lawsuits, enforcement actions, settlements, or judgements related to fair housing or civil rights. Regional Trend According to HUD’s Office of Fair Housing and Equal Opportunity (FHEO) records, 130 housing discrimination cases were filed in Los Angeles County in 2020, compared to 291 in Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-7 2010. In 2020, a majority of cases were related to disability (66%). Another 21% of cases were related to racial bias. The percent of cases related to disability has increased significantly since 2010, when only 36% of cases reported a disability bias. Public housing buildings, FHEO inquires by City and housing choice voucher (HCV) recipients by tract are shown in Figure D-2. HCVs are most concentrated in the area northeast of Hermosa Beach, near Inglewood, the City of Los Angeles, and in the adjacent unincorporated County areas. Public housing buildings are concentrated in the same area. However, there are many public housing buildings scattered throughout the County. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-8 Figure D-2: Regional Public Housing Buildings, FHEO Inquiries, and HCVs by Tract Source: HCD AFFH Data Viewer (HUD, 2013-2021), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-9 During the 2018 AI development process, LACDA implemented a series of outreach efforts including regional discussion groups, three sets of four focus groups each, aimed to address disability and access, education, employment and transportation, and healthy neighborhoods, and a Resident Advisory Board Meetings; community input meetings; and the 2017 Resident Fair Housing Survey. Regional discussions included developer groups, companies, organizations, and agencies, and government groups, including the City of Hermosa Beach. The following topics were covered in the Government Discussion Group meeting: • Lack of jurisdictions that have R/ECAP areas • Discussion on community meetings • Discussion of surveys • City of Los Angeles R/ECAP areas • Social engineering in the past due to highway, designing of public housing in poor areas by private, federal, and local governments • Setting realistic goals and outcomes • HRC- protect class different in state verses federal law • Mortgages based on disparate impact-census areas • Disparate impacts on women Focus group meetings for preparation of the 2018 AI focused on the following contributing factors: • Education – Attendees discussed the location of proficient schools, inadequate funding for schools both public and charter, lack of information on the transfer process for parents, and child safety when walking to school. Attendees expressed concern about school of choice and funding for under-performing schools, promotion of educational opportunities to parents, ane safety. • Transportation and Jobs – Attendees discussed lack of available clothing for employment, lack of resources and services for working families, stigma of transgender employees, and the prevalence of low skill workers. They expressed concern about the lack reliable transportation, jobs located far from workers, and childcare expenses. • Healthy Neighborhoods – This focus group discussed location and access to grocery stores, illegal dumping, poor access to quality healthcare, and general public safety concerns such as safe streets and homeless encampments. There were concerns related to industrial facilities in communities highly burdened by air pollution, proximity to air pollution, bike and pedestrian improvements, and greenhouse gas emission reduction strategies. • Disability and Access – The disability and access focus group discussed availability of accessible housing options, lack of knowledge of the ADA’s Right Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-10 to Reasonable Accommodation, overlapping needs of people with multiple disabilities, and a long waitlist for accessible and affordable housing. A total of 6,290 responses were recorded from the 2017 Resident Fair Housing Survey. The survey found that most residents thought their neighborhood had adequate access to public transportation, cleanliness, and schools, and that the condition of public spaces and buildings were good, very good, or excellent. More residents reported availability of quality public housing and job opportunities were only fair or poor. The survey also found that households with a person with a disability found it more difficult to get around their neighborhood or apartment complex. Access to opportunities, housing conditions, and populations of persons with disabilities in Hermosa Beach are further discussed below in this Assessment of Fair Housing Issues. Local Trend The City of Hermosa Beach is a participating jurisdiction in the Los Angeles County CDBG Urban County program. Fair housing services for the City are provided through the Los Angeles County Development Authority’s master agreement with the Housing Rights Center (HRC). HRC investigates and resolves discrimination complaints, conduct, discrimination auditing and testing, and education and outreach, including the dissemination of fair housing information such as written material, workshops, and seminars. They also provide landlord/tenant counseling, which is another fair housing service that involves informing landlords and tenants of their rights and responsibilities under fair housing law and other consumer protection regulations, as well as mediating disputes between tenants and landlords. The Housing Rights Center has a main office location in downtown Los Angeles. As a participating jurisdiction in the Urban County program, Hermosa Beach does not have direct access to HRC staff or service records. HRC’s contract with the Los Angeles County Development Authority (LACDA) also does not include reporting fair housing records by participating jurisdiction. According to the HCD AFFH Data Viewer, based on 2013-2021 HUD records, the Office of Fair Housing and Equal Opportunity (FHEO) received six inquiries from Hermosa Beach residents during this period. Of the six inquiries, one was related to disability, one to race, one to familial status, one to sex, and two were not related to a specific protected class. Total FHEO inquiries in Hermosa Beach represent 0.3 inquiries per 1,000 people. The rate of inquiries per 1,000 persons in the City is comparable to the adjacent jurisdictions of Redondo Beach, Torrance, and Gardena, but higher than Lawndale, Manhattan Beach, and El Segundo. In 2023, HCD released the AFFH Data Viewer 2.0 which includes fair housing cases submitted to FHEO from January 2013 to November 2022 by City. During this period, four cases were submitted by Hermosa Beach residents. Of the four cases, one was filed on the basis of race, one on the basis of retaliation, and one on the basis of sex. There are no tracts in Hermosa Beach with a substantial population of renters receiving housing choice vouchers (HCVs). To protect the confidentiality of renters receiving HCVs, tracts containing 10 or fewer voucher holders have been omitted from this dataset. Redondo Beach, Torrance, and Lawndale, south and east of the City, contain tracts with larger populations of HCV recipients. There are no public housing buildings or subsidized housing units in Hermosa Beach. FEHO Inquiries and the concentration of HCV recipients by tract are shown in Figure D-3. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-11 As discussed in Appendix C, the City held a series of public meetings during the Housing Element update in an effort to include all segments of the community. Each meeting was publicized on the City’s website and meeting notices were also sent to persons and organizations with expertise in affordable housing and supportive services. Interested parties had the opportunity to interact with City staff throughout the Housing Element update process and provide direct feedback regarding fair housing issues. The City also created a dedicated web page for the Housing Element update (https://www.hermosabeach.gov/our-government/city-departments/community- development/plans-programs/housing-element-update) and provided opportunities for interested persons to participate in public meetings remotely, which made it possible for those with disabilities limiting their travel to participate and comment on the Housing Element regardless of their ability to attend the meetings. Public comments related to fair housing focused on the high cost of housing in coastal communities. In the City’s online housing survey (see Appendix C) none of the 25 respondents stated fair housing was an issue in Hermosa Beach. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-12 Figure D-3: FHEO Inquiries and HCVs by Tract Source: HCD AFFH Data Viewer (HUD, 2013-2021), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-13 2. Integration and Segregation a. Race and Ethnicity Ethnic and racial composition of a region is useful in analyzing housing demand and any related fair housing concerns, as it tends to demonstrate a relationship with other characteristics such as household size, locational preferences and mobility. For example, prior studies have identified socioeconomic status, generational care needs, and cultural preferences as factors associated with “doubling up”- households with extended family members and non-kin.1 These factors have also been associated with ethnicity and race. Other studies have also found minorities tend to congregate in metropolitan areas though their mobility trend predictions are complicated by economic status (minorities moving to the suburbs when they achieve middle class) or immigration status (recent immigrants tends to stay in metro areas/ports of entry).2 To measure segregation in a given jurisdiction, the US Department of Housing and Urban Development (HUD) provides racial or ethnic dissimilarity trends. Dissimilarity indices are used to measure the evenness with which two groups (frequently defined on racial or ethnic characteristics) are distributed across the geographic units, such as block groups within a community. The index ranges from 0 to 100, with 0 denoting no segregation and 100 indicating complete segregation between the two groups. The index score can be understood as the percentage of one of the two groups that would need to move to produce an even distribution of racial/ethnic groups within the specified area. For example, if an index score above 60, 60% of people in the specified area would need to move to eliminate segregation. The following shows how HUD views various levels of the index: • <40: Low Segregation • 40-54: Moderate Segregation • >55: High Segregation Regional Trend As presented in Table D-1, Los Angeles County is characterized by a large Hispanic/Latino population, representing 48.3% of the total population. The White population is the second largest population countywide (25.9%), followed by the Asian population (14.6%), and Black/African American population (7.8%). Of the selected jurisdictions in the proximity of Hermosa Beach, Hermosa Beach has the largest White population of 75%. In general, the coastal cities, Hermosa Beach, El Segundo, Manhattan Beach, and Redondo Beach, have larger White populations compared to inland neighboring cities. The Hispanic/Latino population represents the largest proportion of the population in Gardena and Lawndale. Comparatively, only 11.2% of the population in Hermosa Beach is Hispanic or Latino. 1 Harvey, H., Duniforn, R., & Pilkauskas, N. (2021). Under Whose Roof? Understanding the living arrangements of children in doubled-up households. Duke University Press, 58 (3): 821–846. https://doi.org/10.1215/00703370-9101102 2 Sandefur, G.D., Martin, M., Eggerling-Boeck, J., Mannon, S.E., &. Meier, A.M. (2001). An overview of racial and ethnic demographic trends. In N. J. Smelser, W.J. Wilson, & F. Mitchell (Eds.) America becoming: Racial trends and their consequences. (Vol I, pp. 40-102). National Academy Press Washington, D.C. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-14 Table D-1: Racial/Ethnic Composition of Neighboring Cities and County (2020) Race/Ethnicity El Segundo Gardena Lawndale Torrance White 25.9% 75.0% 61.3% 9.0% 14.3% 71.3% 59.2% 34.7% Black/African American 7.8% 0.7% 4.8% 20.8% 8.1% 0.4% 3.6% 2.7% American Indian/ Alaska Native 0.2% 0.5% 0.0% 0.1% 0.2% 0.2% 0.2% 0.3% 0.2% 0.0% 0.0% 0.5% 0.9% 0.1% 0.1% 0.3% Total Population 10,040,682 19,147 16,575 59,401 32,533 35,064 66,663 144,430 As explained above, dissimilarity indices measure segregation, with higher indices signifying higher segregation. In Los Angeles County, all minority (non-White) residents combined are considered highly segregated from White residents, with an index score of 58.53 in 2020 (Table D-2). Since 1990, segregation between non-White (all non-white residents combined) and White residents has increased slightly, indicating Los Angeles County has become increasingly segregated. Dissimilarity indices between Black and White residents has decreased, while indices increased between Hispanic, Asian/Pacific Islander, and White residents during the same period. Based on HUD’s definition of the index, Black and White residents are highly segregated, Hispanic and White residents are highly segregated, and Asian/Pacific Islander and White residents are moderately segregated. Table D-2: Racial/Ethnic Dissimilarity Trends – Los Angeles County (1990-2020) 1990 Trend 2000 Trend 2010 Trend Current Non-White/White 56.66 56.72 56.55 58.53 Black/White 73.04 67.40 64.99 68.24 Hispanic/White 60.88 63.03 63.35 64.33 Asian or Pacific Islander/White 46.13 48.19 47.62 51.59 Source: U.S. Department of Housing and Urban Development (HUD) Affirmatively Furthering Fair Housing (AFFH) Database, 2020. Figure D-4 and Figure D-5 compare racial/ethnic minority populations by block group in the region in 2010 and 2018. Non-White populations in nearly all areas of this section of Los Angeles County have increased since 2010. Racial/ethnic minority populations throughout the central areas of the County have intensified, while block groups in the coastal areas also saw an increase in non-White populations. Figure D-5 shows that most areas in Los Angeles County have high concentrations of racial/ethnic minorities. Coastal cities, including Santa Monica, Manhattan Beach, Hermosa Beach, Redondo Beach, and Palos Verdes Estates generally have smaller non- White populations. Most block groups in the South Bay, San Gabriel Valley, San Fernando Valley and central Los Angeles areas have majority racial/ethnic minority populations. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-15 Block groups in Hermosa Beach have racial/ethnic minority populations comparable to coastal areas to the north and south, but significantly smaller populations than block groups in jurisdictions to the east. Figure D-6 shows the racial/ethnic majority population by tract in the region surrounding Hermosa Beach. In general, the coastal areas, from Santa Monica to Long Beach, contain tracts that have White majority populations. Tracts to the east, in and around the cities of South Gate, Downey, and parts of Los Angeles have Hispanic majority populations. There are smaller pockets of Black majority populations in and surrounding Inglewood, Carson, and the City of Los Angeles. Asian majority populations occur in a few tracts in jurisdictions east of Hermosa Beach, such as Torrance, Gardena, and West Carson. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-16 Figure D-4: Regional Racial/Ethnic Minority Populations by Block Group (2010) Source: HCD AFFH Data Viewer (ESRI 2010), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-17 Figure D-5: Regional Racial/Ethnic Minority Populations by Block Group (2018) Source: HCD AFFH Data Viewer (ESRI 2018), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-18 Figure D-6: Regional Racial/Ethnic Majority Populations by Tract (2018) Source: HCD AFFH Data Viewer (ESRI 2018), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-19 Local Trend As mentioned above, Hermosa Beach is characterized by a White majority population. As presented in Table D-3, 75% of the Hermosa Beach population is White. The Hispanic/Latino population is the second largest population in the City, representing 11.2% of the population. Another 6.2% is two or more races and 6.1% is Asian. Since the 2006-2010 ACS, the White population has decreased citywide. During this period, the American Indian/Alaska Native population, population of some other race, population of two or more races, and Hispanic/Latino population increased. Table D-3: Racial/Ethnic Composition (2010-2020) Race/Ethnicity White 15,556 80.4% 14,358 75.0% Black/African American 131 0.7% 137 0.7% American Indian/Alaska Native 36 0.2% 89 0.5% Asian 1,274 6.6% 1,167 6.1% Native Hawaiian/Pacific Islander 19 0.1% 0 0.0% Some other race 5 0.0% 65 0.3% Two or more races 672 3.5% 1,179 6.2% Hispanic/Latino 1,662 8.6% 2,152 11.2% Source: 2006-2010 and 2016-2020 ACS (5-Year Estimates). Because Hermosa Beach is part of the Urban County program, dissimilarity HUD dissimilarity indices are not available for the City alone. HUD provides dissimilarity data for recipients of CDBG funds. The City of Hermosa Beach, as part of the Urban County program, may receive CDBG funds indirectly from LACDA. As shown in Figure D-6 above, all tracts in Hermosa Beach have White majority populations. Figure D-7 and Figure D-8 compare racial/ethnic minority populations in the City between 2010 and 2019. In 2010, all block groups in the City had non-White populations of 20% or smaller. As of 2019, most tracts in Hermosa Beach had non-White populations ranging from 21% to 40%. This is consistent with the citywide trend, where 80.4% of the population was White in 2010 compared to only 75% in 2020. Tract 6210.05 in the northwestern section of the City has a smaller non-White population of 18% compared to all other tracts in Hermosa Beach. However, the other tracts, tracts 6210.01, 6211.02, and 6211.04, also have small non-White populations ranging from 20% to 28%. Racial/ethnic minority populations are comparable citywide. Sites Inventory Sites selected to meet the RHNA are also included in Figure D-8. The distribution of RHNA units by tract-level racial/ethnic minority population is presented in Table D-4. Consistent with the citywide trend, 86% of RHNA units are in tracts where 20% to 40% of the population belongs to a racial or ethnic minority group. As discussed above, three of the four tracts comprising Hermosa Beach have non-White populations in this range. The remaining 14.2% of RHNA units, including 46 lower income units, 20 moderate income units, and 19 above moderate income units are in the northwestern tract where less than 20% of the population Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-20 is non-White. The City’s RHNA strategy does not concentrate units of any income level in a single area of Hermosa Beach. It is also relevant to note that tract-level racial/ethnic minority populations are generally comparable citywide, ranging from 18% to 28%. Table D-4: Distribution of RHNA Units by Racial/Ethnic Minority Population (2019) Racial/Ethnic Minority Population (Tract) Lower Income Units Total Units <20% 46 13.2% 20 11.2% 19 26.4% 85 14.2% 20-40% 303 86.8% 158 88.8% 53 73.6% 514 85.8% 40-60% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 60-80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% >80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-21 Figure D-7: Racial/Ethnic Minority Populations by Block Group (2010) Source: HCD AFFH Data Viewer (ESRI 2010), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-22 Figure D-8: Racial/Ethnic Minority Populations by Tract and Sites Inventory (2019) Source: 2015-2019 ACS (5-Year Estimates). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-23 b. Persons with Disabilities Persons with disabilities have special housing needs because of the lack of accessible and affordable housing, and the higher health costs associated with their disability. In addition, many may be on fixed incomes that further limits their housing options. Persons with disabilities also tend to be more susceptible to housing discrimination due to their disability status and required accommodations associated with their disability. Regional Trend Nearly 11% of the Los Angeles County population experiences one or more disability. As presented in Table D-5, the Black/African American population has the highest disability rate countywide (14.9%), followed by the American Indian/Alaska Native population (13.4%), the non-Hispanic White population (12.7%), and the Native Hawaiian/Pacific Islander population (12.6%). All other racial/ethnic groups have disability rates equal to or less than the countywide average of 10.9%. Aging populations tend to have higher rates of disabilities. Over 50% of the population 75 years and older experiences a disability, compared to 23.3% of the population aged 65 to 74, and 9% of the population aged 35 to 64. Ambulatory difficulties and independent living difficulties are the most common disability types in the County. Approximately 5.8% and 5.6% of the population, respectively, experiences these disabilities. The population of persons experiencing disabilities at the tract-level is shown in Figure D-9 for the region. Less than 20% of the population in most tracts in Los Angeles County are persons with disabilities. Tracts with disabled populations exceeding 20 percent are not concentrated in one area of the County. Tracts with larger shares of persons with disabilities closest to Hermosa Beach are in Inglewood, Long Beach, and the City of Los Angeles. The concentration of persons with disabilities in Hermosa Beach is generally comparable to neighboring jurisdictions. The coastal cities of Manhattan Beach, Hermosa Beach, and Redondo Beach tend to have smaller disabled populations compared to Gardena, Compton, and Inglewood. Table D-5: Disability Status by Race, Age, and Type – Los Angeles County (2020) Total Population Percent with Disability Total civilian noninstitutionalized population 9,970,085 10.9% Race/Ethnicity White alone 4,760,801 10.9% Black or African American alone 795,512 14.9% American Indian and Alaska Native alone 77,046 13.4% Asian alone 1,482,690 8.7% Native Hawaiian and Other Pacific Islander alone 24,777 12.6% Some other race alone 2,103,933 7.7% Two or more races 725,326 8.7% White alone, not Hispanic or Latino 2,580,560 12.7% Hispanic or Latino (of any race) 4,826,633 8.3% Age Under 5 years 593,017 0.6% 5 to 17 years 1,581,972 4.0% Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-24 Total Population Percent with Disability 18 to 34 years 2,563,958 4.6% 35 to 64 years 3,888,561 9.0% 65 to 74 years 772,731 23.3% 75 years and over 569,846 51.1% Type With a hearing difficulty N/A 2.5% With a vision difficulty N/A 2.0% With a cognitive difficulty N/A 4.2% With an ambulatory difficulty N/A 5.8% With a self-care difficulty N/A 3.0% With an independent living difficulty N/A 5.6% Source: 2016-202 ACS (5-Year Estimates). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-25 Figure D-9: Regional Population of Persons with Disabilities by Tract (2019) Source: HCD AFFH Data Viewer (2015-2019 ACS), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-26 Local Trend Hermosa Beach has a significantly smaller population of persons with disabilities compared to the County. Only 5.5% of the City population experience one or more disability compared to 10.9% countywide. This may be in part, due to the population of persons aged 75 and older. According to the 2016-2020 ACS, 5.9% of the population countywide is 75 or older compared to only 4.5% of the population in Hermosa Beach. Since the 2008- 2012 ACS, the population of persons with disabilities in Hermosa Beach has increased slightly from 5%. While there is only a small population of American/Indian Alaska Native residents in the City (90 persons), a large proportion (41.1%) experience a disability. The Black/African American (6.8%), Hispanic/Latino (5.8%), and non-Hispanic White (5.8%) populations also have disabilities rates exceeding the citywide average. Approximately 40% of persons aged 75 and older and 13.1% of persons aged 65 to 74 experience a disability, both smaller proportions compared to the respective populations countywide. Hearing difficulties, ambulatory difficulties, and independent living difficulties are all equally common in Hermosa Beach, where 2.1% of the population experiences each, respectively. As shown in Sites Inventory There are no tracts in the City where more than 10% of the population experiences a disability. There are no RHNA sites in areas where populations of persons with disabilities are heightened. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-27 Figure D-10, all tracts in Hermosa Beach have populations of persons with disabilities under 10%. Table D-6: Disability Status by Race, Age, and Type – Hermosa Beach (2020) Total Population Percent with Disability Total civilian noninstitutionalized population 18,974 5.5% Race/Ethnicity White alone 15,431 6.2% Black or African American alone 118 6.8% American Indian and Alaska Native alone 90 41.1% Asian alone 1,144 0.0% Native Hawaiian and Other Pacific Islander alone 0 - Some other race alone 402 2.5% Two or more races 1,789 1.6% White alone, not Hispanic or Latino 14,248 5.8% Hispanic or Latino (of any race) 2,131 6.6% Age Under 5 years 995 6.2% 5 to 17 years 2,421 1.2% 18 to 34 years 4,676 2.7% 35 to 64 years 8,284 3.1% 65 to 74 years 1,745 13.1% 75 years and over 853 40.1% Type With a hearing difficulty N/A 2.1% With a vision difficulty N/A 1.5% With a cognitive difficulty N/A 1.8% With an ambulatory difficulty N/A 2.1% With a self-care difficulty N/A 0.9% With an independent living difficulty N/A 2.1% Source: 2016-202 ACS (5-Year Estimates). Sites Inventory There are no tracts in the City where more than 10% of the population experiences a disability. There are no RHNA sites in areas where populations of persons with disabilities are heightened. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-28 Figure D-10: Population of Persons with Disabilities by Tract and Sites Inventory (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-29 c. Familial Status Under the Fair Housing Act, housing providers may not discriminate because of familial status. Familial status covers: the presence of children under the age of 18, pregnant persons, any person in the process of securing legal custody of a minor child (including adoptive or foster parents). Examples of familial status discrimination include refusing to rent to families with children, evicting families once a child joins the family through, e.g., birth, adoption, custody, or requiring families with children to live on specific floors or in specific buildings or areas. Single parent households are also protected by fair housing law. Regional Trend According to the 2016-2020 ACS, 27.6% of households have children of the householder under age 18. Of the 27.6% of households with children, 18.8% are married couple households, 2.6% are male-headed households, and 6.2% are female-headed households. Figure D-11 shows households with children in Los Angeles County, Hermosa Beach, and jurisdictions adjacent to Hermosa Beach. Of the selected jurisdictions, Manhattan Beach has the largest proportion of households with children (34.3%), followed by Lawndale (31.9%), and Torrance (29.3%). Hermosa Beach has the smallest proportion of households with children compared to the County and neighboring cities. Lawndale has the largest proportion of single-parent male-headed households. All the selected cities have proportions of single-parent female-headed households below the countywide average of 6.2%. Figure D-12 shows the population of children living in single-parent female-headed households by tract in the region. Children in female-headed households are most concentrated in the area northeast of Hermosa Beach, including Inglewood, the City of Los Angeles, and unincorporated Los Angeles County communities, and the areas around Long Beach and Lakewood. In general, there are more children living in female-headed households in the central Los Angeles County areas compared to the South Bay, Westside, Gateway, San Fernando Valley, and San Gabriel Valley cities. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-30 Figure D-11: Households with Children in Neighboring Cities and County (2020) Source: 2016-2020 ACS (5-Year Estimates). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-31 Figure D-12: Regional Children in Female-Headed Households by Tract (2019) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-32 Source: HCD AFFH Data Viewer (2015-2019 ACS), 2022. Local Trend According to the 2006-2010 and 2016-2020 ACS, the proportion of households with children has increased (Table D-7). Households with children represent 16.4% of households citywide in 2010, but 18.6% in 2020. The proportion of married couples with children and single-parent female-headed households also increased during this period. Female- headed households with children require special consideration and assistance because of their greater need for affordable housing and accessible day care, health care, and other supportive services. However, only 2.2% of households in Hermosa Beach are single- parent female-headed households compared to 6.2% countywide. There are no tracts in Hermosa Beach where more than 20% of children reside in female-headed households (Figure D-13). Tract 6211.02 in the southeast section of the City has a smaller population of children in married couple households compared to other tracts. According to the HCD Data Viewer 2.0, based on the 2017-2021 ACS, 64.7% of children reside in married couple households in tract 6211.02 compared to 80.4% to 94.6% of children in the remaining tracts. Hermosa Beach is characterized by a large population of persons living alone. Approximately 35% of households are persons living alone in the City compared to only 25.8% countywide. However, 8.9% of households in both the County and City are elderly persons aged 65 and older living alone. Figure D-15 shows that the northern tracts, tracts 6210.01 and 6210.05, have larger populations of adults living alone compared to the southern tracts. According to 2017-2021 ACS estimates, tracts 6210.01 and 6210.05 also have larger populations of elderly adults, 15% and 21.2%, respectively, compared to tracts 6211.02 and 6211.04 in southern Hermosa Beach (14.1% and 8.5%, respectively) (Figure D- 16). Table D-7: Households with Children (2010-2020) Household Type Households with Children 1,542 16.4% 1,595 18.6% Married Couple with Children 1,314 14.0% 1,310 15.2% Male Householder with Children 113 1.2% 99 1.2% Female Householder with Children 115 1.2% 186 2.2% Source: 2006-2010 and 2016-2020 ACS (5-Year Estimates). Sites Inventory There are no tracts with populations of children residing in single-parent female-headed households exceeding 20%. The distribution of RHNA units by population of children in married couple households is shown in Figure D-13 and Table D-8. Most RHNA units (78%) are in tracts where more than 80% of children live in married couple households, including 88.5% of lower income units. The City’s RHNA strategy does not concentrate lower or moderate income units in areas where fewer children reside in married couple households. RHNA sites are distributed throughout tracts with variable populations of children in married Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-33 couple households to the greatest extent possible given the overall character of Hermosa Beach. Table D-8: Distribution of RHNA Units by Children in Married Couple Households (2021) Children in Married Couple HHs (Tract) Lower Income Units Total Units <20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 20-40% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 40-60% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 60-80% 40 11.5% 65 36.5% 28 38.9% 133 22.2% >80% 309 88.5% 113 63.5% 44 61.1% 466 77.8% Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-34 Figure D-13: Children in Female-Headed Households by Tract and Sites Inventory (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-35 Figure D-14: Children in Married Couple Households by Tract and Sites Inventory (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-36 Figure D-15: Population Living Alone by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-37 Figure D-16: Population Aged 65 and Older by Tract (2021) Source: 2017-2021 ACs (5-Year Estimates). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-38 d. Income Identifying low or moderate income (LMI) geographies and individuals is important to overcome patterns of segregation. HUD defines a LMI area as a Census tract or block group where over 51% of the population is LMI (based on HUD income definition of up to 80% of the Area Median Income). Regional Trend According to Comprehensive Housing Affordability Strategy (CHAS)3 data based on the 2015-2019 ACS, 55.6% of Los Angeles County households are low income, earning 80% or less than the area median income (AMI) (Table D-9). A significantly larger proportion of renter households in Los Angeles County are considered lower income. Over 69% of renter households are lower income compared to only 39.3% of owner households. Figure D-17 shows populations of low or moderate income (LMI) households in the region by block group. The central and south Los Angeles County areas tend to have larger LMI household populations. Coastal areas, including Hermosa Beach, tend to have smaller populations of low or moderate income households. Table D-9: Households by Income and Tenure – Los Angeles County (2022) Income Category Owner-Occupied Renter-Occupied Total 0%-30% of AMI 10.8% 30.6% 21.5% 31%-50% of AMI 11.1% 18.9% 15.3% 51%-80% of AMI 17.4% 19.9% 18.7% 81%-100% of AMI 11.0% 8.9% 9.9% Greater than 100% of AMI 49.7% 21.7% 34.5% Total 1,519,515 1,797,280 3,316,795 Source: HUD CHAS data (based on 2015-2019 ACS), 2022. 3 Each year, the U.S. Department of Housing and Urban Development (HUD) receives custom tabulations of American Community Survey (ACS) data from the U.S. Census Bureau. These data, known as the "CHAS" data (Comprehensive Housing Affordability Strategy), demonstrate the extent of housing problems and housing needs, particularly for low income households. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-39 Figure D-17: Regional LMI Household Population by Block Group (2020) Source: HCD AFFH Data Viewer (HUD 2020), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-40 Local Trend A significantly larger proportion of Hermosa Beach households earn 100% or more of the AMI compared to the County as a whole. According to 2022 HUD CHAS data, 71.9% of Hermosa Beach households earn 100% or more of the AMI compared to only 34.5% countywide. The income disparity between owners and renters is also less prominent in Hermosa Beach than the County. Only 22.7% of owners and 21.9% of renters earn less than 80% of the AMI. According to 2016-2020 ACS estimates, the median household income in Hermosa Beach is $142,500. Coastal cities like Hermosa Beach tend to have significantly higher median household incomes compared to adjacent cities to the east. The median household income in Hermosa Beach is higher than the median in Los Angeles County ($71,358), El Segundo ($115,846), Gardena ($64,015), Lawndale ($65,923), Redondo Beach ($116,832), and Torrance ($94,781), and only slightly lower than the median in Manhattan Beach ($153,926). Table D-10: Households by Income and Tenure – Hermosa Beach (2022) Income Category Owner-Occupied Renter-Occupied Total 0%-30% of AMI 6.2% 6.7% 6.5% 31%-50% of AMI 7.4% 4.0% 5.6% 51%-80% of AMI 9.1% 11.1% 10.2% 81%-100% of AMI 4.2% 7.4% 5.9% Greater than 100% of AMI 73.0% 70.8% 71.9% Total 4,245 4,710 8,955 Source: HUD CHAS data (based on 2015-2019 ACS), 2022. LMI household populations at the block group-level are shown for Hermosa Beach in Figure D-18. There are no block groups in the City that are considered LMI areas where more than 50% of households are low or moderate income. Most block groups have very small LMI household populations representing less than 25% of the block group population. There are five block groups located along Hermosa Avenue with LMI household populations ranging from 26% to 37%. Populations of LMI households in Hermosa Beach tracts are generally consistent with adjacent coastal cities such as Manhattan Beach and Redondo Beach. As mentioned above, jurisdictions east of the City, including Lawndale, Gardena, and Torrance, have more LMI households. Sites Inventory There are no LMI areas where more than 50% of households earn low or moderate incomes in Hermosa Beach. As shown in Table D-11 and Figure D-18. Consistent with the citywide trend, most RHNA units are in block groups where less than 25% of households are low or moderate income. There are 44 lower income units, 20 moderate income units, and 19 above moderate income units in a block group where 35% of households are LMI. The City’s RHNA strategy distributes sites throughout block groups with variable LMI household populations to the extent possible given the composition of Hermosa Beach. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-41 Table D-11: Distribution of RHNA Units by LMI Household Population LMI Households (Block Group) Lower Income Units Total Units <25% 305 87.4% 158 88.8% 53 73.6% 516 86.1% 25-50% 44 12.6% 20 11.2% 19 26.4% 83 13.9% 50-75% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 75-100% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-42 Figure D-18: LMI Household Population by Block Group and Sites Inventory (2020) Source: HCD AFFH Data Viewer 2.0 (HUD 2020), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-43 3. Racially/Ethnically Concentrated Areas a. Racially/Ethnically Concentrated Areas of Poverty (R/ECAPs) In an effort to identify racially/ethnically concentrated areas of poverty (R/ECAPs), HUD has identified census tracts with a majority non-White population (greater than 50%) and a poverty rate that exceeds 40% or is three times the average tract poverty rate for the metro/micro area, whichever threshold is lower. Regional Trend Figure D-19 shows tracts that have been identified as R/ECAPs or TCAC areas of high segregation and poverty. TCAC opportunity areas and scores are expanded upon in Section 4, Access to Opportunities. In the region, R/ECAPs and areas of high segregation and poverty are most prevalent in the City of Los Angeles, south Los Angeles, and in and around Long Beach. There are no R/ECAPs or areas of high segregation and poverty in the coastal areas stretching from Malibu to Rancho Palos Verdes. As mentioned previously, jurisdictions along the coast tend to have smaller populations of racial/ethnic minorities and LMI households compared to the inland County areas. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-44 Figure D-19: Regional R/ECAPs and TCAC Areas of High Segregation and Poverty Source: HCD AFFH Data Viewer (HUD 2009-2013; TCAC 2022), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-45 Local Trend There are no R/ECAPs or TCAC-designated areas of high segregation and poverty in Hermosa Beach. The closest R/ECAPs are in the City of Los Angeles and Hawthorne east of the City, and the closest TCAC areas of high segregation and poverty are in the unincorporated County and Inglewood northeast of the City. As presented in Table D-12, Hermosa Beach has a significantly smaller population below the poverty level compared to the County (4.2% vs. 14.2%, respectively). In Hermosa Beach, the American Indian/Alaska Native population (12.2%) and Asian population (10%) have the highest poverty rates. All other racial/ethnic groups in the City have poverty rates below the citywide average of 4.3%. In Los Angeles County, poverty rates are the highest in the Black/African American population (20.2%), population of some other race (17.8%), Hispanic/Latino population (16.9%), and American Indian/Alaska Native population (16.3%). Sites Inventory There are no RHNA sites in R/ECAPs or areas of high segregation and poverty. Figure D-20 shows poverty status by tract in Hermosa Beach the surrounding area. Manhattan Beach, Hermosa Beach, and Redondo Beach all contain tracts with small populations of persons below the poverty level. Less than 10% of the population in all Hermosa Beach tracts are below the poverty level. Jurisdictions east of the City, such as Lawndale, Torrance, and Hawthorne, contain tracts with larger populations below the poverty level ranging from 10% to 40%. Table D-12: Population Below Poverty Level by Race/Ethnicity (2020) Race/Ethnicity Total Population Total Population Black or African American alone 135 0.0% 787,711 20.2% American Indian and Alaska Native alone 90 12.2% 76,403 16.3% Asian alone 1,160 10.0% 1,464,802 11.0% Native Hawaiian and Other Pacific Islander alone 0 -- 24,520 -- Some other race alone 402 2.7% 2,093,575 17.8% Two or more races 1,789 2.1% 717,876 12.1% Hispanic or Latino origin (of any race) 2,149 2.7% 4,797,018 16.9% White alone, not Hispanic or Latino 14,358 4.3% 2,554,426 9.4% Source: 2016-2020 ACS (5-Year Estimates). Sites Inventory There are no RHNA sites in R/ECAPs or areas of high segregation and poverty. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-46 Figure D-20: Poverty Status by Tract (2019) Source: HCD AFFH Data Viewer (2015-2019 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-47 b. Racially/Ethnically Concentrated Areas of Affluence (RCAAs) While racially concentrated areas of poverty and segregation (R/ECAPs) have long been the focus of fair housing policies, racially concentrated areas of affluence (RCAAs) must also be analyzed to ensure housing is integrated, a key to fair housing choice. According to a policy paper published by HUD, RCAAs are defined as communities with a large proportion of affluent and non-Hispanic White residents. According to HUD's policy paper, non-Hispanic Whites are the most racially segregated group in the United States. In the same way neighborhood disadvantage is associated with concentrated poverty and high concentrations of people of color, conversely, distinct advantages are associated with residence in affluent, White communities. HCD has created a new version of the RCAA metric to better reflect California's relative diversity and regional conditions, and to aid local jurisdictions in their analysis of racially concentrated areas of poverty and affluence pursuant to AB 686 and AB 1304. This section describes RCAAs using HCD’s updated methodology.4 Regional Trend As presented in Figure D-21, RCAAs are more prevalent in Los Angeles County coastal communities. In the region surrounding Hermosa Beach, RCAAs have been identified along the coast from Malibu to Ranchos Palos Verdes. There are no RCAAs in the central, south, and east Los Angeles area. As shown in Figure D-5 and Figure D-17 previously, coastal areas tend to have smaller non-White and LMI household populations compared to inland jurisdictions. Figure D-22 shows median income by block group in the region. Consistent with the RCAA trend, block groups with higher median incomes exceeding the Statewide median of $87,100 are most prevalent along the coast from Santa Monica to Ranchos Palos Verdes. In general, median incomes are lower the more inland a jurisdiction is. Most block groups in central and east Los Angeles surrounding the City of Los Angeles have median incomes below the State median. 4 HCD, Racially Concentrated Areas of Affluence. Summary and Description. Accessed January 20, 2023. https://www.arcgis.com/home/item.html?id=4100330678564ad699d139b1c193ef14&sublayer=4. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-48 Figure D-21: Regional RCAA Tracts (2019) Source: HCD AFFH Data Viewer (2015-2019 ACS), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-49 Figure D-22: Regional Median Income by Block Group (2019) Source: HCD AFFH Data Viewer (2015-2019 ACS), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-50 Local Trend Median household income by race/ethnicity in Hermosa Beach and Los Angeles County is shown in Table D-13. In the County, White, non-Hispanic households have the highest median income of $91,323. Black/African American households ($51,256), households of some other race ($56,747), and Hispanic/Latino households ($59,837) have the lowest median incomes in the County. American Indian/Alaska Native households also have a median income below the countywide median of $71,358. The median household income in Hermosa Beach is $142,500, significantly higher than the median countywide. The median income amongst Black/African American households in Hermosa Beach is well below other racial/ethnic groups but is higher than the median for Black/African American households countywide. The median household income for the Black/African American population is only $86,056. The median household income in the Hispanic Latino population, $139,034, is also lower than the citywide median of $142,083. All other racial/ethnic groups in the City have median household incomes exceeding the median citywide. Table D-13: Median Household Income by Race/Ethnicity (2020) Race/Ethnicity % Distribution % Distribution Black or African American 1.0% $86,056 9.4% $51,259 American Indian and Alaska Native 0.7% - 0.7% $62,427 Asian 4.7% $212,847 15.1% $83,252 Native Hawaiian and Other Pacific Islander 0.0% - 0.2% $78,831 Some other race 1.2% $152,656 16.1% $56,747 Two or more races 4.5% $206,875 5.8% $71,943 Hispanic or Latino origin (of any race) 7.3% $139,034 37.7% $59,837 White alone, not Hispanic or Latino 82.6% $143,083 35.1% $91,323 Source: 2016-2020 ACS (5-Year Estimates). All tracts in Hermosa Beach are considered RCAAs (Figure D-24). As presented in Figure D- 24, most block groups in the City have median incomes exceeding the State median of $87,100. There is one block group with a median income of only $54,150 located in the northwestern section of the City. This block group encompasses North School and Valley Park and is located along Valley Drive, Gould Avenue, 27th Street, and Hermosa Avenue. The tract encompassing this block group has a larger proportion of renter-occupied households compared to all other City tracts. Approximately 61% of households in this tract are renters. In general, renters are more likely to have lower incomes compared to owners. Tenure is further discussed in Section 5, Disproportionate Housing Needs, of this Assessment of Fair Housing Issues. Block groups between Hermosa Avenue and Ardmore Avenue, including the block group discussed above, tend to have lower median incomes than the remainder of the City. There is one mobile home park in Hermosa Beach on Pier Avenue in this section of the City (Marineland MHP, 60 units). Mobile homes tend to be more affordable than other housing options; therefore, households residing in mobile homes generally have lower incomes. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-51 Hermosa Beach was previously a redlined community. The Home Owners’ Loan Corporation (HOLC) was created in the New Deal Era and trained many home appraisers in the 1930s. The HOLC created a neighborhood ranking system infamously known today as redlining. Local real estate developers and appraisers in over 200 cities assigned grades to residential neighborhoods. These maps and neighborhood ratings set the rules for decades of real estate practices. The grades ranged from A to D. During this time period, Hermosa Beach was ranked D. A D-ranking was considered “hazardous” and “areas here often received this grade because they were "infiltrated" with "undesirable populations" such as Jewish, Asian, Mexican, and Black families. These areas were more likely to be close to industrial areas and to have older housing.”5 Despite being historically redlined, Hermosa Beach has gradually transitioned into a desirable community given its coastal location, Hermosa Beach is a coastal community spanning only approximately a mile inland. Because of the geographic character of the City, land and housing costs, including rental and ownership housing, tend to be higher compared to other Los Angeles County jurisdictions. According to Zillow’s market summary for Hermosa Beach, the median rent in the City is $5,900 as of November 2023.6 Manhattan Beach and Redondo Beach, coastal cities north and south of Hermosa Beach also have higher median rental prices of $7,000 and $3,500, respectively, compared to jurisdictions east of the City including Torrance ($2,733), Lawndale ($2,600), and the City of Los Angeles ($2,800). Similarly, the median home sale price in Hermosa Beach in August 2022 was $1,850,000 compared to only $820,000 countywide during the same period.7 Manhattan Beach and Redondo Beach also had median home sale prices exceeding the County average of $2,842,500 and $1,300,000, respectively. Cities just inland of Hermosa Beach had significantly lower median home sale prices, including Torrance ($956,500), Lawndale ($855,00), Gardena ($730,000), and the City of Los Angeles ($1,075,000). The high housing costs in the City, due to geographic location, are a contributing factor for the prevalence in RCAAs in the community. Actions outlined in this Housing Element (see Table II-2 in Chapter II, Housing Policy Plan) aim to increase access to these RCAAs through increased housing opportunities and outreach strategies. Affirmative marketing strategies include working with agencies serving low income and special needs households to promote affordable housing opportunities in the City to promote more diverse and inclusive communities. Sites Inventory All sites identified to meet the RHNA are in RCAAs. 5 HCD AFFH Data Viewer 2.0, HOLC Redlining Grade Description. https://www.arcgis.com/home/item.html?id=7792ea4a90834c168078907350c40ad8. Accessed November 2023. 6 Zillow.com Rental Market Trends. https://www.zillow.com/rental-manager/market-trends/. Accessed November 2023. 7 Corelogic California Home Sale Activity by City, August 2022. https://www.corelogic.com/wp- content/uploads/sites/4/2022/09/CA-Home-Sale-Activity-by-City-August-2022.pdf. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-52 Figure D-23: RCAA Tracts (2019) Source: HCD AFFH Data Viewer (2015-2019 ACS), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-53 Figure D-24: Median Income by Block Group (2019) Source: HCD AFFH Data Viewer (2015-2019 ACS), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-54 4. Access to Opportunities Significant disparities in access to opportunity are defined by the AFFH Final Rule as “substantial and measurable differences in access to educational, transportation, economic, and other opportunities in a community based on protected class related to housing.” The Department of Housing and Community Development (HCD) and California Tax Credit Allocation Committee (TCAC) convened the California Fair Housing Task force to “provide research, evidence-based policy recommendations, and other strategic recommendations to HCD and other related state agencies/ departments to further the fair housing goals (as defined by HCD).” The Task Force has created Opportunity Maps to identify resources levels across the state “to accompany new policies aimed at increasing access to high opportunity areas for families with children in housing financed with nine percent Low Income Housing Tax Credits (LIHTCs)”. These opportunity maps are made from composite scores of three different domains made up of a set of indicators. Table D-14 shows the full list of indicators. The opportunity maps include a measure or “filter” to identify areas with poverty and racial segregation. To identify these areas, census tracts were first filtered by poverty and then by a measure of racial segregation. The criteria for these filters were: • Poverty: Tracts with at least 30 percent of population under federal poverty line; • Racial Segregation: Tracts with location quotient higher than 1.25 for Blacks, Hispanics, Asians, or all people of color in comparison to the County Table D-14: Domains and List of Indicators for Opportunity Maps Domain Indicator Economic Poverty Adult education Employment Job proximity Reading proficiency High School graduation rates TCAC/HCD assigns “scores” for each of the domain (see Table D-14) by census tracts as well as computing “composite” scores that are a combination of the three domains. Scores from each individual domain range from 0-1, where higher scores indicate higher “access” to the domain or higher “outcomes.” Composite scores do not have a numerical value but rather rank census tracts by the level of resources (low, moderate, high, highest, and high poverty and segregation). The TCAC/HCD Opportunity Maps offer a tool to visualize show areas of highest resource, high resource, moderate resource, moderate resource (rapidly changing), low resource, and high segregation and poverty and can help to identify areas within the community Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-55 that provide good access to opportunity for residents or, conversely, provide low access to opportunity. They can also help to highlight areas where there are high levels of segregation and poverty. The information from the opportunity mapping can help to highlight the need for housing element policies and programs that would help to remediate conditions in low resource areas and areas of high segregation and poverty and to encourage better access for low and moderate income and black, indigenous, and people of color (BIPOC) households to housing in high resource areas. Regional Trend As explained previously, TCAC composite scores categorize the level of resources in each census tract. Categorization is based on percentile rankings for census tracts within the region. In the Los Angeles County region surrounding Hermosa Beach, coastal areas are predominantly highest resource areas (Figure D-25). As tracts go further inland, the lower composite TCAC scores are. The central and south Los Angeles areas are predominantly low resource areas and areas of high segregation and poverty. Jurisdictions adjacent to Hermosa Beach to the east, including Lawndale and Gardena, are comprised of high, moderate, and low resource areas, whereas cities even further east of Hermosa Beach, such as the City of Los Angeles, Willowbrook and Westmont communities, and Compton, have primarily low resource areas and areas of high segregation and poverty. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-56 Figure D-25: Regional TCAC Opportunity Area Scores by Tract (2022) Source: HCD AFFH Data Viewer (TCAC 2022), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-57 While the Federal Affirmatively Furthering Fair Housing (AFFH) Rule has been repealed, the data and mapping developed by HUD for the purpose of preparing the Assessment of Fair Housing (AFH) can still be useful in informing communities about segregation in their jurisdiction and region, as well as disparities in access to opportunity. This section presents the HUD-developed index scores based on nationally available data sources to assess County residents’ access to key opportunity assets. HUD opportunity indices are provided for entitlement jurisdictions only. Opportunity indicators are not available for the City of Corte Madera. Table D-20 provides index scores or values (the values range from 0 to 100) for the following opportunity indicator indices: • School Proficiency Index: The school proficiency index uses school-level data on the performance of 4th grade students on state exams to describe which neighborhoods have high-performing elementary schools nearby and which are near lower performing elementary schools. The higher the index value, the higher the school system quality is in a neighborhood. • Labor Market Engagement Index: The labor market engagement index provides a summary description of the relative intensity of labor market engagement and human capital in a neighborhood. This is based upon the level of employment, labor force participation, and educational attainment in a census tract. The higher the index value, the higher the labor force participation and human capital in a neighborhood. • Transit Trips Index: This index is based on estimates of transit trips taken by a family that meets the following description: a 3-person single-parent family with income at 50 percent of the median income for renters for the region (i.e., the Core-Based Statistical Area (CBSA). The higher the transit trips index value, the more likely residents in that neighborhood utilize public transit. • Low Transportation Cost Index: This index is based on estimates of transportation costs for a family that meets the following description: a 3-person single-parent family with income at 50 percent of the median income for renters for the region/CBSA. The higher the index value, the lower the cost of transportation in that neighborhood. • Jobs Proximity Index: The jobs proximity index quantifies the accessibility of a given residential neighborhood as a function of its distance to all job locations within a region/CBSA, with larger employment centers weighted more heavily. The higher the index value, the better the access to employment opportunities for residents in a neighborhood. • Environmental Health Index: The environmental health index summarizes potential exposure to harmful toxins at a neighborhood level. The higher the index value, the less exposure to toxins harmful to human health. Therefore, the higher the index value, the better the environmental quality of a neighborhood, where a neighborhood is a census block-group. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-58 Table D-15: Opportunity Indices by Race/Ethnicity – Los Angeles County (2020) School Proficiency Index Labor Market Index Transit Trip Index Transportation Jobs Proximity Index Environmental Health Index White, non-Hispanic 65.09 65.41 82.63 74.09 55.80 18.99 Black, non-Hispanic 32.37 34.00 87.70 79.18 40.13 11.66 Hispanic 38.38 33.18 87.19 77.74 41.53 11.91 Asian/Pacific Islander, non-Hispanic 59.34 55.94 86.52 76.45 51.82 12.16 Native American, non-Hispanic 46.90 44.50 83.17 75.65 44.24 16.74 White, non-Hispanic 58.06 57.49 86.42 79.48 57.52 16.66 Black, non-Hispanic 27.16 25.52 88.65 81.18 36.59 11.62 Hispanic 32.87 27.66 89.45 81.02 42.84 10.30 Asian/Pacific Islander, non-Hispanic 54.52 50.06 89.62 81.49 54.19 9.84 Native American, non-Hispanic 35.12 32.02 85.23 78.70 46.35 16.01 Source: AFFHT Data Table 12; Data Sources: Decennial Census; ACS; Great Schools; Common Core of Data; SABINS; LAI; LEHD; NATA. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-59 Local Trend Table D-16 and Sites Inventory All RHNA sites are in HCD/TCAC highest resource areas. Figure D-26 show TCAC opportunity map scores by tract in Hermosa Beach. All tracts in the City are considered highest resource areas. As mentioned above, jurisdictions adjacent to Hermosa Beach, such as Manhattan Beach, Redondo Beach, are also comprised of mostly highest resource tracts. Tract 6211.02 in the southeast corner of the City has the lowest economic, environmental, and composite scores compared to other tracts in Hermosa Beach. However, all scores in all Hermosa Beach tracts are high, revealing economic, environmental, and educational opportunities are highly accessible in the City. Table D-16: TCAC Opportunity Map Scores by Tract (2021) Tract Economic Score Education Score Composite Score Final Category 6210.01 0.96 0.95 1.00 1.29 Highest Resource 6210.02 1.00 0.97 1.00 1.54 Highest Resource 6210.04 0.98 0.96 1.00 1.38 Highest Resource 6211.02 0.93 0.90 0.98 1.09 Highest Resource 6211.04 0.99 0.94 0.98 1.30 Highest Resource Source: TCAC/HCD Opportunity Map Scores by Tract, 2021. Sites Inventory All RHNA sites are in HCD/TCAC highest resource areas. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-60 Figure D-26: TCAC Opportunity Area Scores by Tract (2022) Source: HCD AFFH Data Viewer (TCAC 2022), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-61 a. Economic Regional Trend As of December 2022, Los Angeles County has a labor force of 4,927,700 with an unemployment rate of 4.4%.8 According to the 2016-2020 ACS, the following industries employ the largest proportions of Los Angeles County residents: educational services, and health care and social assistance (19.5%), professional, scientific, and management, and administrative and waste management services (14%), and manufacturing (10.9%). The California Employment Development Department (EDD) cited the following companies and organizations as major employers in Los Angeles County: • AHMC Healthcare Inc (Alhambra) – 5,000 to 9,999 employees • All Nations Church (Sylmar) – 1,000 to 4,999 employees • California State Univ NRTHRDG (Northridge) – 1,000 to 4,999 employees • Cedars-Sinai Health System (West Hollywood) – 10,000+ employees • Infineon Technologies Americas (El Segundo) – 1,000 to 4,999 employees • Kaiser Permanente Los Angeles (Los Angeles) – 5,000 to 9,999 employees • Lac & USC Medical Ctr (Los Angeles) – 5,000 to 9,999 employees • Long Beach City Hall (Long Beach) – 5,000 to 9,999 employees • Longshore Dispatch (Wilmington) – 5,000 to 9,999 employees • Los Angeles County Sheriff (Monterey Park) – 10,000+ employees • Los Angeles Intl Airport-Lax (Los Angeles) – 10,000+ employees • Los Angeles Medical Ctr (Los Angeles) – 5,000 to 9,999 employees • Los Angeles Police Dept (Los Angeles) – 5,000 to 9,999 employees • National Institutes of Health (Pasadena) – 10,000+ employees • Security Industry Specialist (Culver City) – 1,000 to 4,999 employees • Six Flags (Valencia – 5,000 to 9,999 employees • Sony Pictures Entrtn Inc (Culver City) – 5,000 to 9,999 employees • Space Exploration Tech Corp (Hawthorne) – 5,000 to 9,999 employees • Twentieth Century Fox (Los Angeles) – 5,000 to 9,999 employees • UCLA Community Based Learning (Los Angeles) – 10,000+ employees • University of Ca Los Angeles (Los Angeles) – 10,000+ employees • Vision X (Los Angeles) – 10,000+ employees • Walt Disney Co (Burbank) – 5,000 to 9,999 employees 8 California Employment Development Department (EDD). 2023. Los Angeles County Profile. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-62 • Water Garden Management (Santa Monica) – 1,000 to 4,999 employees HUD’s opportunity indicators provide values for labor market index9 and jobs proximity index 10 that can be measures for economic development in Los Angeles County. Like the other HUD opportunity indicators, scores range from 0 to 100 and are published by race and poverty level to identify differences in the relevant “opportunity” (in this case economic opportunity). The labor market index value is based on the level of employment, labor force participation, and educational attainment in a census tract- a higher score means higher labor force participation and human capital in a neighborhood. Los Angeles County’s labor market index values have range significantly from 33 to 65, with Hispanic residents scoring lowest and White residents scoring highest. Scores for Los Angeles County residents living below the poverty line drop for all racial/ethnic groups, most notably for Native American residents (from 45 to 32). Index values indicate that Black and Hispanic residents living in poverty have the lowest labor force participation and human capital in the County. HUD’s jobs proximity index quantifies the accessibility of a neighborhood to jobs in the region. Index values can range from 0 to 100 and a higher index value indicate better the access to employment opportunities for residents in a neighborhood. County jobs proximity index values range from 40 to 56 for the total population, where the White population scores the highest and the Black population scores the lowest. The jobs proximity value map in Figure D-27 shows the distribution of scores by block group in the region surrounding Hermosa Beach. Jobs proximity scores are highest in block groups in the Westside area, El Segundo, Manhattan Beach, Downtown Los Angeles, and Torrance. Block groups with low scores below 20 are most concentrated in the south Los Angeles area (i.e., Inglewood, South Gate, Compton), the Palos Verdes Peninsula, and Long Beach. The TCAC Economic Scores are a composite of jobs proximity index values as well as poverty, adult education, employment, and median home value characteristics. TCAC economic scores range from 0 to 1, where higher values indicate more positive economic outcomes. The map in Figure D-28 shows that tracts with the lowest economic scores are located east of Hermosa Beach and other coastal cities, including tracts in and around the cities of Compton, Huntington Park, the City of Los Angeles, Wilmington, and Long Beach. Nearly all tracts in jurisdictions in the coastal areas (i.e., Santa Monica, Hermosa Beach, Redondo Beach, Rancho Palos Verdes) scored in the highest quartile for economic opportunities. 9 Labor Market Engagement Index: The labor market engagement index provides a summary description of the relative intensity of labor market engagement and human capital in a neighborhood. This is based upon the level of employment, labor force participation, and educational attainment in a census tract. The higher the score, the higher the labor force participation and human capital in a neighborhood. 10 Jobs Proximity Index: The jobs proximity index quantifies the accessibility of a given residential neighborhood as a function of its distance to all job locations within a region/CBSA, with larger employment centers weighted more heavily. The higher the index value, the better the access to employment opportunities for residents in a neighborhood. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-63 Figure D-27: Regional Jobs Proximity Index Scores by Block Group (2017) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-64 Source: HCD AFFH Data Viewer (HUD, 2014-2017), 2022. Figure D-28: Regional TCAC Economic Scores by Tract (2022) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-65 Source: HCD AFFH Data Viewer (TCAC 2022), 2022. Local Trend According to the 2016-2020 ACS, Hermosa Beach has a labor force of 11,935 persons with an unemployment rate of 3.9%. The ACS estimates Los Angeles County had an unemployment rate of 6.5% during the same period. The following industries employ the largest proportions of Hermosa Beach residents: professional, scientific, and management, and administrative and waste management services (24.2%), educational services, and health care and social assistance (14.6%), finance and insurance, and real estate and rental and leasing (13.5%), and manufacturing (12.4%). As shown in Figure D-29, approximately 76% of employees in Hermosa Beach commute to work in a car, truck, or van compared to 81.6% countywide. A significantly larger proportion of employees work from home in Hermosa Beach (16.3%) compared to the County (8%). Overall, Hermosa Beach residents tend to have slightly longer commutes compared to residents countywide. Over 34% of workers in Hermosa Beach commute 45 minutes or longer to work compared to only 25% of workers in Los Angeles County. Figure D-29: Means of Transportation to Work (2020) Source: 2016-2020 ACS (5-Year Estimate). Jobs proximity scores by block group are shown for Hermosa Beach in Figure D-30. In general, block groups on the northern side of the City have higher jobs proximity scores compared to the southern side. Block groups on the northern side and along the western border received scores ranging from 61 to 75, while block groups on the southern side received scores ranging from 49 to 58. While the northern section of the City has slightly better access to employment opportunities, jobs proximity scores citywide are generally comparable. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-66 All tracts in the City scored in the highest quartile for TCAC economic opportunities (Figure D-31). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-67 Figure D-30: Jobs Proximity Index Scores by Block Group (2017) Source: HCD AFFH Data Viewer (HUD, 2014-2017), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-68 Figure D-31: TCAC Economic Scores by Tract (2022) Source: HCD AFFH Data Viewer (TCAC 2022), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-69 b. Education Regional Trend The school proficiency index is an indicator of school system quality, with higher index scores indicating access to higher school quality. In Los Angeles County, Black residents have access to lower quality schools (lowest index value of 32), followed by Hispanic residents (38), and Native American residents (47). The White and Asian/Pacific Islander populations received higher index scores of 59 and 65, respectively (Table D-15). For residents living below the federal poverty line, index values are lower for all races and are still lowest for Black and Hispanic residents. White residents have the highest index values, indicating a greater access to high quality schools, regardless of poverty status. The HCD/TCAC education scores for the region show the distribution of education quality based on education outcomes (Figure D-32). As explained in Table D-14, the Education domain score is based on a variety of indicators including math proficiency, reading proficiency, high school graduation rates, and student poverty rates. The education scores range from 0 to 1, with higher scores indicating more positive education outcomes. In the region, lower education scores are found in census tracts in the Downtown Los Angeles and south Los Angeles areas, such as the City of Los Angeles, Inglewood, Westmont, and Huntington Park, and Long Beach area. Consistent with TCAC composite scores, tracts in coastal areas, from Santa Monica to Rancho Palos Verdes, have higher education scores, most scoring in the highest quartile. As of 2022, Los Angeles County had a five-year cohort graduation rate of 86.1%, slightly lower than 86.1% statewide.11 The Asian and Filipino populations have the highest graduation rates (both 95.8%), followed by the White population (89.3%), and population of two or more races (86.9%). The American Indian and African American populations have the lowest graduation rates (67.2% and 78.5%, respectively). In the 2019-2020 school year, 61.5% of high school completers were enrolled in college in Los Angeles County compared to 62.7% in the State. 11 California Department of Education (CDE), Data Quest. 2021-2022 Five-Year Cohort Graduation Rate, Los Angeles County Report. Accessed January 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-70 Figure D-32: Regional TCAC Education Scores by Tract (2022) Source: HCD AFFH Data Viewer (TCAC 2022), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-71 Local Trend The Hermosa Beach City School District operates in the City and includes Hermosa View School (TK-2), Hermosa Vista School (3-4), and Hermosa Valley School (5-8). There is no public high school in Hermosa Beach. The closest public high schools are located in Manhattan Beach and Redondo Beach. Greatschools.org is a non-profit organization that rates schools across the States. The Great Schools Summary Rating calculation is based on four ratings: the Student Progress Rating or Academic Progress Rating, College Readiness Rating, Equity Rating, and Test Score Rating. Ratings at the lower end of the scale (1-4) signal that the school is “below average”, 5-6 indicate “average”, and 7-10 are “above average.” Hermosa View School and Hermosa Valley School received high scores of 10 and 9, respectively. The Healthy Places Index (HPI) is a new tool that allows local officials to diagnose and change community conditions that affect health outcomes and the wellbeing of residents.12 The HPI tool was developed by the Public Health Alliance of Southern California to assist in comparing community conditions across the state and combined 25 community characteristics such as housing, education, economic, and social factors into a single indexed HPI Percentile Score. Hermosa Beach has an HPI index score in 96th percentile, indicating the City has healthier community conditions than 96% of other California cities and towns. The HPI also includes individual indicators related to variables including, but not limited to, economic, educational, social, environmental, and housing factors. Educational variables include population with a bachelor’s education or higher, high school enrollment, and preschool enrollment at the tract level. All Hermosa Beach tracts scored in the highest quartile for population with a bachelor’s education or higher. More than 71% of the population over the age of 25 in all tracts have a bachelor's degree of higher. In all Hermosa Beach tracts, 100% of 15 to 17 year olds are also enrolled in high school. Preschool enrollment is also included as a variable for the HPI as “early childhood is a crucial period for brain development, shaping nearly every aspect of one’s future health and wellbeing. Quality preschool is important for healthy development, and has been associated with lifelong educational, economic and health benefits.”13 Figure D-33 shows percentile rankings by tract for preschool enrollment in Hermosa Beach. The northern Hermosa Beach tracts scored in the highest quartile for preschool enrollment, where 75% to 100% of 3 and 4 year olds are enrolled in preschool. Only 53.8% of preschool- aged children in the southeastern tract (tract 6211.02) and 50.9% in the southwestern tract (tract 6211.04) are enrolled in preschool. TCAC education scores for Hermosa Beach tracts are presented in Figure D-34. As stated in Table D-14 above, TCAC education scores are formulated based on math proficiency, reading proficiency, high school graduation rates, and student poverty rates. All tracts in the City scored in the highest quartile for educational opportunities. 12 California Healthy Places Index (HPI) (based on ACS 2015-2019 (5-Year Estimates)), 2022. Accessed January 2023. https://www.healthyplacesindex.org/. 13 California Healthy Places Index (HPI), 2022. Preschool Enrollment. Accessed January 2023. https://policies.healthyplacesindex.org/education/preschool-enrollment/about. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-72 Figure D-33: Healthy Places Index – Preschool Enrollment by Tract (2019) Source: California Healthy Places Index (HPI) (based on 2015-2019 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-73 Figure D-34: TCAC Education Scores by Tract (2022) Source: HCD AFFH Data Viewer (TCAC 2022), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-74 c. Environmental Regional Trend Historical and current land uses, such as landfills and proximity to freeways, may expose residents to variable environmental conditions. The TCAC Environmental Score shown in Figure D-35 is based on CalEnviroScreen 3.0 scores. The California Office of Environmental Health Hazard Assessment (OEHHA) compiles these scores to help identify California communities disproportionately burdened by multiple sources of pollution. In addition to environmental factors (pollutant exposure, groundwater threats, toxic sites, and hazardous materials exposure) and sensitive receptors (seniors, children, persons with asthma, and low birth weight infants), CalEnviroScreen also takes into consideration socioeconomic factors. These factors include educational attainment, linguistic isolation, poverty, and unemployment. TCAC Environmental Scores range from 0 to 1, where higher scores indicate a more positive environmental outcome (better environmental quality) A large proportion of the region surrounding Hermosa Beach is comprised of tracts scoring in the lowest quartile for environmental opportunities (Figure D-35). Most tracts in and around the cities of Los Angeles, El Segundo, Gardena, Carson, Long Beach, Compton, and South Gate received environmental scores in the lowest quartile. Hermosa Beach, Redondo Beach, and the Palos Verdes peninsula (Rolling Hills Estates, Rancho Palos Verdes, Palos Verdes Estates) have the highest concentration of tracts scoring in the highest quartile in the region. Most of Los Angeles County as a whole received environmental scores of 0.5 or lower. Figure D-35 shows the TCAC Environmental Score based on CalEnviroScreen 3.0. However, the Office of Environmental Health Hazard Assessment has released updated scored in February 2020 (CalEnviroScreen 4.0). The CalEnviroScreen 4.0 scores in Figure D-36 are based on percentiles and show that coastal areas, from Santa Monica to Rancho Palos Verdes, generally have better environmental conditions compared to south, central, and east Los Angeles. Tracts scoring in the 91st percentile or higher (worst scores) are prevalent in the section of the County stretching from Glendale to Carson (north and south) and Inglewood to El Monte (west and east). HUD’s opportunity index for “environmental health” summarizes potential exposure to harmful toxins at a neighborhood level. Index values range from 0 to 100 and the higher the index value, the less exposure to toxins harmful to human health. Therefore, the higher the value, the better the environmental quality of a neighborhood, where a neighborhood is a census block-group. In Los Angeles County, environmental health index values range from 11.7 for Black residents to 19 for White residents for the total population (Table D-15). The index decreases for all racial/ethnic groups below the poverty line, most drastically for the Asian/Pacific Islander population. Of the populations below the poverty line, Asian/Pacific Islander residents have the lowest environmental health index score of 9.8. The White population, including the population below the poverty line, has the highest environmental health index score compared to other racial/ethnic groups. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-75 Figure D-35: Regional TCAC Environmental Scores by Tract (2022) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-76 Source: HCD AFFH Data Viewer (TCAC 2022), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-77 Figure D-36: Regional CalEnviroScreen 4.0 Percentile Scores by Tract (2021) Source: HCD AFFH Data Viewer (OEHHA 2021), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-78 Local Trend TCAC environmental scores by tract are shown in Figure D-38 for Hermosa Beach. Of the five tracts in the City, four scored in the highest quartile and one, in the southwestern corner of the City, received a score of 0.74. While this tract did receive a slightly lower environmental score compared to the remainder of Hermosa Beach, it is relevant to note that the other four tracts received scores ranging from 0.75 to 0.83. Based on these scores, environmental opportunities, based on TCAC/HCD’s definition, are generally consistent citywide. CalEnviroScreen 4.0 scores for Hermosa Beach are presented in Figure D-39. Consistent with TCAC environmental scores, all tracts in the City received low CalEnviroScreen 4.0 percentile scores (best scores) indicating healthy environmental conditions. As mentioned above, based on the overall HPI score, Hermosa Beach has healthier community conditions than 96% of other California cities and towns. The HPI includes individual indicators used to determine a City or neighborhoods overall score. The HPI uses the following variables to analyze clean environment: Diesel PM (average daily amount of particulate pollution (very small particles) from diesel sources, measured in kilograms/day), drinking water contaminants (combines information about 13 contaminants and 2 types of water quality violations that are sometimes found when drinking water samples are tested), ozone (average amount of ozone in the air during the most polluted 8 hours of summer days, measured in parts per million), and PM 2.5 (yearly average of fine particulate matter concentration (very small particles from vehicle tailpipes, tires and brakes, powerplants, factories, burning wood, construction dust, and many other sources), measured in micrograms/meter3). All Hermosa Beach tracts scored in the highest quartile (best scores) for drinking water contaminants and in the 72nd percentile for ozone. All tracts also scored in the lowest quartile for PM 2.5 Diesel PM percentile rankings by tract are shown in Figure D-37. Most tracts received percentile scores for Diesel PM ranging from 32 to 50, while the northeastern tract scored in the 18th percentile. While the City does have low scores for Diesel PM and PM 2.5, these scores are generally consistent with the County as a whole. Coastal cities, such as Hermosa Beach, generally have slightly better Diesel PM and PM 2.5 percentile scores compared to inland County jurisdictions. High levels of Diesel PM are typically recorded adjacent to ports, rail yards, and freeways.14 PM 2.5 emissions are typically emitted from power plants, industries, and automobiles, but can also be emitted by construction sites, unpaved roads, fields, smokestacks, for fires.15 Highly urbanized areas such as Los Angeles County, including Hermosa Beach, are generally more exposed to high Diesel PM and PM 2.5 pollutants. The HPI also includes data for park access. Parks and open space are an important part of environmental health as “parks can encourage physical activity, reduce chronic diseases, improve mental health, foster community connections, and support community resilience to climate change and pollution.”16 According to the HPI based on 2017 14 California Office of Environmental Health Hazard Assessment (OEHHA), Diesel Particulate Matter. Accessed January 2023. https://oehha.ca.gov/calenviroscreen/indicator/diesel-particulate- matter#:~:text=What%20is%20diesel%20particulate%20matter,contains%20hundreds%20of%20different%20chemical s.. 15 United States Environmental Protection Agency (EPA), Particulate Matter (PM) Basics. Accessed January 2023. https://www.epa.gov/pm-pollution/particulate-matter-pm-basics. 16 California Healthy Places Index (HPI). Policy Guide, Park Access. Accessed January 2023. https://policies.healthyplacesindex.org/neighborhood/park-access/about. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-79 California Department of Public Health data, 100% of residents in all Hermosa Beach tracts live within a half-mile of a park, beach, or open space. Sites Inventory All RHNA units are located in tracts scoring within the 20th percentile (best scores) of CalEnviroScreen 4.0 scores. Figure D-37: Healthy Places Index – Diesel PM by Tract (2016) Source: California Healthy Places Index (HPI) (based on CalEnviroScreen 4.0, 2016), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-80 Figure D-38: TCAC Environmental Scores by Tract (2022) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-81 Source: HCD AFFH Data Viewer (TCAC 2022), 2023. Figure D-39: CalEnviroScreen 4.0 Percentile Scores by Tract (2021) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-82 Source: HCD AFFH Data Viewer 2.0 (OEHHA 2021), 2023. d. Transportation Regional Trend HUD’s opportunity indicators can provide a picture of transit use and access in Marin County through the transit index 17 and low transportation cost.18 Index values can range from zero to 100 and are reported per race so that differences in access to transportation can be evaluated based on race. In the County, transit index values range from 82.6 to 87.7, where White residents scored the lowest and Black residents scored the highest. Hispanic (87.2) and Asian/Pacific Islander (86.5) populations also scored higher than White and Native American (83.2) populations. Given that higher the transit trips index, the more likely residents utilize public transit, Black, Hispanic, and Asian/Pacific Islander residents are more likely to use public transit. For residents living below the poverty line, index values increase for all racial/ethnic groups, most notably for the White and Asian/Pacific Islander populations. Transit scores for the population below the poverty line range from 85.2 for the Native American population to 89.6 for the Asian/Pacific Islander population. Low transportation cost index values range from 74.1 for the White population to 79.2 for the Black population. The Black population has the highest low transportation cost index score followed by the Hispanic population (77.7), Asian/Pacific Islander population (76.5), and the Native American population (75.7). Low transportation cost scores are higher for the population below the poverty line regardless of race. Black, Hispanic, and Asian/Pacific Islander residents have the highest low transportation cost index values, regardless of poverty status. A higher “low transportation cost” index value indicates a lower cost of transportation. Therefore, transit is less costly for these racial/ethnic groups compared the White and Native American populations. Los Angeles County is served by a large public transit system including rail systems, bus operations, and transitways. The Metro rail system operates throughout the County and includes a hub in downtown Los Angeles. Additional rail service operators in the County include Metrolink and Amtrak. The Southern California Regional Rail Authority (SCRRA) operates the 416-mile Metrolink commuter rail system, which has its hub in Downtown Los Angeles at Union Station and extends to Ventura, San Bernardino, Riverside, Orange, and San Diego counties. Amtrak provides interstate service from points around the country to Union Station, as well as regional service between major cities throughout California. There are several regional and municipal bus operators in the County; however, the largest is the Metro bus system. Metro operates the Metro Rapid Bus service and the Metro Express Bus service. The Metro rail and bus map is included as Figure D-40. 17 Transit Trips Index: This index is based on estimates of transit trips taken by a family that meets the following description: a 3-person single-parent family with income at 50% of the median income for renters for the region (i.e., the Core-Based Statistical Area (CBSA). The higher the transit trips index, the more likely residents in that neighborhood utilize public transit. 18 Low Transportation Cost Index: This index is based on estimates of transportation costs for a family that meets the following description: a 3-person single-parent family with income at 50% of the median income for renters for the region/CBSA. The higher the index, the lower the cost of transportation in that neighborhood. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-83 Figure D-40: Metro Rail and Busway Map (2022) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-84 Source: Metro – Metro System Maps, October 2022. Accessed January 2023. https://www.metro.net/riding/guide/system-maps/. Local Trends HUD opportunity indices are not available for Hermosa Beach. Public transit systems operating in the City include Beach Cities Transit, Torrance Transit, and the Los Angeles Department of Transportation (LADOT) Commuter Express. • Beach Cities Transit provides fixed route and dial-a-ride transit service in the South Bay. BCT Line 109 connects Riviera Village, Hermosa, Manhattan, El Segundo, Green Line Stations, and the LAX Bus Center. Torrance Transit operates one bus route through Hermosa Beach. • Torrance Transit Line 13 operates between Redondo Beach Pier and Artesia A (Blue) Line Station, serving major destinations that include Hermosa Beach Pier, South Bay Galleria, Harbor Gateway Transit Center, Dignity Health Sports Park, and California State University, Dominguez Hills. • LADOT Commuter Express shuttles provide one-way limited stop transit service to job centers during commute hours through Commuter Express Line 438. Hermosa Beach also has a system of bicycle paths, lanes, and routes throughout the City. Bike facilities generally run along the western side of the City, mainly along Hermosa Avenue, Monterey Boulevard, and Ardmore Avenue. Bike facilities are shown in Figure D- 41. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-85 Figure D-41: Bicycle Facilities (2023) Source: City of Hermosa Beach Bike Facilities Map. Accessed January 2023. The City also operates a Safe Routes to School Program, partnering with the Hermosa Beach City School District and the Hermosa Beach Police Department. The City and School District have administered surveys of parents to understand walking and biking to school preferences and activities to inform safe routes to school programming and practices. The HPI includes automobile access and active commuting data as transportation indicators. According to HPI data based on the 2015-2019 ACS, more than 92% of households in all Hermosa Beach tracts have access to an automobile. While this is a large proportion of the population, these tracts received percentile scores ranging from only 32 to 62. Populations of households with access to vehicles in Hermosa Beach tracts are consistent with adjacent areas and larger than other areas of the County such as central and east Los Angeles. Only 1.6% to 9.7% of workers aged 16 or older commute to work by transit, walking, or cycling in Hermosa Beach tracts. The tract in the southeast corner of the City has the smallest population of transit, walking, or cycling commuters. As discussed previously, 76.2% of workers in Hermosa Beach get to work via car, truck, or van (Figure D- 29). The southern side of the City also has lower jobs proximity index scores compared to the northern and western sides (Figure D-30). Bike facilities (paths, lanes, and routes) are also less accessible to persons residing in the southeastern tract (Figure D-41). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-86 Figure D-42: Healthy Places Index – Active Commuting by Tract (2019) Source: California Healthy Places Index (HPI) (based on 2015-2019 ACS), 2023. 5. Disproportionate Housing Needs The AFFH Rule Guidebook defines disproportionate housing needs as a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing needs when compared to the proportion of a member of any other relevant groups or the total population experiencing the category of housing need in the applicable geographic area (24 C.F.R. § 5.152). The analysis is completed by assessing cost burden, overcrowding, and substandard housing. The Comprehensive Housing Affordability Strategy (CHAS) developed by the Census for HUD provides detailed information on housing needs by income level for different types of households in Los Angeles County. Housing problems considered by CHAS include: • Housing cost burden, including utilities, exceeding 30% of gross income; • Severe housing cost burden, including utilities, exceeding 50% of gross income; • Overcrowded conditions (housing units with more than one person per room); and • Units with physical defects (lacking complete kitchen or bathroom According to 2022 HUD CHAS data based on the 2015-2019 ACS, approximately 51% of Los Angeles County households experience housing problems, compared to 29% of households in Hermosa Beach. In both the County and Hermosa Beach, renters are more likely to be affected by housing problems than owners. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-87 a. Cost Burden Regional Trend As presented in Table D-17, in Los Angeles County, approximately 44% of households are cost burdened. Renters experience cost burden at higher rates than owners (52.8% vs. 33.7%), regardless of race. Among renters, Black and Hispanic households are cost burdened at the highest rate (58.8% and 56.1%, respectively). All other racial/ethnic renter groups are cost burdened at a rate below the citywide average of 52.8% for renter- occupied households. Geographically, tracts with larger populations of cost burdened owners are more concentrated in the central and south Los Angeles areas (Figure D-43). However, tracts with populations of owners exceeding 60% are dispersed throughout the region, including in coastal areas such as Santa Monica and Long Beach. Tracts with larger populations of overpaying renters are also more prevalent in the central and south Los Angeles areas in and around the cities of Los Angeles, Compton, and Westmont, and in the area surrounding Long Beach (Figure D-44). The coastal area from Manhattan Beach to Palos Verdes Estates, including Hermosa Beach, tends to have fewer cost burdened renters. Table D-17: Housing Problems and Cost Burden by Race/Ethnicity – L.A. County (2019) White Black Asian Amer. Ind Pac. Isl. Hispanic All With Housing Problem Owner-Occupied 31.7% 41.3% 36.7% 34.7% 41.6% 45.8% 37.8% Renter-Occupied 51.9% 92.7% 56.1% 56.1% 54.0% 69.4% 61.2% All Households 41.0% 55.5% 45.7% 47.0% 49.5% 60.3% 50.5% With Cost Burden Owner-Occupied 30.7% 39.8% 33.0% 33.1% 31.0% 36.7% 33.7% Renter-Occupied 48.6% 58.8% 47.3% 51.3% 45.3% 56.1% 52.8% All Households 38.9% 52.4% 39.7% 43.6% 40.1% 48.6% 44.1% Source: HUD CHAS data (based on 2015-2019 ACS), 2022. Housing problems and cost burdens can also affect special needs populations disproportionately. Table D-18 shows that elderly renters and large renter households experience housing problems at rates exceeding the countywide average for renter- occupied households. Over 83% of large renter households have one or more housing problem but only 52.5% are cost burdened. This is likely due to the population of large households that are overcrowded. Large owner households also experience housing problems at a rate exceeding the countywide average for owner-occupied households. Approximately 56% of elderly renters are cost burdened compared to only 52.8% countywide. Elderly households are more likely to have fixed incomes and overpay for housing. Table D-18: Housing Problems and Cost Burden by Household Type – L.A. County (2019) All HH Any housing problem 37.0% 52.1% 37.8% 65.7% 83.3% 61.2% 50.5% Cost burden >30% 37.8% 30.0% 33.7% 56.3% 52.5% 52.8% 44.1% Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-88 All HH Source: HUD CHAS data (based on 2015-2019 ACS), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-89 Figure D-43: Regional Population of Cost Burdened Owners by Tract (2019) Source: HUD AFFH Data Viewer (2015-2019 ACS), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-90 Figure D-44: Regional Population of Cost Burdened Renters by Tract (2019) Source: HUD AFFH Data Viewer (2015-2019 ACS), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-91 Local Trend Housing problem and cost burden rates are lower in Hermosa Beach (28.8% and 26.6%, respectively, Table D-19) than in the County overall (50.5% and 44.1%, respectively, Table D-17). Since the 2006-2010 HUD CHAS data, cost burden has decreased in Hermosa Beach. In 2010, 38% of households were cost burden, including 36.4% of owner households and 39.2% of renter households. Unlike the countywide trend, Asian (50%) and American Indian (46.2%) renter households are cost burdened at the highest rates. As presented in Table D- 12 previously, the Asian and American Indian populations in Hermosa Beach also have the highest poverty rates compared to other racial/ethnic groups. Hispanic renter households are also cost burdened at a rate exceeding the citywide average for renter-occupied households (41%). White and Black renters are cost burdened at rates below the citywide average. Asian and Hispanic owners are also cost burdened at rates exceeding 25.2%, the citywide average for owner-occupied households. There are no cost burdened Black or American Indian owners in the City. As shown in Figure D-45, between 20% and 40% of owners are cost burdened in most Hermosa Beach tracts. Tract 6210.05 in the northwestern section of the City has a slightly larger population of overpaying owners with mortgages of 56.5%. Less than 38% of owners are cost burdened in the remaining Hermosa Beach tracts. Tract 6210.05 also contains block groups with LMI household populations exceeding 25% and lower median income compared to other areas of the City (see Figure D-18 and Figure D-24). Between 20% and 40% of renters are also cost burdened in tracts on the western side of the City (tracts 6210.05 and 6211.04) (Figure D-46). Only 19.8% of renters are cost burdened in tract 6211.02 in the southeast corner of the City while 45.6% are cost burdened in tract 6210.01 in the northeast section of the City. As discussed previously, tract 6210.01 has a population of elderly adults aged 65 and older of 15% compared to only 13.9% citywide. Elderly adults are more likely to be retired and have fixed or limited incomes. However, cost burden in Figure D-46 is based on earnings over the past 12 months from when the survey was taken. According to the ACS methodology, earnings are just one kind of income and are primarily wages and salary from a job. Other sources of income that are not considered “earnings” include Social Security payments, pensions, child support, public assistance, annuities, money derived from rental properties, interest and dividends. According to the 2017-2021 ACS, of the 454 households in tract 6210.01 with a householder aged 65 or older, 56.8% have household incomes, including annual earnings and other sources of income, of over $100,000. Because cost burden is estimated based on earnings alone, the population of households overpaying for housing may be exaggerated, especially in tract 6210.01. Table D-19: Housing Problems & Cost Burden by Race/Ethnicity – Hermosa Beach (2019) White Black Asian Amer. Ind Pac. Isl. Hispanic All With Housing Problem Owner-Occupied 24.1% 0.0% 41.2% 0.0% -- 31.3% 26.5% Renter-Occupied 29.1% 21.1% 50.0% 76.9% -- 54.1% 30.9% All Households 26.8% 17.4% 42.7% 62.5% -- 42.2% 28.8% With Cost Burden Owner-Occupied 23.3% 0.0% 41.2% 0.0% -- 31.3% 25.2% Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-92 White Black Asian Amer. Ind Pac. Isl. Hispanic All Renter-Occupied 26.7% 21.1% 50.0% 46.2% -- 41.0% 27.8% All Households 25.2% 17.4% 42.7% 37.5% -- 35.9% 26.6% Source: HUD CHAS data (based on 2015-2019 ACS), 2022. Like the trend countywide, larger owner- and renter-occupied households are more likely to experience housing problems in the City (Table D-20). Large renter households are also more likely to be cost burdened. Approximately 55% of large renter households are cost burdened compared to only 28% of renters citywide. Elderly households also overpay for housing at rates exceeding the citywide average. Table D-20: Housing Problems & Cost Burden by Household Type – Hermosa Beach (2019) All HH Any housing problem 30.2% 33.3% 26.5% 61.8% 58.0% 30.9% 28.8% Cost burden >30% 29.7% 14.0% 25.2% 45.5% 54.6% 27.8% 26.6% Source: HUD CHAS data (based on 2015-2019 ACS), 2022. Sites Inventory As described above, three of the four tracts that make up Hermosa Beach have populations of cost burdened owners ranging from 20% to 40%. Consistent with this trend, 86% of RHNA units are in tracts with populations of cost burdened owners in this range (Table D-21). There are 46 lower income units, 20 moderate income units, and 19 above moderate income units in the tract where 56.5% of owner-occupied households are cost burdened. No above moderate income units are located in this tract. As shown in Table D-22, nearly half of RHNA units are in tracts where 20% to 40% of renters overpay for housing. As presented in Figure D-46, half of Hermosa Beach tracts on the western side of the City have cost burdened renter populations in this range. A larger proportion of units allocated to the lower income RHNA, 35%, are in the tract where 45.6% of renters experience cost burden compared to moderate (19.7%) and above moderate (22.2%) income units. While there are more lower income units in tracts with higher rates of cost burden, lower income units are not concentrated in these areas alone, nor are they exclusively placed in these tracts. Both tract 6210.01 and 6210.04 contain sites identified to accommodate moderate and mixed income units. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-93 Table D-21: Distribution of RHNA Units by Cost Burdened Owners (2021) Cost Burdened Owners (Tract) Lower Income Units Total Units <20% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 20-40% 303 86.8% 158 88.8% 53 73.6% 514 85.8% 40-60% 46 13.2% 20 11.2% 19 26.4% 85 14.2% 60-80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% >80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Table D-22: Distribution of RHNA Units by Cost Burdened Renters (2021) Cost Burdened Renters (Tract) Lower Income Units Total Units <20% 40 11.5% 65 36.5% 28 38.9% 133 22.2% 20-40% 188 53.9% 78 43.8% 28 38.9% 294 49.1% 40-60% 121 34.7% 35 19.7% 16 22.2% 172 28.7% 60-80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% >80% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-94 Figure D-45: Population of Cost Burdened Owners by Tract and Sites Inventory (2021) Source: HUD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-95 Figure D-46: Population of Cost Burdened Renters by Tract and Sites Inventory (2021) Source: HUD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-96 b. Overcrowding Regional Trend Overcrowding is defined as housing units with more than one person per room (including dining and living rooms but excluding bathrooms and kitchen). According to 2016-2020 ACS estimates, 11.2% of households in Los Angeles County are living in overcrowded conditions (Table D-23). About 16% of renter households are living in overcrowded conditions in the County, compared to only 5.7% of owner households. Similarly, 7.4% of renter households are severely overcrowded, with more than 1.5 persons per room, compared to only 1.6% of owners. According to 2015-2019 HUD CHAS data, there 203,320 large renter-occupied households with five or more persons, representing 11.3% of renters countywide. There are slightly more large owner households, 214,590, representing 14.1% of owners countywide. Table D-23: Overcrowded Households by Tenure – Los Angeles County (2020) Overcrowded (>1.0 persons per room) 87,325 5.7% 286,881 16.0% 374,206 11.2% 23,819 1.6% 133,699 7.4% 157,518 4.7% Total 1,534,472 100.0% 1,798,032 100.0% 3,332,504 100.0% As presented in Figure D-47 below, tracts with larger populations of overcrowded households in the region surrounding Hermosa Beach are most prevalent in the central and south County areas in and around the cities of Los Angeles, Compton, Hawthorne, South Gate, and parts of Long Beach. Coastal County areas, from Malibu to Ranchos Palos Verdes, are nearly all comprised of tracts with populations of overcrowded households below the statewide average of 8.2%. As discussed throughout this Assessment of Fair Housing Issues, coastal Los Angeles County areas also have smaller racial/ethnic minority populations, fewer LMI households, and higher median incomes compared to inland County areas (see Figure D-5, Figure D-17, and Figure D-22). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-97 Figure D-47: Regional Overcrowded Households by Tract (2020) Source: HUD AFFH Data Viewer (2020 HUD CHAS data), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-98 Local Trend Overcrowding is generally not an issue in the City. As shown in Table D-24, there are no severely overcrowded owner-occupied households in Hermosa Beach. Only 1.8% of renter-occupied households are severely overcrowded. Only 1.1% of owner households and 3.4% of renter households are overcrowded. While overcrowding is more prevalent amongst Hermosa Beach renters, a significantly smaller proportion are overcrowded compared the County (16%). The rate of overcrowding in all areas of the City is below the statewide average of 8.2%. According to the HCD Data Viewer 2.0, there are no tracts in Hermosa Beach where more than 5% of households are overcrowded. Table D-24: Overcrowded Households by Tenure (2020) Overcrowded (>1.0 persons per room) 48 1.1% 147 3.4% 195 2.3% Severely Overcrowded (>1.5 persons per room) 0 0.0% 76 1.8% 76 0.9% Source: 2016-2020 ACS (5-Year Estimates). Sites Inventory There are no RHNA sites in tracts where overcrowding is a prominent fair housing issue. c. Substandard Housing Regional Trend Incomplete plumbing or kitchen facilities can be used to measure substandard housing conditions. Incomplete facilities and housing age are estimated using the 2016-2020 ACS. In general, residential structures over 30 years of age require minor repairs and modernization improvements, while units over 50 years of age are likely to require major rehabilitation such as roofing, plumbing, and electrical system repairs. According 2016-2020 ACS estimates, shown in Table D-25, 1.6% of households in Los Angeles County lack complete kitchen facilities and 0.5% lack complete plumbing facilities. Incomplete facilities affect renter households more than owner households. Approximately 0.4% of owner households lack complete kitchen facilities and 0.3% lack complete plumbing facilities compared to 2.6% and 0.6%, respectively, amongst renter households countywide. Table D-25: Substandard Housing Conditions by Tenure – Los Angeles County (2020) Lacking complete kitchen facilities 6,186 0.4% 46,465 2.6% 52,651 1.6% Lacking complete plumbing facilities 3,884 0.3% 11,381 0.6% 15,265 0.5% Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-99 Source: 2016-2020 ACS (5-Year Estimates). Housing age can also be used as an indicator for substandard housing and rehabilitation needs. As stated above, structures over 30 years of age require minor repairs and modernization improvements, while units over 50 years of age are likely to require major rehabilitation. In the County, 85.3% of the housing stock was built prior to 1990, including 59.7% built prior to 1970 (Table D-27). Figure D-48 shows median housing age for cities and Census-designated places (CDPs) in the region surrounding Hermosa Beach. Manhattan Beach, Redondo Beach, and Hermosa Beach tend to have younger housing stocks compared to adjacent jurisdictions to the north, south, and east. The south County areas, including Long Beach, Compton, Lakewood, Lynwood, and South Gate, tend to have older housing stocks. Figure D-48: Regional Median Housing Age – Cities and CDPs (2020) Source: 2016-2020 ACS (5-Year Estimates). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-100 Local Trend There are no owner-occupied households in Hermosa Beach lacking complete kitchen or plumbing facilities (Table D-26). There are also no renter-occupied households in the City lacking complete plumbing facilities. There are 59 renter households, representing 1.4% of renters citywide, lacking complete kitchen facilities. Households lacking complete facilities are much less prominent in Hermosa Beach compared to the County, where 2.6% of renters lack complete kitchen facilities and 0.6% lack complete plumbing facilities. Table D-26: Substandard Housing Conditions by Tenure (2020) Lacking complete kitchen facilities 0 0.0% 59 1.4% 59 0.7% Lacking complete plumbing facilities 0 0.0% 0 0.0% 0 0.0% Source: 2016-2020 ACS (5-Year Estimates). Table D-27 shows housing stock age in the County, City, and Hermosa Beach tracts. Only 52% percent of housing units in the City were built in 1969 or earlier compared to 60% countywide. As discussed previously, units aged 50 and older are likely to require major rehabilitation. Another 29.7% of units in the City were built between 1970 and 1989. The remaining 18.6% of housing units in Hermosa Beach were constructed in 1990 or later, a larger proportion than in the County (14.7%). As shown in Figure D-49, tracts 6210.05, northwestern quarter, and 6211.02 , southeastern quarter, have older median housing ages compared to tracts 6210.01 and 6211.04. Nearly 66% of housing units in tract 6210.05 and 60% in tract 6211.02 were built prior to 1970 compared to 50% in tract 6210.01 and 39% in tract 6211.04 (Table D-27). Tract 6211.04 has the largest proportion of new housing units built in 1990 or later (24.9%). According to the HCD AFFH Data Viewer 2.0, the southwest section of the City, tract 6211.04, has a larger proportion of renter-occupied households compared to other tracts. As mentioned above, this tract has the largest proportion of new housing units built in 1990 or later. There are no tracts in Hermosa Beach where more than 2% of households lack complete plumbing facilities. Tract 6210.05 in the northwestern corner of Hermosa Beach is the only tract in the City where more than 2% of households lack complete kitchen facilities. This section of the City also has a higher rate of cost burdened owners, but a population of cost burdened renters consistent with the citywide trend (see Figure D-45 and Figure D-46). Table D-27: Housing Stock Age (2020) Tract/Jurisdiction 6210.01 50.0% 37.5% 12.5% 2,071 6210.05 65.7% 18.4% 16.0% 2,955 6211.02 59.5% 23.9% 16.5% 1,216 6211.04 38.6% 36.5% 24.9% 3,577 Hermosa Beach 51.7% 29.7% 18.6% 9,819 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-101 Tract/Jurisdiction Los Angeles County 59.7% 25.5% 14.7% 3,559,790 Source: 2016-2020 ACS (5-Year Estimates). Figure D-49: Median Housing Age by Tract (2020) Source: 2016-2020 ACS (5-Year Estimates). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-102 Figure D-50: Renter-Occupied Household Populations by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-103 Figure D-51: Units Lacking Complete Kitchen Facilities by Tract (2021) Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-104 d. Displacement Risk Regional Trends UC Berkley’s Urban Displacement project defines residential displacement as “the process by which a household is forced to move from its residence - or is prevented from moving into a neighborhood that was previously accessible to them because of conditions beyond their control.” As part of this project, the research has identified populations vulnerable to displacement (named “sensitive communities”) in the event of increased redevelopment and drastic shifts in housing cost. Vulnerability is defined based on the share of low income residents per tract and other criteria including: share of renters above 40%, share of people of color more than 50%, share of low income households severely rent burdened, and proximity to displacement pressures. Displacement pressures were defined based on median rent increases and rent gaps. Using this methodology, sensitive communities in the Los Angeles County region surrounding Hermosa Beach were identified throughout the central and south County areas. Sensitive communities are the most concentrated in the area spanning from Glendale to the north, throughout the City of Los Angeles, Inglewood to the west, Compton to the south, and El Monte to the east. There are significantly fewer sensitive communities in the coastal County cities from Malibu to Ranchos Palos Verdes. As mentioned previously, this area, which includes Hermosa Beach, also has smaller non-White and LMI household populations and higher median incomes compared to inland County areas (see Figure D-5, Figure D-17, and Figure D-22). TCAC areas of high segregation and poverty and R/ECAPs are also more prevalent in the central and south County areas where sensitive communities are concentrated (see Figure D-19). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-105 Figure D-52: Regional Sensitive Communities at Risk of Displacement by Tract (2020) Source: HCD AFFH Data Viewer (UC Berkeley Urban Displacement Project, 2020), 2023. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-106 Local Trends As shown in Figure D-52 above, there are no tracts that have been identified as sensitive communities in Hermosa Beach. The closest sensitive communities are located in Torrance and Lawndale east of the City. There are also no sensitive communities in the adjacent jurisdictions of El Segundo, Manhattan Beach, and Redondo Beach. Displacement of low-income households can occur through the expiration of affordability restrictions on assisted low-income housing, escalation of market rents, or demolition of existing rental units. As noted in the Needs Assessment of this Housing Element, there are no low-income rental projects at risk of conversion to market rate during the 2021-2031 period. As discussed previously, vulnerability is measured based on several variables including: share of renters exceeding 40%, share of people of color exceeding 50%, share of low income households severely rent burdened, and proximity to displacement pressures. Displacement pressures were defined based on median rent increases and rent gaps. Hermosa Beach has an owner population of 50.1% with a non-White population of only 25%. In comparison, only 46% of households are owners and 74.1% of the population belongs to a racial/ethnic minority group countywide. Over the past decade, both the owner population and non-White population have increased (from 45.6% and 19.6%, respectively, during the 2006-2010 ACS). As presented in Figure D-53, Asian householders are the most likely to own their home (67.7%), followed by Hispanic/Latino householders (55.7%), and White householders (50.3%). Black/African American householders in the City are significantly less likely to own their home. Only 9.6% of Black/African American householders are owners. Fewer householders of some other race (30.5%) and American Indian/Alaska Native householders (32.8%) are homeowners. Figure D-53: Housing Tenure by Race of Householder (2020) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-107 Source: 2016-2020 ACS (5-Year Estimates). Figure D-54 shows the median contract rent in Hermosa Beach and Los Angeles County from 2009 to 2020. During this period, the median contract rent in Hermosa Beach increased 24.8% (from $1,743 in 2010 to $2,176 in 2020), a smaller increase than 39.1% countywide (from $1,017 to $1,415). While rental prices have increased more countywide, median contract rent prices in Hermosa Beach remain higher than rental prices throughout the County. As presented above, increasing rental prices in the City are more likely to disproportionately affect people of color, specifically Black/African American households, households of some other race, and American Indian/Alaska Native households. Figure D-54: Median Contract Rent (2009-2020) Source: 2006-2010 through 2016-2020 ACS (5-Year Estimates). e. Homelessness Regional Trend The Los Angeles Homeless Services Authority (LAHSA) estimates there were 69,144 persons experiencing homelessness in the Los Angeles County, based on the 2022 Greater Los Angeles Homeless Point-in-Time (PIT) Count. Figure D-55 shows the Los Angeles County homeless populations from 2017 to 2022. As of 2022, 70% of the homeless population is unsheltered and 30% is sheltered. The proportion of sheltered individuals has increased slightly since 2017, when 27.2% of the population experiencing homelessness was sheltered. The homeless population has increased over 25% since 2017, and 4.1% since 2020. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-108 As shown in Table D-28, of the individuals experiencing homelessness, 3.5% were transitional age youths aged 18 to 24 and 0.2% were unaccompanied minors under the age of 18. Another 5.7% of the homeless population were veterans and 41.3% were experiencing chronic homelessness. A household is considered chronically homeless if any of its members have (1) a long-term disabling condition; and (2) been homeless for 12 months or more within the last 3 years as specified by HUD. There are many emergency shelters in Los Angeles County. Emergency shelters are most prevalent in the central County areas such as the City of Los Angeles. Figure D-55: L.A. County Population of Persons Experiencing Homelessness (2017-2022) Note: LA County data includes the Los Angeles Continuum of Care, and the cities of Pasadena, Glendale, and Long Beach. Source: Los Angeles County Homeless Services Authority (LAHSA) Greater Los Angeles Homeless Count – Los Angeles County, 2017-2022. Table D-28: Characteristics of Persons Experiencing Homelessness – LA County (2022) Sheltered Unsheltered Total Persons 20,596 48,548 69,144 -- Total Households 14,248 47,586 61,834 -- Individuals (those not in family units) 11,153 47,098 58,251 -- Transitional Age Youth (18-24)1 994 1,073 2,067 3.5% Unaccompanied Minors (under 18)1 116 5 121 0.2% Family Households (at least 1 child under 18) 3,095 488 3,583 -- All Family Members 9,443 1,450 10,893 -- Veterans2 929 3,013 3,942 5.7% People Experiencing Chronic Homelessness (all)2 4,992 23,584 28,576 41.3% Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-109 Sheltered Unsheltered Notes: 1. Percent of individuals 2. Percent of total persons Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-110 Figure D-56: Regional Emergency Shelter Locations (2020) Source: HCD AFFH Data Viewer (HUD 2020), 2022. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-111 As of November 2023, LAHSA recently released the results of the 2023 Los Angeles Continuum of Care (CoC) survey. The CoC covers all of Los Angeles County except Pasadena, Glendale, and Long Beach. The 2023 survey estimates the population of persons experiencing homelessness is 71,320, 26.7% of whom were sheltered and 73.3% unsheltered. Table D-29 compares the population of persons experiencing homeless by race/ethnicity to the Countywide distribution. The Black/African American population is the most overrepresented in the homeless population. The American Indian/Alaksa Native population, Native Hawaiian and other Pacific Islander population, and population of multiple races are also slightly overrepresented in the homeless population. Table D-29: Population of Persons Experiencing Homelessness by Race/Ethnicity – Los Angeles County (2021/2023) Race/Ethnicity Hispanic/Latino 30,350 42.6% 4,878,619 48.7% Not Hispanic/Latino 40,970 57.4% 5,141,016 51.3% American Indian/Alaksa Native 723 1.0% 19,571 0.2% Asian 1,212 1.7% 1,458,140 14.6% Black/African American 22,606 31.7% 766,190 7.6% Native Hawaiian/Other Pacific Islander 389 0.5% 21,433 0.2% White 13,826 19.4% 2,550,832 25.5% Multiple Races 2,214 3.1% 281,399 2.8% Source: LAHSA 2023 Greater Los Angeles Homeless Count – Los Angeles County; 2017-2021 Acs (5-Year Estimates). According to the 2023 LAHSA Homeless Count, 27% of persons experiencing homelessness also have substance abuse disorders, 2% have HIV/AIDs, 25% struggle with serious mental illness, 10% have a developmental disability, and 19% have a physical disability. Local Trends According to the LAHSA Point-In-Time (PIT) count for Hermosa Beach, in 2022 there were 34 persons experiencing homelessness in the City in 2022, all of whom were unsheltered. Since 2016, the population of persons experiencing homelessness in the City has increased. In 2016, there were only 20 people counted experiencing homelessness in Hermosa Beach, including six who were sheltered. In 2022, most persons experiencing homelessness in Hermosa Beach were living in vans (50%). Another 27% were on the street, 18% were in cars, and 5% were in RVs or campers. As shown above, there is one emergency shelter in Hermosa Beach. This shelter has a total of 20 beds. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-112 Figure D-57: Hermosa Beach PIT Homeless Population (2022) Source: LAHSA Homeless Count by Community/City – Hermosa Beach, 2022. According to LAHSA 2022 Homeless Count data at the tract-level, tract 6211.04 had the largest population of persons experiencing homelessness (25 persons) compared to other tracts in Hermosa Beach. One person was counted in tract 6210.02, six in tract 6210.04, and two in tract 6211.02. Tract 6211.04 encompasses the southwest quadrant of the City. The emergency shelter is located in the northwest quadrant of the City in tract 6210.05. Tract 6211.04 is generally bound by Pier Avenue to the north and the Pacific Coast Highway to the east which includes much of Downtown Hermosa Beach, adjacent to the Hermosa Beach Pier (extending along Hermosa Avenue and Pier Avenue). Line 109 of the Beach Cities Transit routes has one stop in Hermosa Beach (Pier Avenue) and connects to Riviera Village, Downtown Manhattan Beach, Downtown El Segundo, Douglas Green Line Station, The Pointe, Plaza El Segundo, Aviation/LAX Green Line station, and the LAX Bus Center. The Torrance Transit Line 13 also operates between Redondo Beach Pier and Artesia A (Blue) Line Station, serving major destinations that include Hermosa Beach Pier, South Bay Galleria, Harbor Gateway Transit Center, Dignity Health Sports Park, and California State University, Dominguez Hills. LA Commuter Express shuttles provide one-way limited stop transit service to job centers during commute hours. Commuter Express Line 438 provides morning commute service from the beach cities to Downtown LA and Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-113 evening service from Downtown to the beach cities. Additionally, under the City’s 2018 Homelessness Plan Supporting Action #1f includes local funds to support response efforts and special circumstances. This fund can cover items such as miscellaneous services and materials, motel vouchers, transit vouchers, laundry services, hygiene products, etc. Although the 2018 Homelessness Plan stated a 5-year timeline, the programs are ongoing and continue forward until such time that the Plan is updated. According to the City’s 2018 Homelessness Plan, The demographics of Hermosa Beach’s homeless population appear to be consistent with that of other beach cities in the South Bay, and the City’s total homeless population is among the lowest in the region on a per- capita basis. Nevertheless, according to information gleaned through interactions with the City’s Police Department, PATH outreach workers and the faith-community, Hermosa Beach’s homeless population may be categorized as diverse and displaying varying needs for service. • Chronically homeless individuals often have a disabling condition, and have been homeless for a year or more, or have had at least four episodes of homelessness in the past three years. These individuals are typically well known to HBPD, businesses, and the faith community, and are often the source of calls received by HBPD. They typically have co-occurring substance abuse and mental illness, and most have been unable to take advantage of services when they are offered. Several individuals are long-time, well-known local residents; others are more recent arrivals in Hermosa Beach. • Recently homeless people have lost their housing during the past year for reasons such as losing a job, medical bills, marital breakdown, or a property owner’s decision to go out of the rental business. They may be able to benefit from emergency rental assistance or other programs available through Harbor Interfaith or PATH. These individuals may be known to the school district if their children are enrolled in local schools, and may also be known to faith groups that offer laundry and meals to people who are homeless. Most people in this category are local residents who want to stay in the area for school, a job, or community accessibility, and some live in their vehicles. • Transients often find their way to Hermosa Beach, especially in the summer months, seeking beachside living. Some of these people are youth, and some may be willing to return to their home outside of Los Angeles County or out of state if resources are available. • People at imminent risk of homelessness, including families, often use services such as laundry, meals, and food pantries offered by the faith community. Intervention with these people prior to homelessness will help prevent additional people from becoming homeless in the community. Through regional service providers such as PATH and the Los Angeles Homeless Services Authority, Hermosa Beach has access to shelter beds, when they are available. However, there is a significant shortage of shelter beds available in Los Angeles County and wait lists for housing are extremely long. The City Council has approved $20,000 in the FY2022-2023 budget to use for securing temporary housing for people experiencing homelessness in Hermosa Beach. Hermosa Beach Police also have worked with other agencies in the past Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-114 to secure shelter beds for people experiencing homelessness. The City also implements outreach and engagement efforts under the Homelessness Plan with the following organizations: South Bay Cities Council of Governments (SBCCOG), Harbor Interfaith Services (HIS), People Assisting the Homeless (PATH), Los Angeles County Department of Mental Health's Mental Evaluation Team, 1736 Family Crisis Center, South Bay Coalition to End Homelessness (SBCEH), Hermosa Beach Chamber of Commerce, faith-based organizations, Hermosa Beach Community non-profit organizations, Hermosa Beach Neighborhood Watch, Beach Cities Health District, Hermosa Beach City School District, Los Angeles County Library, Los Angeles County Department of Beaches and Harbors, Los Angeles County Fire Department, Los Angeles County Lifeguard, and City agencies (Elected and appointed officials, City Manager's office, Hermosa Beach Police Department, Community Services, Community Development/Code Enforcement, Public Works, Community Resources (Parks and Senior Center), and the Emergency Operations Center). In 2022, the City of Hermosa Beach began hosting Housing Initiative Courts on a monthly basis, to provide people experiencing homelessness an opportunity to avoid prosecution on non-violent misdemeanor charges in exchange for accepting judge-mandated services that can eventually lead to placement in housing. In 2023, the City also launched a grant-funded Mobile Crisis Response Pilot Program to help people experiencing homelessness and mental health crises. This supports a civilian team that responds to non- emergency and non-medical situations with individuals experiencing homelessness and in need of mental health services. This mobile crisis response team is trained to de-escalate situations and work with Harbor Interfaith Services, which assists with homelessness. Outreach efforts and services for persons experiencing homelessness are outlined in Table II-2, Affirmatively Furthering Fair Housing Summary Actions, of this Housing Element. 6. Local Knowledge and Other Relevant Factors a. Zoning and Housing Type The City’s Zoning Map is presented in Figure D-58. The northern and eastern areas are predominantly zoned for single-family residential uses (R-1). The northernmost section of the City, north of 27th Street, the area along Hermosa Avenue north of 16th Street, and the area south of Pier Avenue between Valley Drive and the PCH have larger pockets zoned for two-family residential uses (R-2). The southwest section of the City has the largest areas zoned for multiple family residential uses (R-3). As discussed above, the southwest corner of the City also has the largest proportion of renter-occupied households (see Figure D-50). The southeastern corner of the City is comprised of nearly all R-1 zoning designations and has the smallest proportion of renters compared to other Hermosa Beach tracts. Consistent with zoning designations, the western side of the City has larger shares of housing structures with two or more units compared to the eastern side (Figure D-59). The western side of the City also contains block groups where more than 25% of households are LMI. All block groups on the eastern side of the City have LMI household populations below 25% (see Figure D-18). As discussed previously, the areas north of Pier Avenue and Aviation Boulevard have larger populations of persons living alone and elderly adults (see Figure D-15 and Figure D-16). Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-115 There are two mobile home parks in the City, one in tract 6210.05 (Marineland MHP) and one in tract 6211.04 (Hermosa Beach RV Court). According to the California Housing Partnership Affordable Housing Map and Benefits Calculator, there are no state- or federally-subsidized affordable homes in Hermosa Beach.19 19 California Housing Partnership – Affordable Housing Map and Benefits Calculator. Accessed May 2023. https://chpc.net/datatools/affordablehomes/. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-116 Figure D-58: Hermosa Beach Zoning Map (2021) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-117 Figure D-59: Structures with Two or More Units by Tract (2021) Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-118 Source: HCD AFFH Data Viewer 2.0 (2017-2021 ACS), 2023. b. Lending Practices and Home Loan Trends A key aspect of fair housing choice is equal access to credit for the purchase or improvement of a home, particularly in light of the recent lending/credit crisis. In the past, credit market distortions and other activities such as “redlining” were prevalent and prevented some groups from having equal access to credit. The Community Reinvestment Act (CRA) in 1977 and the subsequent Home Mortgage Disclosure Act (HMDA) were designed to improve access to credit for all members of the community and hold the lender industry responsible for community lending. Under HMDA, lenders are required to disclose information on the disposition of home loan applications and on the race or national origin, gender, and annual income of loan applicants. Table D-30 summarizes home purchase and improvement loan applications in Los Angeles County for 2021. Under the Home Mortgage Disclosure Act (HDMA), lending institutions are required to disclose information on the disposition of loan applications along with the income, gender, and race of loan applicants. Overall, 671,854 households applied for loans for homes in Los Angeles County in 2021. Of the applications for home purchase loans, 63% were approved and 7.2% were denied. An additional 29.4% were withdrawn by the applicant, closed for incompleteness, or purchased. Home improvement loans were denied at the highest rate of 33%. Table D-30: Home Purchase and Improvement Loan Applications – LA County (2021) Loan Type Denied Other Total Home purchase 63.4% 7.2% 29.4% 132,322 Home improvement 47.6% 33.2% 19.2% 22,150 Refinancing 59.0% 9.6% 31.4% 310,635 Cash-out refinancing 60.1% 10.3% 29.6% 187,576 Other purpose 50.6% 30.5% 18.9% 17,361 Not applicable 9.4% 0.7% 89.8% 1,810 Note: Other = Withdrawn by applicant, closed for incompleteness, purchased loan. Source: FFIEC Home Mortgage Disclosure Act Data (HMDA) – Los Angeles County, 2021. Table D-31 shows home loan applications in Los Angeles County in 2021 by race and ethnicity of applicants. Countywide, applicants of two or more minority races (19%), American Indian/Alaska Native applicants (18.2%), Native Hawaiian or other Pacific Islander applicants (15.9%), and Black or African American applicants (15.7%) were denied at the highest rates. Hispanic/Latino applicants were denied at a higher rate (13.6%) compared to non-Hispanic applicants (10.8%). Asian applicants, joint race applicants, joint ethnicity applicants, and applicants of an unknown race were the only racial/ethnic groups with denial rates below 10.6%, the average for all loan applications. White applicants also had a lower denial rate of 11% compared to most racial/ethnic minority groups. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-119 Table D-31: Home Loan Applications by Race/Ethnicity – LA County (2021) Denied Other Total 2 or more minority races 54.7% 19.0% 26.3% 1,092 American Indian or Alaska Native 52.1% 18.2% 29.7% 3,078 Asian 67.5% 10.4% 22.1% 88,115 Black or African American 59.8% 15.7% 24.5% 32,425 Joint 70.6% 8.5% 21.0% 15,329 Native Hawaiian or Other Pacific Islander 59.0% 15.9% 25.1% 1,796 Race Not Available 45.2% 9.5% 45.3% 226,397 White 67.2% 11.0% 21.8% 303,463 Hispanic or Latino 62.8% 13.6% 23.7% 130,061 Not Hispanic or Latino 66.8% 10.8% 22.4% 323,672 Joint 69.2% 9.9% 20.8% 17,198 Note: Other = Withdrawn by applicant, closed for incompleteness, purchased loan. Source: FFIEC Home Mortgage Disclosure Act Data (HMDA) – Los Angeles County, 2021. C. Sites Inventory AB 686 requires a jurisdiction’s site inventory “…be used to identify sites throughout the community, consistent with…” its duty to affirmatively further fair housing. The number of units, location and assumed affordability of identified sites throughout the community (i.e., lower, moderate, and above moderate income RHNA) relative to all components of the assessment of fair housing was integrated throughout the discussion in the fair housing assessment section. The City’s sites inventory is presented in Figure D-60 and shown by site, tract, and AFFH variable in Table D-32. For the purposes of this Assessment of Fair Housing, the sites analysis is further discussed with respect to the four Hermosa Beach tracts: 6210.01 (northeast), 6210.05 (northwest), 6211.02 (southeast), 6211.04 (southwest). Hermosa Beach is an affluent area with high access to opportunities and resources. All areas of the City generally have low levels of disproportionate housing needs such as cost burden, overcrowding, and substandard housing conditions. Further, the City’s RHNA strategy is distributed throughout Hermosa Beach and is not concentrated in a single tract or block group alone. Sites identified to meet the RHNA promote mixed income communities and new housing opportunities for lower income households in highest resource areas. In addition, the Housing Sites Inventory consists primarily of underutilized sites occupied by non-residential uses; therefore, there is not a substantial displacement risk of in these areas. However, if redevelopment is proposed on properties with existing housing units, displacement mitigation strategies will be required consistent with State law. The RHNA strategy does not exacerbate conditions related to fair housing in Hermosa Beach. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-120 1. Northeast Hermosa Beach (Tract 6210.01) Tract 6210.01 is bound by the north and east City boundaries, Valley Drive to the west, and Pier Avenue/Aviation Boulevard to the south. This area is zoned primarily for single-family residential uses (R-1), with smaller pockets zoned for limited multiple family residential (R- 2B), multiple family residential (R-3), and two-family residential (R-2) uses. Non-residential zones in this section of the City include general and highway commercial (C-3), specific plan areas for both residential and commercial uses (SPA), and open space (OS). A total of 172 RHNA units over six sites are located in tract 6210.01, including 121 lower income units, 35 moderate income units, and 16 above moderate income units. Like all Hermosa Beach tracts, tract 6210.01 is a highest resource area and an RCAA. RHNA sites in this section of the City are in a block group with a non-White population of 26.5%, compared to 25% citywide, and an LMI household population of 14%, compared to 22.3% citywide. While this area has a smaller LMI household population compared to Hermosa Beach as a whole, a larger proportion of renters are cost burdened in this tract (45.6%) compared to households citywide (27.8%) and other Hermosa Beach tracts. As discussed in this Assessment of Fair Housing, this tract has a larger population of single-person households (householder living alone) and elderly adults compared to the southern tracts. Elderly populations are more likely to earn fixed or limited incomes and experience cost burden. Further, cost burden is based on annual earnings alone, which does not include Social Security payments, pensions, child support, public assistance, annuities, money derived from rental properties, interest, and dividends. As discussed previously, nearly 57% of households with a householder aged 65 or older in tract 6210.01 have household incomes, including annual earnings and other sources of income, of over $100,000. Cost burden is likely exaggerated in this tract due to the population of elderly adults residing in this tract. Tract 6210.01 also has a smaller proportion of cost burdened owners (23.8%) compared to the City (25.2%). The City’s RHNA strategy identifies sites that can accommodate both lower and moderate income units in tract 6210.01, promoting new housing opportunities for households of various income levels. The sites selected to meet the RHNA do not exacerbate conditions related to fair housing in northeast Hermosa Beach. 2. Northwest Hermosa Beach (Tract 6210.05) Tract 6210.05 is bound by the coast to the west, the northern City boundary, Valley Drive to the east, and Pier Avenue to the south. Tract 6210.05 is characterized by a mix of R-1 and R-2 zoning designations with smaller areas zoned for R-2B, R-3, and limited single-family residential (R-1A) uses. Non-residential zoning designations in tract 6210.05 include OS, SPA, limited business and residential (C-1), general commercial (C-2), and mobile home park (MHP). There are five RHNA sites in this tract with a capacity for 85 units (46 lower income, 20 moderate income, and 19 above moderate income). Tract 6210.05 is a highest resource area and has been identified as an RCAA. Only 18.5% of the population in this area belongs to a racial or ethnic minority population. Comparatively, 25% of the population citywide is non-White. This tract does contain block groups with larger LMI household populations compared to the citywide average. Sites 2, 3, 4, and 5 are in a block group with an LMI household population of 35%, while site 1 is in a block group with an LMI household population of 22%. Site 1 has a capacity of 7 units, Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-121 all of which are allocated towards the lower income RHNA. Tract 6210.05 has a larger proportion of cost burdened renters compared to the southern tracts and a larger proportion of cost burdened owners compared to all City tracts. As discussed above, this tract has the largest population of persons living alone (28.2%) and persons aged 65 and older (21.2%) compared to other Hermosa Beach tracts. This area also contains block groups with lower median incomes. According to the HCD Data Viewer 2.0 based on the 2017-2021 ACS, tract 6210.05 has a median income of $134,032 compared to $150,417 in tract 6210.01, $168,977 in tract 6211.02, and $143,469 in tract 6211.04. One of the two mobile home parks in the City, Marineland MHP (60 units) is located in this tract. While the median household income in this tract is lower compared to other Hermosa Beach tracts, it is significantly higher than the countywide median of $76,367. While cost burden is heightened in this tract, this is likely due to the elderly population with fixed or limited incomes. As discussed above, cost burden is based on annual earnings alone, and does not include Social Security payments, pensions, child support, public assistance, annuities, money derived from rental properties, interest, and dividends. Nearly 45% of households with a householder aged 65 or older earn more than $100,000 and only 9% earn less than $25,000. Overall, like Hermosa Beach as a whole, tract 6210.05 is an affluent area with highly accessible opportunities and resources. Further, the RHNA strategy allocates both lower and moderate income units in this tract, ensuring units of a single income level are not concentrated in this area alone. The City’s RHNA strategy in northwest Hermosa Beach does not exacerbate existing fair housing issues. 3. Southeast Hermosa Beach (Tract 6211.02) Tract 6211.02 is bound by the south and east City boundaries, Aviation Boulevard to the north, and the PCH to the west. Tract 6211.02 is primarily zoned for R-1 uses with smaller pockets zoned for R-2, R-2B, R-3, SPA, OS, C-3, and residential-professional (R-P). The City has identified eight RHNA sites with a capacity of 133 units, including 40 lower income units, 65 moderate income units, and 28 above moderate income units. Tract 6211.02 has been identified as a highest resource area and RCAA. In the area where RHNA sites are located, 28% of the population belongs to a racial or ethnic minority group 19.8% of renters are cost burdened, and 34.2% of owners are cost burdened. This area has a slightly larger non-White population and population of cost burdened owners compared to the City (25% and 25.2%, respectively). According to 2022 HUD CHAS data based on the 2015-2019 ACS, 27.8% of renters citywide are cost burdened. Sites 14, 15, 19, and 21 are in block groups where 16% of households are LMI and sites 23, 27, 28, and 29 are in block groups where 15% of households are LMI. Tract 6211.02 has the smallest renter (32.9%) and cost burdened renter (19.8%) populations compared to other Hermosa Beach block groups. Despite tract 6211.02 being zoned primarily for single-family residential uses that are typically more suitable for above moderate income units, the City’s RHNA strategy includes sites that can accommodate 22 lower income and 65 moderate income units. The City identifies a mix of sites suitable for households of variable income levels in this section of the City. RHNA sites in tract 6211.02 would not exacerbate conditions related to fair housing. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-122 4. Southwest Hermosa Beach (Tract 6211.04) Tract 6211.04 is in the southwest corner of Hermosa Beach and is bound by the coast to the west, the southern City boundary, the PCH to the east, and Pier Avenue to the north. Unlike other areas in Hermosa Beach, there is only one small section of tract 6211.04 along Ardmore Avenue that is zoned R-1. Most of the area west of Valley Drive is zoned R-3 and most of the area between Valley Drive and the PCH is zoned R-2. Other zoning designations in tract 6211.04 include C-1, C-2, SPA, OS, R-P, C-3, residential planned development (RPD), and light manufacturing (M-1). There are 10 RHNA sites in tract 6211.04 with a capacity of 209 units (142 lower income, 58 moderate income, and 9 above moderate). Like all tracts in the City, tract 6211.04 is a highest resource area and RCAA. Only 20.2% of the population where RHNA units are located belongs to a racial/ethnic minority group and only 10% of households are LMI. Comparatively, 25% of the population citywide is non- White and 22.3% are LMI households. Tract 6211.04 has larger populations of cost burdened renters and owners (33.9% and 37.7%) compared to the City as a whole (27.8% and 25.2%). Consistent with zoning designations, this tract has the largest renter population of 60.2% compared to other tracts in the City. This tract generally has small populations of interest (racial/ethnic minority populations, persons with disabilities, LMI households, etc.) and low rates of disproportionate housing needs (cost burden, overcrowding, etc.). This tract also has the highest proportion of new housing units built in 1990 or later. Only 38.6% of housing units in this tract were built prior to 1970 compared to 52% citywide. Like the entirety of Hermosa Beach, tract 6211.04 is an affluent area with few fair housing issues and high access to opportunities. The RHNA strategy distributes both lower and moderate income units throughout the City including in tract 6211.04, ensuring sites that can accommodate affordable housing are not concentrated in a single area of the City. RHNA sites in tract 6211.04 promote mixed income communities, 142 lower income units and 58 moderate income units, and provide new housing opportunities for lower income households in high resource areas. The City’s RHNA strategy in tract 6211.04 does not exacerbate existing fair housing issues. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-123 Table D-32: Distribution of RHNA Sites and Units by Tract and AFFH Variable Tract/Site # of HHs in Tract Total Capacity (Units) % Non- White % LMI HHs* TCAC Opp. Cat. % Overpay Renter HH % Overpay Owner HH RCAA? Lower Moderate 12) 1601 Pacific Coast Highway (4185-011-061) 96 64 16 16 26.5% 14% Highest 45.6% 23.8% Yes 13) 1100 Pacific Coast Highway (4185-011-039) 14 14 0 0 26.5% 14% Highest 45.6% 23.8% Yes 16) 1021 and 1035 AVIATION (4185-014-001, 4185-014- 015) 8 0 8 0 4 0 4 0 7 0 7 0 6210.05 2,460 85 46 20 19 18.3% 22% - 35% Highest 34.0% 56.5% Yes 44 44 0 0 18.3% 35.0% Highest 34.0% 56.5% Yes 16 0 6 10 18.3% 35.0% Highest 34.0% 56.5% Yes 6211.02 1,231 133 40 65 28 28.0% 15% - 16% Highest 19.8% 34.2% Yes 16 0 16 0 28.0% 16.0% Highest 19.8% 34.2% Yes 6 0 6 0 28.0% 16.0% Highest 19.8% 34.2% Yes Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-124 Tract/Site HHs in Tract Capacity (Units) % Non- White % LMI HHs* TCAC Opp. Cat. Overpay Renter HH Overpay Owner HH RCAA? Lower Moderate 30) 8, 18, 26 Pacific Coast Highway and 824 1st Street (4186-031-001, 002, -003, -102, -036) 18 18 0 0 28.0% 15.0% Highest 19.8% 34.2% Yes 6211.04 3,217 209 142 58 9 20.2% 10% Highest 33.9% 37.7% Yes * Sites within the same tract may be located in different block groups. LMI household populations are estimated at the block group level and may vary between block groups. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-125 Figure D-60: Sites Inventory Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-126 D. Identification and Prioritization of Contributing Factors Contributing factors to fair housing issues. Under the Federal consolidated planning process, the Analysis of Impediments (AI) to Fair Housing Choice is the primary tool for addressing fair housing issues. The City of Hermosa Beach was a participating city with the County of Los Angeles in the preparation of the 2018 AI. Based on extensive analysis of housing and community indicators, and the input of residents, a list of impediments to fair housing choice was developed. 1. Los Angeles County Analysis of Impediments Appendix D includes a summary of the contributing factors to fair housing issues pertaining specifically to the Urban County and the Housing Authority of Los Angeles County (HACoLA) service areas, which includes Hermosa Beach. These items are prioritized according to the following criteria: 1. High: Impediments/Contributing factors that have a direct and substantial impact on fair housing choice, especially in R/ECAP areas, affecting housing, those impacting persons with disabilities, and are core functions of HACoLA or the Community Development Commission (CDC). 2. Moderate: Impediments/ Contributing factors that have a direct and substantial impact on fair housing choice, especially in R/ECAP areas, affecting housing, those impacting persons with disabilities, and are core functions of HACoLA or the CDC, but the CDC or HACoLA may only have limited capacity to make a significant impact; or may not be within the core functions of HACoLA or the CDC. 3. Low: Impediments/Contributing factors that may have a direct and substantial impact on fair housing choice but are not within the core functions of HACoLA or the CDC or not within the capacity of these organizations to make significant impact, or not specific to R/ECAP neighborhoods, or have a slight or largely indirect impact on fair housing choice. The impediments/contributing factors identified and included in Appendix D are in relation to the fair housing issues listed below. The prioritization of these contributing factors relates to the ability of the CDC and HACoLA to address the fair housing issues. A low priority does not diminish the importance of the factor in the Urban County or HACoLA service areas but reflects the priority in addressing issues of fair housing. • Segregation • Racially or ethnically concentrated areas of poverty (R/ECAPs) • Disparities in Access to Opportunity • Disproportionate Housing Needs • Discrimination or violations of civil rights laws or regulations related to housing As a participating city in the Los Angeles County CDBG program, Hermosa Beach has access to fair housing outreach, education, and counseling on housing discrimination complaints. The City will continue to advertise the fair housing program through placement Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-127 of fair housing service brochures at the public counter, at the Senior Center and on the City website. Apartment owners and managers are provided with current information about fair housing issues, rights and responsibilities. The Apartment Association of Greater Los Angeles conducts seminars on State, Federal and local Fair Housing laws and compliance issues. In addition, the City will: • Ensure that all development applications are considered, reviewed, and approved without prejudice to the proposed residents, contingent on the development application’s compliance with all entitlement requirements. • Accommodate persons with disabilities who seek reasonable waiver or modification of land use controls and/or development standards pursuant to procedures and criteria set forth in the applicable development regulations. • Work with the County to implement the regional Analysis of Impediments to Fair Housing Choice and HUD Consolidated Plan. • Facilitate public education and outreach by posting informational flyers on fair housing at public counters, libraries, and on the City’s website. • Conduct public meetings at suitable times, accessible to persons with disabilities, and near public transit. Resources will be invested to provide interpretation and translation services when requested at public meetings when feasible. • Encourage community and stakeholder engagement during development decisions. 2. Contributing Factors a. Lack of Fair Housing Testing, Education, and Outreach The City lacks information on fair housing law and discrimination complaint filing procedures on the City website. Current outreach practices may not provide sufficient information related to fair housing, including federal and state fair housing law, and affordable housing opportunities. Cost burdened households throughout the City may be unaware of affordable housing opportunities. As part of the Urban County program, HRC serves Hermosa Beach under contract with LACDA. HRC’s contract with LACDA does not include reporting fair housing records by participating jurisdiction. Service records may reveal gaps in fair housing testing, education, and outreach. A majority of fair housing discrimination cases in Los Angeles County were filed on the basis of disability. While HRC records are not available for Hermosa Beach, the City may lack sufficient education and outreach related to reasonable accommodations and ADA laws based on the proportion of complaints related to disability status countywide. Contributing Factors • Lack of fair housing service records • Lack of fair housing testing • Lack of monitoring Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-128 • Lack of targeted outreach Priority Level High b. Substandard Housing Conditions While the City does not have a large proportion of households lacking complete kitchen or plumbing facilities, approximately 81% of housing units are aged 30 years or older, including 52% aged 50 years or older, and may require minor or major rehabilitation. Tracts 6210.05 and 6211.02 have the highest concentration of older housing units, but aging housing units are prevalent citywide. Contributing Factors • Age of housing stock • Cost of repairs or rehabilitation Priority Level Low c. Disparities in Disproportionate Housing Needs Racial/ethnic minority populations represent only 25% of the population according to the 2016-2020 ACS. However, Asian, American Indian, and Hispanic households are significantly more likely to experience housing problems including cost burden. The American Indian/Alaska Native and Asian populations also have poverty rates of 12.2% and 10%, respectively, compared to only 4.2% citywide. The Black/African American population in the City has a median household income of $86,056, while all other racial/ethnic groups have median household incomes exceeding $139,000. In the City, Black/African American householders, American Indian/Alaska Native householders, and householders of some other race (race other than those included in the ACS) are significantly less likely to own their homes compared to White, Asian, and Hispanic/Latino householders. Contributing Factors • Unaffordable rental prices • Availability of affordable housing • Private discrimination Priority Medium Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-129 d. Lack of Affordable Housing and Housing Mobility Hermosa Beach’s lack of affordable housing has a disproportionate impact on low- and moderate-income households who are more likely to be households of color. As such, Hermosa Beach lacks racial and ethnic diversity relative to the County overall. Racial/ethnic minority populations are also more likely to experience housing problems, such as cost burden and overcrowding, and have reduced access to opportunities, such as employment opportunities and better environmental conditions, compared to White populations. Additionally, Hermosa Beach is generally an affluent community with higher income earners. the lack of affordable housing in Hermosa Beach limits housing mobility for lower income households, including households who may work in Hermosa Beach but cannot afford to live in the City. Contributing Factors • High land, rental, and ownership housing costs • Availability of affordable housing Priority High 3. Conclusion This analysis indicates that the primary barrier to fair housing in the city is high housing cost, which has the effect of limiting access by lower-income households to the high opportunities and resources available in Hermosa Beach. There is no evidence to suggest that discrimination against racial groups or persons with disabilities is a major issue. The Housing Policy Plan includes several programs intended to encourage and facilitate multi-family and mixed-use development to accommodate low- and moderate-income housing, and also encourage the provision of accessory dwelling units, which can expand affordable housing opportunities for lower-income persons such as care-givers, household employees and others working in service occupations. Program 12 describes actions the City will take to affirmatively further fair housing and address any issues of housing discrimination that may arise. Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-130 Racial Characteristics – Hermosa Beach Source: California Department of Housing and Community Development, AFFH Data Viewer, 2021 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-131 Racially/Ethnically Concentrated Areas of Poverty – Hermosa Beach Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-132 Poverty Status – Hermosa Beach Source: California Department of Housing and Community Development, AFFH Data Viewer, 2021 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-133 Population with a Disability – Hermosa Beach Source: California Department of Housing and Community Development, AFFH Data Viewer, 2021 Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 Housing Element Technical Report Adopted December 21, 2021 / August 8, 2023 CERTIFIED August 1, 2024 Revised January, May, June 2024 D-134 TCAC/HCD Opportunity Map Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 1 PROPOSED AMENDMENTS TO THE GENERAL PLAN LAND USE ELEMENT REQUIRED FOR CONSISTENCY WITH THE 2021-2029 HOUSING ELEMENT 71 Commercial Commercial designations provide for a wide variety of retail, restaurant, office and other uses that provide goods or services. Commercial designations are organized based on the scale and type of goods or services provided. The most localized designations are intended to serve a neighborhood and residents within the immediate vicinity, while other commercial designations are intended to serve the entire community or the region. of retail, restaurant, office, and mixed-uses (including other residential). that provide goods or services. Commercial designations are organized based on the scale and type of goods or services provided. The most localized designations are intended to serve a neighborhood and residents within the immediate vicinity, while other commercial designations are intended to serve the provide space for production, design and manufacturing uses that support the local employment base and produce goods and services that enhance the brand of Hermosa Beach as a creative and innovative community. Uses that are considered light industrial are to be designed and sited in a manner that ensures their compatibility with surrounding uses. provide space for production, design and manufacturing uses that support the local employment base and produce goods and services that enhance the brand of Hermosa Beach as a creative and innovative community. Uses that are considered light industrial are to be designed and sited in a manner that ensures their compatibility with surrounding uses. Residential uses, such as live work and artist space would be also be community-oriented uses such as schools, parks, community facilities, administrative offices or buildings, and space for essential services and utility needs. Institutional uses also vary in scale from parkettes at few thousand square feet to the beach, which includes approximately 63 acres in community-oriented uses such as schools, parks, community facilities, administrative offices or buildings, and space for essential services and utility needs. Institutional uses also vary in scale from parkettes at few thousand square feet to the beach, which includes approximately 63 acres in size. EXHIBIT CDocusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 2 PROPOSED AMENDMENTS TO THE GENERAL PLAN LAND USE ELEMENT REQUIRED FOR CONSISTENCY WITH THE 2021-2029 HOUSING ELEMENT sited within such uses as adaptive re-use of facilities or best use of resources for facilities no longer in Commercial (CC) Appropriate Land Uses This designation provides space for locally oriented commercial uses including retail stores, restaurants, professional and medical offices, and personal services. Uses on the ground floor are reserved for retail, restaurant, and other sales-tax revenue generating uses, while offices and personal service uses are encouraged on upper floors. Residential uses are not allowed in this designation as its intent is to promote and protect retail, office, and service uses that diversify the City’s tax base. commercial uses including retail stores, restaurants, professional and medical offices, and personal services. Uses on the ground floor are reserved for retail, restaurant, and other sales-tax revenue generating uses, while offices and personal service uses are encouraged on upper floors. Residential uses are not allowed in this designation as its intent is to promote and protect retail, office, and service uses that diversify the City’s tax base. Mixed use developments (including residential uses) may be Commercial (GC) Purpose key entryways and intersections to Hermosa Beach to offer a greater variety of employment, retail, and economic activity to the community. The Gateway Commercial designation also plays a role in providing services and amenities to visitors and the region by encouraging hotels and larger employment centers to be relocated in this area. With the Gateway Commercial designation appropriately applied to larger sites, they are intended to provide both commercial services as well as facilities that benefit the local community. key entryways and intersections to Hermosa Beach to offer a greater variety of employment, retail, and economic activity to the community. The Gateway Commercial designation also plays a role in providing services and amenities to visitors and the region by encouraging hotels and larger employment centers to be relocated in this area. With the Gateway Commercial designation appropriately applied to larger sites, they are intended to provide both commercial services as well as mixed-use (including residential) developments facilities that benefit the local Commercial ground floor should include community or floor should include community or regionally Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 3 PROPOSED AMENDMENTS TO THE GENERAL PLAN LAND USE ELEMENT REQUIRED FOR CONSISTENCY WITH THE 2021-2029 HOUSING ELEMENT Appropriate Land Uses visitor office uses. Professional and medical offices and hotels providing lower cost visitor accommodations are also allowed in this designation. Public assembly, recreational, and other community facilities which are determined to be compatible with and oriented towards enhancing the gateway commercial district may also be allowed. Parking facilities will serve onsite uses and are encouraged to explore shared parking agreements with nearby commercial uses to encourage a “park once” strategy. hotels providing lower cost visitor accommodations are also allowed in this designation. Public assembly, recreational, and other community facilities which are determined to be compatible with and oriented towards enhancing the gateway commercial district may also be allowed; this includes mixed use (including residential) developments. Parking facilities will serve onsite uses and are encouraged to explore shared parking agreements with nearby commercial uses to (SC) Purpose The Service Commercial designation is intended to provide adequate space specifically for specialty goods and services that serve residents and the region. These businesses often require indoor or outdoor warehousing or storage space to display or sell their inventory, and caution is taken to ensure they are located in a manner that minimizes their impact on nearby residential, retail, or office uses. Service Commercial uses often attract customers for a specific item or service, compared to a traditional retail district where customers may visit many businesses within a single trip. provide adequate space specifically for specialty goods and services that serve residents and the region. These businesses often require indoor or outdoor warehousing or storage space to display or sell their inventory, and caution is taken to ensure they are located in a manner that minimizes their impact on nearby residential, retail, or office uses. Service Commercial uses often attract customers for a specific item or service, compared to a traditional retail district where customers may visit many businesses within a single trip. Occasionally, mixed use development (including residential uses) may be appropriately sited. Appropriate Land Uses The Service Commercial designation is reserved for the provision of specialty goods and services, primarily related to home and automotive needs. Home improvement stores, furniture stores, auto provide adequate space specifically for specialty goods and services that serve residents and the region. These businesses often require indoor or Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 4 PROPOSED AMENDMENTS TO THE GENERAL PLAN LAND USE ELEMENT REQUIRED FOR CONSISTENCY WITH THE 2021-2029 HOUSING ELEMENT are the prioritized use with this designation. Retail trade and warehousing facilities are allowed as an may be appropriately sited. Industrial Appropriate Land Uses This designation is reserved for the provision of production uses for light manufacturing, creative art, or design services. Flexible use spaces, co- working offices, and creative or “maker” industry incubator spaces are also permitted. Professional office or specialty retail are allowed only as an accessory in this designation as its intent is to promote and protect industry and production uses that diversify the City’s tax base. production uses for light manufacturing, creative art, or design services. Flexible use spaces, co- working offices, and creative or “maker” industry incubator spaces are also permitted. Professional office or specialty retail are allowed only as an accessory in this designation as its intent is to promote and protect industry and production uses that diversify the City’s tax base. Residential uses, such as live work and artist space would be permitted in the Creative Light land use Appropriate Land Uses Civic-related administrative offices, community space, operational yards, and educational or institutional facilities are the primary uses allowed in this designation. Public utility structures or corridors, plazas, and historic landmarks or monuments are also allowed this designation. Wireless telecommunications facilities may be allowed in this designation when co-located with public buildings and determined to be compatible with and avoid nuisances to surrounding uses. space, operational yards, and educational or institutional facilities are the primary uses allowed in this designation. Public utility structures or corridors, plazas, and historic landmarks or monuments are also allowed this designation. Wireless telecommunications facilities may be allowed in this designation when co-located with public buildings and determined to be compatible with and avoid nuisances to surrounding uses. Occasionally, residential uses may be appropriately sited within such uses as adaptive re-use of facilities or the best use of resources for facilities no longer Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1 State of California ) County of Los Angeles ) ss City of Hermosa Beach ) September 18, 2024 Certification of Council Action RESOLUTION NO. RES-24-7453 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING GENERAL PLAN AMENDMENT (GPA) 23-01, RE-ADOPTING THE 2021-2029 CITY OF HERMOSA BEACH HOUSING ELEMENT AS CERTIFIED BY THE STATE OF CALIFORNIA, ALONG WITH ASSOCIATED LAND USE ELEMENT AMENDMENTS, AND MAKING A DETERMINATION THAT THE REVISED HOUSING ELEMENT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) I, Myra Maravilla, City Clerk of the City of Hermosa Beach do hereby certify that the above and foregoing Resolution No. RES-24-7453 was duly approved and adopted by the City Council of said City at its regular meeting thereof held on the 10th day of September, 2024 and passed by the following vote: AYES: MAYOR FRANCOIS, MAYOR PRO TEMPORE SAEMANN, COUNCILMEMBERS DETOY, JACKSON AND MASSEY NOES: NONE ABSTAIN: NONE ABSENT: NONE ________________________________ Myra Maravilla, City Clerk Docusign Envelope ID: 7742F62B-5F28-4B9A-B379-408539F9D3D1