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HomeMy WebLinkAboutRES-12-6798 (HOUSING ELEMENT-NEGATIVE DECLARATION)2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO.12-6798 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING THE FOURTH AMENDMENT TO THE CITY OF HERMOSA BEACH HOUSING ELEMENT AND AMENDMENT TO THE LAND USE ELEMENT TO AUTHORIZE CREATION OF AN AFFORDABLE HOUSING OVERLAY ZONE IN THE COMMERCIAL CORRIDORS, AND ADOPTING A NEGATIVE DECLARATION THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Planning Commission held a duly noticed public hearing on March 20, 2012, and pursuant to Planning Commission Resolutions 12-5 and 12-6 recommended approval of (1) the Fourth Update of the City's General Plan Housing Element in compliance with the State Housing Element law; (2) an amendment to the Land Use Element to accommodate lower -income housing by authorizing affordable housing developments in various areas of the City designated for commercial development; and (3) an amendment to the Hermosa Beach Zoning Code and Zoning Map to create an Affordable Housing Overlay Zone (GP 5-05, ZON 12-1, TEXT 12-1). SECTION 2. The City Council held a duly noticed public hearing on April 24, 2012, at which time all testimony, both oral and written, was presented to and considered by the City Council. SECTION 3. The proposed Housing Element amendment was submitted to the California Department of Housing and Community Development for its review and the Department tentatively certified the Element on January 6, 2012, contingent upon the creation of an Affordable Housing Overlay Zone (as required by Program 7). The proposed amendments to the Land Use Page I of 3 12-6798 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Element are necessary to accommodate the City's regional share for affordable housing through the overlay zone in a manner that is consistent with the City's development goals and policies. SECTION 4. Pursuant to the provisions of the California Environmental Quality Act, an Initial Study and Negative Declaration were prepared and it was determined that no significant impacts on the environment would result from the project, and the California Department of Fish and Game has made a "No Effect Determination" that the project will not impact fish or wildlife or the habitat on which it depends. The Negative Declaration prepared for this project reflects the City's independent judgment and analysis. The Notice of Intent to Adopt a Negative Declaration was advertised in accordance with CEQA Section 15070 on February 9, 2012 for a period of at least twenty (20) days ending on March 10, 2012. The City Council finds that there is no substantial evidence that the project would have a significant impact on the environment and adopts the Initial Study and Negative Declaration as adequate and complete, and adopts the Final Negative Declaration. SECTION 5. The City Council of the City of Hermosa Beach hereby adopts the General Plan Housing Element Amendment as shown in Exhibit A and the Land Use Element Amendment as shown in Exhibit B. SECTION 6. Pursuant to the Code of Civil Procedure Section 1094.6, any legal challenge to the decision City Council must be made within 90 days after the final decision by the City Council. SECTION 7. The City Clerk shall certify to the passage and adoption of this Resolution, shall enter the same in the book of original Resolutions of said city; and shall make minutes of the Page 2 of 3 12-6798 1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 passage and adoption thereof in the records of the proceedings of the City Council at which the same is passed and adopted. PASSED, APPROVED and ADOPTED this 24th day of April, 2012. PRESIDENT of the City ATTEST: City Clerk Page 3 of 3 of the City of Hermosa Beach, California APPROVED AS TO FORM: 12-6798 Exhibit A CITY OF H E RMOSA BEACH HOUSING ELEMENT 2008 - 2014 Proposed Final January 2012 City of Hermosa Beach Housing Element Contents I. Introduction................................................................................................................................. 1-1 A. Purpose of the Housing Element B. ................................................... ............................. Scope and Content of the Housing Element ................................................ ......... 1-1 C. Public Participation................................................................................................................... 1-2 D. Consistency with Other Elements of the General Plan ...................................................... 1-2 ll. Housing Needs Assessment...................................................................................................... 11-1 A. Population Characteristics......................................................... ....................................... II-1 1. Population Growth Trends..................................................._.._.......................................... II-1 2. Age.......................................................................................................................................... II-2 3. Race and Ethnicity................................................................................................................ II-3 B. Household Characteristics ....... .......................................................... .......... ............................ II-3 1. Household Composition and Size...................................................................................... II-3 2. Housing Tenure....................................................................................................................... II-4 3. Overcrowding........................................................................................................................ II-4 4. Household Income................................................................................................................ II-5 5. Overpayment......................................................................................................................... II-6 C. Employment ..... ................................................. .......................... ............................... .......... ...... II-6 1. Current Employment............................................................................................................. II-6 2. Projected Job Growth.......................................................................................................... 11-7 D. Housing Stock Characteristics ............................................ ................................................ II-9 1. Housing Type and Growth Trends...................................................................................... II-9 2. Housing Age and Conditions............................................................................................ II-10 3. Vacancy...............................................................................................................................11-12 4. Housing Cost...................................................................................................................... II-13 E. Special Needs .................................. ............................ II-16 1. Persons with Disabilities.............................................__........................................_.........11-16 2. Elderly.....................................................................................................................................11-17 3. Large Households................................................................................................................ II-18 4. Female -Headed Households ................... .........................................................................II-18 5. Farm Workers........................................................................................................................11-19 6. Homeless Persons ........................... .......................... ............................................................ II-19 F. Assisted Housing at Risk of Conversion .......................... ............................................. ........ II-20 G. Low- and Moderate -Income Housing in the Coastal Zone ......_ .............................._... II-21 H. Future Growth Needs............................................................................................................. II-21 1. Overview of the Regional Housing Needs Assessment ................................................ II-21 2. 2006-2014 Hermosa Beach Growth Needs..................................................................... II-22 III. Resources and Opportunities..................................................................................................I11-1 A. Land Resources........................................................................ ............... 1. Regional Growth Needs 2006-2014....................... 2. Inventory of Sites for Housing Development ... .... .... .... ...................... ....... ....................... B. Financial and Administrative Resources ........................................ ................................. .III-2 .....III-3 1. State and Federal Resources ............................... ......................... ...... ......... ............. .......... III-3 2. Local Resources.....................................................................................................................III-4 C. Energy Conservation Opportunities .......................... ........................................................ ....111-4 IV. Constraints .................................................................................................................................IV-1 A. Governmental Constraints .................. ....................................... .............. ............................. IV-1 1. Land Use Plans and Regulations ................................. ......... ................................... ........... IV-1 2. Development Processing Procedures............................................................................IV-12 3. Development Fees and Improvement Requirements ..... ......... ...... ............................. IV-14 III January 2012 City of Hermosa Beach Housing Element List of Tables Table II-1 Population Trends, 1990-2007 - Hermosa Beach vs. Los Angeles County ......................11-1 Table II-2 Age Distribution - 2000........................................................ .......... ............ ................................ 11-2 Table II-3 Race/Ethnicity............................................ Table II-4 Household Composition ................................... ...................................................................... ..11-4 Table II-5 Household Tenure....................................................................................:.................................11-4 TableII-6 Overcrowding............................................................................................................................11-5 Table II-7 Median Household Income, 1999 - Hermosa Beach and Surrounding Cities, .............. 11-5 Table II-8 Overpayment by Income Category- Hermosa Beach ................... ................ ................. 11-6 Table 11-9 Labor Force - Hermosa Beach vs. Los Angeles County (2000)... .... .... ................ ............. II-7 Table 11-10 Employment by Occupation - Hermosa Beach ...................... ........................................... 11-7 Table II-1 1 Projected Job Growth by Occupation (2004-2014) - Los Angeles -Long Beach -Glendale Metropolitan Statistical Area ........................ .......... .................................11-8 Table II-12 Job Location for Hermosa Beach Residents.......................................................................11-9 Table 11-13 Housing by Type - Hermosa Beach vs. Los Angeles County ......................................... T-10 Table 11-14 Age of Housing Stock by Tenure - Hermosa Beach vs. Los Angeles County ............. 11-11 Table 11-15 Kitchen and Plumbing Facilities by Tenure, 2000 - Hermosa Beach vs. Los AngelesCounty............................................................. ........ ................................................. 11-12 Table 11-16 Housing Vacancy - Hermosa Beach vs. Los Angeles County ....................................... II-13 Table 11-17 Income Categories and Affordable Housing Costs - Los Angeles County................11-14 Table II-18 Resale Housing Sales Price Distribution (2006-07) - Hermosa Beach ............................ II-15 Table II-19 Rental Market Survey- Hermosa Beach., ...................... II-15 Table II-20 Persons with Disabilities by Age - Hermosa Beach.......................................................... II-17 Table II-21 Elderly Households by Tenure - Hermosa Beach............................................................. II-18 Table 11-22 Household Size by Tenure - Hermosa Beach ....................................... .............. ............... 11-18 Table II-23 Household Type by Tenure - Hermosa Beach.................................................................. II-19 Table II-24 Regional Housing Growth Needs' - Hermosa Beach .... - ..... ........ ...... ................ -........ 11-22 Table 111-1 Net Remaining RHNA- Hermosa Beach ... ..... ............. ........ ........... ....... .............................. Ill-2 Table 111-2 Land Inventory Summary - Hermosa Beach........................................................... ...... ...... 111-3 Table IV-1 Residential Land Use Categories - Hermosa Beach General Plan...............................IV-1 Table IV-2 Residential Development Standards by Zone ....... ............ ........................ ........................ IV-2 Table IV-3 Permitted Residential Development by Zone .................. .... ............ .................................. IV-3 Table IV-4 Residential Parking Requirements........................................................................................IV-8 Table IV-5 City of Hermosa Beach Planning Fees ................................ .......................................... ...JV-14 Table V-1 Program Implementation Matrix........................................................................................ V-12 List of Figures Figure II-1 Population Growth 1990-2007 - Hermosa Beach vs. Los Angeles County.....................11-2 January 2012 City of Hermosa Beach Housing Element I. Introduction I. INTRODUCTION A. Purpose of the Housing Element The Housing Element describes the City's needs, goals, policies, objectives, and programs regarding the preservation, improvement, and development of housing within Hermosa Beach. The Element provides an indication of community housing needs in terms of affordability, availability, adequacy, and accessibility. The Element provides a strategy to address housing needs and identifies a range of specific housing programs to meet identified needs. The Housing Element is an official municipal response to a growing awareness of the need to provide housing for all economic segments of the community, as well as a legal requirement for all California jurisdictions. It provides Hermosa Beach with the opportunity to plan for the existing and future housing needs in the community. This Element has been prepared in compliance with the 2008-2014 six -year planning cycle for cities within the Southern California Association of Governments (SCAG) region. It identifies strategies and programs that focus on: 1) providing diverse housing sites and opportunities; 2) conserving and improving the existing affordable housing stock; 3) removing govern- mental and other constraints to housing development; and 4) promoting equal housing opportunities. B. Scope and Content of the Housing Element The California Legislature recognizes 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. Furthermore, the Legislature stresses continuing efforts toward providing affordable housing for all income groups. The California Department of Housing and Community Development (HCD) also sets forth specific requirements regarding the scope and content of housing elements, including the following major components: • An analysis of the city's demographic and housing characteristics and trends (Chapter II); • An evaluation of land, financial, and administrative resources available to address the City's housing goals (Chapter III); • A review of potential constraints, both governmental and non -governmental, to meeting Hermosa Beach's housing needs (Chapter IV); • The Housing Action Plan for addressing the City's identified housing needs, including housing goals, policies and programs (Chapter V); • 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 (Appendix A); and • A parcel -specific inventory of vacant and underutilized land (Appendix B). -� January 2012 City of Hermosa Beach Housing Element II. Housing Needs Assessment Ii. 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 2007 Regional Housing Needs Assessment (RHNA) are examined. The Housing Needs Assessment utilizes the most recent data from the 2000 U.S. Census, the California Department of Finance (DOF), the California Employment Development Department (EDD), the Southern California Association of Governments (SCAG), Los Angeles County (2003-2008 Consolidated Plan), and other relevant sources. Supplemental data were obtained through field surveys and from the California State 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 1980s and 1990s, having grown less than 8% from 1980 to 2007. Most of the growth that has occurred consisted of density increases on existing parcels, and demolition and replacement of existing homes. This is in contrast with Los Angeles County, which grew by 18.57. between 1980 and 1990, 8.1 % between 1990 and 2000, and an additional 8.2% since 2000 (see Table II-1 and Figure II-1). As an essentially built - out city, there continue to be few opportunities for growth, except through redevelopment/infill on existing parcels. Table II-1 Population Trends, 1990-2007 - Hermosa Beach vs. Los Angeles County Growth Growth Jurisdiction 1990 2000, 2007 1990-2000 2000.2007 Hermosa Beach 18,219 18,566 19,474 1.9% 4.9% Los Angeles County 8,863.052 9,579,000 10,366,700 8.1% 8.2% ouwus. i;s6 n euuu i nsus; uanr. uep1. or rinance i aoie E-1 (zuv) II-1 January 2012 City of Hermosa Beach Housing Element II. Housing Needs Assessment 3. Race and Ethnicity The racial and ethnic composition of the city differs from the county in that a lower proportion of city residents are Hispanic/Latino or other racial minorities. Approximately 85% of city residents are non -Hispanic white, contrasted with 31% for the county as a whole. The percentage of Hispanics residing in the city, at 6.7%, is significantly lower than that of the county with 45% Hispanic/Latino. Asians, at 4.4%, represent the largest non - Hispanic minority (Table II-3). Table II-3 Race/Ethnicity Hermosa Beach Los Angeles County Persons % Persons % Race/Ethnicity Not Hispanic or Latino 17,313 93.3% 5,277,125 55.4% White 15,822. 85.2% 2,959,614 31.1% Black or African American 141 0.8% 901,472 9.5% American Indian/Alaska Native 51 0.3% 25,609 0.3% Asian 809 4.4% 1,124,569 11J3% Native Hawaiian/Pacific Islander 35 0.2% 23,265 0.2% Other Races or 2+races 455 2.5% 242,596 2.5% Hispanic or Latino (any race) 1,253 6.7% 4,242,213 44.6% Total 18,566 100.0% 9 519 338 100.0% sources: zuuu census, Sri Table P8 B. Household Characteristics 1. Household Composition 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. Hermosa Beach had 9,476 households as reported in the 2000 Census. Table II-4 provides a comparison of households by type for the city and Los Angeles County as a whole. Family households in 2000 comprised approximately 38% of all households in the city, over 30% less than the county. Another significant difference in household composition between the city and county is the number of single person households (39% city vs. 257. county). Due to these factors, the city's average household size is also lower than Los Angeles County as a whole (1.95 persons per household City vs. 2.98 persons per household county). These statistics suggest that there is less need for large units in Hermosa Beach than are needed for other areas of the county. II-3 January 2012 City of Hermosa Beach Housing Element II. Housing Needs Assessment Table 11-6 Overcrowding Hermosa Beach Los Angeles County Households Percent Households I Percent Household Type Owner -Occupied 4,033 100.0% 1,499,694 100.0% Overcrowded 33 0.8% 204,345 13.6% Severely overcrowded 0 0.0% 111,667 7.4% Renter -Occupied 5,409 100.0% 1,634,080 100.0% Overcrowded 56 1.0% 516,024 31.6% Severely overcrowded 1 123 2.3% 359,608 22.0% Source: 2000 Census, Table H2O Based on U.S. Census standards, Hermosa Beach residents live in relatively less crowded housing conditions than the rest of Los Angeles County. In 2000, approximately 2% of all occupied units in Hermosa Beach were considered overcrowded, including less than I % of owner occupied units and 3.3% of renter occupied units. Overcrowding in both owner - occupied and renter -occupied units in the city is significantly less than the county level. According to SCAG estimates, overcrowding in the city remained at approximately 2% as of September 2006.1 4. Household Income Household income is a primary factor affecting housing needs in a community - the ability of residents to afford housing is directly related to household income. According to the 2000 Census, the median household income in Hermosa Beach was $81,153, over 92% higher than Los Angeles County. However, household income is similar to the adjacent beach communities of Redondo Beach and Manhattan Beach (Table II-7). Table II-7 Median Household Income, 1999 - Hermosa Beach and Surrounding Cities Jurisdiction Median Income Hermosa Beach $81,153 City of Los Angeles $37,338 County of Los Angeles $42,189 Manhattan Beach $100,750 Redondo Beach $69,173 Source: US Census 2000, Table P53 (reports 1999 income) 1 SCAG: Draft Housing Need Allocation Plan (January 1, 2006 to June 30, 2014) II-5 January 2012 City of Hermosa Beach Housing Element II. Housing Needs Assessment also shows that the city's population has a much higher participation in the workforce than the county (81% city vs. 61% county). About 6% of city residents worked at home, which is twice the county's rate of home -based employment Table II-9 Labor Force - Hermosa Beach vs. Los Angeles County (2000) Labor.Force Status Hermosa Beach Los Angeles County Persons % Persons % In labor force -Work at home Not in labor force 13,415 765 3,120 81% 6% 19% 4,312,264 134,643 2,810,261 61% 3% 39% With Social Security income 991 6% 618,121 9% Total population age 16+ 16,535 7,122,525 - ouurce: muu Census Sh3 of -3 In 2000, approximately 61% of the city's working residents were employed in manage- ment and professional occupations (Table II-10). A low percentage of workers (under 7%) were employed in service related occupations such as waiters, waitresses and beauticians. Blue collar occupations such as machine operators, assemblers, farming, transportation, handlers and laborers also constituted less than 7% of the workforce. Table II-10 Employment by Occupation - Hermosa Beach Occupation Jobs Percent Management, professional and related 7,870 61.2% Service 894 6.9% Sales and office 3,273 25.4% Farming, fishing and forestry - - construction, extraction, and maintenance 413 3.2% Production, transportation, and material moving 419 3.3% Source: 2000 Census, DP-3 2. Projected Job Growth Table II-1 1 shows employment and projected occupational growth for the Los Angeles - Long Beach -Glendale Metropolitan Statistical Area (MSA) along with average salaries for the period 2004-2014. The greatest number of new jobs projected to be produced in Los Angeles County over the next few years will be among the lower -waged occupations. Based on past trends and projections provided by the California Employment Development Department, 65% of these new workers will earn 80% or below of the median area income.2 Because the majority of new jobs created will be low -wage jobs, 2 Los Angeles County 2003-2008 Consolidated Plan II-7 -� January 2012 City of Hermosa Beach Housing Element 11. Housing Needs Assessment Table II-12 Job Location for Hermosa Beach Residents Job Location Persons % 11,827 Work in Los Angeles County 92.5% Work in city of residence 1,683 13.2% Work elsewhere in Los Angeles County 10,144 79.3% Work in another California county 779 6.1% Work outside California 178 14% Total workers age 16+ 12 784 Source: 2000 Census, SP6 Tables P26 and P17 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. The factors evaluated include the number and type of housing units, recent growth trends, age cnd condition, tenure, vacancy, housing costs, affordability, and assisted affordable units at -risk of loss due to conversion to market -rate. 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 As of 2000, the largest proportion of the city's housing stock was comprised of multi -family units, which made up about 48% of all units, while single-family detached units comprised 41 % of the total. About 10% of units were single-family attached (condo) units, while mobile homes comprised the remaining 1 %. Table 11-13 provides a breakdown of the housing stock by type along with growth trends for the city compared to the county as a whole for the period 2000-2007. II-9 January 2012 City of Hermosa Beach Housing Element II. Housing Needs Assessment Table II-14 Age of Housing Stock by Tenure - Hermosa Beach vs. Los Angeles.County Angeles County nits %oOwner Year Built occupied 9,694 100% 1990 or later ,563 7% 1980-89 ran,,ThAn ,413 12% 1970-79 ,447 12% 1960-69 ,641 15% 1950.59 ,784 27% 194049 9,298 14% 1939 or earlier 741 18% 203,548 14% Renter occupied 100% 1,634,080 100% 1990 or later 2% 109,917 7% 1980-89 9% 214,549 13% 1970-79 r48 24% 302,096 18% 1960-69 24% 333,517 20% 1950-59 17% 298,342 18% 194049 510 9% 175,275 11% 1939 or earlier 770 14% 1 200,384 1 12% owiw. mw tnbuhnoo This table shows that 61 % of the owner -occupied housing units and 64% of rented 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. Table II-15 identifies the number of owner -occupied and renter -occupied housing units locking complete kitchen or plumbing facilities in the city and the county as a whole. This table shows that no owner -occupied units and only 1% of renter -occupied units lacked complete kitchens. Similarly, no owner -occupied units and less than 1% of renter - occupied units lacked complete plumbing facilities. The lack of complete kitchen or plumbing facilities is often an indicator of serious problems, and housing units may need rehabilitation even though they have complete kitchens and plumbing facilities. As part of the city's previous (2003) Housing Element update, a citywide survey of housing conditions was conducted. Units were categorized into the following three groups: • Good - housing unit appears to be well -maintained; • In Need of Minor Repair - unit exhibits need for repair, which may include repainting or other limited maintenance; or, II-1 1 January 2012 City of Hermosa Beach Housing Element II. Housing Needs Assessment Table It-16 Housing Vacancy — Hermosa Beach vs. Los Angeles County Occupancy Status Hermosa Beach Los Angeles County Units % % Total housing units 9,840 100.0% 100.0% Occupied units 9,475 96.3% 95.8% -Owner occupied 4,068 41.3% r3,270,909 45.9% -Renter occupied 5,408 55.0% 50.0% Vacant units 364 3.7% 4.2% -For rent' 140 2.5% 56,089 3.3% -Forsale2 44 1.1% 23,874 1.6% -Rented or sold, not occupied 41 0.4% 11,716 0.4% -For seasonal or occasional use 95 1.0% 13,565 0.4% -For migrant workers 0 0.0% 68 0.0% -other vacant 4 0.4% 31,823 1.0% Source: 2000 Census, Table QT-H1 Notes: I Est. %of all rental units 1 Est. % of all forsaleunits 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 II-17 shows 2008 affordable rent levels and estimated affordable purchase prices for housing in Los Angeles County by income category. Based on state -adopted standards, the maximum affordable monthly rent for extremely -low-income households is $569, while the maximum affordable rent for very -low-income households is $948. The maximum affordable rent for low-income households is $1,516, while the maximum for moderate -income households is $1,795, Maximum purchase prices are more difficult to determine due to variations in mortgage interest rates and qualifying procedures, down payments, special tax assessments, II-13 January 2012 City of Hermosa Beach Housing Element II. Housing Needs Assessment Table II-18 Resale Housing Sales Price Distribution - Hermosa Beach Sale Price Category New Resale (All) Condo SFD Under$250,000 0 0 0 $250,000-274,999 0 0 0 $275,000-299,999 0 1 0 $300,000-324,999 0 0 1 $325,000-349,999 0 0 0 $350,000-374,999 0 1 0 $375,000-399,999 0 0 0 $400,000A24,999 0 1 0 $425,000A49,999 0 1 0 $450.000-474,999 0 0 1 $475,000-499,999 0 4 0 $500,000+ 5 65 78 Median $1,450,000 $975,000 $1,156,000 (votes: Data for Jan 2006 through Aug 2007 Source: DataQuick Information Systems C. Rental Housing Table II-19 shows market data for rental apartments unit sizes in Hermosa Beach based on recent surveys of large complexes. Table II-17 Rental Market Survey - Hermosa Beach Unit Size Average Rent Average Square Feet Average Cost per Square Foot All $1,979 784 $2.52 Studio $1,304 397 $328 1 bedroomll bath $1,719 666 $2.58 2 bedroom/2 bath $2,235 910 $2.46 2 bedroom/2 bath $3,200 1,300 $2.46 Average Occupancy 93.4% Average Year Built 1971 Source: RealFacts, 9107 As would be expected in a desirable beach community in Southern California, when market rents are compared to the amounts lower -income households can afford to pay (Table II-17, page II-14), it is clear that very -low- and extremely -low-income households have a very difficult time finding housing without overpaying. The gap between market II-15 January 2012 City of Hermosa Beach Housing Element II- Housing Needs Assessment Table II-20 Persons with Disabilities by Age — Hermosa Beach Disability by Age Persons Percent r�� '.• . e.- a z Sensory disability 0 0.0% Physical disability 27 2.2% Mental disability 45 3.7% Self -care disability 27 2.2% Sensory disability 181 2.5% Physical disability 318 4.3% Mental disability 212 2.9% Self -care disability 51 0.7% Go -outside -the -home disability 239 3.3% Employment disability 1,125 15.3% Sensory disability 170 13.6% Physical disability 273 21.9% Mental disability 132 10.6% Self -care disability 165 13.2% Go -outside -the -home disability 219 17.5% aource: tuuu genus, SF I Mies 118 and P41 Note: Totals may exceed 100%due to m0ple disabiliJes per person 2. Elderly In 2000, there were 887 households (19% of owners but only 2% of renters) in Hermosa Beach where the householder was 65 or older (Table II-21). Of these, only 36 persons were below the poverty level in 19995. Many elderly persons are dependent on fixed incomes and/or have a disability. Elderly homeowners may be physically unable to maintain their homes or cope with living alone. The housing needs of this group can be addressed through smaller units, second units on lots with existing homes, shared living arrangements, congregate housing and housing assistance programs. 5 2000 Census, SF3 Table DP-3 II-17 January 2012 City of Hermosa Beach Housing Element II. Housing Needs Assessment Table II-23 Household Type by Tenure - Hermosa Beach Owners Renters Household Type Households I % Households % Married couple family 2,117 52% 1,168 22% Male householder, no wife present 85 2% 176 3% Female householder, no husband present 254 6% 165 3% Non -family households 1,577 39% 4,241 78% Total households 4,033 100% 5,409 100% Source: 2000 Census, SF3 Table H19 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 produces a total annual value of approximately $278 million per year in Los Angeles County, no agricultural activities are found in Hermosa Beach or in the surrounding communities.6 In addition, the 2000 Census did not identify any City residents who were employed in farming (Table II-10, page II-7). b. 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.? Although there are myriad causes of homelessness, among the most common are: • Substance abuse and alcohol • Domestic violence • Mental illness 6 2005 Crop and Livestock Report, Los Angeles County Agricultural Commissioner 7 Stewart B. McKinney Act, 42 U.S.C. §11301, et seq. (1994) II-19 January 2012 City of Hermosa Beach Housing Element II. Housing Needs Assessment 2018. 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 located west of Valley Drive is within the Coastal Zone. Government Code Section 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. A total of approximately 792 units were constructed from 1982 through 2007. No 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 8/2-year period from January 2006 to July 2014. 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 July 2007. The future need for housing is determined primarily by the forecasted growth in households in a community. Each new household, created by a child moving out of a parent's home, by a family moving to a community for employment, and so forth, creates the need for a housing unit. The housing need for new households is then adjusted to maintain a desirable level of vacancy to promote housing choice and mobility. An adjustment is also made to account for units expected to be lost 11-21 January 2012 City of Hermosa Beach Housing Element III. Resources and Opportunities III. RESOURCES AND OPPORTUNITIES A. Land Resources Regional Housing Needs 2006-2014 In accordance with Government Code §65584, projected housing needs for each city and county in the Southern California region are prepared by the Southern California Association of Governments (SCAG) under a process known as the Regional Housing Needs Assessment (RHNA). SCAG's Regional Council adopted the final Regional Housing Need Allocation in July 2007 for the 8/2-year planning period of January 1, 2006 to June 30, 2014. The RHNA process began with an update of the population, employment and household forecasts for the region as a whole and for each county. These forecasts were largely derived from California Department of Finance (DOF) population and employment forecasts and modified by regional demographic and modeling efforts by SCAG. SCAG then disaggregated the regional and county forecasts to each jurisdiction and estimated the number of dwelling units needed to achieve a regional target vacancy rates (2.3% owner -occupied and 5% rental) and to account for projected housing demolitions. The total housing needed in each jurisdiction was then distributed by income category (very low, low, moderate and upper income). It should be noted that SCAG's RHNA methodology, which resulted in the allocation of 562 new housing units to Hermosa Beach (including 240 lower -income units), was based on a pattern of development comprised almost entirely of the replacement of older single-family houses with small condominium projects, which are likely to be occupied by above -moderate income households. There are no residentially -zoned vacant or underutilized parcels of sufficient size or in sufficient number that could accommodate new assisted affordable housing. In addition, there are no vacant commercially -zoned properties (which currently do not allow housing as a permitted or conditional use) that could accommodate housing projects of any appreciable size. Nonprofit housing developers consulted by the City in 2010 indicated that viable assisted housing projects typically consist of at least 20 units. All new units built or preserved after January 1, 2006 are credited in the current RHNA period. Table III-1 shows the net remaining housing need after crediting units built during 2006-2008, (A detailed breakdown of these new units by income category is provided in Appendix B). III-1 January 2012 City of Hermosa Beach Housing Element III. Resources and Opportunities Table III-2 Land Inventory Summary - Hermosa Beach Income Category Lower* Mod Above Total Units approvedlunderconstruction - 34 34 Vacant sites 8 - 8 Underutilized sites - - - R-1 (units permitted) - 17 17 Realistic estimate (100%) - 17 17 R-21R-2B (units permitted) - 331 331 Realistic estimate (84%) - 278 278 R-3 (units permitted) - 180 180 Realistic estimate (84%) - 151 151 R-P (units permitted) - 14 14 Realistic estimate (75%) - 11 11 C-1 (units permitted) - 12 12 Realistic estimate (80%) - 10 10 SPA-9 (units permitted) _ 4 4 Realistic estimate (100%) - 4 4 Subtotal (units permitted) 8 - 592 600 Subtotal (realistic) 8 - 505 513 RHNA (net 2009-2014)" 240 98 16 1 354 Realistic Net Surplus (Deficit) (232) (98) 489 Sources: Hermosa Beach Community Development Dept., 112011 ' Lower= Very Low +Low -See Table 8-1 Note: This table is the same as Table B-3. A discussion of public facilities and infrastructure needed to serve future development is contained in Section IV.B, Non -Governmental Constraints. There are currently no known service limitations that would preclude the level of development described 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 has received approximately $93,000 per year. In recent years the City has used CDBG funds for ADA compliance retrofits for the Community Center and Playhouse, City Hall and sidewalk handicap ramps. III-3 January 2012 City of Hermosa Beach Housing Element III. Resources and Opportunities In addition to state -mandated Title 24 requirements, Hermosa Beach is participating in a coalition to collaboratively tackle the issue of energy conservation." The South Bay Environmental Services Center (SBESC12) 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. Member cities include Carson, EI Segundo, Gardena, Hawthorne, Hermosa Beach, Inglewood, Lawndale, Lomita, Manhattan Beach, Palos Verdes Estates, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Torrance, and the Harbor City and San Pedro communities of Los Angeles. 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. These waivers are reviewed annually. 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. The City adopted increased energy efficiency requirements (Tier 1) as part of the 2010 CalGreen Code. The City is participating in the Los Angeles County Energy Upgrade Program so that residents and businesses can take full advantage of energy retrofit programs per AB 811. The City has instituted a fee reduction for LEED or Build -It Green certified buildings, with this incentive to be reviewed annually. The City, in concert with the South Bay Environmental Service Center (SBESC) and others, has and will continue to participate and host workshops on green building; the City hosted workshops on solar energy, green building codes, adopted a provision to allow solar energy systems exceeding height limits, waives plan check fees for installation of solar systems, applies a green building checklist to new projects, and is adopting a form - based zoning district mandating and encouraging green building provisions. The City became a member of 'Cool Cities' and the City reformulated its Green Building Committee as a 'Green Building Task Force', which is preparing a climate action/sustainability plan. In January 2009 the City launched its new Hermosa Beach Green Webpage at www.hermosabch.org and the City is overhauling its entire website which will provide an opportunity to provide housing information updated on a regular basis. 11 http://www.irnakenews.com/priontyfocus/e_articleool104271.cfm?x=bcHNgMg,b7M8B89f 12 www.sbesc.com 1115 January 2012 City of Hermosa Beach Housing Element IV. Constraints IV. CONSTRAINTS A. Governmental Constraints 1. 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 zoning 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 Land Use Element includes four residential land use designations, as shown in Table IV-]. Table IV-7 Residential Land Use Categories — Hermosa Beach General Plan Maximum Low Density 13 DUlacre Medium Density 25 DU/acre High Density 33 DU/acre Mobile Home 13 DUlacre The City of Hermosa Beach General Plan is not considered a constraint to the goals and policies of the Housing Element as the City's zoning is consistent with the General Plan and adequate sites with appropriate densities have been identified to accommodate the remaining RHNA allocation. b. Zoning Designations 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. IV-1 January 2012 City of Hermosa Beach Housing Element IV. Constraints is required when more than one unit is developed per lot to ensure site design is compatible with the Code and adjacent development. Program 7 includes a commitment to amend the Zoning Code 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. Table IV-3 Permitted Residential Development by Zone Housing Type Permitted R-1 R-1A R-2 R-2B R-3 MHP R�P C-1 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 Ci Cl C1 Ci C1 Cr Farm Worker Housing Emergency Shelters Transitional Housing Single -Room Occupancy Care Facility (6 or fewer) P P p p p p Care Facility (7+) Cz C2 C2 C2 C3 C2 Assisted Livings Vulw- na mwd oedui cuuny ummance P = Permitted P' = Permitted subject to approval of a precise development plan to evaluate site design C = Conditional Use Permit 1 Senior units only 2 Accessory to a single-family detached dwelling; for child care purpose 3 "Group Houses" are allowed. "Group houses" is not defined. There have been no applications for this use and so a final determination as to whether the use is conditional has not been made. 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 second residential units in the R-lA and R-2B zones, multi -family apartments in the R-3 zone, and 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 Table IV-2 above, 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 IV-3 January 2012 City of Hermosa Beach Housing Element IV. Constraints R-2 and R-3 zones has limited or no impact. Therefore, changes to the lot merger program are not necessary. Despite significant land zoned for residential uses, Hermosa Beach is already one of the most densely developed and populated cities in Los Angeles County and is essentially built -out. While rezoning of commercial or industrial areas could be considered to provide additional housing, there are no large commercial or industrial areas that are suitable for this purpose. About 75% of the city is already 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 I % is industrially zoned. The balance of the city is zoned for open space, most of which is the beach area. The percentage of commercial and industrial zoning is well below the neighboring cities in the South Bay and the region in general. The City Council has recognized this imbalance and supports maintaining and where possible aggregating small lots in commercial areas. As a result, there are no significant non-residential parcels that can be re -zoned for high -density residential development. In addition, it is important for the City's economic viability that existing commercial and industrial areas be preserved. The residential land inventory reveals that the majority of potential housing sites are underused parcels with older homes. While none of these sites are on the City's inventory of potentially significant historic landmark sites (last updated in the early 1970s), there is a concern that redevelopment of most of these sites would change the character of the city's neighborhoods, which are typically a mix of older, often single -story bungalow style homes, with two- or three-story high -density condo projects, as well as potentially impacting access on narrow residential streets and other infrastructure. With little room for street widening in older beach communities, it is important to note that the added traffic generation of more high -density housing could conflict with other statewide priorities such as facilitating access to the beach. In order to encourage and facilitate the production of higher -density affordable housing, the Housing Plan (Chapter V) includes Programs 5 and 9 that will offer assistance and incentives to developers who provide units affordable to lower -income households, 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. IV-5 January 2012 City of Hermosa Beach Housing Element IV. Constraints Site planning requirements. There are no special site planning requirements (other than parking, height, and setbacks) for residential care facilities in the Zoning Code. Parkinq requirements. The Zoning Code does not specify a parking requirement for residential care facilities. The city has not been presented with requests for such facilities, therefore parking demand would be determined on a case -by -case based on comparison with uses having similar parking demand. • Farm Worker Housing As indicated in Table IV-3 (page IV-3), 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. In addition, the 2000 Census did not identify any City residents employed in farming. Therefore there is no demand for farm worker housing in Hermosa Beach. • Emergency Shelters and Transitional/Supportive Housing 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. Recent amendments to state law (Senate Bill 2 of 2007) require 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. Since the Zoning Code does not currently contain a definition or development standards for emergency shelters, Program 8 in the Housing Action Plan (Chapter V) contains a commitment to amend the Code. in compliance with SB 2. The C-3, R-3, SPA 7 and SPA 8 zones will be considered for this purpose. The C-3 zone encompasses approximately 28 acres while the R-3 zone encompasses approximately 89 acres. SPA 7 and SPA-8 contain a total of approximately 22 acres. All of these districts provide good access to transit and other services, and the C-3, SPA-7 and SPA-8 zones front Pacific Coast Highway, which provides excellent transit service. 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 some type in the same zone. Since the Zoning Code does not currently contain a definition or regulations for transitional or supportive housing, Program 8 is included in the Housing Plan to address this issue. IV-7 January 2012 City of Hermosa Beach Housing Element IV. Constraints d. Accessory and Second Units The Zoning Code limits guest houses and accessory living quarters to space within the main building for someone employed on the premises or temporary use by guests pursuant to a use permit. • "Guest house" or "accessory living quarters" means living quarters within a main building for the use of persons employed on the premises, or for temporary use by guests of the occupants of the premises. Such quarters shall have no kitchen facilities and shall not be rented or otherwise used as a separate dwelling unit. Guest houses and accessory living quarters are subject to the issuance of a conditional use permit and are not allowed in accessory buildings. Accessory units differ from second units, which may be rented subject to an age restriction. The second unit ordinance allows a maximum 640 square foot unit occupied by one or two adults 60 years of age or older on an 8,000+ square foot lot subject to a conditional use permit (CUP). Those portions of the city that are presently zoned R-2 and R-3 typically contain parcels that are too small to accommodate second units. As a result, the provisions for a second unit apply only to the R-1 single-family zone. In 1992 the City adopted Ordinance No. 92-1080 which makes all of the required findings under Government Code Section 65852.2 to preclude the creation of second units in single- family and multi -family zones, and the City has determined that second units are not suitable on the residential lots in the City due to impacts on traffic, density, the school system, infrastructure, sewer, loss of open space, increased impervious surfaces, increase of solid waste generation, etc. While the City subsequently conducted an extensive lot merger program these conditions and the reasons to preclude second units continue to exist. Notwithstanding terminology, in order to facilitate production of the additional, second units now allowed in the R-1 zone, Program 7 in the Housing Plan includes a provision to eliminate the conditional use permit requirement in favor of a ministerial approval process. e. Density Bonus Under state law (SB 1818 of 2004), cities and counties must provide a density increase up to 35% over the otherwise maximum allowable residential density under the Municipal Code and the Land Use Element of the General Plan (or bonuses of equivalent financial value) when builders agree to construct housing developments with units affordable to low- or moderate -income households. The Zoning Code has not yet been amended to reflect SB 1818, therefore Program 1 is included in the Housing Plan to address this issue. IV-9 January 2012 City of Hermosa Beach Housing Element IV. Constraints C. Reimbursement for moving costs incurred, not to exceed $500.00. d. Extension of tenancy to complete 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 8. h. 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. The City will evaluate whether to relax provisions governing validation of residential units that contribute to the supply of affordable rental housing when the residential 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 (Program 9). L Building Codes State law prohibits the imposition of building 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 Code incorporates the California Building Code, which includes the Uniform Building Code and Uniform Housing Code. The City's IV-11 January 2012 City of Hermosa Beach Housing Element IV. Constraints cost to applicants) allows applicants to become acquainted with the information 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. Permit Approval Procedures and Timing. Simultaneous processing of required entitlements (e.g_, subdivisions and planned developments permits) is also provided as a means of expediting the review process. Most projects under the purview of the Planning Commission are approved or denied within six weeks of filing; a subsequent process requiring Planning Commission actions to be reported to the City Council and the appeal period typically consumes about 30 days. Therefore, the process is typically completed within 3 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 that approval is obtained, the building permit application can be simultaneously reviewed by the planning and building divisions. The building permit process takes about three to six weeks. • Multi -Family Projects - A precise development plan (PDP) design review is conducted by the Planning Commission. If a conditional use permit is also required by the Zoning Code, then 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 approval is obtained, the building permit application can be simultaneously reviewed by the planning and building divisions. A structural plan check is performed by an outside contractor. The building permit process takes about four to six weeks. • 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. The building permit process takes about three to six weeks. • Building Plan Check - Plan check for the processing of residential building permits is generally four to six weeks, depending on the City's workload. For discretionary permits, there is an initial internal review period of 30 days. Building codes are applied to new construction, and projects are monitored and inspected under the building permit process. Where no permits have been obtained, inspections are made in response to request and complaints. Iv-13 January 2012 City of Hermosa Beach Housing Element IV. Constraints Source: City Of Hennosa Beach. 2008-09. 'Averages for 3-bedroom, 2 bath single-family home. "Credits available if existing square footage is demolished or dwelling units are replaced. Does not include possible cost for an environmental impact report or related consultant fees. Table IV-6 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), cumulative permit fees are estimated at approximately $12,000 per unit or $5,000 if the new unit replaced a 1,500-square-foot house as of February 2009. 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 $19,000, or $22,000 if no replacement was 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 2001. In addition to City fees, development fees levied by the school districts and special districts include the following as of January 2009: • School Fees: $2.63 per square foot • L.A. County Sewer Connection Fee: $2,850 (single family home) Aside from parkland fees, no other impact fees hove been adopted. 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 construction and traffic control device installation 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 the City's continued development according to the City's General Plan. The CIP helps to ensure that construction of public improvements is coordinated with private development. 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. IV-15 January 2012 City of Hermosa Beach Housing Element IV. Constraints Drainage. Finally, urban storm water run-off is a challenging issue because the City is an ocean front 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 2010 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. 3. Land Costs Land represents one of the most significant components of the cost of new housing. Land values fluctuate with market conditions, and have been steadily increasing since 2000. The recent downturn in the housing market is expected to affect land values negatively, however. Per -unit land cost is directly affected by density - higher density allows the 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 Recent trends indicate redevelopment projects have been maximizing density. 4. Construction Costs Residential construction costs are estimated by the Community Development Department at $200 per square foot and higher, usually due to the type of construction and amenities desired by the developer in this market. 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 adopted the 2010 CalGreen codes with some local modifications; however, no 'reach' codes were adopted and these amendments were carefully reviewed to ensure they were readily achievable and would not add substantial cost, especially given current economic conditions. 5. Cost and Availability of Financing Hermosa Beach is similar to most other communities.with regard to private sector home financing programs. The recent crisis in the mortgage industry has affected the availability of real estate loans, although the long-term effects are unpredictable. For buyers with good credit histories, mortgages can be obtained at very favorable interest rates. 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, re -sales of existing homes, IV-17 January 2012 City of Hermosa Beach Housing Element V. Housing Plan V. HOUSING PLAN A. Goals, Objectives and Policies The purpose of this section of the Housing Element is to identify those policies and programs that will enable the City to accommodate its housing objectives during the 2008-2014 planning period. This section consists of the following: • The Introduction to the Housing Plan provides an overview of the components that comprise the Housing Plan; • The Housing Policies outlines those policies that serve as the City's vision relative to the conservation of existing housing and the provision of new housing; The Housing Programs describes those programs that will be effective in the implementation of the aforementioned policies, including specific actions, objectives and implementation schedule. B. Housing Element Policies This section establishes the City's housing policy framework. Section 65583(c) of the Government Code requires that actions and policies included in the housing program address five key issue areas. As a result, the policies that have been included in the City of Hermosa Beach Housing Element respond to the following issue areas: • The manner in which the City will assist in the conservation of existing housing resources, including 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 No. 1 - Conservation of Existing Housing As indicated previously, the City's proximity to the Pacific Ocean and its desirability as a place to live and vacation has contributed 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 of Hermosa Beach remains committed to those efforts designed to preserve and maintain the existing housing resources in the City, including affordable housing. V-1 January 2012 City of Hermosa Beach Housing Element V. Housing Plan Issue Area No. 3 - Provision of Adequate Sites for New Housing The majority of the City underwent development during the early 1900s. More intensive development followed, and this intensification has occurred 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 individual properties. Nevertheless, the City of Hermosa Beach will continue to 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 and values, the capacity of the 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 No. 4 - Removal of Governmental Constraints 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. 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. 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. V-3 January 2012 City of Hermosa Beach Housing Element V. Housing Plan • Continuation of support for conversion of the Marine Land Mobile Home Park to a resident owned park and maintenance of the City's Mobile Home Park Ordinance; • Programs that promote the implementation of those sections of the City's Zoning Ordinance permitting high density, and thus potentially affordable residential development in the R-3, R-P and C-1 zoning districts; • A program to create opportunities for affordable housing development in the C-3, SPA-7 and SPA-8 zones which currently do not allow housing development; and • Programs designed to promote the maintenance of the existing housing stock and the protection of existing residential neighborhoods from the intrusion of incompatible land uses. 1. Density Bonus Program Description: In 2004 the state legislature adopted SB 1818, which overhauled state density bonus law. The new law requires cities to grant a density bonus of up to 35% and other incentives for qualifying affordable or senior housing developments. The City will update the Zoning Ordinance in conformance with SB 1818 to encourage the development of affordable and senior housing. To help inform developers and contractors of this incentive program, the City will provide brochures at the counter and provide information on the City's web site regarding the Density Bonus Program. Timing: The Code amendment will be presented to the City Council for adoption within six months of Housing Element certification. Brochures, website and other outreach elements of this program will be fully implemented during 2012. Funding: City General Fund. No new funding source will be required 2. Housing Sites Database Program Description: The City will ensure that adequate sites are available to accommodate its new housing need for the 2008 - 2014 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. The City will make the database available to property owners, investors, and builders at the Planning Department counter. Timing: This is an existing program to be continued Funding: General Fund. V-5 January 2012 City of Hermosa Beach Housing Element V. Housing Plan 5. Affordable Housing Development Outreach and Assistance Program Description: This program involves the 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. The City in 2010 conferred with a variety of nonprofits to identify specific actions the City can take to facilitate the development of affordable housing, including to extremely -low-, very -low - and low-income households. As a result of this consultation process, the City has added Program 7(k) to allow development of affordable housing within the C-3, SP-7 and/or SPA-8 zones, thereby expanding the lower -income site inventory by approximately 10 acres. The City will inform nonprofits of this program within 60 days of Housing Element adoption. Timing: Inform nonprofits of Program 7(k) within 60 days of Housing Element adoption. Funding: This program will be financed through the City's General Fund and grant funds. No new funding source will be required. 6. Fair Housing Program Description: The City provides assistance to local fair housing organizations to address complaints regarding housing discrimination within the City and to provide counseling in landlord/tenant disputes. This program includes a referral service in City Hall whereby a staff person provides materials (handouts, booklets, pamphlets, etc.) to the public. This information is also available to the public at the library and on the City's website. Timing: This program is ongoing and will continue through the planning period Funding: General Fund. No new funding source will be required. V-7 January 2012 City of Hermosa Beach Housing Element V. Housing Plan Second Units. Amend the R-1 zone regulations to administratively allow a second unit not exceeding 640 square feet occupied by one or two adults who are 60 years of age or older on lots 8,000 square feet or larger, provided the existing residence in which the second unit is to be located conforms to the City's parking code. A deed restriction restricting occupancy of the second unit is required. j. Housing by right. Amend the Zoning Code to clarify that a Precise Development Plan required in conjunction with a permitted use is a design review, rather than a determination of whether the use may be allowed. k. Affordable Housing Development Opportunity Sites. To accommodate the City's regional need of 240 units for lower -income households, General Plan and Zoning Code amendments will be processed to establish an affordable housing development overlay zone as follows: Affordable Housing Overlay 1. Applies to high -potential sites identified in Table B-6 located within the C-3 zone and zones that allow C-3 uses. 2. Owner -occupied and rental multi -family housing affordable to lower - income households is permitted on these sites by -right (subject only to Planning Commission approval of a non -discretionary Precise Development Plan controlling project design). • Base density is 33 units per acre (plus density bonus), and the minimum allowable density is 25 units per acre. • A minimum of 16 units can be accommodated and must be developed per project site. 3. This overlay zone will encompass a minimum of 4 acres comprising suitable sites to accommodate lower -income housing and shall be restricted so that owner -occupied and rental multi -family housing affordable to lower -income households is permitted by -right. Other development requires a conditional use permit, with the exception of the continuation, modification or change of an existing use in an existing structure provided said modification or change of use does not require a discretionary planning permit (e.g., precise development plan, parking plan, conditional use permit, or variance). • Approval of a CUP requires a finding that the non-residential development will not reduce or eliminate the capacity of available land to necessary to accommodate the remaining RHNA for lower - income households. • These sites are intended to satisfy the exclusive residential zoning requirement for 50% of the remaining lower -income RHNA. To implement the statutory requirement that 50% of the RHNA lower - income need is accommodated on sites zoned exclusively for V-9 January 2012 City of Hermosa Beach Housing Element V. Housing Plan a. The City will facilitate lot consolidation by: • Assisting affordable housing developers in identifying opportunities for lot consolidation using the City's GIS system and property database; • Continue to expedite processing for lot consolidations processed concurrently with planning entitlements, Amend the Zoning Code to provide a graduated density bonus for lower - income housing on small lots consolidated into a single building site according to the following formula: Combined Parcel Size Allowable Base Density* Less than 0.50 acre 33 units/acre 0.50 acre to 0.99 acre 34.7 units/acre 5% increase 1.00 acre or more 36.3 units/acre 10% increase) *Excluding density bonus • Publicize the program on the City's website, at the Planning counter, and by notice to affordable housing providers. b. The City will facilitate affordable housing development by: • Facilitating pre -application meetings; • Implementing incentives under the Density Bonus law; • Reducing on -site property development standards (e.g. reduced setbacks, reduced parking standards) for developments with affordable elderly or disabled housing units for small projects below the threshold of the Density Bonus law, • 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; • Promote programs on the City's website and at the Planning Counter and biennially notify affordable housing developers of the City's housing incentives. Timing: Process a Zoning Code amendment within six months of Housing Element certification; implementation throughout the planning period. Funding: General Fund. No new funding source will be required. V-11 January 2012 City of Hermosa Beach Housing Element Appendix A - Evaluation Appendix A Evaluation of the 2003 Housing Element Section 65588jaj 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. This appendix contains a review the housing goals, policies, and programs of the previous Housing Element, adopted in 2003, and evaluates the degree to which these programs have been implemented during the previous planning period. This analysis also includes an assessment of the appropriateness of goals, objectives and policies. The findings from this evaluation have been instrumental in determining the City's 2008 Housing Implementation Program. 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 evaluates the appropriateness of previous goals and policies, and identifies any changes that are called for in response to the City's experience during the past planning period. Based on this evaluation, all of the current Goals and Policies continue to be appropriate and have been retained. Table A-3 shows residential projects built during 2006 through 2008. All of these units are presumed to be above -moderate income. Table A-4 presents the City's progress in meeting the quantified objectives from the previous Housing Element. 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Methodology and Assumptions State law requires each city to include in the 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, development standards, and infrastructure, to accommodate the City's fair share of regional growth needs as identified in the Regional Housing Needs Assessment (RHNA). This analysis represents an estimate of the City's realistic development potential. Actual development will depend on the intentions of each property owner, market conditions and other factors. The detailed methodology and assumptions for the residential land inventory discussed in Chapter III are provided below and summarized in Tables B-1 through B-5. As discussed in Chapter III, the City has been allocated a growth need of 562 units during the 2006-2014 planning period. From 2006 through 2008 a total of 208 new units were built, all of which are assumed to be in the above -moderate income category (see Table A-3). Therefore, the City's remaining RHNA for the 2009-2014 period is 354 units distributed among income categories as shown in Table B-1. The RHNA methodology, which resulted in the allocation of 562 new housing units to Hermosa Beach (including 240 lower -income units), was based on the pattern of development comprised entirely of small parcel redevelopment. There are no significant vacant parcels in the city that could accommodate new housing developments of any appreciable size, including affordable projects. Table B-1 Net Remaining RHNA 9nng-mid Income Category Total VL Low Mod Above RHNA (total) 147 93 98 224 562 Units completed 2006-2008 0 0 0 208 208 RHNA (net remaining 2009-2014) 147 93 98 16 354 Source: Hermosa Beach Community Development Department, 2/2009 Affordability Assumptions In general, there are three alternative ways for determining the affordability level of new housing units - I. Affordability Covenants. The most definitive method is through required affordability covenants (i.e., requirements imposed upon or agreed to by the B-1 January 2012 City of Hermosa Beach Housing Element Appendix B - Land Inventory Zoning District Residential Use Allowed? Total Acreage Percentage of City Total R-1, R-1 SPA 2-6/9, MHP Yes -10.9 du/ac 240.0 39% R-2, R-2B Yes - 24.9 du/ac 112.8 19% R-3, R-P, R-3-PD, RPD Yes-33 dulac 100.1 1711, C-2, SPA-11 No 18.2 3% C-1 Yes -10 acres at 33 du/ac (mixed use or exclusive residential - see Program 7k) 2.9 0.005% C-3, SPA-7/8 Yes - 33 du/ac (Mixed use or exclusive residential -see Program 7k) 58.9 acres (10 acres residential) 10% (1 %residential) M-1 No 7.4acres 1% OS (all) No 65.1 acres 11% Totals 605 acres 100% As can be seen from this table, upon implementation of Program 7k approximately 757o of the land in the city will be zoned for residential use and over one-third of all land (36%) will accommodate multi -family residential development at densities greater than the state default for lower -income housing. Realistic Capacity As noted above, the R-2, R-2B, R-3, R-P and C-1 zones all permit residential development at greater than 20 units/acre. Review of development trends (see Appendix A, Table A-3) confirms that actual densities in all of these zones except R-2 and R-2B are typically greater than 20 units/acre. Average densities during the past three years for all projects in these zones are'shown in Table B-2. Although the average density of recent projects in the R-2 and R-2B zones was less than 20 units/acre, there were nine projects that exceeded that density, which demonstrates that development standards do not preclude owners from achieving the default density. Eight of these projects had parcel sizes of 1 /10 acre or less, which indicates that even very small parcels can be developed successfully in Hermosa Beach. Of the seven mixed -use projects built recently, five had densities greater than 20 units/acre and the average density of all projects was 30 units/acre. Small parcel size is clearly not a constraint to mixed -use development since the smallest parcels, several as small as 0.03 acre, had densities greater than 30 units/acre. B-3 January 2012 City of Hermosa Beach Housing Element Appendix B - Land Inventory parcels smaller than one -quarter acre. The City's unrealistically large RHNA allocation (562 units) relative to its small size (1.3 square miles and virtually no vacant land) was based on this pattern of small-scale redevelopment and SCAG's calculation of replacement need, which allocated approximately 40% of these units to the lower - income categories regardless of the type of units demolished or replaced or the size of lots upon which they were located and then replaced - Mixed -Use Development Potential The residential land inventory (Table B-5) includes one vacant parcel and six underutilized parcels with commercial zoning that allows mixed -use development. These underutilized parcels were identified as areas with the greatest potential for mixed -use development based on the nature, age and intensity of existing uses. Most are single -story buildings and ore more than 50 years old. Since the ratio of improvements value to land value is likely to be lower than for most other commercial parcels in the city, they were identified as high potential development sites. 4. Land Inventory Summary Table B-3 summarizes the City's land inventory compared to the remaining RHNA for each income category. The total capacity of vacant and underutilized sites has been calculated based on the allowable number of units for each site, and also using a realistic estimate based on the factors shown above in Table B-2. Using the realistic estimates of likely development based on recent trends, while there is a surplus of sites with realistic potential for residential redevelopment at a density greater than 20 units/acre (the state default density for lower -income housing in small urban cities) these underutilized sites were not accepted by HCD for purposes of accommodating the RHNA. In order to expand the potential for affordable multi -family housing, staff examined other areas of the city where underutilized sites exist and affordable housing may be feasible. Factors considered included parcel size and configuration, access, ownership, current and recent use, age and condition of structures, tenancy, and similar factors. The analysis focused on the C-3, SPA-7 and SPA-8 zones since these represent most of the non-residential land in the city. As a result of this analysis, Program 7k in the Housing Plan (Chapter V) was added to establish an overlay zone in the C-3, SPA-7 and SPA-8 zones where multi -family lower -income housing is permitted by -right. These districts are located along the City's primary transit corridor, Pacific Coast Highway, and are close to services and transportation. In order to assess the realistic capacity of these areas, parcels with the highest potential for lot consolidation and residential development have been further analyzed. This analysis identified five clusters of adjacent parcels having potential for lot consolidation and other characteristics that make them good candidates for residential development, such as common ownership, excellent access to transit and services, and economic underutilization (see Table B-6 and Figure B-2). These five high -potential affordable housing opportunity sites range in size from 0.36 acre to 5.2 acres and comprise a total of approximately 10 acres. At an allowable density of 33 units/acre, these sites could accommodate approximately 323 multi -family units excluding any density bonus, which exceeds the City's total RHNA allocation for lower -income housing in this planning period. However, given City incentives for lot consolidation and state- B-5 January 2012 City of Hermosa Beach Housing Element Appendix B — Land Inventory Table B-3 Land Inventory Summary vs. RHNA Income Category Lower Mod Above Total Units approved/under construction - 34 34 Vacant sites 8 - 8 Underutilized sites - - - R-1 (units permitted) - 17 17 Realistic estimate (100%) - 17 17 R-2/R-2B (units permitted) - 331 331 Realistic estimate (84%) 278 278 R-3 (units permitted) - 180 180 Realistic estimate (84%) - 151 151 R-P (units permitted) - 14 14 Realistic estimate (75%) - 11 11 C-1 (units permitted) - 12 12 Realistic estimate (80%) - 10 10 SPA-9 (units permitted) - 4 4 Realistic estimate (100%) 4 4 Subtotal (units permitted) 8 592 600 Subtotal (realistic) 8 505 513 RHNA (net 2009-2014) 240 98 16 354 Realistic Net Surplus (Deficit) (232) (98) 489 aources: rtermosa eeacn Community Development Dept., 1/2011 B-7 January 2012 Le C U Q 0 0 0 a n ¢ O E O o m TO D O -- .-. u m � � � o ✓� -E � i Y v 3 oM mrn Z5 y �n L 3 O c w - T N U Y O. 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N N 1� N N p N U N Q V a Q 1� N N N OJ N N N m O > a 0 0 Q rG a C� C 3 0 J U N U N 2 N N LY U rn � N N C N N A W>� N U W � O M M M M M M M M M M M M M M M M M M M M M M M M M M M M v C--------------------------- N J m c M( �J M M M M M M M. M. M o CL rt . o: M M d a a N m m d y Q Q > Q Q Q Q C m m m m fl] m m m N Y N d N d N y L L C.) in U cn [n in to a o E c c c c c c c c c c i, >, O m L L L L L L a 'a i m N m u� N V M S i i O 2 � M Q�i N I City of Hermosa Beach Housing Element Appendix B - Land Inventory Figure B-1 Residential Land Inventory , - —� Residential Land Inventory =' Vacant and Underutilized Sites 5 1 nn // 1 i 74 IS �h9li.� q0LN ,5_ L t 4V 1 r -_ o B-19 January 2012 C C w L U O N m O n y S � m n r r fad ds `o Y ^ c m m N a m o o c m C m i0 J v O m U m � C M it 1 a rn m� 2 co m �1 Q O e =.Ir CO x:� t E E CD o .> 0 m M 0 rn 0 � N % } N (V m City of Hermosa Beach Housing Element Appendix B - Land Inventory Figure B-2b Affordable Housing Overlay Zone 1 B-23 January 2012 City of Hermosa Beach Housing Element Appendix C - Public Participation Summary Appendix C Public Participation Summary This summary of Housing Element public -participation efforts 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. Public participation is an important component of the planning process, and this update to the Housing Element has provided residents and other interested parties, particularly representatives of lower -income and special needs persons, numerous opportunities for review and comment. Public notices of all Housing Element meetings and public hearings were published in the local newspaper in advance of each meeting, as well as posting the notices on the City's website. 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. The document was also made available 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 sent direct mail notice of public meetings for this Housing Element update. In addition, public hearings are televised on the local cable channel. 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. The following is a list of opportunities for public involvement in the preparation of this Housing Element update. Planning Commission Study Session City Council Study Session Planning Commission hearing City Council hearing City Council hearing City Council hearing City Council hearing Planning Commission hearing City Council hearing July 21, 2009 July 28, 2009 September 21, 2010 October 12, 2010 June 28, 2011 July 26, 2011 October 11, 2011 Table C-2 provides a summary of public comments offered during the public review process, while Table C-3 summarizes comments from affordable housing developers. C-1 January 2012 City of Hermosa Beach Housing Element Appendix C - Public Participation Summary Table C-2 Public Comment Summary Comment Response The City's RHNA allocation is unrealistic. The RHNA methodology is based on state law and was developed by SCAG. The high number is based on gross new units (not net) which reflects the potential for private redevelopment of existing parcels. The City's efforts toward preserving the No response necessary. Marineland Mobile Home Park are appreciated. The Housing Element contains a wealth of No response necessary information regarding the City's housing conditions and policies. C-3 January 2012 EXHIBIT B City of Hermosa Beach General Plan Land Use Element Amendment General Goals, Objectives and Implementation Policies 1. A new Goal 10 shall be added to page 26 of the General Goals, Objectives and Implementation Policies to read as follows: 1. GOAL 10: Notwithstanding anything to the contrary in this Land Use Element the City recognizes the need for available locations to accommodate the City's regional need for lower -income housing. The City should encourage development of lower -income housing creating an Affordable Housing Overlay Zone over existing commercially zoned properties to accommodate this need, as set forth in the Housing Element 2. Amend the General Commercial (GC) classification on page 27 in the Current Land Use Element to read as follows: General Commercial: The broadest and most intense category of uses; examples of such uses would be auto and truck related uses, lumber yard, equipment rental. Residential development or redevelopment to meet the needs of lower -income households may be permitted through an overly zone in limited locations, as defined by and in compliance with the Housing Element. 3. Amend the Commercial Corridor (CC) classification on pages 27-28 in the Current Land Use Element to read as follows: Commercial Corridor: The purpose of this land use category is to clearly define the limits of the depth of commercial development along Pacific Coast Highway and prohibit the development of new residential uses within the area with exceptions for vacant property not fronting on Pacific Coast Highway. Existing residential uses within the corridor are expressly allowed and can be improved, expanded and rebuilt to the same density; however, the transition of these uses to commercial usage is highly desirable. Residential development or redevelopment to meet the needs of lower -income households may be permitted through an overlay zone in limited locations as defined by and in compliance with the Housing Element. This category allows various types of commercial land uses including retail, service, and office uses. Automotive related commercial uses would be allowed by conditional use permit only. To ensure that commercial development will be compatible with existing nearby residential uses, standards for building height, parking and access setbacks, and landscaping will be implemented through Specific Plan Area designations. (City Council Resolution no. 89-5270) Implementation Policy 1.1-1 (Commercial Corridor): Traffic impact studies shall be required for projects which will cause significant traffic impacts and these studies shall include proposed measures to mitigate the impacts. All new commercial projects shall require Planning Commission Review to ensure compliance with the standards and policies of the Specific Plan Area, subject to City Council Appeal. A list of permitted uses shall be established which permits a broad range of commercial and office related uses with emphasis given to uses which have the highest benefit to the community. More than one SPA zone may be created for areas of the corridor based on the sub -areas' unique features. Orientation of all commercial development should be toward Pacific Coast Highway and not toward local residential streets. Physical setbacks and architectural treatment shall be provided where commercial and residential developments abut or interface. Assembled lots proposed for commercial development shall be merged as a condition of development. Existing structures used for residential purposes on a lot or parcel which is exclusively used for residential purposes are permitted to remain indefinitely, and shall be considered conforming uses, allowing said structure to be improved, rebuilt, or expended, as long as the existing residential density is not increased. Residentially developed and vacant property can only be used for commercial purposes if the property fronts on Pacific Coast Highway or is part of an assemblage of properties containing a commercial project which fronts on Pacific Coast Highway. New residential projects shall be prohibited, except in the following cases: a) On currently vacant lots or parcels of land which do not front on Pacific Coast Highway and which are not currently connected by ownership to lots fronting on Pacific Coast Highway and which will be developed to a density consistent with surrounding residential densities allowed by the General Plan, subject to review and approval by the Planning Commission; b) The improvement, expansion, or reconstruction of current residential structures which does not increase the current residential density (number of dwelling units) of the lot or parcel of land and said improvement, expansion, or reconstruction must conform to the zoning standards. c) Residential development or redevelopment to meet the needs of lower -income households may be permitted through an overlay zone in limited locations as defined by and in compliance with the Housing Element. Height limits and the method of measurement shall be established which will minimize impacts of commercial development on scenic views and on the privacy of adjacent residences. Landscaping requirements shall be established to improve the attractiveness of development along Pacific Coast Highway and to buffer interfacing or abutting residential development. 2 STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF HERMOSA BEACH I, Elaine Doerfling, City Clerk of the City of Hermosa Beach, California, do hereby certify that the foregoing Resolution No.12-6798 was duly and regularly passed, approved and adopted by the City Council of the City of Hermosa Beach at a Regular Meeting of said Council at the regular place thereof on April 24, 2012. The vote was as follows AYES: Bobko, DiVirgilio, Fishman, Tucker, Mayor Duclos NOES: None ABSTAIN: None ABSENT: None Dated: May 9, 2012 Elaine Doerfling, City Cl kj