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HomeMy WebLinkAboutStaff Report 5.B 12/01/2014DATE: December 1, 2014 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Sue Castellucci, Housing Coord'rator Scott Duiven, Senior Planner i SUBJECT: Resolutions Adopting a Negative Declaration of Environmental Impact for the 2015-2023 Housing Element and Amendments to the Text of the Implementing Zoning Ordinance and SmartCode; Resolution Amending the General Plan 2025 to Update the Housing Element to Include the 2015-2023 Housing Element: and, Introduction of an Ordinance Amending the hnplementing Zoning Ordinance and the SmartCode to Implement State Housing Element Law RECOMMENDATION It is recommended that the City Council adopt the attached: I ) Resolution Adopting a Negative Declaration of Environmental Impact for the 2015-2023 Housing Element and Amendments to the Tett of the Implementing Zoning Ordinance and SmartCode 2) Resolution Amending the City of Petaluma General Plan 2025 to Update the Housing Element to Include the 2015-2023 Housing Element 3) Ordinance of the City Council of the City of Petaluma Amending the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S. and the SmartCode, Ordinance No. 2470 N.C.S. to Implement State Housing Element Law BACKGROUND All Bay Area jurisdictions are required by State law to revise and adopt an updated Housing Element by January 31, 2015. Petaluma's 2015-3023 Housing Element revision is primarily a technical update to the 2009 Housing Element, which was prepared as part of an update to the General Plan. The Housing Element of the General Plan is unique in that it is the only chapter which requires outside review and certification by the California State Department of Housing and Community Development (HCD) and is on a state -mandated time frame. Therefore, the Housing Element is often seen as a "stand-alone" document. Petaluma's existing Housing Element was certified in 2009 and has resulted in expansion of the City's affordable housing units and programs, increased housing choice, revitalized existing housing and neighborhoods and created more energy efficient housing. HCD requires only that the existing Housing Element be updated, not crafted anew, as long as it includes the following components: • An evaluation of the 2009-2014 Housing Element. • A housing needs assessment, including the City's share of the regional housing need. • A residential sites inventory analysis. • A discussion of goventinental and non-government constraints on housing. • An inventory of resources available to meet housing needs. • The City of Petaluma's specific housing program goals, policies and programs. • Quantified objectives for the City in addressing its housing needs through 2023. Work on the Housing Element update began in October 2013. A community workshop was held in April 2014. The Draft Housing Element has been available for public review and continent since May 2014. Since the Draft Housing Element was released for public review on May 13, 2014, City staff has discussed changes to the Draft with I -ICD staff to ensure compliance with Stale law. In response to these discussions, City staff incorporated changes to the attached Draft Housing Element to ensure that the Housing Element is certified by HCD. in addition, the current housing element cycle requires that certain state mandates related to zoning be met prior to certification of the City's 2015-2023 Housing Element. The Planning Commission was asked to consider and provide a recommendation to the City Council on the following zoning provisions to address changes in State of California Housing Element Law. • Zonine for Emeraencv Shelters: Chapter 633, Statute of 2007 (SB2) requires that at least one zone shall be identified to pennit emergency shelters without a conditional use permit or other discretionary action. • Zoninu for Transitional and Sunoortive Housin: Transitional and supportive housing shall be considered a residential use and only subject to those restrictions that apply to other residential uses of the same type in the same zone. • Density Bonus Ordinance: State law requires that counties and cities adopt local legislation to implement the requirements of the State's residential density bonus law (Government Code Section 65915). Planning Commission Hearing — October 28, 2014 The Planning Commission held a public hearing to provide comments and receive public testimony on the Draft Negative Declaration, Draft 2015-2023 I-[ousing Element, and proposed text amendments to the Implementing Zoning Ordinance and SmartCode at its meeting on October 28, 2014. Comments at the meeting were received from Petaluma Ecumenical Properties (PEP Housing) relating to the inclusionary policy (Policy 4.2, Program 4.3). No other public comments were received. A more detailed discussion of this input is included later in this report. The Planning Commission did not recommend any changes to the draft documents. After receiving public comments and conducting its own discussion of the documents, the Planning Commission unanimously adopted resolutions recommending adoption of a Negative Declaration for the project, recommending to the City Council approval of the 2015-2023 Housing Element, and recommending adoption of test amendments to the Implementing Zoning Ordinance and SmartCode (Attachments 7, 8, 9). DISCUSSION Draft 2015-2023 Housing E(enrent The Housing Element's introduction provides a portrait of Petaluma and a recitation of Housing Element Law. The updated document has been deemed to be internally consistent with the City's General Plan 2025. The City's community participation efforts in the preparation of the document followed the policies and procedures of the Citizen Participation Plan and the City's public noticing requirements. Housing Element law requires local governments to adequately plan to meet their existing and projected housing needs including their share of the Regional Housing Need Allocation (RHNA). HCD is required to allocate each region's share of the statewide housing need to regional Councils of Governments. In Petaluma's case, that is the Association of Bay Area Governments (ABAG). The REINA process requires local governments to be accountable for ensuring that projected housing needs can be accommodated. The process maintains local control over where and what type of development occurs in local communities while providing for the private sector to meet market demand. ABAG has assigned to Petaluma the following housing need by Area Medium Income (AMI) category: Regional Housing Need Allocation associalion gfl3gvarea Governments Currently, there are no proposed affordable housing projects submitted to the Planning Department. While there is adequate, appropriately zoned land available to meet the numbers assigned by ABAG (see Appendix L — Residential Sites Inventory Analysis), there is a challenging fiscal reality involved in meeting the City's RI -INA assignment. With the loss of redevelopment, the City does not have funds to "bridge the gap" to allocate funds to nonprofit developers to build affordable housing. The 2014 estimated cost per unit of building affordable units is approximately $325,000. The following table shows the cost to accommodate Petaluma's "fair share" using that estimated cost. Very Low Income Low income Moderate Income Above Moderate Total $64.6 Million $33.4 Million $39.2 Million N/A $137.2 Million Belore the dissolution of Petaluma's redevelopment agency, the City could leverage outside dollars to local dollars at a historic rate of 10:1. Using that formula, the City would need $13.7 Million to allocate for the development of affordable housing for its RI -INA numbers during the 2015-2023 Housing Element period. Estimated funding from our in Lieu Housing Fund over that same time period is potentially $8,000,000 leaving a shortfall of $5.7 Million which assumes that ALL housing funds would be allocated to new development, allowing no rehabilitation programs, no rent subsidies, or support of other vital special needs programs. Over the past twenty years, with the exception of the 2009-2014 RI -INA numbers, the City has not only met, but surpassed our assigned RHNA share and the expectation is that every attempt will be made to utilize all possible resources to continue building affordable housing in Petaluma. An evaluation of the existing 2009-2014 Housing Element's policies and programs is presented describing their effectiveness (Appendix B). During the 2009-2014 Housing Element, the following services and housing have been provided: 100 shelter beds were provided on an annual basis: 35 transitional housing beds were provided on an annual basis; 249 new affordable housing rental units were developed; 369 housing units were rehabilitated: and innumerable ongoing housing services and housing opportunities were provided to our low income and disabled communities. A housing needs assessment is presented reviewing the City's population, economic, and housing characteristics, using the latest data available. This information is presented in Appendix A of the Housing Element. Summary of Housing Goals The 2015-2023 Housing Element update is not a comprehensive revision of the existing housing element. The 10 overall goals remain the same with limited new policies and programs aimed at responding to current conditions. A summary of the housing goals and changes are described below: Goal 1 — Housing Supply: Provide adequate residential development opportunities to accommodate projected residential growth and facilitate mobility within the ownership and rental markets. ® No substantive changes were made that would have the potential for an adverse impact at a policy or program level. The Residential Site Inventory Analysis shows adequate residential sites available for the development of a wide range of housing types, both affordable and market rate. 11 Goal 2 — Housing Variety: Promote a range of housing types to meet the housing needs of all Petalumans. SB 745 amencled California Governme7t Code Seclion 65582 to replace prior Health and Sgfety Code deffiiliorns of "supportive housing", "target population" and 'transitional housing" with definitions noir more specific to housing element law. ® Changes are proposed to the Implementing Zone Ordinance and the SmartCode to ensure that they define transitional and supportive housing as residential uses, subject only to those restrictions on residential uses contained in each zone. The changes do not have the potential for an adverse impact at a policy or program level. Staff has always treated these uses consistent with State law. These changes bring the Housing Element and zoning into compliance with State law. o Program 2.3 was modified to comply with the above change. Staff has updated the definitions to the glossary of both the Implementing Zoning Ordinance (new Chapter 28) and the SmartCode (Section 9) to be in compliance with this amendment. o The proposed definitions are further supported by Policy 2.2, Program 2.3 of the 2015-2023 Housing Element which states: "Treat transitional and supportive housing as residential uses, subject only to those restrictions on residential uses contained in each respective zone." Goal 3 — Development Constraints: Minimize constraints on housing development to expedite construction and lower development costs. SB 2(3007) amends Califoroia Government code Sec•li07s 65582, 65583, and 65589.5 to require local jurisdictions to strengthen provisioms.for addressing the housing needs of the homeless, including the identification of sones in which emergence shelters are permitted without Coilditional use permits or other discretionary debar. SB 1818 significantly amended California Code Section 61915. Effective January 1, 3005, the changes required local jurisdictions to adopt a density bonus 01-du7ance in their local codes. ® Changes are proposed to the Implementing Zoning Ordinance (IZO) to address the housing needs of the homeless by implementing specific zones to permit homeless shelters. A new chapter of the Petaluma Municipal Code is proposed to implement the Residential Density Bonus Ordinance. The changes do not have the potential for an adverse impact at a policy or program level as they bring the Housing Element and zoning into compliance with State law and serve to facilitate the approval of Emergency Shelters and to incentivize affordable housing by increasing the economic feasibility of projects through the density bonus implementation. o Staff has proposed updated regulations to the IZO to make emergency shelters permitted by right in the Industrial zone and allowed subject to a CUP in the Civic F Facility zone. Proeram 3.2 was modified from `Ensure that the Development Code update identifies the "Mixed Use" and "Civic Facilities" zones as permitting emergency shelters without a Conditional Use Permit or other discretionary action." to "Continue to permit emergency shelters without a Conditional Use Permit or other discretionary action on industrial zoned parcels." o Staff has proposed a new Chapter 27 (Residential Density Bonus Ordinance) to be included in Title 21 of the Petaluma Municipal Code to implement Government Code Section 65915 in accordance with State Law. The existing Chapter 27: Glossary will be reassigned as Chapter 28. Proeram 3.3 of the 2009-2014 Housing Element was changed to reflect the proposed Residential Density Bonus Ordinance to "Enforce procedures and standards for density bonuses and other incentives required by state law to facilitate the review and approval of projects proposing affordable housing." Goal 4 — Affordable Housing: Promote the development of housing affordable to extremely low, very low, low and moderate -income households. ® Changes were made to reflect the dissolution of Petaluma's redevelopment agency. Some programs were deleted due to funding shortages. Because of that funding shortage, the inclusionary housing program was modified to provide flexibility for owner/developers to fulfill their inclusionary requirement within a Y mile radius of the planned SMART stations. The changes do not have the potential for an adverse impact at a policy or program level. Flexibility in the City's inclusionary policy has resulted in the successful implementation of all 32 of the City's affordable housing developments accounting for 1,496 units, all of which have been achieved without mandating on-site units. o Program 4.1 was deleted due to the dissolution of Petaluma's redevelopment agency. o Program 4.3(b) (4.4 in prior Housing Element) was revised to change the requirement from `shall" to "encourage" developers to provide at least 15 percent of the units in a rental housing project at rents affordable to very low and low income households. This change will provide more flexibility to owners/developers of projects in the % mile radius of the planned SMART stations. Goal 5 — Preservation of Affordability: Preserve the City's existing affordable housing and ensure the long-term affordability of new below-market rate units. ® On a recommendation from HCD, changes were made to Policy 5.1 — "Preserve the affordability of the City's existing affordable housing stock", to add a program describing the procedures to retain subsidized affordable units. The change does not have the potential for an adverse impact at a policy or program level. 6 o Staff has added under Policy 5.1 — Program 5.3 which states '`Retain federal, state -,old locally subsidized affordable units that may be lost through contract termination by utilizing the following techniques. Continue to monitor, at least every two years, at risk units and to wort: with property owners to maintain the projects for lower incomes through extending any subsidized contracts." Goal 6 — Special Needs Housing: Promote housing opportunities for special needs groups. • Changes were made to reflect the dissolution of Petaluma's redevelopment agency. Some programs were deleted due to funding shortages. The changes below do not have the potential for an adverse impact at a policy or program level. o Program 6.4 of the prior Housing Element was deleted due to loss of redevelopment funds. The City can no longer fiord this program. The Salvation Army has partnered with our affordable housing properties to provide housing for their clients. o Program 6.10 of the prior Housing Element was deleted due to loss of redevelopment funds. Disability Services and Legal Center is partnering with Rebuilding Together to serve the disabled population of Petaluma as needed. • Changes were made to satisfy SB 812 which requires local governments to include an analysis of the special housing needs of persons with developmental disabilities. This can be found in Appendix A, page 19 of the 2015-2023 Housing Element. o Policy 6.5 was revised to include the developmentally disabled population in the definition of disabled. o Program 6.12 under Policy 6.5 was revised to include the developmentally disabled population in the definition of disabled. Goal 7 — Fair Housing: Promote a choice of housing types and locations available to all persons, regardless of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, source of income, age, marital status, medical condition or disability. Government Code Section 65583 (c)(3) requires the housing element provide a program to address the governmental constrains to the maintenance, improvement cord development ofhomsimgfor persons with disabilities • Changes were made to include the above Government Code requirement in our fair housing policy. The change below does not have the potential for an adverse impact at a policy or program level. o Program 7.3 was added to Policy 7.1 to develop a reasonable accommodation procedure to ensure persons with disabilities have equal access in accordance with fair housing laws. 7 Goal 8 — Housing Maintenance: Preserve and improve the City's existing housing stock. • No substantive changes were made that would have the potential for an adverse impact at a policy or program level. Goal 9 — Community Relations: Promote the integration of affordable and special needs housing with existing neighborhoods. • No substantive changes were made that would have the potential for an adverse impact at a policy or program level. Goal 10 — Energy Conservation: Encourage energy conservation in housing. • No substantive changes were made that would have the potential for an adverse impact at a policy or program level. State Certification The Housing Element is the only element of the General Plan that is required to undergo review and certification from the State of California. Review by HCD began on May 13, 2014. City staff had a conversation with HCD about the Draft Housing Element where they proposed some changes. On July 15, 2014 HCD provided a letter acknowledging that the Draft Housing Element has been found adequate and in compliance with the State law with the changes identified above. (See Attachment 96) Zoning Updates - As noted in the summary of the Draft Housing Element Update above, State law requires certain zoning updates prior to certification of the Housing Element. Chapter 633, Statute of 2007 (S132) clarifies and strengthens housing element law to ensure zoning, encourages and facilitates emergency shelters, and limits the denial of emergency shelters and transitional and supportive housing tinder the Housing Accountability Act. The law is aimed at facilitating efforts to address the critical needs of homeless populations and persons with special needs. In accordance with the statute, the 2009-2014 Housing Element included Policy 2.2 (Program 2.3) requiring that zoning be updated to define transitional and supportive housing as residential uses, subject only to those restrictions on residential uses contained in each respective zone. Ennereencv Shelters. Chapter 633, Statute of 2007 (SB2) clarifies and strengthens housing element law to ensure zoning, encourages and facilitates emergency shelters, and limits the denial of emergency shelters under the Housing Accountability Act. The law requires that at least one zone shall be identified to permit emergency shelters without a conditional use permit or other discretionary action. Currently emergency shelters are allowed subject to a CUP in the T4, T5, T6, T6-0, D2, and D4 zones of the Central Petaluma Specific Plan's SmartCode and is not identified, other than by definition in the Implementing Zoning Ordinance. Staff proposes changes to the Implementing Zoning Ordinance to make emergency shelters permitted by right in the Industrial zone and allowed subject to a CUP in the Civic Facility zone. Staff recommends the industrial zone for the following reasons: • Lowest potential for neighborhood impacts. • Geographically dispersed opportunity sites. • The former shelter at the armory is located within the industrial zone. Commercial, Business Park, and Industrial Zones TABLE 4.4 Allowed Land Uses and Permit Requirements for Commercial, Business Park, and Industrial Zones LAND USE TYPE (1) RESIDENTIAL Emeroencv Shelter P(16) Permitted Use CUP Conditional Use Permit Required S Permit Requirement in Specific Use Regulations A Accessary Use — Use Not Allowed Permit Required by Zone Specific Use C1 I C2 I BP I I Regulations I- I = I -1P1 Staff is further recommending adding emergency shelters as an allowed use subject to a CUP in the Civic Facilities zone, which includes 1500 Petaluma Boulevard South where the Committee on the Shelterless formerly operated its family emergency shelter as well as schools and meeting- halls eetinghalls which also may serve as emergency shelters in response to natural disasters. Civic Facility Zone TABLE 4.5 Allowed Land Uses and Permit Requirements for Civic Facility Zone LAND USE TYPE (1) RESIDENTIAL Emeroencv Shelter P(16) Permitted Use CUP Conditional Use Permit Required S Permit Requirement in Specific Use Regulations A Accessory Use — Use Not Allowed Permit Required by Zone Specific Use CF Regulations CUP In addition to the proposed changes to the above tables, staff is recommending that the definition of emergency shelter be updated in both the TZO and SmarlCode to conform to Gov. 65582(d), Health & Safety 50801 as follows: • Emergency Shelter. Emergency shelter means housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. Transitional and Suonortive Housing. Transitional housing is a type of supportive housing used to facilitate the movement of homeless individuals and families to permanent housing. A homeless person may live in a transitional apartment for up to two years while receiving supportive services that enable independent living. Supportive housing is permanent rental 9 housing linked to a range of support services designed to enable residents to maintain stable housing and lead fuller lives. Transitional and supportive housing by law must be considered a residential use and only subject to those restrictions that apply to other residential uses of the same type in the same zone. In other words, transitional housing and supportive housing are permitted in all zones allowing residential uses and are not subject to any restrictions (e.g., occupancy limit) not imposed on similar dwellings (e.g., single family home, apartments) in the same zone in which the transitional housing and supportive housing is located. Transitional housing, while defined in the Implementing Zoning Ordinance, is not identified as an allowed land use anywhere within the use tables and there is currently no definition of Supportive Housing. The SmartCode does not address transitional and supportive housing at all. However, to date staff has treated transitional and supportive housing in the manner required by state law; these proposed changes, along with Policy 2.2, Program 2.3 of the 2015-2023 Housing Element, will bring our zoning codes into compliance with Section 65582 of the Government Code. The current definition of Transitional Housing in Chapter 27 of the Implementing Zoning Ordinance will be deleted and replaced. The following definitions will be added to the glossary of both the Implementing Zoning Ordinance (new Chapter 28) and the SmartCode (Section 9). These definitions conform to State Housing Element Law, specifically AB 745 (Chapter 183, Statutes of 2013). • Transitional Housing. Buildings configured as rental housing developments, but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance. Transitional housing is a residential use subject to only those restrictions that apply to other residential uses of the same type in the same zone. • Supportive Housing. Housing with no limit on length of stay, that is occupied by the Target Population, and that is linked to an onsite or offsite service that assists the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Supportive housing is a residential use subject only to those restrictions that apply to other residential uses of the same type in the same zone. • Target Population. Persons with low incomes who have one or more disabilities, including mental illness, I-IIV or AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Developmental Disabilities Services Act (Division 4.5 [commencing with Section 4500] of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people. 10 The proposed definitions above are further supported by Policy 2.2. Program 2.3 of the 2015- 2023 Housing Element which states: "Treat transitional and supportive housing as residential uses, subject only to those restrictions on residential uses contained in each respective zone." Densitv Bonus Ordinance. The State's Density Bonus Law (Government Code Section 65915) was first adopted in 1979. The law allows developers who offer affordable units in their developments a density bonus above what the zoning ordinance would typically allow. This law was further updated in 2004 when the State Legislature passed SB1818, which significantly amended Section 65915. Effective January 1, 2005, the changes required local jurisdictions to adopt a density bonus ordinance in their local codes, requiring: ® A sliding scale of density bonuses up to 35% depending on the number and type of affordable units provided. ® A density bonus for development ora child care facility. o Provision for up to three development concessions or incentives, depending on the number of affordable units provided. ® A density bonus if land is donated for very low income housing. Policy 3.2 (Program 3.3) of the 2009-2014 Housing Element requires the City to adopt procedures and standards for density bonuses and other incentives required by state law to facilitate the review and approval of projects proposing affordable housing. Adopting a local ordinance will make the State requirements more clear and accessible for developers and citizens and will allow the City to define what "concessions" the City would like to oiler and Under which circumstances. Without a local ordinance, developers would have broad flexibility in requesting concessions and the City would have limited flexibility to deny them. To accomplish this, staff is recommending a new Chapter 27 (Residential Density Bonus) be added to the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S. to implement Government Code Section 65915 in accordance with State Law. The existing Chapter 27: Glossary in the Implementing Zoning Ordinance will be renumbered as Chapter 28. The proposed ordinance follows: Chapter 27 — Residential Density Bonus Sections: 27.010 Purpose and Intent 27.020 Definitions 27.030 Eligibility Criteria 27.040 Density Bonus Calculation 27.050 Development Standards for Affordable Units 27.060 Density Bonus for Development of Child Care Facility 27.070 Development Concessions and Incentives 27.080 General Application Requirements 27.090 Density Bonus Housing Agreement 27.010 — Purpose and Intent This chapter is intended to provide incentives for the production of housing for Very Low, Lower Income, Moderate or Senior Housing in accordance with California state law. The purpose of this chapter is to: a) Comply with the state density bonus law in accordance with the requirements California Government Code Section 65915 and amendments and successor statutes. b) Establish procedures for implementing the state density bonus requirements as set forth in California Government Code Section 65915, as amended. c) Facilitate the development of affordable housing consistent with the goals, policies, and programs of the City's Housing Element. 27.020 — Definitions Whenever the following terms are used in this chapter, they shall have the meaning established by this section: A. Affordable Rent. Monthly housing expenses, including a reasonable allowance for utilities, for Rental Restricted Affordable Units reserved for Very Low or Lower Income Households, not exceeding the following calculations: 1. Very Low Income: 50 percent of the area median income for Sonoma County, adjusted for household size, multiplied by 30 percent and divided by 12. 2. Lower Income: 60 percent of the area median income for Sonoma County, adjusted for household size, multiplied by 30 percent and divided by 12. B. Child Care Center. See the definition of "Child Care Center" in Glossary C. Concession or Incentive. Used interchangeably means such regulatory concessions as specified in California Government Code Section 65915 subdivisions (d) and (h) including, but not limited to, the reduction of site development standards or zoning code requirements, direct financial assistance, approval of mixed use zoning in conjunction with the Housing Development, or any other regulatory incentive which would result in identifiable cost avoidance or reductions that are offered in addition to a Density Bonus. See Section 27.070 of this chapter. D. Density Bonus. A density increase for residential units over the otherwise allowed residential density under the applicable zoning and land use designation on the date an application is deemed complete. E. Density Bonus Housing Agreement. A legally binding agreement between a developer and the City to ensure that the requirements of this chapter are satisfied. The agreement, among other things, shall establish: the number of Restricted Affordable Units, their size, location, terms and conditions of affordability, and production schedule. See Section 27.070 of this Chapter. F. Density Bonus Units. Those residential units granted pursuant to the provisions of this chapter which exceed the otherwise Maximum Residential Density for the development site. G. Housing Cost. The sum of actual or projected monthly payments for all of the following associated with for -sale Restricted Affordable Units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowner association fees, and a reasonable allowance for utilities. 12 H. Housing Development. Construction projects consisting of five or more residential units, including single family, multifamily, and mobilehomes for sale or rent, pursuant to this chapter. I. Low Income Household. Households whose income does not exceed the lower income limits applicable to Sonoma County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the California Health and Safety Code. J. Maximum Residential Density. The maximum number of residential units permitted by the City's General Plan Land Use Element and Zoning Ordinance at the time of application, excluding the provisions of this chapter. If the housing development is within a planned unit development zone, the maximum residential density shall be determined on the basis of the general plan and the maximum density of the underlying zone. K. Moderate Income Household. A household whose gross income does not exceed 120 percent of the area median income for Sonoma County as published and periodically updated by the State Department of Housing and Community Development pursuant to Sections 50079.5 and 50052.5 of the California Health and Safety Code. L. Non -Restricted Unit. All units within a Housing Development excluding the Restricted Affordable Units. M. Qualifying Resident. Senior citizens or other persons eligible to reside in Senior Citizen Housing. N. Restricted Affordable Unit. A dwelling unit within a Housing Development which will be available for Moderate Income Households or Very Low and/or Low Income Households. O. Senior Citizen Housing. A Housing Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3. P. Very Low Income Household. Households whose income does not exceed the very low income limits applicable to Sonoma County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50105 of the California Health and Safety Code. 27.030 — Eligibility Criteria A. The City shall grant either: a Density Bonus, or a Density Bonus with a Concession or Incentive(s), as set forth in Section 27.070 of this Chapter, to an applicant or developer of a Housing Development, who agrees to provide one of the following: 1. At least ten percent of the total units of the Housing Development as Restricted Affordable Units affordable to Lower Income Households; or 2. At least five percent of the total units of the Housing Development as Restricted Affordable Units affordable to Very Low Income Households; or 3. A Senior Citizen Housing Development, as defined herein, or 4. Ten percent of the total dwelling units in a common interest development as defined in Civil Code section 4100 for persons and families of Moderate Income Households as 13 defined herein, provided that all units in the development are offered to the public for purchase. 27.040 — Density Bonus and Incentive or Concession Calculation A. The City will allow a Housing Development a Density Bonus and/or a Concessions or Incentive if it meets all the applicable requirements of this chapter. In the event that the minimum requirements for granting a Density Bonus or Concessions or Incentives as set forth in California Government Code section 65915 are amended or modified after the adoption of this chapter by the City, then the lowest applicable minimum requirements in section 65915 or successor statutes shall apply. B. When calculating the required number of Restricted Affordable Units, any resulting decimal fraction shall be rounded to the next larger integer. C. Densitv Bonus for Low Income Households: If a housing developer elects to construct units for Low Income Households, the Housing Development shall be entitled to a density bonus according to the following Density Bonus calculation: Provision of Low Income Units Percentage Percentage Number of Low Income Density Bonus Incentives or Units Concessions 10% 20% 1 11% 21.5% 1 12% 23% 1 13% 24.5% 1 14% 26% 1 15% 27.5% 1 16% 29% 1 17% 30.5% 1 18% 32% 1 19% 33.5% 1 20% 35% 2 30% 35% 3 D. Densitv Bonus for Very Low Income Households: If a housing developer elects to construct units for Very Low Income Households, the Housing Development shall be entitled to a density bonus according to the following Density Bonus calculation: Provision of Very Low Income Units Percentage Percentage Number of Very Low Density Bonus Incentives or Income Units Concessions 5% 20% 1 6% 22.5% 1 7% 25% 1 8% 27.5% 1 9% 30% 1 10% 32.5% 2 11% 35% 2 15% 35% 3 14 E. Densitv Bonus for Moderate Income Households: If a housing developer elects to construct units for Moderate Income Households, the Housing Development shall be entitled to a density bonus based on the following Density Bonus calculation: Provision of Moderate Income Units Percentage Percentage Number of Moderate- Density Bonus Incentives or Income Units 15% Concessions 10% 5% 1 11% 6% 1 12% 7% 1 13% 8% 1 14% 9% 1 15% 10% 1 16% 11% 1 17% 12% 1 18% 13% 1 19% 14% 1 20% 15% 2 21% 16% 2 22% 17% 2 23% 18% 2 24% 19% 2 25% 20% 2 26% 21% 2 27% 22% 2 28% 23% 2 29% 24% 2 30% 25% 3 31% 26% 3 32% 27% 3 33% 28% 3 34% 29% 3 35% 30% 3 36% 31% 3 37% 32% 3 38% 33% 3 39% 34% 3 40% 35% 3 F. Densitv Bonus for Land Donation: When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land that satisfies the requirements as set forth in subsection 3 of this section, the applicant shall be entitled to a fifteen percent density increase above the otherwise maximum allowable residential density for the entire development calculated as follows: Land Donation Percentage Percentage Very Low- Density Bonus Income Units 10% 15% 11% 16% 15 12% 17% 13% 18% 14% 19% 15% 20% 16% 21% 17% 22% 18% 23% 19% 24% 20% 25% 21% 26% 22% 27% 23% 28% 24% 29% 25% 30% 26% 31% 27% 32% 28% 33% 29% 34% 30% 35% 1. Nothing in this chapter shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development. 2. The Density Bonus for land dedication shall be in addition to any other Density Bonus earned pursuant to this section, up to a maximum combined increased density of thirty- five percent above the otherwise maximum allowable residential density for the entire development. 3. An applicant donating land shall be eligible for the increased Density Bonus described in this Section if all the following conditions are met: a.The applicant donates and transfers the land to the City, or to a housing developer approved by the City, no later than the date of approval of the City of the final subdivision map, parcel map, or Housing Development Application for the proposed Housing Development seeking the Density Bonus. b,The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to Very Low Income Households in an amount not less than ten percent of the number of residential units of the proposed Housing Development seeking the Density Bonus. c. The land proposed to be donated to the City: i. is at least one acre in size or sufficient size to permit development of at least 40 residential units; and ii. has the appropriate General Plan designation and is appropriately zoned for development at the density described in paragraph (3) of subsection (c) of Government Code section 65583.2 and successor statutes; and iii. is or will be served by adequate public facilities and infrastructure; and iv. is donated no later than the date of approval of the final subdivision map, parcel map or Housing Development application seeking a Density 16 Bonus and has all of the permits and approvals, other than building permits, necessary for the development of the Very Low Income housing units on the transferred land; and V. is within the boundary of the proposed development or within one-quarter mile of the boundary of the proposed development; and vi. has a proposed source of funding for the very low income units prior to the approval of the final subdivision map, parcel map, or Housing Development application seeking the Density Bonus. 27.050 — Development Standards for Affordable Units A. Restricted Affordable Units shall be constructed concurrently with Non -Restricted Units unless both the City and the applicant agree within the Density Bonus Housing Agreement to an alternative schedule for development. B. Restricted Affordable Units shall remain restricted and affordable for a period of 30 years. The City may require a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. C. In determining the maximum Affordable Rent or Affordable Sales Price of Restricted Affordable Units, the presumed household size as set forth in the City's Housing Program shall be used, unless the Housing Development is subject to different assumptions imposed by other federal or state regulations. Restricted Affordable Units shall be built on-site and be dispersed within the Housing Development, except as permitted in subsection E of this Section. The number of bedrooms of the Restricted Affordable Units shall be equivalent to the bedroom mix of the Non -Restricted Units in the Housing Development; except that the applicant may include a higher proportion of Restricted Affordable Units with more bedrooms. The design, appearance and general quality of the Restricted Affordable Units shall be comparable and compatible with the design of the Non - Restricted Units in the Development. The Development shall comply with all applicable Development Standards, except those which may be modified as provided by this chapter. E. Circumstances may arise in which the public interest would be served by allowing some or all of the Restricted Affordable Units associated with one Housing Development to be produced and operated at an alternative development site. Where the applicant and the City so agree, the resulting linked developments shall be considered a single development for purposes of this chapter. Under these circumstances, the applicant shall be subject to the same requirements of this chapter for the Restricted Affordable Units to be provided on the alternative site. F. A Density Bonus Housing Agreement, as described in Section 27.090, shall be made a condition of the discretionary permits for all Developments subject to this chapter. The Density Bonus Housing Agreement shall be recorded as a deed restriction on the parcel or parcels on which the Restricted Affordable Units will be constructed. 27.060 — Density Bonus for Development of Child Care Center A. A Housing Development meeting the requirements of Sections 27.030, 27.040, and 27.050 above and including a Child Care Center that will be located on the premises of, as part of, or adjacent to, such a Housing Development shall receive either of the following: 1. An additional Density Bonus in an amount of square feet of residential space that is equal to or greater than the amount of square feet in the Child Care Center; or 17 2. An additional Incentive or Concession pursuant to Section 27.070 which results in an identifiable cost reduction or avoidance. B. When a Housing Development is providing a Child Care Center in accordance with this chapter, then the project conditions of approval shall require that: 1. The Child Care Center care shall remain in operation for a period of time that is as long as or longer than the period of time during which the affordable units are required to remain affordable, and 2. Of the children who attend the Child Care Center, the children of Very Low Income Households, Lower Income Households, or persons or families of Moderate Income shall equal a percentage that is equal to or greater than the percentage of affordable units that are required pursuant to Section 27.040. C. The City shall not be required to provide a Density Bonus or Incentive or Concession for a Child Care Center if it makes a written finding, based upon substantial evidence, that the City has adequate Child Care Centers. 27.070 — Development Concessions and Incentives A. Subject to subsection B of this Section, the City shall provide a Concession or Incentive, for qualified Housing Developments, upon the written request of an applicant. The number of Concessions or Incentives provided shall be as follows: 1. For a Housing Development that provides either 5% of the units affordable to Very Low income households, or 10% of the units affordable to Lower income households, the developer is entitled to one Concession or Incentive. 2. When the number of affordable units is increased to 10% Very Low income units, or 20% Lower income units, the developer is entitled to two Concessions or Incentives. 3. When the number of affordable units is increased to 15% Very Low income, or 30% Lower income, the number of Concessions or Incentives is increased to three. B. The City may grant any one of the following as a Concession or Incentive: 1. A waiver or modification of site development standards or a modification of zoning code or architectural design requirements. These include one or more of the following (each item below is considered a Concession or Incentive): a. Reduced minimum lot sizes and/or dimensions. b. Reduced minimum lot setbacks c. Reduced minimum outdoor and/or private outdoor living area. d. Increased maximum lot coverage e. Increased maximum building height and/or stories. f. Reduced on-site parking standards, including the number or size of spaces and garage requirements. g. Reduced minimum building separation requirements. 18 h. Reduced street standards, e.g., reduced minimum street widths. 2. Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located. 3. Other Incentives or Concessions proposed by the developer or the City which result in identifiable cost reductions or avoidance. C. Upon request by the applicant, the City shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following: 1. Zero to one bedrooms: one onsite parking space. 2. Two to three bedrooms: two onsite parking spaces. 3. Four and more bedrooms: two and one-half parking spaces. If the total number of parking spaces required for a Housing Development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subsection, a Housing Development may provide onsite parking through tandem parking or uncovered parking, but not through on -street parking. D. The City shall grant Incentive(s) or Concession(s) requested by the applicant unless the City can make a written finding, based upon substantial evidence, of any of the following: 1. The Incentive or Concession is not required in order to provide for affordable housing to Very Low, Low, or Moderate Income Households. 2. The Incentive or Concession would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public health and safety or physical environment or any real property that is listed on the California Register of Historical Resources and for which the City determines there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Housing Development unaffordable to Very Low, Low, and/or Moderate Income Households. 3. The Incentive or Concession would be contrary to state or federal law. 27.080 — General Application Requirements A. An application for a Density Bonus, Incentive or Concession shall be made as follows: An application for a density bonus, incentive, concession, waiver, modification or revised standard shall be submitted with the first application for a permit for a Housing Development and shall be processed concurrently with those permits. The application shall be on a form prescribed by the Community Development Director and shall include the following information: a. A brief description of the proposed Housing Development, including the total number of dwelling units, Restricted Affordable Units, and Density Bonus Units proposed. 19 b. The zoning and general plan designations and assessor's parcel number(s) of the project site, and a description of any Density Bonus, Incentive, or Concession, requested. c. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. d. If a Concession or Incentive is requested, the application shall provide evidence as to why the Concession or Incentive is necessary to provide the Restricted Affordable Units in accordance with Section 27.070 of this Chapter. Such evidence shall include, but is not limited to an explanation as to the actual cost reduction achieved through the concession or incentive and how the cost reduction allows the applicant to provide the Restricted Affordable Units, and any supporting documentation. e. Level of affordability of the Restricted Affordable Units and proposed method to ensure affordability. f. If a Density Bonus or Concession or Incentive is requested for a land donation, the application shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) and Section 27.040 (F) can be made. 2. In accordance with State law, neither the granting of a Concession or Incentive, nor the granting of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval. 3. This Chapter implements State Density Bonus Law. Any Density Bonus, Incentive or Concession sought by an Applicant shall be made pursuant to this chapter and may not be combined with similar requests under State Density Bonus law. 27.090 — Density Bonus Housing Agreement A. Applicants for a Density Bonus, Incentive or Concession shall enter into a Density Bonus Housing Agreement (Agreement) with the City, approved by the City Council. B. Following execution of the Agreement by all parties, the completed Agreement shall be recorded and the conditions filed and recorded on the parcel to be developed and/or an alternative site for the proposed Housing Development, if the Housing Development is off-site. C. The approval of the Agreement shall take place prior to tentative map approval, and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to Site Plan and Architectural Review. D. The Agreement shall run with land to be developed and/or the alternative site for the proposed Housing Development and be binding on all future owners and successors in interest and shall include at a minimum, the following: 1. The total number of units approved for the Development, including the number of Restricted Affordable Units. 2. A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price. 20 3. The proposed location, dwelling unit sizes (square feet), and number of bedrooms of the Restricted Affordable Units. 4. Term of use restrictions for Restricted Affordable Units of at least 30 years for Low and Very Low units. 5. A schedule for completion and occupancy of Restricted Affordable Units. 6. A description of any Concession or Incentive, if any, being provided by the City. 7. A description for remedies of breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the Agreement). 8. Other provisions to ensure implementation and compliance with this chapter. E. In the case of for -sale Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the initial sale and use of Restricted Affordable Units during the applicable use restriction period: 1. Restricted Affordable Units shall, upon initial sale, be sold to eligible Moderate Income Households at an Affordable Sales Price and Housing Cost, or to Qualified Residents (i.e.. maintained as Senior citizen housing) as defined by this chapter. 2. Restricted Affordable Unit shall be initially owner -occupied by eligible Moderate Income Households or by Qualified Residents in the case of Senior citizen housing. 3. The initial purchaser of each Restricted Affordable Unit shall execute an instrument or agreement approved by the City restricting the sale of the Restricted Affordable Unit in accordance with this chapter during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the Restricted Affordable Unit and shall contain such provisions as the City may require ensuring continued compliance with this chapter and the state Density Bonus Law. F. In the case of rental Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the use of Restricted Affordable Units during the use restriction period: 1. The rules and procedures for qualifying tenants, establish Affordable Rent, filling vacancies, and maintaining Restricted Affordable Units for qualified tenants; 2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter. 3. Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying Restricted Affordable Units, and which identifies the bedroom size and monthly rent or cost of each Restricted Affordable Unit. At the October 28, 2014 Planning Commission hearing, the Commission requested that staff research whether the City could deny an incentive or concession if it would have a specific adverse impact, as defined in Government Code section 65589.5, on a property that was designated historical under a local regulation. Unfortunately, after conducting Further research, the City Attorney's opinion is that Government Code section 65915(e) preempts the City from 21 adding language to the proposed Section 27.070.D.2 regarding properties designated historical under a local regulation. Government Code section 65915(e) states: "In no case may a city, county, or city and county apply any development standard that will have the -effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section... Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards if the waiver or reduction would have a specific, adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Nothing in this subdivision shall be interpreted to require a local government to waive or reduce development standards that would have an adverse impact on any real property that is listed in the California Register of Historical Resources, or to grant any waiver or reduction that would be contrary to state or federal law". Thus, the exceptions to the general rule are those prescribed by Section 65915(c), and the section does not provide authority for adding further exceptions, such as properties designated as a local landmark or historical property. Consequently there are no proposed changes to the proposed Density Bonus Chapter. Pith is Comments A Notice of the Public Hearing for the December 1, 2014 City Council meeting was published in the Argus Courier on November 20. 2014. The Notice was also posted on the City's website, at City Hall, and distributed through the Housing Divisions list of interested parties. Public input was gathered during the development of the Housing Element as outlined on pages 3-6 of the 2015-3023 Housing Element. Comments from each meeting and from the online survey are summarized on those pages. The attached documents reflect and incorporate the public comments received from stakeholders over the course of the last one and a hall years. As noted earlier in the staff report. PEP Housing provided comments regarding the proposed change to the City's inclusionary policy at the October 28, 2014 Planning Commission hearing. Prior to the 2009-2014 Housing Element the inclusionary housing policy provided flexibility in requiring residential projects of five or more units to contribute to the provision of below-market rate housing in one of the following ways: 1. Provide 15% of the units in a rental housing project at rents affordable to very low- and low-income households and 15% of the units in a for -sale project at prices affordable to low- and moderate -income households for a miniouun period of 30 years. 3. Dedicate a portion of the project site or property elsewhere to the City or a non-profit organization for use as a site for affordable housing. This option is allowed only if' the City or a non-profit agency has a pending project. 3. Male an in lieu payment to the City's Housing Fund. 4. Use alternative methods to meet the intent of the inclusionary requirement, subject to approval by the City Council. 1)? In the 2009-2014 Housing Element, Item 1 of the inclusionary policy above was modified to read as follows: • Within a half -mile radius of the planned SMART stations, the developer shall provide at least 15 percent of the units in a rental housing project at rents affordable to very low - and low-income households and 15 percent of the units in a for -sale project at prices affordable to low- and moderate -income households for a minimum period of 30 years. The flexibility of the former policy has allowed developers to meet the inclusionary policy in a manner that works best for the project and the City's housing program. In most cases this led to payment of the in -lieu fee which the City then leveraged to Find affordable housing projects in partnership with nonprofits such as PEP, Eden, Burbank, among others and in other instances led to the provision of land for onsite affordable housing such as the Housing Land Trust's Freitas Square project as part of Southgate. The flexible approach of the prior policy has resulted in 34 affordable housing developments totaling 1,526 units. Staff has proposed changing the policy to read as follows: Continue to require residential projects of five or more units to contribute to the provision of below-market rate housing in one of the following ways: a. Dedicate 15% of the units on-site or a portion of the project site or properly to the City or a non-profit organization for use as affordable housing. b. Within a half -mile radius of the planned SMART stations, developers are encouraged to provide at least 15 percent of the units in a rental housing project at rents affordable to very low -and low-income households and 15 percent of the units in a for -sale project at prices affordable to low -and moderate -income households for a minimum period or30 years. c. The developer can make an in -lieu payment to the City's [-lousing Fund. d. Use alternative methods to meet the intent of the inclusionary requirement, subject to approval by the City Council. Staffs recommendation is based on the fact that all of our housing to date has been built based upon the former inclusionary policy. Since the adoption of the 2009 Housing Element, staff has heard repeatedly from property owners and developers with properties within a % mile radius of the proposed SMART stations that this policy is a constraint on moving housing projects forward, particularly smaller projects. Combined with the loss of redevelopment finds, the deferral of the Corona Road SMART station, and the City's need for in -lieu funds to support both future housing opportunities and maintain current programs stall has recommended the change to the policy regarding provision of units on-site in those instances from shall to encourage. Atter a lengthy discussion with the Planning Commission, there were no suggested changes to the proposed policy. Environmental Review A Notice of Intent to Adopt a Negative Declaration and Public Hearing was published in the Argus Courier on October 9, 2014 and mailed to all interested parties on the housing Element 23 Update list. As of the writing of this report, staff has not received public comment on the environmental documents in response to the notice. The Petaluma 2015-2023 Housing Element ("Housing Element") has been prepared to meet slate law requiring cities and counties to periodically update the housing element of their General Plan. The residential development considered within the Housing Element to meet Petal uma's Regional Housing Need Accommodation are well within the scope of the development evaluated in the Petaluma General Plan 2025 ("General Plan"), and its EIR which was certified on April 7, 2008. The General Plan and its EIR are available for review at the City of Petaluma, 11 English Street, in the Community Development Department, and are also available online at http://cityofpetaluma.net/cdd/index.html. The Initial Study (Attachment 4) incorporates the analysis of the General Plan EIR and adds information regarding any environmental effects that are different in land or degree From those studied in the General Plan EIR. The Initial Study's conclusion is that the Housing Element does not create any new or more severe significant impacts than those disclosed in the General Plan EIR. CEQA discourages "repetitive discussions of the same issues" (CEQA Guidelines section 15152(b)) and allows limiting discussion of a later project which is consistent with a prior plan to impacts which were not examined as significant effects in a prior EIR or significant effects which could be reduced by revisions in the later project (CEQA Guidelines section 15152(d).). No additional benefit to the environment would be gained and no public purpose would be served by preparing an EIR for the Housing Element merely to restate the analysis of the same projected future development and conditions analyzed in the General Plan EIR. Therefore, a negative declaration was prepared for this project, in reliance on the General Plan EIR. All General Plan policies adopted as mitigation apply to the Housing Element. The General Plan's significant and unavoidable impacts are recognized in the Initial Study, as are any Housing Element policies that affect or reduce those impacts. The impacts identified as significant and unavoidable in the General Plan are: • Increased motor vehicle traffic which would result in unacceptable level of service (LOS) at six intersections covered in the Master Plan: o McDowell Boulevard North/Corona Road o Lakeville Street/Caulfield Lane o Lakeville Street/East D Street o Petaluma Boulevard South/D Street o Sonoma Mt. Parkway/Ely Boulevard South/East Washington Street o McDowell Boulevard North/Rainier Avenue • Trarfic related noise at General Plan buildout, which would result in a substantial increase in existing exterior noise levels that are currently above City standards. 24 Cumulative noise from proposed resumption of freight and passenger rail operations and possible resumption of intra -city trolley service, which would increase noise impacts when combined with traffic noise. Air quality impacts resulting from General Plan buildout population that could conflict with the Bay Area 2005 Ozone Strategy. (This regional air quality plan has since been replaced by the 2010 Clean Air Plan, discussed in the Initial Study Air Quality evaluation, Section 3.) A possible cumulatively considerable incremental contribution from General Plan development to the significant impact of global climate change. FINANCIAL IMPACTS The preparation of the Housing Element was completed in-house as opposed to being prepared by a consultant, which is a savings oi'over $50,000. The payoff to the City in future housing project and program applications is substantial. For many grant applications, Housing Element certification is often considered a "threshold item," meaning that an application will receive no further review without it. As a result of previous State -certified housing elements, the City has received millions of dollars of outside funding to address the Council's affordable housing goals. ATTACHMENTS L Resolution Adopting a Negative Declaration 2. Resolution Adopting the 2015-2023 Housing Element 3. Ordinance Amending the Implementing Zoning Ordinance and SmartCode 4. Negative Declaration/Initial Study 5. Petaluma 3015-3033 Housing Element 6. Letter tion Depmlment of Housing & Conununily Development 7. Plamlmg Commission Resolution Recommending Adoption of Negative Declaration 3. Planning Commission Resolution Recommending Adoption of 3015 ?023 Housing Element 9. Planning Commission Resolution Recommending Adoption of Zoning Teel Amendments 25 ATTACHMENT 1 RESOLUTION ADOPTING A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT FOR THE 2015-2023 HOUSING ELEMENT UPDATE AND TEXT AMENDMENTS TO THE IMPLEMENTING ZONING ORDINANCE AND SMARTCODE WHEREAS, State law requires California cities to prepare and adopt a general plan to guide future development of the city, including a Housing Element as one of the mandatory elements in a city's general plan; and WHEREAS, State law requires that cities comprehensively update their Housing Elements to ensure their plans can accommodate future demand for housing; and WHEREAS, the City of Petaluma ("City') last updated its Housing Element in 2009; and WHEREAS, the proposed 2015-2023 Housing Element Update ("Housing Element") identifies and analyzes existing and projected housing needs and states goals, policies, quantified objectives and special programs for the preservation, improvement and development of housing in the City from 2015 through 2023; and WHEREAS, the proposed Housing Element has been prepared in conformance with the requirements of State law, including but not limited to Article 10.6 (Housing Elements) of the Government Code and was released for preliminary review as a draft to the State Department of Housing and Community Development; and WHEREAS, the proposed Housing Element is consistent with the Petaluma General Plan 2025, adopted by the City on May 19, 2008, and specifically, is consistent with the existing Land Use Element of the Petaluma General Plan 2025; and WHEREAS, on April 7, 2008, the City adopted Resolution No. 2008-058 N.C.S., certifying the Final Environmental Impact Report for the General Plan 2025 ("Final EIR") in compliance with the California Environmental Quality Act ("CEQA"); and WHEREAS, on May 19, 2009, in Resolution No. 2008-084 N.C.S., the City Council adopted findings relating to environmental impacts identified in the General Plan EIR, including a finding that the General Plan EIR would serve as a document which could be relied on by future projects to satisfy certain CECIA requirements; and WHEREAS, the General Plan 2025 was adopted on May 19, 2008 by Resolution No. 2008-085; and 26 WHEREAS, the project does not modify density, change land uses or provide for future development other than as contemplated in the General Plan 2025 and evaluated in the General Plan 2025 EIR; and WHEREAS, no specific development projects are approved by the project, which consists of a general planning and policy document and related zoning amendments; and WHEREAS, the City prepared an Initial Study for the project pursuant to CEQA, Title 14 of the California Code of Regulations, §§15000 et seq. ("CEQA Guidelines") and the City of Petaluma Environmental Review Guidelines to further assess the potential environmental effects of the Housing Element, including any new or more significant effects that were not studied in the General Plan EIR; and WHEREAS, the analysis contained in the Initial Study determined that there is no substantial evidence that the project will have a significant effect on the environment, other than possible incremental contributions to the significant and unavoidable impacts identified in the General Plan EIR, and a Negative Declaration was therefore appropriate; and WHEREAS, the General Plan Final EIR and the Housing Element Initial Study/ Negative Declaration adequately address the environmental effects of the project for the purposes of CEQA such that further analysis of the effects in a second EIR would be duplicative (see CEQA Guidelines §15152(d)); and WHEREAS, notice of the City's intention to adopt a Negative Declaration and of the availability of the Negative Declaration for a thirty day public review and comment period was originally given on October 9, 2014 in accordance with CEQA; and WHEREAS, on October 28, 2014, the City of Petaluma Planning Commission conducted a duly noticed public hearing to consider and review the Housing Element and Negative Declaration for recommendation to the City Council. WHEREAS, after the conclusion of said public hearing, the Planning Commission adopted its Resolution No. 2014-37, unanimously recommending that the City Council adopt the Negative Declaration of Environmental Impact for the project; and WHEREAS, on December 1, 2014, the City Council held a properly noticed hearing, accepted comments from all interested parties on the proposed Negative Declaration, including the Initial Study. NOW, THEREFORE, BE IT RESOLVED: 1. Findings and Adoption of Negative Declaration. After independent review and consideration of the information in the environmental documentation, including but not limited to the Negative Declaration, its supporting Initial Study, all documents and 27 studies referred to or incorporated in the Initial Study and the record of these proceedings, the City Council: a. Finds that the Petaluma 2015-2023 Housing Element and the text amendments to the Implementing Zoning Ordinance and SmartCode ("collectively, the project") will not result in nor increase the significance under CEQA of any significant or potentially significant environmental effects not previously evaluated in the Final Environmental Impact Report for the General Plan 2025. b. Finds that further analysis of the projects effects in an additional EIR would be merely duplicative and adopts the Negative Declaration/Initial Study of Environmental Significance for the project. c. Adopts the Negative Declaration for the project. 2. Notice of Determination. City staff is directed to file a Notice of Determination following adoption of the Petaluma 2015-2023 Housing Element and approval of the text amendments to the Implementing Zoning Ordinance and SmartCode in accordance with CEQA. 3. Record. The location and custodian of the documents and/or other material which constitute the record of proceedings upon which the decision is based is the City of Petaluma, 11 English Street, Petaluma, CA 94952, attention: City Clerk. 4. Effective Date. This resolution shall take immediate effect. 28 ATTACHMENT 2 RESOLUTION AMENDING THE CITY OF PETALUMA GENERAL PLAN 2025 TO UPDATE THE HOUSING ELEMENT TO INCLUDE THE 2015-2023 HOUSING ELEMENT WHEREAS, State law requires California cities to prepare and adopt a general plan to guide future development of the city, including a Housing Element as one of the mandatory elements in a city's general plan; and WHEREAS, on May 19, 2008, the City Council approved Resolution No. 2008-085 N.C.S., adopting the General Plan 2025, which contained the City's then -existing housing element; and WHEREAS, on June 15, 2009, the City Council approved Resolution No. 2009-094 N.C.S., adopting the Petaluma 2009-2014 Housing Element; and WHEREAS, State law requires that cities comprehensively update their Housing Elements to ensure their plans can accommodate future demand for housing; and WHEREAS, the proposed 2015-2023 Housing Element Update ("Housing Element") identifies and analyzes existing and projected housing needs and states goals, policies, quantified objectives and special programs for the preservation, improvement and development of housing in the City from 2015 through 2023; and WHEREAS, the proposed Housing Element has been prepared in conformance with the requirements of State law, including but not limited to Article 10.6 (Housing Elements) of the Government Code and was released for preliminary review as a draft to the State Department of Housing and Community Development; and WHEREAS, the State Department of Housing and Community Development reviewed the Draft Housing Element and determined that the draft element meets the statutory requirements of State housing element law; and WHEREAS, the proposed Housing Element is consistent with the Petaluma General Plan 2025, adopted by the City on May 19, 2008; and WHEREAS, an Initial Study and Negative Declaration was prepared pursuant to the requirements of the California Environmental Quality Act (CEQA); and WHEREAS, notice of the City's intention to adopt a Negative Declaration and of the availability of the Negative Declaration for a thirty day public review and comment period was originally given on October 9, 2014 in accordance with CEQA; and 29 WHEREAS, on October 28, 2014, the City of Petaluma Planning Commission conducted a duly noticed public hearing to consider and review the Housing Element and Negative Declaration for recommendation to the City Council; and WHEREAS, after the conclusion of said public hearing, the Planning Commission adopted its Resolution No. 2014-39, unanimously recommending that the City Council adopt the 2015-2023 Housing Element as an amendment to the Petaluma General Plan 2025; and WHEREAS, on December 1, 2014, the City Council adopted Resolution No. 2014 -XXX N.C.S. approving a negative declaration of environmental impact, making findings and adopting a statement of overriding considerations in regard to the Housing Element, all in accordance with the requirements of Public Resources Code Sections 21000 et seq. ("CEQA"), Title 14, California Code of Regulations, Sections 15000 et seq. ("CEQA Guidelines") and the City of Petaluma Environmental Review Guidelines; and WHEREAS, on December 1, 2014, the City Council held a properly noticed public hearing, accepted comments from all interested parties on the proposed Negative Declaration and the Housing Element, considered the Housing Element, the Negative Declaration, and the supporting Initial Study. NOW, THEREFORE, BE IT RESOLVED: 1. Recitals. The above Recitals are true and correct and adopted as findings of the City Council. 2. Adoption of Housing Element. Based on the findings and conclusions stated above, the City Council finds it in the public interest to, and hereby approves and adopts the City of Petaluma 2015-2023 Housing Element, incorporated herein by reference, as Chapter 11 to the General Plan 2025, which shall supersede and replace any previously adopted Housing Elements. 3. Effective Date. The Housing Element shall take effect thirty days from the date of the adoption of this Resolution pursuant to State law, including Midway Orchards v. County of Butte (1990) 220 Cal.App.3d 765, 778 and DeVita v. County of Napa (1995) 9 Cal. 4`h 763, 787, fn. 9. 30 ATTACHMENT 3 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING THE IMPLEMENTING ZONING ORDINANCE, ORDINANCE NO. 2300 N.C.S. AND THE SMARTCODE, ORDINANCE NO. 2470 N.C.S. TO IMPLEMENT STATE HOUSING ELEMENT LAW WHEREAS, Section 25.010 of the City of Petaluma Implementing Zoning Ordinance (IZO) provides in pertinent part that no amendment that regulates matters listed in Government Code Section 65850 shall be made to the IZO unless the Planning Commission and City Council find the amendment to be in conformity with the General Plan; and WHEREAS, staff has proposed a series of provisions amending the IZO, Chapter 4, Section 4.030, Allowable Land Uses and Permit Requirements; replacing the existing Chapter 27: Glossary with a new Chapter 27: Residential Density Bonus; reassigning the Glossary to a new Chapter 28; and updating and adding definitions to Chapter 28: Glossary; and updating and adding definitions to the SmartCode Section 9: Glossary, as hereinafter set forth, (collectively, "the amendments'), in order to implement State Housing Element Law; and WHEREAS, a public notice of the October 28, 2014 public hearing before the Planning Commission to consider the amendments was published in the Argus -Courier on October 9, 2014; and, WHEREAS, on October 24, 2014, the Planning Commission held a duly -noticed public hearing in accordance with the City of Petaluma Implementing Zoning Ordinance, Section 25.050; and, WHEREAS, after the conclusion of said public hearing, the Planning Commission adopted its Resolution No. 2014-38, unanimously recommending that the City Council adopt the amendments; and WHEREAS, on November 20, 2014, a public notice of the December 1, 2014 public hearing before the City Council to consider the amendments was published in the Argus - Courier; and, WHEREAS, on December 1, 2014, the City Council approved an Initial Study and Negative Declaration; and, WHEREAS, on December 1, 2014, the City Council of the City of Petaluma held a duly noticed public hearing to consider the amendments; and WHEREAS, on December 1, 2014, in accordance with all applicable State and local laws, the City Council adopted the Petaluma 2015-2023 Housing Element. 31 NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. Findings. The City Council of the City of Petaluma hereby finds: 1. The above recitals are true and correct and are adopted as findings of the City Council. 2. The provisions amending the IZO, Chapter 4, Section 4.030, Allowable Land Uses and Permit Requirements; replacing the existing Chapter 27: Glossary with a new Chapter 27: Residential Density Bonus; reassigning the Glossary to a new Chapter 28; and updating and adding definitions to Chapter 28: Glossary; and updating and adding definitions to the SmartCode Section 9: Glossary, as hereinafter set forth, (collectively, "the amendments'), are in general conformity with the Petaluma General Plan 2025 because the amendments implement the goals, policies and programs of the Housing Element for the preservation, improvement and development of affordable housing and housing programs in the City of Petaluma. 3. The public necessity, convenience, and general welfare clearly permit the adoption of the proposed text amendments to the Implementing Zoning Ordinance and SmartCode. Section 2. The Table of Contents of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S., is hereby amended to add a new Chapter 27, Residential Density Bonus, and to renumber the current Chapter 27, Glossary, as a new Chapter 28 to read as follows: Chapter 27 Residential Densitv Bonus 183 27.010 - Purpose and Intent 27.020 - Definitions 27.030 - Eligibility Criteria 27.040 -Density Bonus Calculation 27.050 - Development Standards for Affordable Units 27.060 - Density Bonus for Development of Child Care Facility 27.070 - Development Concessions and Incentives 27.080 - General Application Requirements 27.090 - Density Bonus Housing Agreement Chapter 28 Glossary 28.010 - Purpose 28.020 - Definitions of Specialized Terms and Phrases 32 Section 3. Chapter 3, Development and Land Use Approval Requirements, Section 3.030 (A) Allowable land uses of the Implementing Zoning Ordinance, Ordinance No. 2300- N.C.S., is hereby amended to read as follows: A. Allowable land uses. The uses of land allowed by this Zoning Ordinance in each zone are listed in tables of allowable land uses in Chapters 4 and 6 together with the type of planning permit required for each use. Each land use listed in the tables is defined in the Glossary. Section 4. Chapter 3, Development and Land Use Approval Requirements, Section 3.030 (C), Use not listed, (1) of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is hereby amended to read as follows: 1. A land use that is not listed in the tables in Chapter 4 and is determined by the Director to not be included in the Zoning Ordinance Glossary under the definition of a listed land use, is not allowed within the City, except as otherwise provided Subsection A.3. Section 5. Chapter 4, Zone Districts, Section 4.030, Allowable Land Uses and Permit Requirements, Footnote 1 to Tables 4.1 to 4.5 of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is hereby amended to read as follows: (1) See Glossary for land use definitions. Section 6. Chapter 4, Zone Districts, Section 4.040, Site Planning and Building Standards, Height Limit note to Tables 4.6 to 4.13 of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is hereby amended to read as follows: Alasimum allouwhle height of structures. See Glossarvlbr height measurement requiranenlst and Chapter I2 for height limit modifications. Section 7. Chapter 10, Adult Oriented Business, Section 10.020 — Definitions of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is hereby amended to read as follows: It is the intent of Chapter 10 that those definitions and interpretations set forth in the Glossary of the Petaluma Zoning Ordinance shall apply but only where they do not conflict with any def nition or interpretation set forth in Chapter 10. Section 8. Chapter 27 Glossary of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is hereby renumbered as a new Chapter 28 as follows: Chapter 28 Glossary Section 9. Chapter 27, Glossarv, Section 27.010 — Purpose of the Imolementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is herebv renumbered as follows: 28.010 - Purpose 33 Section 10. Chapter 27, Glossarv, Section 27.020 — Definitions of Specialized Terms and Phrases of the ImolementinR Zoning Ordinance, Ordinance No. 2300-N.C.S. is herebv renumbered as follows: 28.020 - Definitions of Specialized Terms and Phrases Section 11. Chapter 4, Zone Districts, Section 4.030, Allowable Land Uses and Permit Requirements, Tables 4.4 of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is hereby amended to add Emergency Shelter as a permitted use as follows: Commercial, Business Park, and Industrial Zones P(16) Permitted Use TABLE 4.4 CUP Conditional Use Permit Required Allowed Land Uses and Permit Requirements for Commercial, S Permit Requirement in Specific Use Regulations Business Park, and Industrial Zones A Accessary use — Use Not Allowed Permit Required by Zone I Specific Use LAND USE TYPE (1) C1 I C2 BPI I I Regulations RESIDENTIAL Emergency Shelter - - - P Section 12. Chapter 4, Zone Districts, Section 4.030, Allowable Land Uses and Permit Requirements, Tables 4.5 of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is hereby amended to add Emergency Shelter as an allowed use subject to a Conditional Use Permit as follows: Civic Facility Zone P(16) Permitted Use TABLE 4.5 CUP Conditional Use Permit Required Allowed Land Uses and Permit Requirements for Civic Facility S Permit Requirement in Specific Use Regulations Zone A Accessory Use — Use Not Allowed Permit Required by Zone Specific Use LAND USE TYPE (1) CF Regulations RESIDENTIAL Emergency Sheller CUP Section 13. The definition of "Child Care Center" found in Chapter 28 "Glossary", Section 28.020 of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is hereby amended as follows: : Child Care Center. A child day care facility (other than a family day care home) as defined in Government Code Section 65915, subdivision (h), paragraph (4) and successor statutes including, but not limited to, infant centers, preschools, extended day care facilities and school age child care centers that provides non-medical care and 34 supervision of minor children for periods of less than 24 hours and is licensed by the California State Department of Social Services. Excludes "Child Day Care," below. Section 14. The definition of "Emergency Shelter' found in Chapter 28 "Glossary", Section 28.020 of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is amended as follows: Emergency Shelter. Emergency shelter means housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. Section 15. Chapter 28 "Glossary', Section 28.020 of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is amended to add the definition of "Supportive Housing" as follows: Supportive Housing. Housing with no limit on length of stay, that is occupied by the Target Population, and that is linked to an onsite or offsite service that assists the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Supportive housing is a residential use subject only to those restrictions that apply to other residential uses of the same type in the same zone. Section 16. Chapter 28 "Glossary', Section 28.020 of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is amended to add the definition of "Target Population" as follows: Target Population. Persons with low incomes who have one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people. Section 17. The definition of "Transitional Housing" found in Chapter 28 "Glossary", Section 28.020 of the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. is amended as follows: Transitional Housing. Buildings configured as rental housing developments, but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance. Transitional housing is a residential use subject to only those restrictions that apply to other residential uses of the same type in the same zone. Section 18. A new Chapter 27 Residential Density Bonus is added to the Implementing Zoning Ordinance, Ordinance No. 2300-N.C.S. as follows: Chapter 27 — Residential Density Bonus Sections: 27.010 Purpose and Intent 27.020 Definitions 27.030 Eligibility Criteria 27.040 Density Bonus Calculation 27.050 Development Standards for Affordable Units 35 27.060 Density Bonus for Development of Child Care Facility 27.070 Development Concessions and Incentives 27.080 General Application Requirements 27.090 Density Bonus Housing Agreement 27.010 — Purpose and Intent This chapter is intended to provide incentives for the production of housing for Very Low, Lower Income, Moderate or Senior Housing in accordance with California state law. The purpose of this chapter is to: a) Comply with the state density bonus law in accordance with the requirements California Government Code Section 65915 and amendments and successor statutes. b) Establish procedures for implementing the state density bonus requirements as set forth in California Government Code Section 65915, as amended. c) Facilitate the development of affordable housing consistent with the goals, policies, and programs of the City's Housing Element. 27.020 — Definitions Whenever the following terms are used in this chapter, they shall have the meaning established by this section: A. Affordable Rent. Monthly housing expenses, including a reasonable allowance for utilities, for Rental Restricted Affordable Units reserved for Very Low or Lower Income Households, not exceeding the following calculations: 1. Very Low Income: 50 percent of the area median income for Sonoma County, adjusted for household size, multiplied by 30 percent and divided by 12. 2. Lower Income: 60 percent of the area median income for Sonoma County, adjusted for household size, multiplied by 30 percent and divided by 12. B. Child Care Center. See the definition of "Child Care Center" in Glossary. C. Concession or Incentive. Used interchangeably means such regulatory concessions as specified in California Government Code Section 65915 subdivisions (d) and (h) including, but not limited to, the reduction of site development standards or zoning code requirements, direct financial assistance, approval of mixed use zoning in conjunction with the Housing Development, or any other regulatory incentive which would result in identifiable cost avoidance or reductions that are offered in addition to a Density Bonus. See Section 27.070 of this chapter. D. Density Bonus. A density increase for residential units over the otherwise allowed residential density under the applicable zoning and land use designation on the date an application is deemed complete. E. Density Bonus Housing Agreement. A legally binding agreement between a developer and the City to ensure that the requirements of this chapter are satisfied. The agreement, among other things, shall establish: the number of Restricted Affordable Units, their size, 36 location, terms and conditions of affordability, and production schedule. See Section 27.070 of this Chapter. F. Density Bonus Units. Those residential units granted pursuant to the provisions of this chapter which exceed the otherwise Maximum Residential Density for the development site. G. Housing Cost. The sum of actual or projected monthly payments for all of the following associated with for -sale Restricted Affordable Units: principal and interest on a mortgage loan, including any loan insurance fees, property taxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowner association fees, and a reasonable allowance for utilities. H. Housing Development. Construction projects consisting of five or more residential units, including single family, multifamily, and mobilehomes for sale or rent, pursuant to this chapter. 1. Low Income Household. Households whose income does not exceed the lower income limits applicable to Sonoma County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50079.5 of the California Health and Safety Code. J. Maximum Residential Density. The maximum number of residential units permitted by the City's General Plan Land Use Element and Zoning Ordinance at the time of application, excluding the provisions of this chapter. If the housing development is within a planned unit development zone, the maximum residential density shall be determined on the basis of the general plan and the maximum density of the underlying zone. K. Moderate Income Household. A household whose gross income does not exceed 120 percent of the area median income for Sonoma County as published and periodically updated by the State Department of Housing and Community Development pursuant to Sections 50079.5 and 50052.5 of the California Health and Safety Code. L. Non -Restricted Unit. All units within a Housing Development excluding the Restricted Affordable Units. M. Qualifying Resident. Senior citizens or other persons eligible to reside in Senior Citizen Housing, N. Restricted Affordable Unit. A dwelling unit within a Housing Development which will be available for Moderate Income Households or Very Low and/or Low Income Households. O. Senior Citizen Housing. A Housing Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social needs of senior citizens," and which otherwise qualifies as "housing for older persons" as that phrase is used in the federal Fair Housing Amendments Act of 1988 (P.L. 100-430) and implementing regulations (24 CFR, part 100, subpart E), and as that phrase is used in California Civil Code Section 51.2 and 51.3. P. Very Low Income Household. Households whose income does not exceed the very low income limits applicable to Sonoma County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50105 of the California Health and Safety Code. 27.030 — Eligibility Criteria 37 A. The City shall grant either: a Density Bonus, or a Density Bonus with a Concession or Incentive(s), as set forth in Section 27.070 of this Chapter, to an applicant or developer of a Housing Development, who agrees to provide one of the following: 1. At least ten percent of the total units of the Housing Development as Restricted Affordable Units affordable to Lower Income Households; or 2. At least five percent of the total units of the Housing Development as Restricted Affordable Units affordable to Very Low Income Households; or 3. A Senior Citizen Housing Development, as defined herein; or 4. Ten percent of the total dwelling units in a common interest development as defined in Civil Code section 4100 for persons and families of Moderate Income Households as defined herein, provided that all units in the development are offered to the public for purchase. 27.040 — Density Bonus and Incentive or Concession Calculation A. The City will allow a Housing Development a Density Bonus and/or a Concessions or Incentive if it meets all the applicable requirements of this chapter. In the event that the minimum requirements for granting a Density Bonus or Concessions or Incentives as set forth in California Government Code section 65915 are amended or modified after the adoption of this chapter by the City, then the lowest applicable minimum requirements in section 65915 or successor statutes shall apply. B. When calculating the required number of Restricted Affordable Units, any resulting decimal fraction shall be rounded to the next larger integer. C. Densitv Bonus for Low Income Households: If a housing developer elects to construct units for Low Income Households, the Housing Development shall be entitled to a density bonus according to the following Density Bonus calculation: Provision of Low Income Units Percentage Percentage Low Income Density Bonus Units 10% 20% 11% 21.5% 12% 23% 13% 24.5% 14% 26% 15% 27.5% 16% 29% 17% 30.5% 18% 32% 19% 33.5% 20% 35% 130% 35% Number of Incentives or Concessions 1 D. Densitv Bonus for Very Low Income Households: If a housing developer elects to construct units for Very Low Income Households, the Housing Development shall be entitled to a density bonus according to the following Density Bonus calculation: 38 Provision of Very Low Income Units Percentage Percentage Number of Very Low Density Bonus Incentives or Income Units Concessions 5% 20% 1 16% 22.5% 1 17% 25% 1 8% 27.5% 1 9% 30% 1 1 10% 32.5% 2 11% 35% 2 15% 35% 3 E. Densitv Bonus for Moderate Income Households: If a housing developer elects to construct units for Moderate Income Households, the Housing Development shall be entitled to a density bonus based on the following Density Bonus calculation: Provision of Moderate Income Units Percentage Percentage Number Moderate- Density Bonus Incentives Income Units Concessions 10% 5% 1 11% 6% 1 12% 7% 1 13% 8% 1 14% 9% 1 15% 10% 1 16% 11% 1 17% 12% 1 18% 13% 1 19% 14% 1 20% 15% 2 21% 16% 2 22% 17% 2 23% 18% 2 124% 19% 2 25% 20% 2 26% 21% 2 27% 22% 2 28% 23% 2 29% 24% 2 30% 25% 3 31% 26% 3 32% 27% 3 33% 28% 3 34% 29% 3 35% 30% 3 36% 31% 3 37% 32% 3 38% 33% 3 39% 34% 3 140% 35% 1 3 of or 39 F. Densitv Bonus for Land Donation: When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land that satisfies the requirements as set forth in subsection 3 of this section, the applicant shall be entitled to a fifteen percent density increase above the otherwise maximum allowable residential density for the entire development calculated as follows: Land Donation Percentage Percentage Very Low- Density Bonus Income Units 10% 15% 11% 16% 12% 17% 13% 18% 14% 19% 15% 20% 16% 21% 17% 22% 18% 23% 19% 24% 20% 25% 21% 26% 22% 27% 123% 1 28% 24% 29% 25% 30% 26% 31% 27% 32% 28% 33% 29% 34% 30% 35% 1. Nothing in this chapter shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development. 2. The Density Bonus for land dedication shall be in addition to any other Density Bonus earned pursuant to this section, up to a maximum combined increased density of thirty-five percent above the otherwise maximum allowable residential density for the entire development. 3. An applicant donating land shall be eligible for the increased Density Bonus described in this Section if all the following conditions are met: a. The applicant donates and transfers the land to the City, or to a housing developer approved by the City, no later than the date of approval of the City of the final subdivision map, parcel map, or Housing Development Application for the proposed Housing Development seeking the Density Bonus. b. The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to Very Low Income Households in an amount not less than ten percent of the number of residential units of the proposed Housing Development seeking the Density Bonus. 40 c. The land proposed to be donated to the City: is at least one acre in size or sufficient size to permit development of at least 40 residential units; and ii. has the appropriate General Plan designation and is appropriately zoned for development at the density described in paragraph (3) of subsection (c) of Government Code section 65583.2 and successor statutes; and iii. is or will be served by adequate public facilities and infrastructure; and iv. is donated no later than the date of approval of the final subdivision map, parcel map or Housing Development application seeking a Density Bonus and has all of the permits and approvals, other than building permits, necessary for the development of the Very Low Income housing units on the transferred land: and is within the boundary of the proposed development or within one-quarter mile of the boundary of the proposed development; and vi. has a proposed source of funding for the very low income units prior to the approval of the final subdivision map, parcel map, or Housing Development application seeking the Density Bonus. 27.050 — Development Standards for Affordable Units A. Restricted Affordable Units shall be constructed concurrently with Non -Restricted Units unless both the City and the applicant agree within the Density Bonus Housing Agreement to an alternative schedule for development. B. Restricted Affordable Units shall remain restricted and affordable for a period of 30 years. The City may require a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program. C. In determining the maximum Affordable Rent or Affordable Sales Price of Restricted Affordable Units, the presumed household size as set forth in the City's Housing Program shall be used, unless the Housing Development is subject to different assumptions imposed by other federal or state regulations. D. Restricted Affordable Units shall be built on-site and be dispersed within the Housing Development, except as permitted in subsection E of this Section. The number of bedrooms of the Restricted Affordable Units shall be equivalent to the bedroom mix of the Non -Restricted Units in the Housing Development, except that the applicant may include a higher proportion of Restricted Affordable Units with more bedrooms. The design, appearance and general quality of the Restricted Affordable Units shall be comparable and compatible with the design of the Non -Restricted Units in the Development. The Development shall comply with all applicable Development Standards, except those which may be modified as provided by this chapter. E. Circumstances may arise in which the public interest would be served by allowing some or all of the Restricted Affordable Units associated with one Housing Development to be produced and operated at an alternative development site. Where the applicant and the 41 City so agree, the resulting linked developments shall be considered a single development for purposes of this chapter. Under these circumstances, the applicant shall be subject to the same requirements of this chapter for the Restricted Affordable Units to be provided on the alternative site. F. A Density Bonus Housing Agreement, as described in Section 27.090, shall be made a condition of the discretionary permits for all Developments subject to this chapter. The Density Bonus Housing Agreement shall be recorded as a deed restriction on the parcel or parcels on which the Restricted Affordable Units will be constructed. 27.060 — Density Bonus for Development of Child Care Center A. A Housing Development meeting the requirements of Sections 27.030, 27.040, and 27.050 above and including a Child Care Center that will be located on the premises of, as part of, or adjacent to, such a Housing Development shall receive either of the following: 1. An additional Density Bonus in an amount of square feet of residential space that is equal to or greater than the amount of square feet in the Child Care Center; or 2. An additional Incentive or Concession pursuant to Section 27.070 which results in an identifiable cost reduction or avoidance. B. When a Housing Development is providing a Child Care Center in accordance with this chapter, then the project conditions of approval shall require that: The Child Care Center care shall remain in operation for a period of time that is as long as or longer than the period of time during which the affordable units are required to remain affordable; and 2. Of the children who attend the Child Care Center, the children of Very Low Income Households, Lower Income Households, or persons or families of Moderate Income shall equal a percentage that is equal to or greater than the percentage of affordable units that are required pursuant to Section 27.040. C. The City shall not be required to provide a Density Bonus or Incentive or Concession for a Child Care Center if it makes a written finding, based upon substantial evidence, that the City has adequate Child Care Centers. 27.070 — Development Concessions and Incentives A. Subject to subsection B of this Section, the City shall provide a Concession or Incentive, for qualified Housing Developments, upon the written request of an applicant. The number of Concessions or Incentives provided shall be as follows: For a Housing Development that provides either 5% of the units affordable to Very Low income households, or 10% of the units affordable to Lower income households, the developer is entitled to one Concession or Incentive. 2. When the number of affordable units is increased to 10% Very Low income units, or 20% Lower income units, the developer is entitled to two Concessions or Incentives. 3. When the number of affordable units is increased to 15% Very Low income, or 30% Lower income, the number of Concessions or Incentives is increased to three. 42 B. The City may grant anyone of the following as a Concession or Incentive: 1. A waiver or modification of site development standards or a modification of zoning code or architectural design requirements. These include one or more of the following (each item below is considered a Concession or Incentive): a. Reduced minimum lot sizes and/or dimensions. b. Reduced minimum lot setbacks c. Reduced minimum outdoor and/or private outdoor living area. d. Increased maximum lot coverage e. Increased maximum building height and/or stories. f. Reduced on-site parking standards, including the number or size of spaces and garage requirements. g. Reduced minimum building separation requirements. h. Reduced street standards, e.g., reduced minimum street widths. 2. Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located. 3. Other Incentives or Concessions proposed by the developer or the City which result in identifiable cost reductions or avoidance. C. Upon request by the applicant, the City shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following: 1. Zero to one bedrooms: one onsite parking space. 2. Two to three bedrooms: two onsite parking spaces. 3. Four and more bedrooms: two and one-half parking spaces. If the total number of parking spaces required for a Housing Development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subsection, a Housing Development may provide onsite parking through tandem parking or uncovered parking, but not through on -street parking. D. The City shall grant Incentive(s) or Concession(s) requested by the applicant unless the City can make a written finding, based upon substantial evidence, of any of the following: 1. The Incentive or Concession is not required in order to provide for affordable housing to Very Low, Low, or Moderate Income Households. 2. The Incentive or Concession would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public health and safety or physical environment or any real property 43 that is listed on the California Register of Historical Resources and for which the City determines there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Housing Development unaffordable to Very Low, Low, and/or Moderate Income Households. 3. The Incentive or Concession would be contrary to state or federal law. 27.080 — General Application Requirements A. An application for a Density Bonus, Incentive or Concession shall be made as follows: An application for a density bonus, incentive, concession, waiver, modification or revised standard shall be submitted with the first application for a permit for a Housing Development and shall be processed concurrently with those permits. The application shall be on a form prescribed by the Community Development Director and shall include the following information: a. A brief description of the proposed Housing Development, including the total number of dwelling units, Restricted Affordable Units, and Density Bonus Units proposed. b. The zoning and general plan designations and assessor's parcel number(s) of the project site, and a description of any Density Bonus, Incentive, or Concession, requested. c. A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. d. If a Concession or Incentive is requested, the application shall provide evidence as to why the Concession or Incentive is necessary to provide the Restricted Affordable Units in accordance with Section 27.070 of this Chapter. Such evidence shall include, but is not limited to an explanation as to the actual cost reduction achieved through the concession or incentive and how the cost reduction allows the applicant to provide the Restricted Affordable Units, and any supporting documentation. e. Level of affordability of the Restricted Affordable Units and proposed method to ensure affordability. f. If a Density Bonus or Concession or Incentive is requested for a land donation, the application shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) and Section 27.040 (F) can be made. 2. In accordance with State law, neither the granting of a Concession or Incentive, nor the granting of a Density Bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval. 3. This Chapter implements State Density Bonus Law. Any Density Bonus, Incentive or Concession sought by an Applicant shall be made pursuant to this chapter and may not be combined with similar requests under State Density Bonus law. 44 27.090 — Density Bonus Housing Agreement A. Applicants for a Density Bonus, Incentive or Concession shall enter into a Density Bonus Housing Agreement (Agreement) with the City, approved by the City Council. B. Following execution of the Agreement by all parties, the completed Agreement shall be recorded and the conditions filed and recorded on the parcel to be developed and/or an alternative site for the proposed Housing Development, if the Housing Development is off-site. C. The approval of the Agreement shall take place prior to tentative map approval, and recordation shall take place prior to final map approval, or, where a map is not being processed, prior to Site Plan and Architectural Review. D. The Agreement shall run with land to be developed and/or the alternative site for the proposed Housing Development and be binding on all future owners and successors in interest and shall include at a minimum, the following: 1. The total number of units approved for the Development, including the number of Restricted Affordable Units. 2. A description of the household income group to be accommodated by the Restricted Affordable Units, and the standards for determining the corresponding Affordable Rent or Affordable Sales Price. 3. The proposed location, dwelling unit sizes (square feet), and number of bedrooms of the Restricted Affordable Units. 4. Term of use restrictions for Restricted Affordable Units of at least 30 years for Low and Very Low units. 5. A schedule for completion and occupancy of Restricted Affordable Units. 6. A description of any Concession or Incentive, if any, being provided by the City. 7. A description for remedies of breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the Agreement). & Other provisions to ensure implementation and compliance with this chapter. E. In the case of for -sale Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the initial sale and use of Restricted Affordable Units during the applicable use restriction period: Restricted Affordable Units shall, upon initial sale, be sold to eligible Moderate Income Households at an Affordable Sales Price and Housing Cost, or to Qualified Residents (i.e., maintained as Senior citizen housing) as defined by this chapter. 2. Restricted Affordable Unit shall be initially owner -occupied by eligible Moderate Income Households or by Qualified Residents in the case of Senior citizen housing. 45 3. The initial purchaser of each Restricted Affordable Unit shall execute an instrument or agreement approved by the City restricting the sale of the Restricted Affordable Unit in accordance with this chapter during the applicable use restriction period. Such instrument or agreement shall be recorded against the parcel containing the Restricted Affordable Unit and shall contain such provisions as the City may require ensuring continued compliance with this chapter and the state Density Bonus Law. F. In the case of rental Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the use of Restricted Affordable Units during the use restriction period: 1. The rules and procedures for qualifying tenants, establish Affordable Rent, filling vacancies, and maintaining Restricted Affordable Units for qualified tenants; 2. Provisions requiring owners to verify tenant incomes and maintain books and records to demonstrate compliance with this chapter. 3. Provisions requiring owners to submit an annual report to the City, which includes the name, address, and income of each person occupying Restricted Affordable Units, and which identifies the bedroom size and monthly rent or cost of each Restricted Affordable Unit. Section 19. Except as amended herein, the City of Petaluma Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S. remains unchanged and in full force and effect. Section 20. The definition of "Emergency Shelter" found in Section 9.10.020 — Definitions of Specialized Terms and Phrases of the SmartCode, Ordinance No. 2470 N.C.S. is amended as follows: Emergency Shelter. Emergency shelter means housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. Section 21. Section 9.10.020 — Definitions of Specialized Terms and Phrases of the SmartCode, Ordinance No. 2470 N.C.S. is amended to add the definition of "Supportive Housing" as follows: Supportive Housing. Housing with no limit on length of stay, that is occupied by the Target Population, and that is linked to an onsite or offsite service that assists the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Supportive housing is a residential use subject only to those restrictions that apply to other residential uses of the same type in the same zone. Section 22. Section 9.10.020 — Definitions of Specialized Terms and Phrases of the SmartCode, Ordinance No. 2470 N.C.S. is amended to add the definition of "Target Population" as follows: Target Population. Persons with low incomes who have one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, IrA elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people. Section 23. Section 9.10.020 — Definitions of Specialized Terms and Phrases of the SmartCode, Ordinance No. 2470 N.C.S. is amended to add the definition of "Transitional Housing' as follows: Transitional Housing. Buildings configured as rental housing developments, but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance. Transitional housing is a residential use subject to only those restrictions that apply to other residential uses of the same type in the same zone. Section 24. Except as amended herein, the City of Petaluma SmartCode, Ordinance No. 2470 N.C.S., remains unchanged and in full force and effect. Section 25. Severabilitv. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 26. Effective Date. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 27. Posting/Publishing of Notice. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and other applicable law. 47 CITY OF PETALUMA CITY OF PETALUMA 2015-2023 HOUSING ELEMENT CEQA Environmental Checklist PROJECT DESCRIPTION AND BACKGROUND Project Title: Lead agency name and address: Contact person and phone number: Project location: Project sponsor's name and address: General plan designation: Zoning: Description of project: (Describe the whole action involved, including but not limited to later phases of the project, and any secondary, support, or off-site features necessary for its implementation.) Surrounding land uses and setting; briefly describe the project's surroundings: Page I of 37 October 9, 2014 PETALUMA 2015-2023 HOUSING ELEMENT City of Petaluma 11 English Street Petaluma, CA 94952 Scott Duiven, (707) 778-4511 City-wide City of Petaluma 11 English Street Petaluma, CA 94952 Various Various The 2015-2023 Housing Element update has been prepared to meet state law requiring cities and counties to periodically update the housing element of their general plan. The schedule for updates and their content are set forth in Government Code Sections 665580-65589.8. In particular the update addresses the following areas: • Population and housing characteristics. • Accomplishments since the last housing element update. • Examination of goals, policies, and programs. • Updated inventory of residential lands. • Analysis of availability of services and infrastructure. The current certified housing element was adopted in June 2009 and covers the period of 2009 to 2014. In addition, the project includes proposed amendments to the Implementing Zoning Ordinance and SmartCode to include the creation of a Residential Density Bonus Ordinance, zoning for emergency shelters, and zoning for transitional and supportive housing. The city's current land use pattern is defined by its historical growth. Distinct residential neighborhoods illustrate architectural and site design trends, encompassing more than 150 years of evolution. Downtown and surrounding older neighborhoods, with smaller residential lots and alleys between some blocks, provide a walkable urban core. Heavy commercial, industrial, and warehouse facilities are clustered along the Petaluma River corridor, where access to shipping facilities was important through the mid -1900s. Large commercial shopping areas Other public agencies whose approval (e.g. permits, financial approval, or agreements): DESCRIPTION OF PROJECT and business/industrial parks are located along the Highway 101 corridor. East of the highway, residential neighborhoods built starting in the 1960s are designed around schools, parks, and creek trails. is required State Department of Housing and Community participation Development (HCD) Introduction: This project is the 2015-2023 Housing Element update, addressing residential development and housing programs within the City of Petaluma that are within the scope of the development evaluated in the Petaluma General Plan 2025 ("General Plan"), and its EIR which was certified on April 7, 2008. The General Plan and its EIR are available for review at the City of Petaluma, 11 English Street, in the Community Development Department, and are also available online at http://cityofpetaluma.net/cdd/index.html. This Initial Study incorporates the analysis of the General Plan EIR and adds information regarding any environmental effects that are different in kind or degree from those studied in the General Plan EIR. No Housing Element update policies create new or more severe significant impacts than those disclosed in the General Plan EIR. Because CEQA discourages "repetitive discussions of the same issues" (CEQA Guidelines section 15152(b)) and allows limiting discussion of a later project which is consistent with a prior plan to impacts which were not examined as significant effects in a prior EIR or significant effects which could be reduced by revisions in the later project. (CEQA Guidelines section 15152(d).) No additional benefit to the environment or public purpose would be served by preparing an EIR merely to restate the analysis and significant and unavoidable effects found to remain after adoption of all General Plan policies/mitigation measures. All General Plan policies adopted as mitigation apply to the Housing Element update. The General Plan's significant and unavoidable impacts are recognized in this Initial Study, as are any Housing Element policies that affect or reduce the impacts. The impacts identified as significant and unavoidable in the General Plan are: • Increased motor vehicle traffic which would result in unacceptable level of service (LOS) at six intersections covered in the General Plan: o McDowell Boulevard North/Corona Road o Lakeville Street/Caulfield Lane o Lakeville Street/East D Street o Petaluma Boulevard South/D Street o Sonoma Mt. Parkway/Ely Boulevard South/East Washington Street o McDowell Boulevard North/Rainier Avenue • Traffic related noise at General Plan buildout, which would result in a substantial increase in existing exterior noise levels that are currently above City standards. • Cumulative noise from proposed resumption of freight and passenger rail operations and possible resumption of intra -city trolley service, which would increase noise impacts. • Air quality impacts resulting from General Plan buildout to population levels that could conflict with the Bay Area 2005 Ozone Strategy. (This regional air quality plan has since been replaced by the 2010 Clean Air Plan, discussed in the Initial Study Air Quality evaluation, Section 3.) Page 2 of 37 October 9, 2014 • A possible cumulatively considerable incremental contribution from General Plan development to the significant impact of global climate change. The 2015-2023 Housing Element update is not a comprehensive revision of the existing housing element. The 10 overall goals remain the same with limited new policies and programs aimed at responding to current conditions. A summary of the housing goals and changes are described below: Goal 1 — Housing Supply: Provide adequate residential development opportunities to accommodate projected residential growth and facilitate mobility within the ownership and rental markets. • No substantive changes were made that would have the potential for an adverse impact at a policy or program level. Goal 2 — Housing Variety: Promote a range of housing types to meet the housing needs of all Petalumans. SB 745 amended California Government Code Section 65582 to replace prior Health and Safety Code definitions of "supportive housing", "target population" and "transitional housing" with definitions now more specific to housing element law. • Changes were made to the Implementing Zoning Ordinance and the SmartCode to ensure that they define transitional and supportive housing as residential uses, subject only to those restrictions on residential uses contained in each zone. The changes do not have the potential for an adverse environmental impact at a policy or program level. o Program 2.3 was modified to comply with the above change. Staff has updated the definitions to the glossary of both the Implementing Zoning Ordinance (new Chapter 28) and the SmartCode (Section 9) to be in compliance with this amendment. o The proposed definitions above are further supported by Policy 2.2, Program 2.3 of the 2015-2023 Housing Element which states: "Treat transitional and supportive housing as residential uses, subject only to those restrictions on residential uses contained in each respective zone." Goal 3 — Development Constraints: Minimize constraints on housing development to expedite construction and lower development costs. SB 2(2007) amends California Government code Sections 65582, 65583, and 65589.5 to require local jurisdictions to strengthen provisions for addressing the housing needs of the homeless, including the identification of zones in which emergency shelter are permitted without conditional use permits. SB 1818 significantly amended California Code Section 65915. Effective January 1, 2005, the changes required local jurisdictions to adopt a density bonus ordinance in their local codes. • Changes were made to the Implementing Zoning Ordinance to address the housing needs of the homeless by implementing specific zones to permit homeless shelters. A new chapter of the Petaluma Municipal Code was added to implement the Residential Density Bonus Ordinance. The changes do not have the potential for an adverse environmental impact at a policy or program level. o Staff has added updated regulations to the IZO to make emergency shelters permitted by right in the Industrial zone and allowed subject to a CUP in the Civic Facility zone. Program 3.2 was modified from "ensuring" that emergency shelters are permitted on industrial zones parcels without a Conditional Use Permit to "Continue to" permit emergency shelters on industrial zoned parcels without a Conditional Use Permit. Page 3 of 37 October 9, 2014 Staff has proposed a new Chapter 27 (Residential Density Bonus Ordinance) to be included in Title 21 of the Petaluma Municipal Code to implement Government Code Section 65915 in accordance with State Law. The existing Chapter 27: Glossary will be reassigned as Chapter 28. Program 3.3 of the 2009-2014 Housing Element was changed to reflect the adoption of the Residential Density Bonus Ordinance to "Enforce procedures and standards for density bonuses and other incentives required by state law to facilitate the review and approval of projects proposing affordable housing." Goal 4 — Affordable Housing: Promote the development of housing affordable to very low, lower and moderate -income households. • Changes were made to reflect the dissolution of Petaluma's redevelopment agency. Some programs were deleted due to funding shortages. Because of that funding shortage, the inclusionary housing program was modified to provide flexibility for owner/developers to fulfill their inclusionary requirement. The changes do not have the potential for an adverse environmental impact at a policy or program level. o Program 4.1 was deleted due to the dissolution of Petaluma's redevelopment agency. o Program 4.3(b) (4.4 in prior Housing Element) was revised to change the requirement from "require" to "encourage" developers to provide at least 15 percent of the units in a rental housing project at rents affordable to very low and low income households. This change will provide more flexibility to owners/developers of projects in the '/2 mile radius of the planned SMART stations. Goal 5 — Preservation of Affordability: Preserve the City's existing affordable housing and ensure the long-term affordability of new below-market rate units. On a recommendation from HCD, changes were made to Policy 5.1 — "Preserve the affordability of the City's existing affordable housing stock", to add a program describing the procedures to retain subsidized affordable units. The change does not have the potential for an adverse environmental impact at a policy or program level. o Staff has added under Policy 5.1 — Program 5.3 which states "Retain federal, state and locally subsidized affordable units that may be lost through contract termination by utilizing the following techniques. Continue to monitor, at least every two years, at risk units and to work with property owners to maintain the projects for lower incomes through extending any subsidized contracts." Goal 6 — Special Needs Housing: Promote housing opportunities for special needs groups. • Changes were made to reflect the dissolution of Petaluma's redevelopment agency. Some programs were deleted due to funding shortages. The changes below do not have the potential for an adverse environmental impact at a policy or program level. o Program 6.4 of the prior Housing Element was deleted due to loss of redevelopment funds. The City can no longer fund this program. The Salvation Army has partnered with our affordable housing properties to provide housing for their clients. Program 6.10 of the prior Housing Element was deleted due to loss of redevelopment funds. Disability Services and Legal Center is partnering with Rebuilding Together to serve the disabled population of Petaluma as needed. Page 4 of 37 October 9, 2014 • Changes were made to include SB 812 which requires local governments to include an analysis of the special housing needs of persons with developmental disabilities. This can be found in Appendix A, page 19 of the 2015-2023 Housing Element. o Policy 6.5 was revised to include the developmentally disabled population to the definition of disabled. o Program 6.12 under Policy 6.5 was revised to include the developmentally disabled population to the definition of disabled. Goal 7 — Fair Housing : Promote a choice of housing types and locations available to all persons, regardless of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, source of income, age, marital status, medical condition or disability. Government Code Section 65583 (c)(3) requires the housing element provide a program to address the governmental constrains to the maintenance, improvement and development of housing for persons with disabilities Changes were made to include the above Government Code in our fair housing policy. The change below does not have the potential for an adverse environmental impact at a policy or program level. o Program 7.3 was added to Policy 7.1 to develop a reasonable accommodation procedure to ensure persons with disabilities have equal access in accordance with fair housing laws. Goal 8 — Housing Maintenance: Preserve and improve the city's existing housing stock. • No substantive changes were made that would have the potential for an adverse impact at a policy or program level. Goal 9 — Community Relations: Promote the integration of affordable and special needs housing with existing neighborhoods. • No substantive changes were made that would have the potential for an adverse impact at a policy or program level. Goal 10 — Energy Conservation: Encourage energy conservation in housing. • No substantive changes were made that would have the potential for an adverse impact at a policy or program level. State Certification: The Housing Element is the only element of the General Plan that is required to undergo review and certification from the State of California. Review by HCD began on May 13, 2014. City staff had a conversation with HCD about the Draft Housing Element where they proposed some changes. On July 15, 2014 HCD provided a letter acknowledging that the Draft Housing Element has been found adequate and in compliance with the State law with the changes identified above. Prosect Location and Settinq,: Petaluma is a distinct community located within Sonoma County surrounded by open space and agricultural lands. The City has an Urban Growth Boundary that was adopted in 1998 and will expire in 2025. The city's current land use pattern is defined by its historical growth. Distinct residential neighborhoods illustrate architectural and site design trends, encompassing more than 150 years of evolution. Downtown and surrounding older neighborhoods, with smaller residential lots and alleys between some blocks, provide a walkable urban core. Heavy commercial, industrial, and warehouse facilities are clustered along the Petaluma River corridor, where access to Page 5 of 37 October 9, 2014 shipping facilities was important through the mid -1900s. Large commercial shopping areas and business/industrial parks are located along the Highway 101 corridor. East of the highway, residential neighborhoods built starting in the 1960s are designed around schools, parks, and creek trails. General Plan: The Petaluma General Plan 2025, adopted in 2008, serves the following purposes: • Reflects a commitment on the part of the City Council and their appointed representatives and staff to carry out the Plan; • Outlines a vision for Petaluma's long-range physical and economic development and resource conservation; enhances the true quality of life for all residents and visitors; recognizes that all human activity takes place within the limits of the natural environment; and reflects the aspirations of the community; • Provides strategies and specific implementing policies and programs that will allow this vision to be accomplished; • Establishes a basis for judging whether specific development proposals and public projects are in harmony with Plan policies and standards; • Allows City departments, other public agencies, and private developers to design projects that will enhance the character of the community, preserve and enhance critical environmental resources, and minimize impacts and hazards; and • Provides the basis for establishing and setting priorities for detailed plans and implementing programs, such as Development Codes, the Capital Improvement Program (CIP), facilities and master plans, redevelopment projects, and the Urban Growth Boundary (UGB). There are no land use amendments to the General Plan necessary to implement the goals, policies, and programs of the 2015-2023 Housing Element. General Plan 2025 EIR: The General Plan 2025 EIR was published in September 2007 (a revision was published to address Greenhouse Gas impacts in November 2007). The Final EIR was published in February, 14 2008 and certified on April 7, 2008. The General Plan EIR evaluates the potential impacts of the City of Petaluma General Plan 2025. Central Petaluma Specific Plan: The Central Petaluma Specific Plan (CPSP) addresses land use, density and intensity, transportation, and community character in the Central Petaluma area. The Central Petaluma area contains extensive vacant and underutilized parcels surrounding the Petaluma River and Turning Basin, a rail corridor with transit potential, and adjacent commercial and industrial uses. Adopted in June 2003, the CPSP calls for a mix of housing and activities within a walkable core area, a variety of transportation alternatives, and a working industrial waterfront along the river. Through the adoption of the CPSP, the City of Petaluma became the first City to adopt the SmartCode as a mandatory overlay. The SmartCode is a unified land development ordinance template for planning and urban design. It provides detailed regulations for development and new land uses within the Specific Plan area, and describes how these regulations will be used as part of the City's development review process. The SmartCode is intended to ensure that all new buildings are harmonious with each other and with the character of Petaluma. The SmartCode is further intended to ensure that the area covered by the CPSP evolves into new, mixed-use neighborhoods with the following characteristics: • The size of neighborhoods reflect a five-minute walking distance from edge to center (center meaning a railroad transit stop or the existing Downtown); • The mixture of land uses includes shops, workplaces, residences, and civic buildings in proximity; • A variety of thoroughfares that serve the needs of the pedestrian, the cyclist and the automobile equitably; • Public open spaces that provide places for informal social activity and recreation; and • Building frontages that define the public space of each street. Page 6 of 37 October 9, 2014 Petaluma SMART Rail Station Areas: TOD Master Plan: The Master Plan includes scenarios for future population growth within the City of Petaluma for use in the Master Plan area based on Petaluma's increasing share of urban population in Sonoma County (see Table 1). The Master Plan's market analysis and the population projections are derived from the adjusted state projections (which took into consideration that projections for Sonoma County and Petaluma were mostly proven incorrect by the most current Census). Based upon the foregoing, between 2010 and 2030 there should be an increase in households of between 5,400 and 6,400 households. These projections confirm that there will be a market for housing in the city. ENVIRONMENTAL SETTING Petaluma is located in southwestern Sonoma County along the 101 corridor approximately 15 miles south of Santa Rosa and 20 miles north of San Rafael. Situated at the northernmost navigable end of the Petaluma River, a tidal estuary that snakes southward to San Pablo Bay, Petaluma's boundaries are defined by the surrounding landscape. The City originated along the banks of the Petaluma River, spreading outward over the floor of the Petaluma River Valley as the City grew. The Valley itself is defined by Sonoma Mountain on the northeast and by the hills extending northward from Burdell Mountain on the west. To the south are the Petaluma Marshlands and beyond, the San Francisco Bay. Petaluma's Urban Growth Boundary encompasses approximately 9,911 acres. Page 7 of 37 October 9, 2014 ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED None of the following environmental factors would be potentially affected by this project. The environmental factors below are discussed in this document. 1. Aesthetics 4. Biological Resources 7. Greenhouse Gas Emissions 10. Land Use/ Planning 13. Population / Housing 2. Agricultural & Forestry Resources 5. Cultural Resources 8. Hazards & Hazardous Materials 11. Mineral Resources 14. Public Services 16. Transportation / Traffic 17. Utilities / Service Systems DETERMINATION (To be completed by the Lead Agency) On the basis of this initial evaluation: 3. Air Quality 6. Geology / Soils 9. Hydrology / Water Quality 12. Noise 15. Recreation 18. Mandatory Findings of Significance I find that the proposed project COULD NOT have a significant effect on the environment. A NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR X or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Signature Date Signature Date Page 8 of 37 October 9, 2014 1. AESTHETICS: Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Would the project: Mitigation Incorporated a. Have a substantial adverse effect on a scenic X vista? b. Substantially damage scenic resources, including but not limited to, trees, rock outcroppings, and X historic buildings within view of a state scenic highway? c. Substantially degrade the existing visual character X or quality of the site and its surroundings? d. Create a new source of substantial light or glare, which would adversely affect day or nighttime X views in the area? Aesthetics Setting Aesthetic and visual resources within the City of Petaluma include views of the Sonoma Mountains, hills, and agricultural land, natural elements including the Petaluma River, creek corridors, and landscapes, and elements of the built environment including historic structures, unique homes and architecture, and rural agricultural support structures. Aesthetics Impact Discussion: 1(a). No Impact: Adoption of the 2015-2023 Housing Element update will not by itself have a direct or indirect impact on visual quality and aesthetics. Any future development project made possible by the General Plan 2025 and updated housing element will be subject to individual, site-specific environmental review, as required by CEQA as well as all development standards and building code regulations required by State law and City policy. The General Plan contains numerous policies regarding the preservation of scenic roads and highways. No impacts beyond those identified in the General Plan EIR are anticipated, and thus the Project will not have a significant effect on the environment. 1(b -c). No Impact: The 2015-2023 Housing Element update implements the General Plan. Impacts from future growth have been previously identified in the General Plan EIR. Future development would be required to be consistent with existing adopted General Plan policies that protect the scenic resources of the City of Petaluma. No impacts beyond those identified in the General Plan EIR are anticipated, and thus the Project will not have a significant effect on the environment. 1(d). No Impact: The 2015-2023 Housing Element update implements the General Plan. Petaluma's Implementing Zoning Ordinance (IZO) § 21.040.D specifies lighting standards for all new exterior lighting. Prior to approval of any new projects within the City requiring a Conditional Use Permit or Design Review approval, the City shall conduct project -specific environmental review to determine whether the project would cause any significant impacts and, where possible, to mitigate potential environmental impacts. In addition, any proposed project would have to conform to any applicable design standards and any adopted local or State codes that regulate public health and safety such as the Uniform Building, Plumbing, Electrical, or Mechanical Codes. No impacts beyond those identified in the General Plan EIR are anticipated, and thus the Project will not have a significant effect on the environment. Page 9 of 37 October 9, 2014 AGRICULTURAL RESOURCES: Potentially Less Than Lessthan No Impact Significant Significant Significant Impact with Impact Mitigation In determining whether impacts to agricultural Incorporated resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Department of Conservation as an optional model to use in assessing impacts on agriculture and farmland. In determining whether impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to information compiled by the California Department of Forestry and Fire Protection regarding the state's inventory of forest land, including the Forest and Range Assessment Project and the Forest Legacy Assessment project; and forest carbon measurement methodology provided in Forest Protocols adopted by the California Air Resources Board. Would the project: a. Convert Prime Farmland, Unique Farmland, or Farmland of statewide importance (Farmland), as shown on the maps prepared pursuant to the X Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? b. Conflict with existing zoning for agricultural use, or X a Williamson Act contract? c. Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 1222O(g)), timberland (as defined by X Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(8)) d. Result in the loss of forest land or conversion of X forest land to non -forest use? e. Involve other changes in the existing environment, which, due to their location or nature could result in X conversion of Farmland, to non-agricultural use or conversion of forest land to non -forest use? Aqricultural Settinq Agricultural lands, located in the northern tip of the city, comprise approximately 77 acres, less than one percent of the land within the Petaluma Urban Growth Boundary (UGB). Aqricultural Resources Impact Discussion: 2(a -e). No Impact: Adopting the 2015-2023 Housing Element update will not by itself result in impacts to farmland or agricultural uses located within the City of Petaluma. The Housing Element update is consistent with the General Plan. Impacts to agricultural resources from future growth have been previously identified in the General Plan EIR. Sites for future development are zoned appropriately; most Page 10 of 37 October 9, 2014 development will be as urban infill with land use designated for residential uses. No lands in the General Plan area designated for agriculture are affected by the proposed Housing Element update. No impacts beyond those identified in the General Plan EIR are anticipated, and thus the Project will not have a significant effect on the environment. AIR QUALITY: Where available, the significance criteria established by the air quality management district may be relied upon to make the following determinations. Would the project: a. Conflict with or obstruct implementation of the applicable air quality plan? b. Violate any air quality standard or contribute substantially to an existing or projected air quality violation? c. Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is in non -attainment under an applicable federal or state ambient air quality standard (including releasing emissions, which exceed quantitative thresholds for ozone precursors)? d. Exposure of sensitive receptors to substantial pollution concentrations (emissions from direct, indirect, mobile and stationary sources)? e. Create objectionable odors affecting a substantial number of people? Air Qualitv Settinq Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Mitigation Incorporated X n 9 X According to the Petaluma General Plan EIR (Air Quality — Greenhouse Gas Emissions Section), vehicle emissions were the greatest contributor to greenhouse gas emissions (59 percent), which is discussed further under Section 7 (Greenhouse Gas Emissions). Air quality within the City is affected by vehicular traffic as well as emissions from natural gas and energy use in buildings. The impacts identified as significant and unavoidable in the General Plan related to air quality are: • Air quality impacts resulting from General Plan buildout to population levels that could conflict with the Bay Area 2005 Ozone Strategy. (This regional air quality plan has since been replaced by the 2010 Clean Air Plan, discussed below.) All General Plan policies adopted as mitigation apply to the Housing Element. Air Qualitv Impact Discussion: 3(a). No Impact: The City of Petaluma is located in the Bay Area Air Basin and is within the jurisdiction of the Bay Area Air Quality Management District (BAAQMD). The BAAQMD is charged with implementing regulations and programs to reduce air pollution and assist the Bay Area in reaching all outdoor air quality standards. The BAAQMD operates an air quality monitoring station in downtown Santa Rosa at 5th Street, approximately 15 miles north of Petaluma. The BAAQMD Compliance and Enforcement Division routinely conducts inspections and audits of potential polluting sites to ensure compliance with applicable federal, State, and BAAQMD regulations. Page I I of 37 October 9, 2014 The 2005 Bay Area Ozone Strategy and the 2010 Bay Area Clean Air Plan contain district wide control measures to reduce ozone precursor and carbon monoxide emissions. The 2005 Ozone Strategy was based on the Association of Bay Area Governments (ABAG) employment and populations projections for 2003. General plans that are consistent with ABAG projections are considered consistent with the growth projections of the adopted air quality plan. At the time of adoption, the City's General Plan was not in conformance with the population projections of the 2005 Ozone Strategy. BAAQMD adopted the Bay Area 2010 Clean Air Plan (CAP) in September 2010. The 2010 CAP serves to update the Bay Area ozone plan in compliance with the requirements of the Chapter 10 of the California Health & Safety Code. The primary goals of the CAP are to attain air quality standards, reduce population exposure and protect public health and reduce GHG emissions and protect the climate. The CAP identified 55 control measures that are presented in order to reduce air pollution throughout the Bay Area and include measures such as promoting mixed-use transit -oriented and compact development, as well as dust management, water conservation, VMT reduction, energy efficiency and waste management, among others. The City's General Plan is considered to be consistent with the CAP since it supports the primary goals, includes control measures, and does not conflict with or disrupt implementation of control measures. Similarly, the proposed Housing Element update is also determined to be consistent with the CAP as there would be conflict with CAP implementation due to updated in proposed policies and programs set forth therein. Air quality impacts resulting from the anticipated growth and development of the City were addressed in the EIR for the General Plan. No new or increased impact beyond what is already anticipated in the 2008 General Plan as a result of the Housing Element update. 3(b -c). No Impact: In 1998, the Bay Area recorded excesses of the national one-hour standard on 8 days and excesses of the state standard on 29 days. In 2000, excesses of the national one-hour ozone standard were recorded on 3 days and excesses of the State standard were recorded on 12 days. To comply with state air quality standards for ozone, BAAQMD prepared the Clean Air Plan for the Bay Area in 1991 and that plan has been updated every three years since, with the latest update in 2010. The Housing Element update does not propose any additional development not anticipated by the 2008 General Plan. Adopting the Housing Element will not by itself violate any air quality standard or result in a cumulatively considerable net increase of any criteria pollutant. Air quality impacts resulting from the anticipated growth and development of the City were addressed in the EIR for the 2008 General Plan. 3(d). No Impact: The Housing Element update has identified sites in the planning area where infill could occur, but does not propose any site-specific new development. Adopting the Housing Element will not by itself expose sensitive receptors to substantial pollutant concentrations. No new or increased impact as a result of the Housing Element update will result beyond what is already anticipated in the 2008 General Plan. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to air quality, pollutant concentrations, and sensitive receptor exposure. 3(e). No Impact: Adopting the Housing Element update will not by itself create objectionable odors affecting a substantial number of people. No new or increased impact as a result of the Housing Element will result beyond what is already anticipated in the 2008 General Plan. Page 12 of 37 October 9, 2014 4. BIOLOGICAL RESOURCES: Potentially Less Than Lessthan Significant Significant Significant No Impact Impact with Impact Mitigation Would the project: Incorporated a. Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special X status species in local or regional plans, policies, or regulations, or by the California department of Fish and Game or U.S. Fish and Wildlife Service? b. Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, and X regulations or by the California Department of fish and Game or U.S. Fish and Wildlife service? C. Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, X marsh, vernal pool, coastal, etc) through direct removal, filling, hydrological interruption, or other means? d. Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory X wildlife corridors, or impede the use of native wildlife nursery sites? e. Conflict with any local policies or ordinances protecting biological resources, such as a tree X preservation policy or ordinance? f. Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community X Conservation Plan, or other approved local, regional or state habitat conservation plan? Bioloqical Resources Impact Discussion: 4(a). No Impact: Adopting the 2015-2023 Housing Element update will not by itself have a substantial adverse effect, either directly or indirectly through habitat modifications, on any species identified as a threatened, endangered, candidate, sensitive, or special status. The General Plan EIR states that occurrences of several plant and animal species with special -status have been recorded or are suspected to occur in the Sonoma County area and the Petaluma vicinity. Several of these species have been reported in the City, and most of these are associated with the Petaluma River and its tributaries. A number of the natural communities in the City also have a high inventory priority with the California Natural Diversity Database (CNDDB) due to rarity and threats, and are considered sensitive resources. Section 4.1, Biology and Natural Resources, in Chapter 4 (The Natural Environment) of the General Plan focuses on habitat protection in order to protect threatened, endangered, candidate, sensitive, or special status species through numerous goals, policies, and programs. Impacts on such species either directly or through habitat modifications resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. No new or increased impacts as a result of the Housing Element will result above what is already anticipated in the General Plan. The level and significance of environmental impacts resulting from future development projects will be further assessed in accordance with CEQA, as necessary. Depending on the attributes of each individual development proposal, future development will Page 13 of 37 October 9, 2014 be subject to additional environmental review and compliance with all applicable policies related to any biological resources identified as a candidate, sensitive, or special status species. 4(b). No Impact: Adopting the Housing Element update will not by itself have a substantial effect on any riparian habitat or other sensitive natural community. The goals and policies in Section 4.1 (Biology and Natural Resources) of the General Plan would serve to protect wetlands, habitat for special -status species, native vegetation, wildlife habitat, and wildlife movement corridors. Additional biological and wetland assessments would be required as part of environmental review of proposed developments, as called for in Program 4 -P -3.A of the General Plan. Where sensitive resources are encountered, adequate mitigation would be required through avoidance, minimization, on-site mitigation and off-site mitigation as called for in policies and programs in the General Plan. Impacts to any riparian habitat or other sensitive natural communities resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. No new or increased impacts will result from adopting the Housing Element beyond those already anticipated in the General Plan. 4(c). No Impact: The City of Petaluma has wetlands listed in the National Wetland inventory, which include: fresh emergent wetlands in the southern portion of the Petaluma River and Northern coastal salt marsh wetland and brackish marsh wetland in the lower reaches of the Petaluma River. For protection of land adjacent to the Petaluma River and its tributaries Section 4.1 (Biology and Natural Resources) of the General Plan and the Implementing Zoning Ordinance have measures that protect waterways. Since no impacts to biological resources are anticipated beyond those identified in the General Plan EIR, no mitigation measures are proposed. Adopting the Housing Element will not by itself have a substantial effect on any federally protected wetlands. 4(d). No Impact: All impacts resulting from the anticipated growth and development within the City were addressed in the General Plan EIR. The General Plan EIR concluded that development within the City's urban growth boundary would not interfere with the movement of fish or other wildlife species that migrate through the already urbanized areas of the City. Adopting the Housing Element will not result in new or increased impacts beyond those already anticipated in the 2008 General Plan. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to any wildlife species. 4(e). No Impact: Adopting the Housing Element update will not conflict with any local policies or ordinances protecting biological resources. Local policies and ordinances designed to protect biological resources were drafted in response to identified environmental impacts at full build -out as discussed in the EIR for the City of Petaluma General Plan. Adopting the Housing /element will not change or conflict with any of the existing local policies or ordinances protecting biological resources. 4(f). No Impact: Adopting the Housing Element will not conflict with any approved local, regional, or state habitat conservation plan or with Section 4.1 (Biology and Natural Resources) of the General Plan. Section 4.1 (Biology and Natural Resources) addresses development impacts to plant and animal habitat. Future development within the City will be subject to the policies of the Biology and Natural Resources section and environmental review as required by CEQA. Page 14 of 37 October 9, 2014 5. CULTURAL RESOURCES: Potentially Less Than Lessthan No Impact Significant Significant Significant Impact with Impact Would the project: Mitigation Incorporated a. Cause a substantial adverse change in the significance of a historical resource as defined in X CEQA Guidelines Section 15064.5? b. Cause a substantial adverse change in the significance of an archaeological resource X pursuant to CEQA Guidelines Section 15064.5? c. Directly or indirectly destroy a unique paleontological resource or site or unique geologic X feature? d. Disturb any human remains, including those X interred outside of formal cemeteries? Cultural Resources Settinq,: As noted in the General Plan, Petaluma has over 300 properties of potential historic significance. The Coast Miwok Indians resided in southern Sonoma County, and Petaluma was originally the name of a Miwok village east of the Petaluma River. Early settlers from the eastern United States flocked to the City in the mid -1800s after the discovery of gold. Historic resources within Petaluma include the train depot, residential neighborhoods, pedestrian and vehicular bridges, and an abundance of commercial and industrial structures. A significant portion of the Downtown commercial core is located within the Petaluma Historic Commercial District, which is listed on the National Register of Historic Places. Development is designed to protect and complement historic districts and structures. The General Plan notes that historic resources are central to Petaluma culture and contribute greatly to the aesthetic quality and character of the downtown. The Historic Preservation Chapter of the General Plan includes policies and programs to protect the City's historic and cultural resources throughout the City. Cultural Resources Impact Discussion: 5(a). No Impact: Adopting the 2015-2023 Housing Element update will not by itself cause a substantial adverse change in the significance of a historical resource within the City of Petaluma. Impacts on historical resources resulting from anticipated growth and development or from the removal, modification or demolition of existing residences were addressed in the General Plan EIR. Mitigation measures integrated into the various elements of the General Plan in the form of goals, policies, and implementation measures will reduce impacts to a level of less than significant. The General Plan has an extensive list of policies and programs for historic preservation. Additionally, the standards from Section 7 (Historic Resources Conservation & Preservation) of the Smart Code establishes regulations for the protection of culturally and/or historically significant sites and structures in the CPSP area. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review, development standards and compliance with all applicable policies related to any historical resources. 5(b). No Impact: Adopting the Housing Element update will not by itself cause a substantial adverse change in the significance of an archaeological resource. Existing General Plan policies related to archaeological resources will continue to apply to future development projects. Impacts associated with archaeological resources resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. Mitigation measures were integrated into the 2008 General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to less -than - Page 15 of 37 October 9, 2014 significant levels. Adopting the Housing Element update will not result in new or increased impacts on archaeological resources not anticipated in the General Plan. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to any archaeological resources. 5(c). No Impact: Adopting the Housing Element update will not by itself directly or indirectly destroy a unique paleontological resource or site or unique geologic feature. No site-specific development is proposed as a result of Housing Element implementation. Impacts associated with paleontological resource or site or unique geologic feature resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. Mitigation measures were integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to less -than - significant levels. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to any unique paleontological resource or site or unique geologic feature. 5(d). No Impact: Adopting the Housing Element update will not by itself disturb any human remains, including those interred outside of formal cemeteries. Impact on human remains resulting from the anticipated growth and development of the City or from the removal, modification or demolition of existing residential units were addressed in the EIR for the Petaluma General Plan. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to human remains or other cultural resources. 6. GEOLOGY AND SOILS: Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Mitigation Would the project: Incorporated a. Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated X on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? (Refer to Division of Mines and Geology Publication 42) ii) Strong Seismic ground shaking? X iii) Seismic -related ground failure, including X liquefaction? iv) Landslides? X b. Result in substantial erosion or the loss of topsoil? X c. Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on or X off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d. Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), X creating substantial risks to life or property? e. Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater X disposal systems where sewers are not available for the disposal of waste water? Page 16 of 37 October 9, 2014 Geoloqv and Soils Settinq Within Petaluma, the most significant geologic hazards are those associated with liquefaction, expansive soils, and ground shaking during earthquakes. Other geologic hazards include the potential for expansive soils and soil erosion. The City of Petaluma lies within a seismically active region. The principal faults in the area are capable of generating large earthquakes that could produce strong to violent ground shaking in Petaluma. No active faults run directly through the City, however the City is less than 5 miles northeast of the Rodgers Creek Fault. The traces of the Rodgers Creek closest to the City are not historically active (within the last 200 years), but show evidence of activity during the last 11,000 years, a relatively short time in terms of geologic activity. Within Petaluma, the areas most at risk from liquefaction are along the Petaluma River. Figure 3.7-5 of the 2008 General Plan shows areas with potential liquefaction hazard. Although liquefaction often causes severe damage to structures, structural collapse is uncommon. The risk to public safety from liquefaction, therefore, is relatively low. Structures can be protected from liquefaction through the use of special foundations. The City's Building Code requires that each construction site suspected of containing liquefaction -prone soils be investigated and the soils be treated to eliminate the hazard. Expansive soils are significant geologic hazards in the City. Expansive soil materials occur in the substrate of the clays and clayey loams in the City. Buildings, utilities and roads can be damaged by expansive soils and the gradual cracking, settling, and weakening of older buildings in the City has created significant safety concerns and financial loss. To reduce the risks associated with expansive soils, the City's Building Code requires that each construction site suspected of containing expansive soils be investigated and the soils be treated to eliminate the hazard. Soil erosion is a geologic hazard in relationship to construction activity within the City. Soil erosion is naturally occurring process. The agents of soil erosion are water and wind, each contributing a significant amount of soil loss. The effects of erosion are intensified with an increase in slope, the narrowing of runoff channels, and by the removal of groundcover. When completed, surface improvements, such as buildings and paved roads, decrease the potential for erosion onsite, but can increase the rate and volume of runoff, potentially causing off-site erosion. If unmitigated, eroding soil can clog drainages and cause flooding, slope instability, and additional erosion by diverting water flow. To reduce the risks associated with erosion, the City's Building Code requires that the grading of each construction site be planned and implemented to eliminate the hazard. The National Pollution Discharge Elimination System (NPDES) permitting process is instrumental in this effort (see Section 3.6, Hydrology and Water Quality, of the General Plan EIR). Geoloqv and Soils Impact Discussion: 6(a). No Impact: Adopting the 2015-2023 Housing Element update will not by itself expose people or structures to potential substantial adverse effects, including the risk of loss, injury or death involving rupture of a known earthquake fault, strong seismic ground shaking, or seismic -related ground failure, including liquefaction and landslides. Impacts to persons and property associated with seismic activity resulting from full build -out of the General Plan were addressed in the General Plan EIR. Standard measures integrated into the General Plan in the form of goals, policies, and implementation measures applicable to future development projects will reduce the severity of potential impacts. Conformance with standard Uniform Building Code Guidelines would also minimize potential impacts from seismic shaking. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and geotechnical evaluation. 6(b). No Impact: Adopting the Housing Element update will not by itself result in substantial soil erosion or the loss of topsoil. Impacts to soils resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. No new or increased impact will result above what is already anticipated in the existing environmental documents as a result of adopting the Housing Element update. Page 17 of 37 October 9, 2014 Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to erosion. 6(c). No Impact: Adopting the Housing Element update itself will not cause structures to be subject to landslide, lateral spreading, subsidence, liquefaction or collapse. Geologic impacts resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. Standard measures integrated into the General Plan in the form of goals, policies, and implementation measures applicable to future development projects will reduce the severity of potential impacts. In addition, new development would be subject to the City's Implementation Zoning Ordinance related to grading, erosion, and sediment control. No new or increased impacts will result above what is already anticipated in the existing environmental documents. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to landslides, lateral spreading, subsidence, liquefaction and collapse. 6(d). No Impact: Adopting the Housing Element update itself will not cause development to occur on expansive soil creating substantial risks to life or property. Standard measures integrated into the 2008 General Plan in the form of goals, policies, and implementation measures applicable to future development projects will reduce the severity of potential impacts. No new or increased impacts will result above what is already anticipated in the General Plan EIR as a result of adopting the Housing Element update. Furthermore, any development as a result of the Housing Element update would be subject to all existing City development standards and will be subject to further environmental review and soils analysis. 6(e). No Impact: Adopting the Housing Element update itself will not cause development to occur on soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems. The Housing Element update identifies areas for future housing that are located within the City limits in urbanized locations where adequate sewer facilities are available. Impacts resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. Standard measures integrated into the General Plan in the form of goals, policies, and implementation measures applicable to future development projects will reduce the severity of potential impacts. No new or increased impacts will result beyond those already anticipated in the existing environmental documents as a result of adopting the Housing Element update. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to soils incapable of supporting wastewater disposal. Greenhouse Gas Emissions: Potentially Less Than Lessthan No Impact Significant Significant Significant Impact with Impact Mitigation Would the project: Incorporated Generate greenhouse gas emissions, either directly or indirectly, that may have a significant X impact on the environment? Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the X emissions of greenhouse gases? Setting The potential effect of greenhouse gas (GHG) emissions on global climate change is an emerging issue that warrants discussion under CEQA. Unlike the pollutants discussed above (Section 3. Air Quality) that may have regional and/or local effects, project -generated GHG emissions do not directly produce local or regional impacts, but may contribute to an impact on global climate change. While individual projects contribute relatively small amounts of GHG, when added to all other GHG producing activities around the world, they may result in global increases in these emissions. In addition, local or regional environmental Page 18 of 37 October 9, 2014 effects may occur if the climate is changed. Therefore, a project produces an indirect localized and regional environmental impact from its contribution of GHG and the subsequent change in global climate. The impacts identified as significant and unavoidable in the General Plan related to greenhouse gas emissions are: • A possible cumulatively considerable incremental contribution from General Plan development to the significant impact of global climate change. All General Plan policies adopted as mitigation apply to the 2015-2023 Housing Element update. Greenhouse Gas Emissions Impact Discussion: 7(a -b). No Impact: The California legislature passed Assembly Bill 32 in 2006, requiring that the State reduce greenhouse gas (GHG) emissions to 1990 levels by 2020. An enforceable statewide cap on GHG emissions was initiated in 2012. In addition, Senate Bill 375 seeks to curb GHGs by reducing urban sprawl and vehicle miles traveled. In response to these legislative actions, the City of Petaluma is currently preparing a Climate Action Plan in partnership with the County and other local jurisdictions which will implement General Plan Policy 4-P-27 "...prepare a Community Climate Action Plan to identify and prioritize programs, projects, and procedural policies that will help the City achieve the community greenhouse gas emission goals of Resolution 2005-118 (25% below 1990 levels by 2015)". Similar to the greenhouse gas emissions reduction plan identified by the California Attorney General, the Climate Action Plan will quantify community -wide emissions for 1990 (per Resolution 2005-118) and identify programs for reducing emissions by 2020. In 2007, the City prepared a revised Air Quality section for the General Plan EIR to address greenhouse gas emissions. Appendix A of the 2007 Revised EIR includes all of the applicable policies from the General Plan that significantly reduce Greenhouse Gas Emissions. One of these policies (Policy 3-P-97) directly identifies a component of this project: "work with regional and other agencies to create a new rail transit station near Corona Road with high-intensity, transit -oriented development." SMART projects the rail project will take more than 1.4 million car trips off Highway 101 annually and reduce greenhouse gases, which contribute to global warming, by at least 124,000 pounds per day. Implementation of the Housing Element update would not result in conflict with plans, policies, or regulations adopted for the purpose of reducing GHG emissions. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable strategies and implementation actions adopted for the purpose of reducing GHG emissions. Impact from the generation of GHG resulting from implementation of the proposed Housing Element Update would be less than significant. Page 19 of 37 October 9, 2014 8. HAZARDS/HAZARDOUS MATERIALS: Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Mitigation Would the project: Incorporated a. Create a significant hazard to the public or the environment through the routine transport, use, or X disposal of hazardous materials? b. Create a significant hazard to the public or the environment through reasonably foreseeable upset X and accident conditions involving the release of hazardous materials into the environment? c. Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste X within one-quarter mile of an existing or proposed school? d. Be located on a site that is included on a list of hazardous materials sites complied pursuant to Government Code Section 65962.5 and, as a X result, would create a significant hazard to the public or the environment? e. For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport of public use X airport, would the project result in a safety hazard for people residing or working in the project area? f. For a project within the vicinity of a private airstrip, would the project result in a safety hazard for X people residing or working in the project area? g. Impair implementation of or physically interfere with an adopted emergency response plan or X emergency evacuation plan? h. Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to X urbanized areas or where residences are intermixed with wildlands? Hazards/Hazardous Materials Impact Discussion: 8(a -g). No Impact: The 2015-2023 Housing Element update is a policy and regulatory document and does not propose any physical development activity, therefore it will not result in creation or emission of hazardous materials. Regulations related to hazardous materials and waste are implemented by a number of governmental agencies that have established regulations regarding the proper transportation, handling, management, use, storage, and disposal of hazardous materials for specific operations and activities. Pursuant to CEQA, the Department of Toxic Substances Control (DTCS) maintains a hazardous -waste and substances sites list (Cortese List). There are no Cortese sites within the City of Petaluma. The Project is not located within an Airport Land Use Plan or within the vicinity of a private air strip. In addition, the Project would not impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan. Any project proposed in the City would have to conform to any applicable adopted local or State codes that regulate public health and safety, such as the Uniform Building, Plumbing, Electrical, or Mechanical Codes. Therefore, adoption of the Housing Element update would not result in a significant impact. Depending on the attributes of each individual development proposal, future development will be subject Page 20 of 37 October 9, 2014 to additional environmental review and compliance with all applicable policies related to hazards or hazardous material. 8(h). No Impact: Impacts resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. Standard measures integrated into the General Plan in the form of goals, policies, and implementation measures applicable to future development projects will reduce the severity of potential impacts. Implementation of the proposed Housing Element update will have no impact beyond what was previously identified in the General Plan EIR. 9. HYDROLOGY AND WATER QUALITY: Would the project: a. Violate any water quality standards or waste discharge requirements? b. Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? C. Substantially alter the existing drainage pattern on the site or area, including through the alteration of the course of a stream or river, in a manner that would result in substantial erosion or siltation on or off-site? d. Substantially alter the existing drainage pattern on the site or area, including through the alteration of the course of a stream or substantially increase the rate or amount of surface runoff in a manner, which would result in flooding on- or off-site? e. Create or contribute runoff water that would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? f. Otherwise substantially degrade water quality? g. Place housing within a 100 -year flood hazard area as mapped on a federal flood hazard boundary or flood insurance rate map or other flood hazard delineation map? h. Place within a 100 -year flood hazard area structures that would impede or redirect flood flows? i. Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? j. Inundation by seiche, tsunami, or mudflow? Hydrology and Water Qualitv Setting: Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Mitigation Incorporated X X X X X X X X X X Petaluma River The Petaluma River run generally southwest through Petaluma and is a central feature of the Downtown after which it flows generally southeast directly into San Pablo Bay. The Petaluma River is used for recreational boating and water sports as well as long-standing river -dependent industrial operations. Historically the United States Army Corps of Engineers (USAGE) dredged the river on a four-year cycle to Page 21 of 37 October 9, 2014 maintain navigability for commercial shipping. However it has been eleven years since the last dredging. In order to ensure continued dredging services from the USACE, there must be an "economically justifiable" tonnage of commercial products moved on the river, as determined by the USACE. Dredging is vital not only to commercial operations, but also to recreational boating and flood control. While the General Plan suggests potential alternative sources to fund dredging operations, such as the establishment of an assessment district, the continued accommodation of industrial uses on the waterfront remains an important land use consideration. Flooding The Flood Insurance Study and Flood Insurance Rate Maps (FIRM) updated in 2014 by the Federal Emergency Management Agency (FEMA) identify areas in Petaluma subject to flooding during a 100 -year storm. There are several areas within Petaluma that historically have experienced significant flooding, including areas adjacent to the Petaluma River and Willow Brook Creek upstream of Corona Road. Water Supply Based on the General Plan EIR and a recent update of water supply and demand for the City's 2010 Updated Urban Water Management Plan adopted on June 6, 2011 (UWMP), adequate water is available to serve the future development identified in the General Plan. In addition, the Sonoma County Water Agency adopted its 2010 Urban Water Management Plan (Brown & Caldwell June 2011) on June 21, 2011. A copy of that Plan is available online at http://www.scwa.ca.gov/uwmp/. At page 1-8, and in Section 4.1-2, the Plan confirms the conclusion that neither the 2008 National Marine Fisheries Service Biological Opinion nor reasonably anticipated changes to it will affect the Water Agency's ability to deliver the quantities of water from its transmission system projected in its Plan. The General Plan EIR relied on the General Plan 2025 Water Demand and Supply Analysis (Dodson, July 2006, Technical Appendix, Vol. 2) and other referenced information to conclude that sufficient water supplies will be available to serve the City through General Plan buildout in 2025. The City's 2010 Urban Water Management Plan (UWMP) updated information from General Plan 2025 background and environmental documents and extended the term of water demand analysis to 2035. The UWMP's updated analysis found, given the total estimated future population, land use, and estimated water demand, the City's existing water supply contract with the Sonoma County Water Agency (SCWA), and planned City water recycling and water conservation programs, that sufficient water is available for long-range development through 2035. The 2010 UWMP was found to be internally consistent with the General Plan 2025. In evaluating the reasonable likelihood that sufficient water supply is available for future development, the City has compared General Plan 2025 projected demand to actual use through December 2013. The results of that comparison are discussed below and show that potable water demand is well within the available SCWA supply for cumulative demand some ten years beyond the General Plan 2025 buildout scenario used for cumulative impact analysis in the DEIR. General Plan 2025 Demand Monitoring General Plan 2025 Policy 8-P-4 provides in part as follows: The City shall routinely assess its ability to meet demand for potable water. A. The City shall continue to monitor the demand for water for projected growth against actual use, and ensure that adequate water supply is in place prior to, or in conjunction with, project entitlements. Page 22 of 37 October 9, 2014 B. The City planning staff will discuss water supply with the developer for each new development early in the planning process and inform Water Resources staff of upcoming demands as provided by the applicant. C. The City shall maintain a tiered development record to monitor approved and pending project developments to allow a reasonable forecast of projected water demand. The 2010 Urban Water Management Plan (UWMP) updated the General Plan 2025 water analysis and further refined a water supply program that relies upon water from SCWA, recycled water (potable offset), and conservation. As noted in the General Plan 2025 Policies 8 -P -5-C and 8-P-19, the City also anticipated continuing use of groundwater to meet emergency needs and to offset peak demands. Per Policy 8-P-4 of the Petaluma General Plan 2025, City staff is required to monitor actual demand for potable water in comparison to the supply and demand projections in the 2006 Water Supply and Demand Analysis Report. Staff has compared actual demand for potable water to an annual SCWA supply limit for Petaluma of 4,366 million gallons per year (13,400 acre-feet) and a peak supply limit of 21.8 million gallons per day. In both instances, potable demand is well within available SCWA supply capacity. Tiered water rates, conservation efforts, and the conversion of Rooster Run Golf Course to recycled water have kept annual and peak demands within the available SCWA supply at approximately 3,174 million gallons per year and an average day maximum month peak demand of 11.6 million gallons per day, respectively, in 2013. Use through December 2013, exhibited a downward trend in consumption since 2008, reflecting significantly increased water conservation during the peak summer months. In the past three years consumption has resumed an upward trend. Staff has also reviewed the projected demand of entitled projects and proposed projects compared to available supply as of December 31, 2013. Entitled projects are defined as approved projects that are either under construction or yet to be constructed. Proposed projects are those projects which are undergoing discretionary review or have been proposed as of December 31, 2013 and include the proposed Project. When proposed projects are added to the actual demands for 2013, there is a resulting aggregate demand of 3,375 million gallons per year and an average day maximum month peak demand of 12.43 million gallons per day. Both the annual and average day maximum month demands remain well within the available SCWA supply of 4,366 million gallons per year and the peak supply of 21.8 million gallons per day evaluated in the General Plan 2025 and the 2010 UWMP. Long term supply for buildout relies on the continued implementation of various phases of the City's recycled water program and water conservation programs to offset potable water use. Those programs are analyzed in the General Plan 2025 and 2010 UWMP with estimated dates for implementation dependent upon demand. The General Plan 2025 monitoring policies outlined above will continue to track the contribution of these programs to the supply and demand balance. General Plan Policy 8 -P -4.A is a further limitation on approval of development and requires an adequate water supply to be in place at the time of any future project entitlement. Future development projects will be subject to Chapter 15.17 of the Petaluma Municipal Code, the Water Conservation Regulations Ordinance, which contains water efficiency standards for all installed water using fixtures, appliances, irrigation systems, and any other water using devices to ensure that water is used as efficiently as possible throughout new development projects. Chapter 15.17 also provides enforcement mechanisms and penalties for water waste, up to and including shut off of water service. Hvdroloqv and Water Qualitv Impact Discussion: 9(a,b and f). No Impact: As a policy and regulatory document, implementation of the 2015-2023 Housing Element update will not result in the depleting, degrading or altering of ground water supplies. The City has adequate water supply resources to accommodate development of the City in compliance with the build -out projection established in the General Plan. 9(c). No Impact: As a policy and regulatory document, implementation of the Housing Element update will not result in alteration of the existing drainage patterns as it does not call for any specific development Page 23 of 37 October 9, 2014 projects. Erosion or siltation resulting from the anticipated growth and development in the City were addressed in the General Plan EIR. Standard measures integrated into the General Plan in the form of goals, policies, and implementation measures will reduce the severity of potential impacts. No new or increased impacts as a result of the Housing Element update will result beyond what is already anticipated in the existing environmental documents. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to drainage patterns and erosion or siltation. 9(d). No Impact: As a policy and regulatory document, implementation of the Housing Element update will not alter existing drainage patterns in a manner that would result in substantial alteration of drainage patterns or increases in the rate or amount of surface runoff in a manner that would result in flooding. Impacts on drainage patterns and surface runoff from the anticipated growth and development in the City have been addressed in the Petaluma General Plan EIR. Standard measures integrated into the General Plan in the form of goals, policies, and implementation measures will reduce the severity of potential impacts. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to drainage patterns and surface runoff. 9(e). No Impact: As a policy and regulatory document, implementation of the Housing Element update will not create or contribute runoff water that would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of polluted runoff. With new Low Impact Development (LID) requirements, the storm water runoff coming from developed sites may be required to mimic pre -developed conditions. Therefore, upsizing of storm drain mains may not be required with development. However, LID also requires water quality treatment of runoff coming from impervious surfaces. While on-site building improvements will treat and possibly detain runoff from building roofs, specialty storm water inlets with treatment components will need to be installed to handle runoff from streets and sidewalks. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with applicable policies and regulations related to erosion and stormwater run-off. 9(g j). No Impact: Portions of the City of Petaluma are located within a 100 -year flood hazard area. The policies of the General Plan reduce impacts from flooding through the establishment of the Petaluma River Corridor (PRC). The PRC is set aside for the design and construction of a flood terrace system to allow the River to accommodate a 100 -year storm event within a modified River channel. The General Plan also includes policies to implement the Petaluma River Watershed Master Drainage Plan. Impacts from potential flooding have been addressed in the General Plan EIR. As a policy and regulatory document, implementation of the Housing Element update will not involve the exposure of people or structures to a significant risk of loss, injury or death involving flooding, inundation by seiche, tsunami or mudflow. The sites identified for potential residential development in the Housing Element update could be located within a 100- year flood hazard area as mapped on a Federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map. The City of Petaluma General Plan has in place several policies that avoid flood hazards. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies and regulations regarding flood protection, hydrology, and water quality. There are no aspects of the proposed Housing Element update that would result in more severe flooding relative to what was analyzed under the General Plan EIR. Therefore, implementation would result in no impacts. 10. LAND USE AND PLANNING: Would the project: Physically divide an established community? Conflict with any applicable land use plan, policy, Page 24 of 37 October 9, 2014 Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Mitigation Incorporated X X or regulation of an agency with jurisdiction over the project (including, but not limited to, the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c. Conflict with any applicable habitat conservation X plan or natural community conservation plan? Land Use and Planninq Impact Discussion: 10(a). No Impact: The 2015-2023 Housing Element update will not divide an established community. It is consistent with the General Plan and other applicable City land use plans. 10(b -c). No Impact: The Housing Element update is consistent with all relevant documents and plans that regulate land use, particularly the General Plan's Implementing Zoning Ordinance, and CPSP and SmartCode. Impacts resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. No new or increased impacts as a result of the Housing Element update will result above what is already anticipated in the existing environmental documents. Depending on the attributes of these future planning efforts, additional environmental review will be completed. 11. Mineral Resources: Potentially Less Than Lessthan No Impact Significant Significant Significant Impact with Impact Mitigation Would the project: Incorporated a. Result in the loss of availability of a known mineral resource that would be of value to the region and X the residents of the state? b. Result in the loss of availability of a locally - important mineral resource recovery site X delineated on a local general plan, specific plan or other land use plan? Mineral Resources Impact Discussion: 11(a -b). No Impact: As a policy document, the 2015-2023 Housing Element update itself will not result in the loss of availability of a known mineral resource or of a locally important mineral resource recovery site. The General Plan EIR determined that no mineral resources would be affected through the implementation of the General Plan, therefore the EIR did not include an impact analysis of mineral resources. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to mineral resources. Page 25 of 37 October 9, 2014 12. NOISE: Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Would the project result in: Mitigation Incorporated a. Exposure of persons to or generation of noise levels in excess of standards established in the X local general plan or noise ordinance, or applicable standards of other agencies? b. Exposure of persons to or generation of excessive groundborne vibration or groundborne noise X levels? C. A substantial permanent increase in ambient noise levels in the project vicinity above levels X existing without the project? d. A substantial temporary or periodic increase in ambient noise levels in the project vicinity above X levels existing without the project? e. For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use X airport, would the project expose people residing or working in the project area to excessive noise levels? f. For a project within the vicinity of a private airstrip, would the project expose people residing or X working in the project area to excessive noise levels? Noise Settinq, Noise sources within the City of Petaluma include vehicular traffic, industrial activities, and trains. Noise from vehicular traffic is primarily generated on major arterials and US Highway 101. Industrial noise sources include mechanical equipment, trucks, and refrigeration units. Freight train service through Petaluma is currently irregular, and thus does not generate significant noise, however, the addition of SMART service will contribute to noise along the railroad corridor. The impacts identified as significant and unavoidable in the General Plan related to noise are: • Traffic related noise at General Plan buildout, which would result in a substantial increase in existing exterior noise levels that are currently above City standards. • Cumulative noise from proposed resumption of freight and passenger rail operations and possible resumption of intra -city trolley service, which would increase noise impacts. All General Plan policies adopted as mitigation apply to the Housing Element update. Noise Impact Discussion: 12(a). No Impact: Adopting the 2015-2023 Housing Element update will not by itself result in exposure of persons to or generation of noise levels in excess of standards established in the City of Petaluma's Noise Ordinance (Petaluma Municipal Code, Section 22-301), or applicable standards of other agencies. Existing noise regulations are present and apply to all development projects in the City. Additionally, future projects would be subject to CEQA, and, if review was triggered, it would include traffic and noise analysis and, where necessary, mitigation. Future projects encouraged or accommodated by the Housing Element update may produce traffic noise in levels that exceed City standards for noise -sensitive land Page 26 of 37 October 9, 2014 uses in the developed areas of the City, but any such impacts would be addressed during the environmental review process for the specific development in accordance with General Plan policies. There are no changes set forth in the Housing Element update that would conflict with established noise regulations. Therefore there would be no impact from implementation. 12(b). No Impact: Adopting the Housing Element update will not by itself result in exposure of persons to or generation of excessive groundborne noise levels. Construction activities that would occur as projects are implemented would have the potential to generate low levels of groundborne vibration. Impacts associated with noise and vibrations were addressed in the General Plan EIR. Mitigation measures, integrated into the General Plan in the form of goals, policies, and programs, will reduce all significant impacts to a level of less than significant. All future development will be subject to site-specific environmental studies as determined appropriate by the City and will comply with all City policies and regulations related to noise. 12(c). No Impact: Adopting the Housing Element update will not by itself result in a substantial permanent increase in ambient noise levels in the City above levels existing without the project. Impacts associated with noise and vibrations were addressed in the EIR for the General Plan. Mitigation measures, integrated into the General Plan in the form of goals, policies, and programs, will reduce all significant impacts to a level of less than significant. All future development will be subject to site-specific environmental studies as determined appropriate by the City and will comply with all City policies and regulations related to noise. 12(d). No Impact: Adopting the Housing Element update will not by itself result in a substantial temporary or periodic increase in ambient noise levels in the City above levels existing without the project. Construction activities that would occur as projects are implemented would have the potential to generate temporary increase in ambient noise levels. Impacts associated with temporary increase in ambient noise levels were addressed in the EIR for the General Plan. Mitigation measures, integrated into the General Plan in the form of goals, policies, and programs, will reduce all significant impacts to a level of less than significant. All future development will be subject to site-specific environmental studies as determined appropriate by the City and will comply with all City policies and regulations related to noise. 12(e). No Impact: The Petaluma Municipal Airport is classified in the National Plan of Integrated Airport Systems as a reliever airport for the greater San Francisco Bay Area. It is owned and operated by the City of Petaluma and is located in the Petaluma city limits along the eastern UGB. Most of the land north and east of the airport is agricultural or is dedicated parks and open space land. Residential development lies close to the airport on its southwest and northwest side. All new residential developments within the 55 to 65 CNEL contour are subject to an outdoor -to -indoor noise level reduction of at least 25-30 decibels. All future development will be subject to site-specific environmental studies as determined appropriate by the City and will comply with all City policies and regulations related to noise. 12(f). No Impact: Not applicable. The project is not located within the vicinity of a private airstrip Page 27 of 37 October 9, 2014 13. POPULATION AND HOUSING: Potentially Less Than Lessthan No Impact Significant Significant Significant • • Impact with Impact Mitigation Would the project: Incorporated a. Induce substantial growth in an area either directly (for example, by proposing new homes and X businesses) or indirectly (e.g. through extension of roads or other infrastructure)? b. Displace substantial numbers of existing housing units, necessitating the construction of X replacement housing elsewhere? c. Displace substantial numbers of people, necessitating the construction of replacement X housing elsewhere? Population and Housinq Settinq Housing Element law requires local governments to adequately plan to meet their existing and projected housing needs including their share of the regional housing need. HCD is required to allocate each region's share of the statewide housing need to regional Councils of Governments. In Petaluma's case, that is the Association of Bay Area Governments (ABAG). The RHNA process requires local governments to be accountable for ensuring that projected housing needs can be accommodated. The process maintains local control over where and what typed of development occurs in local communities while providing for the private sector to meet market demand. ABAG has assigned to Petaluma the following hosing need by income category: ct � t �ttt }ttt }ttt }ttt }ttt lt"t�, z} 7 �4y�tJk�'t;9tz}cN.r,�;t4d�1z: S),,.3f»f{�ltsi 2?��lh ,!,ci sl }�i�Stl �5n�..51 j11714C27f�}t1 �7C271} t.}i? t j��zpy> '7i t4}X55}7�nrt`�§`S�itlitt4�S�tS}`�n�lini3��tif 75 t it?�2�� t t k.bb tZr 4+t`%t'tt t %. t`:t1t� stt,t, r{ 7�tc,t tk�ttt}�;iY#c}7�; aft>n151'ti<5�(illt�t�,ta Very • 1 1 ofAMI) • • •(51%-80% of Moderate (81%-120% • Above Moderate (over 1 1 of AM 1) 322 TOTAL Associationof Bay Area Governments The land use classifications and zoning designations contained within the City's planning documents are intended to provide residents with a range of housing unit types and sizes to provide diverse housing opportunities. From 1960 to 2000, Petaluma's population increased by 40,513 residents which represents an increase of almost 300%. Since the 2000 Census, Petaluma's population has increased at a much slower pace, about .05% a year. ABAG projects that Petaluma's population will continue to grow to 67,200 by 2040. which is an increase of 8,200 residents over the current population of 59,000 (January 1, 2014). This is well within the projected buildout capacity of the General Plan and EIR which assumed a buildout population of 72,707. The Residential Sites Inventory Analysis (Appendix E) of the 2015-2023 Housing Element demonstrates that there is adequate capacity to accommodate future residential growth and Petaluma's affordable housing need. Page 28 of 37 October 9, 2014 Population and Housinq Impact Discussion: 13(a). Less Than Significant: Adopting the 2015-2023 Housing Element update will not by itself induce substantial population growth in the area. Population growth estimates for the Housing Element were based on adjusted state projections (ABAG 2013). The projections used show a population low of 62,000 in 2025 and a population high of 67,200 in 2040. This is below that projected for buildout under the 2008 General Plan, which is 72,707 by 2025. Therefore, population growth estimated for the Housing Element update is consistent with the 2008 General Plan. New housing development as infill development within the parameters of housing densities established by the Land Use Element will not induce substantial population growth beyond that estimated by the General Plan. 13(b). No Impact: Adopting the Housing Element update will not result in the displacement of substantial numbers of existing housing units, necessitating the construction of replacement housing elsewhere. The Housing Element supports the development of on-site inclusionary housing, provides incentives for residential development, prioritize affordable housing subsidies, and preserves existing residential units. The City's Housing Element programs and policies facilitate housing conservation and maintenance and therefore has the potential to improve the quality of the existing housing stock within the City of Petaluma. There is no impact that would result from implementation of the proposed Housing Element update. 13(c). No Impact: Adopting the Housing Element update will not result in the displacement of substantial numbers of people, necessitating the construction of replacement housing elsewhere. Areas within the City of Petaluma are largely built out; proposed residential development will be primarily infill development on vacant or underutilized sites. The Housing Element update contains recommendations to address the City's future housing needs by encouraging housing that provides diversity in type and price. No aspect of the project involves the displacement of any number of people. Therefore, there would be no impact from the Housing Element update. 14. PUBLIC SERVICES: Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: a. Fire protection? b. Police protection? c. Schools? d. Parks or other recreational facilities? e. Other public facilities? Public Services Settinq: Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Mitigation Incorporated X X X X X The City charges one-time impact fees on new private development in order to offset the cost of improving or expanding City facilities to accommodate the project. Impact fees are used to help fund the construction or expansion of needed capital improvements. Petaluma collects impact fees for open space, parkland, and others. Development impact fees are necessary in order to finance required public facilities and service improvements and to pay for new development's fair share of the costs of the required public facilities and service improvements. The City is served by Petaluma government services. Page 29 of 37 October 9, 2014 Public Services Impact Discussion: 14(a). No Impact: Adopting the 2015-2023 Housing Element update will not by itself result in substantial adverse physical impacts associated with the provision of new or physically altered fire protection facilities to maintain necessary levels of service. Impacts associated with new fire protection facilities resulting from the anticipated growth and development of the City were addressed in the EIR for the Petaluma General Plan. Mitigation measures integrated into the General Plan in the form of goals, policies, and implementation measures are designed to reduce all significant impacts to levels of less than significant. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to public services. 14(b). No Impact: Adopting the Housing Element update will not by itself result in substantial adverse physical impacts associated with the provision of new or physically altered police protection facilities. Impacts associated with new police protection facilities resulting from the anticipated growth and development of the City were addressed in the General Plan EIR. Mitigation measures integrated into the General Plan in the form of goals, policies, and implementation measures are designed to reduce all significant impacts to levels of less than significant. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to public services. 14(c). No Impact: Adopting the Housing Element update will not by itself result in substantial adverse physical impacts associated with providing new or physically altered school facilities. Impacts to school facilities were addressed in the General Plan and EIR. There are four elementary school districts (Petaluma City Unified, Waugh, Old Adobe, and Cinnabar). The General Plan estimated that the Waugh and Cinnabar School Districts would decrease their enrollments while the Petaluma City Unified School District would experience an increase in enrollment. The City's secondary schools belong to the Petaluma Joint Union High School District and are estimated to have a decrease in enrollment. There are no changes in the Housing Element update that would alter the student enrollment projections set forth in the General Plan. Therefore, there would be no impact to schools. 14(d). No Impact: Adopting the Housing Element update will not by itself result in substantial adverse physical impacts associated with the provision of new or physically altered park facilities. The City has adopted a citywide parks standard of 5 acres of parkland per 1,000 residents. With the proposed park and open space component of the General Plan, there is sufficient space reserved for future parks required with the increase in population. Mitigation measures supporting parks or other recreational facilities were integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to less -than - significant levels. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to parks or other recreational facilities. 14(e). No Impact: Adopting the Housing Element update will not by itself result in substantial adverse physical impacts associated with providing new or physically altered public facilities. Impacts associated with new public facilities resulting from the anticipated growth and development in the City, were addressed in the General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to public services. Page 30 of 37 October 9, 2014 15. RECREATION: Would the project: a. Increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? b. Include recreational facilities or require the construction or expansion of recreational facilities, which might have an adverse physical effect on the environment? Recreation Settinq Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Mitigation Incorporated X The Recreation, Music, Parks, and the Arts element of the General Plan accommodates a wide range of uses and variety of spaces for recreation, such as pocket parks, neighborhood parks, community parks, regional parks, open space corridors, and recreational and cultural facilities to address the recreation needs of the community and future residents. Recreation Impact Discussion: 15(a). No Impact: Adopting the 2015-2023 Housing Element update will not by itself result in an increase in use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of facilities would occur or be accelerated. Impacts to existing recreational facilities resulting from population growth were addressed in the General Plan EIR. Mitigation measures have been integrated into the 2008 General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to less -than -significant levels. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to recreational facilities. 15(b). No impact: The Housing Element update does not have provisions or requirements for the construction or expansion of recreational facilities. Impacts associated with the construction or expansion of recreational facilities in response to population growth has been addressed in the General Plan EIR. Mitigation measures were integrated into the 2008 General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to levels of less than significant. Depending on the attributes of each individual development proposal, future development will be subject to additional environmental review and compliance with all applicable policies related to recreational facilities. Page 31 of 37 October 9, 2014 16. TRANSPORTATION AND CIRCULATION: Potentially Less Than Lessthan Significant Significant Significant No Impact Impact with Impact Mitigation Would the project: Incorporated a. Conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation including mass transit and non -motorized travel and relevant X components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? b. Conflict with an applicable congestion management program, including, but not limited to level of service standards and travel demand X measures, or other standards established by the county congestion management agency for designated roads or highways? c. Result in a change in air traffic patterns, including either an increase in traffic levels or a change in X location that results in substantial safety risks? d. Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous X intersections) or incompatible uses (e.g., farm equipment)? e. Result in inadequate emergency access? X f. Conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian X facilities, or otherwise decrease the performance or safety of such facilities? Transportation and Circulation Settinq, The General Plan 2025, Central Petaluma Specific Plan, and the Petaluma SMART Rail Station Areas: TOD Master Plan contain recommended circulation facilities throughout the City, including: • A description of the multimodal approach and principles for planning and prioritizing projects, programs, and use of public rights-of-way. • An overview of planned access & connectivity improvements including: o New sidewalks and pedestrian facilities, o New multi -use pathways (MUP), including the planned SMART MUP o New on -street bike lanes o New Neighborhood Greenways o Multimodal bridge improvements • Recommended enhancements for Petaluma Transit. • `Complete streets' and universal design standards. • A detailed description of and plan for multimodal access to the Downtown Petaluma Station Area and circulation within the adjacent parcels planned for Transit -Oriented Development (TOD). • Anticipated parking demand for: o Commuter parking (station -generated demand) o Residential parking (TOD generated demand) o Employment/commercial parking (TOD generated demand) • Potential for shared parking and priced parking; Page 32 of 37 October 9, 2014 Feasibility of establishing parking maximum ratios and abolishing minimum parking ratios. Potential TOD Parking Policies for these station areas, including strategies to reduce parking demand and promote alternative means of station access. This includes recommendations for: o TOD parking ratios for residential and commercial projects o The share of parking to be built at surface and in structures in each phase of development. The impacts identified as significant and unavoidable in the General Plan related to traffic are: • Increased motor vehicle traffic which would result in unacceptable level of service (LOS) at six study intersections: o McDowell Boulevard North/Corona Road o Lakeville Street/Caulfield Lane o Lakeville Street/East D Street o Petaluma Boulevard South/D Street o Sonoma Mt. Parkway/Ely Boulevard South/East Washington Street o McDowell Boulevard North/Rainier Avenue All General Plan policies adopted as mitigation apply to the Housing Element update. Transportation and Circulation Impact Discussion: 16(a). No Impact: Adopting the 2015-2023 Housing Element update will not by itself cause an increase in traffic that is substantial in relation to the existing traffic load and capacity of the street system. Increases in traffic resulting from the anticipated growth and development of the City have been addressed in the General Plan EIR. The traffic impacts of any new development will be addressed in separate site-specific studies. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. The proposed Housing Element update does not introduce any new or more severe impacts relative to what was previously analyzed in the General Plan EIR. Therefore, implementation of the proposed Housing Element update would have no impact. 16(b). No Impact: Adopting the Housing Element update will not by itself cause traffic levels to exceed, either individually or cumulatively, a level of service standard established by the County congestion management agency for designated roads or highways. Impacts resulting from the anticipated growth and development of the City on the level of service for roads or highways were addressed in the General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. The traffic impacts of any new residential development will be addressed in separate site-specific studies. 16(c). No Impact: Adoption of the Housing Element update will not have any impact on air traffic patterns, given the nature and location of anticipated residential development outside of the established airport flight pattern. 16(d). No Impact: Adoption of the Housing Element update, a policy document, does not involve construction or physical design. Therefore, there are no anticipated impacts associated with hazards due to transportation -related design features or incompatible uses. 16(e). No Impact: Adoption of the Housing Element update, a policy document, does not involve construction or physical design. No implementation measure or policy of the element would result in the construction of residential units that could result in inadequate emergency access. 16(f). No Impact: None of the recommendations contained in the Housing Element update conflict with adopted policies, plans, or programs supporting alternative modes of transportation (e.g., bus turnouts, bicycle racks). Page 33 of 37 October 9, 2014 17. UTILITIES AND SERVICE SYSTEMS: Potentially Less Than Lessthan No Impact Significant Significant Significant Impact with Impact Mitigation Would the project: Incorporated a. Exceed wastewater treatment requirements of the X applicable Regional Water Quality Control Board? b. Require or result in the construction of new water or wastewater treatment facilities or expansion of X existing facilities, the construction of which could cause significant environmental effects? c. Require or result in the construction of new storm water drainage facilities or expansion of existing X facilities, the construction of which could cause significant environmental effects? d. Have sufficient water supplies available to serve the project from existing entitlements and X resources, or are new or expanded entitlements needed? e. Result in a determination by the wastewater treatment provider, which serves or may serve the project that it has adequate capacity to serve the X project's projected demand in addition to the provider's existing commitments? f. Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste X disposal needs? g. Comply with federal, state, and local statutes and X regulations related to solid waste? Utilities and Service Svstems The City charges one-time impact fees on new private development in order to offset the cost of improving or expanding City facilities to accommodate the project. Impact fees are used to help fund the construction or expansion of needed capital improvements. Petaluma collects impact fees for open space, park land, traffic impact, wastewater, water capacity, storm drain, public art, and others. Utilities and Service Systems Impact Discussion: 17(a). No Impact: Adopting the Housing Element update will not by itself cause or exceed wastewater treatment requirements of the Regional Water Quality Control Board. Impact of full residential build -out on wastewater treatment requirements was addressed in the General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. The Housing Element update would not increase demand for services beyond what has previously been identified in the General Plan EIR. Therefore there would be no impacts due to insufficient capacity. 17(b). No Impact: Adopting the Housing Element update will not by itself require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects. Construction relating to these improvements were addressed in the General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. There are no changes set forth in the Housing Element update that would conflict with the General Plan. Thus, there would be no impacts. Page 34 of 37 October 9, 2014 17(c). No Impact: Adopting the Housing Element update will not by itself require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the construction of which could cause significant environmental effects. With new Low Impact Development (LID) requirements, the storm water runoff coming from developed sites may be required to mimic pre -developed conditions. Therefore, upsizing of storm drain mains may not be required with development. However, LID also requires water quality treatment of runoff coming from impervious surfaces. While on-site building improvements will treat and possibly detain runoff from building roofs, specialty storm water inlets with treatment components will need to be installed to handle runoff from streets and sidewalks. Current Phase II Storm Water Regulations do not require storm water detention for a 2 year event in areas that directly discharge to portions of the river that are tidally influenced. Storm water detention for 10 and 100 -year events may not be required in the lower reach of the watershed and will require further analysis as projects are proposed. Issues related to environmental effects resulting from the construction of new facilities or expansion of existing facilities were addressed in the General Plan EIR. Mitigation measures were integrated into the 2008 General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. Environmental impacts related to the construction of new facilities will be addressed through CEQA analysis. 17(d). No Impact: Adopting the Housing Element update is not the type of project that requires water, as the project is a policy document. The continued and anticipated population growth projected in the element is consistent with the Land Use Element of the General Plan and all other elements. Impacts related to future water supplies were addressed in the General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. The Housing Element update would not increase demand for services beyond what has previously been identified in the General Plan EIR. Therefore there would be no impacts due to insufficient water supplies. 17(e). No Impact: The Housing Element update is not the type of project that could require a determination by the wastewater treatment provider regarding the adequate capacity of the facility to serve the projected demand of the project, as the project is a policy document. The continued and anticipated population growth projected in the element is consistent with the Land Use, Growth Management and Built Environment Section (Land Use Element) of the General Plan and all other elements. Impacts related to the adequacy or capacity of wastewater treatment providers to serve the anticipated population growth were addressed in the General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. The Housing Element update would not increase demand for services beyond what has previously been identified in the General Plan EIR. Therefore there would be no impacts due to insufficient capacity. 17(f). No Impact: The Housing Element update is not the type of project that would generate solid waste, as the project is a policy document. Impacts related to landfill capacity and solid waste disposal needs resulting from the anticipated population growth of the City were addressed in the General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. The Housing Element update would not increase demand for services beyond what has previously been identified in the General Plan EIR. Therefore there would be no impacts due to inadequate solid waste disposal. 17(g). No Impact: The Housing Element update is not a project subject to solid waste regulations as the project is a policy document, involving no new construction. Anticipated future development in the City and impacts related to solid waste were addressed in the General Plan EIR. Mitigation measures have been integrated into the General Plan in the form of goals, policies, and implementation measures to reduce all significant impacts to a level of less than significant. The Housing Element update would not Page 35 of 37 October 9, 2014 increase demand for services beyond what has previously been identified in the General Plan EIR. Therefore there would be no impacts due to a conflict with applicable regulations. 18. MANDATORY FINDINGS OF SIGNIFICANCE (Cal. Pub. Res. Code §15065) A focused or full environmental impact report for a project may be required where the project has a significant effect on the environment in any of the following conditions: Potentially Less Than Less than No Impact Significant Significant Significant Impact with Impact Mitigation Incorporated Potential to degrade: Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, X threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal, or eliminate important examples of the major periods of California history or prehistory? Cumulative: Does the project have impacts that are individually limited but cumulatively considerable? (i.e., incremental effects of a project are considerable when viewed in connection with X the effects of past projects, the effects of other current projects, and the effects of probable future projects)? Substantial adverse: Does the project have environmental effects, which will cause substantial X adverse effects on human beings, either directly or indirectly? 18(a) No Impact: The Housing Element update is consistent with the City's General Plan and analyses conducted as part of the EIR. The proposed policies and programs are consistent with the General Plan Land Use and goals, policies and programs. As such, the Housing Element update will not degrade the quality of the environment, reduce habitat, or affect cultural resources. Therefore, the project will have no impacts due to degradation of the environment. 18(b) No Impact: The Housing Element update is consistent with the City's General Plan land use designations and does not result in any changes. The policies and programs set forth therein perpetuate the intent of the UGB by promoting infill development on underutilized lots. Public utility and service providers will be capable of serving any future development resulting from the proposed update. The General Plan EIR previously analyzed potential environmental impacts and determined that with adherence to policies and programs impacts are expected to remain at levels below significance, and long-term environmental goals are not expected to be adversely impacted. The Housing Element update does not increase the severity of any of the impacts from the levels identified and analyzed in the General Plan EIR. Therefore, the project would result in no new cumulative impacts. 18(c) No Impact: The General Plan and EIR identified policies, programs, and mitigation measures to ensure protections that implementation would not result in adverse impacts to humans or the environment. The Housing Element updated does not conflict with adopted policies nor does it introduce Page 36 of 37 October 9, 2014 new policies that would interfere with the goal of protecting human health and the environment. Therefore the project will have no impacts due to substantial adverse environmental effects. 111. INFORMATION SOURCES: General Plan and Zoning Ordinance General Plan Chapter 1. Land Use, Growth Management, & the Built Environment General Plan Chapter 2. Community Design, Character, &Green Building General Plan Chapter 3. Historic Preservation General Plan Chapter 4. The Natural Environment General Plan Chapter 5. Mobility General Plan Chapter 6. Recreation, Music, Parks, & the Arts Other Sources of Information Central Petaluma Specific Plan Central Petaluma Specific Plan EIR FEMA Flood Insurance Rate Maps Petaluma SMART Rail Station Areas TOD Master Plan Petaluma UWMP BAAQMD CAP Page 37 of 37 October 9, 2014 General Plan Chapter 7. Community Facilities, Services & Education General Plan Chapter 8. Water Resources General Plan Chapter 9. Economic Health & Sustainability General Plan Chapter 10. Health & Safety General Plan Chapter 11. Housing Implementing Zoning Ordinance/ Maps Other Records, Studies, Reports Published geological maps General Plan 2025 EIR SmartCode SCWA UWMP BAAQMD CEQA Guidelines H!"I"', W11111xv (Chapter 11 of Petaluma's General Plan 2025) DRAFT May 2014 REVISION #1 AUGUST 2014 Mayor David Glass Councilmembers: Chris Albertson Teresa Barrett Mike Harris Mike Healy Gabe Kearney Kathy Miller John C. Brown, City Manager Approved and Adopted by Petaluma City Council — Insert date Certified by California's Department of Housing & Community Development Insert date City of Petaluma Housing Element TABLE OF CONTENTS Page 1. Introduction........................................................................................... 1 1.1 Portrait of the Community............................................................. l 1.2 California Housing Element Law..................................................1 1.3 Relationship to 2025 General Plan ................................................ 3 1.4 Community Participation...............................................................3 2. Evaluation of the Existing Element ..................................................... 6 2.1 Effectiveness of Existing Element ................................................. 6 2.2 Significant New Programmatic Commitments ............................. 7 2.3 Appropriateness of Policies and Programs ................................... 9 2.4 Summary of Affordable Housing Achievements .......................... 9 3. Projected Housing Needs......................................................................10 4. Analysis of At -Risk Projects.................................................................12 S. Housing Opportunities and Resources................................................13 5.1 Resources to Accomplish Goals.....................................................13 5.2 Residential Development Opportunities.......................................16 5.3 Infrastructure & Environmental Constraints .............................. 24 6. Constraints to Meet Housing Needs .................................................... 27 6.1 Governmental Constraints............................................................. 27 6.2 Non-governmental Constraints...................................................... 44 7. Goals, Policies, and Programs.............................................................. 47 �7j4kt� 2t�����r��? • • • f�Xm:�.t' Sy7 Page Table 1 Housing Units Built during 2009-2014 Housing Element ............................ 7 Table 2 Regional Housing Need Allocation..............................................................10 Table 3 Quantified Objectives...................................................................................11 Table 4 Residential Units Built,Under Construction, and /or Approved ..............17 Table 5 Residential Projects Submitted....................................................................18 Table 6 Vacant & Underutilized Sites....................................................................... 22 Table 7 Remaining Regional Housing Need............................................................. 24 Table 8 Residential Land Use Designation............................................................... 28 Table 9 Residential Zones — Implementing Zoning Ordinance .............................. 32 Table 10 — Residential Zones — Smart Code................................................................. 32 Table 11 Development Standards................................................................................ 33 Table 12 Building and Planning Fees.... ............ 40 Table 13 Development Impact Fees............................................................................. 41 Table 14 Total Fees as a proportion to Development Cost ....................................... 42 City of Petaluma Housing Element M APPENDICES Appendix A Housing Needs Assessment Appendix B Review of Previous Housing Element 2009-2014 Appendix C Affordable Housing Achievements — Projects and Programs Appendix D Assisted Housing Communities and Map Appendix E Residential Site Inventory Analysis Prepared by City of Petaluma Staff - Sue Castellucci, Housing Coordinator Scott Duiven, Senior Planner imC i t y of Petaluma Housing Element City of Petaluma Housing Element IM HOUSING - 11 1=111" 1 1 A PORTRAIT OF THE COMMUNITY Petaluma is located 40 miles north of San Francisco in southern Sonoma County, bisected by the Petaluma River and under the backdrop of the Sonoma Mountains. It is a unique, geographically defined community with a distinctive character derived from its geography and physical diversity. Petaluma has a reputation of maintaining a "small town" atmosphere even as its population has grown to over 58,000 people. A brief history of the development of Petaluma shows that the community was incorporated in 1858 and grew steadily following incorporation. There was a notable residential growth spurt following suburbanization from the 1950's to 1970's resulting in the adoption of its well-known residential growth management program. Following that landmark legislation, the city slowed its residential growth rate to not exceed 500 units per year through the turn of the 20"' century. Although the growth management program is hardly mentioned in today's planning milieu, the annual growth rate during the first 14 years of the new century was at an annual rate of just one half percent. The 2015-2023 Housing Element presents a picture of what Petaluma's population is predicted to look like over the next eight years and how the City plans to address the housing needs of that population, particularly its low and moderate income families, seniors, and special needs households. 1.2 CALIFORNIA HOUSING ELEMENT LAW State law requires each city to adopt a general plan containing at least seven elements including housing. Unlike the other mandatory elements, the housing element is required to be updated City of Petaluma Housing Element im - -- � �-- ; r ` -- ------- ---- ------ -- ------- ---- HOUSING- 11 every eight years (previously five year review) and is subject to detailed statutory requirements and mandatory review by the State Department of Housing and Community Development (HCD). This requirement reflects the statutory recognition that the availability of housing is a matter of statewide importance and that cooperation between government and the private sector is critical to attain the State's housing goal of a decent housing and a suitable living environment for every California family. (California Government Code Article 10-6, Sections 65580-65589.5.) 1.2.1 REGIONAL HOUSING NEEDs ANALYSIS Housing Element law requires local governments to adequately plan to meet their existing and projected housing needs including their share of the regional housing need. Housing element law is the state's primary market-based strategy to increase housing supply and choice. The law recognizes that in order for the private sector to adequately address housing needs and demand, local governments must adopt land use plans and regulatory measures that provide opportunities for housing development. HCD is required to allocate each region's share of the statewide housing need to regional Councils of Governments. For Petaluma, that is the Association of Bay Area Governments (ABAG). The `fair share' which evolves is based on state population projections and regional population forecasts used in preparing regional transportation plans. ABAG developed a Regional Housing Need Allocation (RHNA) assessment allocating the region's share of the statewide need to the cities and counties within their jurisdiction. The goal of RHNA is to: • Increase the housing supply and the mix of housing types, tenure, and affordability in all cities and counties within the region in an equitable manner; • Promote infill development and socioeconomic equity, the protection of environmental and agricultural resources, and the encouragement of efficient development patterns; and • Promote an improved intraregional relationship between jobs and housing. The RHNA process requires local governments to be accountable for ensuring that projected housing needs can be accommodated. The process maintains local control over where and what type of developments should occur in local communities while providing opportunity for the private sector to meet market demand. See pages 10 through 12 for a thorough analysis of the City's RHNA allocation and Housing needs. 1.2.2USI L T COMPONENTS State law requires that this element must include the following components: • An evaluation of the 2009-2014 Housing Element City of Petaluma Housing Element HOUSING- 11 • A housing needs assessment, including the City's share of the regional housing need • A sites inventory analysis • A discussion of governmental and non-governmental constraints on housing • An inventory of resources available to meet housing needs • The City of Petaluma's specific housing program goals, policies and programs • Quantified objectives for the City to use in addressing its housing needs through 2023 The policies and programs of the City's 2025 General Pian, adopted in May, 2008 support and encourage the development of affordable housing projects and programs. This Housing Element has been deemed to be consistent with the current General Plan. 1.4 COMMUNITY PARTICIPATION Petaluma's Housing Element was prepared with public outreach and participation. • Partnering with a wide variety of community-based agencies and committees representing various sectors of the community (see list below) provides the housing staff with a broad- based up-to-date review of existing and changing needs. • Public input was solicited during the preparation of the draft Housing Element by utilizing an online survey. • Other governmental agencies and citizen task forces were contacted to coordinate housing plans and anticipated resources both locally and on an area wide basis. • A public workshop was held on April 10, 2014. The draft Housing Element was made available to the public by posting it on the City's website. Because formal public hearings often do not include involvement by the community's low-income households, the Plan provides for and encourages public participation in a small group setting, emphasizing involvement by low- and moderate -income people — especially those living in low - and moderate -income neighborhoods. Also, the City takes whatever actions are appropriate to encourage participation of minorities, people who do not speak English, and people with disabilities. The following agencies, groups, and organizations were contacted to review the draft housing element: American Lung Association Boys and Girls Clubs of Petaluma Buckelew Programs Burbank Housing Development Corp. Committee on the Shelterless (COTS) Community Housing Sonoma County ����1City of Petaluma Housing Element HOUSING- 11 Continuum of Care, Sonoma County Disability & Legal Center Eden Housing, Inc. Housing Land Trust of Sonoma County Craig Meltzner & Associates Mission Hills Mortgage PEP Housing Petaluma People Services Center Rebuilding Together Petaluma NAMI of Sonoma County North Bay Regional Center North Bay Children's Center Northbay Family Homes North Bay Area Realtors Old Adobe Developmental Services Old Republic Title Company Seifel Consulting Sonoma County Continuum of Care Committee Sonoma County Community Development Commission USA Properties Inc Vietnam Veterans of California Petaluma Chamber of Commerce Communitv Workshop The City held a community workshop on April 10, 2014 from 6:00 pm to 8:00 pm at the Lucchesi Community Center. Notices for the meetings were sent by email and standard mail and posted at City Hall. An article regarding the Housing Element workshop was printed in the Argus Courier on Thursday, April 10, 2014. City staff presented an overview of the Housing Element update and demographic and housing market data. During the presentation attendees were invited to make comments and ask questions. Following are comments received from the workshop: • The lack of apartments units is a barrier to finding housing. The vacancy factor in Petaluma is 1.9%. Hard for a single person with children to find housing. • Most seasonal workers are illegal and cannot find a place to live • Recruit and retain workforce by creating homeownership opportunities. • Policies are already in place. Need to work on implementation now that the economy is recovering. Online Survev An online survey was available to the public via the City's website for approximately 8 weeks from March 6, 2014 to May 5, 2014. The City advertised the availability of the survey by email, mail and announcing it at the community workshop. There were 13 survey responses. Eighty-five City of Petaluma Housing Element Im HOUSING- 11 percent (85%) of the respondents either lived in Petaluma or worked in Petaluma, 15% were developers, 15% were low income residents. When asked what the highest priority of housing need is in our community, 80% felt housing for the disabled and homeless was a high priority, with senior housing a close second with 70% of the respondents putting that as a high priority. First time homebuyers and large families were a medium priority. In response to any housing constraints in Petaluma, 64% felt that construction and land costs were a severe constraint on building housing and that the availability of public services and facilities is a moderate housing constraint. Most respondents felt that building new low income housing is a high priority and that residential rehabilitation for multi -family and single family homes is a high priority. According to the survey, 100% of the respondents use a personal vehicle to travel to work, but if they had a choice, they would prefer to live within walking distance to public transportation or a transit station and would use their cars less and use public transportation more. Additional comments: • Youth aging out of foster care is a high priority. • Management training and rent control. • Within the homeless population, the need for housing for single parents with children who are homeless should be a priority. • Making modifications to accommodate low income seniors and disabled homeowners allows that population to age in place. • Too many restrictions and paperwork and lack of flexibility are constraints. • The lack of a replacement funding is a key constraint to affordable housing property. • Permanent supportive housing programs for special needs population including youth aging out of foster care, homeless folks and others who can continue living at home with some assistance. • Increasing homeless programs and low income shelter with educated management would improve our City's ego and archaeological structure. • Permanent support housing for very low and extremely low income individuals. Affordable Housing Round Table The City held a round table discussion for our affordable housing family properties on July 10, 2013. The round table was attended by the resident managers for Round Walk Village, Old Elm Village, Corona Ranch, Washington Creek Apartments, Madrone Village, Park Lane Apartments, Downtown River Apartments and a representative from the Boys and Girls Club of Petaluma. The group felt that the existing housing barriers were the cost of building affordable housing and lack of funding sources. The consensus of the group is that there is not enough affordable housing as each of their properties have waiting lists that are over a year long. When asked if there were �:��j na t{.t^ l4kf}�2{{ i�'.:�z�i3t}'1f .�fi�ft� 1f� y;t, City of Petaluma Housing Element I HOUSING- 11 any barriers for low-income families to achieve success, the majority of the group felt education was important and the lack of jobs was a barrier for the families. Day care needs, finding services for tenants that are struggling to pay rent, and transportation were also brought up as barriers for families to achieve success. Public Hearines Public hearings are planned with the Planning Commission and City Council, offering opportunities for additional input prior to adoption of the Housing Element. 2. EVALUATION OF EXISTING ELEMENT (2009-2014) The City's initial Housing Element was adopted in 1985 and introduced the policies that have been the foundation of the City's affordable housing program. The consistent goal of Petaluma's decision makers has been to provide a balanced program of safe, sanitary and decent housing for the broad spectrum of our community's very -low, low and moderate -income residents — from those who are homeless to first-time homebuyers. The 2009-2014 Housing Element's philosophy, policies and programs, and the City Council's unwavering commitment to affordable housing have allowed the City of Petaluma to excel in its efforts to house low- and moderate -income persons, including addressing its Regional Housing Needs Allocation. The housing program is mission driven, flexible, and simple, allowing it to change with the changing needs of the community. The program addresses the wide array of housing needs, including homeless shelters, supportive and transitional housing, senior apartments, workforce rentals, special needs units, first time homeowner opportunities, and accompanying support services. 2.1 EFFECTIVENESS OF THE ELEMENT During the life of the 2009-2014 Housing Element, the following has been accomplished: • Construction of 238 rental apartments for low-income seniors and families: Casa Grande Senior Apartments, Vintage Chateau II, Logan Place and Kellgren Senior Apartments. • In-kind support of 100 shelter beds year round • In-kind support of 35 transitional housing beds City of Petaluma Housing Element JE HOUSING- 11 • Facilitation of refinances, sales and foreclosure services for households utilizing the City's existing homeownership program. • Regular property management monitoring of 13 apartments for very -low income persons with a mental disability , a condition of the project approvals • Rehabilitation of 240 homes of low-income seniors, families, and/or persons with a disability, completed by Rebuilding Together Petaluma. • Rehabilitation of 129 low income units at Round Walk Village completed by Burbank Housing. • Ongoing affordable housing for over 600 seniors • Ongoing affordable housing for 2,400 residents in family communities • Ongoing housing for 50 special needs residents • Annual rental assistance for 390 households • Fair housing counseling for over 2,500 residents. Table 1— Housing Units Built in Petaluma during 2008-2013 Regional Housing 522 352 370 701 1945 Need 2009-2014 _ Housing units built 136 53 2 ( 776 967 or approved Under/Over RHNA -386 -299 -368 75 I -978 % of RHNA Met I 26% 15% 1% Ill% 50% For a review of the actual results of the 2009-2014 Housing Element goals, objectives, policies, and programs, refer to Appendix B. 2.2 SIGNIFICANT NEW PROGRAMMATICCOMMITMENTS In addition to existing housing -related programs, housing legislation enacted during the 2009-2014 cycle required additional policies and programs to be addressed entering into the 2015-2023 Housing Element cycle: SB 2 and SB 812. no City of Petaluma Housing Element HOUSING- 11 SB 2 (2007), amends California Government code Sections 65582, 65583 and 65589.5: Requires local jurisdictions to strengthen provisions for addressing the housing needs of the homeless, including the identification of zones in which emergency shelters are permitted without conditional use permits. The law also states transitional and supportive housing shall be considered a residential use and only subject to those restrictions that apply to other residential uses of the same type in the same zone. • SB 812 (2010), amends California Government Code Section 65583: Requires local governments to include an analysis of the special housing needs of persons with developmental disabilities. • Adoption of a Density Bonus Ordinance The City is in the process of updating its zoning ordinance to address these requirements prior to adoption and certification of the Housing Element. City of Petaluma Housing C `.��*° HOUSING- 11 2.3 APPROPRIATENESS /OR PROGRAMS During the life of the 2009-2014 Housing Element, the "appropriateness" of the City's goals and programs was greatly impacted by the State -imposed loss of redevelopment: Much of the City's success to date in providing its fair share of affordable housing was due to a healthy source of revenue via the redevelopment 20% set-aside. Petaluma had the largest redevelopment area in Sonoma County and therefore substantial tax increment revenue. Consequently the 20% set-aside accounted for a steady and predictable $3,000,000 per year revenue stream for affordable housing development. Our inability to leverage those funds and meet our fair share obligation has greatly impacted our goals and policies. That being said, the City of Petaluma keeps up to date on the possibility of any new funding sources when they come available either through the State or Federal government. 12291M �10 The City of Petaluma's Housing Program is a mature one. The first low income senior project was built in 1980 and the City Council has since approved more than 1,417 units to serve the wide spectrum of need. See Appendix D which provides a complete listing and illustrates the City's production and programmatic achievements. e The housing program accomplishments of the City of Petaluma, which have addressed the identified needs of the entire spectrum of Petaluma's low- and moderate -income residents, are shown in Appendix D. !n 4l HOUSING- 11 3. PROJECTED HOUSING NEEDS The Housing Element must make "adequate provision for the existing and projected housing needs of all economic segments of the community." Communities are not obligated to actually produce housing to all in need, but to utilize the Housing Element as a planning document to plan for meeting its "fair share" of the regional housing needs. Every five years, coinciding with the five-year housing element cycle, the California Department of Housing and Community Development (HCD) is required to determine the projected regional housing need for every regional Council of Governments (COG). The COG covering the Bay Area is the Association of Bay Area Governments (ABAG). ABAG then allocates to each jurisdiction its "fair share" of the existing and projected new construction need for the next housing element period, taking into account: • Market demand for housing • Employment opportunities • Availability of suitable sites and public facilities • Commuting patterns • Type and tenure of housing need • Loss of assisted units The most recent HCD determination of housing needs covers an eight year period, from January 1, 2015 to January 31, 2023. The assigned need is broken down by income categories: very low, low, moderate and above moderate. It is this regional housing needs determination that communities must use when making adequate provision for their housing needs in their housing elements. Table 2 shows the ABAG Regional Housing Needs Allocation for new construction in Petaluma during the planning period. Table 2 - Regional Housing Need Allocation 7'{?SSSt51it}1St}1�Sttl�Stryl+it.�tiSt{{7t41t{�{t��{} 4t i l�� 31 iYh ���t �� iF1�(1�1�T���}�f ili f�li §;. jU t }1�i1i}1if Ft 4}i �1?}lial�StiY iP }S2�lrZ�M�„a`i8Z14„r`.�t}fil}{�} b� lfiF�t+t�}C �,,tj34i�� ((f> 7)l)j }i.` j�Z S} t}f } �S�5 }S�e( StitSSSS !{tS t i�ti �S{{tlF iS t�% 14�� EfJ'� tft t ET 7 f tt 4Ct 1� (0-50% 1 • lMI) • Low •' Moderate (81%-120% Above120% of AMI) 322 TOTAL UNITS 745 Association qf Bay Area Goi,ernments City of Petaluma Housing Element Im HOUSING- 11 In addition to addressing the new constriction needs as enumerated in the RHNA chart above, state statute requires that each jurisdiction quantify its housing objectives for new construction, rehabilitation, and conservation/preservation to address the needs of extremely low income, very low and low income households. Table 3 illustrates the City's projections to meet those needs. (See Appendix E) Policies and programs as well as available sites are in place to facilitate and encourage these activities. Table 3 — Quantified Objectives Extremely Low 250 Very Low 250 Low 232 Moderate Above Moderate TOTAL 273 1131 2136 *See Analysis of At -Risk projects in 4.0 200 W 1 223 90 373 0 0 0 463* The following provides additional objectives to meet those projections in the above table: • Help facilitate the development of extremely -low, very low-income, and low-income units to meet the ABAG Regional Housing Needs Allocation through Petaluma's housing policies. • Assist in the improvement and rehabilitation of 90 extremely -low income and 23 low- income units at two of our affordable housing properties. Preservation of Affordable Units At an estimate of $320,000 to construct new affordable units, it would cost $28.8 million to replace the 90 units at risk. Preserving the units would be considerably less expensive than building new ------------------------------------------------------------------------------------------------------------------------------------ City of Petaluma Housing Element HOUSING- 11 units. At an estimate cost of $86,000 per unit, it would cost $7.8 million to rehab and preserve the units. Mobile Home Rent Control The City implemented rent control for mobile homes spaces in 1994 in order to ensure affordability for homeowners, most of whom are on fixed incomes. At the same time, rent stabilization is intended to allow mobile home park owners to maintain a fair and reasonable return. Rent control applies to spaces that have a rental agreement term of 12 months or less. Annual rent increases are limited to the percentage change in the Consumer Price Index, but any increase is limited to a maximum of 6 percent. The City currently promotes the long-term affordability of non -restricted residential units through the following actions: As part of the 2025 General Plan, approved in 2008, the land use classification of the seven mobile home parks in Petaluma was changed to Mobile Homes. This classification protects the mobile home parks from possible future development by limiting the housing types to only mobile homes. Any proposed change would require a General Plan amendment. The Housing Fund budgets $15,000 annually to support the administration of the Mobile Home Rent Control Program that was implemented to provide rent stabilization for over 317 very low- and low-income mobile home park residents, most of whom are elderly. The Housing staff also meets with homeowners to discuss the benefits of rent control and to answer any questions that they have regarding the rent control ordinance. 4. ANALYSIS OFAT-RISK PROJECTS Petaluma's policy of requiring that affordable units developed with city assistance be restricted for 55 years for target households ensures that it is highly unlikely that they will be converted to market -rate units. The City of Petaluma monitors its affordable housing properties to ensure that there are no assisted affordable housing developments in Petaluma that are at risk of converting to market -rate rents during the next ten years due to termination of subsidy contract, mortgage pre- payment, or expiration of restrictions on use during the next ten years (beginning in 2014). This includes multi -family rental housing that receives governmental assistance under federal program, state and city multi -family revenue bond programs, city redevelopment programs, the CDBG program, and in -lieu fees, as well as inclusionary and density bonus units. City of Petaluma Housing Element Im HOUSING- 11 Park Lane Apartments is a HUD 221 property with 90 units of affordable housing. Its housing assistance payment subsidy contract will expire 12/31/2015. This contract has been renewed every five years by HUD and the City of Petaluma is engaged in ongoing communications with the property management of the property to make sure that the assistance continues. This property is not in jeopardy of converting to market rate. I= City of Petaluma Housing Element y11,� 4 HOUSING- 11 OPPORTUNITIES AND 5.1 RESOURCES T ccs i-IFi GOALS This section contains the good news and the bad news regarding opportunities and resources: FIRST, THE GOO® e • Petaluma is fortunate to have a City Council that supports affordable housing and community development activities to assist persons of low and moderate incomes. The City has exceeded its goal of ensuring that 10 to 15 percent of new units as of 1980, are affordable and has reached 18.3 percent. • There are many non -profits in Petaluma and Sonoma County that serve Petalumans with a wealth of energy and expertise. • Very few residents who present the view of "Not In My Backyard!" • A spirit of collaboration and cooperation among the City and nonprofit agencies. • A collaboration of the County's three entitlement jurisdictions and homeless service providers to address issues of homelessness. NOW, THE BAD NEWS. • The Petaluma Community Development Commission (Redevelopment Agency) that had actively worked to allocate 100 percent of its Low- and Moderate -Income Housing Fund to housing projects within our community was dissolved by the State of California. That action resulted in a loss of $3,000,000 annually to our housing fund. • HUD has hinted that "small" jurisdictions may lose their entitlement status and, as a result, have their federal grant modified. That would include Petaluma. With that exclusion, eligibility for other funding opportunities becomes problematic. 5.1 .1 Fiscal Resources and Leveraging itr To the extent feasible, the City's Housing Program will utilize the following sources of revenue to fund its projects and programs: • The In -Lieu Housing Fund is generated by payments from developers in -lieu of providing inclusionary affordable units. It is used to subsidize affordable housing through programs for low income people as well as land acquisition and assistance to City of Petaluma Housing Element ��:.; ? 4.1��4a.�t4£ HOUSING- 11 non-profit developers with pre -development costs and subsidies for on- and off-site improvements. The In -Lieu fund has decreased due to the economic condition and little development in the City over the past few years. However, with the increased residential development potential, this funding source will increase. • The Communitv Development Block Grant Provram (CDBG) is a "pass-through" program that allows local governments to use federal funds to alleviate poverty and blight. The U.S. Department of Housing and Urban Development makes allocations based on a formula that takes population, poverty, and housing distress into account. CDBG funds are used for a variety of housing efforts, including activities aimed at, housing acquisition and rehabilitation through short- and long-term loans, and fair housing activities. The City has used CDBG funds in the past for Housing Rehabilitation for the disabled, and housing rehabilitation for low income seniors and families. The City's CDBG allocation during the planning period is estimated to range between $250,000 and $300,000 per year. • The California HOME Investment Partnership Act is a formula -based block grant program similar to CDBG. HOME funds are intended to provide incentives for the acquisition, construction, and rehabilitation of affordable rental and ownership units. Petaluma received over $13,400,000 for seven affordable housing developments since 1995. • The Low Income Housing Tax Credit (LIHTC) Program is a large federal and state housing subsidy program that provides tax credits to the private sector for the construction or acquisition and rehabilitation of very affordable rental housing. To be eligible for a tax credit, 20 percent of the units in a housing development must rent to very low-income households earning less than 50 percent of area median income, or 40 percent of the units must rent to households with incomes of less than 60 percent. State law also requires that developments retain these levels of affordability for at least 55 years. To be successful, tax credit projects require an additional subsidy that can include no- or low-cost land, local government contributions, or density bonuses and other concessions. Petaluma was one of the first cities to take advantage of this program, beginning with the Madrone Village project in 1987. Since then, tax credits have been awarded to Round Walk Village, Old Elm Village, Vintage Chateau I and II, Vallejo Street Apartments I and II, Corona Ranch, Washington Creek Apartments, Caulfield Lane Apartments, Downtown River Apartments, Casa Grande Senior Apartments, Logan Place, and Kellgren Senior Apts. • The Commercial Linkage Fee: In 2004, Petaluma adopted an Ordinance (No. 2171 N.C.S.) implementing a commercial linkage fee for nonresidential development to mitigate the impacts on affordable housing linked to nonresidential development. Following a study completed by Economic and Planning systems, Inc., the City Council found that the construction or expansion of industrial, retail, or commercial development is a major factor in attracting new employees to the City and that a substantial number of those employees and their families seek residence in the city and place a greater strain on an already impacted housing stock. In June of 2011, the Ordinance was revised to limit the type of nonresidential development to new or expanded nonresidential gross square footage. The fee was implemented on January 1, 2005, and increased in cost per square foot each year until it reached its maximum amount of $2.08/sq/ft/ for commercial; $3.59/sq.ft. for retail, and i 2v trf�f' �ff�����t • • • rki f to = f HOUSING- 11 $2.15/sq.ft. for industrial construction or expansion. The fund has grown to approximately $1,250,000. Affordable and special needs projects and programs are almost always made feasible by utilizing funding in a combination of ways, as shown in Appendix C. Our past history has shown that we have been able to leverage our local dollars at a ratio of 10:1; however with the dissolution of redevelopment, that leveraging is no longer feasible. 5.1 .2 oliti l Will Petaluma decision -makers have steadfastly supported funding and approvals of housing developments and programs for those people in our community most in need. The emphasis has been on increasing the supply of new units, while maintaining strong programmatic support and property management. 5.1.3 Partnerships The City's housing accomplishments have been possible because of the Council's far-sighted decision to develop collaborative partnerships with professional, experienced, highly skilled non- profit housing developers and service providers. Partnerships with Burbank Housing Development Corporation, Eden Housing, Petaluma Ecumenical Properties; and USA Properties have produced more than 1,417 affordable and special needs housing units in Petaluma since 1980. 5.1 .4 r i l 4 Authority Article XXXIV of the California Constitution requires that when the City develops, constructs, or acquires a housing project targeted towards lower-income households, its qualified electors must approve the project by a majority. The City has secured Article 34 authority for elderly affordable housing (up to 5 percent of the total housing stock) and has been otherwise effective in providing affordable housing to lower-income households by partnering with non-profit developers. City of Petaluma Housing Element IM HOUSING- 11 5.2 RESIDENTIAL DEVELOPMENT OPPORTUNITIES XSAAYR:.e.M' '. dn,i .... ...............�f.......n........,........:.MYM. ...... i To address the housing supply/demand issue, California Government Code Section 65583 and 65583.2, require a parcel specific inventory of lands suitable for residential development to accommodate a range of housing opportunities for all income groups. For more detail, see "APPENDIX E - Residential Sites Inventory Analysis." This section summarizes: • Residential units that have been constructed since the beginning of the previous planning period July 1, 2014 or are under construction; • Approved residential development projects that could be constructed by the end of the new planning period (January 31, 2023); • Pending applications for residential development that have been submitted for review and approval by the City; • Projects that are in the planning stages; • Other sites, both vacant and underutilized, not included in the above categories that are available for residential development. The total amounts of units that have been constructed during the planning period and have been approved for construction by the City are also compared to the City's Regional Housing Needs Allocation. Please Note: The following tables contain site identification numbers which correlate to the map exhibit contained in Appendix E. HOUSING- 11 .2.1 Uni taut$ Under Construction and/or Approved Kellgren Senior Apartments, a 50 unit affordable housing property for seniors was completed in March 2014. There are currently approximately 172 units under construction that qualify for the 2015-2023 Housing Element period. Approximately 230 units have been approved and are likely to be constructed during the planning period. The developments are market -rate multi -family projects targeted to above -moderate income households. Table 4: Residential Units —Built, Under Construction and/or Approved 5 6 7 35 49 47 50 Birches Subdivision Kellgren Senior Apts. North McDowell Commons Quarry Heights Pinnacle Ridge Sunnyslope 11 Maria Dr. Apartments TOTAL Approved 21 0 1 0 1 0 Built Approved 50 49 0 1 0 35 0 1 0 1 0 35 Constr 172 0 0 0 172 Approved 11 0 0 0 11 Approved 21 0 0 0 21 Approved 144 0 0 0 144 455 49 0 1 405 5. 2.2 roj t Undergoing itReview There are several residential and mixed use projects that are under formal review with the City of Petaluma as of January 1, 2014. As of this date, most all of the units are targeted as market -rate units. Table 5 lists the developments that are in the process and should be complete during this Housing Element period. City of Petaluma Housing Element HOUSING- 11 Table 5 — Residential Projects Submitted to City 4S �P�.}i 3z i4ar tSj„r.J���>Jt {{t7£., til{tyzt�tk�t\te te�Pirtde �1�El �i,m ��l �i,m �2a,tai,4,.�{C,��h,,?Y,h,.f,.tuF>�,`1 ��l �iriii,, N� {c,+�^, i�£;i••z?, is i{ ::3{ti �n tzdrl 2.rF3�e�4u„tJl, o2z5„s 4r`Jac#i�U�S�``?Sr.rrj,e',va+,a t� z2r`ltf�t,a,tp3f•,,,'..a��o.'t:\..,4�So • et {m.Rt„S,", 3�kt„a}i,.2,.tRvli��.J. i�..,rr2\\.>ka �a,.S1113``?ca ��i Avila enY<,JrYI^J i,,.6,:wtY�B,a�aw, t},re2�otSall,?i,t,.r5}.esb.lis'§r tr3$S,l today tr. �n. 1: 30 Haystack Mixed use 120 NlFD 30 Haystack- BMR 31 SFD I Corona Road 32 . Development46 Davidon 48 Ferrin Subdivision 12 SFD 26 Riverfront, 26 Riverfront, Sid Commons 312 MFD Totals15 5.2.3 Trans it -Oriented Dev I n The Central Petaluma Specific Plan (adopted June 2003) encompasses nearly 400 acres in the central portion of the city adjacent to downtown and extending along the river. The area includes an active rail corridor with future rail transit planned and an extensive resource of vacant and underutilized land. A range of commercial and industrial uses is currently found in the area. The specific plan supports the City's goal of city -centered growth. A key land use objective of the specific plan is to establish a significant component of new housing near the downtown and a proposed transit center. It is anticipated that most of the residential development will occur in a mixed-use configuration with retail and/or office uses and can include live/work housing. The plan allows for more intense development than found elsewhere in the city. The Specific Plan utilizes a form -based code which emphasizes the physical relationships between, buildings, public spaces, and people with less emphasis on use. To date, the CPSP has resulted in several mixed use projects and proposals. However, with an emphasis on form over use, there is a risk that projects may not meet the overall vision of the plan as shifts in the market result in different types of projects/proposals. The Specific Plan was adopted in June 2003. Since its adoption several significant projects have been built, are under construction, or proposed which carry out the goal of city -centered growth. The Central Petaluma Specific Plan has and continues to be a catalyst for mixed use projects within the central portion of the City and in close proximity to services and transit. In June 2013, the City adopted the Petaluma SMART Rail Station Areas: TOD Master Plan. The Master Plan, which includes the Amended SmartCode in Appendix A, was funded through a grant received by the City of Petaluma from the Metropolitan Transportation Commission (MTC) and the Association of Bay Area Government's (ABAG) Station Area Planning Program with matching funds provided by SMART and the City of Petaluma. The funding program seeks to maximize the potential for transit -oriented development (TOD) and drove the project to be a HOUSING- 11 holistic, multidisciplinary planning effort ensuring that the Master Plan reflects "best practices" in planning transit -oriented development. The Master Plan evaluates the potential for transit -oriented development within the two planned Petaluma SMART Rail Station Areas. The Downtown Petaluma Station Area includes the historic rail depot adjacent to Lakeville Street and bounded by East Washington Street and East D Street; the Corona Road Station Area is proposed in the vicinity of the intersection of Corona Road and North McDowell Boulevard. Each Station Area is comprised of the area within a '/2 -mile radius of the respective planned SMART Rail Station. The Master Plan incorporates an analysis of. market demand, housing, access, connectivity, parking, infrastructure, and historic preservation. The Master Plan also includes a framework for public spaces, frontage types, building types, and phasing. Amendments to the text and figures for the SmartCode are included as part of the project to facilitate plan implementation and correct several outdated sections of the SmartCode. The Master Plan has six primary objectives as follows: • Provide a framework that will guide future development and redevelopment within the Station Areas toward uses that will support transit ridership. • Improve motorized, non -motorized, and transit connectivity between the station sites and existing adjacent commercial, employment, and residential areas. • Develop and implement urban design standards that promote walkable and livable environments within the Station Area. Identify infrastructure needs and a financing plan with an emphasis on funding opportunities to incentivize future development/redevelopment. Inform the public and stakeholders about the Master Plan process, transit -oriented design concepts, and future opportunities within the two Station Areas. Create an integrated development plan that capitalizes on the Sonoma -Marin Area Rail Transit (SMART) system. The planned Downtown Petaluma Station will be located at the renovated historic rail depot adjacent to Lakeville Street and bounded by East Washington Street and East D Street. The Downtown Petaluma Station will provide easy access to the Downtown, the Turning Basin area and the Copeland Street Transit Mall. Reflective of the greater amount of opportunity sites for transit -oriented development, the Downtown Petaluma Station area received the greater amount of focus in this planning effort. The Corona Road Station will be located in northwestern Petaluma in the vicinity of the intersection of Corona Road and North McDowell Boulevard. This site will likely include a significant park-and-ride component while also benefiting from improved access to employment, housing, health services such as the Petaluma Health Center, and student services like Santa Rosa Junior College. The Corona Road Station will be built as part of the second phase of SMART. The deferral of the Corona Road Station and the lack of transit -oriented development opportunity sites led to a greater focus on how to provide better connectivity of existing uses to the planned Corona Road Station. City of Petaluma Housing Element IN HOUSING- 11 The Master Plan is organized as follows: Chapter 1: Introduction — Chapter 1 provides an overview of the report, a summary of the project objectives, the regional context, the location of the two planning areas, previous planning efforts, community participation process and guiding principles. Chapter 2: Vision — Chapter 2 documents the vision for the Station Areas created through the community participation process. It includes a summary of land use, opportunity sites, a preferred plan and alternate frameworks studied, key design elements used to promote walkability and livability, a phasing strategy and program for the Station Areas. Chapter 3: Market Demand Chapter 3 provides an overview of the market and economic characteristics that will have an effect on the ability of the City of Petaluma to plan successful transit -oriented development at the Downtown and Corona Road sites. It discusses regional and local trends and projections in demographics, income, employment and retail sales and spending. Chapter 4: Housing — Chapter 4 addresses housing within the Station Areas. It includes background information regarding station area housing goals, a brief summary of housing needs in Petaluma, findings regarding housing development potential within the station areas, recommendations to encourage and facilitate residential development, an analysis of residential development potential, and potential sources to finance and provide affordable and workforce residential development. Chapter 5: Access, Connectivity, and Parking — Chapter 5 addresses pedestrian, transit, auto and bicycle access to the Station Areas and addresses innovative parking management policies and strategies. Chapter 6: Infrastructure --- Chapter 6 identifies the key infrastructure needs and financing strategies to accommodate the future development anticipated in this plan. Chapter 7: Historic Preservation — Chapter 7 addresses historic preservation within the Master Plan area. It includes a brief background on the City's development patterns and historic and cultural resources, recommendations for additional historic preservation efforts, and potential funding sources to implement recommendations. Chapter 8: Implementation — Chapter 8 provides implementation measures for the Station Area Master Plan. It includes recommended updates for the Implementing Zoning Ordinance, Central Petaluma Specific Plan's SmartCode; development incentives, and an Implementation and Phasing Plan. Appendix A: SmartCode Amendments — Appendix A presents an amended SmartCode for the Central Petaluma Specific Plan Area. The SmartCode serves as the zoning ordinance for properties located within the CPSP area. �kfrn ,�� tea= • 7,2�tf.�,s�t HOUSING- 11 Amended SmartCode Through the adoption of the Central Petaluma Specific Plan (CPSP) in 2003, the City of Petaluma became the first City to adopt the SmartCode as a mandatory overlay. The SmartCode is a unified land development ordinance template for planning and urban design. It provides detailed regulations for development and new land uses within the specific plan area, and describes how these regulations will be used as part of the City's development review process. It is the zoning ordinance for properties located within the CPSP area. Adopted 10 years ago, the original SmartCode was essentially in its `beta' version. Since then, the SmartCode template has been continually updated and refined with input from practitioners from numerous disciplines. As of 2012, the SmartCode was on version 9.2. The amendments to the SmartCode are intended to ensure that the development within the Downtown Station area is consistent with the community's vision and the Master Plan document. These amendments included: • Refinements to address procedural issues in the existing document raised by staff, developers, and community members. • Refinements to development standards that have been found to be impediments to development. • Expanded regulations to provide more certainty for the community and clarity for developers on the type and form of new development. • Refinements consistent with the updating of the SmartCode template from the version that was adopted to the current version (v.9.2). The SmartCode updates, coupled with an improving economy, are attracting renewed development interest within the Central Petaluma Specific Plan Area. Of particular note is a current proposal for a mixed use project adjacent to the existing transit mall which includes dedication of a portion of the site for an affordable housing project. .2.4 Other Development Opportunities Vacant and Underutilized Sites: Sites classified as High Density Residential or Mixed Use and that are vacant or largely vacant represent the greatest potential for development of affordable housing to very low- and low-income households. The High Density and Mixed Use classifications allow densities of up to 30 du/acre and 60 du/acre respectively. Per Section 65583.2(c)(3)(B) of the Government Code, the City's land use and zoning are consistent with the standard of 20 du/acre for suburban jurisdictions and thus these sites are considered appropriate for accommodating affordable housing. These sites are included in Table 6 below. City of Petaluma Housing Element HOUSING- 11 Table 6: Vacant and Underutilized Sites 2 3 4 12 13 24 25 19 29 31 32 36 37 38 39 41 Drew Property 1 Drew Property 2 Baywood Equities Baywood L.L.0 Trautwein Property Old Silk Mill De Carb Property Golden Eagle SMART Property Lind et al. Properties South Petaluma Part. Wind River Part. Royal Petroleum State of California Husary Property Underutilized Underutilized Vacant Vacant Vacant Underutilized Underutilized Underutilized Vacant Vacant i Vacant Underutilized Underutilized Underutilized Underutilized 105 75 100 250 10 30 50 250 170 75 45 40 35 30 35 1,600 Note: This table contains key sites to accommodate low- and moderate- income housing. See the Sites Inventory Analysis in Appendix E for a more comprehensive list of vacant and underutilized lands suitable for residential development. 5.2.7 Progress Made Towards ulfillin Regional Housing A comparison of the City's regional housing need for the planning period 2015-2023 to the residential units constructed, not built, and/or approved since 1/1/2014 shows that progress has been made in the above moderate housing category. The remaining need for very low-income, low- income, and moderate -income units will be partially met by potential projects but it will be very difficult without local funds and a large need will remain. While there is adequate, appropriately zoned land available to meet Petaluma's fair share of the Regional Housing Needs Allocation, there is a challenging fiscal reality involved in meeting the City's R14NA assignment on both the revenue and expenditure side of the ledger. According to a conservative affordable housing assumption, the HOUSING- 11 2014 estimated cost per unit of building affordable units is $300,000-350,000/unit. The following table shows the cost to accommodate Petaluma's "fair share," using an average cost of $325,000/unit: Very Low Low Moderate Above Moderate Total $65 Million $33 Million $39 Million N/A* $137 Million *The City does not allocate funds for above moderate priced housing. Looking at the revenue side of the ledger, even in the unlikely scenario that the City continues our current ability to leverage outside dollars to local dollars at a rate of 10:1 as we have done in the past, the City would need $13.7 Million (10% of $137 Mill) of local housing dollars between 2014 and 2023. Housing revenues (from all funds, including housing in -lieu fees, federal grants, and linkage fees) are estimated to be $6 million, showing an obvious gap of $7.7 Million. And this assumes that ALL housing funds would be allocated to new development, allowing no rehabilitation; no rent subsidies; no programs for seniors, youth, special needs populations, etc. In summary, meeting the regional allocated needs for low/mod housing, given the associated costs and State of California action to dissolve redevelopment agencies, and federal and state actions to cut back affordable housing programs, is highly unlikely. Table 7 Remaining Regional Housing Need from 1/1/2014 Units Constructed Since 2014 49 0 1 0 50 Units Under Construction 0 0 0 179 179 Subtotal 49 0 1 179 229 Reg. Housing Need Allocation 199 103 121 322 745 Remaining Need Subtotal 150 103 120 143 516 Approved Units 0 0 0 405 405 Remaining Housing Need 150 103 120 -262 111 Site Inventory Capacity 500 232 273 1131 2136 City of Petaluma Housing Element IN HOUSING- 11 .3 INFRASTRUCTURE AND ENVIRONMENTAL CONSTRAINTS 5.3,1E City Water and Wastewater: Water and wastewater in Petaluma have become inextricably linked (See Chapter 8: Water Resources Element of the General Plan 2025). The City of Petaluma's primary source of water is Russian River water purchased from the Sonoma County Water Agency (SCWA). Regulatory and environmental issues have delayed the SCWA's expansion of its water transmission system, limiting the amount of water the SCWA can provide. The City completed an analysis of water supply and demands based on build out of the General Plan 2025 and compared them to the available SCWA supply. The analysis showed that projected demands exceed the amount of water the SCWA can provide based on current agreements. In response, the City completed the Water Supply and Demand Analysis Report (June 2006) establishing a long-term plan that increases the use of recycled water to offset potable water use, greatly expands water conservation programs, and includes a moderate use of groundwater to meet increasing potable water demands through 2025. The City completed its construction of the Ellis Creek Water Recycling Facility (WRF) which replaced the City's aging wastewater treatment plant on Hopper Street. All of Petaluma's wastewater will be conveyed the WRF. The facility was designed to handle anticipated wastewater demands through the build out of the General Plan 2025 and beyond. The WRF is capable of providing up to 5.4 million gallons per day (mgd) of tertiary recycled water that is reused for a variety of applications such as pasture, edible crops, vineyards, golf courses, playing fields, parks and at the WRF itself. If needed, the system can be expanded to process as much as 6.7 mgd of recycled water. Recent increased demands from food and beverage processing, not fully anticipated in the design, require the City to implement modifications to the WRF, which are in preliminary design with construction expected through the next several years. The distribution of water and collection of wastewater throughout the system is generally adequate but there are certain lines that require reinforcement and/or replacement. The City's Public Works and Utilities Department maintains an active program of infrastructure maintenance and capital improvement projects for the entire distribution and collection system. The SCWA system is currently limited in terms of total system capabilities as well as the hydraulic capacity of the aqueduct that directly supplies Petaluma. Current aqueduct capacity is not sufficient to meet current peak summer time demands. The SCWA is implementing improvements in water supply and transmission to increase the capacity of the system. The City has made it a priority to work with the SCWA on the South Transmission System Project which will address capacity issues through a parallel aqueduct. ��`5�`��`�7� .. °771Stf77��� '1� HOUSING- 11 5.3.2 Transportation Infrastructure The General Plan 2025's Mobility Element (Chapter 5) identifies long-range transportation infrastructure needs for moving people and goods in and around Petaluma. Several major infrastructure projects related to cross-town connectivity and improved access to the U.S. Highway 101corridor are identified to meet increased demand due to new development. Additional mobility priorities include an improved transit system that is convenient and provides more frequent, regular service along major City corridors while coordinating the local transit system schedule and service with regional transit, local paratransit services, and school schedules. In November 2008 Sonoma and Marin County voters approved a sales tax increase to fund the development and implementation of passenger rail service on the Northwestern Pacific Railroad corridor called SMART (Sonoma Marin Area Rail Transportation) with an estimated time of completion of 2016. The City of Petaluma has two proposed stations and through the Central Petaluma Specific Plan and the General Plan 2025 has designated the parcels surrounding those sites with land uses appropriate to support transit -oriented development. In addition to vehicular and transit improvements, the Mobility Element calls for the creation of a pedestrian environment that is safe, attractive, encourages walking and is accessible to all; as well as the implementation of a bicycle network fee of gaps that permits easy bicycle travel to all schools and major City destinations. 5.3.3 Opportunities for Energy Conservation & Green House Gas Emissions Reduction Housing has a large role to play in energy conservation and the reduction of green house gas emissions in terms of both its location and its construction methods. Petaluma is committed to lessening the impact of greenhouse gas emissions by reducing emissions and conserving resources through the implementation of the goals, policies and programs outlined in the General Plan 2025. Throughout this General Plan are far-reaching goals and policies in such key areas as land use, conservation, systems efficiency, safety and mobility which in addition to housing, serve the dual purpose of implementing the City's long range goals while requiring that growth occurs in ways that reduce the City's contribution of green house gas emissions. In particular see Section 2.3 — Green Building in the Land Use, Built Environment and Green Building element, section 4.5 — Green House Gas Emissions in the natural Environment element and Chapter 5 — Mobility. The transportation sector is the largest contributor to green house gas emissions. By focusing on infill development, transit -oriented development, and mixed-use development, the location of housing can have a significant effect on reducing vehicle miles travelled and the associated emissions. City of Petaluma Housing Element IN HOUSING- 11 The City has implemented the provisions of Title 24 of the State Building Code that require new residential buildings to meet a comprehensive set of standards for energy conservation. Builders of these units may achieve compliance either by calculating energy performance in a prescribed manner or by selecting from alternative component packages that prescribe a fixed method of compliance. All proposed residential units are checked by the Building Department to ensure that their design and construction complies with Title 24 energy standards. Additions and alterations must also meet these standards if they increase the heated or cooled floor space of a building. Opportunities for improving energy conservation in the design of residential development include ensuring the consistency of tentative tract maps with Section 66473.1 of the Subdivision Map Act, which requires the designs of subdivisions to provide for future passive or natural heating or cooling opportunities, and requires the planting of trees along streets and in multi -family parking lots to reduce heat. The City adopted the 2013 California Green Building Standards Code (part 12 of title 24) at a modified Tier One level. The energy component of the code was adopted at the mandatory level, all other sections including but not limited to water conservation, recycling, recycled content, los VOC content, and Environmental Quality were adopted at the Tier One level. In addition, Petaluma is working with the County of Sonoma on implementation of AB 811, allowing property owners to finance programs for energy -efficiency projects and efficiency improvements such as insulation, dual -pane windows, solar panels, and efficient heating and air equipment systems through secured assessments on their property tax bills. im - ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- City of Petaluma Housing Element HOUSING- 11 6. CONSTRAINTS TO MEETING HOUSING NEEDS A number of factors may constrain the development of housing, particularly housing affordable to lower-income households. These factors can generally be divided into "governmental constraints," or those that are controlled by federal, state, or local governments; and "nongovernmental constraints," factors that are not generally created or cannot be affected by government controls. An analysis of these factors can help in the development of programs that lessen their effect on the supply and cost of housing. Governmental regulations and exactions are designed to achieve desirable land use patterns, coordinate development with infrastructure expansion, finance capital improvements, equitably distribute the cost of public services, maintain the ambiance of existing neighborhoods, improve the urban environment, and preserve open space and unique ecosystems. However, they should be evaluated to determine whether they are excessive and represent an unnecessary constraint on the availability or affordability of housing being built, or contribute to the loss of existing affordable housing. 6.1 .1 n r l Plan Policies In addition to the Housing Element, two of the General Plan's other elements directly affect the location, type, and timing of housing that may be developed: the Land Use, Growth Management, and the Built Environment Element (Chapter 1), and the Community Design, Character, and Green Building Element (Chapter 2). The Land Use, Growth Management, and the Built Environment Element established eight residential land use classifications, with the density ranges shown in Table 8. High-density residential uses are also allowed under the Mixed Use designation. City of Petaluma Housing Element im HOUSING- 11 Table 8 - Residential Land Use Designations Rural Residential Single-family dwellings 0.1-0.6 Very Low Density Single-family dwellings 0.6-2.5 Residential Low Density Residential Single-family dwellings 2.6-8.0 Diverse Low Density Single-family dwellings, Residential duplexes, multi -family 6.1-12.0 dwellings Medium Density Single-family dwellings, 8.1-18.0 Residential duplexes, multi -family dwellings High Density Residential Multi -family dwellings 18.1-30.0 Mobile Homes Mobile Homes 8.0-18.0 Mixed -Use Multi -family dwellings and up to 30.0 non-residential uses such as retail and office Minimum densities are included in the residential classifications in order to maximize residential development on a limited supply of land, and achieve a balance and variety of housing types. The City of Petaluma is considered a suburban jurisdiction. Government Code Section 65583.2(c)(3)(B) states that sites allowing at least 20 units per acre are deemed appropriate to accommodate housing for lower income households. In Petaluma, sites classified as High Density Residential or Mixed Use meet this definition and represent the greatest potential for development of affordable housing to very low- and low-income households. In May 2008, the City adopted the Petaluma General Plan 2025. The General Plan 2025 included a comprehensive, parcel specific review of land use and infrastructure capacity and serves as the foundation for this Housing Element update. In addition, the City adopted the Central Petaluma Specific Plan (CPSP) in June 2003. The new General Plan 2025 coupled with the CPSP increases the city's inventory of residential land through a combination of reclassified lands, particularly Mixed Use, and increased densities — ensuring an adequate supply of residential land to achieve long-term housing goals. In 2013, the City adopted the Petaluma SMART Rail Station Areas: TOD Master Plan in an effort to increase growth within a one-half mile radius of the planned stations. For more information on this plan, see Section 5.2.5 — Transit -Oriented Development. 011'"{}'''St�bt HOUSING- 11 Community ire, Character, arra Green Building Element The Community Design, Character, and Green Building Element of the General Plan is intended to strengthen Petaluma's unique identity, preserve and strengthen the quality of life in Petaluma, and preserve and enhance views of dominant features. The element divides the community into fourteen planning subareas providing more detailed policies specific to those subareas. The final section of the element relates to green building. 6.1.2 Zoning Ordinance Provi ion In conjunction with the adoption of the General Plan 2025, the City adopted an Implementing Zoning Ordinance designed to carry out the policies of the Petaluma General Plan by classifying and regulating the uses of land and structures within the City, consistent with the new General Plan. Providing consistency between land use and zoning facilitates residential development by eliminating the need for costly and time consuming General Plan amendments and/or rezoning. Since adoption of the new General Plan, a comprehensive revision of the zoning regulations, subdivision standards and guidelines, landscaping standards, public improvement standards, etc. is being incorporated into a single, comprehensive set of new development regulations for Petaluma termed the Development Code. The Central Petaluma Specific Plan (CPSP) is incorporated by reference into the recently adopted General Plan 2025. Lands within the CPSP area are regulated through the SmartCodeO rather than the Implementing Zoning Ordinance. The SmartCodeO is a form -based zoning code with an emphasis on the physical relationship between people, buildings, and public spaces. The CPSP covers approximately 380 acres of mostly underutilized land immediately east of and adjacent to the City's historic downtown core. The intent of the plan is to redirect development from the fringes of the City to the central core; accommodate greater diversity and intensity of development and activities; and give the area identity and interest. To that end, the plan calls for mixed use development with residential densities up to 60 units per acre; building heights up to 6 stories; limited and flexible parking requirements; and opportunities for multi -modal transportation options; including a station site on the SMART rail corridor and the City's bus transit mall. As noted earlier through the Petaluma SMART Rail Station Areas: TOD Master Plan, the City adopted an updated SmartCode. Through the adoption of the Central Petaluma Specific Plan (CPSP) in 2003, the City of Petaluma became the first City to adopt the SmartCode as a mandatory overlay. The SmartCode is a unified land development ordinance template for planning and urban design. It provides detailed regulations for development and new land uses within the specific plan area, and describes how these regulations will be used as part of the City's development review process. It is the zoning ordinance for properties located within the CPSP area. City of Petaluma Housing Element Z?'gs1' f HOUSING- 11 Adopted 10 years ago, the original SmartCode was essentially in its `beta' version. Since then, the SmartCode template has been continually updated and refined with input from practitioners from numerous disciplines. As of 2012, the SmartCode was on version 9.2. The latest amendments to the SmartCode are intended to ensure that the development within the Downtown Station area is consistent with the community's vision and the Master Plan document. These amendments included: • Refinements to address procedural issues in the existing document raised by staff, developers, and community members. • Refinements to development standards that have been found to be impediments to development. • Expanded regulations to provide more certainty for the community and clarity for developers on the type and form of new development. • Refinements consistent with the updating of the SmartCode template from the version that was adopted to the current version (v.9.2). Residential Zoning Districts The City's Implementing Zoning Ordinance specifies the zoning districts in which residential development may occur and under what circumstances. RR (Ramal Residential) zone. The RR zone is applied to areas of single dwelling development with a minimum lot size of 2 acres. This zone would be applied primarily to areas at the western perimeter of the City along the Urban Growth Boundary that are developed with single dwellings at densities ranging from 0.1 to 0.6 units per acre. This zone is intended to maintain a rural character and provide a transition to unincorporated rural and agricultural lands. The RR zone is consistent with and implements the Rural Residential land use classification of the General Plan. RI (Residential 1) zone. The R1 zone is applied to areas of single dwelling development, primarily the western hillsides, with densities ranging from 0.6 to 2.5 units per acre, and larger lots required for sloped sites. The R1 zone is consistent with and implements the Very Low Density Residential land use classification of the General Plan. R2 (Residential 2) zone. The R2 zone is applied to areas previously developed and intended for detached single dwellings on individual lots, at densities ranging from 2.6 to 8.0 units per acre. The R2 zone is consistent with and implements the Low Density Residential land use classification of the General Plan. R3 (Residential 3) zone. The R3 zone is applied to the older neighborhoods surrounding the downtown that are characterized by a variety of housing types and densities in a walkable context. Im- City of Petaluma Housing Element HOUSING- 11 Densities range from 6.1 to 12.0 units per acre. The R3 zone is consistent with and implements the Diverse Low Density Residential land use classification of the General Plan. R4 (Residential 4) zone. The R4 zone is applied to areas intended for a variety of housing types ranging from single dwellings to multi -unit structures. Densities range from 8.1 to 18.0 units per acre. The R4 zone is consistent with and implements the Medium Density Residential land use classifications of the General Plan. R5 (Residential 5) zone. The R5 zone is applied to areas intended for the most urban housing types at densities ranging from 18.1 to 30.0 units per acre, but where existing lower density housing is considered conforming. The R5 zone is consistent with and implements the High Density Residential land use classification of the General Plan. MH (Mobile Home) zone. The MH zone is applied to existing mobile home parks throughout the City. The MH zone is consistent with the Mobile Home land use classification of the General Plan. MUTA, MU1B, MUIC (Mixed Use 1) :one. The MU1 zone is applied to areas intended for pedestrian -oriented, mixed-use development with ground -floor retail or office uses adjacent to the Downtown Core, and in other areas of the city where existing auto -oriented commercial areas are intended for improvement into pedestrian -oriented mixed use development. The MU1 zone is consistent with and implements the Mixed Use land use classification of the General Plan, which establishes a maximum floor area ratio of 2.5 for both residential and non-residential uses within the classification, and a maximum density of 30 units per acre for residential. Note: • Mixed Use IA zone. This zone is applied to parcels located along the East Washington Street, Petaluma Boulevard North and Lakeville Street corridors. The parcels in these zones vary in size and are typically located adjacent to residential zones. • Mixed Use 1B zone. This zone is applied to larger parcels located primarily along major arterial roadways. The larger parcel size should allow for a mix of uses on the site. • Mixed Use 1 C zone. This zone is applied to smaller parcels located in West Petaluma. Most of these parcels are located in residential areas and the intensity of the uses permitted in this zone is limited. MU2 (Mixed Use 2) zone. The MU2 zone is applied to the Petaluma Downtown and adjacent areas that are intended to evolve into the same physical form and character of development as that in the historic downtown area. The MU2 zone is consistent with and implements the Mixed Use land use classification of the General Plan, which establishes a maximum floor area ratio of 2.5 for both residential and non-residential uses within the classification, and a maximum density of 30 units per acre for residential. City of Petaluma Housing Element HOUSING- 11 T4 (General Urban); T5 (Urban Center); T6 (Urban Core) Mixed Use Zones. These zones apply to lands within the CPSP and are subject to the development standards as defined in the SmartCode© allowing for a mixture of uses and no stated maximum for residential density. Table 9 — Residential Zones -Implementing Zoning Ordinance P Permitted Use P(16) Permitted Use MUP Minor Use Permit CUP Conditional Use Permit Required Conditional Use Permit Required - S Permit Requirement in Specific Use Regulations Land Use Type' Allowed Buildii.g Functions and Permit A Accessory Use T4 T5 T6 T6-0 D4 - Use Not Allowed P CUP' MUP P Multi -family housing P' P' - Permit Required by Zone - Residential in mixed use P Land Use Type P P MU 1 MU 1 MU 1 AG RR RI R2 R3 R4 R5 A B C MU2 Dwelling, Accessory A,S A,S A,S A,S A,S A,S - - - P - Dwelling, Group - S(5) S(5) S(5) S(5) - - type definitions. Dwelling, Multiple - - - - P P P CUP - P - Dwelling, Single Household P P P P P P P - - P - Residential Care, 6 or fewer - P P P P P P P(6) P(6) - P(10) Residential Care, 7 or more - - y - - I - - - P(10) P(10) P P(10) Work/Live - - - - - - - P(6) P(6) P P(6) Residential in mixed use building P(10) P(14) P(10) P(10) Notes: (5) Site Plan and Architectural Review Required & Compliance with Section 7.040 Required (6) Permitted use on an upper floor or behind ground floor street fronting use; use in other locations allowed subject to a CUP (10) Allowed only on floors above the ground floor (14) Permitted only on APN 137-061-019 & APN 048-080-036 (Corona Rd. at North McDowell Blvd.) (16) See section 21.030 (Residential Uses Abutting Non -Residential Uses) Table 10 - Residential Zones (Smart Code) P Permitted Use MUP Minor Use Permit CUP Conditional Use Permit Required - Prohibited Land Use Type' Allowed Buildii.g Functions and Permit Requirements T4 T5 T6 T6-0 D4 Live/work unit P P CUP' MUP P Multi -family housing P' P' - - - Residential in mixed use P P P P P building Single-family dwelling P' P' - - - Work/live unit MUP MUP CUP MUP P Notes: 1 See Section 9 (Glossary) for use type definitions. On a frontage whre shopfronts are required, use is allowed only on upper floor(s) behind an allowed ground floor use per the permit requirement indicated. I= - - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- City of Petaluma Housing Element HOUSING- 11 Residential Development Standards Table 11 — Development Standards RR 25 150 40 20 40 2 acres 2 acres 3 NA R1 25 100 30 15 30 20,000 20,000 3 NA R2 25 50 20 5 20 6,000 6,000 3 NA R3 25 40 15 3 15 4,000 4,000 3 600 R4 35 35 10 0 10 3,500 NA 1.5 300/unit R5 45 NA 0 0 0 1,500 NA 1.5 400/unit MU1 30 NA 0 0 0 NA NA 1.5 30/unit MU2 45 NA 0 0 0 2,000 NA 1.5 30/unit T4 3 NA 0 5 20 4,000 NA 1 NA stories avg. T5 4 NA 0 0 5 none NA 1 NA stories T6 6 NA 0 0 0 none NA 1 NA stories *Standards reflect typical lots, additional standards apply to corner lots or other less common situations. City of Petaluma Housing Element IM HOUSING- 11 The Implementing Zoning Ordinance and SmartCode"' prescribe minimum standards for residential lot sizes, yards, and open space per unit, and maximum lot coverage (Table 10). The Table also illustrates housing types permitted by zoning districts. These standards are typical of many California suburban communities and contribute to the protection of the public health, safety, and welfare; and the maintenance of the city's quality of life. Combined with the General Plan 2025 land use classifications, minimum density requirements, and adequately zoned residential sites to meet RHNA; Petaluma's development standards do not represent a constraint or barrier to developing affordable housing. Parking Standards Minimum residential parking standards in the Implementing Zoning Ordinance are as follows: • Single-family dwellings (including condominiums and townhouses): I covered space plus two spaces which may be uncovered and located in the driveway. • Duplexes: 1 covered space plus one space which may be uncovered and located in the driveway. • Multi -family units: 1 space per bedroom, studio, or efficiency unit. In no case shall a project provide an overall parking ratio of less than 1.5 spaces per unit. • Mobilehome parks and trailer parks: 2 spaces per unit. • Elderly housing and retirement homes: Parking requirements may be modified by the Zoning Administrator (Director) where it can be demonstrated that automobile use or ownership is significantly lower than for other dwellings or lodging houses. The Ordinance also allows existing covered parking facilities to be converted into living quarters if the covered parking space is replaced with a paved space (that may be uncovered). A few of these conversions are approved each year. These parking standards are much lower than similar suburban communities and are not considered a constraint to housing development. The multi -family parking requirement correlates with the size of the units rather than applying a uniform standard for all units regardless of the number of bedrooms, as is done in some communities. This requirement has been reduced for affordable rental projects in the past where it can be demonstrated that automobile use or ownership for a project will be significantly lower. Projects within the Central Petaluma Specific Plan area, recognizing the opportunity for transit - oriented development and walkability, have a considerably lower parking requirement of one space per residential unit and one space per 300 square feet of non-residential uses. In addition to the lower standard the CPSP SmartCode"' provides flexibility in reducing parking requirements through alternative parking arrangements, shared on-site parking, parking waivers under certain circumstances, and off-site parking. {til` r4$��fr` tits` 1 j{S'Sji HOUSING- 11 Residential Development in Other Districts Residential development is also allowed in three other zoning districts, all of which could accommodate the development of lower-income units. • P. U.D. Planned Unit District allows any and all compatible uses, although a property's General Plan land use designation would determine its ultimate use and residential density. Most recent residential development in the city has taken place in the PUD District in order to vary from the minimum site and yard standards outlined in the previous zoning ordinance (although the district's provisions do not specifically allow for such variations). For example, a single-family project used the PUD process to create 3,600 -square foot "Z" lots with reduced side and rear yard setbacks. However, all projects seeking variations from development standards must be rezoned to the PUD District, an expensive and lengthy process that requires project review by both the Planning Commission and City Council. Amending the PUD regulations to clarify what variations may be approved and under what circumstances would facilitate the review and approval process for both applicants and the City. The Implementing Zoning Ordinance and the proposed new Development Code address many of the site standards that had led to the need for PUDs and the City hopes to rely upon this district less in the future. • Commercial I (CI) and Connnercial 2 (C2) allow residential uses above the ground floor as permitted uses. The process for approving residential uses in the C1 and C2 districts however is not straightforward because their corresponding General Plan land use designations (i.e., Neighborhood Commercial and Community Commercial) do not specifically allow dwelling units, and development standards, such as maximum densities, are not specified. However, the majority of sites appropriate to mixed use have been designated as such in the General Plan 2025 and CPSP. Creation of the new Development Code may consider whether or not this provision is necessary in the future given the prominence of Mixed Use parcels. A second unit is an additional residential unit on the same lot as a primary single-family dwelling that provides complete, independent living facilities for one or more persons. Second units are usually considered to be affordable housing because there are no land costs associated with their development and they frequently rent for less than comparably -sized apartments. They may also occupy unused space in large homes, and by supplementing the income of the homeowner, allow the elderly to remain in their homes or make it possible for lower-income families to afford homes. City of Petaluma Housing Element Im HOUSING- 11 The current Implementing Zoning Ordinance allows such units subject to development standards that are common in suburban communities and are not overly restrictive (e.g., allows maximum size of 640 square feet, requires one additional parking space, allows use of setbacks for accessory structures.) The Ordinance also has no maximum lot coverage limitations, which are often a constraint for the development of in -fill second units in established neighborhoods. In concert with the adoption of the General Plan 2025 the City of Petaluma updated its development impact fees to ensure that new development provide the necessary public facilities and infrastructure to support that development. An unintended consequence of that update was the assignment of impact fees to second units at the same rate as a traditional unit. The impact fees would amount to a cost similar to the second unit's actual construction cost creating a strong disincentive to developing second units. In 2010 the City Council revisited this issue and reduced the impact fees for second units to approximately 25% of that for a typical single-family unit. Since that time several applications for second units have been processed. 1.3 Dere it onuses and Other Incentives State law requires the City to approve a minimum density bonus of 25 percent for lower-income and senior housing projects that meet certain criteria, as well as other incentives under specified circumstances. Housing Element Program 3.3 follows California Govt. Code Section 65915 to adopt an ordinance that specifies the method of providing state -required developer incentives, including a maximum density bonus of 35%. Although a number of projects with density bonuses have been reviewed and approved in the past, amending the Zoning Ordinance to include procedures and standards for density bonuses and other incentives would facilitate the review and approval of projects proposing affordable and senior housing. NOTE: Staff is in the process of developing a local density bonus ordinance for adoption prior to certification of this Housine Element. 1.4 Resi ti I Growth ManagementSystem The City adopted a growth management system in 1972 to meet such objectives as maintaining a reasonable ratio of Eastside to Westside growth, encouraging infill and a mix of housing types, and matching essential public facilities and services to residential development. In general, the system allowed for allocations averaging 500 residential lots or units per year. The City's ability to provide its share of affordable housing was not affected due to exemptions for senior and lower-income housing as well as residential development projects having 30 or fewer units. The growth management system has not been used since 1998 because developers have been requesting allocations amounting to fewer than 500 lots or units per year. This trend is expected to continue through the planning period and it is not anticipated that allocations under the system will HOUSING- 11 be necessary. Therefore, the growth management system will not represent a constraint on residential development during the planning period. 6.1 .5 Inclusionary Housing Program The inclusionary housing requirement (Program 4.3) is a critical component of the City's housing program and an active means of providing affordable units to households typically shut out of the housing market. Developers of residential projects of five or more units are required to rent or sell 15 percent of the units at prices or rents affordable to lower- and moderate -income households. The inclusionary requirement is also intended to offset the negative effects of new market -rate housing on the provision of non -market rate housing. The construction of above -moderate income housing depletes the amount of available residential land, while contributing to rising land prices because of a greater scarcity of developable sites. Market -rate housing development also exacerbates the affordable housing problem by creating greater needs for goods and services typically provided by low-income employees. There has been extensive debate over the question of who bears the cost of an inclusionary requirement. Depending on the relative strength of the housing market, the costs may be incurred by: • Land owners, who may receive a lower price for their land if developers are expecting a lower profit margin from the inclusionary requirement • Developers, who may have to accept lower profits if housing prices cannot be raised • The purchasers of market -rate units, who may have to pay higher housing prices if the local and regional housing supply is limited and prices are at least as high in areas outside the city This requirement does not divert residential development elsewhere in Sonoma County, since inclusionary requirements have been adopted by the County as well as all its other cities. By limiting the inclusionary requirement to 15 percent and providing alternative means of compliance, such as land dedication or payment of an in -lieu fee, the program is not seen as an undue or onerous constraint on the provision of market -rate housing. On December 1, 2003, the City Council adopted a resolution that increased the In -Lieu fees based on the square footage of the market rate units. The In -Lieu Housing fee schedule can be found on the Housing webpage at cityofpetaluma.net/cmgr/housing./html. Since the new increase in the In - Lieu fees, the City of Petaluma has added 386 units of affordable housing. Inclusionary Housing Implementation Framework The developer's affordability requirements include the following: City of Petaluma Housing Element IN HOUSING- 11 • When providing rental units the developer, must target Very Low income to Low income households. • When providing for sale units, the developer must target Low to Moderate income households. The following compliance options are available to developers: • The developer may provide affordable units (See Program 4.3) • The developer may provide In -Lieu funds, based on square footage, for each unit in the development. • The developer may provide an alternative method subject to review by staff and City Council. The following incentives are provided by the City: • Housing funds for site acquisition, pre -development, etc. as funds are available • Deferred or waived fees • Fast-track processing The In -Lieu fees can be used for the following: • Site acquisition • Pre -development • Housing assistance and programs for low income population Due to the slow economic and residential development climate, staff is predicting sporadic revenue for future years. 6.1 .6 roject Review and Approval The length of time it takes the City to review and approve housing development applications can add to housing costs. If the developer is buying the land outright, there are monthly interest costs, and if they are working under an option to purchase, there are option costs to hold the land. In recent years, varying amounts of time were taken to consider and approve housing construction proposals. Generally, projects that require environmental impact reports and/or are subject to public controversy have longer review periods. Project re -designs or additional studies may be required by environmental review. Each change in the project design can have associated architect and engineering fees, which grow with each revision. Projects that receive a negative declaration of environmental impact are typically approved within four to six months; projects with environmental impact reports typically require nine to 12 months. Below -market -rate projects are fast -tracked through the City of Petaluma's approval process. All processing time limits required by state law are adhered to and the overall length of review is consistent with similar communities. HOUSING- 11 Processing delays for residential projects can result from incomplete submittals by project applicants, inadequate responses to staff requests for additional information and exhibits, and failure to design projects to city standards. Since 2012, the City established a Development Review Committee that meets weekly with prospective developers to allow for early input on project proposals. This committee brings, building, planning, water, fire, police, transit, engineering, and economic development staff to the table early in the process to identify issues and opportunities. The effect being applications are more complete and the process is more efficient. A Site Plan and Architectural Review is required for residential projects involving more than one dwelling unit per lot (except for accessory buildings), and subdivisions with five or more single- family dwellings. According to Section 24.010 of the Implementing Zoning Ordinance, the intent of the review is to achieve a satisfactory quality of design in the individual building and its site, appropriateness of the building to its intended use, and the harmony of the development with its surroundings. Reviewers of residential projects are to be guided by the following standards to achieve these purposes: • The appropriate use of quality materials and harmony and proportion of the overall design • The architectural style which should be appropriate for the project in question, and compatible with the overall character of the neighborhood • The siting of the structure on the property, as compared to the siting of other structures in the immediate neighborhood • The bulk, height, and color of the proposed structure as compared to the bulk, height, and color of other structures in the immediate neighborhood 6.1 .7 opted Codes The City has adopted all of the California Building Standards Code, (Title 24) which include Building, Plumbing, Mechanical, Electrical, Green, Energy, Fire, Historic and Existing Building subsections. The City has amended these codes in a few instances when necessary to protect the health, safety, and welfare of its residents. Smoke detectors are required in single-family homes and automatic fire alarm systems must be provided in multi -family complexes, apartment complexes, and condominium complexes. Effective February 27, 2013, the City Council passed a smoking ordinance (Ordinance No. 2449 N.C.S.) prohibiting smoking in public places, places of employment, and certain other areas, as well prohibiting smoking in new and existing units in duplexes and multi -family residences. The purpose of the ordinance is to protect the public health, safety and welfare, regarding the health hazards relating to secondhand smoke. City of Petaluma Housing Element In HOUSING- 11 Automatic fire suppression systems must be installed in new residential structures. While these measures result in higher initial housing costs, they are offset over the long run by savings on homeowners' insurance and property damage. The presence of an active code enforcement effort serves to maintain the conditions of the City's housing stock and does not constrain the production or improvement of housing in the City. The Municipal Code also establishes standards for the maintenance of properties with three or more rental units regarding the accumulation of trash and debris, overgrown vegetation, and abandoned vehicles and equipment. Planning nin Fees Table 12 — Planning and Building Fees FEE CATEGORY Planning and Application Fees Variance Conditional Use Permit - Major Conditional Use Permit - Minor General Plan Amendment Zoning Amendment Site Plan & Architectural Review Specific Plan Building Inspection/Permit SUBDIVISION Certificate of Occupancy Lot Line Adjustment Tentative Parcel Map Final Parcel Map ENVIRONMENTAL Initial Study Environmental Impact Report "Illo Single -Family $4,317 + TM $4,982 + TM $1,741 +TM $5,845 + TM $6,311 + TM $6,111 + TM $8,902 + TM Building Valuation $500,001 to $1,000,000: $4,710.57 for first $500,000 plus $6.92 for each additional $1,000. Building Valuation $ 1,000,001 and up $8,170.57 for first $1,000,000 plus $4.75 for each additional $1,000. None. Included as part of building permit. $4,666 + TM $3,455 + TM $8,839 + TM $5,857 + TM Consultant Fee +25% admin Multi -Family $4,317 + TM $4,982 + TM $1,741 +TM $5,845 + TM $6,311 + TM $6,111 + TM $8,902 + TM Building Valuation $500,001 to $1,000,000: $4,710.57 for first $500,000 plus $6.92 for each additional $1,000. Building Valuation $ 1,000,001 and up $8,170.57 for first $1,000,000 plus $4.75 for each additional $1,000. None. Included as part of building permit. $4,666 + TM $3,455 + TM $8,839 + TM $5,857 + TM Consultant Fee +25% admin HOUSING- 11 The City charges residential development a variety of development impact fees in order to pay for the increased system capacities and services required by that development. In parallel with the adoption of the General Plan 2025, the City updated its impact fee schedules based on a fee study completed by Sinclair and Associates. The study in accordance with CA Government Code Section 66001(a), has done the following for all established fees: • Identified the purpose of the fee • Identified the use to which the fee is to be put • Determined how there is a reasonable relationship between the fee's use and the type of development project on which the fee is imposed • Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed • Determined that there is a "reasonable relationship" between the specific amount of the fee imposed as a condition of approval on a particular development project, and the cost of the public facility attributable to that project. The fees as shown in Table 13 were increased substantially reflective of the increased costs associated with major transportation improvements and water -capacity infrastructure needs. While these fees may affect housing prices, the only alternatives would be their payment by the existing Petaluma taxpayers or no further residential development, either of which are infeasible. While the existing fee schedule applies to the City's affordable housing developments (usually MF), it has been common practice to pay the fees from the Housing Fund so the fees are not a constraint to the production of low/mod housing. Table 13 — Development Impact Fees I i i Park Land Acquisition SF 1,660 1 MF 1 1,123 Park land Development SF 5,353 MF 3,605 Traffic Impact SF 19,491 MF 11,965 Waste Water SF 7,542 MF ( 4,993 Water SF 3,671 MF 3,671 TOTAL $43,651 1 $29,352 City of Petaluma Housing Element IN HOUSING- 11 Table 14 below identifies the hypothetical fees that would be collected for a new 2,000 square foot two-story house and a 45 -unit multifamily project. These fees would be approximately $51,376 and $35,160 per unit respectively. This represents about 12.5 percent of the total development cost for single-family unit and 9.0 percent for a multifamily unit. Table 14 — Proportion of Fee in Overall Development Cost for a Typical Residential Development Total estimated fees per unit $51,376 $35,160 Typical estimated cost of 409,376 392,456 development per unit Estimated proportion of fee 12.5% 9.0% cost to overall development cost per unit Required Improvements The City of Petaluma requires developers to provide on- and off-site improvements in association with residential development, e.g., streets, curbs, gutters, sidewalks, street trees, drainage, water, sewer, power and communications utilities. These requirements are comparable to provisions in neighboring cities. All standards for public improvements (i.e., street widths, sidewalks, storm drains) are delineated in the Municipal Code. These standards may be modified if warranted by individual circumstances, and therefore are not a constraint on development. The City's In -Lieu Housing Fund, Commercial Linkage Fee Fund, the California HOME Investment Partnership Act funds, and CDBG funds are often used to assist below -market -rate projects with the aforementioned improvements. 6.1.9 Constraints On Housing For Persons WithDisabilities Zoning and Other Land Use Regulations The City conducted a comprehensive review of its zoning laws, policies and practices for compliance with fair housing laws. The City has not identified any zoning or other land -use regulatory practices that could discriminate against persons with disabilities and impede the availability of such housing for these individuals. 3Y�Fn ��}7R�tS {�tk{�t}• • • HOUSING- 11 Examples of the ways in which the City facilitates housing for persons with disabilities through its regulatory and permitting processes are: • The City allows some variation from the application of its parking standards, for example, the reduction of parking spaces for a unique use such as a senior housing project or other special needs. • The City permits group homes of with six or fewer persons by right in all residential districts. No permits are required unless accommodations are needed that require a building permit. The City has no authority to approve or deny group homes of six or fewer people, except for compliance with building code requirements, which are also governed by the State. • The City permits group homes of 7 or more persons in mixed use zones above ground floor by right, and in commercial zones subject to a Condition of Approval. • The City does not restrict occupancy of unrelated individuals in group homes and does not define family or enforce a definition in its zoning ordinance. • The City permits housing for special needs groups, including for individuals with disabilities, without regard to distances between such uses or the number of uses in any part of the City. The Land Use Element of the General Plan does not restrict the siting of special need housing. Permits and Processing Petaluma implements and enforces the 2013 California Building Standards Code as of 1/1/2014 and does not have any modifications to that code that would affect accessibility. The City does not impose special permit procedures or requirements that could impede the retrofitting of homes for accessibility. The City's requirements for building permits and inspections are the same as for the other residential projects and are straightforward and not burdensome. City officials are not aware of any instances in which an applicant experienced delays or rejection of a retrofitting proposal for accessibility to persons with disabilities. �rMiiNE #iigg,nntgglz City of Petaluma Housing emen El t tt HOUSING- 11 6.2 Non -Govern mental Constraints Nongovernmental constraints are those that are not created by local governments, but may be lessened through their actions. 6.2.1 Fair Housing As an entitlement jurisdiction under the Community Development Block Grant program, the City of Petaluma is required to prepare an Analysis of Impediments to fair housing. The City of Petaluma, in conjunction with the City of Santa Rosa and the County of Sonoma, the three HUD - designated entitlement jurisdictions in Sonoma County, updated their Analysis of Impediments as of March 7, 2012. The purpose of the Analysis was to require jurisdictions receiving federal housing and community development funds to engage in a fair housing planning process, identify local fair housing barriers and institute actions to eliminate or mitigate them. The Analysis recommended a Fair Housing Action Plan with the following actions: • Strengthen the capacity of a local fair housing organization to reduce discriminatory activities • Increase affordable, accessible housing in all areas of Sonoma County • Improve transit options in Sonoma County • Improve and make more uniform fair housing information on jurisdictional websites All three jurisdictions are following these recommendations to the extent possible given the current funding constraints. The Analysis of Impediments can be found on the Housing website at cityofpetaluma.net/cmgr/housing.html. In 2014 the Department of Housing and Urban Development, in affirmatively furthering fair housing, has replaced the Analysis of Impediments with a new report - Assessment of Fair Housing. This report will be completed by 2015 with Petaluma's Consolidated Plan. Once the report is completed it will be on the city's Housing website. 6.2.2 Construction Costs Construction Materials Housing prices are influenced partly by the types of construction materials used. Homes in Petaluma are generally of wood frame construction and finished with stucco or wood siding. This type of construction is the least expensive conventional method (brick, stone and concrete block are more costly). Composition shingle and built-up roofs, which are found on a large share of the HOUSING- 11 community's homes, are also the least expensive, followed by wood shingle, wood shake, concrete tile, metal tile and clay tile. Currently, the construction cost to build a 1,500 s.f. residential home is approximately $312,000 (buildingcost.net). The Sonoma Economic Development Board stated in their 2012 Industry Report, construction will contribute a smaller share of economic growth in Sonoma County than before the recession in 2008. Prices for construction materials such as lumber, steel, insulation, drywall, cement, and concrete are affected by the demand for them. Higher prices can occur when increased levels of construction activity create materials shortages. Adversely, lower prices can occur when demand has decreased. 6.2.3 Land Costs Land costs are affected by such factors as zoning density, the availability of infrastructure, the existence or absence of environmental constraints, land speculation and the relative amount of similar land available for development. As is typical in California, land costs are high. According to the Multiple Listing Service there were 8 residential vacant lots for sale in May of 2014. The average price for a residential lot of less than 1 acre was $250,000. The average price for a residential lot between 1 and 4 acres was $616,000. The City has often assisted with pre -development costs for lower-income housing projects in the past, including the securing of property options and the purchase of land. Without the annual tax increment of $3,000,000 from Redevelopment for the 20% housing set-aside, similar assistance in the future will prove to be much more challenging as the City does not have the funds that are critical to the development of such housing. 6.2.4 Financing ® t Mortgage Interest Rates Housing affordability increases as interest rates decrease and vice a versa. Besides lowering monthly interest payments for new buyers and significantly decreasing the cost of a loan, lower interest rates allow existing homeowners to refinance their homes, thereby lowering monthly housing costs and perhaps preserving their ownership status. In a strong financial market, lending practices tend to be more flexible with interest rates being determined by the U.S. Government. As the country comes out of the recession, lending practices have tightened up. Mortgage interest rates by themselves are not a barrier to affordable housing. The price of the property is also a factor. In 2014, the price of an individual house has increased in the Bay Area from the 2008 recession prices and is approaching the 2007 prices which were not City of Petaluma Housing Element HOUSING- 11 sustainable. Currently, interest rates are low, but low income people are having a hard time qualifying for a mortgage due to the tight credit market due to the abundance of foreclosures. Construction Financing Overall, construction financing usually represents a small contribution to total housing costs. Financing costs for construction are affected partly by how early in the development process loans must be taken out and how long the loans must be carried. Project delays can increase total interest payments, as well as create greater financial risk for a project. Construction financing for higher -density in -fill projects is generally harder to obtain than for conventional single-family construction. Urban Growth Boundary In 1998, the citizens of Petaluma overwhelmingly approved (by 80 percent of the vote) an urban growth boundary (UGB) that represents the limit of urban development and the provision of city water and sewer services until 2019. The UGB is intended to promote a compact urban form that ensures the efficient provision of services and infrastructure, and preserve agricultural and open space outside of the boundary. The boundary is essentially contiguous with the City's Sphere of Influence except for a sewer service area that encompasses the Penngrove area, and a water service area that serves a small rural area on the western edge of the city. Although most amendments to the UGB require a popular vote, the City Council is empowered to amend the UGB to accommodate affordable housing projects under certain circumstances. The City of Petaluma is actively promoting the development of higher -density housing to maximize the number of units that can be built within its UGB. The General Plan 2025 projected an additional potential for 6,005 housing units at plan buildout beyond the base year of 2005. The potential growth estimates were based on actual development that has occurred since 2005, approved projects, projects that are currently in the formal review process, and anticipated projects (see Section 6 for further details). Because there are ample areas within the UGB to more than accommodate Petaluma's regional "fair share" of new construction during the planning period (see Section 6), the UGB is not a constraint on the ability of the City to meet its housing needs. In 2010, Petaluma voters extended the UGB to 2025, coterminous with the General Plan 2025's planning horizon. �k{����l�tc7�rt • - • • HOUSING- 11 The following goals, policies, and programs are designed to address the existing and projected housing needs of the City of Petaluma. Each program has one or more individuals, bodies, or agencies responsible for its implementation, along with a potential or committed funding source, and a schedule for its implementation during the 2015-2023 planning period. WIM Housing ply Provide adequate residential development opportunities to accommodate projected residential growth and facilitate mobility within the ownership and rental markets. Policy 1.1 Promote residential development within the Urban Growth Boundary. Programs: 1.1 Utilize sites within the UGB to accommodate anticipated long-term residential growth. Responsibility: City Council and planning staff Funding: General Fund Schedule: 1/31/15 — 1/31/2023 Policy 1.2 Encourage the development of housing on underutilized land that is appropriately zoned. Programs: 1.2 Utilize the Central Petaluma Specific Plan to facilitate the development of vacant and underutilized land at the heart of the City. A key objective of the Specific Plan is to establish a significant component of netiv housing near the downtown and the transit center. Responsibility: City Council and planning staff Funding: General Fund Schedule: 1/31/15 — 1/31/2023 Potential units: Up to 1,617 new multi -family units 1.3 Allow more flexibility in parking requirements for mixed-use developments in order to promote the development of residential uses along mixed use corridors. Responsibility: City Council and planning staff Funding: General Fund Schedule: 1/31/15 -1/31/2023 City of Petaluma Housing Element HOUSING- 11 Goal 2 Housinari t Promote a range of housing types to meet the housing needs of all Petalumans. Policy 2.1 Encourage a mix of housing design types. Programs: 2.1 Provide developers with an inventory of sites with a wide range of densities that allows a variety of product types. Responsibility: City Council and planning staff Funding: General Fund Schedule: 1/31/15 — 1/31/2023 The Site Inventor , is listed on the Housing website at ii,ii,tii,.cih,ofuetaltrttaa.net/canzi-Ilioitsina. Staff responds to inquiries from developers regarding suitable sites and refers them to the site inventory. 2.2 Utilize the Central Petaluma Specific Plan to facilitate the development of rental and live/work units in the downtown, e.g., high density housing, relaxed parking requirements, and encouraging on-site inclusionary units. Responsibility: City Council and planning staff Funding: General Fund Schedule: 1/31/15 — 1/31/2023 Outcome: 240 ELI - Mod units Policy 2.2 Allow flexibility within the City's standards and regulations to encourage a variety of housing types. 2.3 Treat transitional and supportive housing as residential uses, subject only to those restrictions on residential uses contained in each respective zone. Responsibility: City Council and planning staff Funding: General Fund Schedule: 1/31/15 — 1/31/2023 Outcome: Increase number of units for transitional and special needs including developmentally disabled. ,titlt;City of Petaluma Housing Element HOUSING- 11 Goal 3 Developmentn r in Minimize constraints on housing development to expedite construction and lower development costs. Policy 3.1 Review and adjust city residential development standards that are determined to be a constraint on the development of housing. Programs: 3.1 Review and identify development standards that may be a constraint on the development of housing and amend the zoning ordinance accordingly. Responsibility: City Council and planning staff Funding: General Fund Schedule: By 2018 3.2 Continue to permit emergency shelters without a Conditional Use Permit or other discretionary action on industrial zoned parcels. Responsibility: City Council and planning staff Funding: General Fund Schedule 1/31/15 — 1/31/2023 Policy 3.2 Improve the city review and approval process for residential projects. Programs: 3.3 Enforce procedures and standards of Petaluma's density bonus ordinance to facilitate the review and approval of projects proposing affordable housing. California Govt. Code Section 65915 retlitired the Citi, to adopt an ordinance that specifies the method of providing state -required developer incentives, inchiding a nraiinn nr density bomis of 35% Responsibility: City Council, City Attorney, planning staff Funding: General Fund Schedule: 1/31/15 — 1/31/2023 - Ongoing 3.4 Continue to subsidize and defer application fees, development impact fees, and on- and off-site improvements for affordable housing projects. Responsibility: City Council Funding: Housing Fund Schedule: 1/31/15 — 1/31/2023 City of Petaluma Housing Element In HOUSING- 11 3.5 Continue to give priority processing to affordable housing projects. Responsibility: City Council and planning staff Funding: General Fund Schedule: 1/31/15 — 1/31/2023 3.6 Adopt residential design guidelines for single- and multi -family development that provides clear guidance with regards to design standards for applicants. Responsibility: City Council, Planning staff Funding: General Fund Schedule: By 2018 3.7 Provide continuing professional education for public officials and decision makers to improve skills in such areas as project evaluation and the conduct of public hearings. Responsibility: City Council Funding: General Fund Schedule: 1/31/15 — 1/31/2023 3.8 Actively participate in the Sonoma County Water Agency's project to increase the capacity of the City's water supply system in order to secure a safe, reliable imported water supply. Responsibility: Department of Public Works and Utilities Funding: Water Resources Schedule: 1/31/15 — 1/31/2023 3.9 Actively participate in the Sonoma County Water Agency's planning for a second Petaluma Aqueduct to influence the aqueduct alignment, capacity, and construction details to best reinforce the distribution system. Responsibility: Funding: Schedule: �j rn;. �r�s?tzri77 • • • Department of Public Works and Utilities Water Resources 1/31/15 — 1/31/2023 HOUSING- 11 Goal 4 Affordable Housing Promote the development of housing affordable to extremely low, very low, low- and moderate -income households. Policy 4.1 Because of the dissolution of redevelopment housing set-aside funding, make the maximum use of other resources available for the provision of housing affordable to extremely low (ELI) to moderate -income households. Programs: 4.1 Continue to work with other agencies to receive a reasonable share of federal, state and private funding for housing. Examples of partnerships with other agencies include the Sonoma Co. Continuum of Care Conunittee (homeless issues); the Sonoma Co. Conununity Developinent Conunission (Section 8 and other housing programs), ETA L. Responsibility: Housing Division Funding: Housing Fund Schedule: 1/31/15 — 1/31/2023 4.2 Continue to work with non-profit housing organizations to benefit from their expertise in and resources for developing and supporting affordable housing. All of the affordable Housing projects in the city have been developed in partnership with non-profit organizations. We meet annuallv with non-profit organizations as their partners in developing and supporting affordable housing. Responsibility: Housing Division Funding: Housing Fund Schedule: 1/31/15 — 1/31/2023 Policy 4.2 Assign a share of the responsibility for providing affordable housing to the developers of market -rate housing and non-residential projects. Programs: 4.3 Continue to require residential projects of five or more units to contribute to the provision of below-market rate housing in one of the following ways: a. Dedicate 15% of the units on-site or a portion of the project site or property to the City or a non-profit organization for use as affordable housing. b. Within a half -mile radius of the planned SMART stations, developers are encouraged to provide at least 15 percent of the units in a rental housing project at rents affordable to very low -and low-income households and 15 percent of the units in a for -sale project at prices affordable to low -and moderate -income households for a minimum period of 30 years. c. The developer can make an in -lieu payment to the City's Housing Fund. City of Petaluma Housing Element Im HOUSING- 11 d. Use alternative methods to meet the intent of the inclusionary requirement, subject to approval by the City Council. Responsibility: City Council, Planning Division, and Housing Division, Funding: Housing Fund Schedule: 1/31/15 — 1/31/2023 4.4 Administer the Housing - Commercial Linkage Fee Program. The Linkage Fee on certain commercial, industrial, and retail development partially offsets the impact on the need for affordable housing, for Petaluma's ivorkforce. Responsibility: City Council, Housing Division, Funding: Housing Fund Schedule: 1/31/15 — 1/31/2023 Policy 4.3 Facilitate the entry of low- and moderate -income households into the housing market. Programs: 4.5 Continue to support the Mortgage Credit Certificate Program administrated by the Community Development Commission of Sonoma County. Under this program, the IRS allows eligible homebuyers with a MCC to take 20 percent of their annual mortgage interest as a dollar -for -dollar tax credit against their federal personal income tax. This enables first-time buyers to qualify for a larger mortgage than otherivise possible, and can thus bring homeownership tivithin their I•each. Housing staff will coordinate tivith the County as lead agency all other Sonoma cities, and the MCC consultant. Housing staff will provide information about the program to all First time homeowner applicants. Responsibility: Housing Division staff Funding: Housing Fund Schedule: 1/31/15 — 1/31/2023 4.6 Continue the existing partnership with the Housing Land Trust to administer the Homebuyers'Assistance Program aimed at low- and moderate -income households. Responsibility: Housing Division staff in partnership with the Housing Land Trust of Sonoma County Funding: As needed Schedule: 1/31/2015 — 1/31/2023 i f�:�7ttivg1:J �}r�£ HOUSING- 11 Goal 5 Preservation Affordability Preserve the City's existing affordable housing and ensure the long-term affordability of new below-market rate units. Policy 5.1 Preserve the affordability of the City's existing affordable housing stock. Programs: 5.1 Continue to administer the Mobile Home Rent Stabilization Ordinance. The City of Petaluma has 868 mobile home spaces in seven mobile home parks. Of those total spaces, 317 are under our Mobile Home Rent Stabilization Program. Responsibility: City Council, Housing Division Funding: $15,000 annually from Housing Fund Schedule: 1/31/2015 1/31/2023, Annually and ongoing 5.2 Deny conversions of rental apartments to condominiums if the proposed conversion significantly diminishes the existing supply of rental units or threatens to lower the rental vacancy rates within Petaluma. The Citv allows conversion only when the rental vacancy rate is above three percent, or- if* orre.for-one replacement of rental units of a similar type occurs, or if Mo -thirds of the adult tenants agree to the conversions in the city. Responsibility: City Council Funding: General Fund Schedule: 1/31/2015 — 1/31/2023 5.3 Retain federal, state and locally subsidized affordable units that may be lost through contract tennination by utilizing the following techniques: • Continue to monitor, at least every two years, at -risk units. • Work with property owners to maintain the projects for lower incomes through extending their contract. fl ­e are 11 01' 111,g 11'ltlJ the noioroflf onwer of Pak L ane _-1pL rtments to elisllre that then' iP G011trC1Ct is r'ellelred irhell It colves d1le 111 December of 014. Responsibility: Housing Division Funding: Housing Funds Schedule Bi -annually through 1/31/2023 City of Petaluma Housing Element In HOUSING- 11 Policy 5.2 Ensure the long-term affordability of units developed or provided with City assistance. Programs: 5.4 Impose resale controls or rent restrictions on all units that receive state housing density bonuses and other incentives for not less than 30 years. Responsibility: City Council, Housing Division Funding Source: Housing Fund Schedule: 1/31/2015 — 1/31/2023 5.5 Continue to impose long-term resale controls or rent restrictions on affordable units provided through the inclusionary housing program or city subsidies to ensure that they remain affordable to the targeted income groups. Responsibility: City Council, Housing Division Funding Source: Housing Fund Schedule: 1/31/2015 — 1/31/2023 Goal 6 Special Needs Housing Promote housing opportunities for special needs groups. Policy 6.1 Support efforts to prevent homelessness. Programs: 6.1 Continue to support the Petaluma People Services Center (PPSC) Homeless Prevention Program, including the Mediated Assistance Program and the Renters Assistance Program. The Rental Assistance Program assists Petaluma individuals and families seeking to retain affordable housing by making a one-time pmvment of rent or mortgage on their behalf. The Renters Assistance Program is a grant program for the up -front costs of renting a home. Clients also receive it formation, referrals and counseling services to prevent, frttrtre threats to their stability. Responsibility: City Council, Housing Division staff Funding: Housing Fund Schedule: 1/31/2015 — 1/31/2023 Outcome: Assist 100 households annually from becoming homeless by assisting them with one-time emergency rental assistance. Policy 6.2 Support efforts to provide housing and support services for the homeless. Programs: 6.2 Continue to support the Mary Isaak Center WIN HOUSING- 11 The Maly Lsaak Center contains a 100 -bed dormitory, a large dining area, a six -bed sick roorrn, a large trai nrng1serviee kitchen, a living r''ooln, a con ference%oannselrng roornn, a latmdry r oornn, oflces, lockers, and naen 's and women 's bathroom facilities tivith shotivers. All clients participate in a multi-level case management and goal -setting programa that helps clients with basic needs and access to social services, including life skills workshops, coamseling services, referrals, showers, lockers, nail, launndly facilities, telephone and nnessage services. Responsibility: City Council, Housing Division staff in partnership with COTS Funding: Housing Fund (as funding allows)/ In-kind Schedule: 1/31/2015 — 1/31/2023 Outcome: Emergency shelter and support services to 100 people per bed night 6.3 Continue to support the COTS Family shelter at MIC The Many Lsaak Center has a 32 -bed transitional hotrsitng program for families located oil the 2,d, floor of the Mary Lsaak Center. The program is designed to be the final step on their tivay to stability in permanent, independent housing. Responsibility: City Council, Housing Division staff in partnership with COTS Funding: Housing Fund,(as funding allows)/In-kind Schedule: 1/31/2015 — 1/31/2023 Outcome: Support services to 8-10 families per night Policy 6.3 Support efforts to provide transitional and supportive housing to those moving from homelessness to independent living. Programs: 6.4 Continue to support the ongoing maintenance of COTS family transitional homes located throughout the community through a partnership with Rebuilding Together, Petaluma. Responsibility: City Council, Housing Division staff in partnership with COTS Funding: Housing Fund — in kind rental assistance equals $25,000 per year. Schedule: 1/31/2015 — 1/31/2023 Outcome: Rental assistance and support services 21 families/mo. 6.5 Continue to support the ongoing maintenance of a City -owned four-bedroom house on Rocca Drive, leased and operated by the Vietnam Veterans of California serving homeless male veterans who are enrolled in the Agency's Employment and Training Program. Responsibility: City Council, Housing Division staff in partnership with VCC. Funding: Housing Fund (as funding allows)/ in kind rental assistance equals $25,000 per year. Schedule: 1/31/2015 -1/31/2023 Outcome: Housing and support services to 5 veterans per month. City of Petaluma Housing Element HOUSING- 11 6.6 Continue to participate in the Countywide Continuum of Care planning process as a "lead agency" along with the City of Santa Rosa and the County of Sonoma. Responsibility: City Council, Housing Division Funding: Housing Fund Schedule: 1/31/2015 — 1/31/2023 Policy 6.4 Promote the construction and maintenance of housing for the elderly. Programs: 6.7 Continue to support the construction of senior housing. The Citi, of Petaluma will assist developers with the issuance of bonds, tax credit financing, fturding applications, etc. to help develop senior housing. The City will pursue other alternatives for, ftnrding with, federal and state agencies, such as TOD funding, MHP fiuzding, etc. Responsibility: City Council, Housing Division staff in partnership with our non- profit partners Funding: Housing Fund, as funds are available Schedule: 1/31/2015 — 1/31/2023 Outcome: 100 additional elderly and disabled units. 6.8 Continue to support the "Rebuilding Together — Petaluma" (RTP) program. This non profit, non -denominational volunteer organization provides home repair services to low-income Petaluntans, many of whom are seniors or disabled, during its annual Rebuilding Day in April and throughout the year on an emergency basis and assist in the upgrade of the housing stock in targeted neighborhoods. The Citv fitrrds Rebuilding Together with its CDBG entitlement grant. One of the priorities of Petaluma's Community Development Block Grant program is to facilitate programs and projects for persons with special needs (homeless person, the disability comn unity, etc.). Rebuilding Together also partners with Disabilitv Services and Legal Center whose clients need repairs made to their home. Responsibility: City Council, Housing Division staff in partnership with RTP staff and volunteers. Funding: CDBG/Housing Fund - Schedule: 1/31/2015 — 1/31/2023 Outcome: Rehabilitation of 25-30 homes of low income and disabled persons per year. Policy 6.5 Promote the provisions of disabled -accessible units and housing for developmentally, mentally and physically disabled. Programs: 6.9 Continue to require the inclusion of disabled -accessible units in projects that receive city assistance. HOUSING- 11 All units cleveloped With city assistance comply with Title VI (Ch,il Rights Act), Section .50.5 ( Rehabilitation Act of 1973) and Section 109 ( Housing and Coni nunity Development Act). The Citv of Petali.nna requires that 10% of the units are accessible units. Responsibility: City Council, Housing Division Funding: Housing Fund Schedule: 1/31/2015 — 1/31/2023 6.10 Support the construction of housing specifically designed for persons with a developmental, mental, or emotional disability. The Citi, of Petaluma will continue its outreach with Buckelew Programs, Sonoma County Mental Health and the North Bay Regional Center for persons with developmental disabilities. Responsibility: City Council, Housing Division staff in partnership with non- profit developers such as Buckelew Programs. Funding: Housing Fund Schedule: 1/31/2015 — 1/31/2023 Outcome: The City has two existing special needs apartment complexes for people with mental illness and developmental disabilities and will continue to pursue opportunities for future developments for the disabled. Policy 6.6 Promote the construction of rental units for larger families. Programs: 6.11 Continue to require family apartment projects that receive city funding to include units with more than two bedrooms. Responsibility: City Council, Housing Division Funding: Housing Fund, as funds are available Schedule: 1/31/2015 — 1/31/2023 City of Petaluma Housing Element IN HOUSING- 11 ®all Fair Housing Promote a choice of housing types and locations available to all persons, regardless of race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, source of income, age, marital status, medical condition or disability. Policy 7.1 Discourage discriminatory housing practices. Programs: 7.1 Continue to refer fair housing complaints to the Mediation Assistance Program administered by the Petaluma People Service Center. Petaluma People Services Center provides a number of services including mediation and resolution of tenant/landlord disputes, helping tenants complete state and federal complaint forms, investigates complaints of housing discrimination, and providing outreach services. Fair housing information is disseminated in a variety of ways. PPSC prints brochures that it provides to the Cite and distributes to tenants and landlords. Responsibility: Housing Division staff in partnership with PPSC Funding: Housing Fund Schedule: 1/31/2015 — 1/31/2023 — Annually and ongoing Outcome: To assist any Petaluma resident in need of information or mediation regarding Fair Housing or tenant/landlord assistance. 7.2 Initiate actions to address any fair housing issues or constraints on housing for the disabled identified by the 2012 Analysis of Impediments, including removing the constraints or providing reasonable accommodation for housing intended for persons with disabilities. The Analvsis of Impediments is a county -wide document. The document pointed out five impediments that the .jurisdictions needs to concentrate on. Those impediments are housing discrimination when residents were looking for housing; some areas in the county are ethnically segregated,* shortage of transit opportunities; Hispanics/Latinos have a higher loan application denial rate and information about fair housing is not on jurisdictions' websites. Petaluma, through tivorking with Petalamta People Services Center, is continuing to address these issues. We have posted fair housing information on out - website as well as linking Petaluma People Services Center website to our page. PPSC's staff speaks Spanish and all materials that are distributed are printed in Spanish. Petaluma transit system is expanding and ridership has increased since 2008. Just recently the Citi, extended the hours of its service. Responsibility: Housing Division Funding: Housing Fund and Block Grant Fund Schedule: 1/31/2015 — 1/31/2023 7.3 Develop a reasonable accommodation procedure. A reasonable accommodation procedure will ensure persons with disabilities equal access to housing in accordance with fair housing laws. HOUSING- 11 Government Code Section 65583(c)(3) requires the housing element provide program to address and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing for persons with disabilities. The program tivill describe the process for requesting a reasonable accommodation retrofit (i.e. ramp request), and describe the extent to which existing requirements constrain or facilitate the application of an existing or proposed reasonable accommodation program Responsibility: Community Development Department Funding: CDBG Funds Schedule: By 2018 City of Petaluma Housing Element IN HOUSING- 11 Goal 8 Housing Maintenance Preserve and improve the city's existing housing stock. Policy 8.1 Promote the maintenance of existing residential units. Programs: 8.1 Continue to support the "Rebuilding Together — Petaluma" program. See Program 6.9 of the Housing Element. for Program details. Coordinate with the City of Petaluma's Code Enforcement staff to identify unsound or deteriorating housing conditions for possible rehabilitation. Responsibility: Housing Division and Code Enforcement staff Funding: Housing Fund Schedule: 1/31/2015 — 1/31/2023 HOUSING- 11 Goal 9 Community Relations Promote the integration of affordable and special needs housing with existing neighborhoods. Policy 9.1 Promote the integration of affordable and special needs housing projects on existing neighborhoods. Programs: 9.1 Continue to address community input of such projects on surrounding neighborhoods during the design review and approval process. Responsibility: City Council, Planning Commission, Planning Commission (SPAR), planning staff Funding: General and Housing Funds Schedule: 1/31/2015 — 1/31/2023 9.2 Monitor and continue to work with the managers of affordable and special needs housing projects to minimize potential impacts on surrounding neighborhoods. Responsibility: Housing Division and Police Department Funding: Housing Fund Schedule: 1/31/2015 — 1/31/2023 City of Petaluma Housing Element In HOUSING- 11 Goal 10 EnergyConservation and GreenhouseEmissions Encourage energy conservation in housing and reduce the contribution to greenhouse gases from existing sources and minimize the contribution of greenhouse gases from new construction and sources. Policy 10.1 Promote the use of energy conservation features in the design of residential development. Programs: 10.1 Continue to evaluate residential projects for consistency with Section 66473.1 (Energy Conservation) of the Subdivision Map Act during the development review process. Responsibility: City Council and planning staff Funding: General Fund Schedule: 1/31/2015 — 1/31/2023 10.2 Continue to require the planting of street and parking lot trees as part of residential projects to provide cooling during the summer months. Responsibility Funding: Schedule: Tree Advisory Committee General Fund 1/31/2015 — 1/31/2023 -ti 11214Mt 1t rg HOUSING NEEDS ASSESSMENT TABLE OF CONTENTS: Page Population and Employment Trends.............................................................................................1 Household Characteristics Single Parent Housenolds....................................................................................................... 5 Ethnicity.................................................................................................................................. 5 Age......................................................................................................................................... 5 Overcrowding......................................................................................................................... 6 EducationalAttainment.......................................................................................................... 7 Needsfor All Income Levels................................................................................................... S Housing Stock Characteristics ExistingHousing Supply........................................................................................................ 9 OccupancyType..................................................................................................................... 9 Age and Condition of Housing............................................................................................... 9 Housing Affordability HousingCosts........................................................................................................................10 Overpayment of Housing.......................................................................................................11 Special Housing Needs Homelessness........................................................................................................................... 11 Seniors..................................................................................................................................... 16 Disabled...................................................................................................................................17 Farmworkers............................................................................................................................ 20 LargeFamilies......................................................................................................................... 21 Female -Headed Households.................................................................................................... 21 FirstTime Homebuyers........................................................................................................... 22 Appendix A — Housing Need Assessment 1 APPENDIX A A review of the City's population, business and housing characteristics helps to identify trends and housing needs. The following analysis shows that although the City of Petaluma has had remarkable success in addressing the City Council's affordable housing goals, the need for appropriate affordable housing continues to grow, particularly for three key populations: children, seniors, and Latinos. Unless noted, the data in the tables below is from the ABAG Housing Element Data Profiles & Projects 2013. POPULATION AND EMPLOENT TRENDS The City of Petaluma increased by 3,393 people since the Housing Element was last certified in 2009. Table IA - Population Growth Trends 2000 2010 Current — 2012 54,548 57,941 3,393 5.68% .0586% 58,245 304 0.05% .0260% 2000 & 2010 U.S. Census Bureau The Sonoma County Economic Development Board reported in its Local Economic Report for the City of Petaluma 2012-2013 that the projections for Petaluma's population growth is expected to rise 1.6% by 2016. Petaluma's population from 1960 -2040 54,548 57,941 60,600* 184 84 67.200* 1960 1970 1980 1990 2000 2010 2020 2030 2040 *ABA G's projections Appendix A — Housing Needs Assessment 2 From 1960 to 2000, Petaluma's population increased by 40,513 residents which represents an increase of almost 300%. Since the 2000 Census, Petaluma's population has increased at a much slower pace, about .05% a year. The Association of Bay Area Governments (ABAG) projects that Petaluma's population will continue to grow to 63,600 by 2040 which is an increase of 5,659 residents over 30 years. Table 2A - Population Characteristics As shown in Table 2A, the makeup of Petaluma's population has remained relatively stable. The median age of Petaluma increased to 41 years old according to the 2010 Census. Employment Trends Petaluma residents are employed in a variety of industries, with the majority working in education & health, professional/science occupations, retail and finance. See Table 3A Appendix A — Housing Need Assessment 3 2000 2010 Number Percentage Number Percentage Total Population 54,548 57,941 Male 26,661 49% 28,429 49% Female 27,887 51% 29,512 51% Age 0 to 9 7,780 14% 7,319 13% 10 to 19 7,799 14% 7,605 13% 20 to 24 2,614 5% 3,153 5% 25 to 34 7,039 13% 6,896 12% 35 to 44 10,143 19% 8,145 16% 45 to 54 8,577 16% 9,582 17% 55 to 64 4,569 8% 7,691 13% 65 to 75 2,835 5% 3,996 7% 75 & older 3,192 6% 3,587 6% Source: ABA Housing Element Data Pro files & Projections 2013 As shown in Table 2A, the makeup of Petaluma's population has remained relatively stable. The median age of Petaluma increased to 41 years old according to the 2010 Census. Employment Trends Petaluma residents are employed in a variety of industries, with the majority working in education & health, professional/science occupations, retail and finance. See Table 3A Appendix A — Housing Need Assessment 3 Table 3A — Employment by Industry Agriculture, forestry, fishing and hunting and mining 273 1.0% Construction 2,188 7.8% Manufacturing 2,779 9.9% Wholesale Food 936 3.3% Retail Trade 3,424 12.2% Transportation, warehousing & utilities 1,319 4.7% Information 988 3.5% Finance, Insurance, real estate and rental & leasing 2,878 10.2% Professional, scientific, management, administrative & 3,468 12.3% Educational, health & social services I 5,165 18.3% Arts, entertainment, recreation, accommodation & food service 1,943 6.9% Other services 1,535 5.5% Public administration 1,266 4.5% TOTAL 28,162 I 100% Source: ABA Housing Element Data Profiles & Projections 2013 According to the 2013-2014 City of Petaluma Local Economic Report, by the Sonoma County Economic Development Board, total employment has increased 2% from a year earlier. Although it is following an increasing trend, Petaluma's total employment remains down 3.2% from a four year high in September of 2008, equating to about 1000 job. Most of Petaluma's employed population is in the services sector, with the second largest sector being retail trade. There is more Finance/Insurance/Real Estate employment in Petaluma than Sonoma County which shows that money and real goods are concentrated more in Petaluma. Petaluma is set to open their second major shopping retail center in the Summer/Fall of 2014 which will increase the jobs in the retail trade in the coming months. Household Characteristics A brief snapshot of Petaluma's household composition shows that the average household size is 2.70 persons; the average family size is 3.16 persons. The average household size of owner -occupied units is 2.75 persons; for rentals, 2.59 persons. These averages are slightly higher than Sonoma County, but lower than California. The majority of Petalumans (68 percent) reside in family households, 55 percent of which are married -couple families. Approximately 35 percent of family households include children under 18 and 26% of all households have one or more people 65 years and older. Appendix A — Housing Needs Assessment 4 Single Parent Households: Approximately 12.5 percent of family households with children are headed by single parents. Since a large proportion of single -parent households are low-income and "overpaying" for housing, they are a targeted clientele for our affordable housing communities. Table 5 shows the number of low-income households overpaying (i.e. paying 30% or more of their household income) on housing. The demographic studies of Petaluma has not changed from the previous housing element. According to the 2010 Census, the largest ethnic group in Petaluma is White, representing 80.3% of the City's total population. 21% of the population was documented as being of Hispanic origin which is the same as. The ethnicity of Petaluma has stayed consistent since the previous Housing Element. Race and ethnicity characteristics are shown in Table 4A. Table 4A — Population by Race and Etl 294 2,135 93 3,317 2,171 353 2,607 129 5,103 2,382 Homes speaking a language other than English were 24.7% of the population with Spanish being the majority language at 16% of the population. In response to a 2008 Fair Housing review by HUD, the City of Petaluma incorporated a LEP Plan (Limited English Proficiency) into its housing policies and programs. The City's fair housing plan has taken this population shift into consideration in our efforts to affirmatively farther fair housing in Petaluma. The age distribution of the City's population also affects the type of housing that is needed. The dynamics of Petaluma's population has not changed since the 2000 Census. (See Table 2A) Children under 5 years comprise approximately 6% of Petaluma's population and school age children 5- 19 years comprise approximately 20 percent. Adults aged 20-60 comprise 55 percent of the city's population. The median age for Petaluma is 40.3 years which is higher than the 2000 Census when the median age was 37.1. The biggest change in the population occurred in the 55 to 64 group as the baby boomers age getting closing to retirement. Appendix A — Housing Need Assessment 5 The preeminent fact about the elderly population is its size and comparative rapid growth. Slightly more than 19 percent of Petaluma's citizens are over 60 years of age; which is an increase of 5% over the 2000 Census. One in eight Americans is a senior Lieb Senior Apartments — 23 units citizen today, compared to 1 in 25 at the dawn " of the 20th Century and it is anticipated that d during the life of this Housing Element, nearly one in five residents will be seniors. Extending out to 2020, the number of residents 60+ will increase by 34%. Census data indicates that 6.6% of seniors live at the poverty level. The City's affordable housing strategy has taken the dynamic growth of the aging population into consideration in planning future properties. Overcrowding The U.S. Census defines overcrowded housing as units with more than one inhabitant per room, excluding kitchens and bathrooms. Large household sizes, multi -generational households, high numbers of children per household, low incomes, and the limited availability of large rental units all are factors in overcrowding. The latest data shows that 705 of the city's occupied dwelling units had more than one person per room (excluding kitchens and bathrooms) and were therefore considered "overcrowded." These units represented 3.32 percent of total occupied units, which is a slight decrease over the 2000 Census rate of 5.1 % of overcrowded units. Only .90 percent of the units were severely -overcrowded (over 1 1/2 persons per room) according to the ABAG data. The city's 3.32 percent level of overcrowding is significantly lower than that of California which stood at 8.4 percent of total households. Table 5A - Overcrowded Households 1.00 or less 1 14,415 99.10% 1 6, 1.01 to 1.50 105 0.70% 1.51 or more 25 0.20% TOTAL 14,545 100.00% % Overcrowded by Tenure .90% Source: ABAG Housing Element Data Profiles & Projections 2013 350 5.20% 455 2.14% 225 3.40% 250 1.18% 6,700 100.00% 21,245 100.00% 8.60% 3.32% Appendix A — Housing Needs Assessment 6 Educational Attainment The City has seen a remarkable increase over the last 40 years in the educational attainment of its residents, reflecting the change from an agricultural- and service -based economy to a more technical one. In 1970, nearly 32 percent of adults over 24 years of age were not high school graduates, while only 10 percent had earned a college or advanced degree. These proportions are now essentially reversed, with more than 37 percent possessing a bachelor's degree or higher. Only 11 percent had not graduated from high school, according to the American Community Survey, 2009-2011. Appendix A — Housing Need Assessment 7 Section 65583(a)(1) requires an analysis of population and employment trends and documentation of projections and a quantification of Petaluma's existing and projected needs for all income levels. The Element must also quantify existing and projected extremely low income (ELI) households (incomes with 30% or below the AMI) and analyze their housing needs in accordance with Chapter 891, Statutes of 2006. Table — 6A - Housing Problems for All Lower Income Households Household Income <=30% MFI % with any housing problems % Cost Burden >30% % Cost Burden >50% Household Income > 30% to <= 50% MFI % with any housing problems % Cost Burden > 30% % Cost Burden > 50% Household Income > 50% to <= 80% MFI % with any housing problems % Cost Burden > 30% % Cost Burden > 50% 875 830 1,705 83% 77% 80% 83% 78% 81% 71% 73% 76% 1185 925 2110 78% 65% 72% 84% 65% 75% 44% 51% I 48% 1590 1,765 3,355 79% 57% 68% 75% 57% 66% 23% 37% 30% Source: State of the Cities Data Systems: Comprehensive Housing Affordability Strategy (CHAS) Data & ABAG Of the 1,705 ELI households in Petaluma, the City projects that there will be a need for an additional 100 units for extremely low income households from 2015-2023 (utilizing the ABAG RHNA numbers, 50% of the Very Low allocation). Approximately 50% of that need will be addressed with the following projects already constructed: • Vintage Chateau — Phase II — 55 and older — opened in 2012 • Logan Place — Opened in October 2013 • Kellgren Senior Apartments — opened in March of 2014 Policies to encourage and facilitate housing for extremely low income are found in Chapter 6 of this Housing Element. Those policies include: Policy 2.1 Promote a range of housing type to meet the housing needs of all Petalumans including extremely low income households; Policy 3.1 Minimize constraints on housing development to expedite construction and lower development costs; Policy 4.1 — Promote the development of affordable housing to extremely low, very low, low -and moderate income households; Policy 5.1 — Preserve the City's existing affordable housing and ensure the long-term affordability of new below-market rate units. Petaluma's existing affordable housing stock includes approximately 30% of the units affordable to Appendix A — Housing Needs Assessment 8 extremely low income households; Policy 6.1 — Support efforts to prevent homelessness; and Policy 7.1 — Discourage discriminatory housing practices. As of this writing, the number of new residential construction permits is low but has increased from the last Housing Element and the median home sales price is slowly increasing to pre -recession prices. While the home sales prices has not reached the prices at the peak in 2007, they are steadily increasing which is not good news for first time homebuyers. Existing Housing Supply Petaluma is a community that offers a wide variety of housing. Although single-family detached homes make up the majority of the housing stock, the City has nearly 3,000 multi -family units and more than 898 mobile homes. The 2013 housing unit count of 22,868 represented an increase of 801 units since the prior Housing Element. According to the ABAG data profiles, there were 999 vacant housing units in 2010, or 4.4% of all housing units in Petaluma. This represents an increase of 59% over the 2000 levels. Since 2010, the vacancy rate in Petaluma has gone back down to the 2000 levels of 1.8%. It is very difficult to find a rental apartment or single family unit in today's market. The City of Petaluma does a rental vacancy survey twice a year and for the past two years, the vacancy rate for rentals over 30 units was under 2%. Occupancy Type Approximately 66 percent of the City's units are owner -occupied, which is a decrease from the last Housing Element where homeownership was at 70%. Since the last Housing Element was certified, federal, state, and local policies which favored homeownership often resulted in public and private lending practices which allowed sub -prime and other risky loans to be offered to residents unable to sustain them. The negative fallout from those practices is now being felt and the City's affordable housing program will emphasize the production in rental housing for the near future, until homeownership opportunities become available. Age and Condition of Housing Petaluma's housing stock is considerably newer than in California as a whole. Almost 31 percent of its units have been constructed since 1980. However, 9.5 percent were constructed prior to 1940, compared to 9.4 percent statewide. Older housing stock is typically in greater need of maintenance and rehabilitation. The most recent available reliable data regarding housing conditions is the 2010 Census, which identified 124 units as lacking complete plumbing facilities and 191 as lacking complete kitchen facilities. As part of the prior Housing Element, a survey was completed of three older Petaluma neighborhoods with the condition of each housing units classified as: sound, sound deficient, deteriorating, or dilapidated. Rebuilding Together Petaluma then targeted those neighborhoods with the highest level of need for Appendix A — Housing Need Assessment 9 rehabilitation. A total of ten projects were completed. One neighborhood was the target of a weekend code enforcement "check-up" by City staff. (see Code Enforcement) Code Enforcement The City's full-time code enforcement/neighborhood preservation enforcement officer has allowed a neighborhood preservation effort to operate concurrently with code enforcement. Using a somewhat restrictive code enforcement ordinance, staff is able to make great progress in getting property owners to clean up their front and side yards which had become neglected and, in some instances, consumed by illegal structures. The City is considering a consolidated version of a property maintenance code, which utilizes numerous building, fire, health and safety, and housing code minimum standards. Staff researched what other cities were doing to address to address housing conditions. Those cities that were most successful, created their own property maintenance code based on current local and state regulations, the IPMC, and most of all what their community was asking for. The intention of creating a new ordinance was to take generic code enforcement regulations and make them more specific, allowing staff to pinpoint each violation on a property. Rehabilitation The City's rehabilitation partner is "Rebuilding Together - Petaluma," a community-based non-profit agency that rehabilitates approximately 25-40 homes in the city annually. The program solicits applications through information printed on city water bills, and targets households with incomes of 70 percent or less of the area median income, the elderly and disabled, single parents and large families. Using 400 community volunteers and donated materials, the program undertakes a wide range of repairs for each house that can include painting, new roofs, wheelchair ramps, electrical rewiring, new bathrooms, replacement flooring, plumbing repairs, furnace and hot water heater installation, smoke detector installation, landscaping, and window and door replacement. An annual allocation is provided to this project from the CDBG Housing Fund. HOUSING AFFORDABILITY Housing For Sale: Unlike information provided in the last Housing Element, the housing market in Sonoma County continues to rebalance in the midst of the current housing climate. Most real estate economists aver that a healthy real estate market exists when the median home price is no more than 3-4 times the amount of the median family income. Home prices in Petaluma are slowly increasing and the average sales price is approximately $500,000, which is almost six times the median household income ($76,900 for a household of four). If this trend continues, the housing costs will not be affordable for lower income residents. For Rent: Fair Market Rent (FMR) is a HUD classification. It includes shelter rent and the cost of utilities, except telephone and cable, for the median priced apartment. HUD's affordability guidelines recommend that an individual spend no more than 30% of his/her income on housing and related costs. According to Petaluma's Vacancy Survey completed in April 2014, the average rent for apartments is as follows: • 1 bedroom $1,484/month • 2 bedrooms $1,764/month • 3 bedrooms $2,221/month Appendix A — Housing Needs Assessment 10 To afford the FMR in Petaluma, applying that guideline, an individual would be required to earn between $20.00 to $37.00 per hour, depending on the number of bedrooms. Lack of affordable rental housing can lead to overcrowding, household stress, and even homelessness. HUD establishes annual income limits in various categories that are used in the administration of its programs. HUD's goals and guidelines state that the maximum monthly housing cost that households in each income category should bear should not be more than 30 percent of a family's income, which includes utilities. According to state and federal law, a lower-income (i.e., less than 80% of median income) household that pays more than 30 percent of its income for housing is living in unaffordable housing. These households are classified as "overpaying" for housing. Overpayment for Housing In Table 6A, 81% of renters in Petaluma with incomes below 80% median income are paying more that 30% of their income for housing costs and 67% of owner -occupied units are paying 30% or more for housing costs. This statistic has increased since the last Housing Element when approximately 63% of renters and 58% of owners were "overpaying" for housing To address the issue for mobile home residents, the City adopted a Rent Stabilization Ordinance in 1993. At that time, a survey of mobile home park tenants reported that just over half of the respondents reported they paid more than 30 percent of their income for housing expenses. About 40 percent reported paying more than 35 percent of their income for housing HOMELESSNESS The U.S. Department of Housing and Urban Development (HUD) defines the homeless as persons who are: • Sleeping in places not meant for human habitation, such as cars, parks, sidewalks, and abandoned buildings. • Sleeping in emergency shelters. • Living in transitional or supportive housing for homeless persons but who originally came from streets or emergency shelters. • Being evicted within the week from private dwelling units and no subsequent residences have been identified and they lack the resources and support networks needed to obtain access to housing. • Being discharged within the week from institutions in which they have been residents for more than 30 consecutive days and no subsequent residences have been identified and they lack the resources and support networks needed to obtain access to housing. Reasons for homelessness in Petaluma include: • The lack of permanent affordable housing caused by dissolution of redevelopment Appendix A — Housing Need Assessment 11 • The current foreclosure crisis • A low rental vacancy rate of 1.9% • Personal emergencies • Cutbacks in federal housing assistance • Chronic substance abuse • Insufficient support systems • Spousal/partner abuse or abandonment • Physical or mental illness • A lack of life skills • Loss of employment Populations at risk of becoming homeless also include those living in subsidized housing units if their subsidies are discontinued, and those with fixed or low incomes facing rent increases. Extent of Need Chapter 633, Statutes of 2007 (S132) amends housing element law regarding planning and approval for emergency shelters and transitional and supportive housing. This section describes in detail how the City of Petaluma has met our need to not just encourage, facilitate and zone for emergency shelters, but to actually construct emergency shelters, supportive and transitional housing and to design and implement state -of -the art programs for addressing the critical needs of homeless persons in our community. As required by SB 2, the following table presents the required analysis of homeless population needs in Petaluma. This information was provided by our local nonprofits who state that numbers are fluid and change weekly. Table 7A — Petaluma's Homeless Population Needs Assessment Supply 100 15 132 48 54 75 Balance 330 10 181 17 157 0 2013 Continuum of -Care Point in Time Census Petaluma has a state of the art homeless shelter, serving families and singles. The homeless numbers are from a point in time survey in January 2013. Some of the unmet need are clients who are seasonal (winter clients) who do not choose to utilize shelter services except during inclement weather. These clients are served by providing cots, blankets, and good in the community room at the Mary Isaak Center. Of the unserved homeless singles and families who are not served by the shelter they are directed to the Petaluma's faith -based family homeless program, a series of rotating volunteer churches. The City also provides "upstream support" by funding homeless prevention programs such as Petaluma People Services Center Rental Assistance program and the new Stimulus Homeless Prevention funds. Appendix A — Housing Needs Assessment 12 Committee on the Shelterless (COTS) owns and operates seven transitional houses called Integrity Houses which are self -managed. These units provide the flexibility to accommodate the unmet need. Supportive services are provided to Integrity houses by "mainstream" agencies such as County Mental Health Department, Alcohol and Other Drug Abuse (DADA) programs, veteran services, etc. HUD requires all entitlement jurisdictions to participate in the Continuum of Care program and all Continuum of Care participants are required by HUD to complete a bi-annual "point -in -time survey". The 2013 homeless count in Sonoma County inclusive of Petaluma shows the following data: • 4,280 homeless individuals (including 277 children and 851 single transition age youth living on their own) were identified countywide (January 2013) • More than one-half (54%) of the homeless were located in Santa Rosa. Twenty-four percent, or 1,027 persons, were located in the south area of the county, including the cities of Petaluma, Cotati and Rohnert Park, with 88% of those being in Petaluma. • Approximately 29% of the homeless adults were women. • 10% percent of the homeless adults received wages. Nineteen percent had a fixed income, such as SSI, SSDI, SDI, Social Security or a pension and nineteen percent had income from Public Aid or other income. Thirty-five percent had no income. • Approximately 11 % of the homeless population are veterans. • Sixty-three percent of the homeless adults had special needs associated with drugs or alcohol or mental health issues with 30% experiencing a severe mental disorder. Based on these surveys, the "typical" respondent could be characterized as a single male between 25 and 45 years of age, originally from outside of Sonoma County, who had lived in Petaluma for at least two years, had been homeless for more than one year, and had not slept in the Petaluma Shelter during the previous month. Existing Homeless Facilities The City of Petaluma has undertaken a number of successful projects and programs that address the needs of the local homeless population. It is estimated that over 85,000 bed -nights of shelter are provided annually through these programs. Petaluma has one emergency shelter, the Mary Isaak Center with 100 beds for single adults, operated by COTS (Committee On The Shelterless). COTS also operates one small 15 bed shelter for families, the ids Fist Family Shelter (KFFS). The MIC provides a 24 -hour -a -day, year-round full-service, supervised homeless facility. COTS annually provides over 137,000 hot meals and over 762,000 pounds of food delivered in the community. All clients participate in a multi-level case management and goal -setting program that helps clients with basic needs and access to social services. Members receive increasing support as they complete goals. Mental and physical health, substance abuse, and domestic violence assistance services, as well as job training, among others, will be offered on-site. Appendix A — Housing Need Assessment 13 Existing Transitional and Shared Housing The City's transitional housing program consists of three separate programs operated by COTS. 1) A 32 - bed transitional housing program for families located on the 2" a floor of the Mary Isaak Center, 2) One shared transitional house with 9 beds and 3) Four houses with a total of 32 beds for single adults. The City's transitional housing program assists those families and single adults by providing a shared home either in a neighborhood or at the Mary Isaak Center that is designed to be the final step on their way to stability in permanent, independent housing. With a combined total of 73 beds for single adults and families, the City's transitional housing program provides case management, children's programs, budgeting and credit repair classes and a host of skills -building programs to enable their return to self- sufficient and long-term housing stability. Existing Permanent Supportive Housing (PSH) COTS's Permanent Supportive Housing (PSH) program consist of two separate programs • Community Based Permanent Supportive Housing for Chronically Homeless and Veterans. A 9 - bed program located in 4 — bedroom apartments in Petaluma. • The 37 -bed Integrity House program, located in 11 shared homes in the community Partnering with COTS Petaluma is able to provide permanent, subsidized housing with supportive services to mostly chronically homeless and veterans. A goal of the City is to keep these vulnerable individuals housed long-term, preventing their return to shelters or the streets. In addition, the City continues to support the Vietnam Veterans of California in the operation of a four- bedroom house on Rocca Drive as a transitional home for homeless male veterans who are enrolled in the Agency's Employment and Training Program. Transitional housing may be located in any zoning district that allows residential uses. There is no special permit or approval process required for proposed facilities. (See Table 8A below) Transitional Housing** P P P P P P P P P P CUP P S P P Supportive Housing* P P P P P P I P P P P CUP P I P P P=Permitted CUP=Conditional Use A= Accessory Use S=Permit Required in Specific Use Regulations - = Use Not Allowed. *Use not explicitly defined in Implementing Zoning Ordinance. See Policy 3.1, Program 3.2. **Use not explicitly defined in zoning ordinance. Recognized as residential uses and subject to those restrictions on residential uses contained in each respective zone. See Policy 2.2, Program 2.3. Appendix A — Housing Needs Assessment 14 Homeless Prevention The In Lieu Housing Fund provides funding to the Petaluma People Services Center (PPSC) Homeless Prevention Program, which since 1989 has provided financial assistance for housing and critical needs to families and individuals who are homeless or threatened with homelessness. The Agency's funding provides administrative and operational support to two components of the Homeless Prevention Program. The Mediated Assistance Program assists Petaluma individuals and families seeking to retain affordable housing by making a one-time payment of rent or mortgage on their behalf. The Renters Assistance Program is a grant program for the up -front costs of renting a home. Clients also receive information, referrals and counseling services to prevent future threats to their stability. Typical clients served by these programs are normally self-sufficient families with children whose incomes are less than 50 percent of the median and who are faced with unplanned financial emergencies. These emergencies include medical crises, break-up of the family unit, steep increases in rent or utilities, or other unforeseen financial burdens that result in their postponing rent payments. The PPSC provides timely assistance to residents who have exhausted all other avenues and are facing eviction. Appendix A — Housing Need Assessment 1s Today's senior population in the United States is expected to double by 2030, expanding at a rate of almost 3 percent each year to almost 70 million people. Extent of Need ,4'aaaat°i�<° a,j l'ctat(aaarxa .4i.ariraa°a ��rs7t°iiarc°u8.r The American Community Survey 2009-2011 reported 11,017 city residents age 60 or over (19 percent of the population), and 4,746 households headed by persons 65 and over (22.9 percent of total households). This proportion of elderly population falls between that of Sonoma County, which is somewhat higher, and the state. Of the total elderly households, 3,768 were owner -occupied units (27 percent of all owner households) and 978 were renter households (14 percent of all renter households). Individuals living alone and who were 65 years of age or over accounted for 4,826 of the city's households in 2007 (22.9 percent of total households.) The American Community Survey also reported 4.5% of the households had grandparents who were responsible for grandchildren under 18 years of age which did not change since the last Housing Element. As citizens get older, their housing needs change. Special housing needs of the elderly include smaller and more efficient housing to minimize maintenance and barrier -free designs to accommodate restricted functions. The majority of the seniors are on fixed incomes such as pensions, social security, and personal savings. Many elderly households pay an excessive proportion of their income for housing because their incomes are low. The American Community Survey 2009-2011 identified 475 residents over the age of 65 living in poverty, which is approximately 6.6%. Low-income senior homeowners face special challenges to live in and maintain their homes. While many younger homeowners can perforin routine home repairs themselves, many elderly homeowners are often too frail to do so and must rely on others for help. They may also not be able to afford modifications that are needed to their homes to ensure their safety and improve their mobility, such as grab bars and ramps. Many single senior homeowners may be especially dependent on professional or ° other outside assistance for home repairs. Some have no or few companions or nearby relatives who can help them care for their 1,t ! homes, and some elderly widows come from generations where women traditionally relied on their spouses or other family members for the major upkeep of their homes. Senior people are less willing to move, despite the physical condition of their homes. Most often the home is paid for so it is more cost effective to stay in the home that they may have lived in 30 or more years. Appendix A — Housing Needs Assessment 16 House sharing can provide older homeowners with revenue, as well as added security and companionship, and provides renters with affordable housing. Accessory apartments, which are separate units within a home, offer the same advantages as well as privacy. Efforts are needed to help the seniors maintain independent life styles. Housing locations near public transit are needed for senior citizens because they may not drive. The elderly need additional auxiliary services such as housecleaning, health care, and grocery delivery when illness and disability limit their capacity to fend for themselves. As it becomes increasingly difficult for the elderly to live independently, there is a need for congregate or group housing that provides small individual units without kitchens or with minimal provision for cooking, and some common facilities and services, including shared arrangements for meals and housekeeping services. Congregate care housing is particularly attractive to older persons, as building design and services can be tailored to their specific needs. Providing housing that will allow seniors to "age -in-place" will become increasingly important for our non-profit senior housing partners. Existing Senior Housing and Services Since 2009 when the previous Housing Element was completed, the Petaluma Community Development Commission contributed more than $6.1 million to construct 117 affordable senior rentals in two projects, bringing the total number of senior units to 646 units. There are 14 residential care for the elderly facilities licensed in the City, ranging from small residential care homes that can accommodate three to six senior individuals, to larger facilities such as Adobe House (capacity of 80) and Sunrise of Petaluma (capacity of 89). To help address the needs of this special population, the City of Petaluma supports Rebuilding Together Petaluma, a non-profit, non -denominational volunteer organization that provides home repair services to low-income Petalumans, many of whom are elderly, during its annual rebuilding day in April. The program has repaired and rehabilitated over 450 Petaluma households since its inception in 1997 and will be supported with CDBG funds. The seniors own a large percentage of the mobile homes in Petaluma. Mobile homes meet the needs of many seniors because they provide an independent living environment with smaller yards and homes requiring lower levels of maintenance. The City's Mobile Home Rent Control Program provides rent stabilization for approximately 300 very low- and low-income mobile home park residents. Census 2010 defines a disability as a long-lasting physical, mental, or emotional condition. This condition can make it difficult for a person to do activities such as walking, climbing stairs, dressing, bathing, learning, or remembering. This condition can also impede a person from being able to go outside the home alone or to work at a job or business. In response to the serious lack of accessible housing in the United States, the Fair Housing Act requires that all Appendix A — Housing Need Assessment 17 ground floor dwelling units in buildings of four or more units without elevators and all dwelling units in elevator buildings of four or more units include the following basic features of accessible and adaptive design: • Public and common areas must be accessible to persons with disabilities • Doors and hallways must be wide enough for wheelchairs • All units must have: 1. An accessible route into and through the unit 2. Accessible light switches, electrical outlets, thermostats and other environmental controls 3. Reinforced bathroom walls to allow later installation of grab bars and 4. Kitchens and bathrooms that can be used by people in wheelchairs. Extent of Need The census identified 5,112 Petaluma residents as having a disability, with over 40% of the disabled population having more than one disability. Included in that number is 2,392 residents who are 65 or older who have a disability with 74% of those disabled residents being over 75. Table 9A - Persons with Disabilities by Disability Total Disabilities Total Disabilities for Ages 5-64 Sensory disability Physical disability Mental disability Self-care disability Go -outside -home disability 5,112 2,720 814 1,086 1,257 349 543 53.2% 29.9% 39.9% 46.2% 12.8% 20.0% Total Disabilities for Ages 65 + 2,392 46.8% Sensory disability 1,376 57.5% Physical disability 1,478 61.8% Mental disability 702 29.3% Self-care disability 531 22.2% Go -outside -home disability 1,327 55.5% Source: ABA Housing Element Data Profiles c& Projections 2013 The City has funded both new construction, rehabilitation of existing facilities and implemented programs and policies (See Policy 6.5 and related programs) to address existing and projected needs of our disability community. The City of Petaluma follows state and federal regulations which require that any new residential construction of three or more apartments or four or more condominium units be accessible and/or adaptable to disabled persons. Petaluma implements and enforces Chapter 11, 1998 California Code. The City provides information to all interested parties regarding accommodations in zoning, permit processes, and application of building codes for housing for persons with disabilities. Appendix A — Housing Needs Assessment 18 Developmentally Di bl d According to Section 4512 of the Welfare and Institutions Code a "developmental disability" means a disability that originates before an individual attains age 18 years, continue, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual which includes mental retardation, cerebral palsy, epilepsy, and autism. This term shall also include disabling conditions found to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation, but shall not include other handicapping conditions that are solely physical in nature. Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmentally disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person's living situation as a child to an appropriate level of independence as an adult. The State Department of Developmental Services (DDS) currently provides community based services to approximately 243,000 persons with developmental disabilities and their families through a statewide system of 21 regional center, four developmental centers, and two community-based facilities. The North Bay Regional Center is one of the 21 regional centers in the State of California that provides point of entry to services for people with developmental disabilities. The center is a private, non-profit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. The following information from the North Bay Regional Center, charged by the State of California with the care of people with developmental disabilities, defined as those with severe, life-long disabilities attributable to mental and/or physical impairments provides a closer look at the disabled population. Source: North BaY Regional Center 1 94954 95 0 0 0 0 95 1 Total for City 147 69 105 17 11 349 There are a number of housing types appropriate for people living with a development disability: rent subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, Section 8 vouchers, special programs for home purchase, HUD housing, and SB 962 homes. The design of housing -accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of consideration that are important in serving this need group. In order to assist in the housing needs for persons with Developmental Disabilities, the City has implemented programs to coordinate housing activities, encourage housing providers to designate a portion of new affordable housing developments for persons with disabilities, especially persons with Appendix A — Housing Need Assessment 19 developmental disabilities, outreach with the North Bay Regional Center, and pursue funding sources designated for persons with special needs and disabilities. Please see Policy 2.2 and Policy 6.5. Existing Housing and Services The 13 -unit Salishan Apartments project for persons with a developmental disability was constructed at 780 Petaluma Boulevard South by North Bay Rehabilitation Services. The property has been very successful in serving our most low income disabled community. The City has also completed a property with Buckelew Programs, a non-profit organization for person with a mental disability. The property, Boulevard Apartments, includes 14 units for very low-income persons who have a mental illness. The Fair Housing Act requirements for accessible housing are included in California's Title 24 regulations, which are enforced by the City through its building codes, building plan review, and site inspections. All city -assisted housing is compliant with both Title 24 regulations and the Americans With Disabilities Act. All senior units developed with city assistance are disabled -accessible. Additionally, Old Elm Village, an 88 -unit affordable family rental project that opened in 2002 with support from the City, has six accessible units in a range of sizes. In 2010, the National Association of Mental Illness of Sonoma County (NAMI Sonoma County) purchased a foreclosed property in Petaluma with Neighborhood Stabilization funds from the County of Sonoma. The property was rehabbed with Petaluma's CDBG funds and houses low income people with a mental disability. The City also continues to fund local nonprofits to remove physical barriers in homes occupied by persons with a disability. Farmworkers The California Department of Economic Opportunity estimates that California is able to adequately house only about 30 percent of its seasonal farmworkers. According to Sonoma County housing information, the annualized average employment in farm production and services is approximately 5,000 with 1,500 being seasonal farm workers. The majority of farmworkers live in the unincorporated County. Extent of Need The ABAG Housing Element Data identified 273 Petaluma residents who were employed in the fanning, fishing, or forestry occupations, which is approximately 1% of the workforce. Of that number, an even smaller percentage would be farmworkers. In Petaluma, permanent rental housing is the most likely the best housing option for farmworkers that live in the city. However, farmworker housing remains a regional need, as described in the Sonoma County Consolidated Plan 2010 prepared by the Sonoma County Community Development Commission. Most farms and/or vineyards are situated in the county. Another unique factor of the farming community is that most seasonal farmworkers are single men who leave their families behind to work in the fields, and who have no adequate housing. These men live in Appendix A — Housing Needs Assessment 20 fields, shacks, barns, or other unsuitable places. Although there is some overlap in many need areas, the housing needs of the male seasonal farmworker differ markedly from the housing needs of farmworker families. All residential zoning districts in Petaluma that allow affordable housing as a permitted use, would permit farmworker housing to be built. Existing Fusin All of the city's affordable units help to address the housing needs of farmworker households, especially larger rental units. Large families are defined as households with five or more members. A typical indicator of problems associated with housing large families is overcrowding and housing discrimination. Extent of Need The 2010 Census reported only 477 large owner - occupied households (3.4 percent of total) in Rounct l u& !Y114ge.4J1bn1abtc ,A1)urvnen1s Petaluma, but a higher percentage for large renter households (363 households, 6.1 percent of total). 2009-2014 Housing Element policies (Policy 6.6) will encourage larger units to match the emerging demographics which show a substantial increase in large (particularly Latino) families. Existing Fusin In the past, the Low -Income Housing Tax Credit Program encouraged the production of affordable housing with a relatively higher proportion of four-bedroom units. As indicated above, the City also promotes the inclusion of larger units. Examples include the 74 -unit Corona Ranch project, which has 32 three-bedroom and 10 four-bedroom units and Round Walk Village, which has 47 three-bedroom and 6 four-bedroom units. Burbank Housing just completed a 66 unit affordable housing property, Logan Place, which will help fulfill the need of housing large families. Female -Headed I The incomes of female -headed households are typically lower than those of other types of families. The largest housing obstacle for these families is the escalating cost of housing and the vacancy rate in our rental market. Appendix A — Housing Need Assessment 21 Extent of Need In the 2009-2011 American Community Survey, it was reported that 15% households were comprised of female householders with no husband present and children residing with them under 18 years of age. This is a 9% increase from the 2000 Census. The median earnings in 2010 for full-time female householders were $50,670, compared with $61,171 for full-time males. Female -headed households represented more than 40 percent of all Petaluma families living in poverty in 2007. Existing Housing and Services The chief beneficiaries of the PPSC's homeless prevention programs described earlier are single mothers, who continue to represent the fastest-growing component (currently 80 percent) of the nation's population of homeless families. Low- and moderate -income households often need assistance to purchase their first home. The City of Petaluma has participated in the federal Mortgage Credit Certificate Program since 1993, during which time more than 150 first-time low- and moderate - income homebuyers have been able to purchase a home in Petaluma. Under this program the IRS allows eligible homebuyers with a MCC to take 20 percent of their annual mortgage interest as a dollar - for -dollar tax credit against their federal personal income tax. This enables first-time buyers to qualify for a larger mortgage than otherwise possible, and can thus bring homeownership within their reach. The MCC program is administered locally by the Community Development Commission of Sonoma County. prates Square — Opened in 2008 Since 1988, the City has contributed over $3.2 million to assist in the development of 169 single-family homes and townhomes in seven projects that were sold to first-time low- and moderate -income homebuyers. In addition to supporting their construction, the City also provided downpayment assistance through "silent second" mortgages that require no loan payments until the house is sold. Over the last five years, we have lost 50 properties due to foreclosures or short sales. Since the downturn in the real estate market in 2008 and the dissolution of redevelopment agencies by the State of California, there are no funds allocated to subsidize the silent second mortgage program. A glowing example our First -Time Homebuyer program is Frates Square which is a 26 unit development using the Land Trust model. The City of Petaluma partnered with the Housing Land Trust of Sonoma County and a private developer, Delco Builders, to build the homes to sell to low and moderate income families. There were no "silent second" loans on the 26 homes that were purchased by the homeowners. With the land trust model, we have not lost any of the homes to foreclosure. Appendix A — Housing Needs Assessment 22 Appendix B — Review of Previous Housing Element Name of Program/Policy Appendix B - Review of 2009-2014 Element Objective 1.1 Utilize sites within the UGB to accommodate Promote Residential Development within anticipated long-term residential growth. Urban Growth Boundary 1.2 Utilize the Central Petaluma Specific Plan to facilitate Encourage the development of housing the development of vacant and underutilized land at the heart underutilized land that is appropriately zoned of the City. Continue Modify Status of Program/Policy Delete the N/A No development applications were received outside UGB during this Housing Element. Continue on The Final Station Area Plan has been completed; adoption by the City Council in June 2013. Continue 1.3 Allow more flexibility in parking requirements for Encourage the development of housing on mixed-use developments in order to promote the development underutilized land that is appropriately zoned of residential uses along mixed use corridors 2.1 Provide developers with an inventory of sites with a Encourage a mix of housing design types. wide range of densities that allows a variety of product types. 2.2 Utilize the Central Petaluma Specific Plan to facilitate— Encourage a mix of housing design types. the development of rental and live/work units in the downtown, e.g., high density housing, relaxed parking requirements, requiring of on-site inclusionary units. 2.3 Ensure that the Development Code update defines AUo`v flexibility within the City's standards and transitional and supportive housing as residential uses, subject regulations to encourage a variety of housing only to those restrictions on residential uses contained in each types. respective zone. _ 3.1 Review and identify th development standards at may Review and adjust city residential development be a constraint on the development of housing and amend the standards that are determined to be a constraint Development Code accordingly. on the development of housing. The Central Petaluma Specific Plan parking requirements are lower than the rest of the City. Ongoing. Continue A site inventory is available upon request. The site inventory is also on the city's website. Continue The CPSP was adopted in 2003 and is the main planning tool for the downtown. The economic downturn resulted negligible new development activity through 2013. Continue The Development Code update is in progress and will be completed prior to adoption and certification of the 2015-2023 housing element. In process On hold due to limited staff. Continue 3.2 Ensure that the Development Code update identifies Review and adjust city residential development The City is in the process of identifying a zone the "i\lixed Use" and "Civic Facilities" zones as permitting standards that are determined to be a constraint permitting emergency shelters without a emergency shelters without a Conditional Use Permit or other on the development of housing Conditional Use Permit or other discretionary discretionary action. action and will be completed prior to adoption and certification of the 2015-2023 Housing Element. In process Appendix B — Review of Previous Housing Element 1 3.3 Adopt procedures and standards for density bonuses Improve the city review and approval process for A review and modification of the City's and other incentives required by state lav to facilitate the residential projects municipal density bonus incentives is in review and approval of projects proposing affordable housing process and will be completed prior to adoption and certification of the 2015-2023 Housing Element 3.4 Continue to subsidize and defer application fees, Improve the city review and approval process for Ongoing development impact fees, and on- and off-site improvements residential projects for affordable housing projects 3.5 Continue to give priority processing to affordable Improve the city review and approval process for City staff provides technical assistance to housing projects residential projects potential affordable housing developers in regards to funding applications, i.e. HOME 3.6 Adopt residential design guidelines for single- and Improve the city review and approval process for On hold due to staff limitations. multi -family development that provides clear guidance with residential projects regards to design standards for applicants 3.7 Provide continuing professional education for Improve the city review and approval process for Incomplete due to budget limitations. public officials and decision makers to improve skills in such residential projects areas as project evaluation and the conduct of public hearings 3.8 Actively participate in the Sonoma Count}' \Vater Agency's project to increase the capacity of the Citv's water supple system in order to secure a safe, reliable imported water suppl}' 3.9 Actively participate in the Sonoma County NN'ater Agency's planning for a second Petaluma Aqueduct to influence the aqueduct alignment, capacity, and construction details to best reinforce the distribution system 4.1 Continue to ensure that at least 30 `%of all dwelling units developed by the Petaluma Community Development Commission (PCDC) are affordable to low- or moderate - income households, and that not less than 50 `% of these are affordable to veru low-income households. Ensure that at least 15 percent of all dwelling units developed in the redevelopment project area by public or private entities or persons other than the agencv are affordable to low- or moderate -income households, and that not less than 40 °/, of these arc affordable to very low-income households. Continue to allocate 100 °/, of the Low/Moderate Income Housing Fund to housing projects within the city MCEMEMOMM Improve the city review and approval process for Ongoing by Dept. of Public Works and residential projects Utilities (previously Water Resources) staff. Improve the city review and approval process for Department of Public Works and Utilities residential projects personnel continued to work with the County on this project. Make the maximum use of resources available for PCDC became irrelevant following the the provision of housing affordable to extremely 12/29/2011 dissolution of CA Redevelopment low (ELI) to moderate -income households Agencies. This funding is no longer available. Program discontinued. In process Continue Continue Continue Continue Continue Continue Delete 4.2 Continue to work with other agencies to receive a Make the maximum use of resources available for reasonable share of federal, state and private funding for the provision of housing affordable to extremely housing low (ELI) to moderate -income households 4.3 Continue to work with non-profit housing Make the maximum use of resources available for organizations to benefit from their expertise in and resources the provision of housing affordable to extremely for developing and supporting affordable housing low (ELI) to moderate -income households 4.4 Continue to require residential projects of five or more units to contribute to the provision of below-market rate housing in one of the following ways: a. Within a half -mile radius of the planned SMART stations, the developer shall provide at least 15 percent of the units in a rental housing project at rents affordable to very low- and low-income households and 15 percent of the units in a for -sale project at prices affordable to low- and moderate - income households for a minimum period of 30 Fears. b. Dedicate a portion of the project site or property elsewhere to the Cite or a non- profit organization for use as a site for affordable housing. This option is allowed only if the Cite or a non-profit agency has a pending project. C. `When the project is non -transit oriented, the developer can make an in -lieu payment to the City's Housing Fund. d. Use alternative methods to meet the intent of the inclusionaty requirement, subject to approval by the City Council. 4.5 Continue to implement the Commercial Linkage Fee Program Appendix B — Review of Previous Housing Element Assign a share of the responsibility for providing affordable housing to the developers of market - rate housing and non-residential projects The City Housing Division works collaboratively with all public, private and nonprofit housing agencies to pursue all funding possibilities. The loss of redevelopment set-aside has hindered our historic leveraging capability. See above. During the current Housing Element period, 189 units were built that provided housing for low income persons and persons with disabilities. Although this is far below our RHNA numbers, it is a great accomplishment considering we lost our RDA funding 3 years into the planning period. A language change is being made to (a) from "shall" to "encourage" to provide flexibility on a case by case basis. Assign a share of the responsibility for providing Regency Shopping Center resulted in revenue Continue Continue Modifv affordable housing to the developers of market- of approximately $833,000/a portion of Deer Continue rate housing and non-residential projects Creek $400,000 which will be utilized for affordable housing projects and/or programs. 4.6 Continue to support the Mortgage Credit Certificate Facilitate the entry of low- and moderate -income Housing staff coordinates with the County and Program administrated by the Community Development households into the housing market other jurisdictions on the county -wide MCC; Commission of Sonoma County program. 5 certificates were issued in Petaluma in 2009-2014. 4.7 Reinvent the First -Time Homebuyer Assistance Facilitate the entry of low- and moderate -income Housing staff worked with the Housing Program aimed at low- and moderate -income households households into the housing market Land Trust to construct 26 homes and administer the City's homeownersNp program. 5.1 Continue to administer the Mobile Home Rent Preserve the affordability of the City's existing Stabilization Ordinance affordable housing stock 5.2 Deny conversions of rental apartments to condominiums if the proposed conversion significantly diminishes the existing supply of rental units or threatens to lower the rental vacancy rates within Petaluma 5.3 Impose resale controls or rent restrictions on all units that receive state housing density bonuses and other incentives for not less than 30 vicars 5.4 Continue to impose long-term resale controls or rent restrictions on affordable units provided through the inclusionary housing program or city subsidies to ensure that they remain affordable to the targeted income groups 6.1 Continue to support the Petaluma People Services Center (PPSC) Homeless Prevention Program, including the Mediated Assistance Program and the Renters Assistance Program 6.2 Continue to support the Mary Isaak Center 6.3 Continue to support the COTS Family Center Preserve the affordability of the City's existing affordable housing stock Ensure the long-term affordability of units developed or provided with City assistance. Ensure the long-term affordability of units developed or provided with City assistance Support efforts to prevent homelessness — Support efforts to provide housing and support services for the homeless Support efforts to provide housing and support services for the homeless Housing staff works in cooperation with SCCDC to administer the City's ordinance, which assists 317 mobile home park residents under the Rent Stabilization Ordinance. No condominium conversions proposed in 2009-2014. Ongoing Ongoing Ongoing PPSC has helped over 390 households with assistance and received over 30,000 requests for rental assistance. Substantial funding decreases due to dissolution of redevelopment agency. Ongoing as funding allows. The Mart* Isaak Center has sheltered over 500 persons annually with over 37/o exiting into housing. Ongoing as funding allows. The Family Center moved to the Mary Isaak Center in 2011. 30 Families are served annually with 75% of those families exiting to housing. Appendix B — review of Previous Housing Element 4 Continue Continue Continue Continue Continue Continue Continue Continue Continue 6.4 Continue to support the Salvation Army's Petaluma Support efforts to provide shared and transitional Area Transitional Housing program housing to those moving from homelessness to independent living 6.5 Continue to support the ongoing maintenance of Support efforts to provide shared and transitional COTS family transitional homes located throughout the housing to those moving from homelessness to community independent living 6.6 Continue to support the ongoing maintenance of a Cite -owned four-bedroom house on Rocca Drive, leased and operated by the Vietnam Veterans of California serving homeless male veterans who are enrolled in the Agency's Employment and Training Program 6.7 Continue to participate in the Countywide Continuum of Care planning process as a "lead agency" along with the Santa Rosa and the County of Sonoma 6.8 Continue to support the construction of senior housing Support efforts to provide shared and transitional housing to those moving from homelessness to independent living Support efforts to provide shared and transitional housing to those moving from homelessness to independent living _ Promote the construction and maintenance of housing for seniors 6.9 Continue to support the "Rebuilding Together — Promote the construction and maintenance of Petaluma" (RTP) program housing for seniors and disabled 6.10 Continue to support the Disability Services and Legal Promote the construction and maintenance of Center program to remove physical barriers in homes occupied housing for seniors by persons with a disability, many of whom are elderly 6.11 Continue to require the inclusion of disabled - accessible units in projects that receive city assistance 6.12 Support the construction of housing specifically designed for persons with a developmental, mental, or emotional disability Appendix B — Review of Previous Housing Element Promote the provisions of disabled -accessible units and housing for developmentally, mentally and physically disabled Promote the provisions of disabled -accessible units and housing for developmentally, mentally and physically disabled Through 2010, the Salvation Army had helped 15 families with their program. Due to loss of redevelopment funding, the City can no longer fund this program. Delete COTS has housed 96 homeless people through their transitional program. The Cite leases to COTS 4 houses for this program. This program will be modified from families to singles. Modify Vietnam Vets has 4 veterans in the Rocca Drive property. Maintenance of the house is funded on an as needed basis. Continue All new construction follows federal and state requirements for accessibility and/or adaptability for disabled persons through the local processes. 16 units for disabled persons were included in new affordable housing properties — Logan, Iiellgren and Vintage Chateau 11. Continue Continue Ongoing. Staff is on the Continuum of Care Board and participates monthly in all meetings. Continue Since the last Housing Element, there have been 116 units of senior housing built. Ongoing. Although funding projects will be more problematic in the future. Continue Rebuilding Together Petaluma rehabs between 20-25 houses for low income persons annually. Over 200 properties were rehabbed during the last Housing Element. Continue This program was not funded due to loss of redevelopment funds. DSLC is partnering with Rebuilding Together to serve the disabled population with CDBG funds. Delete Ongoing Continue All new construction follows federal and state requirements for accessibility and/or adaptability for disabled persons through the local processes. 16 units for disabled persons were included in new affordable housing properties — Logan, Iiellgren and Vintage Chateau 11. Continue 6.14 Continue to require apartment projects that receive Promote the construction of rental units for larger city funding to include units with more than two bedrooms families 7.1 Continue to refer fair housing complaints to the Discourage discriminatory housing practices Mediation Assistance Program administered by the Petaluma People Service Center 7.2 Initiate actions to address any fair housing issues or Discourage discriminator- l housing practices constraints on housing for the disabled identified by the 2008 Fair Housing Audit and the Analvsis of Impediments, including removing the constraints or providing reasonable accommodation for housing intended for persons with disabilities 8.1 Continue to support the "Rebuilding Together — Promote the maintenance of existing residential Petaluma" program units 9.1 Continue to address the potential impacts of such projects on surrounding neighborhoods during the design review and approval process 9.2 Continue to work with the managers of affordable and special needs housing projects to minimize potential impacts on surrounding neighborhoods 10.1 Continue to evaluate residential projects for consistency with Section 66473.1 (Energy Conservation) of the Subdivision flap Act during the development review process 10.2 Continue to require the planting of street and parking lot trees as part of residential projects to provide cooling during the summer months MUEMSMUMM Minimize the impacts of affordable and special needs housing projects on existing neighborhoods Minimize the impacts of affordable and special needs housing projects on existing neighborhoods Promote the use of energy conservation features in the design of residential development Promote the use of energy conservation features in the design of residential development Logan Place a 66 -unit affordable complex, completed in 2013, includes 27-3 bedroom units . This program is ongoing Continue Ongoing. PPSC has served over 1,000 low income residents with Tenant/landlord problems. Outreach, education and mediation all our services to discourage discriminatory practices. Continue The City of Petaluma, in coordination with the Cite of Santa Rosa and the County of Sonoma has completed an Analysis of Impediments in 2012 as required by HUD. Continue Petaluma's Code Enforcement staff continue to identity unsound or deteriorating housing conditions for possible rehabilitation. CDBG funds are used to support Rebuilding Together. Continue The addition of our 33 affordable communities in any neighborhood has always proven to be positive. Continue See above Continue Petaluma has adopted the State's Green Building Code, CA Green, including Tier 1 requirements. Continue Petaluma has adopted the CA Green Tier 1, as well as Site Plan and Architectural guidelines for this program. Continue ?j � 4r t 1 � � ,. y y Affordable HousingAchievements PROJECTS: CONSTRUCTION OF AFFORDABLE HOUSING through 2014 Daniel Drive Apartments 5 Very Low Nilson Street I 10 Very Low Lindberg Lane Senior 12 Very Low Apartments 4 Low Wilson Street II 6 Very LOW Madrone Village 23 Very Low Magnolia Hills 32 Low/Mod (FTHB)Self--Help 5335,000 Madison Manor 8 Low/Mod FTHB 1991 Cherry Hills 155,000 Townhomes 29 Low/Mod Mountain View Senior 16 VI. Senior Apts. 4 Disabled CDBG 4 Low -Senior Caulfield Lane Senior 22 Very= Low Apts. Senior Hillview Oaks 30 Low / Townhomes Moderate Washington Creek 32 Very Low / Apts. Low Corona Ranch 74 Very Low / Hsg Fund Low Corona Crescent 16 Low / LIHTC Moderate Park Lane Apartments 90 Very Low Land Don. /Low Vallejo Street I Senior 44 Very Low / Apts. Low Senior Appendix C — Affordable Housing Achievements Units Donated CDBG Units Donated CDBG Hsg Fund LIHTC-9 Hsg Fund CDBG $50,000 PEP 585,000 PEP 1980 1984 $590,000 PEP 1986 5335,000 PEP 1988 $250,000 1991 CDBG 155,000 Burbank 1988 5140,000 Burbank 1988 $120,000 Burbank 1990 Hsg Fund $580,000 Burbank 1991 Hsg Fund 674,000 PEP 1991 CDBG 155,000 Hsg Fund 400,000 PEP 1992 CDBG 124,500 LIHTC Land Don. 500,000 Burbank 1992 Hsg Fund 150,000 Hsg Fund 320,000 Eden 1993 LIHTC Land Don. 720,000 Eden 1994 LIHTC-9 Land 80,000 Eden 1994 Donation Hsg Fund HUD -Title 6 $295,000 Burbank 1994 Hsg Fund 851,800 PEP 1994 LIHTC-9 1 Wisteria 28 Low / Moderate Round Walk Village 129 Very Low / Apts. Low Sunrise of Petaluma 15 Very Low / Sr. Apts. Low Senior — Vallejo Street II Senior 40 Very Low / Apts. Low Senior Salishan Apartments 13 — Very low — Hsg Fund disabled Vintage Chateau Senior Apartments Edith Street Senior Apartments Old F_.1m Village 240 Very- Low And Low Land Don. 1,100,000 Burbank 1996 Hsg Fund 250,000 Apartments HUD 202 BEGIN 280,000 Hsg Fund 1,331,600 Burbank Hsg Fund 933,000 Burbank 1996 CDBG 110,000 Downtown River LIHTC-9 HOME 930,500 Eden 2005 LIHTC-4 and Low income HOME Fund 3,466,000 Bond Issue Private 1997 Hsg Fund 532,900 PEP 1998 LIHTC-9 2 — Low Hsg Fund $75,000 Hsg Fund 368,380 NBRS 1999 CDBG 45,000 HUD 811 14 — Very low Land Don Hsg Fund $10,000 USA Prop 2000 22 — Very low- Hsg Fund 890,000 PEP Seniors HOME funds 340,000 Apartments HUD 202 HOME funds 87 — Very Low Hsg Fund 1,331,600 Burbank and Low Income CDBG 349,500 HO.tilE 800,000 Downtown River LIHTC-9 Hsg Fund 2001 2001 Richard S. Lieb Senior 22 — Very low — Hsg Fund 885,000 PEP 2004 Apartments seniors HOME funds 797,050 HUD 202 Downtown River 80 — Very Low Hsg Fund 3,662,000 Eden 2005 Apartments and Low income HOME Fund 3,466,000 LIHTC - 4 Me Dowell Blvd. 2 — Low Hsg Fund $75,000 PEP 2006 Duplex Boulevard Apartments 14 — Very low Land Don Buckelew 2006 income for Hsg Fund 480,200 Programs mentally disabled HUD 811 Frates Square 26 — Moderate Land Delco 2007 Income Donation Bldrs and Housing Land Trust Residential Sites Inventory Analysis 2 Casa Grande Senior /Apartments Vintage Chateau II Logan Place Apts Kellgren Senior Apts Total 57 — Very low and Hsg Fund low income- HOME seniors HUD 202 LIHTC-4 67 — Very Low Hsg Fund and Low income LIHTC-4 seniors (55+) 65 ELI, Very Low Hsg Fund and Low income HOME family rental MHP LIHTC-4 49 Very low and Hsg Fund low income senior HUD 202 LIHTC -4 1,417 units 1,664,000 3,950,000 PEP 2009 4,500,000 USA Prop 2012 3,650,000 Burbank 2013 4,000,000 Housing 6,000,000 1,600,000 PEP 2014 3 Appendix C — Affordable Housing Achievements PROGRAMS: FIRST-TIME HOMEBUYERS ASSISTANCE: Silent Second Mortgage- FTHB Mortgage Credit Certificate Second Mortgages CONSERVED UNITS: Park Lane Apartments Valley Orchards Sr. Apts 210 Housing Fund 1 $12,059,358 N/A Low/Mod 150 Low / Housing Fund $ 10,000 N/A Mod. 18 Housing Fund $376,000 N/A Low/Mod 1988 -On- going 1991 -On- going 1991-1998 90 Very Housing Fund $295,000 1 Burbank 1994 Low Tax Exempt Bonds 20 Low N/A N/A Private 1993 Senior Residential Sites Inventory Analysis 4 Homeless/Transitional 15 Housing Shelter — Families beds/night Fund 32 Trans. Hsg beds Homeless/Transitional 100 Housing Shelter — Singles - MIC beds/night Fund 41 Trans. Hsg beds Rental Assistance Programs 200 Hsg Fund hholds/yr. CDBG Housing Rehabilitation - 35 hholds/yr. CDBG Low, moderate, senior and disabled M. Home Rent 317 units Hsg Fund Stabilization under the ordinance Fair Housing 250 persons Hsg Fund annually Meal Program for seniors 212 persons CDBG annually Boys and Girls Club of 250 persons Hsg Fund Petaluma annually I Appendix C — Affordable Housing Achievements allows 100,000/yr COTS as funding allows On-going 141,500/yr PPSC On-going as funding allows 200,000/yr Rebuilding On-going as funding Together allows Self- On-going sustaining 50,000/yr. PPSC On-going as funding allows 53,000/yr PPSC On-going as funding allows 400,000 as B&GC On-going funding allows . . . . ...................................................................................... . . . . . . ........................................... . ...... ..................................................................... ...................................................................................... . .................... . . ........ . . . . . . . . . .. . . . .................................................................................... . . . ............................................................................................................................................................ ................................................................................................................................................................. . .................... . . Assisted Housing COMMUI-litieS R = Rental HO = Horne Ownership HS = Homeless Shelter City of Petaluma, California JIM: jjj,�-11 rill p Ipc h I w, A a L LJtl %kI L,L A6 L, IqI I R = Rental HO = Horne Ownership HS = Homeless Shelter �. 4S i 5$ i APPENDIX E RESIDENTIAL SITES INVENTORY ANALYSIS City of Petaluma May 2014 Backeround In 2013 the Association of Bay Area Governments and the Metropolitan Transportation Commission released Plan Bav Area, a 25 -year integrated vision for transportation, housing and jobs including the 2015-2023 Regional Housing Needs Allocation (RHNA) for all Bay Area jurisdictions. The City of Petaluma's portion of the regional housing need was assigned as a total of 745 new housing units in the following categories: 199 Very Low -Income Units 103 Low -Income Units 121 Moderate -Income Units 322 Above Moderate -Income Units 745 Total Units This site inventory analysis has been conducted to meet the requirements of Government Code Sections 65583 and 65583.2, requiring a parcel -specific inventory of lands suitable for residential development within the income categories outlined above. The inventory focuses on projects built since the beginning of the baseline Regional Housing Needs Allocation (January 1, 2014), current residential development proposals, and an assessment of vacant and underutilized sites appropriately designated and zoned for residential development. The City of Petaluma General Plan 2025 included a comprehensive, parcel -specific review of land use and infrastructure capacity and serves as the foundation for this analysis. The inventory provides a list of sites by Assessor Parcel Number (APN), including general plan land use classifications and zoning that represent development opportunities within the planning period. For each site an evaluation of development standards, existing constraints, and infrastructure and service availability was conducted in order to derive a realistic development capacity. The City's land inventory was developed using a variety of resources including Geographic Information System (GIS) datasets, Sonoma County Assessor data, field surveys, a review of adopted planning documents, and a review of recently approved and pending projects. This study focuses on lands designated as residential or mixed use and that are either vacant or significantly underutilized. The inventory does not include parcels designated for non-residential development as the City's General Plan established adequate sites for residential development. The inventory focuses on those sites with the potential for 5 or more units within the City's Urban Growth Boundary and the sites identified are located geographically throughout that area. Additional residential development potential, not included in this analysis, exists through smaller infill projects. The site inventory contained in Attachment I was assembled in May 2014 and represents a snapshot of potential residential development at that time. The sites identified by number correspond to those identified on the attached map exhibit (Attachment 2). Key Sites for Affordable HousinLy Projects The tables/analyses below focus on key sites from the inventory (Attachment 1) that represent the greatest potential for affordable housing and are divided into the following three categories: approved, proposed, and vacant or underutilized sites. Approved Housing Projects: Units which have been issued finals on or after January 1, 2014, may be credited against the RHNA to determine the balance of sites that must be identified. Table 1 below lists residential projects built, under construction, and/or approved since January 1, 2014. Table 1: Residential Units — Built, Under Construction and/or Approved Total Site # Total Units by Income Level Methodology of # Project Name Status Units VL L M AM Affordability Determination 5 The Birches (Yarberry) Appr. 22 0 0 0 22 Ant. Sales Price 6 Kellgren Senior Apts. Built 50 49 0 1 0 Rent Price 7 McDowell Townhomes Appr. 35 0 0 0 35 Ant. Rent Price 35 Quarry Heights Constr. 172 0 0 0 172 Ant. Sales Price 47 Sunnyslope II Appr. 21 0 0 0 21 Ant. Sales Price 49 Pinnacle Ridge Appr. 11 0 0 0 11 Ant. Sales Price 50 Maria Drive Apartments Appr. 144 0 0 0 144 Ant. Rent Price TOTAL 455 49 0 1 405 As shown in the table above, progress has already been made toward fulfilling the housing need for each category. Most notably, the above moderate need has already been met for the planning period. Consequently the remainder of the site inventory analysis will focus only on those sites likely to accommodate affordable housing based on current affordable housing proposals or sites with land use classifications most suitable for affordable housing. Proposed Affordable Housing Projects: A few affordable housing projects are currently in the works. Two of the sites have been purchased by non -profits for future affordable housing projects and are included in Table 2 as anticipated future affordable housing. Table 2: Proposed or Anticipated Projects Site Project Name Status Total Ownership Anticipated # Units Affordability 30 PEP — Haystack MU Antic. 31 Nonprofit ELI, LI 33 951 Pet. Blvd South Prop. 50 Nonprofit ELI, LI TOTAL 81 Vacant and Underutilized Sites: The survey set out to identify all vacant and underutilized parcels with residential potential within the study area. While vacant parcels were readily identified, the identification of underutilized parcels was more subjective. Vacant lands are defined as parcels that are vacant or May 2014 Residential Sites Inventory Analysis 2 have very minor structures or outbuildings. Underutilized sites are defined as parcels with existing uses not developed to the greatest potential of the General Plan 2025 and Implementing Zoning Ordinance; those containing nonconforming uses; and/or sites having significant redevelopment potential. Examples of underutilized sites include large residential parcels with potential for additional units and aging commercial centers now designated as mixed use that exhibit redevelopment potential with a combination of residential and commercial uses. For each identified site, suitability for development was determined by evaluating overall site potential, potential for consolidation of adjacent lots, location and extent of uses on each lot, condition of existing uses if any, consideration of conforming and nonconforming uses, status of existing uses (operating or non-operating), and any expressed interest by property owners or developers to develop those sites. Sites classified as High Density Residential or Mixed Use and that are vacant or largely vacant represent the greatest potential for development of affordable housing to very low- and low- income households. The High Density and Mixed Use classifications allow densities of up to 30 du/acre and 60 du/acre respectively. Per Section 65583.2(c)(3)(B) of the Government Code, the City's land use and zoning are consistent with the standard of 20 du/acre for suburban jurisdictions and thus these sites are considered appropriate for accommodating affordable housing and are the primary focus of this study. These sites are included in Table 3 below. All sites analyzed for residential potential can be found in Attachment 1. Table 3: Vacant and Underutilized Sites Site # Project Name Status Total Units 2 Brody Ranch Underutilized 300 3 Drew Property 1 Underutilized 105 4 Drew Property 2 Underutilized 75 12 Baywood Equities Vacant 100 13 Baywood LLC Vacant 250 19 Ravenscroft Properties Underutilized 50 24 Trautwein Property Vacant 10 25 Old Silk Mill Underutilized 30 29 Golden Eagle Underutilized 250 31 SMART Property Vacant 170 32 Lind et al. Properties Vacant 75 36 South Petaluma Part. Vacant 45 37 Wind River Part. Underutilized 40 38 Royal Petroleum Underutilized 35 39 State of California Underutilized 30 41 Husary Property Underutilized 35 TOTAL 1,600 Note: This table contains key sites to accommodate low- and moderate- income housing. Attachment 1 contains an inventory of all vacant and underutilized residential sites analyzed. May 2014 Residential Sites Inventory Analysis 3 Summary of Suitable Affordable Housing Sites: As demonstrated in the above Tables (1 thru 3) Petaluma has sufficient sites to meet its fair share of the Regional Housing Needs Allocation. Table 4 below compares the RHNA to the site inventory analysis. In order to estimate the number of units by income level, staff assigned a percentage to each income category based on the overall RHNA numbers, multiplied that percentage by the total potential in Tables 2 and 3, then added that potential to the number of units built/approved in order to arrive at the total site inventory capacity by income group. Staff recognizes that this distribution will vary on a project by project basis, but until such time as projects are proposed, this methodology offers a consistent assumption for estimating future affordable housing potential. Table 4: Comparison of RHNA and Residential Site Capacity Income Group Total RHNA as Units Built/ Additional Potential Site Inventory RHNA % of Total Approved Based on RHNA % Capacity Very Low 199 26.8% 49 451 500 Low 103 13.8% 0 232 232 Moderate 121 16.2% 1 272 273 Above Moderate 322 43.2% 405 726 1,131 Total 745 100% 455 1,681 2,136 General Plan Classifications/Zoning to Accommodate Affordable Housing The Petaluma General Plan 2025, adopted in May 2008, established eight residential land use classifications including, mixed use and mobile homes, to provide for a full range of housing types. Residential density is expressed as a minimum and maximum number of housing units per net acre (that is, exclusive of existing and proposed public streets and other vehicular rights-of- way). Development regulations and or site conditions may reduce development potential within the stated ranges — for example steep slopes, floodplains, designated setbacks and other standards may limit maximum attainable densities. Adopted in June 2008, the Implementing Zoning Ordinance carries out the policies of the Petaluma General Plan by classifying and regulating the uses of land and structures within the City, consistent with the General Plan. Providing consistency between land use and zoning facilitates residential development by eliminating the need for costly and time consuming general plan amendments or rezoning. The Central Petaluma Specific Plan (CPSP) is incorporated by reference into the adopted General Plan 2025. Lands within the CPSP area are regulated through the SmartCode" ' rather than the Implementing Zoning Ordinance. The SmartCode© is a form -based zoning code with an emphasis on the physical relationships between people, buildings, and public spaces. The SmartCode was updated as part of the Petaluma SMART Rail Station Areas: TOD Master Plan adopted in June 2013. The CPSP covers approximately 380 acres of mostly underutilized land immediately east of and adjacent to the City's historic downtown core. The intent of the plan is to redirect development from the fringes of the City to the central core; accommodate greater diversity and intensity of development and activities; and give the area identity and interest. To that end, the plan calls for mixed use development with residential densities up to 60 units per acre; building heights up to 6 stories; limited and flexible parking requirements; and May 2014 Residential Sites Inventory Analysis 4 opportunities for multi -modal transportation options; including a station site on the SMART rail corridor and the City's bus transit mall. The City of Petaluma is considered a suburban jurisdiction. Government Code Section 65583.2(c)(3)(B) states that sites allowing at least 20 units per acre are deemed appropriate to accommodate housing for lower income households. In Petaluma, sites classified as High Density Residential or Mixed Use meet this definition. Realistic Development Capacitv A utilization rate was assigned to each of the land use/zoning categories. The utilization rate reflects the observation that few parcels are built to their maximum potential. The goal of this inventory is to present a realistic assessment of future development potential as opposed to maximum buildout. The utilization rates reflect observed patterns and emerging trends. Lower density residential sites typically develop at close to their maximum intensity, for these sites a utilization rate of 90% was selected to reflect right-of-way dedication. Higher density sites, often due to regulatory or physical constraints, are typically built to less than the maximum allowed. An evaluation of recently completed residential projects within the Corona -Ely Specific Plan Area resulted in the selection of 80% as a utilization rate for medium to high density residential. Mixed Use sites fall into two categories — those within the Central Petaluma Specific Plan Area (CPSP) allowing for up to 60 units per acre and those outside the CPSP which allow for a maximum of 30 units per acre. An analysis of several recent projects within the CPSP area revealed densities in the range of 31 to 45 units per acre and an average density of 38 units per acre or a utilization rate of around 60%. With the exception of one of the projects in Table 5 all of the projects evaluated within the CPSP included commercial uses integrated into the project (vertical mixed use). Within the CPSP area, when residential units are combined with office or retail commercial uses, in a single building or on the same parcel, the maximum density allowed by the applicable zone is calculated on the basis of the total area of the parcel. Outside the CPSP area Mixed Use tends to reflect a wide range of uses spread horizontally along arterial corridors with diversity of uses across parcels rather than within single parcels. In these mixed use areas parcels may develop as only residential with a conditional use pen -nit and would be limited to a maximum of 30 units per acre, similar to the High Density Residential land use category. Table 5 provides a sample of buildout capacities for several recent Mixed Use projects in Petaluma. May 2014 Residential Sites Inventory Analysis 5 Table 5: Sample of Mixed Use Buildout Capacities Project Acreage Maximum Constructed/ Actual Density Density Approved Units Projects within the CPSP area. Downtown River Apts. 2.21 60 81 36.7 Basin Street Landing 1.10 60 43 39.1 Rivertown Court 1.38 60 56 40.6 Waterfront Apts. 2.87 60 90 31.4 Celsius 44 1.43 60 44 30.8 Water Street North 2.40 60 107 44.6 Average 37.2 Projects Outside the CPSP area. Old Elm Village 5.0 30 88 17.6 Park Square (Azure) 5.8 30 154 26.6 Park Central 8.3 30 240 28.9 Lieb Senior Apts. .84 30 23 27.4 Salishan Apts. .35 30 13 37.1 Boulevard Apts. .90 30 14 15.5 Average 25.5 Table 6: Utilization Rates for Residential Land Use Categories Residential Land Use Category Utilization Rate Rural Residential (0.1-0.6 hu/ac) 90% Very Low Density Residential (0.6-2.5 hu/ac) 90% Low Density Residential (2.6-8.0 hu/ac) 80% Diverse Low Density Residential (6.1-12.0 hu/ac) 80% Medium Density Residential (8.1-18.0 hu/ac) 80% High Density Residential (18.1-30.0 hu/ac) 80% Mobile Homes (8.0-18.0 hu/ac) 80% Mixed Use (up to 30 hu/ac) 80% Mixed Use within CPSP (up to 60 hu/ac) 60% Second Units Consistent with State law, Petaluma allows for second units in all single-family residential zones providing height, setbacks, floor area, and parking requirements can be met. Construction of accessory dwellings over the past five years has averaged around 5 units per year. At this rate, approximately 40 more second units could be projected over the course of the planning period. While Government Code Section 65583.1 allows the City to apply second units toward its May 2014 Residential Sites Inventory Analysis 6 adequate sites requirement, the City has not chosen to do so as not enough information is known as to the occupancy or rents of such units. Potential Development Constraints Water/Wastewater: Water and wastewater in Petaluma have become inextricably linked. The City of Petaluma's primary source of water is Russian River water purchased from the Sonoma County Water Agency (SCWA). Regulatory and environmental issues have delayed the SCWA's expansion of its water transmission system, limiting the amount of water the SCWA can provide. The City completed an analysis of water supply and demands based on buildout of the General Plan 2025 and compared them to the available SCWA supply. The analysis showed that projected demands exceed the amount of water the SCWA can provide based on current agreements. In response, the City completed the Water Supply and Demand Analysis Report (June 2006) establishing a long-term plan that increases the use of recycled water to offset potable water use, greatly expands water conservation programs, and includes a moderate use of groundwater to meet increasing potable water demands through 2025. The City's Ellis Creek Water Recycling Facility (WRF) replaced the City's aging wastewater treatment plant. All of Petaluma's wastewater is now conveyed to this new facility. The facility has been designed to handle future wastewater demands through the buildout of the General Plan 2025 and beyond. The WRF is capable of providing up to 5.4 million gallons per day of tertiary recycled water that will be reused for a variety of applications such as pasture, edible crops, vineyards, golf courses, playing fields, parks and at the WRF itself. If needed, the system can be expanded to process as much as 6.7 mgd of recycled water. Flooding: Flooding has taken place in the City, to the extent that at least some street flooding occurs, on average once per year over the past twenty or so years. Recent significant flooding events (meaning street and property flooding) have occurred in Petaluma in 1982, 1983, 1986, 1995, 1996, 1998, and 2005. The largest flood of record in the City of Petaluma occurred from January 3 through 5, 1982. The last significant flood event occurred on December 30-31, 2005, over- taxing both piped and open channel systems. Floods in the Petaluma River Basin are normally of short duration, lasting 3 to 4 days, or less. Tributaries of the Petaluma River can begin to rise within hours after a heavy storm event has begun if antecedent soil moisture content is already high. Typically floods occur between December and March. Including the Petaluma River, there are approximately 18 miles of channels that have been studied in detail by the Federal Emergency Management Agency (FEMA) within the City. Based on the historic records of flood events and the detail to which streams have been studied and floodplains delineated within the City by FEMA, it is clear that flooding is a significant problem. May 2014 Residential Sites Inventory Analysis 7 Policies detailed in Water Resources Element (Chapter 8) of the Petaluma General Plan 2025 reduce exposure to flood hazards by: excluding new inhabited structures in the portion of properties containing areas of water depths exceeding one foot during a 100 -year storm event; requiring elevation of structures two feet above the base flood elevation in areas with less than one foot of water during a 100 -year storm event; and a prohibition of first floor residential within the regulatory floodplain. Topography: Overall the City of Petaluma is relatively flat with the exception of the City's western and southern edges. The most common type of ground failure in Sonoma County is landslides, the downslope movement of soil and rock debris. Landslide susceptibility is a function of several factors, including earthquake -induced ground shaking, rainfall conditions, rock and soil types, steepness and orientation of slope, bedrock orientation, vegetation, and human disturbance (i.e., road cuts, grading, construction, removal of vegetation, and changes in drainage). General slope instability determinants can be based on the fact that landslides occur most often on slopes steeper than 15 percent in Petaluma's hillsides, in areas with a history of land sliding, and in areas underlain by geologic units that have demonstrated stability problems in the past. The General Plan 2025 designates areas of steep topography with rural to low density land use categories to allow for clustering or other means of addressing/avoiding steep slopes. With no high density housing in these areas, topography related issues are unlikely to represent an impact to affordable housing. Biological Resources: The biological resources planning area includes all lands within Petaluma's Urban Growth Boundary (UGB). Within the UGB, most of the land in the lower reaches is developed and urbanized. Areas along the Petaluma River and its tributaries, however, provide valuable habitat for several special status plant and animal species, as do grassland and oak savannah habitats along the south and western portion of the UGB. Appropriate mitigation measures to reduce impacts to sensitive habitats and special status species would be imposed on a project -by -project basis according to Petaluma's environmental review process and consultation with appropriate State and federal regulatory agencies. Noise: Future development within the city's Planning Area will result in new roads and increased traffic volumes, thus increasing noise levels in some areas. Continued growth and congestion on the Highway 101 corridor has led to plans to expand the highway to six lanes. Increased traffic volumes on the highway will result in increased noise exposure for all adjacent development. Additionally, continued growth of the cityresidential as well as commercial and industrial uses—will further increase traffic and noise levels on arterial roadways both leading to and crossing over Highway 101. Sensitive receptors along Washington Street, Petaluma Boulevard, Lakeville Highway, and McDowell Boulevard will be impacted by increased noise exposure. Housing in these areas would require incorporation of mitigation measures to ensure that interior noise levels do not exceed 45 db CNEL. May 2014 Residential Sites Inventory Analysis 8 Summary/Conclusion: The General Plan 2025 and accompanying Environmental Impact Report provide policies and mitigations to address identified constraints. The EIR is a program EIR that examines the potential effects resulting from implementing designated land uses and policies proposed in the General Plan 2025. The impact assessment evaluates the General Plan as a whole and identifies the broad, regional effects that may occur with its implementation. As a programmatic document, the EIR does not assess project -specific impacts. At the program level, development is feasible for all of the sites identified in the attached inventory. Any future development project will be subject to individual, site-specific environmental review, as required by State law. May 2014 Residential Sites Inventory Analysis 9 City of Petaluma Residential Land Inventory - 2014 Site l APN Name General Plan Land Use Classification Zone Density Acres Capacity Existing Land Use 1 I 137061009 Corona Road Subdivision Very Low Density/Low Density Residential CNTY 0.6-2.5/2.6-8.0 hu/ac 5.63 32 Residential (1 unit) Yes 137061011 Corona Road Subdivision Very Low Density/Low Density Residential CNTY 0.6-2.5/2.6-8.0 hu/ac 4.35 Vacant 2 137061040 Brody Ranch Medium/High Density Residential R4 and R5 8.1-18.0/18.1-30.0 hu/ac 15.93 300 Light Industrial & Residential (2 units) 3 137061019 Drew Property 1 Mixed Use MU18 0.0-30.0 hu/ac 7.02 105 Light Industrial 4 048080036 Drew Property 2 Mixed Use MU1 B 0.0-30.0 hu/ac 5.04 75 Light Industrial & Residential (2 units) 5 137061022 The Birches (Yarberry) Medium Density Residential PCD 8.1-18.0 hu/ac 2.21 21 Vacant 6 137170038 Kellgren Senior Apartments High Density Residential R5 18.1-30.0 hu/ac 1.71 50 Vacant 7 137061026 North McDowell Commons Medium Density Residential R4 8.1-18.0 hu/ac 1.08 35 Vacant Seasonal creek, potential minor floodinc 137061035 North McDowell Commons Medium Density Residential R4 8.1-18.0 hu/ac 1.13 Residential (1 unit) 8 149413023 Avila Ranch Low Density Residential R4 2.6-8.0 hu/ac 4.92 21 Residential (1 unit) 9 149413025 557 Sonoma Mountain Pkwy (adjacent to Avila Ranch) Low Density Residential R4 2.6-8.0 hu/ac 1.94 6 Residential (1 unit) 10 017040021 Casa Grande High School Surplus Medium Density Residential PUD 8.1-18.0 hu/ac 16.90 180 Vacant 11 017040016 280 Casa Grande Road Medium Density Residential R4 8.1-18.0 hu/ac 0.99 92 Residential (1 unit) Floodplain, noise, potential toxics 017040020 250 Casa Grande Road Medium Density Residential R4 8.1-18.0 hu/ac 1.00 Residential (1 unit) Noise 017040051 270 Casa Grande Road Medium Density Residential R4 8.1-18.0 hu/ac 4.21 Residential (1 unit) 017040059 240 Casa Grande Road Medium Density Residential R4 8.1-18.0 hu/ac 3.39 Residential (1 unit) 12 005201001 Baywood Equities High Density Residential R5 18.1-30.0 hu/ac 5.56 100 Vacant 13 005060041 Baywood LLC High Density Residential R5 18.1-30.0 hu/ac 0.94 250 Vacant 005060042 Baywood LLC High Density Residential R5 18.1-30.0 hu/ac 18.67 Vacant 005060067 Baywood LLC High Density Residential R5 18.1-30.0 hu/ac 0.71 Vacant 14 136100025 Johnson Property Medium Density Residential R4 8.1-18.0 hu/ac 42.32 500 Vacant 15 019010006 Sid Commons Medium Density Residential R4 8.1-18.0 hu/ac 4.41 282 Vacant 019010009 Sid Commons Medium Density Residential PUD 8.1-18.0 hu/ac 14.29 Vacant 16 048142014 Anderson TR Medium Density Residential R4 8.1-18.0 hu/ac 5.57 109 Vacant 048142015 Anderson TR Medium Density Residential R4 8.1-18.0 hu/ac 12.53 Residential (1 unit) 17 019020004 Thompson Property Medium Density Residential R4 8.1-18.0 hu/ac 4.32 28 Residential (1 unit) 18 019020014 Baker Property Medium Density Residential R4 8.1-18.0 hu/ac 2.68 17 Residential (1 unit) 19 019030007 Ravenscroft TR (Shasta Ave) Mixed Use MU1A 0.0-30.0 du/ac 0.16 50 Residential (1 unit) 019030008 Ravenscroft TR (Shasta Ave) Mixed Use MU1A 0.0-30.0 du/ac 0.13 Residential (1 unit) 019030009 Ravenscroft TR (Shasta Ave) Mixed Use MU1A 0.0-30.0 du/ac 0.80 Agriculture - Petaluma Bounty 019030010 Ravenscroft TR (Shasta Ave) Mixed Use MU1A 0.0-30.0 du/ac 1.19 Residential (1 unit)/Agriculture - Bounty 019030011 Ravenscroft TR (Shasta Ave) Mixed Use MU1A 0.0-30.0 du/ac 0.31 Agriculture - Petaluma Bounty 019030012 Ravenscroft TR (Shasta Ave) Mixed Use MU1A 0.0-30.0 du/ac 0.66 Agriculture - Petaluma Bounty 019030014 Ravenscroft TR (Shasta Ave) Mixed Use MU1A 0.0-30.0 du/ac 0.13 Agriculture - Petaluma Bounty 20 048210007 Orciuoli TR (Jessie Lane) Low Density Residential CNTY 2.1-8.0 hu/ac 6.21 40 Vacant 048210009 Orciuoli TR (Jessie Lane) Low Density Residential CNTY 2.1-8.0 hu/ac 5.79 Vacant 21 006491001 Cooper Property (1825 Petaluma Blvd. North) Low Density Residential R2 2.1-8.0 hu/ac 1.49 6 Residential (3 units) 006491002 Brown Property (1755 Petaluma Blvd. North) Low Density Residential R2 2.1-8.0 hu/ac 4.08 24 Residential (2 units) 22 006051065 Cedar Grove Property Medium Density Residential R4 8.1-18.0 hu/ac 4.16 63 Residential (2 units) 006051079 Cedar Grove Property Medium Density Residential R4 8.1-18.0 hu/ac 4.37 Vacant 23 007041006 Clover Stornetta Property Diverse Low Density Residential R3 6.1-12.0 hu/ac 3.38 29 Vacant 24 007361031 Trautwein Property (901 Martin Circle) High Density Residential R5 18.1-30.0 hu/ac 0.44 10 Vacant 25 007163002 Old Silk Mill Mixed Use MU2 18.1-30.0 hu/ac 1.21 30 Light Industrial (Vacant) 26 136010025 Riverfront LLC Mixed Use T5/T6 0.0-60.0 hu/ac 39.12 273 Vacant 27 006163040 IRIS Asset LLC (Water Street North) Mixed Use T5 0.0-60.0 hu/ac 2.99 130 Commercial 006163041 IRIS Asset LLC (Water Street North) Mixed Use T5 0.0-60.0 hu/ac 0.59 Commercial 28 006163005 Schram Property (Water Street North) Mixed Use T5 0.0-60.0 hu/ac 1.24 100 Light Industrial 006163025 Schram Property (Water Street North) Mixed Use T5 0.0-60.0 hu/ac 0.26 Vacant 006163051 Schram Property (Water Street North) Mixed Use T5 0.0-60.0 hu/ac 0.65 Vacant 006163053 Schram Property (Water Street North) Mixed Use T5 0.0-60.0 hu/ac 0.26 Vacant 29 007142026 Golden Eagle Shopping Center Mixed Use T6 0.0-60.0 hu/ac 7.31 250 Shopping Center 30 007143003 Haystack Mixed Use Project Mixed Use T5/T6 0.0-60.0 hu/ac 0.48 120 Vacant 007143004 Haystack Mixed Use Project Mixed Use T5/T6 0.0-60.0 hu/ac 0.24 Vacant 007143007 Haystack Mixed Use Project Mixed Use T5/T6 0.0-60.0 hu/ac 0.16 Light Industrial 007143008 Haystack Mixed Use Project Mixed Use T5/T6 0.0-60.0 hu/ac 0.15 Light Industrial 007143014 Haystack Mixed Use Project Mixed Use T5/T6 0.0-60.0 hu/ac 0.02 Vacant 007143015 Haystack Mixed Use Project Mixed Use T5/T6 0.0-60.0 hu/ac 3.00 Vacant 31 007131003 SMART Property Mixed Use T5/T6 0.0-60.0 hu/ac 4.66 170 Vacant 32 007153001 Lind Property 300 East D Street Mixed Use T5 0.0-60.0 hu/ac 0.24 73 Light Industrial 007153002 Menary Property 310 East D Street Mixed Use T5 0.0-60.0 hu/ac 0.24 Vacant 007700005 Lind Property Mixed Use T5 0.0-60.0 hu/ac 1.60 Vacant 33 008530007 City of Petaluma (951 Petaluma Blvd. South) Mixed Use T5 0.0-60.0 hu/ac 1.30 50 Office ATTACHMENT 1 Infra. Capacity Environmental: Constraints Yes Potential minor flooding Yes Potential minor flooding Yes Noise, adjacent to railroad Yes Noise, adjacent to railroad Yes Floodplain Yes None Yes None Yes Noise Yes Pot. Historic, noise, minor floodplain Yes Creek remnant Yes None Yes None Yes None Yes None Yes Adjacent creek, minor floodplain Yes Adjacent creek, minor floodplain Yes Noise, air quality Yes Potential toxics Yes Floodplain, potential toxics Yes Potential toxics Yes Partial floodplain, noise, air quality Yes None Yes Partial floodplain, wetlands, noise Yes Partial floodplain, oaks Yes Topography, oaks Yes Topography, oaks Yes Oaks Yes None Yes None Yes None Yes None Yes None Yes None Yes None Yes None Yes Seasonal creek, potential minor floodinc Yes Topography Yes Topography Yes Floodplain, historic resources, noise Yes Floodplain, historic resources, noise Yes Floodplain, noise Yes None Yes Potential toxics, noise Yes Wetlands, noise Yes None Yes None Yes Mitigated Yes Mitigated Yes Mitigated Yes Mitigated Yes None Yes Floodplain, noise, potential toxics Yes Floodplain, noise, potential toxics Yes Floodplain, noise, potential toxics Yes Floodplain, noise, potential toxics Yes Floodplain, noise, potential toxics Yes Floodplain, noise, potential toxics Yes Floodplain, noise, potential toxics Yes Noise Yes Noise Yes Noise Yes Floodplain Site APN Name General Plan Land Use Classification Zone Density Acres Capacity Existing Land Use Infra. Capacity Environmental Constraints 34 019210032 Vartnaw Property (1340 Pet. Blvd. South) Medium Density Residential CNTY 8.1-18.0 hu/ac 1.67 16 Vacant Yes None 35 Misc. Quarry Heights Subdivision Diverse Low Density Residential PUD 6.1-12.0 hu/ac 43.55 172 Under Construction (remaining units) Yes Mitigated 36 019210010 South Petaluma Partners Mixed Use PUD 0.0-30.0 du/ac 1.47 50 Industrial Yes Potential toxics, noise 019210039 South Petaluma Partners Mixed Use PUD 0.0-30.0 du/ac 1.64 Industrial Yes Potential toxics, noise 37 019210005 Wind River Partners (1473 Pet. Blvd. South) Mixed Use CNTY 0.0-30.0 hu/ac 2.45 40 Light Industrial Yes Potential toxics, noise 38 019210006 Royal Petroleum (1475 Pet. Blvd. South) Mixed Use CNTY 0.0-30.0 hu/ac 0.93 35 Light Industrial Yes Potential toxics, noise 019210007 Royal Petroleum (1501 Pet. Blvd. South) Mixed Use CNTY 0.0-30.0 hu/ac 1.42 Light Industrial Yes Potential toxics, noise 39 019210008 State of California (1525 Pet. Blvd. South) Mixed Use CNTY 0.0-30.0 hu/ac 1.76 30 Light Industrial Yes Potential toxics, noise 40 006083054 Keller Court Commons Low Density Residential R2 2.1-8.0 hu/ac 1.66 8 Vacant Yes None 41 019090004 Husary Property (1155 Bodega Avenue) Mixed Use/Very Low Density Residential CNTY 0.0-30.0/0.6-2.5 hu/ac 5.01 38 Commerical and Residential Yes Noise 019090053 Husary Property (1103 Bodega Avenue) Very Low Density Residential CNTY 0.6-2.5 hu/ac 1.34 Vacant Yes Noise 42 019090006 Soernsen Property (1005 Bodega Avenue) Very Low Density Residential CNTY 0.6-2.5 hu/ac 3.33 12 Residential (1 unit) Yes Topography, noise 019090058 Soernsen Property (1002 Bodega Avenue) Very Low Density Residential CNTY 0.6-2.5 hu/ac 2.17 Vacant Yes Topography, noise 43 019090056 RSCC Petaluma LLC (1436 Western Avenue) Rural Residential CNTY 0.1-0.6 hu/ac 16.16 8 Vacant Yes Topography, habitat 44 008321001 CWS Utility Services (La Cresta Drive) Very Low Density Residential R1 0.6-2.5 hu/ac 5.91 Vacant - Open space acquisition pending Yes Topography, habitat 020030015 CWS Utility Services (La Cresta Drive) Very Low Density Residential R1 0.6-2.5 hu/ac 7.13 Vacant - Open space acquisition pending Yes Topography, habitat 45 008073001 Reynaud Property (910 English Street) Very Low Density Residential R1 0.6-2.5 hu/ac 8.03 Vacant Yes Topography, habitat 46 019120040 Davidon Homes Property Very Low Density Residential R1 0.6-2.5 hu/ac 6.58 66 Vacant Yes Topography 019120041 Davidon Homes Property Very Low Density Residential R1 0.6-2.5 hu/ac 52.27 Residential (1 unit) and Agriculture Yes Topography, habitat, wetlands, creek 47 019203008 Sunnyslope II Subdivision Very Low Density Residential PUD 0.6-2.5 hu/ac 8.82 21 Residential (1 unit) Yes Topography 48 019401013 Ferrin Subdivision Low Density Residential R2 2.6-8.0 hu/ac 4.40 12 Residential (3 units) Yes Topography 49 019401019 Pinnacle Ridge Subdivision Very Low Density Residential/Rural Residential PUD 0.1-0.6/0.6-2.5 hu/ac 15.08 11 Vacant Yes Mitigated 50 007280077 Maria Drive Apartments High Density Residential R5 18.1-30.0 hu/ac 2.90 144 Office Yes Mitigated 007280078 Maria Drive Apartments High Density Residential R5 18.1-30.0 hu/ac 2.95 Office Yes Mitigated 51 I 007610029 Addison Ranch Medium Density Residential PUD 8.1-18.0 hu/ac 7.35 100 Residential Yes None 007610031 Addison Ranch Medium Density Residential PUD 8.1-18.0 hu/ac 6.65 Residential Yes None 501.11 4,384 Pending open space acquisition, no units assumed. " Significant contraints, capacity cannot be determined without site specific review. No affordable units anticipated. !» ATTACHMENT 2 1+� Q� Nate Lafferty Ranch ,located �gP�!" E-1' o a° So°oM`o Road RESIDENTIAL LAND INVENTORY 101 0� 4 P� OPPORTUNITY SITES 9 Petaluma General Plan 2025 ,.�. ,F ' ��s� LAND USE CLASSIFICATIONS* Rural Residential (0.1-0.6 hu/ac) Y n 1 r Very Low Density Residential (0.6-2.5 hu/ac) n Ali `�� ow Dens Residential \, L Density R 'd I (2 6-8 0 l~ \ _. _ 4 ¢ ��r Diverse Low Density Residential (6.1-12.0 hu/ac) Medium Density Residential (8.1-18.0 hu/ac) High Density Residential (18.1-30.0 hu/ac) �•�;',� k to , �1 ��'" ; ), „ r `�'.-L 1" K�_�E\; < t �( ,,� -18 0 hu/ac) )Mo l)e Homes (8 0 oo Neighborhood Commercial _z .,> Community Commercial IIS .r ,SEH ° r yi . ✓ ' i- ,i '1 / t�,a, �°.®afs_ r�� `G T fi'. > �'1'�9 `xk ?^ Mixed Use V \®®¢�®t T t �%Business Park i f" M EF Pu - LI �, � ,< ,Ty ,�-' � Public/Semi-Public Public I .._ . j s �d���s ti� 4 Education Industrial Agriculture Support Industrial (CPSP) `���; 'r �� ' i, � ,° ,i �1 :�„- �--, sin � �� , 4 � � �ry„ � z� � ��E� �E •,rn�,• River Dependent Industrial (CPSP) Wn .I •, r�y. \, A Agriculture hL x T•�,E f City Park `,^- _ t� , (�' '� J s'^k"'1' 'c •. �,', r- r - 4 '' '` Gly, e� r `� '' `' rn yc r RSEEA _Lr�� y -- Proposed City Park �u k Fy Open Space L N All -- �.�� - �-y Park Regional �" ��3^"„� J��y-`�` `-lr� kl��z',:•,�py z�? 'Qo P k � "�. P P I Urban Separator I - �t _ — `'Alt Urban Separator Path 26 .., .. E�`J Ei �t .E`' )L y _ _�4J-+�\� S ,,• �r �" �7'TE�an :�� rfE` -�� Q��rvE ,E.�oEJ?f e}r�Y - ''�"1�f 1j�, - �a e\s .- RI ver Plan Corridor � Community Separator 35 � _�7>;.�,`;r ,.,_ ; � ��i tr`, �_ '�� -+• a✓,,' � >•?pil '��E, r-rt�ilE '�`_...�..�7„`_,__... _�.»:� � F-_.�_-';,;� , Legend 1, r l� ._. - r y ' \• v�F Rail/Transit a Gateways SPR\�G(r�y j t 4 u g \� T ., _. ! n ' �E � BOUNDARIES „ , L E',G�� { ' IFS L - s Jy r' ' I City Limits �F l i \ r 1 46 ­ �r i_ ! �C�». '; 7zF F fiyk�,' 1 Urban Growth Boundary (UGB) _� — -- dCree s �Rivers an k -- 101 -.._.. _,_.__ i - r __...,...�- FI OOdW y** m -_: - - mesemapsorplanswere ompled ando digitized via electronic means{'h �`°,-: - -_- Floodplain utilizing many source documents It'sintended to be representative of "b µx ,Till7 j,' \� _ . '------ -- - f ` -a a ut in physical, legal and geometrc features arthinthe City of Petaluma, CA �m � J, , K ���, d't e Th ',fence or locationff 'I't' the fieldverifiedand _ { ' this document dt imply or guarantee neither d q t p ty nor the --f ` availability f The City of Petalumaresponsibility regarding , / ' the accuracy f t information presented h legal documentation, N 1:36.000 represent t' f actual construction or for any other purpose for which this �. -- �, ""' - 4,.'�'-`--. ,r map was tintended. 0 750 1,500 3,000 Feet -- _ ao - �,'��p, � ', � City of Petaluma ' Residential density ' expressed N , W 1, acres ! English housing nits per net acre - - 0 0.1 02 0.4 Mlles - 1p - �,, Mt i', e dasa 11 h Street ., Petaluma, CA 94952 Floodway and Floodpla andaresubjectrie from the September 19889 Flood e _ I � � � acres - - v,. m n mum an maximum num Insurance Rate Map (FIRM ,,'" S Revision Date May 19, 2008 JMF' s generalplan@ei.petaluma.ea.us of a Letter of Map Amendment (LOMA) or a Letter of Map Revision (LOMR) .,' ATTACHMENT 3 Residential Sites Inventory Analysis (May 2014) This attachment has been prepared to provide additional information on several properties identified in the Residential Sites Inventory Analysis. Because determining development potential or interest on underutilized sites can be more subjective, this analysis focuses on those lands with significant additional potential and/or for which owners have expressed interest in future additional development or redevelopment. Underutilized properties such as the Brody Ranch, the Drew Properties, etc. listed below have minor structures associated with large sites and in many cases have expressed interest at one time or another in future residential or mixed use development. Site #2: Brody Ranch - Underutilized General Plan Designation: Medium & High Density Zoning Designation: R4 and R5 Acreage: 15.93 acres Existing Land Use: Light Industrial/Residential Estimated Housing Potential: 300 units Description: Adjacent to a planned SMART rail station this site has been designated to provide a mixture of medium and high density housing due to its close proximity to future regional transit service. The majority of the site is vacant; the two residences are farmhouses reflecting past/current agricultural uses. Owner/developer representative have expressed interest in future residential development of site. Affordable housing development incentives and requirements: The proposed density allowing the development of 300 units could yield a minimum of 45 affordable units (Policy 4.2). Density bonus provisions (Program 3.3) may increase the total number of possible units and the number of affordable units. Depending upon the proposed tenure of affordable units, the City would partner with the Housing Land Trust for ownership units (Policy 4.7) and with Eden Housing or BHDC (Policy 4.3) for rentals to provide both financial and staff assistance. Policy 4.2, Program 4.4 (a) would encourage that the units be provided on-site. Site #3: Drew Property 1 - Underutilized Site #4: Drew Property 2 - Underutilized Residential Sites Inventory Analysis Addendum (May 2014) General Plan Designation: Mixed Use Zoning Designation: MU1B Acreage: 7.02 acres Existing Land Use: Light Industrial Estimated Housing Potential: 105 units Description: Potential location for the planned SMART rail station this site is designated mixed use with the anticipation of supporting some commercial and residential transit -oriented development. The existing light industrial use is a truss manufacturing operation. The majority of the site is vacant with open sided structures and storage areas. The property had previously been optioned for development reflecting an interest in future redevelopment by the owner. Affordable housing development incentives and requirements: The proposed residential/commercial mixed use zoning of the site will allow additional housing units and provide housing opportunities for low and moderate income households. The City's inclusionary housing policy would require a minimum yield of 15 below -market -rate units. City housing staff will coordinate with the potential mixed-use developer to fulfill the affordable housing obligation in a manner which meets the housing needs of the City and fits the requirements of the commercial development. Policy 4.2, Program 4.4 (a) encourages that the units be provided on-site. General Plan Designation: Mixed Use Zoning Designation: MU1B Acreage: 5.04 acres Existing Land Use: Light Industrial/Residential Estimated Housing Potential: 75 units Description: Located across from the planned SMART rail station this site has been designated mixed use in anticipation of commercial and residential development. The site is largely vacant with 2 residential units, an automotive repair shop, and some onsite storage. The property had previously been optioned for development reflecting an interest in future redevelopment by the owner. Affordable housing development incentives and requirements: The proposed residential/commercial mixed use zoning of the site will allow additional housing units and provide housing opportunities for low and moderate income households. The City's inclusionary housing policy would require a minimum yield of 11 below -market -rate units. Policy 4.2, Program 4.4 (a) encourages that the units be provided on-site. Site #25: Old Silk Mill - Underutilized Residential Sites Inventory Analysis Addendum (May 2014) General Plan Designation: Mixed Use Zoning Designation: MU2 Acreage: 1.21 acres Existing Land Use: Light Industrial (vacant) Estimated Housing Potential: 30 units Description: The Old Silk Mill building is a significant historic resource which after decades of manufacturing uses is currently vacant and in declining condition. During the General Plan process the new owners of the property requested designation of the site as high density residential in order to provide for the adaptive reuse and restoration of this building for housing. It was later amended to Mixed Use to accommodate a hotel proposal. Recent interest is again for residential. Affordable housing development incentives and requirements: The proposed mixed use zoning of the site could allow additional housing units and provide housing opportunities for low and moderate income households. The proposed density allowing the development of 30 units could yield a minimum of 4 affordable units (Policy 4.2). Site #29: Golden Eagle Shopping Center - Underutilized General Plan Designation: Mixed Use (CPSP) Zoning Designation: T6 Acreage: 7.31 acres Existing Land Use: Shopping Center Estimated Housing Potential: 250 units Description: Located in close proximity to both historic downtown Petaluma, the planned downtown SMART station, and within the Central Petaluma Specific Plan area this site is ideally suited for redevelopment as a mixed use project. The property is currently occupied by an older shopping center. The property was purchased a few years ago by a local developer with the intent of redeveloping the site into a high intensity mixed use site with commercial, office, and residential uses. In the current market no redevelopment proposal has come forward. Affordable housing development incentives and requirements: The proposed mixed use zoning of the site will allow additional housing units and provide housing opportunities for low and moderate income households. The City's inclusionary housing policy would require a minimum yield of 37 below -market - rate units. Policy 4.2, Program 4.4 encourages that the units be provided on-site. Site #37: Wind River Partners - Underutilized Residential Sites Inventory Analysis Addendum (May 2014) General Plan Designation: Mixed Use Zoning Designation: CNTY Acreage: 2.45 acres Existing Land Use: Light Industrial Estimated Housing Potential: 40 units Description: Located at the southern entrance to Petaluma, Site's 36 through 39 are anticipated to see redevelopment activity within this planning period. A large area opposite these sites was recently annexed and property owners within this area have expressed interest in moving forward with annexation as well. This property is currently used as a salvage yard for recycled building materials; the majority of the site is dedicated to outdoor storage. Affordable housing development incentives and requirements: The proposed mixed use zoning of the site will allow additional housing units and provide housing opportunities for low and moderate income households. The City's inclusionary housing policy would require a minimum yield of 6 below -market -rate units. The developer would be given the option of paying into the City's In -lieu housing fund. The funds would then be utilized by the housing staff and leveraged to provide housing for ELI households in a more central location with support services. Site #38: Royal Petroleum - Underutilized General Plan Designation: Mixed Use Zoning Designation: CNTY Acreage: 2.35 acres Existing Land Use: Light Industrial Estimated Housing Potential: 35 units Description: Located at the southern entrance to Petaluma, Site's 36 through 39 are anticipated to see redevelopment activity within this planning period. A large area opposite these sites was recently annexed and property owners within this area have expressed interest in moving forward with annexation as well. This property is currently used for storage and shipping with the majority of the site undeveloped. Affordable housing development incentives and requirements: The proposed mixed use zoning of the site will allow additional housing units and provide housing opportunities for low and moderate income households. The City's inclusionary housing policy would require a minimum yield of 5 below -market -rate units. The developer would be given the option of paying into the City's In -lieu housing fund. The funds would then be utilized by the housing staff and leveraged to provide housing for ELI households in a more central location with support services. Site #39: State of California - Underutilized Residential Sites Inventory Analysis Addendum (May 2014) General Plan Designation: Mixed Use Zoning Designation: CNTY Acreage: 1.76 acres Existing Land Use: Light Industrial Estimated Housing Potential: 30 units Description: Located at the southern entrance to Petaluma, Site's 36 through 39 are anticipated to see redevelopment activity within this planning period. A large area opposite these sites was recently annexed and property owners within this area have expressed interest in moving forward with annexation as well. This property is currently owned by the State and is used as a corporation yard for Caltrans. While no development plans have been brought forward. This site, either individually, or in conjunction with the adjacent sites has significant redevelopment potential. Affordable housing development incentives and requirements: The mixed use zoning of the site allows additional housing units and provides housing opportunities for low and moderate income households. The City's inclusionary housing policy would require a yield a minimum of 4 below -market - rate units. The developer would be given the option of paying into the City's In -lieu housing fund. The funds would then be utilized by the housing staff and leveraged to provide housing for ELI households in a more central location with support services. Site #41: Husary Property - Underutilized General Plan Designation: Mixed Use/Very Low Density Zoning Designation: CNTY Acreage: 6.35 acres Existing Land Use: Commercial and Residential Estimated Housing Potential: 38 units Description: Located at the western edge of town, this property already contains a mixture of convenience commercial and nonconforming residential units. Designation as mixed use would allow a portion of the site to formalize the existing uses while allowing for intensification. The owner of the property indicated a desire for future development/redevelopment of the site during the process of updating the General Plan. Affordable housing development incentives and requirements: The proposed mixed use zoning of the site will allow additional housing units and provide housing opportunities for low and moderate income households. The City's inclusionary housing policy would require a minimum yield of 5 below -market -rate units. The developer would be given the option of paying into the City's In -lieu housing fund. The funds would then be utilized by the housing staff and leveraged to provide housing for ELI households in a more central location with support services. STATF {)F c9LEOENI - 1) 1 ni]SINr AnFN(,Y DEPARTMENT OF HOUSING AND COMMU ITY DEVELOPMENT DIVISION of HOUSING POLICY DEVELOPMENT 202D Vit. El Camino Avenue, Su4e 500 Sacramento, CA 95833 (916) 263-2911 I FAX (916) 263-7453 www.ncd.ca.9ou July 15, 2014 Jahn Brown, City Manager City of Petaluma P. Q Box 61 Petaluma, CA 54953 Dear Cllr. Brown: FIDMUND G BROWN.IR _ rnvpmnr, Thank you for submitting Petaluma's draft housing element update which was received for review on May 16, 2014, along with additional revisions received on July 9, 2914. Pursuant to Government Code (GC) Section 65585(b), the Department is reporting the results of its review. Our review was facilitated by a telephone conversation on June 25, 2014 with Ms. Sue Castellucci, Housing Coordinator, and Mr. Scott Duiven, Senior Planner. The draft element meets most of the statutory requirements of State housing element law (GC, Article 10,6). The Department cannot find the element in full compliance until the City amends its zoning ordinance to permit year-round emergency shelters without discretionary action pursuant to GC Section 65583(a)(4)(A) as amended by Senate Bill 2 (Chapter 633, Statutes of 2007). Program 3.2, identified in the previous element, committed the City to amend the zoning ordinance to permit emergency shelters in the Mixed -Use and Civic Facilities zone without discretionary action within one year from adoption of the 4th cycle housing element. As noted in the current element on page 2 of Appendix B, Program 3.2 has not been implemented. The element will comply with housing element law once the City has completed these zoning amendments and submitted the adopted element to the Department pursuant to GC Section 65585(g). To remain on an eight year planning cycle, pursuant to Senate B11 375 (Chapter 728, Statutes of 2008) the City must adopt its element within 120 calendar days from the statutory due date of January 31, 2015 for ABAG localities. If adopted after this date, GC Section 65588(e)(4) requires the element be revised every four years until adopting at least two consecutive revisions by the statutory deadline. For information on element adoption requirements, visit our website at: http:/Iwww.hcd.ca.gov/h d/hrc/plan/he/he review adootionsteosl 10812.pdf. The Department appreciates the hard work and dedication of Ms. Castellucci and Mr. Duiven in preparation of the housing element and looks forward to receiving Petaluma's adopted housing element. If you have any questions or need additional technical assistance, please contact Melinda Coy, of our staff, at (916) 263-7425. Sincerely, 4�en A. Campora Assistant Deputy Director RECOMMENDING TO THE CITY COUNCIL ADOPTION OF A NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT FOR THE 0Dl5-2O23 HOUSING ELEMENT UPDATE AND TEXT AMENDMENTS TO THE IMPLEMENTING ZONING ORDINANCE AND S8AAQTCODE WHEREAS, State law requires California cities to prepare and adopt a general plan to guide future development of the city, including a Housing Element as one of the mandatory elements inacity's general plan; and WHEREAS, State law requires that cities comprehensively update their Housing Elements tnensure their plans can accommodate future demand for housing; and WHEREAS, the City ofPetaluma ("Oty") last updated its Housing Element in 2009; and WHEREAS, the proposed 2Dl5-2023Housing Element Update ("HoudngBement") identifies and analyzes existing and projectedhousing needs and states goals, policies, quantified objectives and special programs for the preservation, improvement and development ofhousing inthe City from 2Ol5through 2O23;and WHEREAS, The proposed Housing Element has been prepared in conformance with the requirements ofState |ow' including but not limited to Article 10.6 /Housing Elements) of the Government Code and was released for preliminary review as a draft to the State Department of Housing and Community Development; and WHEREAS, the proposed Housing Element is consistent with the Petaluma GeneralF1on 2025, adopted by the City on May 19, 2008, and specifically, is consistent with the existing Land Use Element ofthe Petaluma General Plan 2O2J; and WHEREAS, onInitial Study and Negative Declaration was prepared pursuant tothe requirements ofthe California Environmental Quality Act /CEQA\;and WHEREAS, notice of the City's intention to adopt a Negative Declaration and of the availability of the Negative Declaration for a thirty day public review and comment period was originally given onOctober 9.2Ol4inaccordance with CEQA;and Planning Commission Resolution No. 2Ol+37 Page WHEREAS, on October 28, 2014, the City of Petaluma Planning Commission conducted a duly noticed public hearing to consider and review the Housing Element and Negative Declaration for recommendation to the City Council. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission hereby: 1. Recommends adoption of the Negative Declaration for the project. ADOPTED this 28th day of October, 2014, by the following vote: Commission Member Aye No Absent Abstain Benedetti-Petnic x Lin x Gomez X. Marzo x Councilmember Miller x Vice Chair Pierre x Chair Wolpert x ATTEST: He ffer Hines, Co Ission- Secretary Bill Wolpert, Chair APPROVED AS TO FORM: Andrea Visveshwara, Assistant City Attorney Planning Commission Resolution No. 2014-37 Page 2 RECOMMENDING TO THE CITY COUNCIL ADOPTION OF THE 2015-2023 HOUSING ELEMENT UPDATE AS AN AMENDMENT TO THE GENERAL PLAN 2025 WH�E���|��qu�C��o���p�p�and �m�og�c��n� guide futun»development nfthe city, including oHousing Element osone ofthe mandatory elements inocity's general plan; and WHEREAS, State law requires that cities comprehensively update their Housing Elements 10ensure their plans can accommodate future demand for housing; and WHEREAS, the City of Petaluma /"[itv'> lad updated its Housing Element in 2009; and WHEREAS, the proposed 2015-2023 Housing Element Update ("Housing Element") identifies and analyzes existing and projectedhousing needs and states goals, policies, quantified objectives and special programs for the preservation, improvement and development of housing in the City from 2015 through 2023; and WHEREAS, the proposed Housing Element has been prepared in conformance with the requirements of State law, including but not limited to Article 10.6 (Housing Elements) of the Government Code and was released for preliminary review as a draft to the State Department ofHousing and Community Development; and WHEREAS, the State Department ofHousing and Community Development reviewed the Draft Housing Element and determined that the draft element meets the statutory requirements ofState housing element law; and WHEREAS, the proposed Housing Element is consistent with the Petaluma General Plan 2025, adopted by the City on May 19, 2008, and WHEREAS, onInitial Study and Negative Declaration was prepared pursuant 1othe requirements of the California Environmental Quality Act (CEQA); and WHEREAS, notice of the City's intention to adopt a Negative Declaration and of the availability of the Negative Declaration for a thirty day public review and comment period was originally given onOctober 9'2Ol4inaccordance with CEQA;and WHEREAS, on October 28, 2014, the City of Petaluma Planning Commission conducted a duly noticed public hearing to consider and review the Housing Element and Negative Declaration for recommendation fothe City Council, NOW, THEREFORE, BE IT RESOLVED that the Planning Commission hereby: l. Recommends adoption ofthe 2Ol5-2023Housing Element cnonamendment 1othe General Plan 2O25. ADOPTED this 28th day pfOctober, 2014, by the following vote: Planning Commission Resolution No. 2Dl4-3Y Page Commission Member Aye No Absent Abstain Benedetti-Petnic x Lin x Gomez x Marzo x Councilmember Miller x Vice Chair Pierre x Chair Wolpert x ATTEST: IWO H/ fidtCr Hines, Co ission Secretary 1� I Bill Wolpert, Chair APPROVED AS TO FORM: Andrea Visveshwara, Assistant City Attorney Planning Commission Resolution No. 2014-39 Page 2 RESOLUTION OF THE CITY OF PETALUMA PLANNING COMMISSION RECOMMENDING THE CITY COUNCIL AMEND THE TEXT OF THE IMPLEMENTING ZONING ORDINANCE AND SMARTCODE TO IMPLEMENT STATE HOUSING ELEMENT LAW, INCLUDING UPDATES TO IZO CHAPTER 4: ZONE DISTRICTS, CREATING A NEW CHAPTER 27: RESIDENTIAL DENSITY BONUS ORDINANCE AND RENUMBERING THE EXISTING GLOSSARY TO CHAPTER 28 AND UPDATES TO THE SMARTCODE SECTION 9: GLOSSARY WHEREAS, Section 25.010 of the City of Petaluma Implementing Zoning Ordinance (IZO) provides in pertinent part that no amendment that regulates matters listed in Government Code Section 65850 shall be made to the IZO or SmartCode unless the Planning Commission and City Council find the amendment to be in conformity with the General Plan; and WHEREAS, the current housing element cycle requires that certain state mandates related to zoning be met prior to certification of the City's 2015-2023 Housing Element; and WHEREAS, staff has proposed a series of text amendments to the City's Implementing Zoning Ordinance, including: Chapter 4: Zone Districts; a new Chapter 27: Residential Density Bonus; a reassigned Chapter 28: Glossary; and amendments to the SmartCode Section 9: Glossary in order to address State Housing Element Law; and, WHEREAS, on October 9, 2014, public notice of the October 28, 2014 Planning Commission meeting to consider the amendments was published in the Argus -Courier and sent to all members of the public on the interested parties list for this item; and WHEREAS, on October 28, 2014, the Planning Commission held a duly noticed public hearing in accordance with Chapter 25 of the Implementing Zoning Ordinance to consider the amendments. NOW, THEREFORE BE IT RESOLVED that the Planning Commission hereby finds that: The proposed amendments to the City's Implementing Zoning Ordinance Chapter 4: Zone Districts, new Chapter 27: Residential Density Bonus Ordinance, to a reassigned Chapter 28: Glossary and amendments to the SmartCode Section 9: Glossary contained in Exhibit A are in general conformity with the Petaluma General Plan 2025 in that these changes may implement the goals, policies, and programs of the Housing Element for the preservation, improvement and development of affordable housing and housing programs in the City of Petaluma. 2. The proposed amendments are hereby referred to the Petaluma City Council for consideration and findings in accordance with Section 25.010 of the Implementing Zoning Ordinance Planning Commission Resolution No. 2014-38 Page 1 ADOPTED this 28th day of October, 2014, by the following vote: Commission Member Aye No Absent Abstain Benedetti-Petnic x Lin x Gomez x Marzo x Councilmember Miller x Vice Chair Pierre x Chair Wolpert x ATTEST: H f f er Hines, Commission Secretary l3i loipe rt, APPROVED AS TO FORM: Andrea Visveshwara, Assistant City Attorney Planning Commission Resolution No. 2014-38 Page 2 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETA0UMA AMENDING THE IMPLEMENTING ZONING ORDINANCE, ORDINANCE NO. 3300N.C,S,AND THE SMARTCOQE,ORDKNANCE NO. 247QN.C.S.TOIMPLEMENT STATE HOUSING ELEMENT LAW WHEREAS, Section 25.010 of the City o[Petaluma Implementing Zoning Ordinance UZD\ provides in pertinent part that no amendment that regulates matters listed in Government Code Section 6585Oshall bomade tothe |Z{)unless the Planning Commission and City Council find the amendment tobeinconformity with the General Plan; and WHEREAS, staff has proposed a series of provisions amending the IZO, Chapter 4, Section 4.030, Allowable Land Uses and Permit Requirements; replacing the existing Chapter 27: Glossary with o new Chapter 27: Residential Density Bonus; reassigning the Glossary to a new Chapter 28; and updating and adding definitions to Chapter 28: Glossary; and updating and adding definitions to the SmadCVdo Section 9: Glossary, as hereinafter set forth, (collectively, "the omendmenb">'inorder toimplement State Housing Element Law; and WHEREAS, o public notice of the of the October 28, 2014 public hearing before the Planning Commission to consider the amendments was published in the Argus -Courier on October 9, 2014; and, WHEREAS, on October 28' 2014' the Planning Commission held a duly -noticed public hearing in accordance with the City of Petaluma Implementing Zoning Ordinance, Section 25.050; and, WHEREAS, after the conclusion ofsaid public hearing, the Planning Commission adopted its Resolution No. 2014 -XX, recommending that the City Council adopt the amendments; and WHEREAS, onXXXXXX, XXXX.the City Council approved on Initial Study and Negative Declaration; and, WHEREAS, on XXXX XX, XXXX, a public notice of the XXXX XX, XXXX public hearing before the City Council to consider f he amendments was published in the Argus -Courier; and, WHEREAS, on XXXX XX, XXXX, the City Council of the City of Petaluma held a duly noticed public hearing toconsider the amendments; and FINDINGS The City Council of the City of Petaluma hereby finds: The provisions amending the IZO, Chapter 4, Section 4.030, Allowable Land Uses and Permit Requirements; replacing the existing Chapter 27: Glossary with a new Chapter 27: Residential Density Bonus; reassigning the Glossary to a new Chapter 38; and updating and adding definitions toChapter 28:Glossary; and updating and adding definitions to the Smart Code Section 9: Glossary, as hereinafter set forth./ooUeotive|y'"theomendmen1x">.unaingenonz|onnformitvvviththe Planning Commission Resolution No. 2Ol4-38 Page Petaluma General Plan 2O25 because the amendments implement the goals, policies and programs of the Housing Element for the preservation, improvement and development ofaffordable housing and housing programs inthe City of Petaluma. 2. The public necessity, convenience, and general welfare clearly permit the adoption ofthe proposed text amendments tothe Implementing Zoning Ordinance and3mmdCode. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETAUL&8ATHAT THE CITY OF PETA[UMA |88PLBNEWTlNQ; ZONING ORDINANCE, ORDINANCE NO. 2300-N.C.S., IS AMENDED AS FOLLOWS: Section 1. The Table ofContents ishereby amended fnadd onew Chapter 27, Residential Density Bonus, and to renumber the current Chapter 27, Glossary, as a new Chapter 28toread osfollows: Glossary 1083 Chapter 27 28.010 Purpe-&& Residential DenwitvBonus 27.OlO-Purpose and Intent 27.02O-Oefiniions 27.030- Eligibility Criteria 27.04U - Density Bonus Calculation 27.050- Development Standards for Affordable Units 27.O6O-Density Bonus for Development ofChild Care Facility 27.O7O-Development Concessions and Incentives 27.O8O-General Application Requirements 27.O9O-Density Bonus Housing Agreement Chapter 28 GhosoqrY 28.0lO-Purpose 28.020- Definitions of Specialized Terms and Phrases Section 2. Chapter 3'Development and Land Use Approval Requirements, Section 3.030 (A) Allowable land uses, is hereby amended to read as follows: A. Allowable land uses. The uses of land allowed bvthis Zoning Ordinance in each zone are listed in 1ob|ms of oUovvob|o land uses in Chapters 4 and 6 together with the type of planning permit required for each use. Each land use listed inthe tables isdefined inthe G|osnon/ ' Section 3. Chapter 3'Development and Land Use Approval Requirements, Section 3,030 (C), Use not listed, (1) is hereby amended to read as follows: l. A land use that bnot listed inthe fables inChapter 4and is determined by the Director honot beincluded inthe Zoning Ordinance Glossary under the definition of o listed land use, is not allowed within the City, except as otherwise provided Subsection A.3. Section 4. Chapter 4.Zone Districts, Section 4.03O'Allowable Land Uses and Permit Requirements, Footnote I to Tables 4.1 to 4.5 is hereby amended to read as follows: Planning Commission Resolution No. 2D)4-38 Page (1) 3eeEHosaar/ for land use definitions. Section 5. Chapter 4'Zone Districts, Section 4.O40'Site Planning and Building Standards, Height Limit note to Tables 4.6 to 4.13 is hereby amended to read as follows: Maximum allowable height ofstructures, See for height measurement requirements, and Chapter 12 for height limit modifications. Section 6. Chapter l0'Adult Oriented Business, Sect ion l0,02O-DeUnif ions bhereby amended to read as follows: Ubthe intent ofChapter lOthat those definitions and interpretationseet forth inthe {}|ossorY ofthe Petaluma Zoning Ordinance shall apply but only where they do not conflict with any definition or interpretation set forth in Chapter 10. Section 7. Chapter 27Glossary ishereby renumbered osonew Chapter 28and sections 27.010 and 27.020 renumbered as follows: Chapter 2-7J8Glossary 27.01g28l)lQ'Purpose The chapter establishes the definitions ofterms and phrases that are technical cx specialized or that may not reflect common usage. If a word is not defined in this chapter, or in onother chapter of thiy Ordinance, the Director shall determine the correct definition. 27.02 2B.020'Definitions xf Specialized Terms and Phrases As used in this Ordinance, the following terms shall have the meaning ascribed to them in this Section, unless the context in which they are used clearly requires otherwise. Section 8. Chapter 4'Zone Districts, Section 4.03O'Allowable Land Uses and Permit Requirements, Tables 4.4 is hereby amended to add Emergency Shelter as a permitted use as Commercial, Business Park, and Industrial Zones TABLE 4.4� Allowed Land Uses,for. 'Conn Business Pa/�mmd| Zomeo � LAND -USE (l) RESIDENTIAL Emenlencv3heUer PO/J ' ` �` � ' Conditional Use PerDOif. CUP � Required.-' ' 'Pernl`� ''-�-i —' 'n ' ` u :-�uva/^^m /\Accessory . � ' .---_ . Use Not Allowed ���.� .e^..~.._`-._- _, � Zone � �� � �`���� '�specific.Use' |_—� |_� |—_�|P 1 Section 9. Chapter 4`Zone Districts, Section 4.03O Allowable Land Uses and Permit Requirements, Tables 4.5 is hereby amended to add Emergency Shelter as an allowed use subject tooConditional Use Permit osfollows: Planning Commission Resolution No. 2014-38 Page Civic Facility Zone pO6) ` � ' ' � . ' .� ' CUP0 ` ' CDndK�no| ''� Us Permit�TA8LEu�5 `' ` ` ` ' ^�""°° � Allowed Land Uses and Permit Req ifor_ � ` 5 ��� �� ' Permit hl '-�-'-'—�`� ' Civic Facility ' �� �~~.� ' � /\. ' ' — ' Use Uxe�NotN|ovYed� PermmHR��� by . ' Zone '� � � � � �Specific Use' LAND USE TYPE (l) .� �� ' ` CF ' ' Regulations � RESIDENTIAL � Shelter/{�l� | | / Section lO. Chapter 28"(}kossary,"Section 28J020bamended to replace the definitions of "Child Care Center," "Emergency Shelter" and "Transitional Housing" and to add definitions for "Supportive Housing and Target Population" as follows: Child Cane Center. A child day cons hzcUUv (other than o family day care home) as defined in Government Code Section 65915' subdivision /h>' paragraph /4\ and successor statutes including, but not limited to, infant centers, preschools, extended day care facilities and school age child core centers that provides non-medical care and supervision ofminor children for periods of less than 24 hours and is licensed by the California State Department of Social Services. Excludes "Child [}oy [oe*." below. Emergency Shelter. Emergency shelter means housing with rninirno| supportive services for homeless persons that is limited to occupancy ofsix months orless by homeless person. Supportive Housing. Housing with nolimit onlength ofstay, that isoccupied bvthe Target Popo|ohon, and that is linked to on onsite or offsite service that assists the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Supportive housing is a residential use subject only to those restrictions that apply to other residential uses ofthe same type inthe same zone. Target Population. Persons with low incomes who have one cvmore disabilities, including mental iUnea. HIV or AIDS, substance obuse, or other chronic health condition' or individuals eligible for services provided pursuant to the Lanterman [}ewa|opmenkJ| Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, odu|ts, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people. Planning Commission Resolution No. 2014-38 Page Transitional Housing, Buildings configured as rental housing developments, but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance. Transitional housing is a residential use subject to only those restrictions that apply to other residential uses of the same type in the same zone. Section 11. A new Chapter 27 Residential Density Bonus is added as follows: Chapter 27 - Residential Density Bonus Sections: 27.010 Purpose and Intent 27,020 Definitions 27.030 Eligibility Criteria 27.040 Density Bonus Calculation 27,050 Development Standards for Affordable Units 27.060 Density Bonus for Development at Child Care Facility 27.070 Development Concessions and Incentives 27,080 General Application Requirements 27.090 Density Bonus Housing Agreement 27.010 - Purpose and Intent This chapter is intended to provide incentives for the production of housing for Very Low, Lower Income, Moderate or Senior Housing in accordance with California state law. The purpose of this chapter is to: a) Comply with the state density bonus law in accordance with the requirements California Government Code Section 65915 and amendments and successor statutes. b) Establish procedures for implementing the state density bonus requirements as set forth in California Government Code Section 65915, as amended. c) Facilitate the development of affordable housing consistent with the goals, policies, and programs of the City's Housing Element. 27.020 - Definitions Whenever the following terms are used in this chapter, they shall have the meaning established by this section: A. Affordable Rent, Monthly housing expenses, including a reasonable allowance for utilities, for Rental Restricted Affordable Units reserved for Very Low or Lower Income Households, not exceeding the following calculations: Planning Commission Resolution No. 2014-38 Page 7 |. Very Low Income: 5Opercent ofthe area median income for Sonoma County, adjusted for household size, multiplied by5Opercent and divided by 12, Lower Income: 60 percent of the area median income for Sonoma County, adjusted for household size, multiplied bv3Opercent and divided by 12. B. Child Care Center. See the definition of"Child Care Center" in Glossary. C. Concession or Incentive. Used interchangeably means such nsgu|uhzm concessions as specified in California Government Code Section 65915 subdivisions /d> and (h) inu|uding, but not limited to, the reduction of she development standards or zoning code requirements, direct financial assistance, approval of mixed use zoning inconjunction wdhMhe Housing Development, or any other regulatory incentive which would result in identifiable ocot avoidance or reductions that are offered in addition to a Density Bonus. See Section 27.070 ofthis chapter. D. Density Bonus. A density increase for residential units over the otherwise allowed residential density under the applicable zoning and land use designation onthe date onapplication bdeemed complete. E. Density 8pnmw Housing Agreement. A legally binding agreement between o developer and the City to ensure that the requirements of this chapter are satisfied. The agreement, among other things' shall establish: the number of Restricted Affordable Units, their size' location, terms and conditions of affordability, and production schedule. See Section 27.070 of this Chapter. Density Bonus Units. Those residential units granted pursuant to the provisions of this chapter which exceed the otherwise Moxrnurn Residential Density for the development site. G. Housing Cost. The sum of actual or projected monthly payments for all of the following associated with for -sale Restricted Affordable Units: principal and interest ono mortgage loan, including any loan insurance fees, property faxes and assessments, fire and casualty insurance, property maintenance and repairs, homeowner association fees, and oreasonable allowance for utilities, H. Housing Development. Construction projectsconsisting offive ormore residential units, including single hzrnik/' nnu|Ufmrni|v' and rnobi|ehnnnen for xo|e or Kant' pursuant tothis chapter. i Low Income Household. Households whose income does not exceed the lower income limits applicable to Sonoma Counh/, as published and periodically updated by the State Department of Housing and Community Development pursuant toSection 5O079.5ofthe California Health and Safety Code. Maximum Residential Density. The maximum number ofresidential units permitted bvthe City's General Plan Land Use Element and Zoning Ordinance otthe time of application, excluding the provisions of this ohoofer. If the housing development is within o planned unit development zone. the maximum residential density shall be determined on the basis of the general plan and the maximum density of the underlying zone. Planning Commission Resolution No. 2Ol4-3O Page K. Moderate Income Household. A household whose gross income does not exceed 120 percent ofthe area median income for Sonoma County as published and periodically updated by the Shzhs Department of Housing and Community Development pursuant to Sections 50079.5 and 50052.5 of the California Health and Safety Code. Non -Restricted Unit All units within a Housing Development excluding the Restricted Affordable Units. M. Qualifying Resident. Senior citizens or other persons eligible to reside in Senior Citizen Housing. N. Restricted Affordable Unit. /\ dwelling unit within u Housing Development*hich will be available for Moderate Income Households or Very Low and/or Low Income Households. C>. Senior Citizen Housing. A Housing Development consistent with the California Fair Employment and Housing /\cf (Government Code Section 12900 et seq., including 129559 in particular), which hos been "designed to meet the physical ondsocia|noedsofsenicxcihzeno."undvvhuhothenwisequa|Uieeas"housingfor n|derpeemnn"oothotphnaseisusedinthefedeFo|FairHousingAmendmen1a8ct of 1988 (P1. 100-430) and implementing regulations /24 CFR, pod lOO'subpart B. and as that phrase is used in California Civil Code Section 51.2 and 51.3. P. Very Low Income Household. Households whose income does not exceed the very |mm income limits applicable to Sonoma Counh/, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50105 of the California Health and Safety Code. 27.030 - Eligibility Criteria A. The City shall grant either: a Density Bonus, or a Density Bonus with a Concession or Incentive(s), as set forth in Section 27.070 of this Chapter, to on applicant or developer of u Housing Development, who ognasa to provide one of the l. At least fen percent ofthe total units of the Housing Development as Restricted Affordable Units affordable to Lower Income Households; or 2. At least five percent nfthe total units of the Housing Development as Restricted Affordable Units affordable 10Very Low Income Households; nr ]. ASenior Citizen Housing Development, osdefined herein; or 4, Ten percent ofthe total dwelling units inocommon interest development osdefined inCivil Code section 4lO0for persons and families ofModerate Income Households as defined here|n, provided that all units in the development are offered tothe public for purchase. 27.04O - Density Bonus and Incentive mrConcession Calculation A. The City will allow a Housing Development a Density Bonus and/or a Concessions or Incentive if it meets all the applicable requirements of this chapter, In the event Planning Commission Resolution No. 2Dl4-38 Page that the rninirnurn requirements for granting a Density Bonus cvConcessions cv Incentives as set forth in California Government Code section 65915 are amended or modified after the adoption of this chapter bythe City, then the lowest applicable rninirnurn requirements in section 65915 or successor statutes shall apply. 8. When co|co|ohnQ the required number of Restricted Affordable Units, any resulting decimal fraction shall be rounded to the next larger integer, C. DonsUY Bonus for LOvv Income Households: K o housing developer elects to construct units for Low Income Households, the Housing Development shall be entitled to a density bonus according to the following Density Bonus calculation: | Provision of Low Income Units Percentage Percentage Number of Low Income ~ Density Bonus Incentives or Units' ' Concessions lO% 20% l ll% 21.5% l |2% 23% l 137& 24.5% l 14% 26% l 15% 27.5% l 16% 29% l 17% 30.5% l 18% 32% l 19% 33.5% l 20% 35% 2 D. DendtY Bonus for Very Low Income Households: Ifo housing developer elects to construct units for Very Low Income Households, the Housing Development shall be entitled to o density bonus according to the following Density Bonus | Provision cfVery Low Income Units Percentage e Percentage Number of Very Low � Density Bonus Incentives or Income Units ' Concessions 5% 20% l 6% 22.5% l 7% 25% 7 8% 27.596 l p% 30% ) lO% 32.5% 2 llYC 35% 2 | 15% 35% 3 E. Densitv8onus for Moderate Income Households: |fohousing developer elects to construct units for Moderate Income Households, the Housing Development yhmU be entitled to a density bonus based on the following Density Bonus calculation: Planning Commission Resolution No. 20l4-38 Page 10 Provision of Moderate Income Units Percentage Percentage Number of Moderate- Density Bonus Incentives or Income Units Concessions 10% 5% 1 11% 6% 1 12% 7% 1 13% 8% 1 14% 9% 1 15% 10% 1 16% 11% 1 17% 12% 1 18% 13% 1 19% 14% 1 20% 15% 2 21% 16% 2 22% 17% 2 23% 18% 2 24% 19% 2 25% 20% 2 26% 21% 2 27% 22% 2 28% 23% 2 29% 24% 2 30% 25% 3 31% 26% 3 32% 27% 3 33% 28% 3 34% 29% 3 35% 30% 3 36% 31% 3 37% 32% 3 38% 33% 3 39% 34% 3 40% 35% 3 F. Densitv Bonus for Land Donation: When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land that satisfies the requirements as set forth in subsection 3 of this section, the applicant shall be entitled to a fifteen percent density increase above the otherwise maximum allowable residential density for the entire development calculated as follows: Land Donation Percentage Percentage Very Low- Density Bonus Income Units 10% 15% 11% 16% 12% 17% 13% 18% 14% 19% 15% 20% Planning Commission Resolution No. 2014-38 Page 1 1 Percentage Percentage Very Low- Density Bonus Income Units 16% 21% 17% 22% 18% 23% 19% 24% 20% 25% 21% 26% 22% 27% 23% 28% 24% 29% 25% 30% 26% 31 27% 32% 28% 33% 29% 34% 30% 35% 1. Nothing in this chapter shall be construed to enlarge or diminish the authority of the City to require a developer to donate land as a condition of development. 2. The Density Bonus for land dedication shall be in addition to any other Density Bonus earned pursuant to this section, up to a maximum combined increased density of thirty-five percent above the otherwise maximum allowable residential density for the entire development. 3. An applicant donating land shall be eligible for the increased Density Bonus described in this Section if all the following conditions are met: a. The applicant donates and transfers the land to the City, or to a housing developer approved by the City, no later than the date of approval of the City of the final subdivision map, parcel map, or Housing Development Application for the proposed Housing Development seeking the Density Bonus. b. The developable acreage and zoning classification of the land being transferred are sufficient to permit construction of units affordable to Very Low Income Households in an amount not less than ten percent of the number of residential units of the proposed Housing Development seeking the Density Bonus. c. The land proposed to be donated to the City: is at least one acre in size or sufficient size to permit development of at least 40 residential units; and ii. has the appropriate General Plan designation and is appropriately zoned for development at the density described in paragraph (3) of subsection (c) of Government Code section 65583.2 and successor statutes; and Planning Commission Resolution No. 2014-38 Page 12 iii. is or will be served by adequate public facilities and infrastructure; and k/. is donated no later than the date of oppnzvo| of the hno| subdivision mop. parcel [nop or Housing Development application seeking m [}onsi|v Bonus and has all of the permits and oppnmo|y' other than building permits, necessary for the development of the Very Low Income housing units onthe transferred land; and is within the boundary ofthe proposed development or within one-quarter mile ofthe boundary ofthe proposed development; and vi. has proposed source cffunding for the very low income units prior to the approval of the final subdivision mup, parcel map, orHousing Development application seeking the Density Bonus. 27.05O - Development Standards for Affordable Units A. Restricted Affordable Units shall be constructed concurrently with Non -Restricted Units unless both the City and the applicant agree within the Density Bonus Housing Agreement toonalternative schedule for development. 8, Restricted Affordable Units shall remain restricted and affordable for a period of 30 years, The City may require o longer period of time if required by the construction or mortgage financing assistance pnzgnnm' mortgage insurance program, orrental subsidy program. C. In determining the maximum Affordable Rent or Affordable 3o1ea Price of Restricted Affordable Units, the presumed household size as set forth in the City's Housing Program shall be used, unless the Housing Development issubject to different assumptions imposed by other federal or state regulations. D. Restricted Affordable Units shall be built on-site and be dispersed within the Housing Development, except as permitted in subsection Enfthis Section, The number of bedrooms of the Restricted Affordable Units shall be equivalent to the bedroom mix ofthe Non -Restricted Units in the Housing Development; except that the applicant may include a higher proportion of Restricted Affordable Units with more bedrooms. The design, appearance and general quoUh/ of the Restricted Affordable Units shall be comparable and compatible with the design of the Non -Restricted Units in the Development. The Development shall comply with all applicable Deve|np.ment 3tondmnJa' except those which may be modified osprovided bythis chapter. E. Circumstances may arise in which the public interest would be served by o|kovvng some or all of the Restricted Affordable Units associated with one Housing Development tobeproduced and operated utonalternative development site. Where the applicant and the City so agnae, the resulting linked developments shall be considered o single development for purposes of this chapter. Under these circumstances, the applicant shall be subject to the same requirements of this chapter for the Restricted Affordable Units to be provided on the u|tmmohve Planning Commission Resolution No. 2Ul4-38 Page 13 F. A Oenndv Bonus Housing Agreement, oydescribed in Section 27.090' shall be made a condition of the discretionary permits for all Developments subject to this chapter. The Density Bonus Housing Agreement shall be recorded as m deed restriction on the parcel or parcels on which the Restricted Affordable Units will be constructed. 27.Q60 - Density Bonus for Development qfChild Care Center A. AHousing Development meeting the requirements of Sections 27.030.27I40,and 27.050 above and including o Child Cum Center that will be located on the premises of, oopart of, cxadjacent to, such aHousing Development shall receive either of the following: An additional Density Bonus in an amount of square feet of residential space that |sequal tocxgreater than the amount ofsquare feet |nthe Child Care Center; or 2. An additional Incentive orConcession pursuant toSection 27.070 which results inonidentifiable cost reduction oravoidance. B. When oHousing Development bproviding aChild Care Center inaccordance with this chapter, then the project onndUionsofoppmvo|shoUrequirethm1: l. The Child Care Center care shall remain in operation for operiod oftime that bos long as orlonger than the period oftime during which the affordable units are required toremain affordable; and 2. Of the children who attend the Child Care Center, the children ofVery Low Income Households, Lower Income Households, orpersons o[families ofModerate Income shall equal opercentage that isequal toorgreater than the percentage of affordable units that are required pursuant to Section 27.040. C. The City shall not Lerequired to provide o Density Bonus or Incentive or Concession for Child Care Center ifit makes owritten finding, based upon substantial evidence, that the City has adequate Child Care Centers. 37.070 - Development Concessions and Incentives A. Subject to subsection 8 of this Section, the City shall provide o Concession or Incentive, for qualified Housing Developments, upon the written request of an applicanf. The number of Concessions or Incentives provided shall be as follows: l. For oHousing Development that provides either 5%ofthe units affordable to Very Low income households, or l0%ofthe units affordable to Lower income hnoseho|ds, the developer is entitled to one Concession or Incentive. 2. When the number ofaffordable units bincreased to|0%Very Low income units, or 20% Lower income units, the developer is entitled to two Concessions nrIncentives, 3. When the number of affordable units is increased to 15Y6 Very Low income, cv3O%Lower income, the number ofConcessions cxIncentives is increased tothree. Planning Commission Resolution No. 2Ol4-3V Page 14 B. The City may grant any one ofthe following osoConcession orIncentive: l. Awaiver ormodification ofsite development standards cxomodification ofzoning code orarchitectural design requirements. These include one or more ofthe following /eachitem below |nconsidered o Concession or Incentive): a. Reduced minimum lot sizes and/or dimensions, b. Reduced minimum lot setbacks c. Reduced minimum outdoor and/or privateoutdoor|kingoreo. d. Increased maximum lot coverage e. Increased maximum building height and/or stories. f. Reduced on-site parking standards, including the number cxsize of spaces and garage requirements. g. Reduced minimum building separation requirements. h. Reduced street standards, e.g,reduced minimum street widths. Z Approval ofmixed-use zoning inconjunction wUh the housing project J commercial, office, industrial, or other land uses will reduce the cost of the housing development and ifthe commercial, office, industrial, or other land uses are compatible with the housing project and the exishng or planned development in the area where the proposed housing project will belocated. I Other Incentives or Concessions proposed by the developer or the City which result inidentifiable cost reductions cvavoidance. C. Upon request by the applicant, the City shall not require a vehicular parking ratio, inclusive ofhandicapped and guest parking, that exceeds the following: l. Zero foone bedrooms: one onsifeparking space. 2. Two tothree bedrooms: two ons|teparking spaces. 3. Four and more bedrooms: two and one-half parking spaces. |fthe total number ofparking spaces required for oHousing Development i» other than o whole number, the number shall be rounded up to the next whole number. For purposes of this subsection' o Housing Development may provide onsite pmddnQ through tandem parking oruncovered parking, but not through on*tmetparking. D. The City shall grant |ncnnUve/d orConceoion(s) requested by the applicant unless the City can make a written finding, based upon substantial evidence, of any ofthe following: Planning Commission Resolution No. 2014-38 Page 15 l. The Incentive or Concession is not required in order to provide for affordable housing to Very Low, Low, or Moderate Income Households. 2. The Incentive cvConcession would have specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code' upon public health and safety or ph\a|oa| environment orany real property that |slisted onthe California Register of Historical Resources and for which the City determines there isnofeasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the Housing Development unaffordable 10Very Low, Low, and/or Moderate Income Households. 3. The Incentive cxConcession would becontrary tostate orfederal law, 27.O8Q-General Application Requirements A. An application for Density Bonus, Incentive orConcession shall be made as An application for o density bonus' incentive, concession, waiver, modification or revised dondonJ shall be submitted with the first application for o permit for u Housing Development and ohoU be processed concurrently with those permits. The application shall benno form prescribed by the Community Development Director and shall include the following information: u. A brief description of the proposed Housing Development, including the 1o|o| number cfdwelling units, Restricted Affordable Units, and Density Bonus Units proposed. b. The zoning and general plan designations and assessor's parcel number(s) of the project site, and o description of any Density Bonus, Incentive, orConcession, requested. c /\ vicinity map and preliminary site plan, drawn foscale, including building footprints, dhvewoyondporNng|oyout. d. If o Concession or Incentive is requested, the application shall provide evidence as to why the Concession or Incentive is necessary to provide the Restricted Affordable Units in accordance with Section 27.O7Onfthis Chapter. Such evidence shall include, but isnot limited 1nonexplanation ostothe actual cost reduction achieved through the concession orincentive and how the cost reduction allows the applicant to provide the Restricted Affordable Units, and any supporting documentation. e. Level of affordability of the Restricted Affordable Units and proposed method to ensure affordability. If Density Bonus or Concession or Incentive is requested for land donation, the application shall show the location ofthe land to be dediooted, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) and Section 27.O4O/Rcan bemade. Planning Commission Resolution No. 2Ul4-38 Page 16 2. In accordance with State |ow' neither the granting of o Concession or Incentive, nor the granting ofoDensity Bonus, shall beinterpreted, inand ofitself, |orequire ogeneral plan amendment, zoning change, variance, nrother discretionary approval. 3. This Chapter irnp|ernen|o State Density Bonus Law. Any Density Bonus, Incentive orConcession sought byonApplicant shall bemade pursuant tnthis chapter and may not becombined with similar requests under State Density Bonus law, 27.090 - Density Bonus Housing Agreement A. Applicants for a Density Bonus, Incentive or Concession shall enter info a Density Bonus Housing Agreement (Agreement) with the City, approved by the City Council. B. Following execution ofthe Agreement bvall parties, the completed Agreement shall be recorded and the conditions filed and recorded on the parcel to be developed and/or an alternative site for the proposed Housing Development, if the Housing Development isoff-site. C. The approval nfthe Agreement shall fake place prior 10tentative map approval, and recordation shall take place prior to final map approval, or, where a map is not being processed, prior tuSite Plan and An:hi|ectunz|Review. D. The Agreement shall run with land to be developed and/or the alternative site for the proposed Housing Development and bebinding onall future owners and successors iDinterest and shall include o10minimum, the following: l. The total number of units approved for the Development, including the number cfRestricted Affordable Units. 2. /\ description of the household income group to be accommodated by the Restricted Affordable Units' and the standards for determining the corresponding Affordable Rent orAffordable Sales Price. 3. The proposed location, dwelling unit sizes (square feet), and number of bedrooms ofthe Restricted Affordable Units. 4. Tenn of use restrictions for Restricted /\MnFdob|e Units Vfo1least 3Oyears for Low and Very Low units. 5. Aschedule for completion and occupancy ofRestricted Affordable Units. 6. A description nfany Concession or Incentive, if any, being provided by theCity. 7. A description for remedies of breach of the agreement by either party (the City may identify tenants or qualified purchasers as third party beneficiaries under the AAnsemnnU. 8. Other provisions to ensure implementation and compliance with this chapter, Planning Commission ResoluUonNo. 2Dl4-3O Page 17 E In the case of for -sale Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the initial sale and use of Restricted Affordable Units during the applicable use restriction period: l. Restricted Affordable Units shall, upon initial sale, be sold to eligible Moderate Income Households otonAffordable Sales Price and Housing Cont or to Qualified Residents (.e, maintained as Senior citizen housing) osdefined bythis chapter. 2. Restricted Affordable Unit shall be initially owner -occupied by eligible Moderate Income Households or by Qualified Residents inthe 000n of Senior citizen housing. 3. The indhu| purchaser of each Restricted Affordable Unit shall execute an instrument or agreement approved by the City restricting the sale of the Restricted AffonJoU|o Unit in accordance with this chapter during the applicable use restriction period, Such instrument or agreement shall be recorded against the parcel containing the Restricted Affordable Unit and shall contain such provisions as the City may require ensuring continued compliance with this chapter and the state Density Bonus Law, In the case of rental Housing Developments, the Density Bonus Housing Agreement shall provide for the following conditions governing the use of Restricted Affordable Units during the use restriction period: l. The rules and procedures for qualifying tenants, establish Affordable Rent filling vacancies, and maintaining Restricted Affordable Units for qualified Provisions requiring owners toverify tenant incomes and maintain books and records to demonstrate compliance with this chapter. Provisions requiring owners hosubmit onannual report |othe City, which includes the name, oddness' and income of each person occupying Restricted Affordable Units, and which identifies the bedroom size and monthly rent or cost of each Restricted Affordable Unit. Section 11. Except as amended herein, the City of Petaluma |nnolemenUng Zoning Ordinance, Ordinance No. 2300 N.C.S. remains unchanged and in full force and effect. NOW, THEREFORE, BE IT FURTHER ORDAINED BY THE COUNCIL OPTHE CITY OF PETAULNA THAT THE PETALUMA SMARTCODE, ORDINANCE NO. 2470 N.C.S. IS HEREBY AMENDED AS FOLLOWS: Section 12. Section 9.lOD2Oofthe SmortCodnisamended toreplace the definition of "Emergency Shelter" and to add definitions for "Supportive Housing," "Transitional Housing," and "Target Population" as follows: Emergency Shelter. Emergency shelter means housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless Planning Commission Resolution No. 20l4-38 Page 18 Supportive Housing. Housing with no limit on length of stay, that is occupied bvthe Target Population, and that is linked to on onsite oroffsite service that assists the supportive housing resident in retaining the housing' improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Supportive housing is u residential use subject only to those restrictions that apply to other residential uses ofthe same type inthe same zone. Target Population.Persons with low incomes who have one ormore disabilities, including mental iUnes. HIV or AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lonkanman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people. Transitional Housing. Buildings configured osrental housing developments, but under program requirements that require the termination ofassistance and recirculating of the assisted unit to another eligible program recipient oto predetermined future point in time that shall be no |oo than six months from the beginning of the assistance. Transitional housing |so naddenho| use subject toonly those restrictions that apply to o1her residential uses ofthe same type inthe same zone. Section 13. Except osamended herein, the City ofPetaluma SmortCode'Ordinance No. 247ON.C.3.'remains unchanged and infull force and effect. Section 14. Severabilitv. If any section, subsection, sentence, clause, phrase or word cfthis ordinance bfor any reason held tobounconstitutional, unlawful cr otherwise invalid bvo court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity ofthe remaining portions ofthis ordinance. The City Council ofthe City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful orotherwise invalid. Section 15. Effective Date. This ordinance shall become effective thirty /5O>days after the date ofits adoption bythe Petaluma City Council. Section 16. Pnstinq/Pob|ishinoofNotice. The City Clerk ishereby directed topublish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and other applicable law, Planning Commission ResoluhonNo. 2Ol4-38 Page 19