HomeMy WebLinkAboutResolution 2018-170 N.C.S. 11/19/2018Resolution No. 2018-170 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
AMENDING THE CITY'S INCLUSIONARY HOUSING PROGRAM,
PROGRAM 4.3 IN THE CITY OF PETALUMA's GENERAL PLAN 2025,
2015-2023 HOUSING ELEMENT AS ADOPTED BY
RESOLUTION NO. 2014-190 N.C.S.
WHEREAS, the California Planning and Zoning Law, Government Code Section 65000
et seq. ("Planning Law"), in Section 65300 requires California cities to prepare and adopt general
plans to guide future development of the city, and specifies in Section 65302 the mandatory
elements general plans must contain, including housing elements; and
WHEREAS, Section 65585, subdivision (a) of the Planning Law requires consideration
of guidelines adopted by the California State Department of Housing and Community
Development ("HCD") in Health and Safety Code Section 50459 in the preparation of housing
elements; and
WHEREAS, Section 65588, subdivision (e) of the Planning Law prescribes the timetable
for complying with housing element update requirements; and
WHEREAS, on May 19, 2008, the City Council approved Resolution No. 2008-085
N.C.S., adopting the City of Petaluma General Plan 2025 ("General Plan"), 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, Section 65585 of the Planning Law requires that local agencies submit
proposed housing element amendments to HCD for review 60 days prior to adoption, and
requires that local legislative bodies consider HCD findings prior to adoption of housing element
amendments, if such findings are made available within the 60 day review period, and permits
local legislative bodies to adopt housing element amendments without HCD findings if they are
not made available within the review period; and
WHEREAS, HCD reviewed the Petaluma Housing Element 2015-2023 as presented to
the Planning Commission on October 28, 2014, and determined that the element meets the
requirements of the Planning Law; and
WHEREAS, on December 1, 2014, the City Council approved Resolution No. 2014-190
N.C.S., adopting the Petaluma 2015-2023 Housing Element; and
WHEREAS, on January 23, 2015, the HCD approved the 2015-2023 Housing Element
as approved by the City Council; and
WHEREAS, on November 2, 2015 the City Council approved Resolution No. 2015-171
N.C.S., adopting a First Amendment to the 2015-2023 Housing Element Program 4.3 to ensure
consistency between the City's Housing Element and the holding in Palmer/Sixth Street
Properties, L.P. v. City of Los Angeles, (2009) 175 CA 411 1396, which held that the Costa -
Resolution No. 2018-170 N.C.S. Page 1
Hawkins Act, Civil Code section 1954.53(a), prohibits local agencies from requiring on-site
inclusionary housing in rental housing developments; and
WHEREAS, recent amendments to the Planning Law pursuant to AB -1505, which took
effect January 1, 2018 and are codified in sections 65850 and 65850. 1, permit cities to adopt
ordinances requiring inclusion of affordable residential units for moderate, low, very low, and
extremely low income households in rental housing developments, and require that such
ordinances provide alternate means of compliance that may include, but are not limited to, in -lieu
fees, land dedication, off-site construction, or acquisition and rehabilitation of existing units, and
grant HCD the authority to review certain such ordinances that require more than 15 percent of
the total number of units in a residential rental development to be affordable to households
earning 80 percent or less of the area median income; and
WHEREAS, the 2015-2023 Housing Element as amended identifies and analyzes
existing and projected housing needs and states goals and policies, and quantifies objectives and
special programs for the reservation, improvement and development of housing in the City from
2015 through 2023; and
WHEREAS, the City has 2,161 housing units in pipeline development but only 75 units
are affordable in accordance with the City's then current inclusionary housing requirements; and
WHEREAS, in -lieu fees collected by the City in accordance with Program 4.3 of the
2015-2023 Housing Element are insufficient to fund construction of sufficient numbers of
affordable housing units to meet the City's projected housing needs; and
WHEREAS, on February 12, 2018 the City Council held a workshop to discuss
inclusionary housing policies and directed staff to prepare amendments to the 2015-2023
Housing Element and other legislative documents as needed to utilize the authority provided in
AB -1505 to require construction of on-site inclusionary units in residential rental developments;
and
WHEREAS, the City contracted with Economic and Planning Systems (EPS) to
complete a nexus study ("EPS Study") to identify funds the City could lawfully recover from
inclusionary housing in lieu fees and to provide information and analysis in support of potential
updates to the City's affordable housing in lieu fee; and,
WHEREAS, EPS issued an administrative report in August 2017 that detailed a gap
between market prices of housing in the City and prices affordable to very low, low, and
moderate income households, and included a proposed per square foot in lieu fee for rental and
ownership projects based on the affordability gap; and
WHEREAS, it is the desire of the City Council to approve a Second Amendment to the
inclusionary housing policy contained in the 2015-2023 Housing Element in accordance with the
authority in AB -1505 to require on-site inclusionary housing units as part of residential housing
development projects, both homeownership and rental, in the City to ensure the provision of
affordable housing to help address the City's Regional Housing Need Allocation and the acute
housing crisis in Sonoma County, and to provide for alternative means of compliance as AB -
1505 requires; and
Resolution No. 2018-170 N.C.S. Page 2
WHEREAS, it is the desire of the City Council to increase the City's Inclusionary
Housing In -Lieu fee in accordance with the EPS Study to apply to developers of residential
housing that the Council permits to make a payment in -lieu of providing affordable housing on
site to more closely approach developers' fair -share responsibility toward contributing to
implementing the City's 2015-2023 Housing Element policies and programs; and
WHEREAS, the proposed Second Amendment to the 2015-2023 Housing Element is
substantially consistent with the 2015-2023 Housing Element as adopted by the City Council on
December 1, 2014, because it implements the same objectives; and
WHEREAS, on December 1, 2014, the City Council adopted Resolution No. 2014-189
N.C.S. approving a negative declaration of environmental impact of the 2015-2023 Housing
Element, all in accordance with the requirements of Public Resources Code Section 21000 et.
seq. ("CEQA"), the CEQA Guidelines at 14 CFR 15000 et seq. ("CEQA Guidelines") and the
City of Petaluma Environmental Review Guidelines; and
WHEREAS, the proposed Second Amendment to the 2015-2023 Housing Element is
categorically exempt from environmental review under Section 15061(b)(3) of the CEQA
Guidelines because CEQA applies only to projects that have the potential for causing a
significant effect on the environment, and it can be seen with certainty that there is no possibility
that the proposed Second Amendment to the 2015-2023 Housing Element may have a significant
effect on the environment, since the proposed amendment does not create changes in the physical
environment, does not result in any changes to the General Plan or Implementing Zoning
Ordinance land use policies, and any development that occurs in the future subject to such
standards will undergo an independent analysis pursuant to the requirements of CEQA; and
WHEREAS, on May 31, 2018, public notice of the June 12, 2018 public hearing before
the Planning Commission to consider the proposed Second Amendment to the 2015-2023
Housing Element was published in the Argus Courier as an eighth page display ad in accordance
with the requirements of Government Code sections 65090, 65091 and 65853; and
WHEREAS, in accordance with Section 65585, subdivision (b)(2) of Planning Law, the
public comments that the City received regarding the proposed Second Amendment to the 2015-
2023 Housing Element were collected and provided to the members of the Planning
Commission; and
WHEREAS, on June 12, 2018, the Planning Commission held a duly noticed public
hearing to consider the proposed Second Amendment to the 2015-2023 Housing Element and
after discussion continued the item to a date uncertain to provide time for further discussion at a
joint workshop of the City Council and Planning Commission; and
WHEREAS, on July 9, 2018, the City Council and Planning Commission held a duly
noticed joint workshop to consider amendments to the City's inclusionary housing program; and
WHEREAS, on July 12, 2018, public notice of the July 24, 2018 public hearing before
the Planning Commission to consider the proposed Second Amendment to the 2015-2023
Housing Element was published in the Argus Courier as an eighth page display ad in accordance
with the requirements of Government Code sections 65090, 65091, and 65853; and
Resolution No. 2018-170 N.C.S. Page 3
WHEREAS, in accordance with Section 65585, subdivision (b)(2) of Planning Law, the
public comments that the City has received regarding the proposed Second Amendment to the
2015-2023 Housing Element have been collected and provided to the members of the Planning
Commission; and
WHEREAS, on July 24, 2018, the Planning Commission held a duly noticed public
hearing to consider the proposed Second Amendment to the 2015-2023 Housing Element and
adopted a resolution recommending the City Council amend, subject to HCD approval, the
City's Inclusionary Housing Program, Program 4.3 in the City of Petaluma's General Plan 2025,
2015-2023 Housing Element; and
WHEREAS, in accordance with Resolution No. 2018-24 adopted by the Planning
Commission on July 24, 2018, and the requirements of Section 65585, subdivision (b)(1) of the
Planning Law, the Clerk of the Commission and/or City staff have submitted the proposed
Second Amendment to the 2015-2023 Housing Element to HCD for review and approval; and
WHEREAS, on October 25, 2018, HCD reviewed the proposed changes and determined
that the proposed amendment would not adversely impact the current compliance status of the
housing element once adopted; and
WHEREAS, on November 8, 2018, public notice of the November 19, 2018 public
hearing before the City Council to consider the proposed Second Amendment to the 2015-2023
Housing Element was published in the Argus Courier as an eighth page display ad in accordance
with the requirements of Government Code sections 65090, 65091 and 65853; and
WHEREAS, in accordance with Section 65585, subdivision (b)(2) of Planning Law, the
public comments that the City received regarding the proposed Second Amendment to the 2015-
2023 Housing Element were collected and provided to the members of the City Council; and
WHEREAS, on November 19, 2018, the City Council held a duly noticed public hearing
to consider the proposed Second Amendment to the 2015-2023 Housing Element, the public
comments received and any findings provided by HCD;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
1. The above recitals are true and correct and are incorporated into this resolution as
findings of the City Council.
2. The Second Amendment to the 2015-2023 Housing Element is exempt from CEQA
pursuant to Section 15061(b)(3) of the CEQA Guidelines because CEQA applies only
to projects that have a potential for causing a significant effect on the environment
and adoption of the Second Amendment to the 2015-2023 Housing Element does not
create changes to the physical environment.
3. Based on the findings and conclusions contained in this resolution, the City Council
finds it in the public interest to amend, and hereby amends Program 4.3 of the City of
Petaluma 2015-2023 Housing Element in Chapter 11 of the City's General Plan 2025
to read as follows:
Resolution No. 2018-170 N.C.S. Page 4
Program 4.3:
a. By provisions incorporated into the City's Implementing Zoning Ordinance,
require residential projects, both homeownership and rental projects consisting of
five or more units to provide 15% of the number of units in the project on-site as
affordable housing with affordability restrictions of at least a 45 year duration for
homeownership developments and affordability restrictions for of at least a 55
year duration for rental developments.
b. The City Council in its sole discretion may approve alternative compliance in one
of the following forms:
i. Donation of a portion of the project site or an off-site property to the City or a
non-profit organization deemed acceptable by the City for development of
affordable housing; or
ii. Payment of a fee in -lieu of providing affordable housing on site established by
the City's adopted fee schedule; or
iii. Use of an alternative method, such provision of a smaller percentage of on-
site units, and/or donation of a separate parcel of land for development of
affordable housing to otherwise satisfy the objectives of the City's
inclusionary policies reflected in this program.
4. Except as amended herein, the City of Petaluma 2015-2023 Housing Element
continues unchanged and in full force and effect.
5. Submission to HCD. Staff is directed to submit the Housing Element amendment
pursuant to this resolution to HCD for approval in accordance Section 65585,
subdivision (g) of the Planning Law.
6. Effective Date. This amendment shall take effect thirty days from the date of its
adoption 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. 4th
763, 787, fn. 9.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the
Council of the City of Petaluma at a Regular meeting on the 19'h day of November
2018, by the following vote:
AYES: Albertson; Barrett; Mayor Glass; Vice Mayor Healy; Kearney; King; Miller
NOES: None
ABSENT: None
ABSTAIN: None
E
ATTEST:
City Clerk
s'
ayor
Resolution No. 2018-170 N.C.S. Page 5