TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Talyn Mirzakhanian, Community Development Director
Adam Finestone AICP, Planning Manager
Jaehee Yoon AICP, Senior Planner
SUBJECT:Title
Receive and File the 2023 Sixth Cycle Housing Element Annual Progress Report as Required by the California Department of Housing and Community Development (Community Development Director Mirzakhanian).
RECEIVE AND FILE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council receive and file the Sixth Cycle Housing Element Annual Progress Report for calendar year 2023.
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FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action. By filing the report with the California Department of Housing and Community Development (HCD) and the State of California Office of Planning and Research (OPR), the City will be in compliance with Government Code Section 65400.
BACKGROUND:
The Housing Element is one of the State-mandated Elements of a General Plan. The current sixth cycle planning period for the Housing Elements of cities in the Southern California Association of Governments (SCAG) region extends through 2029. The ’Citys 2021-2029 Housing Element <https://www.manhattanbeach.gov/home/showpublisheddocument/52869/638266728015770000> was initially adopted by the City Council on March 22, 2022, followed by a subsequent adoption on September 23, 2022, with revisions. Upon establishment of the Residential Overlay District (ROD) via zoning map, General Plan, and municipal code text amendments (adoption of Chapter 10.50 of the Manhattan Beach Municipal Code), and incorporation of technical modifications to the adopted Housing Element, the City obtained HCD certification on July 27, 2023.
Pursuant to Government Code Section 65400, by April 1 of each year of the planning period, every municipality shall prepare and submit a Housing Element Annual Progress Report to HCD and OPR. Prior to filing the report with HCD and OPR, the report must be considered by the City Council at a public meeting, where members of the public can provide oral testimony and written comments. The State uses the information submitted by the City to identify statewide trends in the land use decision making process, and to determine how local planning and development activities relate to statewide planning goals, policies, and housing needs.
DISCUSSION:
The Housing Element Annual Progress Report is prepared on standard forms provided by HCD. The information contained in the Annual Progress Report includes, but is not limited to, the number of building permits issued for construction of new housing units and the associated affordability level, the number of residential demolition permits issued as it related to new construction, the submittal and approval of planning entitlements proposing residential development, and the City’s progress toward the Regional Housing Needs Assessment (RHNA) allocation.
Each jurisdiction’s RHNA allocation is prescribed by SCAG, which is derived from the statewide allocation. SCAG prescribes the number of additional housing units necessary at different income levels in order for each municipality in the region to accommodate their fair share of anticipated population growth during the planning period. The 6th Cycle (2021-2029) RHNA obligations, as allocated by SCAG, set forth the goal of 774 units for Manhattan Beach during the planning period, divided into the following four household income categories:
• Very-Low Income - 322 units
• Low Income - 165 units
• Moderate Income - 155 units
• Above-Moderate Income - 132 units
Between January 2023 and December 2023, the City issued 90 building permits for new residential construction, all at above-moderate income level. However, 57 corresponding demolition permits were issued, which resulted in 33 net new units. While the City has not issued any permits for new residential construction at extremely-low, very-low, and moderate income levels during this time period, the City continues to encourage and promote the development of affordable housing in order to meet the goals of the City, SCAG, and HCD, as detailed in the adopted Sixth Cycle Housing Element, which include, but are not limited to:
• Implementation of the mansionization ordinance and prevention of lot mergers that reduce future housing capacity.
• Providing lot consolidation incentives for multi-family residential developments and assisting affordable housing developers in identifying opportunities for lot consolidation.
• Ensuring the City’s Density Bonus ordinance is consistent with State law.
• Supporting fair/equal housing programs.
• Allowing by-right development and rezoning for qualifying sites identified to accommodate the lower-income RHNA units.
• Preserving existing affordable senior housing.
• Encouraging the development of affordable accessory dwelling units (ADU).
In total, the Sixth Cycle Housing Element includes 31 programs that cover various areas to continue to encourage and promote the development of affordable housing. Progress on these programs is documented in the attached report.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach and notification was not required for this item.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA and no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT:
1. 2023 Housing Element Annual Progress Report