Title
REF220020 - GENERAL PLAN HOUSING ELEMENT SIXTH CYCLE UPDATE
Receive a status report of the draft Sixth Cycle Housing Element.
Project Location: Unincorporated County of Monterey
Proposed CEQA Action: Statutory exemption pursuant to Section 15262 of the California Environmental Quality Act (“CEQA”) Guidelines.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive a status update on the draft Sixth Cycle Housing Element; and
b. Provide direction to staff as appropriate.
SUMMARY:
On June 11, 2024, the Board of Supervisors considered the draft Sixth Cycle Housing Element (“HEU6”) and gave staff direction to revise the draft sites inventory to:
- Include the County-owned East Laurel Campus in Salinas;
- Remove the following opportunity sites:
o 1-4 (Airport/Olmsted/Tarpy Flats),
o 9-10 (Rogge Road, Bolsa Knolls),
o 14 and 55-57 (Aromas),
o 46 and 48-49 (Carmel Valley),
o 61-69 (Airport/Olmsted/Tarpy Flats),
o 71-72 (Cypress Church on Highway 68), and
o 76 (Rancho Cielo).
- Analyze the potential addition in the sites inventory of eleven new parcels (nine “sites”) located in Las Lomas, Pajaro, Carmel Valley, and City of Marina, respectively.
- Integrate the Board directed revisions to the HEU6, submit the revised draft HEU6 to the California Housing and Community Development Department (“CA HCD”) for its first review, and return to the Board to provide information on the revised draft HEU6.
Staff worked with Harris & Associates (consultant) to update the draft HEU6 and incorporate the changes recommended by the Board. The revised capacity assumptions for the remaining sites will be available on August 12, 2024 at the following link: County of Monterey Draft Housing Element Sixth Cycle Update (2023-2031). To meet the County’s assigned Regional Housing Needs Allocation (“RHNA”) plus the buffers to avoid “no net loss” pursuant to state law, and to address comments during review of the draft, staff revised the allocation of units across the four income categories to include assumptions of deeper affordability on many of the sites. These deeper affordability assumptions increase the possibility that a mid-8-year cycle adjustment could be triggered if sites develop with lower levels of affordable units than assumed, and if the remaining sites do not have the capacity to accommodate the remaining RHNA obligations for any one income category.
DISCUSSION:
With revisions to the HEU6 incorporated, the updated draft would accommodate the development of 1,564 (versus 1,217 in the prior draft) Extremely Low-/Very Low-Income units, 1,065 (versus 1,023) Low-Income units, 748 (versus 869) Moderate-Income units, and 1,229 (versus 6,359) Above Moderate-Income units for a total of 4,606 (versus 9,468) units, excluding the pipeline projects.
Deleted Sites:
In addition to the sites deleted from the draft that are listed in the summary, the owner of Site 44 in Carmel Valley provided written request on June 25, 2024 to be removed from the Housing Element update as an opportunity site (ATTACHMENT A). This 29-acre highest-resource parcel in Carmel Valley had been calculated for a potential 24 very low-income units, 24 low-income units, 32 moderate-income units, and 389 above moderate-income units for a total of 389 housing units.
Added Sites:
Upon studying additional sites recommended by the Board, staff recognizes and anticipates certain parcels, particularly those within the communities of Pajaro and Las Lomas, may have constraints beyond the County’s control or may stray too far from the CA HCD’s guidance in identifying opportunity sites. These constraints include being non-vacant, low resource, and lacking a reasonable expectation that these sites can be developed in the 8-year planning cycle. Further, two of the highest resource parcels in Carmel Valley that were added are in the very high fire hazard severity zone. Staff has been advised that CA HCD is likely to make findings citing regarding the viability of the sites in their review of our draft.
A parcel that the Board directed staff to analyze as an opportunity site includes addition of a parcel within the City of Marina (“City”) boundaries that was proposed by City staff for inclusion in the County’s sites inventory (see correspondence dated June 21, 2024 - ATTACHMENT B). The City’s Community Development Director, Guido F. Persicone, proposes a 46-acre parcel owned by the University of California (“UC”) Regents within City boundaries and proximate to the California State University at Monterey Bay (“CSUMB”). However, no written agreement with the City or the UC is in place that would provide the County any certainty to avail the property for housing during this 8-year planning cycle (2023-2031). A policy has been added to the Housing Element that calls for an agreement with City of Marina as part of Program H-3.D. Email correspondence on July 23, 2024, with Lawrence Samuels, Senior Advisor the Chancellor, provides clarification that “UCSC has no plans to develop the 8th Street parcel [in the City of Marina], as this does not support a contiguous MBEST development.” (ATTACHMENT C) Staff is researching rules and laws pertaining to “sharing of RHNA” across jurisdictional lines and evaluating potential environmental constraints that may exist to develop this site for housing. Despite some unknowns related to the property, County staff has included the City suggested site in our draft inventory for CA HCD review. It is anticipated that this site, if it is feasible to include, could be considered as an alternative to the site at Blanco and Reservation (which is also owned by UCMBEST) and that both sites would not remain in the final draft. County staff have elected to keep both parcels in at this time as one or both sites in question can be later deleted easier than they could be added.
Modified Housing Policies:
Policies and programs in the HEU6’s Housing Plan Chapter include revisions and clarifications to address some of the site-specific constraints of newly added sites, and in response to comments received during the public review period. The revised draft of the policies and programs include:
• Seek agreement with the City of Marina for the site within the City limits;
• Allow 100% affordable housing projects by-right;
• Explore strategies for preserving permanent housing inventory for permanent residential uses;
• Prepare a feasibility study for incorporating a vacancy tax; and
• Develop a comprehensive program for incentives and concessions intended to remove barriers to housing production by developers.
Timing and Next Steps:
As of the writing of this report, staff intends to publish the revised draft HEU6 on the County website on August 13, 2024 with subsequent submittal to the CA HCD following this update to the Board on August 20, 2024 starting a mandatory 90-day review. CA HCD has up to 90 days to review and provide a response. Staff anticipates the County will receive a list of changes and revisions that must be addressed following CA HCD's review. Staff will update the Board and the public on these efforts after findings are received from CA HCD.
As time is of the essence, staff intends to begin work on the environmental review immediately after the draft is submitted to CA HCD. Once comments are received from CA HCD, staff will simultaneously work to amend the draft HEU6 and align the environmental document to reflect any changes. The environmental document will need to be circulated for public review and comment once completed. This is typically a 45-day public comment period. Staff will then review and respond to comments received during the public comment period. Once the environmental review is complete and the draft HEU6 has been updated to address CA HCD comments, the HEU6 will require review by the Planning Commission for recommendation to the Board of Supervisors to certify the Programmatic Environmental Impact Report (“PEIR”) and to adopt the PEIR. Once adopted by the by Board, staff will transmit the final adopted HEU6 to CA HCD for certification. The timeline, including the steps summarized above, is as follows:
• August 20, 2024
o First submittal to CA HCD - 90 days review period
• August 2024
o Notice of Preparation of a PEIR for 30-day public review period and response to data request from consultant.
• September 2024
o Community Open House
• October 2024
o Airport Land Use Commission meeting - request finding of Draft HEU6 consistency with Airport Land Use Compatibility Plan.
• November/December 2024
o Consideration of and response to CA HCD’s written findings from the 90-day review period.
• January 2025
o Draft HEU6 revisions and reviews
o County submittal and CA HCD 60-day review period of further revised draft HEU6.
o Draft PEIR release for 45-day public review period.
• February 2025
o Status summary to Planning Commission
o Status summary to Board of Supervisors
• Winter/Spring 2025
o Final PEIR release for 10-day public review period.
o Re-zone sites determined in the final HEU6 sites inventory.
• Spring/Summer 2025
o Final PEIR, Findings and Statement of Overriding Considerations (if applicable) - approximately 10 months from final HEU6 sites inventory determination and completed data request submittal to the consultant.
o Planning Commission hearing to recommend Board certification of the Final PEIR and adoption of the HEU6.
o Board of Supervisors consideration of certification of Final PEIR and adoption of HEU6.
o Submit Board adopted HEU6 to CA HCD for certification.
Staff continues to notify interested parties who have requested to be notified of engagement opportunities and public meetings. Written comments and questions about the HEU6 effort continue to be accepted. Requests for notice or any comments and questions are directed to GeneralPlanUpdates@countyofmonterey.gov which is monitored by several County staff, and to Jaime Guthrie at GuthrieJS@countyofmonterey.gov or by phone at (831) 796-6414.
ENVIRONMENTAL REVIEW
Proposed Statutory Exemption
Pursuant to Section 15262 of the CEQA Guidelines, this presentation and workshop are statutorily exempt as early discussion on possible future actions that do not involve a commitment to a project.
Programmatic Environmental Impact Report (PEIR)
Pursuant to Government Code section 65584(a)(2), the County has a mandate to remove governmental barriers to housing production. Preparation of a PEIR is a reasonable action to complement the suite of programs in Chapter 8 to simplify the process for development of housing through the planning period 2023-2031. Opportunity sites within the HEU6 will be analyzed in the PEIR for potential environmental impacts under CEQA. Environmental analysis in the PEIR will contemplate the potential effects of the HEU6 on County resources at a programmatic level.
Future project-specific environmental review for sites analyzed as part of the PEIR “shall be limited to effects on the environment which are peculiar to the parcel or to the project and which were not addressed as significant effects in the prior environmental impact report, or which substantial new information shows will be more significant than described in the prior environmental impact report.” (Public Resources Code section 21083.3(b)).
OTHER AGENCY INVOLVEMENT:
Multiple County departments are involved in the development of the General Plan draft Sixth Cycle Housing Element including the Health Department’s Environmental Health Bureau and its Planning, Evaluation and Policy Unit; Civil Rights Office; County Administrative Office’s Sustainability Program, Homeless Services, and Office of Community Engagement and Strategic Advocacy; Agricultural Commissioner; Department of Emergency Management; Department of Economic Development; Department of Social Services; and the Public Works, Facilities and Parks Department, and the Office of County Counsel.
Staff has coordinated with CA HCD on numerous issues prior to the first submittal of the HEU6.
FINANCING:
Staff time to support the General Plan Elements Updates, including preparing the PEIR, is included in the FY2023-24 Adopted Budget and the FY2024-25 Adopted Budget for HCD Unit 8543, Appropriation Unit HCD002.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
This project supports the Board of Supervisors’ Strategic Initiative with revision of the Housing Element for the Sixth Cycle Update which will contribute to strengthening a diversified and healthy community by removing barriers to potential housing development and promoting jobs/housing balance. Additionally, the Board’s Administration Strategic Initiative of the Housing Element Sixth Cycle Update would include strategies to ease the discretionary review process of potential housing development for the effective and efficient management of resources.
The Board has discussed four guiding principles to consider in developing housing programs as follows:
1. Meet the housing needs of residents and workforce;
2. Combat housing discrimination;
3. Use land efficiently; and
4. Implement a meaningfully inclusive process.
The Sixth Cycle Housing Element will further these principles and potential revisions to the draft on the “sites inventory” are being contemplated that will balance the goal of meeting housing needs with the efficient use of land.
Prepared by: Jaime Scott Guthrie, AICP, Senior Planner 831-796-6414
Reviewed and approved by: Craig W. Spencer, HCD Director
The following attachments are on file with the Clerk of the Board:
Attachment A - Email dated June 25, 2024, from owner of Site 44 requesting removal from the Sites Inventory
Attachments B - Letter from City of Marina, dated June 21, 2024
Attachments C - Email dated July 23, 2024, from Senior Advisor to the Chancellor, Lawrence Samuels