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Amendment to the Housing Element of the Gen Plan F-98RESOLUTION NO. 6_60 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE 1991 HOUSING ELEMENT OF THE GENERAL PLAN OF THE CITY OF ROLLING HILLS AND A NEGATIVE DECLARATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT THE CITY COUNCIL OF THE CITY OF ROLLING HILLS DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: SECTION 1. Pursuant to the requirements of Government Code Section 65588(a), the City of Rolling Hills has reviewed the Housing Element of the General Plan of the City and has determined that it is appropriate to revise that Element to reflect the results of this review. SECTION 2. The City prepared a draft revised Housing Element and submitted it to the state Department of Housing and Community Development ("HCD") for review on November 5, 1991 pursuant to Government Code Section 65585(b). HCD's comments on the draft were received by the City in the form of a letter dated December 20, 1991. SECTION 3. Pursuant to Government Code Section 65352,copies of the revised draft have been provided to the Cities of Rancho Palos Verdes and Rolling Hills Estates, the County of Los Angeles, and the Los Angeles County Local Agency Formation Commission. SECTION 4. Pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. ("CEQA"), the State CEQA Guidelines, California Code of Regulations, Title 14, Sections 15000 et seq., and the City's Local CEQA Guidelines, the City prepared an initial- study and determined that there was no substantial evidence that the adoption of the revised Housing Element may have a significant effect on the environment. Accordingly, a negative declaration was prepared and notice of that fact was given in the manner required by law. SECTION 5. A duly noticed public hearing before the Planning Commission to consider the proposed negative declaration and the revised Housing Element was held on November 19, 1991 at which time public comments on the negative declaration and revised Housing Element were received by the Commission. A duly notice public hearing before the City Council to consider the proposed negative declaration and the revised Housing Element was held on December 23, 1991 at which time further public comments were received by the Council. SECTION 6. a644.mgc Based upon the facts contained in this resolution, those contained in the staff reports and other components of the legislative record, those contained in the proposed negative declaration and revised Housing Element, and the public comments received by the Planning Commission and City Council, and the written recommendation of the Planning Commission pursuant to Government Code Section 65354, the City Council hereby finds as follows: (a) The City Council considered the proposed negative declaration together with comments upon it received in the public review process and finds that there is no substantial evidence that the adoption of the revised Housing Element will have a significant effect on the environment. (b) The City has reviewed the Housing Element Guidelines adopted by HCD pursuant to Section 50459 of the Health and Safety Code and the findings contained in HCD's comment letter of December 20, 1991. The City Council has revised the draft in response to some of those comments and finds that it is not necessary to make changes in response to other comments for the reasons stated by the City's consultant in a letter to the City Manager dated December 23, 1991 which is incorporated herein as if set out in full. (c) The revised Housing Element is in full compliance with the requirements of Government Code Sections 65580 - 65589.8 as demonstrated by the analysis set forth by the consultant's letter of December 23, 1991 and in the element itself. (d) The revised Housing Element is consistent with the other elements of the General Plan because the revised Housing Element uses the land use designations of the Land Use Element and those designations in turn are reflective of, and consistent with, the policies and provisions of the remaining elements of the General Plan. (e) The housing goals, objectives, and policies stated in the revised Housing Element are appropriate for the City of Rolling Hills and will contribute to the attainment of the state housing goal. (f) The adoption of the revised Housing Element will aid the City's efforts to assist in the development of housing for all members of the community. (g) For the foregoing reasons, the adoption of the revised Housing Element is in the public interest. SECTION 7. The City Council of the City of Rolling Hills hereby adopts the proposed negative declaration and approves the revised draft Housing Element, as amended by the suggested a644.mgc changes stated in the consultant's letter of December 23, 1991, as the 1991 Housing Element of the General Plan of the City of Rolling Hills. SECTION 8. The City Clerk is hereby directed to distribute copies of the 1991 Housing Element of the General Plan of the City of Rolling Hills as provided in Section 65357 of the California Government Code. PASSED, APPROVED AND ADOPTED this 23d day of December 1991. ATTEST.: Cit Clerk B. AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT FOR THE CITY OP ROLLING HILLS GENERAL PLAN AND ZONING ORDINANCE BETWEEN COTTON/BELAND/ASSOCIATES, INC. AND THE CITY OF ROLLING HILLS. City Manager Nealis advised that the City entered into a contractual relationship with Cotton/Beland/Associates prior to 1991 for services to update the_ City's_ General Planandand Zoning Ordinance documents. All elements of the General Plan have been completed and adopted, and the Zoning Ordinance now needs to be brought up to date. The proposed amendment provides that this be accomplished at a cost not to exceed $8,850. It is expected that the final document will be available in late July or early August. The City Attorney has reviewed and approved the amendment. Mayor Pro Tem Swanson moved adoption of the Amendment to the Professional Services Agreement, Councilmember Heinsheimer seconded and the motion passed without objection. C\ -cam Co L3 VAN City 0/ Rollin C� INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 . (213) 377-1521 FAX: (213) 377-7288 May 15, 1992 Ms. Rebecca Hoepcke Department of Housing and Community Development Division of Housing Policy Development 1800 Third Street, Room 430 P.O. Box 952053 Sacramento, CA 94252-2053 SUBJECT: REVIEW OF THE CITY OF ROLLING HILLS' ADOPTED HOUSING ELEMENT Dear Ms. Hoepcke: In response to the letter from Deputy Director Cook, dated May 4, 1992, we have attached a copy of Resolution No. 660: A Resolution of the City of Rolling Hills adopting the 1991 Housing Element of the General Plan of the City of Rolling Hills and a Negative Declaration pursuant to the California Environmental Quality Act. Also attached is a letter from the City's consultant to the, City Manager, dated December 23, 1991. which is incorporated in the Resolution as if set out in full. When you have reviewed these documents. kindly let us know if our Housing Element now complies with state law. LOLA M. UNGAR PRINCIPAL PLANNER cc: Ms. Karen Warner, AICP Mr. Michael G. Colantuono • RESOLUTION NO. (LGQ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE 1991 HOUSING ELEMENT OF THE GENERAL PLAN OF THE CITY OF ROLLING HILLS AND A NEGATIVE DECLARATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT THE CITY COUNCIL OF THE CITY OF ROLLING HILLS DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: SECTION 1. Pursuant to the requirements of Government Code Section 65588(a), the City of Rolling Hills has reviewed the Housing Element of the General Plan of the City and has determined that it is appropriate to revise that Element to reflect the results of this review. SECTION 2. The City prepared a draft revised Housing Element and submitted it to the state Department of Housing and Community Development ("HCD") for review on November 5, 1991 pursuant to Government Code Section 65585(b). HCD's comments on the draft were received by the City in the form of a letter dated December 20, 1991. SECTION 3. Pursuant to Government Code Section 65352, copies of the revised draft have been provided to the Cities of Rancho Palos Verdes and Rolling Hills Estates, the County of Los Angeles, and the Los Angeles County Local Agency Formation Commission. SECTION 4. Pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. ("CEQA"), the State CEQA Guidelines, California Code of Regulations, Title 14, Sections 15000 et seq., and the City's Local CEQA Guidelines, the City prepared an initial study and determined that there was no substantial evidence that the adoption of the revised Housing Element may have a significant effect on the environment. Accordingly, a negative declaration was prepared and notice of .that fact was given in the manner required by law. SECTION 5. A duly noticed public hearing before the Planning Commission to consider the proposed negative declaration and the revised Housing Element was held on November 19, 1991 at which time public comments on the negative declaration and revised Housing Element were received by the Commission. A duly notice public hearing before the City Council to consider the proposed negative declaration and the revised Housing Element was held on December 23, 1991 at which time further public comments were received by the Council. SECTION 6. a644.mgc Based upon the facts contained in this resolution, those contained in the staff reports and other components of the legislative record, those contained in the proposed negative declaration and revised Housing Element, and the public comments received by the Planning Commission and City Council, and the written recommendation of the Planning Commission pursuant to Government Code Section 65354, the City Council hereby finds as follows: (a) The City Council considered the proposed negative declaration together with comments upon it received in the public review process and finds that there is no substantial evidence that the adoption of the revised Housing Element will have a significant effect on the environment. (b) The City has reviewed the Housing Element Guidelines adopted by HCD pursuant to Section 50459 of the Health and Safety Code and the findings contained in HCD's comment letter of December 20, 1991. The City Council has revised the draft in response to some of those comments and finds that it is not necessary to make changes in response to other comments for the reasons stated by the City's consultant in a letter to the City Manager dated December 23, 1991 which is incorporated herein as if set out in. full. (c) The revised Housing Element is in full compliance with the requirements of Government Code Sections 65580 - 65589.8 as demonstrated by the analysis set forth by the consultant's letter of December 23, 1991 and in the element itself. (d) The revised Housing Element is consistent with the other elements of the General Plan because the revised Housing Element uses the land use designations of the Land Use Element and those designations in turn are reflective of, and consistent with, the policies and provisions of the remaining elements of the General Plan. (e) The housing goals, objectives, and policies stated in the revised Housing Element are appropriate for the City of Rolling Hills and will contribute to the attainment of the state housing goal. (f) The adoption of the revised Housing Element will aid the City's efforts to assist in the development of housing for all members of the community. (g) For the foregoing reasons, the adoption of the revised Housing Element is in the public interest. SECTION 7. The City Council of the City of Rolling Hills hereby adopts the proposed negative declaration and approves the revised draft Housing Element, as amended by the suggested a644.mgc changes stated in the consultant's letter of December 23, 1991, as the 1991 Housing Element of the General Plan of the City of Rolling Hills. SECTION 8. The City Clerk is hereby directed to distribute copies of the 1991 Housing Element of the General Plan of the City of Rolling Hills as provided in Section 65357 of the California Government Code. PASSED, APPROVED AND ADOPTED this 23d day of December 1991. ATTEST: Cit Clerk COTTON/BELANI)/ASSOCIATES, INC. tUKBAN A\t) FNVIRU'`MLN1AI PLA'`NINE•.C-O\St,LTA%1S December 23, 1991 tbd Mr. Craig Ncalis City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, CA 90274 SUBJECT: ROLLING HILLS HOUSING ELEMENT Dear Mr. Ncalis: 1 have reviewed the State Department of Housing and Co ununity 191draft Development's (HCD) comment letter on the October 23, Rolling Hills housing Element; I have included a copy of the State's letter as an appendix for your reference. The State's few comments almost wholly pertain to the issue of adequate zoning for the nine low and moderate income housing units identified as the City's regional need. In my opinion, the Housing Element well documents the overriding constraints to providing multi -family development in thc City. I have prepared the following "response to comments" to clearly identify how each of the State's comments pertaining to affordable housing development are already fully addressed in the Element. I do however suggest a program be added to the element to address thc State's concerns regarding implementation of fair housing policies, and have included proposed wording. HCD Comment: "The land inventory still does not include land zoned for multi -family housing or demonstrate how existing zoning allows the development of housing for low and moderate income households. In our opinion, in order to accommodate the City's share of the regional housing need for low -and moderate -income households, sites should bee a d at two h mum higher densities. The only two zones listed in the element provide for o densities." Response: As described on pages 27 - 29 of the Housing Element, tiiitually all the land in Rolling Hills is subject to Covenants, Conditions and Restrictions (CC&Rs) established in 1936. These CC&Rs set forth two classifications of property and restrict the use of property in each classification to either only single family or single family and limited public use. Neither classification allows for the development of multi -family housing or for commercial, office or 747 CAS1 C;REEN STRfl1 SUIIC 400• r4SAULKA, CALIFOKN1A 91101 ($IA) Ju4-0101 FAX (81813'J4 Our 1,19 sourli vutcAN AVENUE St11TE Ins • ENCINITA' . LAI lfoilNIA 92n:4 (419) 911.4194 FAX (614, 9;2!)043 Mr. Craig Nealis December 23, 1991 Page 2 industrial activity. Modifying the City's zoning to allow for increased residential densities would not alter the development limitations dictated by the CC&Rs. Hence, the City's zoning standards arc not an effective constraint to housing supply. In addition to the CC&Rs, several environmental and infrastructure limitations preclude multi -family development in Rolling Hills; these factors arc discussed on pages 34-35 of the Element. Soils and geologic conditions place great constraints on development in Rolling Hills. The City has experienced major landslides due to soil saturation and instability, and numerous active landslides continue to render significant areas of the City unsafe for _development. New homes in Rolling Hills must utilize septic tanks and leach fields for disposal of sanitary waste due to the lack of sanitary sewers in most of the City. Past experience suggests substantial care and restraint must be exercised in the expansion of any existing systems or the addition of new systems to avoid possible ground instability due to saturation of upper soil layers. This situation and existing infrastructure constraints act to limit densities in the City. HCD Comment: "llic element's programs do not address the City's need for low -and moderate -income housing. Additional programs should be included which clearly indicate the actions Rolling Hills will take to implement the programs and which describe how the City will utilize its land use controls, regulatory concessions and incentives, and appropriatefederal and state financing programs to facilitate the development of low -and moderate -income housing." Response: The Implementing Programs section of the revised draft Housing Element (pages 46-51) is substantially expanded to include a comprehensive list of programs the City intends to implement to address its housing needs. Programs arc included which utilize land use controls, regulatory concessions and incentives, and federal financing programs to facilitate the development of low and moderate income housing. Such programs include: Congregate Housing for Seniors, an Assessment Fee Program, Facilitate New Construction, Density Bonus Program, Neighborhood Sponsored Sewer Districts, and Housing Repair and Temporary Shelter on Landslide Sites. As described on pages 32-33 and in Appendix A of the Element, Rolling Hills is not eligible to receive funding under most State and Federal housing assistance programs. The absence of an "in -need" population or deteriorated housing in Rolling Hills renders the City ineligible for most types of governmental housing assistance. In addition, high rental values in the City preclude the use of I IUD rental assistance programs. The City will :ontinue to contribute what federal housing monies it does receive through the CDBG program to nearby Mr. Craig Ncalis December 23, 1991 Page 3 jurisdictions where land is less expensive to be explicitly used for the construction of affordable senior citizen housing. HCD Comment: 'The element contains a density bonus program which appears to be inconsistent with State law because, among othcr things, the element does not include actions to mitigate the impact of the density restrictions of existing CC&Rs." Response: No provision of the State density bonus law (Section 65915-65918 of the Government Code) requires a jurisdiction to mitigate the impacts of Covenants, Conditions & Restrictions (CC&Rs) on the ability of that jurisdiction to grant a density bonus. It is not clear that the City has any legal authority to modify the development limitations imposed by the CC&Rs. The only relevant case law of which we arc aware involved courts which refused to enforce CC&Rs which imposed occupancy limitations based race and ethnicity. If theoretically there were a way for the City to modify the CC&Rs, there would be a substantial cost associated with both the litigation required to receive a court ruling, and rights.thc necessary compensation to property owners for the taking of their propery for such As noted on page 34 of the Element, the City lacks thc resources to pay legal fees or property owner compensation, or to otherwise subsidize housing costs. HCD Comment: "The element should include program actions to address, and when appropriate and legally possible remove governmental constraints to the maintenance, improvement, and development of housing for all income groups (Section 65583(c)(4)). For example, current zoning does not allow multifamily development. Land use policies are described in the element but specific program actions to mitigate their impact onlow-and moderate -income housing opportunities are not included. Response: As described on page 29 of the Housing Element, development in Rolling Hills is controlled through both City enforced housing adpri v lotely . increasing CC&Rs. City zoningdoes not in itself constrain Reducing zoning standards or densities would not modify thc development limitations dictated by the CC&Rs, which in effect control density. Thus, as demonstrated on pages 28-34 of the Element, there arc no actual governmental constraints to housing supply which it is appropriate and legally possible for the City to remove. The Housing Element does contain program actions to .facilitate thc development of low and moderate income housing, including Congregate Housing for Seniors and Density Bonus programs. In addition, we suggest the following be added to Mr. Craig Ncalis December 23, 1991 Page 4 the third paragraph on page 28 after the sentence which ends "split-level residences to allow greater height.": 'These height limitations reflect the requirements of the CC&R's and therefore do not themselves constrain housing supply." HCD Comment: "Include a program action to_ promote housing opportunities -for all persons (Section 65583(c)(5)). In our opinion, a fair housing program should include an information dissemination component to guarantee full utilization of the housing discrimination referral program. For example, the City could publicize the complaint referral agency through the local media, schools, libraries, the post offlce, tgoals to address the abovnter, or e areas but does not advocacyh housing udeuspecis. fce element includes g program actions to accomplish stated goals and policies." Response: We suggest the following program be added to page 51 of the Housing Element to implement the City's fair housing policy: "Fair Housing Program As a participating City in the Urban County Community Development Block Grant Program, Rolling Hills cooperates with the Fair Housing Congress of Southern California through the Long Beach Fair Housing Foundation to enforce fair housing laws. As a means of increasing public awareness of legal rights under fair housing laws, the City will advertise services offered by the Fair Housing Foundation, including housing discrimination response, landlord -tenant relations, housing information and counseling, and community education programs. Quantified Objective: Provide informational brochures at the public counter and local library, and place period:c advertisements in the local newspaper. Funding Source: CDBG, City budgets. Mr. Craig Ncalis December 23, 1991 Page S Responsible Agency: City Planning Department. Implementation Time Frame: One Year? We look forward to adoption of the housing Element. Sincerely, 4ad&-Md . u Karen A. Warncr AICP MS84.02/c • STATE OF CALIFORNIA - BUSINESS, TRANSPORTATION AND HOUSING AGENCY F-1 s' PETE WILSON, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 1800THIRD STREET, Room 430 P.O BOX 952053 SACRAMENTO, CA 94252-2053 (916) 323-3176 FAX (916) 323-6625 May 4, 1992 Mr. Craig R. Nealis City Manager City of Rolling Hills No. 2 Portuguese Bend Road Rolling Hills, CA 90274 MAY 0 6 1992 CITY rr ROLLING HILLS Dear Mr. Nealis: Re: Review of the City of Rolling Hills, Adopted Housing Element Thank you for submitting the City of Rolling Hills' adopted housing element, received for our review on January 9, 1992. We have reviewed the adopted element pursuant to Government Code Section 65585(h). Our December 20, 1991 review letter indicated that the City's -draft element needed certain revisions to comply with state housing element law. We note that the City has expanded the fair housing program to make information available through the library, public counters, and in the media. However, we are disappointed to see that the City has not addressed our other comments and, in particular, has failed to identify sites to accommodate its regional share of housing need. Beyond the fair housing program, the adopted element appears to be essentially unchanged with respect to our previous comments, and, therefore still requires revisions to bring the element into compliance with state housing element law (Article 10.6 of the Government Code). Our December 20, 1991 review letter (enclosed) describes our recommended revisions. In addition, Section 65585 (f)(2) of Article 10.6 of the Government Code requires that, where a draft element does not substantially comply with the requirements of this article and the legislative body adopts the draft element without changes, the legislative body shall include in its resolution of adoption written findings which explain the reasons the legislative body believes that the draft element substantially complies with the requirements of this article despite the findings of the department. Resolution 660 dated December 23, 1991 adopting the draft element does not adopt findings as required by the law. • Mr. Craig R. Nealis Page 2 For your information, Chapter 889, Statutes of 1991 made changes to housing element law that impact the City's housing element. The legislation became effective January 1, 1992. Rolling Hills should incorporate the appropriate revisions into its current element. The City should pay particular attention to the new requirement relating to the identification of adequate sites which now requires that: "where the inventory of sites ... does not identify adequate sites to accommodate the need for groups of all household income levels ... the program shall provide for sufficient sites with zoning that permits owner -occupied and rental multifamily residential use by right, including density and development standards that could accommodate and facilitate the feasibility of housing for very low- and low-income households. For purposes of this paragraph, the phrase "use by right" shall mean the use does not require a conditional use permit, except when the proposed project is a mixed -use project involving both commercial and residential uses. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5." A copy of the amended housing element law with the changes underlined is also enclosed. We hope that the City will consider our review comments and revise the element to comply with state law. If you have any questions about our comments or would like assistance in the revision of your housing element, please contact Rebecca Hoepcke of our staff at (916) 327-4076. In accordance with requests pursuant to the Public Records Act, we are forwarding copies of this letter to the organizations and persons listed below. Sincerely, koht Thomas B. Cook Deputy Director Enclosures • • Mr. Craig R. Nealis Page 3 cc: Karen Warner, Cotton/Beland/Associates Gary Colyear Carlyle W. Hall, Hall & Phillips Law Firm Jonathan Lehrer-Graiwer, Attorney at Law Western Center on Law & Poverty Fair Housing Council of the San Fernando Valley Mark Johnson, Legal Aid Foundation of Los Angeles Ana Marie Whitaker, California State University Pomona Dennis Rockway, Legal Aid Foundation of Long Beach David Booher, California Housing Council Maya Dunne, City of Irvine Karen Warner, Cotton/Beland/Associates Joe Carreras, Southern California Association of Governments Kathleen Mikkelson, Deputy Attorney General Bob Cervantes, Governor's Office of Planning and Research Dwight Hanson, California Building Industry Association Kerry Harrington Morrison, California Association of Realtors Marc Brown, California Rural Legal Assistance Foundation Rob Wiener, California Coalition for Rural Housing Susan DeSantis, The Planning Center r i • STATE OF CALIFORNIA - BUSINESS, TRANSPORTATION AND HOUSING AGENCY PETE WILSON. Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 1800 THIRD STREET, Room 430 P.O. BOX 952053 SACRAMENTO, CA 94252-2053 (916) 323-3176 FAX (916) 323-6625 December 20, 1991 Mr. Terrence Belanger City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, CA 90274 Dear Mr. Belanger: j '( 0 61992 CITY .OF ROLLING HILLS RE: Review of City of Rolling Hills' Draft Housing Element Thank you for submitting Rolling Hills' draft housing element, received for our review on November 6, 1991. As you know, we are required to review draft housing elements and report our findings to the locality (Government Code 65585(b)). Our review was facilitated by telephone conversations with the City's consultant, Karen Warner, including one on December 18, 1991. This letter summarizes the results of that conversation. The Rolling Hills element amendment responds to some of the issues in our December 12, 1989 review letter. In our opinion, however, there are several areas which require revisions to bring the element into compliance with state housing element law (Article 10.6 of the Government Code). In particular the element still does not include adequate sites to accommodate low- and moderate -income households in the City. The element should: 1. Identify adequate sites available for the construction of housing to meet the City's identified needs (Section 655583 (c) (1)) . The sites identified for potential residential development should be able to accommodate housing which will meet the projected need by income level. The land inventory still does not include land zoned for multifamily housing or demonstrate how existing zoning allows the development of housing for low- and moderate -income households. In our opinion, in order to accommodate the City's share of the regional housing need for low- and moderate -income households, sites Mr. Terrence Belanger Page 3 We understand. that the City has made a decision to not address housing needs through modification of current land use policies and programs, but has made a commitment to continue assisting low- and moderate -income households through existing arrangements with the City of Lomita. However, the City is still responsible for accommodating its regional share of identified need in the City. We hope our comments are helpful to the City. If you have any questions about our comments, please contact William Andrews of our staff at (916) 323-7271. We look forward to receiving a copy of the adopted element pursuant to Government Code Section 65585(h). In accordance with requests pursuant to the Public Records Act, we are forwarding copies of this letter to the persons and organizations listed below. Sincerely, Thomas B. Cook Deputy Director Housing Policy Development cc: Karen Warner, Cotton Beland and Associates Carlyle W. Hall, Hall & Phillips Law Firm Jonathan Lehrer-Graiwer, Attorney at Law Western Center on Law & Poverty Fair Housing Council of the San Fernando Valley Mark Johnson, Legal Aid Foundation of Los Angeles Ana Marie Whitaker, California State University Pomona Dennis Rockway, Legal Aid Foundation of Long Beach David Booher, California Housing Council Maya Dunne, City of Irvine Joe Carreras, Southern California Association of Governments Kathleen Mikkelson, Deputy Attorney General Bob Cervantes, Governor's Office of Planning and Research Richard Lyon, California Building Industry Association Kerry Harrington Morrison, California Association of Realtors Marc Brown, California Rural Legal Assistance Foundation Christine D. Reed, Orange County Building Industry Association Rob Wiener, California Coalition for Rural Housing Susan DeSantis, The Planning Center Mr. Terrence Belanger Page 3 We understand that the City has made a decision to not address housing needs through modification of current land use policies and programs, but has made a commitment to continue assisting low- and moderate -income households through existing arrangements with the City of Lomita. However, the City is still responsible for accommodating its regional share of identified need in the City. We hope our comments are helpful to the City. If you have any questions about our comments, please contact William Andrews of our staff at (916) 323-7271. We look forward to receiving a copy of the adopted element pursuant to Government Code Section 65585(h). In accordance with requests pursuant to the Public Records Act, we are forwarding copies of this letter to the persons and organizations listed below. Sincerely, Thomas B. Cook Deputy Director Housing Policy Development cc: Karen Warner, Cotton Beland and Associates Carlyle W. Hall, Hall & Phillips Law Firm Jonathan Lehrer-Graiwer, Attorney at Law Western Center on Law & Poverty Fair Housing Council of the San Fernando Valley Mark Johnson, Legal Aid Foundation of Los Angeles Ana Marie Whitaker, California State University Pomona Dennis Rockway, Legal Aid Foundation of Long Beach David Booher, California Housing Council Maya Dunne, City of Irvine Joe Carreras, Southern California Association of Governments Kathleen Mikkelson, Deputy Attorney General Bob Cervantes, Governor's Office of Planning and Research Richard Lyon, California Building Industry Association Kerry Harrington Morrison, California Association of Realtors Marc Brown, California Rural Legal Assistance Foundation Christine D. Reed, Orange County Building Industry Association Rob Wiener, California Coalition for Rural Housing Susan DeSantis, The Planning Center HOUSING ELEMENT LAW (As of January 1,1992) Article 10.6. Housing Elements 65580. The Legislature finds and declares as follows: (a) The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order. (b) The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels. (c) The provision of housing affordable to low -and moderate -income households requires the cooperation of all levels of government. (d) Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community. (e) The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the state in addressing regional housing needs. (Added by Stats. 1980, Ch. 1143.) 65581. It is the intent of the Legislature in enacting this article: (a) To assure that counties and cities recognize their responsibilities in contributing to the attainment of the state housing goal. (b) To assure that counties and cities will prepare and implement housing elements which, along with federal and state programs, will move toward attainment of the state housing goal. (c) To recognize that each locality is best capable of determining what efforts are required by it to contribute to the attainment of the state housing goal, provided such a determination is compatible with the state housing goal and regional housing needs. (d) To ensure that each local government cooperates with other local governments in order to address regional housing needs. (Added by Stats. 1980, Ch. 1143.) 65582. As used in this article: (a) "Community," "locality ," "local government," or "jurisdiction," means a city, city and county, or county. (b) "Council of governments" means a single or multicounty council created by a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 1 of Title 1. (c) "Department" means the Department of Housing and Community • • Development. (d) "Housing element" or "element" means the housing element of the community's general plan, as required pursuant to this article and subdivision (c) of Section 65302. (e) "Low- and moderate -income households" means persons and families of low or moderate incomes as defined by section 50093 of the Health and Safety Code. (Added by Stats. 1980, Ch. 1143., Amended by Stats. 1989, Ch. 1140. Amended by Stats. 1990, Ch. 1441.) 65583. The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory -built housing, and mobilehomes, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The element shall contain all of the following: (a) An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include the following: (1) An analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected housing needs for all income levels. These existing and projected needs shall include the locality's share of the regional housing need in accordance with Section 65584. (2) An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (3) An inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. (4) An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. (5) An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction. (6) An analysis of any special housing needs, such as those of the handicapped, elderly, large families, farmworkers, families with female heads of households, and families and persons in need of emergency shelter. (7) An analysis of opportunities for energy conservation with respect to residential development. (8) An analysis of existing assisted housing developments 2 that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. "Assisted housing developments," for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in -lieu fees. "Assisted housing developments" shall also include multifamily rental units that were developed pursuant to a local inclusionary housing program or used to qualify for a density bonus pursuant to Section 65916. (A) The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use and the total number of elderly and nonelderly units that could be lost from the locality's low-income housing stock in each year during the 10 -year period. For purposes of state and federally funded projects,the analysis required by this subparagraph need only contain information available on a statewide basis. (B) The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately for each five-year period and does not have to contain a project by project cost estimate. (C) The analysis shall identify public and private nonprofit corporations known to the local government which have legal and managerial capacity to acquire and manage these housing developments. (D) The analysis shall identify and consider the use of all federal, state, and local financing and subsidy programs which can be used to preserve, for lower income households, the assisted housing developments,: identified in this paragraph, including, but not limited to, federal Community Development Block Grant Program funds, tax increment funds received by a redevelopment agency of the community, and administrative fees received by a housing authority operating within the community. In considering the use of these financing and subsidy programs, the analysis shall identify the amounts of funds under each available program which have not been legally obligated for other purposes and which could be available for use in preserving assisted housing developments. (b) (1) A statement of the community's goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing. (2) It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the community's ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The 3 quantified objectives shall establish the maximum number of housing units by income category that can be constructed, rehabilitated, and conserved over a five-year time period. (c) A program which sets forth a five-year schedule of actions the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available and the utilization of moneys in a Low and Moderate Income Housing Fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following: (1) Identify adequate sites which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory -built housing, mobilehomes, emergency shelters, and transitional housing in order to meet the community's housing goals as identified in subdivision (b). Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall provide for sufficient sites with zoning that permits owner -occupied and rental multifamily residential use by right, including density and development standards that could accommodate and facilitate the feasibility of housing for very low and low-income households. For purposes of this paragraph, the phrase "use by right" shall mean the use does not require a conditional use permit, except when the proposed project is a mixed -use project involving both commercial and residential uses. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5. (2) Assist in the development of adequate housing to meet the needs of low- and moderate -income households. (3) Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing. (4) Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action. (5) Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, or color. (6) (A) Preserve for lower income households the assisted housing developments identified pursuant to paragraph (8) of subdivision (a). The program for preservation of the assisted 4 • • housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (8) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (B) The program shall include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals. The local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. (d) The analysis and program for preserving assisted housing developments required by the amendments to this section enacted by the Statutes of 1989 shall be adopted as an amendment to the housing element by July 1, 1992. (e) Failure of the department to review and report its findings pursuant to Section 65585 to the local government between July 1, 1992, and the next periodic review and revision required by Section 65588, concerning the housing element amendment required by the amendments to this section by the Statutes of 1989, shall not be used as a basis for allocation or denial of any housing assistance administered pursuant to Part 2 (commencing with Section 50400) of Division 31 of the Health and Safety Code. (Amended by Stats. 1984, Ch. 1691, § 3, eff. Sept 30, 1984; Amended by Stats. 1986, Ch. 1383, § 2; Amended by Stats. 1989, Ch. 1140, § 2; Amended by Stats. 1989, Ch. 1451, § 1.5; Amended by Stats. 1991, Ch. 730 (A.B. 1929), § 1; Amended by Stats. 1991, Ch. 889 (S.B. 1019), § 2.) Note: Stats. 1984, Ch. 1691, also reads: SEC. 1. The Legislature finds and declares that because of economic, physical, and mental conditions that are beyond their control, thousands of individuals and families in California are homeless. Churches, local governments, and nonprofit organizations providing assistance to the homeless have been overwhelmed by a new class of homeless: families with children, individuals with employable skills, and formerly middle-class families and individuals with long work histories. The programs provided bt the state, local, and federal governments, and by private institutions, have been unable to meet existing needs and further action is necessary. The Legislature finds and declares that two levels of housing assistance are needed: an emergency fund to supplement temporary shelter programs, and a fund to facilitate the preservation of existing housing and the creation of new housing units affordable to very low income households. It is in the public interest for the State of California to provide this assistance. The Legislature further finds and declares that there is a need for more information on the numbers of homeless and the causes 5 • of homelessness, and for systematic exploration of more comprehensive solutions to the problem. Both local and state government have a role to play in identifying, understanding, and devising solutions to the problem of homelessness. Note: Stats. 1986, Ch. 1383, also reads: SEC. 3. The amendments to paragraph (1) of subdivision (c) of Section 65583 of the Government Code made by the act adding this section during the 1986 Regular Session of the Legislature shall require an identification of sites for emergency shelters and transitional housing by January 1, 1988, or by the next periodic review of a housing element pursuant to Section 65588 of the Government Code, whichever is later, in order to give local governments adequate time to plan for, and to assist in the development of, housing for homeless persons, if it is determined that there is a need for emergency shelter pursuant to paragraph (6) of subdivision (a) of Section 65583 of the Government Code. Note: Stats. 1991, Ch. 889, also reads: SEC. 5. The additional requirements and duties created by Sections 1, 2, and 4 of this act shall be applicable upon the next amendment or periodic review of the housing element by the legislative body. 65584. (a) For purposes of subdivision (a) of Section 65583, the share of a city or county of the regional housing needs includes that share of the housing need of persons at all income levels within the area significantly affected by a general plan of the city or county. The distribution of regional housing needs shall, based upon available data, take into consideration market demand for housing, employment opportunities, the availability of suitable sites and public facilities, commuting patterns, type and tenure of housing need, the loss of units contained in assisted housing developments, as defined in paragraph (8) of subdivision (a) of Section 65583, that changed to non -low-income use through mortgage prepayment, subsidy contract expirations, or termination of use restrictions, and the housing needs of farmworkers. The distribution shall seek to reduce the concentration of lower income households in cities or counties which already have disproportionately high proportions of lower income households. Based upon data provided by the Department of Finance, in consultation with each council of government, the Department of Housing and Community Development shall determine the regional share of the statewide housing need at least two years prior to the second revision, and all subsequent revisions as required pursuant to Section 65588. Based upon data provided by the department relative to the statewide need for housing, each council of governments shall determine the existing and projected housing need for its region. Within 30 days following notification of this determination, the department shall ensure that this determination is consistent with the statewide housing need. The department may revise the determination of the council of governments if necessary 6 • • to obtain this consistency. The appropriate council of governments shall determine the share for each city or county consistent with the criteria of this subdivision and with the advice of the department subject to the procedure established pursuant to subdivision (c) at least one year prior to the second revision, and at five-year intervals following the second revision pursuant to Section 65588. The council of governments shall submit to the department information regarding the assumptions and methodology to be used in allocating the regional housing need. As part of the allocation of the regional housing need, the council of governments, or the department pursuant to subdivision (b), shall provide each city and county with data describing the assumptions and methodology used in calculating its share of the regional housing need. The department shall submit to each council of governments information regarding the assumptions and methodology to be used in allocating the regional share of the statewide housing need. As part of its determination of the regional share of the statewide housing need, the department shall provide each council of governments with data describing the assumptions and methodology used in calculating its share of the statewide housing need. The councils of governments shall provide each city and county with the department's information. (b) For areas with no council of governments, the department shall determine housing market areas and define the regional housing need for cities and counties within these areas pursuant to the provisions for the distribution of regional housing needs in subdivision (a). Where the department determines that a city or county possesses the capability and resources and has agreed to accept the responsibility, with respect to its jurisdiction, for the identification and determination of housing market areas and regional housing needs, the department shall delegate this responsibility to the cities and counties within these areas. (c) (1) Within 90 days following a determination of a council of governments pursuant to subdivision (a), or the department's determination pursuant to subdivision (b), a city or county may propose to revise the determination of its share of the regional housing need in accordance with the considerations set forth in subdivision (a). The proposed revised share shall be based upon available data and accepted planning methodology, and supported by adequate documentation. (2) Within 60 days after the time period for the revision by the city or county, the council of governments or the department, as the case may be, shall accept the proposed revision, modify its earlier determination, or indicate, based upon available data and accepted planning methodology, why the proposed revision is inconsistent with the regional housing need. (A) If the council of governments or the department, as the case may be, does not accept the proposed revision, then the city or county shall have the right to request a public hearing to review the determination within 30 days. (B) The city or county shall be notified within 30 days by certified mail, return receipt requested, of at least one public 7 hearing regarding the determination. (C) The date of the hearing shall be at least 30 days from the date of the notification. (D) Before making its final determination, the council of governments or the department, as the case may be, shall consider comments, recommendations, available data, accepted planning methodology, and local geological and topographic restraints on the production of housing. (3) If the council of governments or the department accepts the proposed revision or modifies its earlier determination, the city or county shall use that share. If the council of governments or the department grant a revised allocation pursuant to paragraph (1), the council of governments or the department shall ensure that the current total housing need is maintained. If the council of governments or department indicates that the proposed revision is inconsistent with the regional housing need, the city or county shall use the share which was originally determined by the council of governments or the department. (4) The determination of the council of governments or the department, as the case may be, shall be subject to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure.. (5) The council of governments or the department shall reduce the share of regional housing needs of a county if all of the following conditions are met: (A) One or more cities within the county agree to increase its share its share or their shares in an amount which will make up for the reduction. - (B) The transfer of shares shall only occur between a county and cities within that county. (C) The county's share of low-income and very low income housing shall be reduced only in proportion to the amount by which the county's share of moderate- and above moderate -income housing is reduced. (D) The council of governments or the department, whichever assigned the county's share, shall have authority over the approval of the proposed reduction, taking into consideration the criteria of subdivision (a) of Section 65584. (6) The housing element shall contain an analysis of the factors and circumstances, with all supporting data, justifying the revision. All materials and data used to justify any revision shall be made available upon request by any interested party within seven days upon payment of reasonable costs of reproduction unless the costs are waived due to economic hardship. (d)(1) Except as provided in paragraph (2), any ordinance, policy, or standard of a city or county which directly limits, by number, the building permits which may be issued for residential construction, or which limits for a set period of time the number of buildable lots which may be developed for residential purposes, shall not be a justification for a determination or a reduction in the share of a city or county of the regional housing need. (2) Paragraph (1) does not apply to any city or county which imposes a moratorium on residential construction for a set period 8 • • of time in order to preserve and protect the public health and safety. If a moratorium is in effect, the city or county shall, prior to a revision pursuant to subdivision (c), adopt findings which specifically describe the threat to the public health and safety and the reasons why construction of the number of units specified as its share of the regional housing need would prevent the mitigation of that threat. (e) Any authority to review and revise the share of a city or county of the regional housing need granted under this section shall not constitute authority to revise, approve, or disapprove the manner in which the share of the city or county of the regional housing need is implemented through its housing program. (f) A fee may be charged interested parties for any additional costs caused by theamendments made to subdivision (c) by Chapter 1684 of the Statutes of 1984 reducing from 45 to seven days the time within which materials and data shall be made available to interested parties. (g) Determinations made by the department, a council of governments, or a city or county pursuant to this section are exempt from the provisions of the California Environmental Quality Act, Division 13 (commencing with Section 21000) of the Public Resources Code. (Amended by Stats. 1984, Ch. 1684, Amended Stats. 1989, Ch. 1451. Amended Stats. 1990, Ch. 1441) 65585. (a) In preparation of its housing element, each city and county shall consider the guidelines adopted by the department pursuant to Section 50459 of the Health and Safety Code. Those guidelines shall be advisory to each city or county in the preparation of its housing element. (b) At least 90 days prior to adoption of its housing element, or at least 45 days prior to the adoption of an amendment to this element, the planning agency shall submit a draft element or draft amendment to the department. The department shall review .the draft and report its written findings to the planning agency within 90 days of its receipt of the draft in the case of an adoption or within 45 days of its receipt in the case of a draft amendment. (c) In the preparation of its findings, the department may consult with any public agency, group, or person. The department shall receive and consider any written comments from any public agency, group, or person regarding the draft or adopted element or amendment under review. (d) In its written findings, the department shall determine whether the draft element or draft amendment substantially complies with the requirements of this article. (e) Prior to the adoption of its draft element or draft amendment, the legislative body shall consider the findings made by the department. If the department's findings are not available within the time limits set by this section, the legislative body may act without them. (f) If the department finds that the draft element or draft amendment does not substantially comply with the requirements of 9 • • this article, the legislative body shall take one of the following actions: (1) Change the draft element or draft amendment to substantially comply with the requirements of this article. (2) Adopt the draft element or draft amendment without changes. The legislative body shall include in its resolution of adoption written findings which explain the reasons the legislative body believes that the draft element or draft amendment substantially complies with the requirements of this article despite the findings of the department. (g) Promptly following the adoption of its element or amendment, the planning agency shall submit a copy to the department. (h) The department shall, within 120 days, review adopted housing elements or amendments and report its findings to the planning agency. (Amended by Stats. 1983, Ch. 1250 [effective January 1, 1984]; Stats. 1984, Ch. 1009, Amended Stats. 1990, Ch. 1441) 65586. Local governments shall conform their housing elements to the provisions of this article on or before October 1, 1981. Jurisdictions with housing elements adopted before October 1, 1981, in conformity with the housing element guidelines adopted by the Department of Housing and Community Development on December 7, 1977, and located in Subchapter 3 (commencing with Section 6300) of Chapter 6 of Part 1 of Title 25 of the California Administrative Code [repealed in 1982], shall be deemed in compliance with this article as of its effective date. A locality with a housing element found to be adequate by the department before October 1, 1981, shall be deemed in conformity with these guidelines. (Added by Stats. 1980, Ch. 1143.) 65587. (a) Each city, county, or city and county shall bring its housing element, as required by subdivision (c) of Section 65302, into conformity with the requirements of this article on or before October 1, 1981, and the deadlines set by section 65588. Except as specifically provided in subdivision (b) of Section 65361, the Director of Planning and Research shall not grant an extension of time from these requirements. (b) Any action brought by any interested party to review the conformity with the provisions of this article of any housing element or portion thereof or revision thereto shall be brought pursuant to Section 1085 of the Code of Civil Procedure; the court's review of compliance with the'provisions of this article shall extend to whether the housing element or portion thereof or revision thereto substantially complies with the requirements of this article. (c) If a court finds that an action of a city, county, or city and county, which is required to be consistent with its general plan, does not comply with its housing element, the city, county, or city and county shall bring its action into compliance within 60 days. However the court shall retain jurisdiction through out the 10 • • period for compliance to enforce its decision. Upon the court's determination that the 60 -day period for compliance would place an undue hardship on the city, county, or city and county, the court may extend the time period for compliance by an addition 60 days. (Amended by Stats. 1984, Ch. 1009. Amended Stats. 1990, Ch. 1441) Note: Stats. 1984, Ch. 1009, also reads: SEC. 44. It is the intent of the Legislature that the term "substantially complies," as used in subdivision (b) of Section 65587, be given the same interpretation as was given that term by the court in Camp v. Board of Supervisors, 123 Cal. App. 3d. 334, 348, [176 Cal. Rptr. 620, 629]. 65587.1. (a) The Legislature finds and declares that local policies and programs which increase housing opportunities through a tax-exempt revenue bond program or through a requirement that the approval of a housing related project be tied to the provision of assistance for housing are consistent with the intent of this article. The Legislature further finds and declares that actions which have the effect of impeding or halting such policies and programs or the direct production of housing run contrary to the goals of increased housing opportunities and balanced commercial and residential development embodied in this article. (b) Not withstanding any other provision of law, neither a mortgage revenue bond program subject to subdivision (b) of Section 52053.5 of the Health and Safety Code nor a local approval, made prior to May 1, 1983, of a housing related project shall be invalidated due to the failure or alleged failure of a city and county to comply with this article, subdivision (c) of Section 65302 of the Government Code, or any regulations or guidelines adopted pursuant thereto, or any other provision of law require consistency with the housing element of a local general plan. For purposes of this section, a "housing related project" means (a) a residential project or (b) a nonresidential project, the local approval of which was conditioned upon the nonresidential developer (1) developing or rehabilitating or causing to be developed or rehabilitated housing units, or (2) providing funds for the development or rehabilitation of housing units, or (3) investing in a mortgage revenue bond program subject to subdivision (b) of Section 52053.5 of the Health and Safety Code, under a formula or guidelines adopted by the planning commission or local governing body of the city and county. For purposes of this section, "housing related project" shall not include a project, the construction or development of which requires either the demolition or conversion of low- or moderate -rental residential units and local approval of which does not provide for the replacement of such units and for the maintenance in such units of rents affordable for low- and moderate -income persons for a period of not less than 20 years. (Added by Stats. 1982, Ch. 312. Effective June 28, 1982.) 11 65588. (a) Each local government shall review its housing element as frequently as appropriate to evaluate all of the following: (1) The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal. (2) The effectiveness of the housing element in attainment of the community's housing goals and objectives. (3) The progress of the city, county, or city and county in implementation of the housing element. (b) The housing element shall be revised as appropriate, but not less than every five years, to reflect the results of this periodic review. In order to facilitate effective review by the department of housing elements, local governments following shall prepare and adopt the first two revisions of their housing elements no later than the dates specified in the following schedule, notwithstanding the date of adoption of the housing elements in existence on the effective date of the act which amended this section during the 1983-84 session of the Legislature. (1) Local governments within the regional jurisdiction of the Southern California Association of Governments: July 1, 1984, for the first revision and July 1, 1989, for the second revision. (2) Local governments within the regional jurisdiction of the Association of Bay Area Governments: January 1, 1985, for the first revision, and July 1, 1990, for the second revision. • (3) Local governments within the regional jurisdiction of the San Diego Association of Governments, the Council of Fresno County Governments, the Kern County Council of Governments, the Sacramento Council of Governments, and the Association of Monterey Bay Area Governments: July 1, 1985, for the first revision, and July 1, 1991, for the second revision. (4) All other local governments: January 1, 1986, for the first revision, and July 1, 1992, for the second revision. (5) Subsequent revisions shall be completed not less often than at five-year intervals following the second revision. - (c) The review and revision of housing elements required by this section shall take into account any low- or moderate -income housing which has been provided or required pursuant t� Section 65590. (d) The review pursuant to subdivision (c) shall include, but need not be limited to, the following: (1) The number of new housing units approved for construction within the coastal zone after January 1, 1992. (2) The number of housing units for persons and families of low income or moderate income, as defined in Section 50093 of the Health and Safety Code, required to be provided in new housing developments either within the coastal zone or within three miles of the coastal zone pursuant to Section 65590. (3) The number of existing residential dwelling units occupied by persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that have been authorized to be demolished or converted since January 1, 1982, in 12 the Coastal zone. (4) The number of residential dwelling units for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that have been required for replacement or authorized to be converted or demolished as identified in paragraph (3). The location of the replacement units, either onsite, elsewhere within the locality's jurisdiction within the coastal zone, or within three miles of the coastal zone within the locality's jurisdiction, shall be designated in the review. (Amended by Stats. 1984, Ch. 208. Effective June 20, 1984) 65588.5. A copy of the report required by subdivision (b) of Section 65400 shall be submitted to the Department of Housing and Community Development within 30 days after receipt by the legislative body. (Added by Stats. 1991, Ch. 889 (S.B. 1019), § 3.) [For your information, Section 65400 is included at the end of this document] 65589. (a) Nothing in this article shall require a city, county, or city and county to do any of the following: (1) Expend local revenues for the construction of housing, housing, housing subsidies, or land acquisition. (2) Disapprove any residential development which is consistent with the general plan. (b) Nothing in this article shall be construed to be a grant of authority or a repeal of any authority which may exist of a local government to impose rent controls or restrictions on the sale of property. (c) Nothing in this article shall be construed to be a grant of authority or a repeal of any authority which may exist of a local government with respect to measures that may be undertaken or required by a local government to be undertaken to implement the housing element of the local general plan. (d) The provisions of this article shall be construed consistent with, and in promotion of, the statewide goal of a sufficient supply of decent housing to meet the needs of all Californians. (Added by Stats. 1980, Ch. 1143.) 65589.3. In any action filed on or after January 1, 1991, taken to challenge the validity of a housing element, there shall be a rebuttable presumption of the validity of the element or amendment. if, pursuant to Section 65585, the department has found that the element or amendment substantially complies with the requirements of this article. (Added by Stats. 1990, Ch. 1441) 65589.5. (a) The Legislature finds all of the following: (1) The Lack of affordable housing is a critical problem which threatens the economic, environmental, and social quality of life 13 in California. (2) California housing has become the most expensive in the nation. The excessive cost of the state's housing supply is partially caused by activities and policies of many local governments which limit the approval of affordable housing, increase the cost of land for affordable housing, and require that high fees and exactions be paid by producers of potentially affordable housing. (3) Among the consequences of these actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration. (4) Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions which result in disapproval of affordable housing projects, reduction in density of affordable housing projects, and excessive standards for affordable housing projects. (b) It is the policy the state that a local government not reject or make infeasible affordable housing developments which contribute to meeting the housing need determined pursuant to this article without a through analysis of the economic, social, and environmental effects of the action and without meeting the provisions of subdivision (c). (c) The Legislature also recognizes that premature and unnecessary development of agriculture lands to urban uses continues to have adverse effects on the availability of such lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, infilling existing urban areas. (d) A local agency shall not disapprove a housing development project affordable to low- and moderate -income households or condition approval in a manner which renders the project infeasible for development for use of low- and moderate -income households unless it finds, based upon substantial evidence, one of the following: (1) The jurisdiction has adopted a housing element pursuant to this article and the development project is not needed for the jurisdiction to meet its share of the regional housing need of low-income housing. (2) The development project as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactory mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate -income households. (3) The denial of the project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low- and moderate -income households. (4) Approval of the development project would increase the 14 • . concentration of lower income households in a neighborhood that already has a disproportionately high number of lower income households and there is no feasible method of approving the development at a different site, including those sites identified pursuant to paragraph (1) of subdivision (c) of Section 65583, without rendering the development unaffordable to low- and moderate -income households. (5) The development project is proposed on land zoned for agricultural or resource preservation which is surrounded on at least two sides by land being used for agricultural or resources preservation purposes, or which does not have adequate water or wastewater facilities to serve the project. (6) The development project is inconsistent with the jurisdiction's general plan land use designation as specified in any element of the general plan as it existed on the date the application was deemed complete, and the jurisdiction has adopted a housing element pursuant to this article. (e) Nothing in this section shall be construed to relieve the local agency from complying with the provisions of the Congestion Management Program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of. Title 7 of the Government Code or the provisions of the California Coastal Act, Division 20 (commencing with Section 30000) of the Public Resources Code. Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the Environmental Quality Act, Division 13 (commencing with Section 21000) of the Public Resources Code. (f) Nothing in this section shall be construed to prohibit a local agency from requiring the development project to comply with development standards and policies appropriate to and consistent with meeting the quantified objectives relative to the development of housing, as required in the housing element pursuant to subdivision (b) of Section 65583. Nor shall anything in this section be construed to prohibit a local agency from imposing fees and other exactions otherwise authorized by law which are essential to provide necessary public services and facilities to the development project. (g) This section shall be applicable to charter cities, because the Legislature finds that the lack of affordable housing is a critical statewide problem. (h) The following definitions apply for the purposes of this section: (1) "Feasible" means capable of being accomplished in a successful manner within a reasonable period of time taking into account economic, environmental, social, and technological factors. (2) "Affordable to low- and moderate -income households" means at least 20 percent of the total units shall be sold or rented to lower income households, as defined in Section 50079.5 of the Health and Safety Code, and the remaining units shall be sold or rented to either lower income households or persons and =families of moderate income as defined in Section 50093 of the Health and 15 • • Safety Code. Housing units targeted for lower income households shall be made available at a monthly housing cost that does not exceed 30 percent of 60 percent of area median income with adjustments for household size made in accordance with adjustment factors on which the lower income eligibility limits are based. Housing units targeted for persons and families of moderate income shall be made available at a monthly housing cost that does not exceed 30 percent of 100 percent of area median income with adjustments for household size made in accordance with the adjustment factors on which the moderate income eligibility limits are based. "Area median income" shall mean are median income as periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. The developer shall provide sufficient legal commitments to ensure continued availability of units for the lower income households in accordance with the provisions of this subdivision for 30 years. (3) "Neighborhood" means a planning area commonly identified as such in a community's planning documents, and identified as a neighborhood by the individuals residing and working within the neighborhood. Documentation demonstrating that the area meets the definition of neighborhood may include a map prepared for planning purposes which lists the name and boundaries of the neighborhood. (i) If any city, county, or city and county denies approval or imposes restrictions, including a reduction of allowable densities or the percentage of a lot which may be occupied by a building or structure under the applicable planning and zoning in force at the time the application is deemed complete pursuant to Section 65943, which have a substantial adverse effect on the viability or affordability of a housing developmentaffordable to low- and moderate -income households, and the denial of the development or the imposition of restrictions on the development is the subject of a court action which challenges the denial, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivisions (c). (j) When a proposed housing development project complies with the applicable general plan, zoning, development policies in effect at the time that the housing development project's application is determined to be complete, but the local agency proposes to disapprove the project or to approve it upon the condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by substantial evidence on the record that both of the following conditions exist: (1) The housing development project would have a specific adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. (2) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or 16 the approval of the project upon the condition that it be developed at a lower density. (Added by Stats. 1982, Ch. 1438, Amended by Stats. 1990, Ch. 1439) 65589.6. In any action taken to challenge the validity of a decision by a city, county, or city and county to disapprove a project or approve a project upon the condition that it be developed at a lower density pursuant to Section 65589.5, the city, county, or city and county shall bear the burden of proof that its decision has conformed to all of the conditions specified in Section 65589.5. (Added by Stats. 1984, Ch. 1104.) 65589.7. The housing element adopted by the legislative body and any amendments made to that element shall be delivered to all special districts that provide water services at retail or sewer services and to other private entities that provide water services at retail or sewer services within the territory of the legislative body. When allocating or making plans for the allocation of available and future resources or services designated for residential use, each special district providing water services at retail or sewer services and other private entities providing water services at retail or sewer services, shall grant a priority for the provision of these available and future resources or services to proposed housing developments which help meet the city's, county's, or city and county's share of the regional housing need for lower income households as identified in the housing element adopted by the legislative body and any amendments made to that element. This section is intended to neither enlarge nor diminish the existing authority of a city, county or city and county in adopting a housing element. Failure to deliver a housing element adopted by the legislative body or amendments made to that element, to a special district or private entity providing water services at retail or sewer services shall not invalidate any action or approval of a development project. The special districts which provide water services at retail or sewer services related to development, as defined in subdivision (e) of Section 56426, are included within this section. As used in this section, "water services at retail" means supplying water directly to the end user or consumer of that water, and does not include sale by a water supplier to another water supplier for resale. (Added by Stats. 1991, Ch. 889 (S.B. 1019), § 4.) NOTE: Stats. 1991, Ch. 889 (S.B. 1019), also reads: SEC. 5. The additional requirements and duties created by Sections 1, 2, and 4 of this act shall be applicable upon the next amendment or periodic review of the housing element by the legislative body. 17 • 65589.8. A local government which adopts a requirement in its housing element that a housing development contain a fixed percentage of affordable housing units, shall permit a developer to satisfy all or portion or that requirement by constructing rental housing at affordable monthly rents, as determined by local government. Nothing in this section shall be construed to expand or contract the authority of a local government to adopt an ordinance, charter amendment, or policy requiring that any housing development contain a fixed percentage of affordable housing units. (Added by Stats. 1983, Ch. 787.) Health and Safety Code 50459. (a) The department may adopt, and from time to time revise, guidelines for the preparation of housing elements required by Section 65302 and Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. (b) The department shall review housing elements and amendments for substantial compliance with Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code and report its findings pursuant to Section 65585 of the Government Code. (c) On or before December 31, 1991, and annually thereafter, the department shall report to the Legislature on the status of housing elements and the extent to which they comply with the requirements od Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. The department shall also make this report available to any other public agency, group, or person who requests a copy. (d) The department may, in connection with any loan or grant application submitted to the agency, require submission to the department fore review of any housing element and any local housing assistance plan adopted pursuant to the Housing and Community Development Act of 1974 (Public Law 93-383)[42 U.S.C.A. Section 5301 et. seq.] (Added by Stats. 1977, Ch. 610, Amended by Stats. 1983, Ch. 101, Amended by Stats. 1985, Ch. 675, Amended by Stats. 1990, Ch. 1441.) 18 General Plan Law 65400. After the legislative body has adopted all or part of a general plan, the planning agency shall do both of the following: (a) Investigate and make recommendations to the legislative body regarding reasonable and practical means for implementing the general plan or element of the general plan, so that it will serve as an effective guide for orderly growth and development, preservation and conservation of open -space land and natural resources, and the efficient expenditure of public finds relating to the subjects addressed in the general plan. (b) Provide an annual report to the legislative body on the status of the plan and progress in its implementation, including the progress in meeting its share of regional housing needs determined pursuant to Section 65584. (Amended by Stats. 1984, Ch. 690, § 5.5; Stats. 1984, Ch. 1009, § 14; Stats. 1990, Ch. 1441 (S.B. 2274), § 2.) 19 r •City °Molting -JUL F9 a INCORPORATED JANUARY 24, 1957 November 15, 1991 Mr. Allan Roberts, Chairman Planning Commission 7 Southfield Drive Rolling Hills, CA 90274 Dear Chairman Roberts: NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX (213) 377-7288 CONFIDENTIAL Attached is a confidential correspondence from Michael G. Colantuono relative to recently adopted legislation which has a major impact on cities' housing elements. Mr. Colantuono represents our City Attorney's office in housing element matters. As you will notice in the attached correspondence, Chapter 889 of the State of California laws of 1991 drastically affects the California Government Codes to allow multi -family housing without a local Conditional Use Permit process. Chapter 889 applies to housing elements which are adopted after January 1, 1992. The City's revised Housing Element will be presented to the Planning Commission for consideration at your regularly scheduled meeting on Tuesday, November 19, 1991. We have advertised for City Council review of the Housing Element to take place on Monday, December 23, 1991. We will, of course, discuss this further at the meeting of November 19. Your review and confidential handling of the attached correspondence is appreciated. Thank you for your cooperation. Sincerely, Craig R. Nealis City Manager copy: M. Jenkins K.Ennis City Council L. Unger /jc INCORPORATED JANUARY 24, 1957 November 15, 1991 Mr. Allan Roberts, Chairman Planning Commission 7 Southfield Drive Rolling Hills, CA 90274 Dear Chairman Roberts: NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX (213) 377-7288 CONFIDENTIAL . Attached is a confidential correspondence from Michael G. Colantuono relative to recently adopted legislation which has a major impact on cities' housing elements. Mr. Colantuono represents our City Attorney's office in housing element matters. As you will notice in the attached correspondence, Chapter 889 of the State of California laws of 1991 drastically affects the California Government Codes to allow multi -family housing without a local Conditional Use Permit process. Chapter 889 applies to housing elements which are adopted after January 1, 1992. The City's revised Housing Element will be presented to the Planning Commission for consideration at your regularly scheduled meeting on Tuesday, November 19, 1991. We have advertised for City Council review of the Housing Element to take place on Monday, December 23, 1991. We will, of course, discuss this further at the meeting of November 19. Your review and confidential handling of the attached correspondence is appreciated. Thank you for your cooperation. Sincerely, Craig R. Nealis, City Manager copy: M. Jenkins K.Ennis City Council L. Unger /jc GLENN R. WATSON ROBERT G. BEVERLY HARRY L GERSHON DOUGLAS W. ARGUE MARK L LAMKEN ARNOLD SIMON RICHARD H. DINEL ERWIN E. ADLER DAROLD D. PIEPER FRED A. FENSTER THOMAS A. FREIBERG. JR. ALLEN E. RENNETT STEVEN L DORSEY WILLIAM L STRAUSZ ROBERT M. GOLDFRIED ANTHONY 8. DREWRY MITCHELL E. ABBOTT TIMOTHY L NEUFELD ROBERT F. DE METER GREGORY W. STEPANICICH ROCHELLE BROWNE DONALD STERN MICHAEL JENKINS WILLIAM B. RUDELL DAVID L COHEN TERESA R. TRACY QUINN M. BARROW CAROL W. LYNCH TERRY A. TRUMBULL COLEMAN J. WALSH. JR_ JOHN A. BELCHER JEFFREY A. RABIN WILLIAM K. KRAMER CURTIS L COLEMAN STEVEN H. KAUFMANN MARSHA JONES MOUTRIE GREGORY M. KUNERT AMANDA F. SU8SKIND WILLIAM 8. MATSUMURA SCOTT WEIBLE DANIEL P. TORRES THOMAS M. JIMBO MICHELE BEAL BAGNERIS ROBERT C. CECCON PAMELA A. ALBERS SAYRE WEAVER KEVIN G. ENNIS ROBIN D. HARRIS MICHAEL ESTRADA. EFRAT M. COGAN LAURENCE 8. WIENER DAVID P. WAITE CHRISTI HOGIN STEVEN R. ORR DEBORAH R. HAKMAN SCOTT K. SHINTANI MICHAEL G. COULNTUONO JACK B. SHOU(OFF DAVID A. BUCHEN 8. TILDEN KIM DARYL T. TESHIMA CHRISTINA R. MELTZER BIRGIT A. HUBER 3. ALAN RAY JUUET F. IRELAND RUBIN D. WEINER RICHARDS, WATSON & GERSHON ATTORNEYS AT LAW A PROFESSIONAL CORPORATION November 5, 1991 CONFIDENTIAL THIS MATERIAL IS SUBJECT TO THE ATTORNEY-CUENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. DO NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBUCLY ACCESSIBLE RECORDS. Mr. Craig Nealis City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, California 90274 Re: Recent Housing Element Dear Mr. Nealis: Legislation N0\1P'^1✓g NG �1tU.s CM OF RICHARos THIRTY-EIGHTH FLOOR 333 SOUTH HOPE STREET LOS ANGELES, CALIFORNIA 90071-1469 (213) 826-8484 TELECOPIER (213) 626-0078 1910754 OUR FILE NUMBER R6980-001 [By Telecopier and U.S. Mail] As I promised in our telephone conversation last week, I write to apprise you of a recently adopted statute which changes the law governing housing elements. The statute applies to the adoption or amendment of a housing element after January 1, 1992. Thus, if the City is in a position to adopt the pending revision of its housing element before the first of next year, it may wish to do so. If the City wishes to adopt its element before January 1, 1991, it will have to act promptly to meet the various notice requirements. I have discussed these deadlines with Lola Ungar and Karen Warner and it appears that a feasible, though tight, hearing schedule can be developed. If the element is not adopted before the first of the coming year, it must be revised to comply with the legal requirements discussed below. Senate Bill 1019, sponsored by Senator Leroy Greene, was signed by the Governor on October 14, 1991 and was chaptered as Chapter 889 of the Laws of 1991. It adds three new requirements to the process of adopting a housing element. First, and most importantly, the legislation amends Government Section 65583(c)(1), which describes the requirements for the housing program portion of an element, to add the following language: RICHARDS, WATSON & GERSH(..., C O N FF I D E N T I A L Mr. Craig Nealis November 5, 1991 Page 2 THIS MATERIAL IS SUBJECT TO THE ATTORNEY -CLIENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. DO NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBLICLY ACCESSIBLE RECORDS. "Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the procfram shall provide for sufficient sites with zoning which permits owner -occupied and rental multifamily residential use by right, including density and development standards, which could accommodate and facilitate the feasibility of housing for very low and low-income households. For purposes of this paragraph, the phrase 'use by right' shall mean the use does not require a conditional use permit, except when the proposed project is a mixed -use project involving both commercial and residential uses. Use by right for all rental multifamily housing shall be provided in accordance with subdivision (f) of Section 65589.5." (Emphasis added.) Government Code Section 65589.5(f) provides: "Nothing in this section shall be construed to prohibit a local agency from requiring the development project to comply with development standards and policies appropriate to and consistent with meeting the quantified objectives relative to the development of housing, as required in the housing element pursuant to subdivision (b) of Section 65583. Nor shall anything in this section be construed to prohibit a local agency from imposing fees and other exactions otherwise authorized by law which are essential to provide necessary public services and facilities to the development project." (Emphasis added.) This apparently means that if the City's housing element should conclude that the City lacks sufficient vacant land to provide all the very low- and low-income units assigned by the Regional Housing Needs Assessment (RHNA), the element must commit the City to permit multifamily housing and to allow such housing without requiring a conditional use permit. The October 23, 1991 Draft Housing Element now under consideration concludes at page 38 that the 40 units required by the RHNA can be accommodated on 59 available building sites in the City. Accordingly, this draft does "identify adequate sites to accommodate the need for groups of all household income levels" and the first new requirement of Senate Bill 1019 may not affect the proposed new element. However, critics of the element could argue that these sites are not "adequate" to meet the City's affordable housing need because."the element provides insufficient guarantees that RICHARDS, WATSON & GERS. CON IDENTIAL Mr. Craig Nealis November 5, 1991 Page 3 THIS MATERIAL IS SUBJECT TO THE ATTORNEY -CLIENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. DO NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBLICLY ACCESSIBLE RECORDS. the nine affordable units required by the RHNA can in fact be developed. If a court were to accept such a conclusion, the City could be compelled to permit multifamily housing in the City. This risk can be deferred until the 1994 revision of the housing element by adopting the pending draft prior to the end of this year. The changes to the housing element law effected by Senate Bill 1019 are significant for the future as well: if the City is unable to identify adequate sites to accommodate the housing required by the 1994 or later editions of the RHNA, it may be compelled to permit multifamily housing in the City, perhaps on the school site or on other land not subject to the CC&R's of the Rolling Hills Community Association. Accordingly, Senate Bill 1019 increases the importance of the 1994 RHNA. When that document is released by the Southern California Association of Governments (SCAG), the City will be well advised to review it with care and to seek to persuade SCAG to assign a RHNA goal to the City which can be accommodated on the available land in the City. The statute makes other, less consequential changes to the housing element law. Government Code Section 65400(b) now requires an annual report from the Planning Commission to the City Council on the "status of the [general] plan and progress in its implementation, including the progress in meeting its share of regional housing needs determined pursuant to Section 65584." This statute adopts a new section 65588.5 which requires such reports to be filed with the state Department of Housing and Community Development (HCD) within thirty days of their receipt by the City Council. The statute does not specify any consequence for a failure to file such a report with HCD. The statute adds a section 65589.7 which provides that adopted and amended housing elements "shall be delivered" to public and private water suppliers and that those suppliers shall give a priority to projects which "help meet [the locality's] share of the regional housing need for lower income households as identified in the housing element." The section states that failure to deliver an element to a water provider "shall not invalidate any action or approval of a development project." Finally, the statute amends Government Code Section 65583(c)(4) to require an element's housing program to include measures to "conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action." Only the underscored phrase is added, and even this does not appear to be mandatory. RICHARDS, WATSON & GERSHH C O 410 N r I D E N T I A L Mr. Craig Nealis November 5, 1991 Page 4 THIS MATERIAL IS SUBJECT TO THE ATTORNEY -CLIENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. DO NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBUCLY ACCESSIBLE RECORDS. I am informed by Ernie Silva, lobbyist for the League of California Cities, that additional housing legislation will likely be considered by the Legislature in the coming year. As such bills may make further inroads into the City's discretion with respect to land use regulation, the City may wish to contact the League to ensure that its viewpoint is adequately represented. It is my own sense that the viewpoint of small, largely developed communities like Rolling Hills was not well represented in the legislative discussions of Senate Bill 1019. Please call me or Mike Jenkins if you have any questions about the advice stated here. Very truly yours, M}chael G. Colantuono cc: Michael Jenkins Karen Warner MGC:mgc 1910754 CONFIDENTIAL RICHARDS, WATSON & GERSHON MEMORANDUM To: Chairman Roberts and Members of the Planning Commission FROM: Michael G. Golaill" "_, A sistant City Attorney DATE: November 15, 199] SUBJECT: Adoption of the 1991 Housing Element on November 19, 1991 the Commission will consider amendments to the housing element of the general plan. The purpose of this memo is to provide background and legal advice with respect to this matter. After the housing element was adopted in 1990, this office determined that it could be strengthened against legal challenge. On the basis of this advice, the City retained the services of Cotton / Beland / Associates, Inc. to prepare an amended element. The product of their efforts is before you this evening. This draft does not significantly change the policies set forth in the prior element. Rather it adds additional data, a few more housing programs, and greatly strengthens the analysis of the constraints to housing supply which may make it impossible for the City to supply all the affordable housing which has been assigned to the city by the Regional Housing Needs Assessment (RHNA) of the Southern California Association of Governments (SLAG). We conclude that this draft is significantly more likely to withstand a legal challenge than its predecessor. In addition, we believe this draft is as legally defensible as any housing element which does not commit the city to developing, or facilitating the construction of, affordable housing. However, unless the City is willingto establish new planning goals and to plan for the construction of the nine affordable units required by the RHNA, there remains a risk that the element will be invalidated if challenged. Notably, the element provides essentially no discussion of the Palos Verdes Peninsula Unified School District property outside the gates of the City (the La Cresta School site). It is our understanding that this site is not constrained by the covenants, conditions, and restrictions (CC&R's) of the Rolling Hilts Community Association, and is accessible from public streets, served by adequate utilities, and is not constrained by topographical and geotechnical characteristics that would support MGC:mgC 1410784 CONFIDENTIAL THIS MATERIAL 19 SUBJECT TO THE ATTORNEY -CLIENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. DO NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBLICLY ACCESSIBLE RECORDS. CONFIDENTIAL RICI'ARDG. WATSON & GEr%S MEMORANDUM Chairman Roberts and Members of the Planning Commission November 15, 1991 Page 2 a conclusion that the site is not suited for housing. Because neither the consultant nor City staff could conceive of such a justification for failing to plan for housing on this site, a decision was made not to discuss it within the element. As the element is now drafted, the only reference to the school site is the statement at the bottom of page 36 of the October 23, 1991 draft that: "Non-residential properties in Rolling Hills are limited to public and institutional uses. None of these uses are anticipated to be redeveloped within the time frame of this element." while this statement is literally true (since the District's short-term intentions are not clear), the failure to plan for housing on the school site may make the element vulnerable to legal challenge. It is not clear that the state Department of Housing and Community Development (HCD), which is now reviewing the draft element, is aware.of the existence of the school site. Thus, HCD may not comment on this issue. There remains a risk, however, of a legal challenge to the housing element brought by a legal advocacy group or by some other party --perhaps by the school district itself in an effort to maximize the market value of. this property. Such a suit could raise the element's failure to provide for housing on the school site. If such a challenge is brought, the element's silence as to the school site may be quite difficult to defend. Because of recent legislation, we recommend that the element be adopted before year's end, if possible. On October 14, 1991, the Governor signed into law Senate Bill 1019, which imposes certain new requirements for housing elements. The legislation applies to any housing element adopted or amended after January 1, 1992. Principal among the provisions of the new statute is a requirement that, if an element fails to identify adequate sites for the provision of the housing required by the RHNA, the program portion of the element must: "provide for sufficient sites with zoning which permits owner -occupied and rental multifamily residential use by right, including density and development standards, which could accommodate and facilitate the feasibility of housing for very low and low-income households." MGC:mgc 1910784 CONFIDENTIAL THIS MATERIAL IS SUBJECT TO THE ATTORNEY -CLIENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. 00 NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBLICLY ACCESSIBLE RECORDS. IONRICHARDS, WATSON & GERS MEMORANDUM C O N F I D E N T I A li Chairman Roberts and Members of the Planning Commission November 15, 1991 Page 3 This would appear to require the City to amend its zoning ordinance to permit multifamily housing in the City, if the element does not identify adequate sites for the nine affordable units and 31 market -rate units required by the RHNA. The .draft element concludes at page 38 that the 40 units required by the RHNA can be accommodated on 59 available building sites in the City. Accordingly, this draft does "identify adequate sites to accommodate the need for groups of all household income levels" and the principal new requirement of Senate Bill 1019 may not affect the proposed new element. However, critics of the element could argue that these sites are not "adequate" to meet the City's affordable housing need because the element provides insufficient guarantees that - the nine affordable units can in fact be developed. If a court were to accept such a conclusion, the City could be compelled to permit multifamily housing in the City. This risk can be deferred until the 1994 revision of the housing element by adopting the pending draft prior to the end of this vea_. For this reason, we recommend the City adopt its new element before the end of 1991 if it is possible to do so. On the basis of this advice, staff has noticed a public hearing before the City Council on this draft for December 23, 1991. Accordingly, we recommend that the Commission forward the element and the Commission's recommendations to the City Council as soon as possible. The State housing element law treats all cities alike, even though the circumstances of cities differ dramatically. Uniform application of rules which are suitable for Los Angeles, Long Beach, or Hawthorne to cities like Rolling Hills and other small, bedroom communities makes little sense. At present, state law fails to recognize that not every city can accommodate a diversity of uses. This quandary will require the development of a long-term strategy wholly aside from the adoption of this element. Accordingly, this element represents a beginning, and not the end, of a process that we hope will lead to a more satisfactory resolution of these complex social issues. Please feel free to contact me, Michael Jenkins, or Kevin Ennis if you have questions or comments about the advice stated here. Kevin will be in attendance at the Commission's MGC:mgc 1910784 CONFIDENTIAL THIS MATERIAL IS SUBJECT TO THE ATTORNEY -CLIENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. DO NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBLICLY ACCESSIBLE RECOf1DS_ RICI LARDS, WATSON & GERS• MEMORANDUM C ONFIDENTIAL 1111 Chairman Roberts and Members of the Planning Commission November 15, 1991 Page 4 meeting on November 19, 1991 and will be able to provide additional advice at that time. CC: Mayor Parnell and Members of the City Council Craig Nealis Lola Ungar Michael Jenkins Kevin Ennis MGC:mgc 1910784 . CONFIDENTIAL THIS MATERIAL IS SUBJECT TO THE ATTORNEY -CLIENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. DO NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBLICLY ACCESSIBLE RFCORDS. OPEN AGENDA Mr. Richard Colyear, 35 Crest Road West, wished to speak on two separate issues, beginning with a request for action by the City Council. He testified that in June of 1991 hesubmitted an application for Site Plan Review. His application was not favorably received, and in August of 1991 he sent a letter to Principal Planner Ungar suggesting that the City of Rolling Hills was not dealing in good faith. He said it was becoming clear that his application would be continually delayed in order to prevent its review by the Planning Commission. Mr. Colyear stated that since that time he has been attempting to schedule the Site Plan Review application for a hearing before the Planning Commission. On Friday, January 10, 1992, Mr. Colyear visited City Hall to confirm that his application would be heard later that month, and was told by the Principal Planner that the City Attorney had instructed her not to schedule a hearing on the application until further notice. Mr. Colyear asserted that this constitutes a denial of his right to equal protection under the law and a violation of his constitutional right to due process. He. contended it is circumstantial proof of the City's malicious intent and will serve to increase the damages sought in a pending lawsuit. His attorney will be looking into the possibility of pursuing a conspiracy theory against all parties involved in this action. He requested that the City Council order the Planning Commission at its next meeting to do whatever they choose to do with his six-month old application for a Site Plan Review and send it to the City Council at their very next meeting. Second, Mr. Colyear again expressed his opinion that the minutes of the December 23, 1991 Council meeting were incorrect in stating that the comments of the State Department of Housing and Community Development had been addressed in the latest draft revised Housing Element. As a taxpayer he objected to the City's payment of $100,000 to Cotton/Beland. 7 C, , y `Oo i csL /I/rJU7�S I/13bg._ ITEM REMOVED FROM CONSENT CALENDAR e. Correspondence from Mountains Recreation and Conservation Authority requesting support for the Los Angeles County Park, Beach and Recreation Act of 1992. Councilmember Leeuwenburgh requested that the Rolling Hills City Council join with the other Peninsula cities in supporting the placement of the Los Angeles County Park, Beach and Recreation Act of 1992 on the June 1992 ballot. Councilmember Leeuwenburgh moved approval of the request of the Mountains Recreation and Conservation Authority and directed staff to implement the process. The motion was seconded by Councilmember Heinsheimer and passed without objection. Mr. Richard Colyear, 35 Crest Road West, asked to make a statement regarding the minutes of the December 23, 1991 City Council meeting. He said the minutes reflected only a portion of his testimony regarding the draft amendment to the Housing Element of the City of Rolling Hills General Plan. Mr. Colyear requested the addition of a sentence saying that he objected to the findings which specify the adverse impacts of second units on public health, safety and welfare. 2 -T`-c CO v a t`l3I°f� PUBLIC HEARINGS A. CONSIDERATION OF DRAFT AMENDMENT TO THE HOUSING ELEMENT OF THE CITY OF ROLLING HILLS GENERAL PLAN. (a) RESOLUTION NO. 660: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE 1991 HOUSING ELEMENT OF THE GENERAL PLAN OF THE CITY OF ROLLING HILLS AND A NEGATIVE DECLARATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. City Manager Nealis reported that the City's draft revised Housing Element was submitted to the State Department of Housing and Community Development for review, and appropriate changes were made to the revised draft in response to the HCD comments. The Planning Commission has recommended approval by the City Council. Mayor Pernell opened the public hearing. Mr. Richard Colyear, 35 Crest Road West, asked several questions relating to payments to Cotton/Beland Associates. Mayor Pernell suggested that such questions be submitted in writing to allow staff time to research and prepare answers, and reminded Mr. Colyear that this public hearing was for comments on the draft Housing Element. Mr. Colyear raised several objections to the Land Use Controls section of the draft Housing Element, specifically with reference to the preclusion of second units on single-family lots. He contended that the City of Rolling Hills is legally obligated to permit its fair share of low and moderate income housing, and stated that exclusionary zoning could lead to litigation by public interest law firms. He urged the City Council not to take actions which would zone out poor or less fortunate people. No additional public testimony being offered, Mayor Pernell closed the public hearing. Councilmember Heinsheimer moved approval of Resolution No. 660 adopting the revised draft Housing Element and incorporating the changes contained in Cotton/Beland's letter of December 23, 1991. The motion was seconded by Councilmember Murdock and passed 4-0. Co c L hIN�,:,�� lala3 q1 • 40ag.). Deputy .- ORIGINAL REC'D L.A. TONTYCLEX4 County Clerk FROM: City of Rolling Hills$$ County of Los Angeles 2 Portuguese Bend Road JA 161992 111 North Hill Street Rolling Hills, CA 90274 I Los Angeles, CA 90012 SUBJECT: Filing of Notice of Determination in compliance with Section 21108 and 21152 of the Public Resources Code. DD FEB 2 0 8992 City0 /OLLtfl O ✓�tLLd INCORPORATED JANUARY 24, 1957 CITY. OF 'MUM HILLS ` r . - 1\terrrt/ TttC=LTES"tni'elvrxHOAD NOTICE OF DETERMINATION ROLLING HILLS, CALIF. 90274 (213) 377-1521 1991 Housing Element of the General Plan of the City of Rolling Hills Project Title State Clearinghouse No. (If submitted to Clearinghouse) Lola Ungar Lead Agency Contact Person (310) 377-1521 Area Code/Phone The entire City of Rolling Hills, County of Los Angeles Project Location (include county) Project Description: 1991 Revised Housing Element of the General Plan of the City of Rolling Hills. This is to advise that the Rolling Hills City Council has approved the above described project on December 23, 1991 and has made the following determinations regarding the above described project: 1. The project [ will X will not] have a significant effect on the environment. 2. An Environmental Impact Report was prepared for this project pursuant to the provisions of CEQA. X A Negative Declaration was prepared for this project pursuant to the provisions of CEQA. 3. Mitigation measures [ were X were not] made a condition of the approval of the project. 4. A statement of Overriding Considerations [ was X was not] adopted for this project. 5. Findings [ X were were not] made pursuant to the provisions of CEQA. This document is being filed in duplicate. Please acknowledge the filing date and return acknowledged copy in the enclosed, stamped, self-addressed envelope. Signature public Agency) Date received for filing: sRO 'xv ` 9 r3 �18- 9-92 •, EP Jr COTJ T - CDE K FcM 3 a9 4- b ORIGINAL REC'D L.A. COUNTY CLERK JA x.61992 Deputy CALIFORNIA DEPARTMENT OF FISH AND GAME CERTIFICATE OF FEE EXEMPTION De Minimus Impact Finding Project Title/Location Name and Address of Project Proponent (include county): 1991 Housing Element of the General Plan of the City of Rolling Hills, City of Rolling Hills, Rolling Hills, CA, County of Los Angeles Project Description: 1991 Revised Housing Element of the General Plan of the City of Rolling Hills Findings of Exemption (attach required findings): The City Council finds that there is no evidence that the 1991 Housing Element of the General Plan of the City of Rolling Hills willhave an effect on endangered or threatened species of plants and animals. The City Council finds that the 1991 Housing Element of the General Plan of the City of Rolling Hills will not have an effect on wetlands and that water courses will not be eliminated or converted. Certification: I hereby certify that the lead agency has made the above findings of fact and that based upon the initial study and hearing record the project will not individually or cumulatively have an adverse effect on wildlife resources, as defined in Section 711.2 of the Fish and Game Code. 'I S NOTICE WAS POSTtii JAI mom . 7 1992 8 1992. EPU/$Y BOUNTY CLERK LOLA UNGAR (Chief Planning Official) Title: Principal Planner Lead Agency:City of Rolling Hills Date January 2,.1992 %TATE OF CALIFORNIA -THE RESOURCES AGENCY ARTMENT OF FISH AND GAME ENVIRONMENTAL FILING FEE H RECEIPT DFG 72,5a�� Lead Agency: 01330 Date: [ V 6 —9( County/State Agency of Filing: Document No.: roject Title:/9D roject Applicant Name: Project Applicant Address:( Kf d&/c L /4' i (W. 9(f ?y Project Applicant (check appropriate box): Local Public Agency School District Other Special Distfict State Agency 0 Private Entity 0 ��® 4-t wL 4-R Nab) Ake-gL�' Phone Number: CHECK APPLICABLE FEES: ( ) Environmental Impact Report $850.00 $ ( ) Negative Declaration $1,250.00 $ ( ) Application Fee Water Diversion (State Water Resources Control Board Only) $850.00 $ ( ) Projects Subject to Certified Regulatory Programs $850.00 $ County Administrative Fee $25.00 $ 5-/ a Project that is exempt from fees ignature and title of person receiving payment: I. FIRST COPY -PROJECT APPLICANT SECOND COPY-DFG/FASB THIRD COPY -LEAD AGENCY FOURTH COPY-COUNTY/STATE AGENCY OF FILING TOTAL RECEIVED $r ) i) - .CITY OF ROLLING HILLS 1991 Howsing Element DETACH AND RETAIN THIS STATEMENT �� C1iy Rolling JUL INCORPORATED JANUARY 24, 1957 NOTICE OF DETERMINATION ORIGINAL RECD L.A. COt Y CLERKX County Clerk County of Los Angeles JA 161992 111 North Hill Street Los Angeles. CA 90012 IJCNuLL NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF_ 90274 (213) 377-1521 FAX (213077-7288 FROM: City of Rolling i ls 2 Portuguese Bend Road Rolling Hills, CA 90274 SUBJECT: Filing of Notice of Determination_ in compliance Section 21108 and 21152 of the.Public Resources with Code. 1991 Housing Element of the General Plan of the City of Rolling Hills Project Title _-- Lola Ungar State Clearinghouse No. Lead Agency (If submitted to Clearinghouse) Contact Person (310) 377-1521 Area Code/Phone The entire City of Rolling Hills, County of Los Angeles Project Location (include county) Project Description: 1991 Revised Housing Element of the General Plan of the City of Rolling Hills. This is to advise that the Rolling Hills City Council has approved the above described project on December 23, 1991 and has made the following -determinations regarding the above described project: 1. The project [ will X will not] have a significant effect on the environment. 2. An Environmental Impact Report was prepared for this project pursuant to the provisions of CEQA. _X_ A Negative Declaration was prepared for this project pursuant to the provisions of CEQA. 3. Mitigation measures [ were Y were notl made a condition of the approval of the project. 4. A statement orOverriding Considerations [ was X was not] adopted for this project. 5. Findings [ X were were not] made pursuant to the - provisions of CEQA. This document is being filed -in duplicate. Please acknowledge the filing date and return acknowledged copy in the enclosed, stamped, self-addressed envelope. Signature '(.Public Agency) Date received for filing: Principal Planner Title ANAL REC'D L.A. COUNTY CLERK Deputy (,AL TFORNIA DEP PTMFNT nP' FIS ANT) GAME CERTIFICATE OF FEF EYEMPTION De Minimus Impact Finding Project Title/Location Name and Address of Project Proponent (include county): 1991 Housing Element of the General Plan of the City of Rolling Hills, City of Rolling Hills, Rolling Hills, CA, County of Los Angeles Project Description: 1991 Revised Housing Element of the General Plan of the City of Rolling Hills Findings of Exemption (attach required findings): The City Council finds that there is no evidence that the 1991 Housing Element of the General Plan of the City of Rolling Hills will have an effect on endangered or threatened species of plants and animals. The City Council finds that the 1991 Housing Element of the General Plan of the City of Rolling Hills will not have an effect on wetlands and that water courses will not be eliminated or converted. 'Certification: I hereby certify that the lead acencv has rade the above findincs of fact and that based upon the initial study and hearine record the Dro, ect will not individual 1 y or c .....'_ ativel ha7e a__ adverse effect on wildlife resources, as defined in Section 711.2 of the r4- 1 and rlf=me Code. LOLA UNGAR (Chief Planning Official) Title: Principal Planner Lead Acency: City ^f Pol 1 inc Date January 2,.1992 t14 11c •City 0/leo/ling -AIL • INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX: (213) 377-7288 Agenda Item No: 4.A Mtg. Date: 1243-91 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: CRAIG R. NEALIS, CITY MANAGER SUBJECT: CONSIDERATION OF DRAFT AMENDMENT TO THE HOUSING ELEMENT OF THE CITY OF ROLLING HILLS GENERAL PLAN DATE: DECEMBER 23, 1991 Comments were received from the State Department of Housing and Community Development on Thursday relating to the attached Draft Amendment to the Housing Element of the General Plan. Cotton Belland Associates' representative Karen Warner is preparing a detailed memorandum responding to the HCD comments. A copy of this memorandum, as well as a completed Resolution, will be presented to the City Council Monday evening. CN:ds 1 GODFREY PERNELL Mayor GORDANA SWANSON Mayor Pro Tem GINNY LEEUWENBURGH Councilwoman JODY MURDOCK Councilwoman THOMAS F. HEINSHEIMER Councilman TO: FROM: • City • opeo tine _fa INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX: (213) 377-7288 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL CRAIG R. NEALIS, CITY ADMINISTRATOR SUBJECT: DRAFT AMENDMENT TO THE HOUSING ELEMENT OF THE CITY OF ROLLING HILLS GENERAL PLAN DAIL: DECEMBER 23. 1991 Attached is the Draft Amendment to the Housing Element of the City of Rolling Hills General Plan. The amendment has been prepared to comply with state laws in requirements and consists of minor changes that did not change the direction or intent of the housing element. Members of the Rolling Hills Planning Commission considered this document at their regular meeting held Tuesday, November 19, 1991. At that meeting, the Draft Amendment was recommended for approval by the City Council. A copy of the Planning Commission Resolution recommending City Council approval is included with the Staff Report. The subject document will not have a significant effect on the environment. Accordingly, in conformance with California Environmental Quality Act, a negative declaration has been prepared. RECOMMENDATION It is recommended that the City Council review the subject document, take public testimony, if any, and adopt the attached amendment. Printed on Recycled Paper. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE 1991 HOUSING ELEMENT OF THE GENERAL PLAN OF THE CITY OF ROLLING HILLS AND A NEGATIVE DECLARATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT THE CITY COUNCIL OF THE CITY OF ROLLING HILLS DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: SECTION 3. Pursuant to the requirements of Government Code Section 65588(a), the City of Rolling Hills has reviewed the Housing Element of the General Plan of the City and has determined that it is appropriate to revise that Element to reflect the results of this review. SECTION 2. The City prepared a draft revised Housing Element and submitted it to the state Department of Housing and Community Development ("HCD") for review on November 5, 1991 pursuant to Government Code Section 65585(b). HCD's comments on the draft in the form of a letter dated 1991 were received by the City on , 1991. SECTION 3. Pursuant to Government Code Section 65352, copies of the revised draft have been provided to the Cities of Rancho Palos Verdes and Rolling Hills Estates, the County of Los Angeles, and the Los Angeles County Local Agency Formation Commission. SECTION 4. Pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. ("CEQA"), the State CEQA Guidelines, California Code of Regulations, Title 14, Sections 15000 et seq., and the City's Local CEQA Guidelines, the City prepared an initial study and determined that there was no substantial evidence that the adoption of the revised Housing Element may have a significant effect on the environment. Accordingly, a negative declaration was prepared and notice of that fact was given in the manner required by law. SECTION 5. A duly noticed public hearings before the Planning Commission to consider the proposed negative declaration and the revised Housing Element was held on November 19, 1991 at which time public comments on the negative declaration and revised Housing Element were received by the Commission. A duly notice public hearing before the City Council to consider the proposed negative declaration and the revised Housing Element was held on December 23, 1991 at which time further public comments were received by the Council. Vatson LA44 1_-1c • • SECTION 6. Based upon the facts contained in this resolution, those contained in the staff'reports and other components of the legislative record, those contained in the proposed negative declaration and revised Housing Element, and the public comments received by the Planning Commission and City Council, and the written recommendation of the Planning Commission pursuant to Government Code Section 65354, the City Council hereby finds as follows: (a) The City Council considered the proposed negative declaration together with comments upon it received in the public review process and finds that there is no substantial evidence that the adoption of the revised Housing Element will have a significant effect on the environment. (b) City staff and the City Council have reviewed the Housing Element Guidelines adopted by HCD pursuant to Section 50459 of the Health and Safety Code and the findings contained in HCD's comment letter of , 1991. The City Council has determined that it is not necessary to revise the draft in response to those comments for the reasons stated by the City's consultant in a memorandum to this Council dated , 1991 which is incorporated herein as if set out in full. (c) The revised Housing Element is in full compliance with the requirements of Government Code Sections 65580 - 65589.8 as demonstrated by the analysis set forth by the memorandum of the City's consultant dated , 1991. (d) The revised Housing Element is consistent with the other elements of the General Plan because the revised Housing Element uses the land use designations of the Land Use Element and those designations in turn are reflective of, and consistent with, the policies and provisions of the remaining elements of the General Plan. (e) The housing goals, objectives, and policies stated in the revised Housing Element are appropriate for the City of. Rolling Hills and will contribute to the attainment of the state housing goal. (f) The adoption of the revised Housing Element will aid the City's efforts to assist in the development of housing for all members of the community. (g) For the foregoing reasons, the adoption of the revised Housing Element is in the public interest. SECTION 7. The City council of the City of Rolling Hills hereby adopts the proposed negative declaration and approves the. revised draft Housing Element as the 1991 Housing Element of the General Plan of the City of Rolling Hills. a644.n c ciZUTION 8. The City Clerk is hereby dAsected to distribute copies of the •1 Housing Element of the neral Plan of the City of Rolling Hills as provided in Section 65357 of the California Government Code. PASSED, APPROVED AND ADOPTED this day of 1991. Mayor ATTEST: City Clerk 6644.mgc • Fcl COTTON/BELAND ASSOCIATES, INC. URBAN AND EN\'II:ON MENTAL PLANNING' CONSULTANTS December 23, 1991 Mr. Craig Nealis City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, CA 90274 SUBJECT: ROLLING IIILT_,S HOUSING ELEMENT Dear Mr. Nealis: I have reviewed the State Department of Housing and Community Development's (IUD) comment letter an the October 23, 1991 draft Rolling Hills Housing Element; 1 have included a copy of the Statc's letter as an appendix for your reference. The State's few comments almost wholly pertain to the issue of adequate zoning for the nine low and moderate income housing units identified as the City's regional need. In my opinion, the Housing Element well documents the overriding constraints to providing multi -family development in the City. I have prepared the following "response to conunents" to clearly identify how each of the State's comments pertaining to affordable housing development are already fully addressed in the Element. I do however suggest a program be added to the element to address the State's concerns regarding implementation of fair housing policies, and have included proposed wording. IICJ Comment: "The land inventory still does not include land zoned for multi -family housing or demonstrate how existing zoning allows the development of housing for low and moderate income households. In our opinion, in order to accommodate the City's share of the regional housing need for low -and moderate -income households, sites should be zoned at higher. densities. The only two zones listed in the element provide for one and two acre. minimum densities." Response: As described on pages 27 - 29 of the Housing Element, virtually all the land in Rolling Hills is subject to Covenants, Conditions and Restrictions (CC&Rs) established in 1936. These CC&Rs set forth two classifications of property and restrict the use of property in each classification to either only single family or single family and limited public use. Neither classification allows for the development of multi -family housing or for commercial, office or -1i EAST GREE!' STREET SUITE•1ff • PASADENA. '-\Ll OR 1A gt10.1 ;h IA! 304-010_ fAX.81813Qift J:' Mr. Craig Ncalis December 23, 1991 Page 2 industrial activity. Modifying the City's zoning to allow for increased residential densities would not alter the development limitations dictated by the CC&Rs. I-lence, the City's zoning standards are not an effective constraint to housing supply. In addition to the CC&Rs, several environmental and infrastructure limitations preclude multi -family development in Rolling bills; these factors arc discussed on pages 34-35 of the Element. Soils and geologic conditions place great constraints on development in Rolling Hills. The City has experienced major landslides due to soil saturation and instability, and numerous active landslides continue to render significant areas of the City unsafe for development. New homes in Rolling Hills must utilize septic tanks and leach fields for disposal of sanitary waste due to the lack of sanitary sewers in most of the City. Past experience suggests substantial care and restraint must be exercised in the expansion of any existing systems or the addition of new systems to avoid possible ground instability due to saturation of upper soil layers. This situation and existing infrastructure constraints act to limit densities in the City. IICD Comment: "The element's programs do not address the City's need for low -and moderate -income housing. Additional programs should be included which clearly indicate the actions Rolling Hills will take to implement the programs and which describe how the City will utilize its land use controls, regulatory concessions and incentives, and appropriate federal and state financing programs to facilitate the development of low -and moderate -income housing." Response: The Implementing Programs section of the revised draft Housing Element (pages 46-51) is substantially expanded to include a comprehensive list of programs the City intends to implement to address its housing needs. Programs are included which utilize. Land use controls, regulatory concessions and incentives, and federal financing programs to facilitate the development of low and moderate income housing. Such programs include: Congregate Housing for Seniors, an Assessment Fee Program, Facilitate New Construction, Density Bonus Program, Neighborhood Sponsored Sewer Districts, and 'lousing Repair and Temporary Shelter on Landslide Sites. As described on pages 32-33 and in Appendix A of the Element, Rolling Hills is not eligible to receive funding under most State and Federal housing assistance programs. The absence of an "in -need" population or deteriorated housing in Rolling Hills renders the City ineligible for most types of governmental housing assistance. In addition, high rental values in the City preclude the use of HUD rental assistance programs. The City will continue to contribute what federal housing monies it does receive through the CT)RG program to nearby Mr. Craig Nealis December 23, 1991 Page 3 jurisdictions where land is less expensive to be explicitly used for the construction of affordable senior citizen housing. 1ICD Comment: "The element contains a density bonus program which appears to be inconsistent with State law because, among other things, the element does not include actions to mitigate the impact of the density restrictions of existing CC&Rs." Response:. No provision of the State density honus law (Section 65915-65918 of the Government Code) requires a jurisdiction to mitigate the impacts of Covenants, Conditions & Restrictions (CC&Rs) on the ability of that jurisdiction to grant a density bonus. It is not clear that the City has any legal authority to modify the development limitations imposed by the CC&Rs. The only relevant case law of which we are aware involved courts which refused to enforce CC&Rs which imposed occupancy limitations based race and ethnicity. If theoretically there were a way for the City to modify the CC&Rs, there would be a substantial cost associated with both the litigation required to receive a court ruling, and the necessary compensation to property owners for the caking of their property rights. As noted on page 34 of the Element, the City lacks the resources to pay for such legal fees or property owner compensation, or to•otherwisc subsidize housing costs. 1-ICX) Comment: "The element should include program actions to address, and when appropriate and legally possible remove'govcrnmental constraints to the maintenance, improvement, and development of housing for all income groups (Section 65583(c)(4)). For example, current zoning does not allow multifamily development. Land use policies are described in the element but specific program actions to mitigate their impact on low -and moderate -income housing opportunities are not included." Response: As described on page 29 of the Housing Element, development in Rolling Hills is controlled through both City enforced zoning and privately enforced Ce&—Rs. City zoning does not in itself constrain housing development. Reducing coning standards or increasing densities would not modify the development limitations dictated by the CC&Rs, which in effect control density. Thus, as demonstrated on pages 28-34 of the Element, there are no actual governmental constraints to housing supply which it is appropriate and legally possiblefor the City to remove. The Housing Element does contain program actions to facilitate the development of low and moderate income housing, including Congregate Housing for Seniors and Density Bonus programs. In addition, we suggest the following be added to Mr. Craig Nealis December 23, 1991 Page 4 the third paragraph on page 28 after the sentence which ends "split-level residences to allow greater height.": "These height limitations reflect the requirements of the CC&R's and therefore do not themselves constrain housing supply." IICD Comment: "Include a. program action to promote housing opportunities for all persons (Section 65583(c)(5)). In our opinion, a fair housing program should include an information dissemination component to guarantee full utilization of the housing discrimination referral program. For example, the City could publicize the complaint referral agency through the local media, schools, libraries, the post office, the community center, or through housing advocacy groups. The element includes goals to address the above areas but does not include specific program actions to accomplish stated goals and policies." Response: We suggest the following program be added to page 51 of the Housing Element to implement the City's fair housing policy: "Fair Housing Program As a participating City in the Urban County Community Development Block Grant Program, Rolling Hills cooperates with the Fair Housing Congress of Southern California through the Long Beach Fair Housing Foundation to enforce fair housing laws. As a means of increasing public awareness of legal rights under fair housing laws, the City will advertise services offered by the Fair Housing Foundation, including housing discrimination response, landlord -tenant relations, housing information and counseling, and community education programs. Quantified Objective: Provide informational brochures at the public counter and local library, and place periodic advertisements in the local newspaper. Funding Source: CDBG, City budgets. Mr. Craig Nealis December 23, 1991 Page 5 Responsible Agency: City Planning Department. Implementation Time Frame: One Year." We look forward to adoption of the Housing Element. Sincerely, Karen A. Warner, MCP M584.02/c STATE OF CALIFORNIA - BUSINESS, TRANSPORTATION AND HOUSING AGENCY DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 1800 THIRD STREET. Room 430 P.U. BOX 952053 SACRAMENTO. CA 9x2.52.2053 (916) 32—;76 FAX (916) 323-662.5 December 20, 1991 Mr. Terrence Belanger City Manager City of Rolling Hills 2 Portuguese Rend Road Rolling Hills, CA 90274 PETE WILSON, t,overnor Dear Mr. Belanger: RE: Review of City of Rolling Hills' Draft Housing Element Thank you for submitting Rolling Hills' draft housing element, received for our review on November 6, 1991. As you know, we are required to review draft housing .elements and report our findings to the locality (Government Code 65585(b)). Our review was facilitated by telephone conversations with the City's consultant, Karen Warner, including one on December 13, 1991. This letter summarizes the results of that conversation. The Rolling Hills element amendment responds to some of the issues in our December 12; 1989 review letter. In our -opinion, however, there arc:several areas which require revisions to bring the element into compliance with state housing element law (Article 10.6 of the Government Code). In particular the element still does not include adequate sites to accommodate low- and moderate -income households in the City. The element should: 1'. Identify adequate sites available for the construction of housing to meet the City's identified needs (Section 655583 (c)(1)). The sites identified for potential residential development should be able to accommodate housing which will meet the projected need by income level. The land inventory still does no: include land zoned for multifamily housing or demonstrate how existing zoning allows the development of housing for low- and moderate -income households. In our opinion, in order to accommodate the City's share of the regional housing need for low- and moderate --income households, sites Mr. Terrence Belanger Page 2 should be zoned at higher densities. The only two zones listed in the element provide for one and two acre minimum densities. 2. Include additional programs to assist in the development of housing for low- and moderate -income households (Section 65583(C)(2)). The element's programs do not address the city's need for low-- and moderate -income housing. Additional programs should be included which clearly indicate the actions Rolling Hills will take to implement the programs and which describe how the City will utilize its land use controls, regulatory concessions and incentives, and appropriate federal and state financing programs to facilitate the development of low- and moderate -income housing. The element contains a density bonus program which appears to be inconsistent with State law because, among other things, the element does not include actions to mitigate the impact of the density restrictions of existing CC&Rs. 3. The element should include program actions to address and, when appropriate and legally possible, remove governmental constraints to the maintenance, improvement_, and development of .housing for all income levels (Section 65583(c)(4)). For, example, current zoning does not allow multifamily development. Land use policies are described in the element but specific program actions to mitigate their impact on low- and moderate -income housing opportunities are not included. 4. Include a program action to promote housing opportunities for all persons (Section 65583(c)(5)). In our opinion, a fair housing program should include an information dissemination component to guarantee full utilization of the housing discrimination referral program. For example, the City could publicize the ::ompiaint referral agency through the local media, schools, libraries, the post office, the community center, or through housing advocacy groups. The element includes goals to address the above areas but does not include specific program actions to accomplish stated goals and policies. Mr. Terrence Belanger Page 3 We understand that the city has made' a decision to not address housing needs through modification of current land use policies and programs, but has made a commitment to continue assisting low- and moderate -income households through existing arrangements with the City of Lomita. However, the City is still responsible for accommodating its regional share of identified need in the City. We hope our comments are helpful to the City. If you have any questions about our comments, please contact William Andrews of our staff at (916) 323-7271. We look forward to receiving a. copy of the adopted element pursuant to Government Code Section 65585(h). In accordance with request, pursuant to the Public Records Act, we are forwarding copies of this letter to the persons and organizations listed below. Sincerely, Thomas S. Cook Deputy Director Housing Policy Development cc: Karen Warner, Cotten Reland and Associates Carlyle W. Hall, Hall & Phillips Law Firm Jonathan Lehrer-Graiwer, Attorney at Law western Center on Law & Poverty Fair Housing Council of the San F'ernando Valley Mark Johnson, Legal Aid Foundation of Los Angeles Ana Marie whitaker, California State University Pomona Dennis Rockway, Legal Aid Foundation of Long Beach David Booher, California Housing Council Maya Dunne, City of Irvine Joe Carreras, Southern California Association of Governments Kathleen Mikkelsan, Deputy Attorney.Generai Bob Cervantes, Governor's Office of Planning and Research 'Richard Lyon, California Building Industry Association Kerry Harrington Morrison, California Association of Realtors Marc Brown, California Rural Legal Assistance Foundation Christine D. Reed, Orange County Building Industry Association Rob wiener,- California Coalitiror. for Rural Housing Susan DeSantis, The Planning Center 1 COTTONISELAND/ASSQGIATES, INC. URBAN AND F.NVIRONMLN1 AI PLANNING C.ONSULTAN 1 5 December 23, 1991 Mr. Craig Nealis City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, CA 90274 SUBJECT: ROLLING HILLS HOUSING ELEMENT rd5c-I Dear Mr. Nealis: I have reviewed the State Department of Housing and Community draft Rolling Development's (HCD) comment letter on the October 23, 91 Hills lIousing Element; I have included a copy of the State's letter as an appendix for your reference. The State's few comments almost wholly pertain to the issue of adequate zoning for the nine low and moderate income housing units identified as the City's regional need. In my opinion, the Housing Element well documents the overriding constraints to providing multi -family development in the City. I have prepared the following response to comments" to clearly identify how each of the State's comments pertaining to affordable housing development are already fully addressed in the Element. do �owev implementation, of ram be faidred to the ho sing element to address the State's regarding policies, and have included proposed wording. HCD Comment: "The land inventory still does not include land zoned for multi -family housing or demonstrate how existing zoning allows the development of housing for low and moderate income households. In our opinion, in order to acconunodatc the City's share of the regional housing need for low -and moderate -income households, sites should be zoned at higher densities. The only two zones listed in the element provide for one and two acre minimum densities." Response: As described on pages 27 - 29 of the Housing Element, virtually all the land in Rolling Hills is subject to Covenants, Conditions and Restrictions (CC&Rs) established in 1936. These CC&Rs set forth two classifications of property and restrict the use of property in each classification to either only single family or single family and limited public use. Neither classification allows for the development of multi -family housing or for commercial, office or 747 CAS1 CREFN STRFF I SUI I ( 400 • PASADLNA, CALIFOKNI \ 91101 (818) :Su4.01(2 FAX (8181 304 0402 (,I9 SOUTH VULCAN AVENUE SUITE 20S • ENCINITAS. CAI IroRNIA 920:4 {( 19) 914-4194 FAX (h19194_'{4043 ! • Mr. Craig Nealis December 23, 1991 Page 2 industrial activity. Modifying the City's zoning to allow for increased residential densities would not alter the development limitations dictated by the CC&Rs. Hence, the City's zoning standards are not an effective constraint to housing supply. In addition to the CC&Rs, several environmental and infrastructure limitations preclude multi -family development in Rolling Hills; these factors arc discussed on pages 34-35 of the Element. Soils and geologic conditions place great constraints on development in Rolling Hills. The City has experienced major landslides due to soil saturation and instability, and numerous active landslides continue to render significant areas of the City unsafe for development. New homes in Rolling Hills must utilize septic tanks and leach fields for disposal of sanitary waste due to the lack of sanitary sewers in most of the City. Past experience suggests substantial care and restraint must be exercised in the expansion of any existing systems or the addition of new systems to avoid possible ground instability due to saturation of upper soil layers. This situation and existing infrastructure constraints act to limit densities in the City. HCD Comment: 'The element's programs do not address the City's need for low -and moderate -income housing. Additional programs should be included which clearly indicate the actions Rolling Hills will take to implement the programs and which describe how the City will utilize its land use controls, regulatory concessions and incentives, and appropriate federal and state financing programs to facilitate the development of low -and moderate -income housing." Response: The Implementing Programs section of the revised draft Housing Element (pages 46-51) is substantially expanded to include a comprehensive list of programs the City intends to implement to address its housing needs. Programs are included which utilize land use controls, regulatory concessions and incentives, and federal financing programs to facilitate the development of low and moderate income housing. Such programs include: Congregate Mousing for Seniors, an Assessment Fee Program, Facilitate New Construction, Density Bonus Program, Neighborhood Sponsored Sewer Districts, and Housing Repair and Temporary Shelter on Landslide Sites. As described on pages 32-33 and in Appendix A of the Element, Rolling Hills is not eligible to receive funding under most State and Federal housing assistance programs. The absence of an "in -need" population or deteriorated housing in Rolling Hills renders the City ineligible for most types of governmental housing assistance. In addition, high rental values in.the City preclude the use of IILD rental assistance programs. The City will continue to contribute what federal housing monies it does receive through the CDBG program to nearby Mr. Craig Ncalis December 23, 1991 Page 3 jurisdictions where land is less expensive to be explicitly used for the construction of affordable senior citizen housing. HCD Comment: "The element contains a density bonus program which appears to be inconsistent with Stale law because, among other things, the element does not include actions to mitigate the impact of the density restrictions of existing CC&Rs." Response: No provision of the State density bonus law (Section 65915-65918 of the Government Code) requires ions sCC&Rs) ondiction to lthc ability o ate the Phat jurisdiction of Covenants, Conditions & Restrict to grant a density bonus. It is not clear that the eth ttCC&Rs has any The only releal vant to modify the development limitations imposed by law of which we are aware involved courts which refused to enforce CC&Rs which imposed occupancy limitations "baseld erace there ouldIf tbe�a substantial there were a way for the City to modify t the cost associated with both the litigation required to receive a court ruling, and necessary compensation to property owners for the taking of their property rights. As noted on page 34 of the Element, the City lacks the resources to pay for such legal fees or property owner compensation, or to otherwise subsidize housing costs. HCD Comment: 'The element should include program actions to address, and when appropriate and legally possible remove governmental constraints to the maintenance, improvement, and development of housing for all income groups (Section 65583(c)(4)). For example, current zoning does not allow multifamily development. Land use policies are described in the element.but specific program actions to mitigate their impact on low -and moderate -income housing opportunities are not included. Response: As described on page 29 of the Housing Element, development in Rolling Hills is controlled through both City enforced zoning and privately enforced CC&Rs. City zoning does not in itself constrain housing development. Reducing zoning standards or increasing densities would not modify the development limitations dictated by the CC&Rs, which in effect control density. Thus, as demonstrated on pages 28-34 of the Element, there 'e rrcterc no actual governmental constraints to housing supply which it is a rop and gall y possible for the City to remove. The Housing Element does contain program actions to facilitate the development of low and moderate income housing, including Congregate Housing for Seniors and Density Bonus programs. In addition, we suggest the following be added to Mr. Craig Ncalis December 23, 1991 Page 4 the third paragraph on page 28 after the sentence which ends "split-level residences to allow greater height.": "These height limitations reflect the requirements of the CC&R's and therefore do not themselves constrain housing supply." HCD Comment: "Include a program action to promote housing opportunities for all persons (Section 65583(c)(5)). In our opinion, a fair housing program should include an information dissemination component to guarantee full utilization of the housing discrimination referral program. For example, the City could publicize the complaint referral agency through the local media, schools, libraries, the post office, the community center, or through housing advocacy groups. The element includes goals to address the above areas but does not include specific program actions to accomplish stated goals. and policies." Response: We suggest the following program be added to page 51 of the Housing Element to implement the City's fair housing policy: "Fair Housing Program As a participating City in the Urban County Community Development Block Grant Program, Rolling Hills cooperates with the Fair Housing Congress of Southern California through the Long Beach Fair Housing Foundation to enforce fair housing laws. As a means of increasing public awareness of legal rights under fair housing laws, the City will advertise services offered by the Fair Housing Foundation, including housing discrimination response, landlord -tenant relations, housing information and counseling, and community education programs. Quantified Objective: Provide informational brochures at the public counter and local library, and place periodic advertisements in the local newspaper. Funding Source: CDBG, City budgets. Mr. Craig Ncalis December 23, 1991 Page 5 Responsible Agency: City Planning Department. Implementation Time Frame: One Year." We look forward to adoption of the Housing Element. Sincerely, ieramAA, kdOck.A.A.A.ve-- Karen A. Warner, AICP M584.02/c 9 TATIDN AND NOUSIN3 AGENCY • PETE w1LSON, Governor STATE Of G4L�fC�?A . BUS;N£SS, Ti�4 -_— DEPARTMENT OF HOUSINGANDCOMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 1800 THIRD STREET, Room 430 Y.O. BOX 952053 SACRAMENTO, CA 94252.2053 (916) 333176 FAX (916) 323.6625 December 20, 1991 Mr. Terrence Belanger City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, CA 90274 Dear Mr. Belanger: RE: Review of City of Rolling Hills' Draft Housing Element Thank you for submitting Rolling Hills' draft housing element, received for our review on November 6, 1991. As you know, we are required to review draft housing elements and report our findings to the locality (Government Code 65585(b)). Our review was facilitated by telephone conversations with the City's consultant, Karen Warner, including one on December 18, 1991. This letter summarizes the results of that conversation. The Rolling Hills element amendment responds to some of the issues in our December 12, 1989 review letter. In our opinion, however, there are several areas which require revisions to bring the element into compliance with state housing element law (Article 10.6 of the Government Code). In particular the element still does not include adequate sites to accommodate low- and moderate -income households in the City. The element should: 1. Identify adequate sites available for the construction of housing to meet the City's identified needs (Section 655583 (c)(1)). The sites identified for potential residential development should be able to accommodate housing which will meet the projected need by income level. The land inventory still does not include land zoned for multifamily housing or demonstrate how existing zoning allows the development of housing for low- and moderate -income households. In cur opinion, in order to accommodate the moderatesincomefhouseroldsregional siteshousing need for low and Mr. Terrence Belanger Page 2 should be zoned at higher densities. The only two zones listed in the element provide for one and two. acre'minimum densities. 2. Include additional programs to assist in the development of housing for low- and Tmohe element's drat -income households (Section 65583(c)(2)). programs do not address the city's need for low- and moderate -income housing. Additional programs should be included which clearly indicate the actions Rolling Hills will take to implement the programs and which describe how the City will utilize its land use controls, regulatory concessions and incentives, and appropriate federal and state financing programs to facilitate the development of low- and moderate -income housing. The element contains a density., bonus program which appears to be inconsistent with State law because, among other things, the element does not include actions to mitigate the impact of the density restrictions of existing CC&Rs. 3. The element should include program actions to address and, when appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development ofFhousing fofor alall income levels (Section 65583(c)(4)). t zoning does not allow multifamily development. Land use policies are described in the element but specific program actions to mitigate their impact on low- and moderate -income housing opportunities are not included. 4. Include a program action to promote housing opportunities for .all persons (Section 65583(c)(5)). In our opinion, a fair housing program should include an information dissemination component to guarantee full utilization of the housing discrimination referral program. For example, the City could publicize the complaint referral agency through the local media, schools, libraries, the post office, the community center, or through housing advocacy groups. The element includes goals to address the above areas but does not include specific program actions to accomplish stated goals and policies. Mr. Terrence Belanger Page 3 We understand that the City difhas cmade aofecisionttoanonot use address housing needs through policies and programs, but has made a commitment to continue i ng assisting low- and moderate -income City eof Lomita. Howeverththegh Citylis�stti_l arrangements with the City of responsible for accommodating its regional share of identified need in the City. If you have We hope our comments are helpfiease contactl to the yWilliam Andrews any questions about our oomments`We_look forward to receiving a of our staff at (916) 323-7271• of the adopted element pursuant to Government Code section c0 py 65585(h). In accordance with requests pursuant to the Publics Records s er Act, we are forwarding copies of this letter to the p organizations listed below. Sincerely, Thomas B. Cook Deputy Director Housing Policy Development cc: Karen Warner, Cotton Beland and Associates Carlyle W. Hall, Hall & Phillips Law Firm Jonathan Lehrer-Graiwer, Attorney at Law Western Center on Law & Poverty Fair Housing Council of the San Fernando Valleys Mark Johnson, Legal Aid Foundation of Los Ang e Ana Marie Whitaker, California State University Pomona Dennis Rockway, Legal Aid Foundation of Long Beach David Booher, California Housing Council Maya Dunne, City of Irvine Joe Carreras, Southern California Association of Governments Kathleen Mikkelson, Deputy Attorney General Bob Cervantes, Governor's Office of Planning and Association Richard Lyon, California Building Industry Kerry Harrington Morrison, California Association of Realtors Legal, Assistance Foundation Marc Brawn, California Rural Leg Building Industry Christine D. Reed, Orange County Association Rob Wiener, California Coalition for Rural Housing Susan DeSantis, The Planning Center • l2 fP,n9 Jhfh INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS. CALIF. 90274 (213) 377-1521 FAX: (213) 377-7288 Agenda Item No: 4.A Mtg. Date: 12-13-91 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: CRAIG R. NEALIS, CITY MANAGER SUBJECT: CONSIDERATION OF DRAFT AMENDMENT TO THE HOUSING ELEMENT OF THE CITY OF ROLLING HILLS GENERAL PLAN DATE: DECEMBER 23, 1991 Comments were received from the State Department of Housing and Community Development on Thursday relating to the attached Draft Amendment to the Housing Element of the General Plan. Cotton Belland Associates' representative Karen Warner is preparing a detailed memorandum responding to the HCD comments. A copy of this memorandum, as well as a completed Resolution, will be presented to the City Council Monday evening. CN:ds GODFREY PERNELL Mayor GORDANA SWANSON Mayor Pro Tern GINNY LEEUWENBURGH Councilwoman JODY MURDOCK Councilwoman THOMAS F. HEINSHEIMER Councilman TO: FROM: • aty 0/ Atli" INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX (213) 377-7288 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL CRAIG R. NEALIS, CITY ADMINISTRATOR SUBJECT: DRAFT AMENDMENT TO THE HOUSING ELEMENT OF THE CITY OF ROLLING HILLS GENERAL PLAN DATE: DECEMBER 23. 1991 Attached is the Draft Amendment to the Housing Element of the City of Rolling Hills General Plan. The amendment has. been prepared to comply with state laws in requirements and consists of minor changes that did not change the direction or intent of the housing element. Members of the Rolling Hills Planning Commission considered this document at their regular meeting held Tuesday, November 19, 1991. At that meeting, the Draft Amendment was recommended for approval by the City Council. A copy of the Planning Commission Resolution recommending City Council approval is included with the Staff Report. The subject document will not have a significant effect on the environment. Accordingly, in conformance with California Environmental Quality Act, a negative declaration has been prepared. RECOMMENDATION It is recommended that the City Council review the subject document, take public testimony, if any, and adopt the attached amendment. Printed on Recycled Paper. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS ADOPTING THE 1991 HOUSING ELEMENT OF THE GENERAL PLAN OF THE CITY OF ROLLING HILLS AND A NEGATIVE DECLARATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT THE CITY COUNCIL OF THE CITY OF ROLLING HILLS DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: SECTION 1. Pursuant to the requirements of Government Code Section 65588(a), the City of Rolling Hills has reviewed the Housing Element of the General Plan of the City and has determined that it is appropriate to revise that Element to reflect the results of this review. SECTION 2. The City prepared a draft revised Housing Element and submitted it to the state Department of Housing and Community Development ("NCD") for review on November 5, 1991 pursuant to Government Code Section 65585(b). HCD's comments on the draft in the form of a letter dated 1991 were received by the City on , 1991. SECTION 3. Pursuant to Government Code Section 65352, copies of the revised draft have been provided to the Cities of Rancho Palos Verdes and Rolling Hills Estates, the County of Los Angeles, and the Los Angeles County Local Agency Formation Commission. SECTION 4. Pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. ("CEQA"), the State CEQA Guidelines, California Code of Regulations, Title 14, Sections 15000 et seq., and the City's Local CEQA Guidelines, the City prepared an initial study and determined that there was no substantial evidence that the adoption of the revised Housing Element may have a significant effect on the environment. Accordingly, a negative declaration was prepared and notice of that fact was given in the manner required by law. SECTION 5. A duly noticed public hearings before the Planning Commission to consider the proposed negative declaration and the revised Housing Element was held on November 19, 1991 at which time public comments on the negative declaration and revised Housing Element were received by the Commission. A duly notice public hearing before the city Council to consider the proposed negative declaration and the revised Housing Element was held on December 23, 1991 at which time further public comments were received by the Council. SECTION s. Based upon the facts contained in this resolution, those contained in the staff reports and other components of the legislative record, those contained in the proposed negative declaration and revised Housing. Element, and the public comments received by the Planning Commission and City Council, and the written recommendation of the Planning Commission pursuant to Government Code Section 65354, the City Council hereby finds as follows: (a) The City Council considered the proposed negative declaration together with comments upon it received in the public review process and finds that there is no substantial evidence that the adoption of the revised Housing Element will have a significant effect on the environment. (b) City staff and the City Council have reviewed the Housing Element Guidelines adopted by HCD pursuant to Section 50459 of the Health and Safety Code and the findings contained in HCD's comment letter of , 1991. The City Council has determined that it is not necessary to revise the draft in response to those comments for the reasons stated by the City's consultant in a memorandum to this Council dated , 1991 which is incorporated herein as if set out in full. (c) The revised Housing Element is in full compliance with the requirements. of Government Code Sections 65580 - 65589.8 as demonstrated by the analysis set forth by the memorandum of the City's consultant dated , 1991. (d) The revised Housing Element is consistent with the other elements of the General Plan because the revised Housing Element uses the land use designations of the Land Use Element and those designations in turnare reflective of, and consistent with, the policies and provisions of the remaining elements of the General Plan. (e) The housing goals, objectives, and policies stated in the revised Housing Element are appropriate for the City of Rolling Hills and will contribute to the attainment of the state housing goal. (f) The adoption of the revised Housing Element will aid the City's efforts to assist in the development of housing for all members of the community. (g) For the foregoing reasons, the adoption of the revised Housing Element is in the public interest. SECTION 7. The City Council of the City of Rolling Hills hereby adopts the proposednegative declaration and approves the revised draft Housing Element as the 1991 Housing Element of the General Plan of the City of Rolling Hills. a644:mgc aak.:110 j S The City Clerk is hereby directed to distribute copies of the 1991 Housing Element of the ^eneral Plan of the City of Rolli Hills as provided in SectlPh 65357 of the California Gov cnment Code. PASSED, APPROVED AND ADOPTED this day of 1991. ATTEST: City Clerk e644.mgc • Mayor C1iyoMoPen9 Free INCORPORATED JANUARY 24, 1957 ORIGINAL RECD LA. COUNTY CLERK DE BY — NOTICE OF PUBLIC HEARING 0 5 1ng1 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF 90274 (213) 377-1521 FAX (213) 377-7288 NOTICE IS HEREBY GIVEN that the City Council of the City of Rolling Hills will hold a Public Hearing on Monday, December 23, 1991, in the Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California commencing at 7:30 p.m. to consider the following: DRAFT AMENDMENT TO THE HOUSING ELEMENT OF THE CITY OF ROLLING HILLS GENERAL PLAN Following review of the Initial Study for the project, Staff has determined that this project will not have a significant effect on the environment. Accordingly, a Negative Declaration has been prepared. Any person is welcome to review the subject document, prior to the public hearing at City Hall, 2 Portuguese Bend Road, Rolling Hills, between the hours of 8:00 a.m. to 12:00 noon, and 1:00 p.m. to 4:30 p.m. (closed 12:00 noon to 1:00 p.m.) Monday through Friday. If you challenge the approval or denial of this document in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Publish once in the Palos Verdes Peninsula News and the Rolling Hills Herald Saturday November 9, 1991 9 G R. NEALIS, CITY CLERK MIS N tl'ICL'W: `'U �D FIZOIDEC 9, 92 CO,M1 O ei4' Q /?Of/tfl INCORPORATED JANUARY 24, 1957 GODFREY PERNELL Mayor GORDANA SWANSON Mayor Pro Tem GINNY LEEUWENBURGH Councilwoman JODY MURDOCK Councilwoman THOMAS F. HEINSHEIMER Councilman January. 6, 1992 Mr. Bill Andrews State Department of Housing and Community Development 1800 Third Street, Room 430 Sacramento, CA 94252-2053 Subject: Adopted Housing Element for City of Rolling Hills Dear Mr. Andrews: NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX: (213) 377-7288 We are pleased to submit to HCD the enclosed Rolling Hills Housing Element, adopted by the City Council on December 23, 1991. We received HCD's comment letter on the draft, and the City Council considered these comments prior to adoption. We understand the State is now required to review the adopted housing element, and look forward to receiving the State's final letter within the next 120 days. Sincerely, dti,k Craig R. Nealis City Manager Printed on Recycled Paper. STATE OF CALIFORNIA - BUSINESS, TRAA PORTATION AND HOUSING AGENCY PETE WILSON, Governor DEPARTMENT OF HOUSING.AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 1800 THIRD STREET, Room 430 P.O. BOX 952053 SACRAMENTO, CA 94252-2053 (916) 323-3176 FAX (916) 323-6625 December 20, 1991 Mr. Terrence Belanger City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hilis, CA 90274 Dear Mr. Belanger: DEG 23 1991 RE: Review of City of Rolling Hilis' Draft Housing Element Thank you for submitting Rolling Hills' draft housing element, received for our review onNovember6, 1991. As you know, we are required to review draft housing elements and report our findings to the locality (Government Code 65585(b)). Our review was facilitated by telephone conversations with the City's consultant, Karen Warner, including one on December 18, 1991. This letter summarizes the results of that conversation. The Rolling Hills element amendment responds to some of the issues in our December 12, 1989 review letter. In our opinion, however, there are several areas. which require revisions to bring the element into compliance with state housing element law (Article 10.6 of the Government Code). In particular the element still does not include adequate sites to accommodate low- and moderate -income households in the City. The element should: 1. Identify adequate sites available for the construction of housing to meet the City's identified needs (Section 655583 (c)(1)). The sites identified for potential residential development should be able to accommodate housing which will meet the projected need by income level. The land inventory still does not include land zoned for multifamily housing or demonstrate how existing zoning allows the development of housing for low- and moderate -income households. In our opinion, in order to accommodate the City's share of the regional housing need for low- and moderate -income households, sites • • Mr. Terrence Belanger Page 2 should be zoned at higher densities. The only two zones listed in the element provide for one and two acre minimum densities. 2. Include additional programs to assist in the development of housing for low- and moderate -income households (Section 65583(c)(2)). The element's programs do not address the City's need for low- and moderate -income housing. Additional programs should be included which clearly indicate the actions Rolling Hills will take to implement the programs and which describe how the City will utilize its land use controls, regulatory concessions and incentives, and appropriate federal and state financing programs to facilitate the development of low- and moderate -income housing. The element contains a density bonus program which appears to be inconsistent with State law because, among other things, the element does not include actions to mitigate the impact of the density restrictions of existing CC&Rs. 3. The element should include program actions to address and, when appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing for all income levels (Section 65583(c)(4)). For example, current zoning does not allow multifamily development. Land use policies are described in the element but specific program actions to mitigate theirimpact on low- and moderate -income housing opportunities are not included. 4. Include a program action to promote housing opportunities for all persons (Section 65583(c)(5)). In our opinion, a fair housing program should include an information dissemination component to guarantee full utilization of the housing discrimination referral program. For example, the City could publicize the complaint referral agency through the local media, schools, libraries, the post office, the community center, or through housing advocacy groups. The element includes goals to address the above areas but does not include specific program actions to accomplish stated goals and policies. Mr. Terrence Belanger Page 3 We understand that the City has made a decision to not address housing needs through modification of current land use policies and programs, but has made a commitment to continue assisting low- and moderate -income households through existing arrangements with the City of Lomita. However, the City is still responsible for accommodating its regional share of identified need in the City. We hope our comments are helpful to the City. If you have any questions about our comments, please contact William Andrews of our staff at .(9,16) 323-7271. We look forward to receiving a copy of the adopted element pursuant to Government Code Section 65585(h). In accordance with requests pursuant to the Public Records Act, we are forwarding copies of this letter to the persons and organizations listed below. Sincerely, Thomas B. Cook Deputy Director Housing Policy Development cc: Karen Warner, Cotton Beland and Associates Carlyle W. Hall, Hall & Phillips Law Firm Jonathan Lehrer-Graiwer, Attorney at Law Western Center on Law & Poverty Fair Housing Council of the San Fernando Valley Mark Johnson,• Legal Aid Foundation of Los Angeles Ana Marie Whitaker, California State University Pomona Dennis Rockway, Legal Aid Foundation of Long Beach David Booher, California Housing Council Maya Dunne, City of Irvine Joe Carreras, Southern California Association of Governments Kathleen Mikkelson, Deputy Attorney General Bob Cervantes, Governor's Office of Planning and Research Richard Lyon, California Building Industry Association Kerry Harrington Morrison, California Association of Realtors Marc Brown, California Rural Legal Assistance Foundation Christine D. Reed, Orange County Building Industry Association Rob Wiener, California Coalition for Rural Housing Susan DeSantis, The Planning Center 1 RILE housing plan vio By Marie tiketpaifry STAFF WRITER Rolling Hills' newly approved housing plan antly violates California's affordable housing taws. but the state has no way to force the exclusive gated city to change the plan, state 18 officials said Monday. ut `n The City Council approved the housing plan 4-0 last week to meet a state deadline for the is establishment of such blueprints. The plan says the city cannot encourage affordable housing be- cause homeowners' association rules prohibit more than one house per acre. Stateofficials sent the city a letter Dec. 20 saying the city's plan violates affordable housing taws, which require each city to encourage con- struction of low- and moderate -income housing. t, But the council approved the plan anyway. a 72% of cities don't comply ie ►0 t- a 7 9 Rolling Hills is not the only housing -law viola- - 72 percent of California's cities don't com- ply with affordable -housing requirements, said Paul Kranhold, spokesman for the Department of Housing and Community Development, But most cities include at least some way to encourage affordable housing within their hous- ing plans, Kranhold said. Rolling Hills' claims that it can never provide affordable housing "could he considered an estrerae (violation)," he added. "Basically, what Rolling Hills has done is ahift the burden of providing housing onto other cit- ies," Kranhold said. "This sort of blatant disre- gard for state law doesn't benefit anybody." But state officials can do little about it, Kran- hold said the affordable housing laws don't in- clude penalties for disobeying them. Gov. Pete Wilson, however, is now working on a "growth management package" that may give more teeth to the housing taws, Kranhold said, but so fax no plan has been put forth. Also, Rolling Hills has placed itself at risk of being named in a lawsuit accusing the city of discriminatory housing policies, state officials. said. Groups such as the Legal Aid Foundation of Los Angeles have pressed housing -discrimination suits on behalf of clients in other cities. Rolling Hills officials say that economically and physically, it makes no sense to encourage tes law affordable housing in their city. The Palos Verdes Peninsula is a bedroom community with few job centers, and Raping Hills has no com- mercial enterprises at all. No public transportation The city of 2,000 residents has all private roads where no public transportation is allowed. Land typically sells for $1 million an acre. And the private homeowners' association, not the city, has established rules preventing any multi -family zoning, said City Attorney -Miichael Jenkins. State officials said in their letter to the city that City Hall should pressure the honieowrzers' association to change those rules so that afford- able multi -family housing could be built. Rolling Hills and the other Peninsula cities now give their federal block grant money to Lomita for its affordable housing programs and. other programs for low-income residents. City Manager Craig Nealis said Rolling Hills. plans to continue that commitment. Also, the city is encouraging a drive by El Segundo to allow affordable -housing planing on a regional basis, rather than city -by -city. _ Trimming the trees Founder of human relations Pay Breeze TUESDAY December 31, 1991 *** Dousing plan violates law; penalties. un4l By Marie Montgomery STAFF WHITER Rullin� 1 sills' new housing plan fla- grantly violates California's affordable housing laws --- but state official4 say they have no way to force the exclusive gated city to change it. The City Council approved the hous- ing guidelines 4-0 last week to meet a state deadline for establishing such blueprints. The plan says the city can- not encourage affordable housing be- cause homeowners' association rules prohibit more than one house per acre. State officials sent the city a leller Dec. 20, saying the plan violates afford- able housing laws that require each city to encourage construction of low- and moderate -income housing. But the coun- cil approved the plan anyway. -Rolling Hills is not the only violator. - About 72 percent of California's cities don't comply with affordable -housing ,r �id�Idf q requirements, said :Paul Kranhold, spokesman fur the Department of Hous- ing and Community Development. `Extreme' violation But most cities include at least some way to encourage affordable housing, Kranhold said. Rolling Hills' claim that it can never provide affordable housing "could be considered an extreme (viola- tion)," he added. Only a handful of other cities, includ- ing Hidden Hills in north Los Angeles County, have stated in their housing plans that they can't accommodate any affordable housing. "Basically, what Rolling Hills has done is shift the burden of providing housing onto other 'cities," Kranhold said Monday. "This sort of blatant dis- regard for,s(,ate law doesn't benefit any- body." Rut date officials can do little about it. Kr:uahold said the affordable housing laws don't include penalties'• (1uv. i'ete Wilson, however, is working on a "growth management package" that may give more teeth to housing laws,, Kranhold said. Rolling Hills has placed itself at risk of being named in a lawsuit accusing the. city of discriminatory housing policies, state officials said. Groups such'.as.the. Legal Aid Foundation of Los Angeles have pressed housing -discrimination suits on behalf of clients in other cities. No commercial enterprises Rolling Hills officials say that, eco- nomically and physically, it makes no sense to encourage affordable housing in their city. The Palos Verdes Peninsula is a bedroom community with few job cen- ters, and Rolling Hills has no commer- cial enterprises.`' ' The city of';'2;000'+( res private roads "there no public: traiaspor• tation is allowed.'Land.t ► $1 million an acre. An homeowners' association, not t ha's .'established rules preventing any.ty Imultifaniily. zoning,: said'City Attorn� ' Michael Jenkins.: • :r:a `� State officials sugges that City Hall pressure t association to change the able multifamily housing'' g�, " 1 tiib°�= Rolling Hills and the dt'heeeninsulaf cities now give their federal block grant money to Lomita for its affordable hous- ing programs and other programs for low-income residents. City Manager Craig Nealis said Roll- ing Hills plans to continue that commit- ment. Also, the city is encouraging a drive by El Segundo to allow affordable - housing , planning on a regional basis, rather than city -by -city. Metrofl$outh day R.H. Proposal for. Low -Cost Housing Unable to create low-income housing within its own boundaries, Rolling Hills will have to rely on neighboring cities to comply with state fair -housing guidelines, City Council members have decided. Officials of the private, gated, exclusively residential community Monday approved a new housing element for the city's General Plan that points to city codes that allow only one house per acre and do not permit rentals. The city uses no public funds to maintain roads or parks. City Atty. Michael Jenkins said the city will continue to give what public funds it does receive to neighboring cities to build low-cost housing. He argued that Rolling Hills can best meet the housing needs of low-income people by cooperating with other communi- ties. "We think that [the housing element] does the best the city can with the constraints," he said. "It is consistent with the idea of cooper- ating with our neighbors." Roo Motes Mimes FRIDAY DECEMBER 27.1991 B,CCt �L� 'Cuy WIZ/ling �aee INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX: (213) 377-7288 January 6, 1992 Mr. Douglas Prichard City Manager Rolling Hills Estates 4045 Palos Verdes Drive North Rolling Hills Estates, CA 90274 SUBJECT: 1991 ADOPTED HOUSING ELEMENT FOR THE CITY OF ROT.T.TNO HTT.LP Dear Mr. P rd: Attached find the Housing Element, adopted by the City Council on December 23, 1991. We received HCD's comment letter on the draft, and the City Council considered these comments prior to adoption. If you have auestiens, please fee' (310) 377-1521. Sincerely, 27,4 LOLA UNGARU PRINCIPAL PLANNER free tc, �' ac} *e at • ` !2 fli,.g JUL INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX (213) 377-7288 January 6, 1992 Ms. Michi Takahashi, Executive Assistant Local Agency Formation Commission 383 Hall of Administration 500 West Temple Street, 383 Los Angeles, CA 90012 SUBJECT: 1991 ADOPTED HOUSING ELEMENT FOR THE CITY OF ROLLING HILLS Dear Ms. Takahashi: Attached find the Housing Element, adopted by the City Council on December 23, 1991. We received HCD's comment letter on the draft, and the City Council considered these comments prior to adoption. If you have questions, p'_ease feel free to contact me at (310) 377-1521. Sincerely, k24_ 1(r-7/— LOLA UNGAR PRINCIPAL PLANNER City • 0/ leoffinl _Afro INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX: (213) 377-7288 January 6, 1992 Mr. Joe Carraras, Housing Southern California Association of Governments 818 W. 7th Street, 4th floor Los Angeles, CA'90017 SUBJECT: 1991 ADOPTED HOUSING ELEMENT 'FOR THE CITY OF ROLLING HILLS Dear Mr. Carraras: Attached find the Housing Element, adopted by the City Council on December 23, 1991. We received HCD's comment letter on the draft, and the City Council considered these comments prior to adoption. If you have questions, please feel free to contact me at (310) 377-1521. Sincerely, LOLA UNGAR PRINCIPAL PLANNER • City • 0/ leoffiny INCORPORATED' JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS. CALIF. 90274 (213) 377-1521 FAX: (213, 377-7288 January 6, 1992 Mr. Paul Hussey City Manager Rancho Palos Verdes 30940 Hawthorne Boulevard Rancho Palos Verdes, CA 90274 SUBJECT: 1991 ADOPTED HOUSING ELEMENT FOR THE CITY OF ROLLING HILLS Dear Mr. Benard: Attached find the Housing Element, adopted by the City Council on December 23, 1991. We received HCD's comment letter on the draft, and the City Council considered these comments prior to adoption. If you have questions, p'_ease feel free to contact me. at (310) 377-1521. Sincerely, LOLA UNGA PRINCIPAL PLANNER C144 0/k'0M 44/h INCORPORATED JANUARY 24, 1957 NOTICE OF.DETERMINATION TO: X County Clerk County 'of Los Angeles 111 North Hill Street Los Angeles. CA 90012 SUBJECT: NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS. CALIF. 90274 (213) 377-1521 FROM: City of Roll; ,FAX l71s88 2 Portuguese Bend Road Rolling Hills, CA 90274 Filing of Notice of Determination in compliance Section 21108 and 21152 of the Public Resources with Code. 1991 Housing Element of the General Plan of the. City of Rolling Hills Project Title State Clearinghouse No. (If submitted to Clearinghouse) Lola Tlna►ar Lead Agency Contact Person (310) 377-1521 Area Code/Phone The entire City of Rolling Hills: County of Los Angeles Project Location (include county) Project Description: 1991 Revised Housing Element of the General Plan of the City of Rolling Hills. This is to advise that the Rolling Hills City Council has approved the above described project on December 23, 1991 and has made the following determinations regarding the above •described project: 1. The project [ will X will not] have a significant effect 'on the environment. 2. An Environmental Impact Report was prepared for this pro-lect pursuant to the provisio_n_s of ^_EQA. _X_ A Negative Declaration was prepared for this project pursuant to the provisions of CEQA. 3. Mitigation measures [ were Y were not] made a condition of the approval of the project. 4. A statement of Overriding Considerations [ was X was not? adopted for this project. 5. Findings [ X were were not] made pursuant to the provisions of CEQA. This document is being filed in duplicate. Please acknowledge the filing date and return acknowledged copy 4n the enclosed, stamped, self -addressed -envelope. Signature public Agency) Date received for filing: CALIFORNIA DEPARTMENT nF FI H ANn GAME CERTIFICATE OF FEE EYEMPTION De Mi ni mus Impact Finding Project Title/Location Name and Address of Project Proponent (include county) : 1991 Housing Element of the General Plan of the City of Rolling Hills, City of Rolling Hills, Rolling Hills, CA, County of Los Angeles Project Description: 1991 Revised Housing Element of the General Plan of the City of Rolling Hills Findings of Exemption (attach required findings): The City Council finds that there is no evidence that the 1991 Housing Element of the General Plan of the City of Rolling Hills will have an effect on endangered or threatened species of plants and animals. The City Council finds that the 1991 Housing Element of the General Plan of the City of Rolling Hills will not have an effect on wetlands and that water courses will not be eliminated or converted. Certification: I hereby certify that the lead • acencv has ^.jade the above. findings of fact and that based upon_ the initial_ study and he=_r_ng record the project will not individually or c:..-..._'_ative? adverse effect on wildlife resources, as defined in Section 711.2 of the Fish and n=.,,e Code. LOLA UNGAR (Chief Planning Official) Title: Principal Planner Lead Acen_cy:C_ty of P.^'_1_n^ Hills Date January 2,.1992 • it A RESOLUTION NO. 9--Z A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS RECOMMENDING CITY COUNCIL APPROVAL. OF THE 1991 HOUSING ELEMENT OF THE GENERAL PLAN OF THE CITY OF ROLLING HILLS AND ADOPTTON OF AN ASSOCIATED NEGATIVE DECLARATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: SECTION 1. Pursuant to the requirements of Government Code Section 65588(a), the Planning Commission of the City of Rolling Hills hasreviewed the Housing Element of the General Plan of the City and has determined that it is appropriate to revise that Element to reflect the results of this review. SECTION 2. The City prepared a draft revised Housing Element and submitted it to the state Department of Housing and Community Development ("HCD") for review on October 30, 1989 pursuant to Government Code Section 65585(b). HCD commented on the draft in the form of a letter dated December 12, 1989. The City has reviewed those comments and revised the draft in response to those comments. SECTION 3. Pursuant to Government Code Section 65352, copies of the revised draft have been provided to the Cities of Rancho Palos Verdes and Rolling Hills Estates, the County of Los Angeles, and the Los Angeles County Local Agency Formation Commission. SECTION 4. Pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et seq. ("CEQA"), the State CEQA Guidelines, California Code of Regulations, Title 14, Sections 15000 et seq., and the City's Local CEQA Guidelines, the City prepared an initial study and determined that there was no substantial evidence that the adoption of the revised Housing Element may have a significant effect on the environment. Accordingly, a negative declaration was prepared and notice of that fact was given in the manner required by law. SECTION 5. A duly noticed public hearing before this Planning Commission to consider the proposed negative declaration and the revised Housing Element was held on November 19, 1991 at which time public comments on the negative declaration and revised Housing Element were received by the Commission. SECTION 6. Based upon the facts contained in this resolution, those contained in the staff reports and other a643.mgc 1 components of the legislative record, those contained in the proposed negative declaration and revised Housing Element, and the public comments received by the Commission, the Planning Commission hereby finds as follows: (a) The Planning Commission has considered the proposed negative declaration, the public comments upon it, and the other evidence before the Commission and finds that there is no substantial evidence that the adoption of the revised Housing Element will have a significant effect on the environment. (b) City staff and the Planning Commission have reviewed the Housing Element Guidelines adopted by HCD pursuant to Section 50459 of the Health and Safety Code and the findings contained in HCD's comment letter of December 12, 1989 and the draft Housing Element has been changed to respond to those findings. (c) The revised Housing Element is in full compliance with the requirements of Government Code Sections 65580 — 65589.8. (d) The revised Housing Element is consistent with the other elements of the General Plan because the revised Housing Element uses the land use designations of the Land Use Element and those designations in turn are reflective of, and consistent with, the policies and provisions of the remaining elements of the General Plan. (e) The housing goals, objectives, and policies stated in the revised Housing Element are appropriate for the City of Rolling Hills and will contribute to the attainment of the state housing goal. (f) The adoption of the revised Housing Element will aid the City's efforts to assist in the development of housing for all members of the community. (g) For the foregoing reasons, the adoption of the revised Housing Element is in the public interest. SECTION 7. The Planning Commission of the City of Rolling Hills hereby recommends to the City Council of the City of Rolling Hilts that the proposed negative declaration be .adopted and that the revised draft Housing Element be approved as the 1991 Housing Element of the General Plan of the City of Rolling Hilts. This resolution shall be transmitted to the City Council 643 .mgc and shall constitute the_written recommendation required by Section 65354 of the Government Code. PASSED, APPROVED AND ADOPTED this day of 1991. Chairperson ATTEST: Secretary 8643. Mg • r Ci4ojA/ Jh//J INCORPORATED JANUARY 24, 1957 NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CALIF. 90274 (213) 377-1521 FAX: (213) 377-7288 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Rolling Hills will hold a Public Hearing on Monday, December 23, 1991, in the Council Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hills, California commencing at 7:30 p.m. to consider the following: DRAFT AMENDMENT TO THE HOUSING ELEMENT OF THE CITY OF ROLLING HILLS GENERAL PLAN Following review of the Initial Study for the project, Staff has determined that this project will not have a significant effect on the environment. Accordingly, a Negative Declaration has been prepared. Any person is welcome to review the subject document, prior to the public hearing at City Hall, 2 Portuguese Bend Road, Rolling Hills, between the hours of 8:00 a.m. to 12:00 noon, and 1:00 p.m. to 4:30 p.m. (closed 12:00 noon to 1:00 p.m.) Monday through Friday. If you challenge the approval or denial of this document in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Publish once in the Palos Verdes Peninsula News and the Rolling Hills Herald Saturday November 9, 1991 G R. NEALIS, CITY CLERK DATE: City o/ /2 Pfn9 Jh/h INCORPORATED JANUARY 24, 1957 TELECOPY COVER SHEET TIME SENT: TO: ?\I — FROM: 1•\`l. NO. 2 PORTUGUESE BEND ROAD ROLLING WILLS, CALIF. 90274 (213) 377.1521 TELEPHONE: OPERATOR: OUR FILE NO. YOUR FILE NO. SUBJECT: 0-D NG (.; Vt1C- fL e_fo.) PSI NV DOCUMENT TELECOPIED: REMARKS: TOTAL PAGES (including cover sheet) : a The City of Rolling Hillsuses a Savinfax Model 300 telecopier as its primary telecopier. It is compatible with Group 1, 2 and 3 telecopy machines. If you have difficulty receiving any pages, please telephone our switchboard, at (213) 377-1521. REPLY TO: City of Rolling Hills - Telecopier No. (213) 377-7288 CITY OF ROLLING HILLS PROOF OF SERVICE BY MAIL AND POSTING STATE OF CALIFORNIA SS COUNTY OF LOS ANGELES I am a citizen of the United States. I. am over the age of eighteen year and not a party to the within proceeding; my business address is 2 Portuguese Bend Road, Rolling Hills, California. On the I served the within a copy of which is annexed&'hereto and made a part hereof, on the person, or persons, named below by placing a true copy thereof day of _\ akl w , 191 - `e�vSi:JCr �t�NEN enclosed in a sealed envelop with postage thereon fully prepaid, in the United States mail at Rolling Hills, California addressed as follows: FAXED MAILED DELIVERED Palos Verdes Peninsula News City Attorney City Manager Council Also posted in one public place I certify (or declare) under penalty of perjury, that the foregoing is true and correct. Executed on the } -c-st Hills, California. day of 1991 at Rolling DIANE SAWYER DEPUTY CITY CLERK F -9 T( DRAFT HOUSING ELEMENT City of Rolling Hills tbd Cotton/Beland/Associates, Inc. CITY OF ROLLING HILLS DRAFT HOUSING ELEMENT October 23, 1991 Cotton/Beland/Associates, Inc. 747 East Green Street, Suite 400 Pasadena, California 91101 #584.02 HOUSING ELEMENT TABLE OF CONTENTS Introduction 1 State Policy,. Authorization and Mandate 2 Purpose of Element 3 Relationship to Other Elements 3 Relationship to Private Land Use Restrictions 6 Housing Needs Assessment 7 Demographic Trends 7 Household Characteristics 8 Housing Unit Characteristics 15 Housing Constraints 26 Market Constraints 26 Governmental Constraints 28 Environmental and Infrastructure Constraints 34 Housing Opportunities 36 Residential Land Inventory 36 Residential Development Potential Compared With Future Housing Growth Needs 38 Summary of Housing Issues and Opportunities . 39 Housing Plan Evaluation of Accomplishments Under Existing Housing Element Goals and Policies Implementing Programs Appendices A - Federal and State Housing Programs and Their Applicability in Rolling Hills Rolling Hills Second Unit Ordinance 40 40 44 46 HOUSING ELEMENT LIST OF TABLES Table Pagc H-1 State Housing Element Requirements 4 H-2 Age Characteristics of Population: 1980, 1989 9 H-3 Race and Ethnicity: 1980, 1989 10 H-4 Homeless Social Service Providers 16 H-5 Housing Trends: Rolling Hills and Surrounding Areas, 1980-1989 17 H-6 Residential Recycling Activity 18 H-7 Age of Housing Stock: 1989 20 H-8 Single -Family Residential Sales 21 H-9 1989-1994 Household Needs by Income Group 23 H-10 Summary of Residential Development Fees 31 H-11 Time Requirements and Fees for Project Processing 33 H-12 Future Residential Development Potential 38 LIST OF FIGURES Figure H-1 Site Inventory for Residential Development Pagc 37 rr HOUSING ELEMENT INTRODUCTION The City of Rolling Hills is an entirely residential community of rural character with large lot parcels of one acre or more. The City encompasses 2.98 square miles of land on the Palos Verdes Peninsula. The land use pattern was established with the original subdivision and sale of parcels, which began. in 1936. From its inception, the emphasis in Rolling Hills has been to create and maintain a distinctive rural residential character which preserves the sense of openness created by the area's hilly topography. The City's minimum lot size requirements are reflective of the community's desire to maintain its rural setting, recognition of the limitations presented by the varied topography and the lack of urban infrastructure. The City was established as a community of single-family homes on large parcels and has continued as such for more than 50 years. Today it is essentially a built -out community. All of the developable property in the Ci yyis subject -to enforceable covenants, conditions, and restrictions (CC&Rs) which run with the property in perpetuity and greatly restrict development within the City. These restrictions have been in existence since 1936. A large, geologically unstable open area exists in the City. It once contained numerous homes, but many of these suffered irreparable damage in a major slippage in the 1980s. Soils and geologic conditions place great constraints on development within the City. The City has experienced majorlandslides due to soil saturation and instability. Since only a few homes on the periphery of the City are served by a sewer system, most new homes must also utilize septic tanks and leach fields for disposal of sanitary waste. Past experience suggests substantial care and restraint must be exercised in the expansion of any existing systems or the addition of. new systems to avoid possible ground instability due to saturation of the upper soil layers. This situation and existing infrastructure constraints act to limit densities in the City. The City has acted to restrict development in areas of past landslides and other areas which studies indicate to be potentially unsafe. HOUSING ELEMENT OCTOBER 23, 1991 While the Land Use Element is concerned with housing in a spatial and density context, the Housing Element identifies housing programs aimed at housing conservation, new construction, and programs to address housing issues for special needs groups. This Housing Element builds upon land use goals and policies which are concerned with where new housing will be located and at what density it will be constructed. The Element establishes policies that will guide City officials in daily decision making and sets forth an action program designed to enable the City to realize its housing goals. The Rolling Hills Housing Element is an official municipal response to legal requirements that housing policy be made part of the planning process and has been prepared in accord with State laws which govern the preparation of housing elements. The Regional Housing Needs Assessment (RHNA), prepared by SCAG documents Rolling Hills as having an existing affordable housing need forlower income households of zero. Rolling Hills' future new construction need is for 40 dwelling units over the 1989-1994 time period, specified by the RHNA. The City's Land Use Plan provides for the development of 59 additional dwelling units, thereby providing a development capacity which is more than adequate to accommodate the City's share of regional housing needs. State Policy, Authorization and Mandate The California State Legislature has identified the attainment of a decent home and a suitable living environment for every Californian as the State's major housing goal. Recognizing that local planning programs play a significant role in the pursuit of this goal, and to assure that local planning effectively implements statewide housing policy, the Legislature added Article 10.6 to the. Government Code in 1980 and incorporated into law the Housing Element Guidelines promulgated by the California Department of Housing and Community Development (HCD). The original Housing Element Guidelines were adopted on June 17, 1971, and revised guidelines were adopted on November 17, 1977. The Government Code specifies the intent of the Legislature to insure that counties and cities actively participate in attaining the state housing goal, and sets forth specific components to be contained n a housing element. These include the identification and analysis of existing and projected housing needs, resources and constraints;_ a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement and development of housing; identification of adequate sites for HOUSING ELEMENT 2 OCTOBER 23, 1991 housing; and adequate provision for the existing and projected needs of all economic segments of the community. State law requires Housing Elements to be updated at least every five years. The City has prepared the following updated Housing Element in compliance with the July 1, 1989 deadline for jurisdictions within the SCAG region. Purpose of Element The purpose of the Housing Element is to, identify the City's existing and projected housing needs, and to establish policies which City officials will use in daily decision making in addressing these needs. The goals of providing decent, safe, ; sanitary and affordable housing to present and future residents of the City is a primary focus of the Element. The Element also directs emphasis at specific target groups requiring attention in the City, specifically the elderly. The Housing Element serves as a flexible policy guideline to defined problems which may arise in meeting housing needs. Relationship to Other Elements As. stated in the Land Use Element, a major purpose of the updated General Plan is to achieve internal consistency among all elements. Together these elements will provide the framework for development of those facilities, services, and land uses necessary to address the needs and desires of City residents. By undertaking a comprehensive update to the City's General Plan, background information and policy direction presented in one element is also reflected within other Plan elements. For example, residential development capacities established in the Land Use Element and constraints to housing development identified in the Safety Element are incorporated within the Housing Element. The Housing Element is thus inter -related with the other General Plan elements, and is entirely consistent with the policies and proposals set forth by the Plan. HOUSING ELEMENT 3 OCTOBER 23, 1991 TABLE H-1 STATE HOUSING ELEMENT REQUIREMENTS REQUIRED HOUSING ELEMENT COMPONENT REFERENCE A. Housing Needs Assessment 1. Analysis of population trends in Rolling Hills in relation Household Needs Assessment - to regional trends Demographic Trends 2. Projection and quantification of Rolling Hills' existing Housing Needs Assessment - and projected housing needs for all income groups Household Characteristics 3. Analysis and documentation of Rolling Hills' housing characteristics including the following: a. level of housing cost compared to ability to pay, Housing Needs Assessment - Household Characteristics b. overcrowding; Housing Needs Assessment - Household Characteristics c. housing stock condition. Housing Needs Assessment - Housing Unit Characteristics 4. An inventory of land suitable for residential development Housing Opportunities - including vacant sites and sites having redevelopment potential and an analysis of the relationship of zoning, public facilities and services to these sites Residential Land Inventory 5. Analysis of existing and potential government Housing Constraints - constraints upon the maintenance, improvement, or development of housing for all income levels Governmental Constraints 6. Analysis of existing and potential nongovernmental and Housing Constraints- Market market. constraints upon maintenance, improvement, or. Constraints, Environmental development of housing for all income levels and Infrastructure Constraints 7. Analysis of special housing needs: handicapped, elderly, large families, female -headed households, and homeless Housing Needs Assessment - Household Characteristics 8. Analysis of opportunities for energy conservation with Housing Needs Assessment - respect to residential development Housing Unit Characteristics 4 HOUSING ELEMENT OCTOBER 23, 1991 TABLE H-1 (continued) REQUIRED HOUSING ELEMENT COMPONENT REFERENCE B. Goals and Policies 1. Identification of Rolling Hills' community goals relative Housing Plan - to maintenance, improvement and development of housing Goals and Policies 2. Quantified objectives and policies relative to the Housing Plan - maintenance, improvement, and development of housing in Rolling Hills Goals and Policies C. Implementation Program An implementation program should do the following: 1. Identify adequate sites which will be made available Housing Plan - through appropriate action with required public services and facilities for a variety of housing types for all income levels Implementing Programs 2. Program to assist in the development of adequate Housing Plan - housing to meet the needs of low- and moderate -income households Implementing Programs 3. Identify and, when appropriate and possible, remove Housing Plan - governmental constraints to the maintenance, _ improvement, and development of housing in Rolling Implementing Programs Hills 4. Conserve and improve the condition of the existing Housing Plan - affordable housing stock in Rolling Hills Implementing Programs 5. Promote housing opportunities for all persons Housing Plan - regardless of race, religion, sex, marital status, ancestry, national origin or color Implementing Programs 5 HOUSING ELEMENT OCTOBER 23, 1991 r, Relationship to Private Land Use Restrictions CC&Rs (covenants, conditions and restrictions) represent private contractual obligations between homeowners and are usually established at the time a subdivision or community is built. Development in Rolling Hills is severely limited by CC&Rs that apply to almost all of the property in the City. In some instances the City zoning ordinance is less restrictive than the CC&Rs in Rolling Hills. The City enforces the provisions of the zoning ordinance. However, the provisions of . the CC&Rs are rigorously enforced by the Roliling Hills Community Association. HOUSING ELEMENT 6 OCTOBER 23, 1991. HOUSING NEEDS ASSESSMENT Demographic Trends Population Growth As of January 1, 1989, the City of Rolling Hills had a resident population of 2,092 persons, making it the sixth smallest city in Los Angeles County. With a 1970 population of 2,050 and a 1980 population of 2,049, Rolling Hills experienced only a two percent net population increase over the past two decades. Some population loss did, however, occur as a result of the six homes which were severely damaged and four which were destroyed in the Flying Triangle Landslide. Limited growth in the City's population is indicative of the fact that the majority of Rolling Hills' residential lots are built out, with a diminishing supply of parcels available for development. Opportunities for new residents to move into Rolling Hills have occurred through new housing construction, redevelopment of the City's original housing stock, and changes in ownership. This residential turnover can be evidenced in the changing demographics and household characteristics of the City's population. Age Composition The age distribution of Rolling Hilts residents in 1980 as reported in the Census and in 1989 as estimated by Urban Decision Systems is illustrated in Table H-2. The median age in Rolling Hills was 38.2 in 1980, as compared to 30.9 in the County, 29.9 in California, and 30.0 in the United States. This higher median age in Rolling Hills is reflective of the City's large middle -age and elderly population, and potentially its higher priced housing stock deterring first time homebuyers and young families with children. Estimates of the City's age distribution for 1989 depict a continued trend toward an aging population, with the median age increasing to 39.7 years, and nearly 40 percent of the population over 45 years of age. Employment The 1984 Industrial -Commercial Employment project reported a total of 230 jobs in the City. Most of the employees in the City were reported to be in the services industry, jobs primarily related to domestic and landscape services. The jobs/housing relationship in the City is obviously tiltedtowards housing, since most residents HOUSING ELEMENT 7 OCTOBER 23, 1991 work in professional and business related activities located outside the City. No significant change in the number of jobs in Rolling Hills is expected since no new source of employment is expected in the future. Ethnicity The ethnic make-up of Rolling Hills residents is presented in Table H-3. As this table reveals, the majority of the City's residents in 1980 were White (93%). The proportion of Whites had decreased to an estimated 87.9 percent in 1989, reflecting , the influx of other ethnic groups. The second largest ethnic group in the City is persons of Spanish/Hispanic origin, representing an estimated 12 percent of the City's 1989. population; this reflects a significant increase from 1980 when Spanish/Hispanics represented 4.5 percent of the population. It should be mentioned, however, that persons of Spanish/Hispanic origin are now a self -designated category separate from race (see note in Table H-3) Rolling Hills has also experienced an influx of residents of the Asian/Pacific Islander race. This group constitutes an estimated 8.6 percent of the City's 1989 population, as compared with 5 percent in 1980. Blacks, American Indians, and "Other" ethnic groups are the least represented, in total comprising an estimated 3.5 percent of the population. Household Characteristics The characteristics of the population provide an essential component toward the understanding of growth and change in a community. In addition,_ information collected on the household level provides a good base for the analysis of a community's housing needs. The Census defines a household as all persons who occupy a housing unit, which may include single persons living alone, families related through marriage or blood, and unrelated individuals living together. Persons living in retirement or convalescent homes, dormitories, or other group living situations are not considered households. Household Composition and Size In 1980, there were 629 households in Rolling Hills. According to the Department of Finance, the City had grown to 647 households in 1989, representing a 2.7 percent increase during the nine year period. While the net increase in households has been nominal, actual residential turnover has been more substantial based on recent trends in residential recycling. An August 1988 report HOUSING ELEMENT 8 OCTOBER 23, 1991 TABLE H-2 CITY OF ROLLING HILLS AGE CHARACTERISTICS OF POPULATION: 1980. 1989 1980 (a) 1989 (b) Age # of % of # of % of Range Persons Population Persons Population 0-5 100 4.9 117 5.6 6-13 293 14.3 247 11.8 14-17 221 10.8 163 7.8 18-20 95 4.6 69 3.3 21-24 85 4.1 107 5.1 25-34 122 6.0 144 6.9 35-44 335 16.3 424 20.3 45-54 383 18.7 398 19.0 55-64 268 13.1 249 11.9 65 + 147 7.2 174 8.3 TOTAL 2,049 _ 100.0 2,092 100.0 FEMALE 1,044 50.9 1,060 50.7 MALE 1,005 49.1 - 1,032 49.3 Median Age 38.2 39.7 Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report. (b) Urban Decision Systems, Demographic Trends: 1980-89-94. HOUSING ELEMENT 9 OCTOBER 3, 1991 TABLE H-3 CITY OF ROLLING HILLS RACE AND ETHNICITY: 1980. 1989 1980 (a) 1989 (b) Race and Ethnicity # of Persons 010 of Population # of Persons % of Population White Black American Indian Asian/Pacific Islander Other 1,906 27 6 102 8 93.0 1.3 .3 5.0 .4 1,838 46 11 180 17 87.9 2.2 .5 8.6 .8_ TOTAL 2,049 100.0 2,092 100.0 Spanish/Hispanic 92 4.5 251 12.0 Source: (a) State of California, Dept. of Finance, Controlled Population Estimates for 1-1-89. (b) Urban Decision Systems, Demographic Trends: 1980-89-94. Note: In the 1980 Census, a large percentage of Spanish origin persons classified themselves as Other rather than White, Black, Asian, or American Indian. To bring this data in line with current Bureau of the Census practice, Spanish/Hispanic respondents have been redistributed among the other racial categories based on their overall proportion in the area being analyzed, as well as being separated out as "Spanish/Hispanic." Therefore, the population identified in the Spanish/Hispanic category is not counted in the total. 10 HOUSING ELEMENT OCTOBER 3, 1991 prepared for the City by The Keith Companies entitled "Residential Trends Analysis" documents 18 residential tear downs/rebuilds and an additional 23 major remodeling projects between 1985 and 1988. The 1989 Community Attitude Survey confirms an extensive level of remodeling activity in Rolling Hills, with approximately 15 percent of households responding indicating their residence had undergone remodeling since 1985. Families represent the City's predominant household type, comprising approximately 90 percent of all households. In contrast, families represent 72 percent of all households County -wide. This high concentration of family households in Rolling Hills is reflective of the City's land use pattern of large, single-family homes and lack of multi -family rental properties. Correspondingly, average household size is also significantly larger in Rolling Hills (3.2 persons per unit) than that evidenced County -wide (2.8 persons per unit). Overcrowding The Census defines overcrowded households as units with greater than 1.01 persons per room, excluding bathrooms, kitchens, hallways and porches. Overcrowding reflects the inability of households to buy or rent housing which provides reasonable privacy for their residents. According to the 1980 Census, the incidence of overcrowding in Rolling Hills was minimal, with less than one percent of all households defined as overcrowded, compared to over 11 percent County -wide. Income Rolling Hills is a wealthy community with an estimated average 1989 household income of $193,438 and an estimated median household income of S82,400 (Source: Urban Decision Systems). SCAG estimated that in 1988 Rolling Hills had 46 lower income households defined as households which earn less than 80 percent of the County median income. Because no household is reported to pay over 30 percent of its income on housing (see Housing Affordability) and housing costs in the City are relatively very high, this group is probably comprised of persons with high wealth reserves and/or with high home equity reserves. This statistic may also reflect live-in help employed by resident households. 11 HOUSING ELEMENT OCTOBER 23, 1991 Housing Affordability State and Federal standards for housing overpayment are based on an income -to -housing cost ratio of 30 percent and above. Households paying greater than this amount have less income left over for another necessities such as food, clothing, utilities and health care. Upper Income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groups. The Regional Housing Needs Assessment .(RHNA) prepared by SCAG identifies housing overpayment for the City's lower income households based on data from the 1980 Census. Lower income households are defined as households whose total gross income is less than 80 percent of the County median. According to the - RHNA, 46 of Rolling Hills' 646 households in 1988 were classified as lower income. However, none of these lower income households were identified as "overpaying" for housing. This is likely due to the fact that the City's lower income households are predominately retired households on fixed incomes whose homes have already been paid off. Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances. These "special needs" households include the elderly, handicapped persons, large families, female -headed households, farmworkers, and the homeless. Elderly: The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and dependence needs. An estimated 174 elderly persons (65 years and older) resided in Rolling Hills in 1989, representing 83 percent of the population. The proportion of elderly can be expected ` to increase as those persons between theages of 45 and 64 (31% of Rolling Hills' population) grow older. The housing needs of the City's elderly can be addressed through shared living arrangements, equity conversion programs and congregate housing. Elderly persons in Rolling Hills appear not to require financial assistance to obtain adequate housing. Home equity, accumulated wealth, and passive income can be assumed to be available to 12 HOUSING ELEMENT OCTOBER 23, 1991 elderly persons in the City. The programs discussed in the final section of the Element allow seniors to convert wealth to usable income if required to assure adequate housing and care. Handicapped: Physical handicaps can hinder access to housing units of traditional design as well as potentially limit the ability to earn adequate income. The 1980 Census contains data on persons who have physical disabilities that are work and/or public transportation related. According to the Census, there were 53 persons in Rolling Hills with a work disability, which was defined as a physical condition that impeded a person's ability to work. Another 18 persons had a public transportation disability, defined as a physical condition that presented difficulty in the use of public transportation. In aggregate, an estimated 3.5 percent of the City's residents were physically handicapped in 1980, translating to an estimated 73 handicapped residents in 1989. Some of these persons, however, may have handicaps which do not entail special housing needs. For example, the Census includes in its definition of "disabled" persons those with emphysema and emotional disorders, althoughneither of these disabilities affect housing needs. The Community Attitude Survey identified 1.9 percent of the City's households as having one or more members confined to a wheelchair. Income and wealth characteristics of Rolling Hills residents indicate that handicapped persons in Rolling Hills can afford to modify their housing to accommodate special needs. Handicapped elderly persons can also obtain assistance through senior services programs, including the congregate care, shared housing and equity conversion programs adopted as part of this element. Large -Families: Large families are identified as a group with special housing needs based on the limited availability of adequately sized, affordable housing units. An estimated 20 percent of the City's households have five or more members, translating to 129 households. This high incidence of large households is reflective of the City's large unit sizes (the median- sized house in 1980 had eight rooms), many of which include separate quarters for domestic help. While the City's large units are by no means affordable to lower income households, it is doubtful that the City has any large households which are lower income. Female -Headed -Households: Female -headed households are more likely to need housing assistance due to an average pay scale for women substantially below that for men. In 1980, 3.5 percent of 13 HOUSING ELEMENT OCTOBER 23, 1991 Rolling Hills' households were headed by a woman, translating to an estimated 23 households in. 1989. Approximately half of these female households in Rolling Hills have dependent children. Female -headed households in Rolling Hills are likely to be divorced women with children, or widows; Housing Element programs for large families and the elderly will address the needs of these groups. The 1980 Census indicates that only two female - headed households had incomes whichfell below the poverty level, although actual household income may be under -reported due to failure to report all childcare and alimony payments. The residents of Rolling Hills are likely to have other resources, such as wealth reserves with which to pay for housing and other necessities. Farmworkers: The special housing needs of many farmworkers stem from their low wages and the insecure nature of their employment. Only 12 Rolling Hills' residents were employed in the "farming, forestry and fishing" occupations in 1980. The demand for housing generated by farmworkers in the City is thus estimated to be extremely low if not non-existent. Homeless: Throughout the country, homelessness has become an increasing problem. Factors contributing to the rise in homelessness include the general lack of affordable housing for low and moderate income persons, increases in the number of persons whose incomes fall below the poverty level, reductions in public subsidy to the poor, and the de -institutionalization of the mentally At present, the County of Los Angeles does not have specific data on the number of homeless people surviving on a daily basis in the metropolitan area. The number is believed to be between 35,000 and 50,000, leaving Los Angeles with the worst homeless problem in the United States. Within the City of Rolling Hills, the homeless problem is non-existent. None of the South Bay area social service agencies or the Lomita Station of the Los Angeles County Sheriffs office have any evidence that homeless persons exist within Rolling Hills. Part of the reason for this is that no commercial or social services exist in the City to attract homeless individuals or families. Additionally, Rolling Hills' gated entries, wildlife and rugged terrain provide an inhospitable environment for homeless. Income and wealth characteristics of Rolling Hills residents indicate .that residents have financial and other resources to draw on in the event of emergencies that could otherwise precipitate a housing crisis. While. the City of Rolling Hills currently does not have a homeless population, the City will coordinate with and direct the 14 HOUSING ELEMENT OCTOBER 23;1991 homeless to local social service providers if the need arises in the future. As identified in Table H-4, homeless social service providers that exist nearest to Rolling Hills are in Wilmington and San Pedro. The Beacon Light Mission in Wilmington currently has 26 beds and is in the process of expanding to 40. The Mission is open to adults but will also accept families. While no one has been turned away from the dining tables in over a year, the beds are usually full. The Mission finds that the majority of its clients are people searching for work in the harbor area. Beacon Light Mission has served the homeless population since 1946. St. Joseph's Table associated with the Catholic Mission serves the Wilmington area. St. Joseph's Table provides no overnight shelter but provides food service to 130-150 people per day. Also serving the Wilmington/San Pedro area is Rainbow Shelter, a facility for battered women and children. Rainbow Shelter provides shelter for up to 20 women and children and can refer potential clients to other similar services in Long Beach, West Covina, Carson and Hermosa Beach. Some area churches volunteer assistance to the local services and occasionally provide assistance to their members. Housing Unit Characteristics Housing Growth As a nearly built -out community, residential growth has begun to slow in Rolling Hills as the supply of buildable land becomes exhausted and various constraints prohibit redevelopment of existing lots at higher densities. In 1980, the City's housing inventory included 653 housing units. Nine years later, this inventory had increased by only 30 units, for a total 1989 housing stock of 683 dwelling units. Comparing the residential growth rate in Rolling Hills with nearby jurisdictions (see Table H=5), the City's 4.5 percent increase in housing units during the 1980-1989 period was comparable to the cities of Lomita and Palos Verdes Estates. However, both Los Angeles City and the County as a whole experienced a significantly higher rate of growth than Rolling Hills, indicating that the level of growth occurring in Rolling Hills is substantially below that occurring in the region. 15 HOUSING ELEMENT OCTOBER 23, 1991 TABLE 11-4 HOMELESS SOCIAL SERVI AGENCY/PROVIDER LOCATION • SOCIAL SERVICE SERVICE CAPACITY Beacon Light Mission St. Joseph's Table/Catholic Mission Rainbow Shelter 525 Broad Avenue Wilmington, Ca Wilmington area San Pedro Provides shelter and meals to men, women and families. Provides meals to men, women and families. Provides shelter for battered women and children. Offers referrals to other social service atencies when full. 26 beds, increasing to 40 150 bed capacity 20 bed capacity ource: Cotton/Belan HOUSING ELEMENT 16 OCTOBER 23, 1991 TABLE H-5 HOUSING TRENDS: ROLLING HILLS AND SURROUNDING AREAS 1980-1989 Number of Housing Units Jurisdiction Percent 1980 1989 Increase Lomita 8,137 8,501 4.5% Los Angeles City 1,190,901 1,283,889 7.8% Palos Verdes Estates 4,880 5,095. 4.4% Rancho Palos Verdes 12,281 15,356 25.0% Rolling Hills 653 683 4.6% Rolling Hills Estates 2,613 2,730 0.5% Los Angeles County 2,855,555. 3,131,076 9.6% Source: Department of Finance Controlled Population Estimates for 4-1-80 and 1-1-89.. While the limited availability of land suitable for residential development has resulted in only nominal increases in the City's housing stock, additional residential development has been occurring through redevelopment of existing units. Much of the City's housing stock was built in the 1950s, and is typified by 3,000 to 4,000 square foot ranch style homes. As in many communities with a strong market for residential development and limited available land, Rolling Hills' older housing stock is being replaced with much larger, expansive units averaging 6,000 to 8,000 square feet in size. M presented in Table H-6, in the four year period between 1985-1988, a total of 18 units were demolished in the City and replaced with newly constructed units. In addition, 23 homes underwent substantial remodeling/additions. The Community Attitude Survey confirms an extensive level of remodeling activity in Rolling Hills with approximately 15 percent of households responding indicating their residence had undergone remodeling since 1985. This ' trend of residential recycling can be expected to continue and potentially increase as less vacant land is available for development. 17 HOUSING ELEMENT OCTOBER 23, 1991 TABLE H-6 CITY OF ROLLING HILLS RESIDENTIAL RECYCLING ACTIVITY 1985-1988 Number of Dwelling Units Zone RAS-1 Zone RAS-2 Total Tear Downs/Rebuilds . 11 7 18 Major Remodeling/Additions 15 8 23 TOTAL 26 15 41 Source: City of Rolling Hills Residential Trends Analysis, The Kei Companies, August 1988. Housing Type and Tenure When Rolling Hills was originally laid out by A.E. Hanson in the 1930s, its 600 acres were divided into one and two -plus acre homesites. With incorporation of the area in 1957, the City confirmed its commitment to maintaining the area's rural character through adoption of the following two residential zone districts: RA -S-1 (Residential Agriculture -Suburban Zone, one acre minimum) and RA - S -2 (Residential Agriculture -Suburban Zone, two acre minimum). These zone districts have provided for the development of an entirely single-family residential community. The tenure distribution of a community's housing stock (owner versus renter) influences several aspects of a local housing market. Residential mobility is influenced by tenure, ownership housing evidencing a much lower turnover rate than rental housing. Housing overpayment, while faced by many households regardless of tenure, is far more prevalent among renters. Tenure preferences are primarily related to households income, composition, and age of. householder. As in any community with an exclusively single-family housing stock, the vast majority of Rolling Hills' households are owner -occupied. Approximately two percent of the City's households in 1980 were renters, with this proportion increasing to an estimated 3.9 .percent according to the 1989 Community Attitude Survey. This translates to 25 renter -occupied households in 1989. 18 HOUSING ELEMENT OCTOBER 23, 1991 There is no subsidized housing in Rolling Hills, as confirmed by discussions with City and County staff, and through review of "Inventory of Federally Subsidized Low -Income Rental Units at Risk of Conversion" (California Housing Partnership Corporation), and the "Use of Housing Revenue Bond Proceeds 1990" (California Debt Advisory Commission). As a result, there is no housing at risk of losing its subsidized status which must be considered for possible preservation in the Housing Element. Vacancy Rates An evaluation of local vacancy rates, and whether they are higher or lower than that necessary for normal. residential mobility and growth, provides insight into the availability and condition of the local housing market. For instance, if vacancy rates are so high that many units stand unoccupied for prolonged periods of time, normal upkeep may be deferred. Conversely, of vacancy rates are too low, pent-up housing demand will have an inflationary impact on housing costs. The Regional Housing Needs Assessment (RHNA) prepared by SCAG identifies an "ideal" mobility or vacancy rate of 2.04 percent for Rolling Hills housing stock; this low target vacancy is reflective of the City's single-family orientation. According to the RHNA, Rolling Hills' actual residential vacancy rate was 1.8 percent in 1987. This would indicate that while the City's housing market can be considered tight, vacancies are not significantly below that which is considered healthy by SCAG. Age and Condition of Housing Stock Often a good indicator of housing condition is the age of the a community's housing stock. As indicated in Table H-7, the majority of Rolling Hills' housing (74°7o) was constructed between 1940-1969. Housing development maintained a steady pace in the 1970's, with an additional 112 dwelling units, or 16 percent of the housing stock built during this decade. Due to a diminishing supply of available land, development in Rolling Hills has slowed significantly in the 1980's, with only 34 new units constructed on vacant land between 1980-1989. As illustrated in Table H-6, an additional 18 units were developed between 1985-1988 through the demolition of existing structures, with an additional 23 units which underwent major remodeling/additions. 19 HOUSING ELEMENT OCTOBER 23, 1991 TABLE H-7 CITY OF ROLLING HILLS AGE OF HOUSING STOCK: 1989 Year Built Units % of Total 1939 or earlier 34 5.0 1940-1949 96 14.1 1950-1959 275 40.3 1960-1969 132 19.3 1970-1974 53 7.8 1975-1978 39 5.7 1979 -March 1980 20 2.9 April 1980 -Jan. 1989 34 4.9 Totals V 683 100.0 Note: Unit totals do not reflect residential structures which have been demolished since the 1980 census. Source: U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; California Dept. of Finance, Controlled Population Estimates for 1-1-89. The accepted standard for major housing rehabilitation needs is after 30 years. With nearly 60 percent of Rolling Hills' housing stock over 30 years old, continued housing maintenance is essential. The fact that the large majority of the City's housing stock is owner -occupied, combined with the high quality of residential construction, has resulted in excellent upkeep of the City's units. A windshield survey conducted in the summer of 1989 confirms that, unlike in many other communities, the housing stock in Rolling Hills is in excellent condition. Approximately 94 percent of households responding to the resident survey indicated their residence was either in good condition, or needed only minor repairs (paint, windows repairs, etc.). Housing Costs For -Sale Housing: Like the three other communities (Palos. Verdes Estates, Rancho Palos Verdes, and Rolling Hills Estates) which comprise the Palos Verdes Peninsula, the 1980 census identifies the median home value in Rolling Hills in its highest value category of $200,000+; for comparison,the median sales price County -wide was $87,400. According to Coldwell Banker's 1988 Sales Report and Property Statistics Analysis for the Palos Verdes Peninsula, the average selling price for a single-family home in 1988 was $629,000, with prices ranging from a low of $245,000 to ahigh of $3,900,000. 20 HOUSING ELEMENT OCTOBER 23, 1991 These sales prices reflect the extremely high cost of land on the Peninsula, combined with strong consumer demand for the expansive luxury homes and coastal location offered. As a private residential community which has managed to maintain its rural ambiance amidst encroaching urbanization, single family sales prices in Rolling Hills are among the highest on the Peninsula. Table H-8 presents residential sales data for 1988 and the first quarter of 1989 for Rolling Hills. The average single- family sales price in 1988 was $1.1 million, and had increased to , nearly $1.4 million by the first quarter of 1989. Residential unit sizes were relatively modest considering the high sales prices, averaging 3,400 square feet in 1988 and 3,800 square feet in early 1989. Many of these smaller units will likely be either substantially remodeled, or completely redeveloped with larger homes. TABLE H-8 CITY OF ROLLING HILLS SINGLE FAMILY RESIDENTIAL SALES • Time Period Sales Volume Average Sq.Ft. Average Sales Price Price Range Average Days on Market Jan -Dec 1988 33 3,432 $ 1,100,666 S 620,000- 77 $1,800,000 Jan -March 1989 3 3,821 $1,383,333 $1,150,000- 35 $1,650,000 Source: The Nelson Report: Sales Report and Property Statistics Analysis for the Palos Verdes Peninsula, 1988 and Jan -March 1989, prepared by Coldwell Banker. Rental Housing: The vast majority of Rolling Hills' households are owner -occupied, reflective of the City's exclusively single-family housing stock which is derived from the covenants, conditions and restrictions. Approximately two percent of the City's 1980 households were renters, with this proportion increasing to an estimated three percent in 1989. Similar to housing values, the 1980 census identifies median contract rent in Rolling Hills in its highest value category of $500+; for comparison, median contract rent County -wide was $244. 21 HOUSING ELEMENT OCTOBER 23; 1991 Share of Region's Housing. Needs State law requires jurisdictions to provide for their share of regional housing needs. The Southern California Association of Governments (SCAG) has determined the 1989-1994 needs for the City of Rolling Hills, and has estimated the number of households which the City will be expected to accommodate during this period. Future housing needs reflect the number of new units needed in a jurisdiction based on households which are expected to reside within the jurisdiction (future demand), plus an adequate supply of vacant housing to assure mobility and new units to replace losses. These needs were forecast by the 1988 Regional Housing Needs Assessment (RHNA), which considered on a regional and local level: market demand for housing, employment opportunities, availability of suitable sites for public facilities, commuting patterns, type and tenure of housing need, and housing needs of farm workers. According to the model, housing to accommodate 40 households would need to be added to the City's June 30, 1989 total households by July 1994 to fulfill the City's share of regional housing needs. Based on the distribution of regional income, this total can be" further divided among HUD's four income groups to identify the types of households to be provided for as follows: 22 HOUSING ELEMEIk OCTOBER 23, 1991 TABLE H-9 CITY OF ROLLING HILLS 1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP Very Low (0-50% County median income 2 (5.0%) Low (50-80% County median income) 4 (10.0%) Moderate (80-120010 County median income) 3 (7.5%) Upper (over 120% County median income) 31 (17.5%) Total Households 40 Source: SCAG Regional Housing Needs Assessment, June 1988 Rolling Hills can accommodate 46 additional housing units, but unique constraints within the City may inhibit its ability to meet the needs of all income groups within the City boundaries. The City, however, shall attempt to accommodate the needs of all income groups through the actions described in the Housing Programs section of this Element. The Housing Element sets forth policies and programs to address the future housing needs identified by the RHNA. As identified in the Element's Five Year Action Plan, programs include linkage into the local senior citizen shared housing program and the contribution of CDBG funds towards the construction of congregate housing for seniors, with the goal of addressing the City's future need for nine very low, low and moderate income households. The remaining need for 31 upper income households is accommodated under the Land Use Plan, and will be provided for through market- rate construction. Energy Conservation As residential energy costs continue to rise, increasing utility costs reduce the affordability of housing. The City has many opportunities to directly affect energy use within its jurisdiction. In addition to required compliance with the Building Code and Title 24 of the California Administrative Code relating to energy conservation, the City sets forth goals and policies which encourage the conservation of non-renewable resources in concert with the use of alternative energy sources to increase energy self-sufficiency. In HOUSING ELEMENT OCTOBER 23, 1991 large part, energy savings and utility bill reductions can be realized through the following energy design standards: Glazing - Glazing on south facing exterior walls allows for winter sun rays to warm the structure. Avoidance of this technique on the west side of the unit prevents afternoon sun rays from overheating the unit. Landscaping - Strategically placed vegetation reduces the amount of direct sunlight on the windows. The incorporation of deciduous trees in the landscaping plans along . the southern area of units reduces summer sun rays, while allowing penetration of winter rays to warm the units. Building Design - The implementation of roof overhangs above southerly facing windows shield the structure from solar rays during the summer months. Cooling/Heating Systems - The use of attic ventilation systems reduces attic temperatures during summer months. Solar heating systems for swimming pool facilities saves on energy costs. Natural gas is conserved with the use of flow restrictors on all hot water faucets and shower heads. Weatherization Techniques - Weatherization techniques such as insulation, caulking, and weatherstripping can reduce energy use for air-conditioning up to 55% and for heating as much as 40%. Weatherization measures seal a dwelling unit to guard against heat gain in the summer and prevent heat loss in the winter. Efficient Use of Appliances - Each household contains . a different mixture of appliances. Regardless of the mix of appliances present, appliances can be used in ways which increase their energy efficiency. Unnecessary appliances can be eliminated, proper maintenance and use of the stove, oven, clothes dryer, clothes washer, dishwasher, and refrigerator can also reduce energy consumption. New appliance purchases of air-conditioning units and refrigerators can be made on the basis of efficiency ratings. The State prepares a list of air-conditioning and refrigerator models that detail the energy efficiency ratings of the product on the market. Efficient Use of Lighting - Costs of lighting a home can be reduced through purchase of light bulbs which produce the 24 HOUSING ELEMENT OCTOBER 23, 1991 APPENDIX A Federal and State Housing Programs and Their Applicability in Rolling Hills FEDERAL AND STATE HOUSING PROGRAMS AND THEIR APPLICABILITY IN ROLLING HILLS Commend FEDERAL PROGRAMS Section 8 Existing Section 8 Moderate Rehabilitation Section 8 New Construction Section 202 Section 106(b) - Seed Money Loans Community Development Block Grant (CDBG) Provides rent subsidies to low-income renters. This source cannot be used in Rolling Hills because rents on housing in the City far exceed maximum rent levels required for participation in the program. Provides for payment contracts on units needing substantial rehabilitation. This source is inapplicable in Rolling Hills because no housing in the City has been identified as in need of rehabilitation. Provides funding for the construction of housing affordable to lower -income persons. High land costs and legal and environmental constraints preclude the development of projects in Rolling Hilts that would be eligible for such funding. Provides funding for senior housing. High land costs and legal and environmental constraints make the development of projects that would be eligible for such funding infeasible in Rolling Hills. Provides interest free loans to non-profit housing sponsors for preconstruction costs. Currently used only in connection with Section 202 above. Provides funding for a wide range of community development activities. Rolling Hills maximizes its use of these funds by using them to help fund senior housing in areas where land is less expensive than in the City, thereby allowing more people to be helped through limited funds. A-1 FEDERAL AND STATE HOUSING PROGRAMS (continued) PAID STATE PROGRAMS SB 99 -Redevelopment. Construction Loans California Housing Finance Agency (CHFA) -Direct Lending California Housing Finance Agency (CHFA) Home Ownership and Home Improvement (HOHI) Program California Self -Help Housing Program Mobile Home Park Assistance Emergency Shelter Special User Housing Rehabilitation Comment: Authorizes issuance of bonds by redevelopment agencies. Rolling Hills does not have a - redevelopment agency, or any areas which could be defined as blighted Provides loans to housing sponsors for construction or rehabilitation of housing projects containing over five units. Program could be applied for by Rolling Hills developers but projects of the five unit minimum can not be built in the City because of legal and environmental constraints. Provides financing for rehabilitation and purchase of housing by low and moderate income persons for housing in areas that are in need of rehabilitation. Absence of housing in need of rehabilitation precludes use in Rolling Hills. Provides grants and loans to assist Iow and moderate income families build and rehabilitate their own homes. High land costs and home values make use of this program in Rolling Hills unlikely. Provides financial and technical assistance to mobile home park residents. No mobile homes exist in Rolling Hills. Provides grants for homeless shelters. No population in need of homeless shelter exists in Rolling Hills. Program targeted towards substandard housing. No substandard housing exists in Rolling Hills. A-2 FEDERAL AND STATE HOUSING PROGRAMS (continued) Program Comments Predevelopment Loans Senior Citizen Shared Housing Rental Housing Construction Deferred Payment Rehabilitation Loans Marks Foran Rehabilitation Loans AB 1151 -Density Bonuses AB 655 -Multi -Family Revenue Bonds Provides predcvelopment loans for low income housing projects. This source could be used by nonprofit developers in the City. However, high land costs, and environmental and legal constraints render infeasible the development of eligible projects in the City. Provides grants to assist seniors to find shared housing arrangements. Rolling Hills provides this service using local funds. Provides cash grants for the construction of housing developments containing at least five units with 30 percent of the units affordable to lower income households. Environmental and legal constraints on the development of multi -family housing in the City render this inapplicable. Provides loans for the rehabilitation of low and moderate income housing. Not applicable in Rolling Hills because of absence of targeted housing. Allows revenue bonds for housing rehabilitation. The City does not have housing in need of rehabilitation. Requires local governments to offer density bonuses or other incentives in exchange for the development of low income housing. The City has not adopted its own density bonus program but will follow state requirements on a case -by -case basis. Allows for participation in a County -wide bond program for low income multi -family housing. Legal and environmental constraints on multi -family housing in Rolling Hills would make it very difficult to build housing meeting the rent requirements of this program. A-3 most lumens per watt, avoidance of multi -bulb fixtures and use of long life bulbs and clock timers on security buildings. Load Management - The time of day when power is used can be as important as how much power is used. Power plants must have enough generating capacity to meet the highest level of consumer demand for electricity. Peak demands for electricity occur on summer afternoons. Therefore, reducing use of appliances during these peak load hours can reduce the need for new power plants just to meet unusually high power demands. HOUSING ELEMENT OCTOBER 23, 1991 I1OUSING CONSTRAINTS Actual or potential constraints on the provision and cost of housing affect the development of new housing and the maintenance of existing units for all income levels. Market, governmental, infrastructural, and environmental constraints to housing development in Rolling Hills are discussed in the following section. Market Constraints • The extremely high costof purchasing or renting housing is the primary constraint to providing adequate housing opportunities in Rolling Hills. High land costs, construction costs, labor costs, and market financing constraints all contribute to the increasing cost of housing in Rolling Hills. Land Land costs include the cost of raw land, site improvements, and all costs associated with obtaining government approvals. Like the entire Palos Verdes Peninsula, land costs are extremely high in Rolling Hills. A review of vacant parcels which sold in Rolling Hills during the 1987-1989 period reveals a price range of between $375,000 and $835,000 for parcels which could accommodate a single unit. In addition to raw land costs, site improvements contribute to the cost of land as most of the remaining vacant parcels in the City have severe topographic or geologic constraints, and would necessitate significant grading to accommodate development. Thus, land costs alone produce a situation where housing is not within the financial means of lower income households.. The extremely high land costs would make the construction of lower income housing in the City almost impossible without governmental assistance. Construction Costs A major cost associated with building a new house is the cost of building materials, which can comprise up to 50 percent of the sales price of a new home. In areas like Rolling Hills where land represents a larger proportion of overall housing costs, construction costs correspondingly comprise a lesser proportion of total housing costs. Overall construction costs rose over 30 percent between 1980 and 1988, with the rising cost of energy a significant contributor. 26 HOUSING ELEMENT OCTOBER 23, 1991 According to the Construction Industry Research Board, construction costs for wood frame, single-family construction of average to good quality range from S45 to $60 per square foot. Construction costs for custom homes and units with extra amenities of excellent construction quality range from $85 to $95 per foot. Based on the high level of amenity associated with new construction in Rolling Hills, construction costs usually exceed even this $85-$95 range. Labor Costs Labor is the third most expensive component in building a house, constituting an estimated 17 percent of the costs of constructing a single-family dwelling. The cost of union labor in the construction trades has increased steadily since April 1974. The cost of non- union labor, however, has not experienced such significant increases. Because of increased construction activity, the demand for skilled labor has increased so drastically that an increasing number of non-union employees are being hired in addition to unionized employees, thereby lessening labor costs. Financing While interest rates have fallen more than nine percent from their near 20 percent high in the early 1980s, they still have a substantial impact on housing costs which is felt by renters, purchasers and developers. An additional obstacle for the first time homebuyer is the downpayment required by lending institutions of between 10-20%. The average sales price of a single-family home in Rolling Hills in 1988 was $1.1 million. A $990,000 mortgage amortized over 30 years at an interest rate of 10.5% would result in monthly house payments of $9,055, well beyond the financial means of low and moderate income households: Contractual Constraints Virtually all of the land in Rolling Hills is subject to the Covenants, Conditions, and Restrictions (CC&Rs) established in 1936 by the Palos Verdes Corporation. These CC&Rs set forth two classifications of property and restrict the development and use of property within each classification to either only single family or single family and limited public use. Neither classification allows for the development of multi -family housing or for commercial, office or industrial activity. The CC&Rs establish minimum parcel and dwelling unit sizes, and require approval by the Rolling Hills 27 HOUSING ELEMENT OCTOBER 23, 1991 Community Association Architecture Committee of all new development. Governmental. Constraints Housing affordability is affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing in the City. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. Land Use Controls Land Use Controls are established by the City's Land Use Element, Zoning Ordinance, and Community Association Building Regulations. The Rolling Hills Land Use Element provides for two residential categories: Residential Estate one acre minimum (RA - S -1) and Residential Estate - two acre minimum (RA -S-2). Building coverage is limited to twenty percent of the net lot area, and building height is restricted to one-story,_ although subterranean— parking and split-level residences in effect allow greater height.' A h � `` minimum of two covered parking spaces are required for each r,M, „; .-;_ dwelling unit. This parking requirement can easily be met on the City's large residential. parcels. The .parking standard is appropriate given the high number of automobiles per household in Rolling Hilts, and the fact that the private streets are too narrow to permit on -street parking. The City has implemented in its Zoning Ordinance standards to allow the development of mobile homes in its residential zones. The City defines a "second unit" as a detached or attached dwelling unit which provides complete, independent living facilities for one or more persons including permanent provisions for living, sleeping, cooking, and sanitation, on the same parcel as the primary residential structure. As provided for under State law, the City of Rolling Hills has adopted an ordinance which prohibits second units on single-family lots; a copy of this ordinance is contained in the Appendix to the Housing Element. The ordinance makes the following findings which specify the adverse impacts on public health, safety and welfare which would result from allowing second units, and which justify their preclusion in Rolling Hills: Lack of Sewers - Development of second units could potentially double the amount of sewage effluent HOUSING ELEMENT OCTOBER 23, 1991 currently entering the soil, thereby exacerbating soil stability problems. Geologic Setting - Numerous active landslides in Rolling Hills greatly diminish development potential and call for caution in increasing densities. Rural Design and Community Roadway Character - The current capacity, design, and topographic constraints of the City roadways indicate increased residential densities would compromise traffic safety. Fire Flow Requirements - The introduction of second units in Rolling Hills would change the infrastructure requirements on water pressure in the City, and as the City has no funds to revamp the water system, fire fighting capabilities would be compromised due to reduction in water pressure. The existing zoning standards maintain the rural character of the area and respond to unique physical, health, and safety aspects of the City. Because Rolling Hills is limited to large lot residential land uses, opportunities for affordable housing are limited. However, the Land Use Plan provides a development capacity which is more than adequate to meet the City' future five-year share of regional housing needs, defined as 40 units by the RHNA. Development in Rolling Hills is controlled through both City enforced zoning and privately enforced CC&Rs. City zoning does not in itself constrain housing development. Reducing zoning standards or increasing densities would not modify the development limitations dictated by the CC&Rs, which control density. City zoning standards are considered to be appropriate given the topographic, geologic, and infrastructure constraints in the City. Fees and Improvements Various fees and assessments are charged by the City and other agencies to cover the costs of processing permits and providing services and facilities, such as utilities, schools, and infrastructure. Almost all of these fees are assessed through a pro rata share system, based on the magnitude of the residence's impact or on the extent of the benefit which will be derived. 29 HOUSING ELEMENT OCTOBER 23, 1991 The Rolling Hills jurisdiction is a private, suburban community, with the majority of its necessary infrastructure, such as streets, electrical and water facilities, already in place. As such, the cost of land improvements is less than in rural areas, but significantly higher than those found in urbanized jurisdictions. Table H-10 presents a list of development fees (September 1989) associated with the construction of a single-family residence in Rolling Hills. Fees have been set at a level necessary to meet the City's costs and high level of amenity. Permit and plan review fees charged in the City are based on the actual costs incurred by the City. Review and permit processing in Rolling Hills .may be more time consuming than in other communities because of the concern with geologic and structural stability, the customized character of Rolling Hills homes, and individual permit processing for each residential unit. To reduce development fees below the costs actually incurred by the City would represent a subsidy, which is not within the financial means of the City. However, if an affordable housing development is proposed in the City and the City's permitting and review fees present an obstacle to that development, the City will consider waiving. those fees as a means of facilitating such development. Building Codes and Enforcement The Los Angeles County Building Code governs standards for construction in Rolling Hills. These codes are considered to be the minimum necessary to protect the public health, safety and welfare. However, as the remaining vacant land in Rolling Hills is characterized by steep topography and in some cases geologic instability, the necessary enforcement of building codes to address these constraints can significantly add to the cost of housing. Local Processing and Permit Procedures The evaluation and review process required by City procedures contributes to the cost of housing in that holding costs incurred by developers are ultimately manifested in the unit's selling price. The review process in Rolling Hills is governed by two levels of decision -making bodies: the City Council and Planning Commission. 30 HOUSING ELEMENT OCTOBER 23, 1991 TABLE H-10 CITY OF ROLLING HILLS SUMMARY OF RESIDENTIAL DEVELOPMENT FEES (November 1989) Type of Fee Cost Building Permit 2-1/2 times the amount set in the County Building Code. Plan Check Fees Based upon building valuation. Assessed by County of Los Angeles. Plumbing, Mechanical, and Electrical County assessment based upon the Permits number of fixtures, outlets, switches, and panels. City fee is 2-1/2 times the amount set forth by the County. Park and Recreation Fund Fee Each new residence pays 2% of the first $100,000 in building valuation, plus an additional .5% for the remaining balance. School Fee $1.50 per square foot of habitable living space. Site Plan Review $1,500. Water Service Option 1: $600 Hydrant Meter Deposit, plus • service charge for the amount of water used during construction. Option 2: No hook-up fee. Meter fees determined by the size of meter and the number of fixtures. Does not include service charge for amount of water used during construction. Sources: City of Rolling Hills; County of Los Angeles, Dept. of Building & Safety; Palos Verdes Peninsula Unified School District; California Water Service Company. 31 HOUSING ELEMENT OCTOBER 23, 1991 Table H-11 provides an overview of the time requirements and fees associated with processing residential applications in Rolling Hills.. All applications ranging from non -city initiated code amendments to site plan review must be submitted to the City's Planning Department. After Planning staff reviews the applications for completeness, all submittals then appear before the Planning Commission which serves as the decision -making body on planning procedures. All appeals to decisions are heard and decided by the City Council. Since the City of Rolling Hills is .largely built out, the majority of procedural submittals are for rebuilt single-family dwellings and additions to existing structures. In addition to submitting applications to the City for building permits and site plan review, the developer must also submit plans to the Los Angeles County Building and Safety Department for building and grading plan checks. Applications for City and County procedures can be submitted concurrently. Approximately two to three months are required to complete project processing, a comparable review period for single-family development in most other southern California jurisdictions. Processing times for City permits do not represent a significant constraint on development. In addition, .the City currently contracts with consultants for planning services, and could expand consultant responsibility to include project processing should the need arise in the future. Absence of Government Funding Development of affordable housing in Rolling Hills .would require extraordinary financial assistance to develop. Assuming the other constraints previously discussed could be eliminated, potential sources of such assistance and the applicability, to Rolling Hills must be examined. A summary of existing state and federal housing assistance programs and the availability for use in Rolling Hills is provided as an appendix to the Housing Element. The availability of Federal and State funding sources is subject to many limitations. Many types of government assistance are conditioned upon the existence of populations in need of assistance or housing stock conditions requiring repair or rehabilitation. The absence of in need populations and deteriorated housing in Rolling Hills renders the City ineligible for many types of assistance. In addition, high rental values in the City preclude the use of the Section 8, Housing Voucher Assistance Payments Program. Under that program, the Department of Housing and Urban Development (HUD) provides subsidies to landlords under certain conditions. Only housing units with rents at or below maximum rent levels are 32 . HOUSING ELEMENT OCTOBER 23, 1991 • TABLE H-11 CITY OF ROLLING HILLS TIME REQUIREMENTS AND FEES FOR RESIDENTIAL PROCESSING Request Fee Non -City Initiated Code Amendment $2,500 Zone Change $2,500 Minor Setback (10') Variance $1,000 All Other Variances $1,250 Conditional Use Permits $1,500 Project processing for these five procedures does not begin until a complete application has been received. Site Plans, Public Notification Lists, and an Initial Environmental Evaluation must also be submitted. Three public meetings are required: an initial open meeting before the Planning Commission, and public hearings at the Planning Commission and City Council level. Processing time for each of the five procedures is approximately two months. Applications can be submitted concurrently. Site Plan Review $1,500 New single-family homes, grading projects, and additions to structures that exceed 25% of the existing square footage are subject to Site Plan Review. Two meetings are required: an initial hearing before the Planning Commission, and a second public hearing in which the Planning Commission renders its decision. All decisions can be appealed to City Council. • Approximate processing time is 75 days. Source: City of Rolling Hills. HOUSING ELEMENT 33 OCTOBER 23, 1991 eligible to receive subsidies. Rents in the City far exceed maximum allowable levels payable under the Section 8 Program. One source of housing assistance used by many local governments is moneyderived from redevelopment .project tax increment. This source is unavailable, however, because the City has no redevelopment areas and the absence of blight in the City precludes the formation of a redevelopment area. The City's limited financial resources further precludes the use of City General Fund monies for housing assistance. The absence of federal, State and local funding sources for affordable housing in Rolling Hills (refer to table in Appendix A), coupled with the high cost of land and construction, act as a significant constraint to the provision of affordable housing in the City. Private financing of affordable housing is also unlikely given the low densities required by the CC&Rs and by the topography of the City. Environmental and Infrastructure Constraints Portions of Rolling Hills are exposed to a variety of environmental hazards which may constrain the development of lower priced residential units. In addition, inadequate infrastructure may also act as a constraint to residential development. Hillside/Slopes Rolling Hills may be described as having the most severe terrain of any jurisdiction in Los Angeles County. Slopes of 25 to 50 percent are presenton virtually every remaining undeveloped parcel in the City. Development on such severely sloped parcels requires substantial modification to the natural terrain which significantly adds to the cost of development. The extreme topography present in Rolling Hills serves as a significant constraint to the development of affordable housing. As a means of preventing erosion and landslides and preserving Rolling Hill's natural hillside topography, the City's Site Review Ordinance prohibits extensive grading and recontouring of existing terrain. The City has adopted the County's grading standards with some modifications necessary to ensure slope stability. The City's cut and fill provisions require balance on site, which is necessary because export of material is not practical given the narrowness of streets in the City. The Rolling Hills Community Association also restricts the use of streets for soil export due to the impact on street condition and on public safety. 34 HOUSING ELEMENT OCTOBER 23. 1991 • Landslides Rolling Hills experiences a recurring problem of landslides which damage or destroy homes and present risks to human health and safety. Numerous active landslides in the City presently render significant areas of the City unsafe for development. The danger of increased soil instability particularly if higher density development is constructed, would contribute to potential risk to human life as well as to physical improvements. A.map of past landslides is contained in the Safety Element. Building at the head of .a landslide can decrease the bedrock strength along an existing or potential rupture surface and "drive" the landslide down slope. Improper grading practices can also trigger existing landslides. The Safety Element sets forth policies to restrict new development and expansion of existing development in areas susceptible to landsliding unless this hazard can be adequately mitigated. Street System Rolling Hills has no public roads or streets. Use of privately owned roadways requires approval of the Rolling Hills Community Association. The City's privately -owned road network is typified by winding roads with a 25 foot paved cross-section lacking in curbs, gutters, or sidewalks. Road width, coupled with steep grades and private roadways, effectively precludes public transit within the City. The City's circulation infrastructure is basically not conducive to higher density housing. Wastewater Disposal With the exception of the eight residences which individually or through the creation of a small sewer district have hooked in with adjacent jurisdiction's sewer systems,there is no sanitary sewer system in Rolling Hills. Residences are served by individual septic tanks and leach lines. Insofar as the City remains on a septic system, this will prevent the development of higher density housing, including the construction of second units. The City is currently in the process of working with a group of five homeowners in the John's Canyon area located on the City's western periphery to establish a privately financed sewer district to be linked in the County system. However, there is only limited potential for additional sewer districts due to the prohibitive cost associated with sewering residences at further distances from County sewer lines, and the inability of the Cityto subsidize these costs. 35 HOUSING ELEMENT OCTOBER 23, 1991 HOUSING OPPORTUNITIES This section of the Housing Element evaluates future .housing opportunities in Rolling Hills in relation to the City's housing needs. Residential Land Inventory In order to assess future residential development potential in Rolling Hills, an inventory of residentially -zoned vacant parcels has been prepared and evaluated in terms of the actual capability of parcels to accommodate residential development. In addition, large parcels which are currently developed but which have the potential for further subdivision have also been evaluated. With the majority of the City's developable residential acreage already built out, many of the remaining vacant parcels are characterized by physical constraints which preclude their development. These constraints are primarily related to severe topography and/or existing landslides. Of the total 203 acres of vacant residential land identified in the Land Use Element, approximately 172 acres are physically suitable to accommodate residential development. Figure H-1 illustrates those parcels which have been identified as appropriate for residential development; Table H-12 quantifies the number of dwelling units which could be accommodated on these parcels. All of these parcels are subject to CC&Rs. Vacant parcels have been separated into two categories - individual parcels which can accommodate a single unit and larger parcels with the potential to subdivide into several smaller parcels. A single 63 acre parcel known as Storm Hill provides the most significant opportunity in the City for potential subdivision, accommodating a net increase in approximately 25 dwelling units. Several larger developed parcels also offer the opportunity for further subdivision, as confirmed by subdivision inquiries received by the City. Aggregating the development potential on both vacant and underutilized parcels, a total of ten additional residential dwellings can be accommodated in the City's RA -S-1 zone, with the potential for an additional 49 dwellings in the RA -S-2 zone. Non-residential properties in Rolling Hills are limited to public and institutional uses. None of these uses are anticipated to be redeveloped within the time frame of this element. 36 HOUSING ELEMENT OCTOBER 23, 1991 14'11 et... SOURCE: City of Rolling Hills, December 1989. Figure H-1 Site Inventory For Residential Development TABLE H-12 CITY OF ROLLING HILLS FUTURE RESIDENTIAL DEVELOPMENT POTENTIAL MAXIMUM POTENTIAL INCREASE IN DUs -Zone Vacant Vacant/ Subdividable Developed/ Subdividable Total RA -S-1 10 10 RA -S-2 9 28 12 49 TOTAL 19 28 12 59 ource: City of Rolling Hills Residential Development Potential Compared With Future Growth Needs As indicated in the Housing Element section "Share of Region's Housing Needs", the Regional Housing Needs Assessment (RHNA) prepared by SCAG identifies a future housing need for Rolling Hills of 40 units to be developed over the next five years (1989-1994). The residential land inventory identifies the potential for development of 59 additional single-family dwelling units on unconstrained land, indicating the City's General Plan and zoning provide for a residential development capacity more than adequate to accommodate the City's share of regional housing needs. 38 HOUSING ELEMENT OCTOBER 23, 1991 SUMMARY OF HOUSING ISSUES AND OPPORTUNITIES The following housing issues and opportunities have been identified as part of the General Plan Update and are addressed in the Housing Element goals, policies and programs. With the majority of the City's developable acreage already built out, many of the remaining vacant parcels are characterized by physical constraints which preclude their development. c Virtually every parcel in Rolling Hills which is considered developable contains slopes of 25 to 50 percent, presenting a significant constraint to the development of higher density housing. o Land costs are extremely high in Rolling Hills and produce a situation where opportunities for the development of housing affordable to lower income households are very limited. o The Rolling Hills Land Use Plan accommodates a total of 59 additional dwelling units on unconstrained land in the City. The Plan's development potential is thus adequate to meet the City's five year share of regional housing needs, which has been identified by SCAG as 40 dwelling units. o The City could address the housing needs of its significant elderly population by contributing seed monies for congregate housing facilities, coordinating with local shared housing service providers, and coordinating with providers of equity conversion programs. 39 HOUSING ELEMENT OCTOBER 23, 1991 HOUSING PLAN The prior chapters in the Housing Element establish the housing needs, opportunities, and constraints present in Rolling Hills. The Housing Plan presented in the following chapter sets forth the City's goals, policies and programs to address Rolling Hills' identified housing needs.. Evaluation of Accomplishments Under Existing Housing Element State Housing Element law now requires communities to assess the achievements under adopted housing programs as part of the five year update to their housing elements. These results should be quantified where possible (e.g. new construction results) but may be qualitative where necessary (e.g. mitigation of governmental constraints). These results are then compared with what was projected or planned in the earlier element. Where significant shortfalls exist between what was planned and what was actually achieved, the reasons for such differences are discussed. The City of Rolling Hills prepared a comprehensive update to its Housing Element in 1981. In compliance with the July 1984 deadline for review and update, the City prepared a memorandum which reviewed the accomplishments to date under adopted housing programs; no additional programs were set forth under this 1984 Housing Element review. The following section re-examines the progress made towards implementing the City's housing programs as set forth in the 1981 Housing Element. The results of this analysis have been utilized to refine and . augment the City's housing programs to develop an overall strategy to adequately address the community's housing needs. 1. Existing Program: Provide an overlay zone classification which may be applied to appropriate areas for housing for low and moderate income elderly based on proximity to commercial services, public transit, and other services. Accomplishment: Environmental constraints present on the City's remaining vacant parcels, combined with extreme land costs, preclude the development of multi-family/affordable housing in Rolling Hills. Due to these factors, the concept of an affordable housing overlay zone is no longer an appropriate program for the City's Housing Element. 40 HOUSING ELEMENT OCTOBER 23. 1991 2. Existing Program: Permit manufactured or mobile homes on all buildable, single family lots in the City. Accomplishment: The City has amended its Zoning Ordinance to provide for manufactured homes, mobile homes and trailers. 3. Existing Program: Provide low and moderate income housing in the City of Lomita through pooling of area block grant monies. Accomplishment: The City of Rolling Hills contributes its annual allotment of CDBG funds to the City of Lomita to be used expressly for the construction of congregate housing for lower income seniors. The City's contribution of approximately S10,000 per year has enabled the construction of the following two senior housing projects in Lomita: a) 78 rental units for low income elderly or handicapped individuals at 24925 Walnut Street, Lomita b) 67 rental units for low income elderly or handicapped individuals at 25109 Ebony Lane, Lomita • Additionally, for the past several years Rolling Hills' CDBG contributions have been set aside to go towards the acquisition of land for a construction of a third senior housing project. The City of Lomita expects to acquire this property by June 1990 and will construct 25 low income elderly/disabled rental units on the site. 4. Existing Program: Participate in regional low and moderate income housing programs. Accomplishment: The City participates in regional low and moderate income housing programs through joining other neighboring cities in pooling financial resources to construct low cost housing in the greater community. In addition, the City has met with representatives of other jurisdictions to discuss cooperative housing strategies. 5. Existing Program: Solicit the private sector's involvement in providing affordable housing. Accomplishment: The City has amended its Zoning Ordinance to provide density bonuses for developers wishing to build low and moderate income housing in Rolling Hills. 41 HOUSING ELEMENT OCTOBER 23, 1991 6. Existing Program: Encourage developers to construct low and moderate income housing by providing a density bonus of 25 percent over the otherwise allowable units permitted when the developer provides at least 25 percent of the total number of units in a housing development for persons of low or moderate income. Accomplishment: The City's Zoning Ordinance has been amended accordingly. 7 Existing Program: Encourage developers .to construct housing for persons of low or moderate income by providing developmental incentives. Accomplishment: The City has amended its Zoning Ordinance to provide density bonuses for developers wishing to build low and moderate income housing in Rolling Hills. 8. Existing Program: Encourage housesharing for those residents who no longer needs a large residence. Accomplishment: Seniors in Rolling Hills utilize two nearby shared housing programs - South Bay Senior Services in. Torrance and Anderson Center in San Pedro - which assist seniors in locating roommates to share existing housing in the community. . Existing Program: Control grading in new and existing development. Accomplishment: The City has adopted a Site Plan Review Ordinance which, among other things, regulates grading practices to ensure compatibility with the existing natural setting. Planning Commission approval of a project's site plan review application is required before a grading permit willbe issued. 10. Existing Program: Provide programs for minor home repairs. Accomplishment: The City's housing stock is in excellent condition and the vast majority, if not all, of the City's residents have the financial means to ensure adequate upkeep to their homes. This program is not appropriate to Rolling Hills. 11. Existing Program: Promote neighborhood beautification activities. 42 HOUSING ELEMENT OCTOBER 23, 1991 Accomplishment: Both the City and the Rolling Hills Community Association undertake neighborhood beautification activities on an ongoing basis in the community. 12. Existing Program: Establish open space hazard zones to protect the health and safety of present and future residents. Accomplishment: As part of the City's General Plan Update, a Landslide Hazard overlay designation for the Flying Triangle is being developed to provide consistency with the City's restrictions on development in unstable geological areas. 13. Existing Program: Allow repair of structures and remedial grading within the landslide moratorium area. Accomplishment: The City's updated Safety Element sets forth policy to allow for hazard mitigation and slope maintenance plans for existing and continuing development in hillside areas. 14. Existing Program: Allow temporary mobile homes on landslide ' sites where existing residential structure is uninhabitable. Accomplishment: The City's Zoning Ordinance has been modified to accommodate temporary mobile homes on landslide sites where the existing structure is uninhabitable. 43 HOUSING ELEMENT OCTOBER 23. 1991 Goals and Policies The City of Rolling Hills adopted a series of goals and policies as part of its 1981 Housing Element to guide the development and implementation of its housing program. As part of the current General Plan update, these adopted goals and policies were reviewed with the General Plan Advisory Committee as to their appropriateness in addressing the community's housing needs. The following goals and policies reflect a revision to those previously adopted to incorporate community input and to reflect what has been learned from the prior element. These goals and policies will serve as a guide to City officials in daily decision making. GOAL 1: Provide for housing which meets the needs of existing and future Rolling Hills' residents. Policy 1.1: Evaluate ways in which the City can assist in providing housing to meet special community needs. Policy 1.2: Work with governmental entities to explore the possibility of providing affordable housing for low and moderate income and senior citizen households in the South Bay region. Policy 13: Continue to contribute Community Development Block Grant funds to nearby cities for the development of congregate • housing for seniors. Policy 1.4: Encourage the development of residential units which are accessible to the handicapped or are adaptable for conversion to residential use by handicapped persons. Policy 1.5: Encourage the use of energy conservation devices and passive design concepts which make use of the natural climate to increase energy efficiency and reduce energy costs. Policy 1.6: Continue to facilitate the development of housing in the City, taking into account existing financial, legal, and environmental constraints. GOAL 2: Maintain and enhance the quality of residential neighborhoods in Rolling Hills. Policy 2.1: Encourage and assist in the maintenance and improvement of existing neighborhoods to maintain optimum standards of housing quality and design. HOUSING ELEMENT OCTOBER 23, 1991 Policy 21: Require the design of housing to comply with the City's building code requirements. Policy 2.3: Require compatible design to minimize the impact of residential redevelopment on existing residences. Policy 2.4: Enforce City housing codes and cooperate with the Rolling Hills Community Association to assure the upkeep and maintenance of housing in the City. GOAL 3: Provide housing services to address the needs of the. City's senior citizen population. Policy 3.1: Provide reference and referral services for seniors, such as in -home care and counseling for housing -related issues, to allow seniors to remain independent in the community. Policy 31: Coordinate with existing agencies providing shared housing programs in nearby cities as an option for seniors to share existing housing in the community. Policy 3.3: Coordinate with lending companies and institutions to educate the City's elderly homeowners as to the availability of reverse mortgage loans which allow income -poor seniors to remain in their homes. GOAL 4: Promote housing opportunities for all persons regardless of race religion, sex, marital status, ancestry, national origin or color. Policy 4.1: Affirm a positive action posture which will assure that unrestricted housing opportunities are available to the community, and enforce all applicable laws and policies pertaining to equal housing opportunity. Policy 4.2: Make information on fair housing laws available to residents and realtors in the City. Policy 43: Investigate any allegations of violations of fair housing laws. HOUSING ELEMENT 45 OCTOBER 23. 1991. Implementing Programs The goals and policies set forth in the Housing Element to address the City's housing needs are implemented through a series of housing programs. The Housing Element program strategy consists of both programs currently in use in the City and additional programs to provide the opportunity to adequately address the City's housing needs. The following section provides a brief description of each program, five year quantified objectives, funding source, responsible agency and implementation time frame. Shared Housing Many seniors who prefer to live independently resort to institutionalized living arrangements because of security problems, loneliness, or an inability to live entirely independently. Seniors in Rolling Hills have access to two nearby shared housing programs - South Bay Senior Services in Torrance and Anderson Senior Center in San Pedro - which assist seniors in locating roommates to share existing housing in the community. These programs make roommate matches between seniors based on telephone requests. South Bay Senior Services frequently receives calls from seniors in Rolling Hills in search of other seniors to rent guest cottages or second units attached to the main residence, and bas located roommates for several of the City's elderly homeowners. The City can more actively market the availability of these shared housing programs by providing informational brochures at the public counter. Quantified Objective: Develop informational brochures advertising existing shared housing programs to increase the number of roommate matches to ten over the 1989-1994 period. Funding Source: City budgets. Responsible Agency: City Planning Department. Implementation Time Frame: Two Years. Reverse Mortgage Program The most substantial asset of most elderly homeowners is their home, which in Rolling Hills has increased significantly in value with inflation. But while owning a home in Rolling Hills may provide a rich asset base, the onslaught of retirement and a fixed income can cause many elderly homeowners to quickly become income poor. Home maintenance repairs multiply as the home ages, and with rising costs in home utilities, insurance, and taxes, housing maintenance often gets deferred. HOUSING ELEMENT 46 OCTOBER 23.1991 An alternative option for elderly homeowners is to draw needed income from the accumulated equity in their homes through a reverse mortgage. A reverse mortgage is a deferred payment loan or a series of such loans for which a home is pledged as security. Qualification for the loan is based primarily on property value rather than income, allowing the elderly homeowner on a fixed income to receive a loan for which he or she would not otherwise qualify. Most reverse mortgage programs permit homeowners to borrow up to 80 percent of the assessed value of .their property, to receive needed principal of up to 25 percent of the loan, and then to receive monthly annuity payments for the life of the loan. Reverse mortgages may offer a viable financing alternative to many of Rolling Hills' elderly homeowners. The City can help to inform its senior population as to the availability of reverse mortgages by providing educational brochures, as well as referral services, to those seniors interested in pursuing a reverse mortgage. Based on available information, the following companies and lending institutions are known to offer reverse mortgage loans in the Los Angeles area. 1. Security Pacific National Bank, City of Downey (213) 869-1056, 2. Capital Holding 1-(800)-431-8100, 3. Providential Home Income Plan (714) 793-2309, 4. American Homestead 1-(800)-233-4762. Quantified Objective: Provide informational brochures at the public counter, and offer referral services to seniors interested in pursuing a reverse mortgage. Funding Source: None necessary.. Responsible Agency: City Planning Department. Implementation Time Frame: Two years. Congregate Housing for Seniors Based on the infeasibility of senior housing development in Rolling Hills due to land costs and environmental constraints, the City contributes its annual allotment of CDBG funds to the City of Lomita to be used expressly for the construction of housing for lower income seniors. The City's contributions have facilitated the construction of two low income/senior housing projects and will go towards the purchase of land for a third senior housing facility. As this housing is located outside the City of Rolling Hills' jurisdiction, under State law it cannot 47 HOUSING ELEMENT OCTOBER 23. 1991 be counted towards the City's regional share of housing needs. Nonetheless, this housing provides congregate housing .opportunities for Rolling Hills' senior citiien households, and thereby addresses a special housing need in the City. Rolling Hills will continue to contribute its CDBG funding to nearby jurisdictions to facilitate the development of congregate housing for seniors. Quantified Objective: Increase the available supply of congregate housing units for seniors. • Funding Source: U.S. Dept. of Housing and Urban Development/Los Angeles County Community Development Commission Responsible Agency: City Planning Department Implementation Time Frame: Ongoing Assessment Fee Program To encourage the availability of low income housing, the City will actively encourage and assist the Rolling Hills Community Association to develop a program to reduce, eliminate or defer the Association's assessment fees for low and moderate income households. Even though Rolling Hills residents with low reported incomes likely have high wealth reserves, these households may have difficulty making their assessment payments. Quantified Objective: Develop program to help residents having difficulty making assessment payments. Funding Source: City Budgets. Responsible Agency: City Planning Department. Implementation Time Frame: Three Years. Code and CC&R Enforcement One factor contributing to the high levels of maintenance of Rolling Hills homes and neighborhoods is the cooperative work of the Rolling Hills Community Association and the City. The Architectural and the Landscape committees of the Association continuously monitor the City to ensure compliance with CC&Rs and relevant City codes and regulations. In the event that a violation of City codes or regulations is discovered, the City works with the Association to cure the violation. HOUSING ELEMENT 48 OCTOBER 23, 1991 Quantified Objective: Continue code enforcement efforts. Funding Source: City Budgets. Responsible Agency: City Planning Department. Implementation Time Frame: Ongoing. Facilitate New Construction The City will continue to work with and assist housing developers and builders to enable new housing to be built in the City. The unique geographic and infrastructure constraints in the City require high levels of cooperation between City staff and developers and builders. Continued cooperation will facilitate the construction new housing to allow the City to meet its total regional share allotment of new housing. Quantified Objective: The development of Rolling Hill's regional share of 40 housing units as established by SCAG in January, 1989. Funding Source: City Budgets. Responsible Agency: City Planning Department. Implementation Time Frame: 1989-1994. Facilitate Repair and Remodeling Activities Landslide damage has, and may continue to necessitate repair work on damaged homes in the City. In addition, many homeowners have instigated extensive home remodeling which has lead to significant increases in the value and quality of existing housing stock. Both repair and remodeling activities are expected to continue. City staff has been active in. facilitating the permitting process for remodeling and repair work and will continue to provide this assistance. Quantified Objective: Assist all applicants for remodeling repair permits. Funding Source: City Budgets. Responsible Agency: City Planning Department.. Implementation Time Frame: Ongoing. 49 . HOUSING ELEMENT OCTOBER 23, 1991 Density Bonus Program Pursuant to State density bonus law (section 565915-65918 of the Government Code), if a developer allocates at least 20% of the units in a housing project to lower income households, 10% for very low income households, or at least 50% for "qualifying residents" (62 years of age or older, or 55 years of age or older in a senior citizen housing project)_, the City must either: a)grant a density bonus of 25%, along with one additional regulatory concession to ensure that the housing development will be produced at a reduced cost, or b) provide other incentives of equivalent financial value based upon the land cost per dwelling unit. Should the City receive a development application for a low income density bonus project which otherwise complies with zoning and CC&R restrictions, the City will approve the density bonus as a mechanism of providing affordable housing. Quantified Objective: Grant bonuses on all qualified projects. Funding Source: City Budgets. Responsible Agency: City Planning Department. Implementation Time Frame: Ongoing. Ground Instability Continue to explore possible solutions to ground instability problems. The City has had to impose a moratorium on development in certain areas because of landslide risks. The City is currently analyzing this problem to determine ways to eliminate these risks. One solution being implemented is continued analysis of conditions in the City. Quantified Objective: Continue to work with geotechnica] consultants to establish construction regulations and to explore other potential solutions to problem. Responsible Agency: City Planning Department and City. Manager's Office. Implementation Time Frame: Ongoing. Funding Source: City Budgets. 50 HOUSING ELEMENT OCTOBER 23, 1991 Neighborhood Sponsored Sewer Districts. 41,1 Promote and facilitate the development of homeowner sponsored sewer districts. Financial constraints currently prohibit the development of a public sewer system in Rolling Hills. Costs for sewer services through the County's system are prohibitively expensive, due to both the great distance to the County sewer lines, and the .distance between homes, and beyond the City's financial means to subsidize. Requiring all homeowners to bear such a significant cost could create hardships for homeowners and would increase the cost of housing in the City. The City is in the process of coordinating with a group of five homeowners to develop a sewer district that will be hooked up to the County system. This proposed sewer district is located in John's Canyon on the City's western periphery, rendering it more feasible than other locations in the City at a greater distance from County sewer lines. Quantified Objective: Complete development of district. Responsible Agency: City Planning and City Manager's Office. Implementation Tune Frame: Two years. Funding Source: City Budgets. Housing Repair and Temporary Shelter on Landslide Sites The City will continue to allow the repair of damaged structures and remedial grading in landslide areas. The use of temporary mobile homes on landslide sites will also continue to be permitted. (Mobile homes are permitted in all the City's residential zones.) Quantified Objective: Assist all persons qualified. Responsible Agency: City Planning Department. Implementation Time Frame: Ongoing. Funding Source: City Budgets. Summary of Five -Year Program Goals Number of Units to be Constructed: 40 single-family units Number of Units to be Rehabilitated: 0 rehabilitation need Number of Units to be Conserved: 683 single-family housing units 51 HOUSING ELEMENT OCTOBER 23, 1991 FEDERAL AND STATE HOUSING PROGRAMS (continued) Comment Single -Family Mortgage Revenue Bonds Redevelopment -Tax Increment Financing Allows for the issuance of bonds for below market loans for low and moderate income homebuyers. The high costs of homes in the City make them unaffordable to persons targeted in this program. Allows local agencies to keep increases in taxes for redevelopment areas. This is inapplicable to Rolling Hills because there are no blighted areas which could qualify for redevelopment. A-4 APPENDIX B Second Unit Ordinance D. The geological report prepared ty the independent registered geologist shall recommend c..rrcct-Ve act:On which is designed tc F:e•.•ent the displaceme.._ er slippage of the :and. (Ord. 178 S", 1980:. 15.40.030 Corrective action re '__red when,. As a condi- tion to the issuance of a permit c_ City Engineer of .he City, - the corrective action or procedures recomMendedHin proposed s_ructior.. c: _�_. for ;..:C tne __ nas reen a;.___. (Ord. 178 53, 19i,, .. 15.40.04 ^ Assessment cf tests. All e•• senses _red ty the applicant in complying with the' pro✓is_orns of toie ch,apt.er shall be paid for by the applicant and shall be in addition to ali other charges or fees levied, assessed or charged by the City in connection with the issuance of a building or grading permit. (Ord. 178 S4," 1.980). Chapter 15.44 SECOND UNITS ON SINGLE-FAMILY LOTS Sections.: 15.44.010 Prohibition. 15.44.020 Findings. 15.44.030 Limitation on housing opportunities. 15.44.010 Prohibition. Second units on single-family lots are prohibited within the City for the reasons set forth in Section 15.44.-020. For the purposes of this Chapter, "second unit" means a detached or attached dwelling unit which provid.=s complete, independent living facilities for one or more persons including permanent provisions for _ i• - , sleeping, cooking, and sanitat_on,~cn the same parcel as _s situated the primary residential structure. (Ord. 198 51 (part),.1983). 15.44.020 Findings. The following findings specify the adverse impacts on the public health, safety and weifar_•that would result from allowing second units on single-fa'.1.. lots and which justify their -preclusion within the City: A. Lack of Sewers. The City.has no sanitary sewer- system.and°sewage effluent is disposed of into cesspools and leach lines which enter the earth strata and percolate .into the soil. By authorizing second units in. the City, the amount of sewage effluent entering the ground, currently 189-1 (Rolling Hills 8/83) 60;133,750 ca11cn- a year, could dcuble. T is increase would add to an already exist_.ng problem cf Je effluent water entering the around and decreasing tie shearing_- strength of the predominant clay soil along slippage t.:r:aces.. The_ strength of clay decreases as its absorred water content increases, resulting in movement and instability. The author- zat_on of second units we __d _ower the ma_ -_n of safe_, by contributing to a decrease in geologic stat_lity. The current ethod of sewerinc the City is predicated on one -acre and -iwc-acre a-ized -- - and li7ited dens_ _, _.laces an a._ce_ _able level c: risk on the amount cf effluent en:err. , the earth . strata in the City. - B, Geologic Setting: In the City numerous active landslides.greatly.diminis` development potential and call for caution in increasing densities. Reference is made -to the Landslide Map fol.lowiic page 86 of the'Seismic/Safety Element of the Rolling Hills General Plan. The risk of landslide is affected by development of the land, in that, as is noted in the'Seismic/Safety Element, areas shown as probable landslides are "unacceptable risks" and development upon slide masses add to the total weight of the system, thereby increasing driving forces of the land. The Addition - of second units -in the City would compound the problem by increasing development and exposure to levels of risks beyond acceptable'standa_ds as described on page 90 of the Rolling Hills Seismic/Safety Element. • C. Rural -Design and Community Roadway Character. The City has -no public streets and all roadways have controlled access. The roadways are rural and narrow (twenty to twenty- four feet of paving) , with no curbs, gutters or sidewalks. In many instances ecuestrian oaths are directly adjacent to the roadway paving. Th is _ is design. _s - :ec_cated or. a 'rural density of one to two acres per unit. The current capacity •arid design of the entirely private roadways, riding rings and trails cannot withstand increased densities. Ro.dways in the City are generally long and narrow with lengthy cul- de-sacs ;one way in and out . This standard is acceptable ^r._ because of IOW-ru_a1 dens_ -y, and the authorization of two units on lets would demand a change in the roadway design cf the City. There is no funding available for such an endeavor and to proceed with two units on lots without additional access would cc -promise traffic safety as well as the fire protection needs of the City. D. Fire Flow Requirements; The introduction of second units would chance the infrastructure requirements on water pressure in the City beyond the current requirements of one thousand two hundred fifty g . p. m. According to the Seismic/Safety Element of the General ?lac., water pressure to fight fires would chance to one thousand seven hundred fifty g.p.m., and the spacing requirement for fire hydrants 189-2 (Rolling Hills 8/83) wo.:1d be ore three hundred thirty feet, rather than the c::rre.n_ five -hundred feet. The fire -fighting capability o: the City ..ould be cc' ' -c-_ sed _;f _roper pressure cc -_1d not ce met. ;e City has nc funds ava__ab.e to revamp the syste7 tha was planned and installed for single-family residential lots in a hillside area. -(Ord. 193 Sl{par•), 1983). 15.44.030 Limitation on housing opportunities. A The Zity rt th=t - -- cF units _.. C___ may c the region,: This 1,mitat.on is justified, however, by tne -unusual circumstances described in Section 15.44.020-. B. , ":cre: __ t':e City of Roll i n ----s has par ..ic tec in regional' housing programs and has -contributed its funds for housi-c`projects to 'the city of Lomita, a neighbor- ing municipality. In adopting the Housing Element of the General Plan in 1981, Rolling Hills accepted a share of the regional housing allocation model and established the documented constraints on housing potential in the City. The Housing Element- established that Rolling Hills would` work fully with -all jurisdictions in insuring that housing needs of the recaon are met. Given the relatively small number of single-family residences located within the C.ity,. this preclusion will notsignificantlyaffect housing oppor- tunities_in the region. (Ord. 198 §l(part),.1983). 189-3 (Rolling Hills 8/83) PROJECT DESCRIPTION Project Location Rolling Hills is located in southern Los Angeles County near the coast on the Palos Verdes Peninsula as shown on Figure 1. The City is bounded on the north by Rolling Hills Estates, and on the east, south, and west by Rancho Palos Verdes. Rolling Hills is approximately 18 miles south of downtown Los Angeles and five miles west of the major harbor and port facilities in San Pedro. Figure 2 delineates Rolling Hills' jurisdictional boundaries and parcelization. Community Character The City of Rolling Hills is an entirely residential community of rural character with large lot parcels of one acre or more. The City encompasses 2.98 square miles of land on the Palos Verdes Peninsula. The land use pattern was established with the original subdivision and sale of parcels, which began in 1936. From its inception, the emphasis in Rolling Hills has been to create and maintain a distinctive rural residential character which preserves the sense of openness created by the area's hilly topography. The City's minimum lot size requirements are reflective of the community's desire to maintain its rural setting, its recognition of the limitations presented by the varied topography, and the lack of urban infrastructure. The City was established as a community of single-family homes on large parcels and has continued as such for more than 50 years. Today it is essentially a built - out community. All of the developable property in the City is subject to enforceable covenants, conditions, and restrictions (CC&Rs) which run with the property in perpetuity and greatly restrict development within the City. These restrictions have been in existence since 1936. A large, geologically unstable open area exists in the City. It once contained homes, but many of these suffered irreparable damage in a major slippage in the 1980s. . Soils and geologic conditions place great constraints on development within the City. The City has experienced major landslides due to soil saturation and instability. Since only a few homes on the periphery of the City are served by a sewer system, most new homes must also utilize septic tanks and leach fields for disposal of sanitary waste. Past experience suggests substantial care, and restraint must be exercised in the expansion of any existing systems or the addition of new systems to avoid possible ground instability due to saturation of the upper soil layers. This situation and existing infrastructure constraints act to limit densities in the City. The City has acted to restrict development in areas of past landslides and other areas which studies indicate to be potentially unsafe. New housing construction or home remodelling is carefully monitored and regulated to assure geologic and soils conditions are satisfactory and the construction can be permitted without impact or hazard. NOTICE OF PREPARATION NEGATIVE DECLARATION TO: Office of Planning & Research City of Rolling Hills Agency 2 Portuguese Bend Road 1400 Tenth St . , Room 121 Rolling Hills, CA 90274 Address Sacramento, CA 95814 PROJECT TITLE: Rolling Hills Housing Element Update PROJECT APPLICANT: City of Rolling Hills A determination has been made by the City of Rolling Hills based on an initial study, that: X The project COULD NOT have a significant effect on the environment; therefore, a NEGATIVE DECLARATION will be prepared for the project. The project COULD have a significant effect, but revisions to the project plans made by the applicant and/or an enforceable commitment from the applicant to include mitigation measures would reduce impacts to less - than -significant levels; therefore, a NEGATIVE DECLARATION will be prepared for the project. Any comments you may wish to make regarding the action are hereby invited. Comments must be received in the offices of the Planning Department by Monday. P-c_e ber 23, 1991. The description, location, and the probable environmental effects are contained in the attached materials. A copy of the Initial Study is attached, which includes mitigation measures, if any, to avoid potentially significant effects. Please send your response to Craig Nedis, City Manager, at the address shown above. We will need the name of a contact person in your agency. Date November 8 , 1991 m584.02 Signature Title Principal Planner Telephone ( 310) 377-1521 Hwy 118 0 N Santa Monica Mountains SANTA MONICA 0 cc` \�� r �� B LONG CH 9 US 101 I/; y J o // / San Gabriel Mountains PASADENA kik-11 t North ° 3 6 scale in miles . 1-10 1-210 WHITTIER `Hwy 22 Figure 1 Vicinity Map 2 z 0 5 F. 0 5 • • r C- C V) 07, 0 • co W �C\ C`DDA V' a C) mm N� • C O N • N Project Description The California State Legislature has identified the attainment of a decent home and suitable living environment for every Californian as the State's major housing goal. Recognizing the importance of local planning inthe pursuit of this goal, the Legislature has mandated that each city prepares a housing element as pan of its General Plan, and that the housing element be updated every five years to reflect the community's changing housing needs. Rolling Hills' Housing Element was last updated in June 1989 as part of the 1989-1994 update cycle for jurisdictions in the SCAG region. The Housing Element update was also part of a comprehensive General Plan Update. This subsequent amendment is being prepared for two primary reasons. One, to comply with recent changes in State law. And two, to more fully address comments made by the Department of Housing and Community Development on the prior Housing Element. The Regional Housing Needs Assessment (RHNA) prepared by SCAG identifies Rolling Hills as one of the few localities in Southern California with an existing unmet housing need of zero. Rolling Hills' future new construction need is for 40 dwelling units over the 1989-1994 time period, as specified for RIINA. The City's Land Use Plan provides for the development of 59 additional dwelling units, thereby providing a development capacity which is more than adequate to accommodate the City's share of regional housing needs. The Rolling Hills Housing Element update consists of the Housing Element and supporting Technical Data. The Technical Data provides an overview of the population, socio-economic, and housing characteristics of the City. The Housing Element is comprised of the following components: 1. A summary of the present and projected housing needs of the City's households; 2. A review of potential constraints to meeting the City's identified housing needs; 3. An evaluation of opportunities that will further the development of new. housing; 4. A statement of goals and policies which address identified housing needs; and 5. A comprehensive housing program strategy that will implement goals and policies. The Housing Element itself does not define the residential growth potential of the City, but rather works within the framework of the Land Use Element which. 4 establishes the type and amount of future residential development permitted in Rolling Hills. The Housing Element identifies the existing housing needs in the community, and sets forth goals and policies, such as rental and rehabilitation assistance, to address these needs. Summary The adoption of a revised Housing Element is not expected to have environmental consequences which may be considered significant under the California Environmental Quality Act. An EIR was prepared prior to the adoption of the revised general plan including the housing element in 1989. Because the revision of the housing element does not have environmental impacts beyond those previously considered in the General Plan EIR, a negative declaration is proposed for this project. 5 INITIAL ENVIRONMENTAL STUDY I. Background 1. Name of Proponent- City of Bolling Hills 2. Address and Phone Number of Proponent- Portuguese Rend Road Polling Hills California 9p 74 3. Date of Environmental Assessment: 11/8/91 4. Agency Requiring Assessment: City of Rolling 1 -tills 5. Name of Proposal, if applicable: Polling Nills Housing 1Fle*nent t 1ptiate 6. Location of Proposal: City-wide II. Environmental Impacts (Explanations of all "yes," "maybe," and "no" answers are provided on attached sheets.) YYs Maybc _N 1. Earth. Will the proposal result in: a. Unstable earth conditions or in changes in geologic substructures? b Disruptions, displacements, compac- tion or overcovering of the soil? c. Substantial change in topography or ground surface relief features? d. The destruction,, covering or modi- fication of any unique geologic or physical features? Y0 Mayes N9 e. Any substantial increase in wind or water erosion of soils, either on or off site? f Changes in deposition or erosion of beach sands, or changes in siltation, deposition or erosion which may modify the channel of a river or steam or the bed of the ocean or any bay, inlet or lake? g. Exposure of people or property to geologic hazards such as earth- quakes, landslides, mudslides, ground failure, or similar hazards? 2. Air. Will the proposal result in: a. Substantial air emissions or deterioration of ambient air quality? The creation of objectionable odors? c. Alteration of air movement, moisture, or temperature, or any change in climate, whether locally or regionally? 3. Water. Will the proposal result in: a. Substantial changes in currents, or the course or direction of water movements, in either marine or fresh waters? Substantial changes in absorption rates, drainage patterns, or the rate and amount of surface runoff? c. Alterations to the course or flow of flood waters? 2 Mayix d. Change in the amount of surface water in any water body? e. Discharge into surface waters, or in any alteration of surface water quality, including. but not limited to, temperature, dissolved oxygen or turbidity? f. Alteration of the direction or rate of flow of ground waters? g. Change in the quantity of ground waters, either through direct addi- tions or withdrawals, or through interception of an aquifer by cuts or excavations? h. Substantial reduction in the amount of water otherwise available for public water supplies? i. Exposure of people or property to water -related hazards such as flooding or tidal waves? j. Significant changes in the tem- perature, flow or chemical content of surface thermal springs? 4. Plant Life. Will the proposal result in: a. Change in the diversity of species, or number of any native species of plants (including trees, shrubs, grass, crops, and aquatic plants)? b. Reduction of the numbers of any unique, rare, or endangered species of plants? 3 c. Introduction of new species of plants into an area of native vegetation, or in a barrier to the normal replenishment of existing species? d. Substantial reduction in acreage of any agricultural crop 5. Animal Life. Will the proposal result in: a. Change in the diversity of species, or numbers of any species of animals (birds, land animals including rep- tiles, fish and shellfish, benthic organisms or insects)? b. Reduction of the numbers of any unique, rare or endangered species of animals? c. Deterioration to existing fish or wildlife habitat? d. Deterioration to existing fish or wildlife habitat? 6. Noise. Will the proposal result in: a. Increases in existing noise levels? b. Exposure of people to severe noise levels? 7. Light and Glare. Will the proposal produce substantial new light or glare? 8. Land Use. Will the proposal result in a substantial alteration of the present or planned land use of an area? 9. Natural Resources. Will the proposal result in: 4 YS,5 Maybe �4 . Substantial increase in the rate of use of any natural resources? Substantial depletion of any non- renewable natural resource? 10.. Risk of Upset. Will the proposal involve: a. A risk of an explosion or the release of hazardous substances (including, but not limited to, oil, pesticides, chemicals or radiation) in the event of an accident or upset conditions? b. Possible interference with an emer- gency response plan or an emergency evacuation plan? 11. Population. Will the proposal alter the location, distribution, density, or growth rate of the human population of an area? 12. Housing. Will the proposal affect existing housing or create a demand 'for additional housing? 13. Transportation/Circulation. Will the proposal result in: a. Generation of substantial additional vehicular movement? • b. Effects on existing parking facili- ties, or demand for new parking? c. Substantial impact upon existing transportation systems? d. Alterations to present patterns of circulation or movement of people and/or goods? 5 Yes Maybe NI) e. Alterations to waterborne, rail or air traffic? f. Increase in traffic hazardsto motor vehicles, bicyclists or pedestrians? 14. Public Services. Will the proposal have substantial effect upon, or result in a need for new or altered governmental services in any of the following areas: a. Fire protection? b. Police protection? c. Schools? _X. d. Parks or other recreational facilities? e. Maintenance of public facilities, including roads? f. Other governmental services? 15. Energy. Will the proposal result in: a. Use of substantial amounts of fuel or energy? b Substantial increase in demand upon existing sources of energy, or require the development of new sources of energy? 16. Utilities. Will the proposal result in a need for new systems, or substantial alterations to the following utilities: a. Power or natural gas? b. Communications systems? c. Water? 6 ICS be riQ d Sewer or septic tanks? _ e. Storm water drainage? _ f. Solid waste and disposal? 17. Human Health. Will the proposal result in: a. Creation of any health hazard or potential health hazard (excluding mental health)? • b. Exposure of people to potential health hazards? 18. Aesthetics. Will the proposal result in the obstruction of any scenic vista or view open to the public, or will the proposal result in the creation of an aesthetically offensive site open to public view? 19. Recreation. Will the proposal result in an impact upon the quality or quantity of existing recreational opportunities? 20. Cultural Resources. a. Will the proposal result in the alteration of or the destruction of a prehistoric. or historic archaeological site? b. Will the proposal result in adverse physical or aesthetic effects to a prehistoric or historic building, structure, or object? c. Does the proposal have the potential to cause a physical change which would affect unique ethnic cultural values? 7 4. • d. Will the proposal restrict existing religious or sacred uses within the potential impact area? 21 Mandatory Findings of Significance. a. 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, threaten to eliminate a plant or animal or eliminate important examples of the major periods of California history or prehistory? b. Does the project have the potential to achieve short-term, to the disadvantage of long-term, environ- mental goals? (A short-term impact on the environment is one which occurs in a relatively brief, definitive period of time while long- term impacts will endure well into the future.) c. Does the project have impacts which are individually limited, but cumu- latively considerable? (A project's impact on two or more separate resources may be relatively small, but where the effect of the total of those impacts on the environment is significant.) d. Does the project have environmental effects which will cause substan- tial adverse effects on human beings, either directly or indirectly? 8 ENVIRONMENTAL DETERMINATION On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and 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 the mitigation measures described on attached sheets have been added to the project. A NEGATIVE DECLARATION WILL BE PREPARED. I find the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. Signature Lola Ungar, Principal Planner Name 'Uovember R 1991 Date City of Polling Mills For DISCUSSION OF ENVIRONMENTAL EVALUATION CHECKLIST FORM 1. Earth a. through g. - The Housing Element itself will not directly result in any change in earth or geologic conditions as the density, type, and distribution of residential development permitted to occur in Rolling Hills are controlled by the Land Use Element. The Element does reinforce goals and policies in the Safety Element to protect the residents from geologic ha72rds. 2. Air a. through c. - As the future residential holding capacity in the City of Rolling Hills is not determined by the Housing Element but rather by the Land Use Element, the Housing Element itself will not impact air quality. 3. Water a. through j. - As the Housing Element itself will not generate additional development in the City, it will not have an impact on water -related issues. 4. Plant Lift a. through d. - As the Housing Element itself does not providefor additional development in the City, it will not have an impact on agriculture or other plant life. 5. Animal Lifc a. through d. - The Housing Element will not impact animal life in the community as it does not provide for additional residential development. 6. Noise a. through b. The Housing Element itself will not directly impact existing noise levels in the community, or expose people to severe noise levels as the density, type, and distribution of residential development permitted to occur in Rolling Hills are controlled by the Land Use Element. 7. Light and Glare As the Housing Element itself does not provide for new construction, it will not generate new sources of light or glare. 10 8. Land Use The Housing Element .reflects the land use pattern established under the Land Use Element of the General Plan and will not therefore result in any alteration to the present or planned land use in Rolling Hills. The Housing Element does set forth policies which address land use compatibility issues related to residential development. 9. Natural Resources a. through b. -The Housing Element does not in itself provide for any additional development, and thereby does not result in the increased use of non-renewable resources. The Housing Element sets forth policy to encourage the use of energy conservation devices and passive design concepts to reduce residential energy consumption and housing costs. 10. Risk of Upset a. through b. - The Housing Element will not involve a risk of an explosion or the release of hazardous substances, nor will it interfere with an emergency response or emergency evacuation plan. 11. Population As the Housing Element itself does not provide for any additional development, it will not alter the location, distribution, density, or growth rate of the City's population. 12. Housing The Housing Element itself does not provide for additional housing growth in the community. The Housing Element does however set forth policies and programs to address the City's future housing needs by encouraging housing which takes advantage of remaining opportunities in the City. The Housing Element also provides for the conservation and improvement of the City's existing housing stock. 13. Transportation/Circulation a. through f. - As the Housing Element itself does not provide for additional development, it will not impact the City's circulation system. 11 14. Public Services a. through f. - As the Housing Element dots not in itself provide for additional development, it will not have an effect upon public services in the. community. Housing Element policy calls for residential development to be coordinated with the provision of public services. 15. Energy a. through b. - The Housing element does not generate any additional development, and thereby does not result in increased energy usage. The Housing Element sets forth policy to encourage the use of energy conservation devices and passive design concepts to reduce residential energy consumption. 16. Utilities a. through f. As The Housing Element does not in itself provide for additional development in the community, it will not generate increased demands for any utilities. 17. Human Healtb a. through b. - The Housing Element will not result in the creation of any health hazard or potential health hazard, or exposure of people to potential health hazards. The Housing Element encourages vigorous enforcement of housing, building, and safety codes to mitigate unsafe conditions. 18. Aesthetics The Housing Element is consistent with the Land Use Element of the general Plan which sets forth policies to emphasize aesthetic improvements in Rolling Hills. Housing element policies address issues of land use compatibility in new development. 19. Recreation As the Housing Element does not in itself provide for additional development in the community, it will not generate increased demands for recreational facilities. 20. Cultural Resources a. through c. - As the Housing Element in itself does not provide for additional development, it will not have an effect on cultural resources in the community. 12 21. Mandatory Findings of Significance The 1991 Housing Element of the Rolling Bills General Plan is a three year policy document established to address the State's housing goals of attaining a decent home and suitable living environment for every Californian. The Housing Element itself does not provide for additional growth in the community, but rather works within the framework of the Land Use Element which establishes the type and amount of future residential development permitted in the City. The Housing. Element does not therefore impact the natural or man-made environment of the area. References 1. City of Rolling Hills General Plan, June 1990. 2. City of Rolling Hills General Plan EIR, April 1990. 3. City of Rolling Hills Safety Element Technical Appendix, Leighton and Associates, October, 1989. 13 • RICHARDS, WATSON & GERSHON ATTORNEYS AT LAW A PROFESSIONAL CORPORATION GLENN R. WATSON ROBERT G. BEVERLY HARRY L GERSHON DOUGLAS W. ARGUE MARK L LAMKEN ARNOLD SIMON ERWIN E. ADLER DAROLD D. PIEPER FRED A FENSTER ALLEN E. RENNETT STEVEN L DORSEY WIWAM L STRAUSZ ROBERT M. GOLDFRIED ANTHONY B. DREWRY MITCHELL E. ABBOTT TIMOTHY L NEUFELD ROBERT F. DE METER GREGORY W. STEPANICICH ROCHELLE BROWNE DONALD STERN MICHAEL JENKINS WILLIAM B. RUDELL DAVID L COHEN TERESA R. TRACY QUINN M. BARROW CAROL W. LYNCH COLEMAN J. WALSH. JR. JOHN A. BELCHER JEFFREY A. RABIN GREGORY M. KUNERT SCOTT WEIBLE TriOMAS M. JiMBO MICHELE BEAL BAGNERIS WIWAM K KRAMER CURTS L COLEMAN STEVEN H. KAUFMANN MARSHA JONES MOUTRIE AMANDA F. SUSSKIND WILLIAM E. MATSUMURA ROBERT C. CECCON PAMELA A. ALBERS SAYRE WEAVER KEVIN G. ENNIS ROBIN D. HARRIS MICHAEL ESTRADA EFRAT M. COGAN LAURENCE S. WIENER DAVID P. WAITE CHRIST HOGIN STEVEN R.'ORR DEBORAH R. HAKMAN SCOTT K SHINTANI MICHAEL'G. COLANTUONO JACK 8. SHOLKOFF B. TILDEN KIM DARYL T. TESHIMA CHRISTINA R. MELTZER BIRGITA. HUBER S. ALAN RAY RUBIN D. WEINER SASKIA T. ASAMURA ADAM F. STREISAND TAYLORL FITZMAURICE DAVID M. FLE:SHMAN KAYSER O. SUME STEVEN L HOLCOMB June 10, 1992 CONFIDENTIAL THIS MATERIAL IS SUBJECT TO THE ATTORNEY -CLIENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. DO NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBLICLY ACCESSIBLE RECORDS. Mr. Craig Nealis City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, California 90274 RICHARD RICHARDS (1916-1988) THIRTY-EIGHTH FLOOR 333 SOUTH HOPE STREET LOS ANGELES, CALIFORNIA 90071-1469 (213) 626-8484 TELECOPIER (213) 626-0078 OF COUNSEL RICHARD H. DINEL 1911056 OUR FILE NUMBER R6980-00001 Re: HCD Comments -on 1991 Housing Element of the City's General Plan Dear Mr. Nealis: Mike Jenkins has asked me to review the recent letter from the State Department of Housing and Community Development (HCD) which critiques the City's recently adopted housing element. I write to set out my comments. HCD's criticisms are not surprising, and because they raise no new issues, we conclude they do not warrant further revisions to the element. HCD's conclusion that the resolution by which the City Council approved the element "does not adopt findings as required by [Government Code Section 65585(f)(2)]" is incorrect. HCD apparently did not have access to the resolution and the exhibit to it which set out the City's findings regarding HCD's comments on the draft element. I note that Lola Ungar has since provided HCD with these materials and that further comments from the state agency may be forthcoming. As we advised the Planning Commission and City Council late last year, certification of the City's Housing Element by HCD would have been quite welcome, but did not appear likely. The predicted result has occurred. Nonetheless, subject to the caveats stated in my November 15, 1991 memo to the Commission, we believe the element can be defended on the basis of the existing record. Although we should review any further comments issued by HCD, for now, we recommend no furtheraction- with respect to the RICHARDS, WATSON & GERSHON CONFIDENTIAL Mr. Craig Nealis June 10, 1992 Page 2 THIS MATERIAL IS SUBJECT TO THE ATTORNEY -CLIENT AND/OR THE ATTORNEY WORK PRODUCT PRIVILEGES. DO NOT DISCLOSE THE CONTENTS HEREOF. DO NOT FILE WITH PUBLICLY ACCESSIBLE RECORDS. housing element until the next Regional Housing Needs Assessment is released in draft form in mid -1993. Of course, if the City Council wishes to respond to HCD's comments by revising the element to provide for housing on the school site or otherwise to depart from policy commitments which do not promote the development of low cost housing, our capacity to defend the element could be significantly enhanced. If you or the City Council have any questions about this matter, please do. not hesitatetocall mc or Mike. Very truly yours, Michael G. Colantuono cc: Michael Jenkins, Esq. MGC:mgc 1911056