REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  September  18, 2018
CATEGORY:  Scheduled Hearings - Resource Management-12.

SUBJECT:

Resolution approving the 2014-2019 Shasta County Housing Element Update, General Plan Amendment GPA13-003

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Paul A. Hellman, Director of Resource Management (530) 225-5789

STAFF REPORT APPROVED BY:  Paul A. Hellman

RECOMMENDATION

Take the following actions regarding General Plan Amendment GPA13-003, to submit the Draft 2014-2019 Shasta County Housing Element Update to the California Department of Housing and Community Development (HCD): (1) Conduct a public hearing; (2) close the public hearing; and adopt a resolution: (a)  finding that GPA13-003 is not subject to the California Environmental Quality Act (CEQA) in accordance with the provisions of Government Code section 65759 (CEQA does not apply to any action necessary to bring an agency’s general plan or relevant mandatory elements of the plan into compliance with any court order or judgment); and (b) directing the Resource Management Department to submit the Draft 2014-2019 Shasta County Housing Element to HCD for review and comment pursuant to Government Code section 65754(a).

SUMMARY

The State of California requires each city and county to adopt a General Plan consisting of at least seven mandatory elements:  Land Use, Open Space, Conservation, Safety, Noise, Transportation, and Housing. Because housing availability is a statewide concern, unlike other elements of the General Plan the Housing Element must be periodically updated in accordance with a timeline prescribed by the State. State requirements for housing elements are more detailed and exacting than for any other general plan elements. The Draft 2014-2019 Shasta County Housing Element Update (Update) was prepared in accordance with all State requirements and addresses the County’s housing needs as defined by the State for the 2014-2019 planning period.

The Update is the County’s major policy document regarding the development of housing and housing conditions in the unincorporated area and takes into consideration current demographics, housing needs by income group, housing stock and conditions, housing resources, and governmental and non-governmental constraints to housing maintenance, improvement, and development. The County is also required to assess how it is addressing its Regional Housing Needs Allocation (RHNA), as prescribed by the State Department of Housing and Community Development (HCD).

The Shasta County Board of Supervisors must independently approve the Update and HCD must certify it. Once approved and certified, the Update for the 2014-2019 planning period will become part of the County’s General Plan. A previous draft of the Update was brought before the Planning Commission on May 11, 2017, and was subsequently submitted to HCD for review. A response letter received by HCD on July 18, 2017, required significant revisions. The proposed revised Update has been completed in response to the letter received from HCD, the terms of a court-ordered stipulated agreement, comments received from the public as well as changes in State law since 2014. A number of key changes are included in this revised draft in order to bring the County’s housing element into compliance with State law. These changes are further explained in the Background and Discussion section of the attached August 23, 2018, Staff Report to the Planning Commission.

After holding a public hearing on August 9, 2018, the Planning Commission continued GPA13-003 to a special meeting held on August 23, 2018. At the special meeting, the commission conducted a public hearing and then took action recommending that, with a recommended change to the draft version, the Board of Supervisors approve GPA13-003.

The Planning Commission resolution is attached for the Board’s consideration.

DISCUSSION

As required by State law, the Update identifies residential sites adequate to accommodate a variety of housing types for all income levels; analyzes governmental and non-governmental constraints to housing maintenance, improvement, and development; addresses conservation and improvement of the condition of the existing affordable housing stock; and outlines policies to promote housing opportunities for all persons.  The Update consists of five main sections and ten supporting appendices. Refer to the Planning Commission Staff Report for a summary of changes included in the Update and refer to the Planning Division website for the full text of the Update and Appendices at:

https://www.co.shasta.ca.us/index/drm_index/planning_index/plng_general_plan/2014-2019-draft-housing-element

Shasta County is not required to construct or ensure that others construct the housing units prescribed by the RHNA process.  Rather, the County must ensure that it is possible for these units to be built by others based on market conditions, demand and available funding, by zoning sufficient land to accommodate the RHNA, and through the implementation of goals, policies and programs of the housing element aimed at reducing constraints to the development of affordable housing. Demonstrating affordability for all income levels is achieved with a default density assigned by the State (minimum of 20 dwelling units per acre). The default density accounts for economies of scale in which case development that would theoretically allow for multi-family housing units to be built and offered on the market without any subsidies or financing assurances and yet be affordable to all income levels.

Pursuant to Government Code Section 65584.09, the County is required to rezone to the default density for the previously identified unmet need carried over from the 2009-2014 Housing Element of 783 very low income units. Beyond rezoning for these 783 units, the County must ensure that there is enough land adequately zoned for the unaccommodated need combined with the current cycle RHNA. With other data analyzed and factored in, this amounts to an additional 323 (245 very low-income units and 78 low-income units) units that must be accommodated through rezoning to the default density.

The Update concludes that, with the associated rezoning efforts (GPA18-0001, GPA18-0002, GPA18-0003, ZA18-0002, ZA18-0003 and ZA18-0004), and the program to rezone enough land to accommodate housing needs of all income levels, the County has an adequate number of sites to meet the 2014-2019 RHNA combined with the previously unaccommodated need from the 2009-2014 housing element cycle.

Environmental Determination – This project is not subject to the California Environmental Quality Act (CEQA) in accordance with the provisions of Government Code section 65759, which establish, in relevant part, that CEQA does not apply to any action necessary to bring an agency’s general plan or relevant mandatory elements of the plan into compliance with any court order or judgment. In January 2018, Legal Services of Northern California and The Public Interest Law Project jointly filed a lawsuit to compel the County to bring its Housing Element into compliance with State Law and meet the unaccommodated Regional Housing Needs Allocation (RHNA) assigned by the Department of Housing and Community Development.  A judgment was rendered by the Shasta County Superior Court for a Stipulation for Judgment in accordance with the terms of a settlement agreement that includes actions that must be completed by the County within a defined timeline. As a result of this judgment, in accordance with Government Code section 65759, CEQA does not apply to GPA13-003. However, the County is required to prepare an initial study to determine the environmental effects of the proposed project. The Planning Division has prepared an initial study in accordance with Government Section 65759, and determined that the project would not have a significant effect on the environment. The Housing Element is a policy document which does not approve any actual development projects which could have an effect on the environment.

If approved, the 2014-2019 Housing Element Update will be forwarded to HCD for a 45-day review and comment period pursuant to Government Code section 65754(a).  Any required revisions, if necessary, will be made based on these HCD comments and the Housing Element will be submitted to the Planning Commission and Board of Supervisors for final adoption. Following final adoption, the Housing Element will be sent to HCD for certification.

ALTERNATIVES

The following alternatives are available:

1.         Do not approve the Draft 2014-2019 Housing Element Update; failure to approve a housing element that meets State requirements would jeopardize the County’s ability to meet requirements set forth by the settlement agreement as a result of the court-ordered Stipulation for Judgment and could also render the County ineligible for certain housing-related grant programs.

2.         Modify the Draft 2014-2019 Housing Element Update; substantive modifications could potentially require referral back to the Planning Commission and delay review of the revised draft by HCD. A delay could foreclose the County’s ability to pursue grant applications that are due in December and could cause the County to violate requirements of the settlement agreement as a result of the court-ordered Stipulation for Judgment;

3.         Continue the public hearing to request additional specific information.

OTHER AGENCY INVOLVEMENT

The preparation of the Draft 2014-2019 Housing Element Update was a collaborative effort involving several Shasta County departments along with private and public agencies which have a direct interest in community development and housing programs and the development of affordable and adequate housing for various income households and special needs groups. For a complete list of participants, see Appendix D.  This revised draft incorporates comments and guidance from HCD, comments from the public, and the terms of the court-ordered settlement agreement. Staff has also prepared brief responses to comments received by the County on the Draft 2014-2019 Housing Element Update, see Appendix F.

FINANCING

The timely adoption and certification of the Draft 2014-2019 Housing Element Update will maintain the County’s eligibility for a number of housing-related grants. Because the County is behind schedule, it is important to complete the public review and adoption process as soon as possible and before the next round of grant applications for housing-related funding come due in December 2018.