HomeMy WebLinkAbout5. 11-24-21 Conf Ltr from HCD for receipt of Draft HE submitted 9.28.21TATF OF CAI IFORNIA IA RUSIN SS CONS FR C R\ S A HOLISINC ACEhCY AVIN NEWSOM Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500 is
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
w .hcd.ca.aov
November 24. 2021
Eric Ceja, Deputy Director
Palm Desert Planning Division
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Dear Eric Ceja:
RE: City of Palm Desert's 6th Cycle (2021-2029) Draft Housing Element
Thank you for submitting the City of Palm Desert's (City) revised draft housing element
received for review on September 28, 2021. Pursuant to Government Code section
65585, subdivision (b), the California Department of Housing and Community
Development (HCD) is reporting the results of its review.
The draft element addresses many statutory requirements described in HCD's June 7,
2021 review; however, revisions will be necessary to comply with State Housing Element
Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions
needed to comply with State Housing Element Law.
As a reminder, the City's 6th cycle housing element was due October 15, 2021. As of
today, the City has not completed the housing element process for the 6th cycle. The
City's 5th cycle housing element no longer satisfies statutory requirements. HCD
encourages the City to revise the element as described above, adopt, and submit to
HCD to regain housing element compliance.
To remain on an eight -year planning cycle, the City must adopt its housing element
within 120 calendar days from the statutory due date of October 15, 2021 for Southern
California Council of Government (SCAG) localities. If adopted after this date,
Government Code section 65588, subdivision (e)(4) requires the housing element be
revised every four years until adopting at least two consecutive revisions by the statutory
deadline. For more information on housing element adoption requirements, please visit
HCD's website at: http://www.hcd.ca.gov/community-development/housing-
Public participation in the development, adoption and implementation of the housing
element is essential to effective housing planning. Throughout the housing element
Eric Ceja, Deputy Development Services Director
Page 2
process, the City should continue to engage the community, including organizations that
represent lower -income and special needs households, by making information regularly
available and considering and incorporating comments where appropriate.
Several federal, state, and regional funding programs consider housing element
compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill
(SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD's
Affordable Housing and Sustainable Communities programs; and HCD's Permanent
Local Housing Allocation consider housing element compliance and/or annual reporting
requirements pursuant to Government Code section 65400. With a compliant housing
element, the City will meet housing element requirements for these and other funding
sources.
We are committed to assisting the City in addressing all statutory requirements of State
Housing Element Law. If you have any questions or need additional technical assistance,
please contact John Buettner, of our staff, at iohn.bueffner(�i,)hcd.ca.gov.
Sincerely,
WW t 7
Paul McDougall
Senior Program Manager
Enclosure
APPENDIX
CITY OF PALM DESERT
The following changes are necessary to bring the City's housing element into compliance with
Article 10.6 of the Government Code. Accompanying each recommended change, we cite the
supporting section of the Government Code.
Housing element technical assistance information is available on HCD's website at
http //www hcd ca gov/community-development/housing-element/housing-element-memos shtml.
Among other resources, the housing element section contains HCD's latest technical assistance
tool, Building Blocks for Effective Housing Elements (Building Blocks), available at
http //www hcd ca gov/community-development/building-blocks/index shtmi and includes the
Government Code addressing State Housing Element Law and other resources.
A. Housing Needs. Resources, and Constraints
1. Affirmatively furthering] fair housing in accordance with Chapter 15 (commencing with
Section 8899.50) of Division 1 of Title 2... shall include an assessment of fair housing in
the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).)
Disproportionate Housing Needs and Displacement Risk: The element was revised to
include an analysis of cost burden, but it should also address patterns and trends
related to overcrowding and displacement risk.
Local Data and Knowledge and Other Relevant Factors: The revised element
generally does not address this requirement. The element must include local data,
knowledge, and other relevant factors to discuss and analyze any unique attributes
about the City related to fair housing issues. The element should complement federal,
state, and regional data with local data and knowledge where appropriate to capture
emerging trends and issues, including utilizing knowledge from local and regional
advocates and service providers. Also, the element must include other relevant factors
that contribute to fair housing issues in the jurisdiction. For instance, the element can
analyze historical land use and investment practices or other information and
demographic trends.
Contributing Factors: The element was revised to provide a more concise summary of
contributing factors, goals, and programs to address the factors. However, the
contributing factors should be updated and prioritized based on the complete analysis
of the factors described above.
Site Inventory: The revised element includes a discussion stating that the City is
designated as highest resourced and that sites are near a variety of resources and
amenities. However, sites identified to accommodate the lower -income regional
housing need allocation (RHNA) appear concentrated in the Town Center
Neighborhood in the northern part of the City. The element must evaluate this
concentration and include discussion of whether the sites inventory improves or
exasperates existing patterns.
City of Palm Desert's 6t" Cycle Draft Housing Element Page 1
November 24. 2021
Goals Priorities Metrics, and Milestones: Goals and actions must significantly seek to
overcome contributing factors to fair housing issues and should be revised based on the
outcomes of a complete analysis. Currently, the element identifies program(s) to
encourage and promote affordable housing; however, most of these programs do not
appear to facilitate any meaningful change nor address AFFH requirements.
Furthermore, the element must include metrics and milestones for targeting significant
fair housing results. For more information, please see HCD's guidance at
https://www.hcd.ca.gov/community-development/affh/index.shtm
2. Include an analysis and documentation of household characteristics, including level of
payment compared to ability to pay, housing characteristics, including overcrowding,
and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).)
Housing Stock Condition: The draft element was revised to state that the City reviewed
Code Compliance Division case records for the period of 2014-2021 and found no
open cases or citations issued for health and safety violations. However, the element
still must estimate the number of units in needs of rehabilitation and replacement.
3. An inventory of land suitable and available for residential development, including
vacant sites and sites having realistic and demonstrated potential for redevelopment
during the planning period to meet the locality's housing need for a designated income
level, and an analysis of the relationship of zoning and public facilities and services to
these sites. (Gov. Code, § 65583, subd. (a)(3).)
The City has a RHNA of 2,790 housing units, of which 1,135 are for lower -income
households. To demonstrate the adequacy of these sites and strategies to
accommodate the City's RHNA, the element must be revised to include complete
analyses on the following:
Progress in Meeting the RHNA: The revised element states that 310 units for Site DD
will be affordable to moderate -income units but must also demonstrate affordability
based upon actual or anticipated sale prices or rents.
Sites Inventory: The revised draft element provides data on the City's site inventory in
Table III-47. However, the data is insufficient to determine the adequacy of all sites
since the inventory aggregates available sites by Map Keys and APNs (Sites E, LL, A,
D, F, P, QQ, and T). The inventory must provide a parcel listing of sites by APN, along
with parcel size, zoning, general plan designation, describing existing uses for any
nonvacant sites and include a calculation of the realistic capacity of each site.
Additionally, pursuant to Government Code section 65583.3, subdivision (b), the City
must utilize standards, forms, and definitions adopted by HCD when preparing the sites
inventory. Please see HCD's housing element webpage at
httos //www hcd ca gov/community-development/housing-elemenVindex shtml for a
copy of the form and instructions. The City can reach out to HCD at
sitesinventoryahcd.ca.gov for technical assistance. Please note, upon adoption of the
housing element, the City must submit an electronic version of the sites inventory with
its adopted housing element to sitesinventory a.hcd.ca.gov.
City of Palm Desert's 6th Cycle Draft Housing Element Page 2
November 24, 2021
Zoning for Lower -Income Households: Pursuant to Government Code section
65583.2, subdivision (c)(3)(A) and (B), the element must identify sites with zoning
and densities appropriate to encourage and facilitate the development of housing
for lower -income households based on factors such as market demand, financial
feasibility, and development experience within zones. For communities with
densities that meet specific standards (at least 30 units per acre for Palm Desert),
this analysis is not required (Section 65583.2(c)(3)(B)). While the revised draft
element provides some information on recent project densities, it does not discuss
factors such as market demand or financial feasibility to support the densities
identified on Table III-47. In addition, it appears that Site A, Site PP and Site QQ
only allow a maximum of 10-15 units per acre but are being identified to
accommodate the RHNA for lower -income households. As stated in the element,
affordable housing projects in the City have had densities ranging from 15-28 units
per acre. The element does not provide sufficient evident that densities in in the10-
15 range provide the financial feasibility needed to support housing affordable to
lower -income households and should not identify sites within this density range as
appropriate for the lower -income housing need. The element could reassign this
capacity to the moderate -income housing need, or the City could rezone to higher
density to continue utilizing those sites to accommodate the RHNA for lower -
incoming households.
Large Sites: Table III-47 includes sites larger than ten acres and states that these
sites are not constrained from development based on proposed projects on ten acres
or more being developed. While the draft element was slightly revised to account for
densities and to add the Carlos Ortega Villas project (p. III-87), the analyses must
demonstrate developments of equivalent size were successfully developed during the
prior planning period for an equivalent number of lower -income housing units as
projected for these large sites or provide other evidence that the site is adequate to
accommodate lower -income housing. (Gov. Code, § 65583.2, subd. (c)(2)(A).)
Additionally, the analysis should state whether larger sites such as Site A and Site F
have the potential for being split and, if so, the element should contain a program or
programs to facilitate the splitting of larger lots.
Small Sites: The initial draft element identified sites at less than a half -acre and
included several sites that appear to require consolidation. The revised draft element
now states that site LL is City -owned and will be developed for 28 units and that the
City will consolidate the lots when development occurs. However, the element still
requires analysis to demonstrate the lot consolidation potential of other sites within the
inventory such as Site D, Site PP, Site QQ, and Site T. For example, the analysis
should describe the City's role or track record in facilitating small -lot consolidation by
affordability level, policies or incentives offered or proposed to encourage and facilitate
lot consolidation, conditions rendering parcels suitable and ready for redevelopment,
recent trends of lot consolidation, and information on the owners of each aggregated
site.
4. An analysis of potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the types of
City of Palm Desert's 6"' Cycle Draft Housing Element Page 3
November 24, 2021
housing identified in paragraph (1) of subdivision (c), and for persons with disabilities
as identified in the analysis pursuant to paragraph (7), including land use controls,
building codes and their enforcement, site improvements, fees and other exactions
required of developers, and local processing and permit procedures... (Gov. Code, §
65583, subd. (a)(5).)
Processinq and Permit Procedures: While the draft element was revised to describe
approval procedures for the architectural review process, the element must still
describe approval procedures for the Precise Plan review including a description of the
approval bodies. The analysis must be revised to evaluate the Precise Plan processing
and permit procedures and their impacts as potential constraints on housing supply
and affordability.
B. Housing Programs
Include a program which sets forth a schedule of actions during the planning period,
each with a timeline for implementation, which may recognize that certain programs
are ongoing, such that there will be beneficial impacts of the programs within the
planning period, that 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, the provision of
regulatory concessions and incentives, and the utilization of appropriate federal and
state financing and subsidy programs when available. The program shall include an
identification of the agencies and officials responsible for the implementation of the
various actions. (Gov. Code, § 65583, subd. (c).)
To address the program requirements of Government Code section 65583,
subdivision (c)(1-6), and to facilitate implementation, programs should include: (1) a
description of the City's specific role in implementation; (2) definitive implementation
timelines; (3) objectives, quantified where appropriate; and (4) identification of
responsible agencies and officials. Programs to be revised include the following:
General: The revised element continues to include programs without specific metrics or
objectives. Programs must demonstrate that they will have a beneficial impact within
the planning period. Beneficial impact means specific commitment to deliverables,
measurable metrics or objectives, definitive deadlines, dates, or benchmarks for
implementation.
Program 5.0 (CDBG for Homelessness): The Program should be revised to state how
the City will encourage organizations to apply and the role the City plays in delivering
the funds.
Program &A (Housing Overlay and ADUs): The Program should be revised to state
what standards are being maintained and if there are any potential revisions to the
zoning code that need to be implemented. If revisions are needed to comply with state
law, then the program should commit to a definitive timeframe for implementation of
those revisions.
City of Palm Desert's 6' Cycle Draft Housing Element Page 4
November 24, 2021
Program 11.B (Transit Agency): The Program should be revised to clarify how the City
will coordinate and specific actions the City will take to ensure that transit is and will be
available to residents with limited access.
Identify actions that will be taken to make sites available during the planning period
with appropriate zoning and development standards and with services and facilities to
accommodate that portion of the city's or county's share of the regional housing need
for each income level that could not be accommodated on sites identified in the
inventory ... ... without rezoning, and to comply with the requirements of Government
Code section 65584.09... (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding A-3, the element does not include a complete site analysis,
therefore, the adequacy of sites and zoning were not established. Based on the results
of a complete sites inventory and analysis, the City may need to add or revise
programs to address a shortfall of sites or zoning available to encourage a variety of
housing types. In addition, the element should be revised as follows:
The housing element shall contain programs which assist in the development of
adequate housing to meet the needs of extremely low-, very low-, low- and moderate -
income households. (Gov. Code, § 65583, subd. (c)(2)).
Program 1.A (Affordable Housing Developers): This Program should be revised with
specific timeframes (e.g., month and year) and benchmarks for the Village (KK) and
Millennium (F) projects. The Program should be revised to provide specific timeframes
and benchmarks for these developments and monitor these developments.
Program 1.13 (Public/Private Partnerships): The program should be revised to monitor
these developments and offer specific schedules for these monitoring activities.
Additionally, the Program should be revised to provide back-up measures if any
projects are subsequently denied.
Program 1 C (Encourage Housing for Lower -income Households): The Program should
be revised to monitor these developments and offer specific schedules for these
monitoring activities. The Program should also offer a definitive timeline other than the
entire planning period and back-up measures if any projects are subsequently denied.
Program 9.A (Density Bonus): The Program should be revised with a specific date for
completing amendments.
4. Address and, where appropriate and legally possible, remove governmental and
nongovernmental constraints to the maintenance, improvement, and development of
housing, including housing for all income levels and housing for persons with
disabilities. The program shall remove constraints to, and provide reasonable
accommodations for housing designed for, intended for occupancy by, or with
supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).)
As noted in Finding A4, the element requires a complete analysis of potential
governmental constraints. Depending upon the results of that analysis, the City may
City of Palm Desert's 61" Cycle Draft Housing Element Page 5
November 24, 2021
need to revise or add programs and address and remove or mitigate any identified
constraints. In addition:
Program 1.H (SB 35): The Program should be revised to offer a definitive date for
implementation of the SB 35 requirements (e.g., June 30, 2022).
5. Promote and affirmatively further fair housing opportunities and promote housing
throughout the community or communities for all persons regardless of race, religion,
sex, marital status, ancestry, national origin, color, familial status, or disability, and
other characteristics protected by the California Fair Employment and Housing Act
(Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and
any other state and federal fair housing and planning law. (Gov. Code, § 65583, subd.
(c)(5)).
As noted in Finding At, the element must include a complete analysis of AFFH. Based
on the outcome of that analysis, the element must add or modify programs.
Additionally, programs and actions need to be significant, meaningful, and sufficient to
overcome identified patterns of segregation and AFFH.
C. Public Participation
Local governments 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 element
shall describe this effort. (Gov. Code, § 65583, subd. (c)(8).)
The draft element includes a revised summary of the public participation process (page III-93),
which now states that the City held additional study sessions. However, it does not
demonstrate that diligent efforts were made to involve all economic segments of the
community in the development of the housing element, especially low- and moderate -income
groups, nor does it address the availability of materials in multiple languages, surveys, or other
efforts to involve such groups and persons in the element throughout the process. In addition,
HCD understands the City made the element available to the public in June of 2021 prior to an
additional study session on September 9, 2021. The element also states that following the
September study session the revised draft element was posted on the City's website.
However, the element should indicate when the revised draft was made available for
comments prior to submitting to HCD on September 28, 2021, if comments were received, and
how those comments were incorporated.
City of Palm Desert's V1 Cycle Draft Housing Element Page 6
November 24, 2021