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HomeMy WebLinkAboutCD Housing Policies Priorities Report____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 01/21/2020 Disposition: Accepted report Agenda Item No: 6.a Meeting Date: January 21, 2020 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community Development Prepared by: Paul Jensen (AH, DO, EG, IK) Community Development Director City Manager Approval: ______________ TOPIC: HOUSING POLICIES PRIORITIES REPORT SUBJECT: INFORMATIONAL REPORT ON THE CHALLENGES TO APPROVING AND DEVELOPING HOUSING EXECUTIVE SUMMARY: At the September 3, 2019 City Council meeting, staff was directed to host several public housing workshops on proposed policies to address challenges to approving and developing housing. The purpose of these workshops was to gain a better understanding of the public’s view on the housing crisis, as well as to get feedback on the prioritization of the proposed policy actions. This report presents findings from two housing workshops held on November 3 and November 14, 2019. Additionally, this report presents staff recommendations for prioritization, timing, and future City Council actions on these policies. A summary of these staff recommendations can be found in Attachment 1. The action before City Council is to consider accepting this informational report and the corresponding staff recommendations for prioritization, timing, and future City Council actions on these policies. RECOMMENDATION: Accept the report and provide direction as recommended by staff. BACKGROUND: On August 20, 2018, the City Council was presented a comprehensive, informational report on housing. In response to the housing report information, the City Council directed staff to follow-up on four specific housing topics and issues: renter regulations, Short-Term Rentals, housing for an aging population, and challenges to the approval and development of housing. Over the last sixteen (16) months, the City Council has created a Short-Term Rental Program and approved sweeping renter regulations including mandatory mediation, source of income discrimination protection, and just cause eviction ordinances. On September 3, 2019, City staff presented an informational report on challenges to housing development. The report presented 11 key challenges pertaining to the approval and development of housing in San Rafael. Moreover, this report identified 13 recommended measures to address these SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 challenges, which are described in more detail below. As previously reported, some of the measures are currently being implemented, some are underway, and some measures require further study and action by the City Council. Also, at the September 3 City Council meeting, staff was directed to host public housing workshops on proposed policies to address challenges to approving and developing housing. The purpose of these workshops was to gain a better understanding of the public’s view on the housing crisis, as well as to get feedback on the prioritization of the proposed policy actions. The City hosted two housing workshops, which were attended by the City Council and the public. These workshops exposed the public to issues surrounding the housing crisis and generated feedback from both the public and City Council. On November 3, 2019, the City hosted Housing Workshop #1 to discuss housing policy. The workshop, held at the BioMarin Corporate Center, provided context on the housing crisis and discussed potential regulatory and zoning-related actions the City could take to streamline the process for housing approval and construction. Approximately 40 people attended the workshop. The polling results from the workshop (Table 1) revealed that a majority of attendees were in favor of streamlining the housing development process. Table 1. Housing Workshop #1 Survey Results On November 14, 2019, City staff hosted Housing Workshop #2 to discuss housing financing. This workshop, held in the City Council Chambers, provided an overview of project-level development financing and an opportunity to discuss potential funding and financial tools the City could utilize to incentivize housing development. It also included a review of inclusionary housing policies and use of the City’s Affordable Housing Trust Fund. Approximately 35 people were in attendance. Data from the polls (Table 2) revealed that a majority of attendees were in favor of streamlining and reducing costs associated with current development processes. Table 2. Housing Workshop #2 Survey Results Strongly Disagree/ Disagree Neutral Strongly Agree/ Agree The City should consider changes to the Design Review Board to streamline the project review process 13%6%81% The City should make it easier for “infill” projects to receive a CEQA exemption.22%6%72% The City should reduce the requirements for site-specific technical studies for housing projects.28%13%59% The City should allow for modest increases in building height and eliminate residential density limits as part of the form-based code being developed in the Downtown Precise Plan.19%10%71% The City should provide affordable housing projects a faster process to receive approvals.16%16%68% The City should make it harder to file a non-substantive appeal.29%13%58% Strongly Disagree/ Disagree Neutral Strongly Agree/ Agree The City should adjust its Inclusionary Housing requirement 20%0%80% The City should allow in-lieu fee payments for a portion of a project’s Inclusionary Housing requirement 20%3%77% The City should provide a menu of alternative options for developers to meet their affordable housing requirements 3%0%97% The City should reduce, temporarily waive, or defer payment of development/impact fees 7%3%90% The City should offer Air Rights on City-owned Property for Housing Development Projects 10%0%90% SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 The polling results have been considered as one aspect of data in the recommended prioritization of the policy actions discussed below. ANALYSIS: This section provides a detailed discussion of the staff recommendations for prioritization, timing, and future City Council actions for the policy actions presented at the September 3 City Council meeting. A summary of these staff recommendations can be found in Attachment 1. A. Housing Policies: Currently Underway Several of the recommended policies presented in the September 3, 2019 City Council report are currently being implemented or are underway. Policy 1: Continue the “Planning Commission First” review to streamline the Planning process. The Design Review Board (DRB) typically provides the first public forum for public comment on a project. Therefore, it is common for the public to want to comment on higher-level policy topics that are outside the DRB’s purview and purpose (e.g., concerns over land use, density, bulk/mass, environmental issues). As noted in the September 3 report, in two recent housing projects (i.e. Northgate Walk and 703 3rd Street), the order of the public forum review was reversed. In shifting the order, the Planning Commission conducted the first public forum on these projects as a “study session.” The study session forum provided an opportunity for the Planning Commission to address the major policy and project issues raised by the public. Although the Planning Commission comments in this forum are non-binding, this review approach provided the applicants of the two projects with high level support and feedback on density, project bulk and size, and environmental review. The Planning Commission’s support and direction thus allowed the DRB to focus on the details of the project design. Staff Recommendation: No formal action is necessary. Unless modified by City Council, staff will maintain the current policy of a Planning Commission study session as first public forum on development projects, rather than the Design Review Board. Policy 2: Support Form-Based Code for Downtown Precise Plan. A Downtown Precise Plan (DPP) is currently under way with the goal to adopt this plan concurrent with the adoption of San Rafael General Plan 2040 (late Spring 2020). Downtown provides the greatest opportunity in San Rafael (and the County) for development, particularly housing development, for numerous reasons. To aide in this development, the DPP and supportive Environmental Impact Report are being prepared which will include a Form Based Code for the DPP Area. Unlike conventional zoning which provides a list of development standards and requirements, a form- based code sets general site parameters for allowable building height and building floor area (FAR). A form-based code does not include a prescribed residential density cap/limit. The general parameters are accompanied by supportive graphics and a menu of architectural styles that are appropriate for the Downtown setting and character. This approach allows a property owner/developer the flexibility to “work within an allowable box” without being constrained by density. This code approach can also streamline the design review process if it is structured to provide a menu of acceptable architectural styles that can be selected by the developer. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 Staff Recommendation: No formal action is necessary, however staff requests that the City Council confirm their support for the direction of a form-based code as part of the acceptance of this report. Policy 3: Streamline CEQA/Environmental Review Process & Practices. San Rafael contains very few remaining undeveloped sites that have potential for development. Nearly all new development opportunities in San Rafael are urban in-fill (e.g., Downtown, Northgate, some areas of Southeast San Rafael). Environmental review for most new infill development projects can be streamlined and minimized by relying on the use of exemptions (e.g., “categorical exemptions”) that are permitted under the CEQA Guidelines. While a CEQA categorical exemption is common on small infill projects, the Planning Division staff has more recently recommended a categorical exemption for larger housing projects. Two, large housing projects that have benefited from this approach are: Northgate Walk (136 units at 1005-1010 Northgate Drive); and 703 3rd Street (120 residential units). Both projects qualified for CEQA Guidelines Categorical Exemption 15332 in that they are: a) on sites that are developed and located near transit; b) consistent with the General Plan 2020 and zoning; and c) supported by technical studies. The use of the CEQA categorical exemption for both projects significantly reduced the processing cost for the developer/applicant and eliminated several CEQA-prescribed steps that involve many months of processing time. Please note that the CEQA infill exemption may not be appropriate or applicable to all infill projects. CEQA review and compliance should be reviewed on a case-by-case basis in consultation with the City Attorney’s Office. Staff Recommendation: No formal action is necessary. Unless modified by City Council, staff will continue the practice of using the CEQA exemptions, where appropriate and practical, to streamline the CEQA/environmental review process for housing projects. Policy 4: Reduce Requirements for Certain Technical Studies. It is common practice and policy for the City to require the submittal of supportive technical studies with a new development application. The extent and type of technical studies vary by project type, size, location, and design. Issues such as geology/soil conditions, biological resources, traffic, historic resources, and drainage are critical and integral to the design and review of the development project. However, there are certain topic areas that trigger technical studies that are costly and often result in delays in the process; traffic and historic resources fall in this category. Where possible, staff has attempted to reduce (or eliminate) the need for site-specific technical reports, which would reduce applicant cost and processing time. Staff Recommendation: No formal action is necessary. Unless modified by City Council, staff will continue to minimize requirements for the preparation of technical studies when appropriate and warranted. Policy 5: Establish a Streamlined Pre-Application “Concept” Review Process. The City’s current Pre-Application review process is recommended for most in-fill and large housing projects. This process provides the applicant with early feedback from City departments and services. The Pre-Application process requires a filing fee of $1,191.00 and the submittal of schematic drawings and concept plans. The Pre-Application is discussed by City staff at the bi-weekly Development Coordinating Committee (DCC) meeting. Applicants do not attend the DCC meeting unless it is requested. A summary of Pre- Application comments from all City staff are formally provided in writing by the Planning Division. The turnaround time for this process averages 30-60 days. Staff recommends that the fee be waived for all housing projects and that a more informal review be offered to all applicants. This informal review would give verbal comments/feedback by City staff rather SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 than formal written comments. The Community Development Department has tested this less formal approach on several, recent housing projects. This approach has been successful at providing quicker City staff feedback to the applicant. The turnaround time for this process is estimated at 7-14 days (as the meetings are held weekly). Staff Recommendation: Direct staff to continue with streamlined, Pre-Application “concept review” process for housing projects with no fee. This process would not replace the existing Pre- application/Conceptual Review process, which is more comprehensive. B. Housing Policies: Ready for City Council Action Policy 6: Changes to Administration of the Affordable Housing Trust Fund. The Affordable Housing In-Lieu Fee Fund was created to increase the stock of permanently affordable housing units in the City of San Rafael. The Affordable Housing In-Lieu Fee Fund provides a local funding source for financial and technical assistance to help affordable housing developers produce and preserve affordable housing. Currently, the City does not have existing policies and procedures for awarding Affordable Housing Trust Fund monies across competing requests. As such, staff recommends that the City Council formalize a policy for the use of the Affordable Housing In-Lieu Fee Fund as San Rafael’s primary Affordable Housing Trust Fund. Separate from the report, staff has prepared a resolution for immediate City Council consideration which establishes guidelines for the allocation of funding through the Affordable Housing Trust Fund. Staff Recommendation: Adopt proposed Affordable Housing Trust Fund policy resolution establishing policies and procedures for awarding trust fund monies. Staff has prepared this policy as a separate City Council Agenda item for consideration, also on tonight’s agenda. C. Housing Policies: Phase 1 Policies 7 and 8 below relate to the City’s affordable housing requirements (San Rafael Municipal Code (SRMC) Section 14.16.030). Staff anticipates actions for these polices would be prepared collectively with amendments to the inclusionary housing requirements. Policy 7: Adopt Changes to Inclusionary Housing Requirements (Establish “Menu”). The structure of the City’s inclusionary housing requirements is now over 30 years old but remains an important tool in creating affordable housing while also ensuring sustainable mixed-income communities. However, rigid inclusionary requirements limit the flexibility needed by developers to finance housing developments. In responding to the current housing crisis, numerous cities in California have revisited their inclusionary housing requirements to determine if these requirements are constricting the housing market. Key to this determination is understanding the depth (level of affordability) and breadth (percentage of affordable units) of affordability that optimizes the development of both affordable and market rate units. Staff recommends analyzing potential changes to the City’s inclusionary housing requirements including lowering or reducing the requirements, allowing payment of an in-lieu fee for a portion of the units, or conveyance of land or off-site units. In addition, this analysis would also include developing a potential menu of options for developers to meet the inclusionary housing requirement. The menu could offer, among others: off-site construction of inclusionary/BMR units; varying percentage requirements; varying depths/levels of affordability (e.g., moderate-income instead of low-income); varying time periods for which the units must be affordable (e.g., 30 years, 55 years); and providing other, defined public benefits. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 Staff Recommendation: Direct staff to return with an informational report on potential amendments to the City's Inclusionary Housing Requirement and Affordable Housing In-Lieu Fee and next steps. Policy 8: Adopt Changes to Affordable Housing In-lieu Fee. As discussed in Policy 7, as part of analyzing potential changes to the City’s inclusionary housing requirement, staff would also consider changes to the City’s existing Affordable Housing In-Lieu Fee policies. In-lieu fees are the most common alternative to an inclusionary housing requirement. In-lieu fees are paid into a trust fund which is then used to finance other affordable housing developments off-site. Currently, developers in San Rafael are only allowed to pay in-lieu fees for fractional units.1 However, many jurisdictions allow developers to satisfy a portion of their inclusionary housing requirement, not just the fractional units, by payment of an in-lieu fee. The City is also partnering with the County of Marin to prepare an update to the 2002 Residential Nexus Study and Commercial Linkage Fee Study used to set the in-lieu base fee amount. This base fee is adjusted annually to account for year-over-year increases in median sale prices and building costs. However, the base fee needs to be updated as housing issues, data, and costs have dramatically changed since 2002. This update will be funded by Senate Bill (SB) 2 Planning Grants and it is expected that this updated fee study will be completed within the next year. Staff Recommendation: Direct staff to return with an informational report on potential amendments and to the City's Inclusionary Housing Requirement and Affordable Housing In-Lieu Fee and next steps. Policy 9: Adopt “By-Right” Zoning for Affordable Housing Projects. As previously reported, the City has been awarded an SB 2 Planning Grant of $310,000 to pursue several planning efforts. One of the projects funded with this grant is for the City to develop a “by-right” zoning process for 100% affordable housing projects. “By-right” zoning limits the City’s discretion to reviewing a housing development project for compliance with a list of “objective planning and design standards.” This process is envisioned to amend and be applicable to the City’s High-Density Residential (HR1) zoning district in selected areas of the City. While the process would be applicable citywide in the HR1 District, the requested SB 2 funding includes a “pilot” project to implement this process. The pilot project is Homeward Bound’s new emergency shelter and 32-unit housing development proposed for 190 Mill Street. Staff Recommendation: Direct staff to return with a draft resolution establishing a "by right" planning process for affordable housing projects. The Homeward Bound pilot project and the “by right” planning process are anticipated to first be presented to the Planning Commission, followed by City Council for review and action. Policy 10: Proceed with completion and adoption of a new Accessory Dwelling Unit (ADU) Ordinance. Accessory Dwelling Unit 2 (ADU) activity has played a strong role in housing start-ups in the last three years. The City has been operating under the State regulations (model ordinance), which has been successful. In October 2019, Governor Newsom signed four significant housing bills specific to ADUs. The new legislation (effective January 2020), establishes dramatic changes to ADU regulations. These changes include, among others: a) a prohibition on requiring or imposing “owner occupancy” (through 2025); b) more streamlined permit processing deadlines; 1 For example, if the inclusionary/BMR requirement for the housing project is 4.25 units, the developer is required to build four BMR units on-site and pay the in-lieu fee to meet the balanced requirement of 0.25 units. Based on the current fee per unit, the fee charged for 0.25 units would be $86,000. 2 ADUs have historically been referred to as second units/second dwelling units, “in-law” units, “granny flats” SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 c) a prohibition on requiring the replacement of off-street parking spaces if an existing garage/carport is converted into an ADU; and d) allowing a single-family residential lot to establish one ADU and one JADU (Junior Accessory Dwelling Unit). A new ADU ordinance is required to be in compliance with this new State Legislation. Additionally, a new ADU ordinance would seek to address Community Development Department and Fire Department concerns about ADU allowances and regulations in hillside and fire-prone areas with challenged access. Staff Recommendation: Direct staff to return with a draft ADU ordinance addressing the recent changes in the State legislation and regulations/prohibitions in hillside and fire-prone areas with challenged access. A draft ordinance would require Planning Commission review followed by final City Council adoption. D. Housing Policies: Phase 2 Policy 11: Proceed with updating the City’s “Density Bonus” Ordinance. SRMC Section 14.16.030 sets forth the City’s affordable housing requirements. This section also includes very lengthy and complicated provisions for administering and approving a “density bonus.” Due to changes in State law, some of our local code provisions are onerous and obsolete. Additionally, while the City’s density bonus is above the State bonus cap of 35%, this additional bonus is fully discretionary and there is no specific guidance for City negotiation nor clear guidance as to what is expected of the developer. A comprehensive update of the density bonus provisions in SRMC Section 14.16.030 is recommended. The provisions and requirements need to be simplified and brought into compliance with the State law. The update should: a) establish clear parameters and requirements for density bonus requests that exceed 35%; and b) incorporate a floor area ratio (FAR) bonus provision for Downtown, should the Downtown Precise Plan eliminate the current density limits.3 Staff Recommendation: Direct staff to return with an updated draft Density Bonus ordinance. Policy 12: Consider Changes to the Design Review Board. As discussed in the September 3 report, at times DRB review of development projects can result in differing and conflicting opinions, which are frustrating to the applicant and the project architect. To address these concerns the City could consider potential changes to the structure and role of the DRB. These changes include: a) Eliminating the DRB and structuring the Planning Commission membership to include one or two design professionals to guide and advise the Commission at-large on design matters; b) Shifting the role of the DRB to a decision-making authority rather than an advisory body. The DRB would have review and approval authority over Environmental and Design Review Permits, while the Planning Commission would continue to serve as the decision-making authority on all land use, subdivision and legislative matters; and/or c) Appoint a DRB liaison to review smaller housing projects in-lieu of a review by the full DRB. In the event there are challenging design issues, the DRB liaison would have the discretion to refer the application to the full DRB for review at a noticed public meeting. 3 Signed by Governor Brown in 2018, SB 2372 establishes new legislation establishing a “floor area ratio” bonus for housing projects in areas/zones that are not regulated by a density limit. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8 Staff Recommendation: Direct staff to return with an informational report on potential changes to the structure and role of the DRB. Based upon the changes supported by the City Council, an ordinance amendment could then be prepared quickly for review by the Planning Commission and action by the City Council. E. Housing Policies: Phase 3 Policy 13: Reduce, Waive or Defer Payment of Development Impact Fees. The development and impact fees charged for new development have been identified as a significant factor in the financial feasibility of housing development. A fee study released by the State of California Department of Housing and Community Development (HCD) reports that local jurisdictions levy fees and exactions to help fund the expansion of infrastructure needed to support housing. State-imposed policies that restrict local taxes (e.g., Proposition 13) leave local jurisdictions with limited means of raising revenue for infrastructure, so there has been a local reliance on imposing development fees. The fee study findings focus on recommended measures to incentivize different housing development types, which include: a) changing the fee methodology to be based on housing unit size rather than a “per unit” charge; b) deferring the timing for payment; and c) waiving fees for Accessory Dwelling Units (ADUs). Staff recommends analyzing the potential impact of implementing the recommended changes from the State fee study. Major fees that could be impacted by any changes would include the Citywide Traffic Mitigation Fee, Construction Vehicle Impact Fee, Parkland Dedication Fee (for-sale residential development only) and Development Impact Fee. Staff Recommendation: Direct staff to prepare an informational report on potential changes to the payment of development impact fees. Policy 14: Support City/Developer Partnerships (e.g., Air Rights). As reported in the September 3, 2019 City Council report, City staff completed a Surface Parking Lot Air Rights Study - City of San Rafael assessing seven (7) Downtown San Rafael, City-owned sites. Staff finds that the air rights opportunity for the public parking lot sites is worthy of further study. The next steps for implementing this policy would involve a more in-depth assessment of the sites and a formal pro forma analysis. Required Action: Direct staff to prepare an information report providing an in-depth assessment and pro forma analysis of air rights use of the seven City parking lots. F. Housing Policies: On-Hold Policy 15: Raise Appeal Fee and/or Change Appeal Process. The current appeal fee has not been adjusted in more than a decade. However, there was broad consensus among the public that changes to the appeal fee are not a high priority. As such, this task will be included in the Citywide Master Fee Schedule Update, which is budgeted for completion during this fiscal year (FY 19/20). There is some caution about raising the appeal fee too high so that is does not undermine the public review process. Therefore, the nexus study will be critical in demonstrating that a fee increase aligns with the service that is being provided by the City. It is recommended that the appeal process (and any recommended changes) be reviewed concurrently with the fee update. Staff Recommendation: No action is recommended at this time. The appeal fee will be studied as part of the Citywide Master Fee Schedule Update, which is anticipated to be completed in late 2020. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9 COMMUNITY OUTREACH: As described in the Background section, in addition to the City Council meetings of August 20, 2018 and September 3, 2019, Staff recently held two evening public workshops dedicated to the housing topics and policies outlined in this report: • Housing Workshop #1 was held on November 3, 2019. This workshop: a) provided in-depth information on the current housing crisis; and b) focused on the recommended policy actions specific to the regulation/zoning and permit streamlining. Workshop attendance: 40. • Housing Workshop #2 was held on November 14, 2019. This workshop: a) included a presentation on housing development financing and funding sources; and b) focused on the recommended policy actions specific to City’s inclusionary housing requirements and use of the City’s Affordable Housing Trust Fund. Workshop Attendance: 35 In addition to these workshops, a public notice of this meeting was mailed to stakeholders, agencies and special interest groups 15-days prior to this meeting. Those noticed included, among others, all neighborhood associations, the Federation of San Rafael Neighborhoods, housing advocacy groups, and the San Rafael Chamber of Commerce. FISCAL IMPACT: This item is an informational report, which has no direct fiscal impact on the City. The fiscal impact to the City for each policy listed above will be assessed and determined as each is brought forward to the City Council for consideration and action. OPTIONS: The action before City Council relates to the acceptance of this report. By accepting this report, City Council will be directing staff on the timing and prioritizing of the proposed housing policies. For this action, City Council has the following options to consider: 1. Accept and provide direction as recommended by staff; 2. Accept and provide direction with revisions to recommendations by staff; 3. Do not accept the report; or 4. Direct staff to return with more information. RECOMMENDED ACTION: Accept the report and provide direction as recommended by staff. ATTACHMENTS: 1. Summary of Staff Recommendations for Proposed Housing Policies 2. Public Meeting Notice Attachment 1- Summary of Staff Recommendations for Proposed Housing Policies Staff Recommendation Next Steps* Currently Underway Policy 1 “Planning Commission First” review Maintain current policy of offering a Planning Commission study session as first public forum on development projects, rather than the DRB No Action Necessary Policy 2 Form-Based Code for Downtown Precise Plan Confirm Support of a Form-Based Code for the Downtown Precise Plan No Action Necessary Policy 3 Streamline CEQA/ Environmental Review Encourage and direct staff to continue using the CEQA exemptions, where appropriate and practical to streamline the CEQA/environmental review process for housing projects. No Action Necessary Policy 4 Reduce Requirements Technical Studies Continue to minimize requirements for the preparation of technical studies when appropriate and warranted. No Action Necessary Policy 5 Streamlined Pre-Application “Concept” Review Process Adopt a resolution establishing a streamlined, Pre-Application “concept review” process for housing projects with no fee Continue with streamlined Pre- Application “concept review” process. Ready for City Council Action Immediately* Policy 6 Affordable Housing Trust Fund Administration Adopt proposed Affordable Housing Trust Fund Policy Resolution establish policies and procedures for awarding Trust Fund monies. Vote on Proposed Policy Resolution Phase 1 Anticipated Spring/Summer 2020* Policy 7 & 8 Adopt Changes to Inclusionary Housing Requirements & Adopt Changes to Affordable Housing In-lieu Fee Adopt an ordinance amending the City's Inclusionary Housing requirement to provide a menu of options for developers to reach compliance and providing development incentives. Return with an informational report on potential amendments and to the City's Inclusionary Housing Requirement and Affordable Housing In-Lieu Fee and next steps. Policy 9 “By-Right” Zoning for Affordable Housing Projects Adopt a resolution establishing a "By Right" Planning Process for Affordable Housing Projects Return with "By-Right" Planning Process for City Council consideration Policy 10 New Accessory Dwelling Unit (ADU) Ordinance Adopt a new ADU ordinance compliant with recently passed State Legislation Present a Draft ADU Ordinance the Planning Commission for review Phase 2 Anticipated Fall/Winter 2020* Policy 11 Update “Density Bonus” Ordinance Adopt an Ordinance simplifying and making compliant with State Law the City's Density Bonus requirements. Return with Draft Density Bonus Ordinance for City Council consideration Policy 12 Consider Changes to Design Review Board Adopt an ordinance changing the structure and role of the DRB Return with an Informational Report on potential changes to the DRB. Ordinance to follow. Phase 3 Anticipated 2021* Policy 13 Changes to Payment of Development Impact Fees Adopt a resolution changing the timing of fee payments for development impact fees Return with an Informational Report on potential changes to the payment of development impact fees. Policy 14 Support City/Developer Partnerships Conduct an in-depth assessment of air rights use of the seven City-owned parking lots for development potential. Return with an Informational Report assessing air rights use of the seven City parking lots and recommended next steps. On-Hold Policy 15 Raise Appeal Fee and/or Change Appeal Process No Action Recommended No Action Necessary *Timeline for proposed next steps represents the anticipated timing for follow-up staff actions, not the final implementation of the proposed policy. NOTICE OF PUBLIC MEETING – CITY COUNCIL You are invited to attend the City Council meeting on the following topic: TOPIC: PRIORITIZING CITY HOUSING POLICIES & PRACTICES – As follow-up to an informational report to the City Council (September 3, 2019) and two public workshops on the challenges to the approval and development of housing, a summary report will be presented to the City Council. The report will present and recommend prioritization of and subsequent action on specific measures and City policies to facilitate and reduce the challenges to approving and developing housing. The report will also provide a summary of the two public workshops including the polling results on the recommended actions on the specific measures and City policies. For background on this topic, the September 3, 2019 informational report to the City Council on the housing challenges and recommended actions is available and can be reviewed at: t.ly/pelW9 . File No(s).: P18-010. State law (California Environmental Quality Act - CEQA) requires that this ‘project” be reviewed to determine if a study of potential environmental effects is required. It has been determined that this ‘project,’ which is an informational report, will have no physical impact on the environment. The prioritization of City housing policies and practices is classified as a planning study, which qualifies for a Statutory Exemption from the provisions of the CEQA Guidelines under 14 CRR Section 15262. Follow-up actions to the informational report may require environmental review. DATE/TIME/LOCATION: Tuesday, January 21, 2020, 7:00p.m., City Council Chambers, 1400 5th Avenue at D Street, San Rafael, CA FOR MORE INFORMATION: Contact Paul Jensen, Community Development Department at (415) 485-5064 or paul.jensen@cityofsanrafael.org. The Community Development Department office is open from 8:30 a.m. to 4:30 p.m. on Monday, Tuesday and Thursday and 8:30 a.m. to 1:30 p.m. on Wednesday and Friday. The report to the City Council will be posted at https://www.cityofsanrafael.org/public-meetings/ on Thursday, January 16, 2020. WHAT WILL HAPPEN: You can comment on the report to the City Council. The City Council will consider all public testimony. However, as this is an informational report, no formal action will be taken by the City Council. The City Council will be requested to provide direction and feedback on the recommended measures and City policy actions presented in the report. IF YOU WANT TO SUBMIT WRITTEN COMMENTS: You can send written correspondence by email to the address above, or by mail/hand delivery to the Community Development Department, Planning Division, City of San Rafael, 1400 5th Avenue, San Rafael, CA 94901. Sign Language and interpretation and assistive listening devices may be requested by calling (415) 485-3085 (voice) or (415) 485-3198 (TDD) at least 72 hours in advance. Copies of documents are available in accessible formats upon request. Public transportation to City Hall is available through Golden Gate Transit, Line 22 or 23. Paratransit is available by calling Whistlestop Wheels at (415) 454-0964. To allow individuals with environmental illness or multiple chemical sensitivity to attend the meeting/hearing, individuals are requested to refrain from wearing scented products.