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HomeMy WebLinkAboutCD Housing Work Plan Update____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: December 7, 2020 Disposition: Accepted Report Agenda Item No: 7.c Meeting Date: December 7, 2020 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community Development Department Prepared by: Paul Jensen (EG) Community Development Director City Manager Approval: ______________ TOPIC: HOUSING WORK PLAN UPDATE SUBJECT: INFORMATIONAL REPORT PROVIDING AN UPDATE REGARDING HOUSING POLICY ACTIONS RECOMMENDATION: Accept Report 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. 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 challenges. Also, at the September 3rd 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 January 21, 2020, the City Council was presented an informational report on staff recommendations for prioritization, timing, and future City Council actions on these proposed policy actions to address challenges to approving and developing housing. The purpose of this informational report is to provide an update on these housing policy actions. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 ANALYSIS: Since the January 21st, 2020 City Council meeting, staff has completed the following policy actions: Summary Status Completed Policy Actions Policy 1 "Planning Commission First" Review Maintain current policy of a Planning Commission study session as first public forum on development projects, rather than the Design Review Board. In effect. Policy 2 Form-Based Code for Downtown Precise Plan Support the direction of a form-based code for the Downtown Precise Plan Approved. Draft Downtown Precise Plan to be released by Q1 2021 Policy 3 Streamline CEQA/ Environmental Review Continue the practice of using the CEQA exemptions, where appropriate and practical, to streamline the CEQA/ environmental review process for housing projects In effect. Policy 4 Reduce Requirements for Technical Studies Continue to minimize requirements for the preparation of technical studies when appropriate and warranted In effect. Policy 5 Streamlined Pre- Application "Concept" Review Process Continue with streamlined, Pre- Application “concept review” process for housing projects with no fee In effect. Policy 6 Affordable Housing Trust Fund Administration Policy resolution establishing policies and procedures for awarding trust fund monies In effect. City Council has received informational reports specific to the following policies and corresponding ordinances and policy resolutions are ready for final City Council consideration at a future meeting: Summary Status Ready for Council Consideration Policy 7 & 8 Adopt Changes to Inclusionary Housing Requirements & Adopt Changes to Affordable Housing In-lieu Fee Amendments reducing the City's Inclusionary Housing Requirement and allowing developers flexibility in meeting the requirement, including paying an in-lieu fee for a portion of the requirement. On September 21, 2020, City Council directed staff to move forward with a reduced requirement meeting 10% below market rate (BMR) equivalent option. Planning Commission recommended moving forward with this option at the November 17, 2020 meeting. Policy 11 Update “Density Bonus” Ordinance Aligning the City's Density Bonus Ordinance with the State Density Bonus Law (SDBL) On September 21, 2020, City Council directed staff to move forward with a amendments aligning the SRMC with the SDBL. Planning Commission recommended moving forward with this option at the November 17, 2020 meeting. Policy 12 Consider Changes to Design Review Board (DRB) Amendments changing the structure and role of the DRB to one that is more informal and advisory. On September 21, 2020, City Council directed staff to work with the DRB to move forward with the following: “Pilot” a Less Formal Design Review Advisory Committee (DRAC); Include Public Noticing Procedures & Measures similar to Zoning Administrator Meeting Format. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 Staff is currently working on follow-up actions for the following policy actions: Summary Status Under Development Policy 9 “By-Right” Zoning for Affordable Housing Projects Resolution establishing a "by right" planning process for affordable housing projects Aligning process with the Objective Design Guidelines required by SB35. Draft Guidelines expected to be completed by Q1 2021. Policy 10 New Accessory Dwelling Unit (ADU) Ordinance Adopt a new ADU ordinance compliant with recently passed State Legislation Draft ADU ordinance in development. Once complete, Ordinance will be taken to the Planning Commission for Review. Expected mid-2021. Policy 13 Changes to Payment of Development Impact Fees Resolution changing the timing of fee payments for development impact fees Informational Report on potential changes to the payment of development impact fees expected late 2021. 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. Informational Report assessing air rights use of the seven City parking lots and recommended next steps expected late 2021. On-Hold Policy 15 Raise Appeal Fee and/or Change Appeal Process Appeal fee to be studied as part of the Citywide Master Fee Schedule Update No further action Since the January 21, 2020 City Council meeting, staff has identified the following new policy actions: Summary Status New Policy Actions New Policy Priority Development Area (PDA) Designation Designate Northgate and Canal Neighborhoods as PDA's for the Plan Bay Area 2050 process allowing access to funding for a Specific or Precise Plan process. PDA approved by ABAG/MTC Board. Awaiting application period to open for first round of planning funding (expected Q1 2021). New Policy Allow Developer Buy-out of New Construction projects Allow entitled development projects to buy- out half of the required onsite below market rate units under certain conditions. On September 21, 2020, City Council directed staff to move forward with allowing Buy-outs. No further action necessary, any requested buy out will require City Council approval New Policy Minor Streamlining Amendments Minor amendments to streamline the permitting process including changes to Appeals scheduling, development on small lots, changes to the City's Height Bonus, and align the hillside exception process within similar exception permits. On September 21, 2020, City Council directed staff to move forward with a amendments aligning the SRMC with the SDBL. Planning Commission recommended moving forward with this option at the November 17, 2020 meeting. New Policy Housing Development Incentive Pilot Program Development of a "Pilot" incentive program with provides developers additional height, density, and parking reductions if specific community benefits are provided. Feedback received during Inclusionary Housing policy outreach indicated interest in a pilot program but further analysis is needed. New Policy Canal Policy Working Group Collaborative policy working group aimed at identifying policy actions to address the impacts of COVID-19 on households in the Canal Neighborhood In Progress. Follow-up actions to be identified through the Canal Policy Working Group. New Policy Expanded Renter Relocation Assistance for Opportunity Zone Expansion of Renter Relocation Assistance for households displaced due to a no-fault eviction in the City’s federally designated Opportunity Zone. On November 2, 2020, City Council directed staff to move forward with amendments expanding protections to Opportunity Zone. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 FISCAL IMPACT: As an informational report, there is no fiscal impact. OPTIONS: The City Council has the following options to consider on this matter: 1. Accept Report 2. Direct staff to return with more information. 3. Take no action. RECOMMENDED ACTION: Accept report.