Agenda Item Wording:
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Public Hearing: Zoning Text Amendment No. 2021-07: A request by the City of Visalia to amend Visalia Municipal Code Chapter 17.32, Article 2, as to implement a program contained in the City of Visalia 2020-2023 Housing Element pertaining to density bonuses regulations. The project area is contained within the City of Visalia’s Urban Development Boundaries that are illustrated in the Visalia General Plan, Citywide.
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Deadline for Action: 11/15/2021
Submitting Department: Community Development
Contact Name and Phone Number:
Brandon Smith, Principal Planner, brandon.smith@visalia.city <mailto:brandon.smith@visalia.city>, (559) 713-4636
Paul Bernal, Community Development Director, paul.bernal@visalia.city <mailto:paul.bernal@visalia.city>, (559) 713-4025
Department Recommendation:
Staff recommends that the City Council hold a public hearing and introduce the first reading of Ordinance No. 2021-08, to amend portions of Municipal Code Title 17 (Zoning Ordinance) as to implement a program contained in the City of Visalia 2020-2023 Housing Element pertaining to density bonuses regulations.
Background Discussion:
Zoning Text Amendment (ZTA) No. 2021-07 is a city-initiated request to implement a housing-related Zoning Ordinance text amendment that stems from the adoption of the 2020-2023 Housing Element Update.
The Housing Element was adopted by the City Council on December 3, 2019 and subsequently found by State Housing and Community Development (HCD) to be in full compliance with state Housing Element law. Following adoption, the Housing Element is implemented through a series of implementation programs.
The proposed ZTA represents part of the second round of changes being undertaken to help fulfill the intended outcomes or objectives of the Housing Element (in an effort to help remove or overcome constraints to housing development). The first round of changes was completed in 2020 and implemented six programs pertaining to relatively straightforward changes bringing the City’s Zoning Ordinance into compliance with State housing law.
This ZTA fulfills one implementation program - Consistency with State Density Bonus Law (Program 3.19), described as follows:
The City shall review and amend its Zoning Ordinance to ensure that its density bonus regulations remain consistent with state law (Government Code Sections 65915 through 65918). This program includes the addition of a housing unit replacement program subject to the requirements of Government Code Section 65915(c)(3). The replacement program would be subject to sites identified in the site inventory where any new development (residential, mixed-use or non-residential) occurs on a site that has been occupied by or restricted for the use of lower-income households at any time during the previous five years.
The entire Housing Element can be accessed at the following link:
<https://www.visalia.city/depts/community_development/planning/gp.asp>.
Proposal:
The City’s ordinance pertaining to density bonuses (Visalia Municipal Code Chapter 17.32 Article 2) is generally a condensed restatement of the State Density Bonus Law (explained further below) to meet our obligation to implement the law but with no local additions to density bonus provisions. This ordinance is typically updated upon completion of a City Housing Element Update to address any revisions to state law adopted in prior years. The last update to the City’s ordinance pertaining to density bonuses was in 2017, following the adoption of the 5-cycle Housing Element Update in 2016.
Because the city is compelled to comply with state density bonus allowances, the City’s density bonus ordinance should not just be a copy of the state law, but rather focus more on the permit processing requirements for density bonus applications.
This Zone Text Amendment proposes to remove current code language that restates the state law and replace it with a direct reference to the state code. This in turn will help reduce the need to regularly update the city’s ordinance when the state makes changes to the law, which has been occurring on an annual basis over the past several years.
Also, this Zone Text Amendment will enact state-mandated requirements and standards for processing and reviewing density bonus applications. The new text will focus more on describing the City’s application requirements and process for any person seeking to request a density bonus and any incentive(s), waiver(s), parking reductions, or commercial development bonus provided by State law.
The specific text that repeals the current Chapter 17.32 Article 2 (Density Bonuses) and the ensuing replacement text is found in Exhibit “A” of the attached Resolution.
Analysis:
A primary reason for this Amendment is to prevent the need to repeatedly update the City’s ordinance in order to keep up with amendments passed to the State Density Bonus Law. By simply referring directly to State law, Visalia’s own ordinance will always be in compliance when amendments are passed to State law. One or more pieces of new legislation are routinely passed each year by the State that affects density bonuses, and more change are expected in the coming years. For example:
• Senate Bill 290, signed into law on September 28, 2021, and effective January 1, 2022, provides clarifications and revisions to the Density Bonus Law.
• Assembly Bill 2345, signed into law in 2020, and effective January 1, 2021, expands and enhances development incentives for projects with affordable and senior housing components and increases the State Density Bonus from 35% to 50%.
• Assembly Bill 1763, signed into law in 2019, added new affordability categories and substantially increased density bonuses for certain projects.
• Assembly Bill 2753, signed into law in 2018, expedites the processing of density bonus applications pursuant to the State Density Bonus Law.
• Assembly Bill 1227, signed into law in 2018, extends the State Density Bonus Law to student housing.
• Other likewise bills have been passed in years prior to 2018.
Another reason for this amendment is that Visalia’s codes do not seek to allow density bonuses or any affiliated incentives, waivers, etc. that would go above and beyond what the State Density Bonus Law would allow. Similarly, cities do not have the legal authority to adopt rules that are more restrictive than state law. Their authority is largely limited to procedural matters and to adopting regulations that provide more flexibility and allowances than state law allows.
The density bonus is a tool that has been used infrequently in Visalia, though current increased pressure and opportunities to develop more market rate and affordable housing may cause this tool to be used more often. Visalia’s last density bonus approval that resulted in an increase in density for a residential development was in 2005, pertaining to a multi-family residential development located at Lovers Lane and K Avenue. Within the last year, the density bonus was used to provide certain concessions to off-site improvements in association with The Lofts at Fort Visalia project, on the basis that the project was providing 100% affordable housing.
Overview of State Density Bonus Law:
State density bonus law (Government Code §65915 - 65918, see Exhibit “B”) allows a developer to increase density (the number of new, market-rate dwelling units allowed per acre) on a property above the maximum set under a city’s local land use plan (Visalia General Plan). In addition, qualifying applicants can also receive reductions in required development standards such as setbacks, height limits, and parking requirements when such deviations are necessary to achieve the density allowed under state law. In exchange for a density increase (up to a maximum of 35 percent above a city’s locally imposed maximum density), a certain number of the new dwelling units must be reserved for very low, low, or moderate-income households, or for other qualifying housing types such as senior housing, for a period of not less than 55 years.
The requirement for a local density bonus ordinance is stipulated under state density bonus law, as reflected below:
§65915(a)
“All cities…shall adopt an ordinance that specifies how compliance with this section will be implemented. Failure to adopt an ordinance shall not relieve a city…from complying with this section.”
It is important to note that a jurisdiction may not enact local laws that conflict with state law or prohibit what the legislature intends to authorize.
Fiscal Impact:
None.
Prior Council Action:
• On December 3, 2019, the City Council voted to adopt the 2020-2023 Housing Element.
• On August 17, 2020, the City Council voted to approve the first reading of a Zone Text Amendment pertaining to the implementation of various programs from the Housing Element, mostly in response to aligning the City’s ordinance with State housing regulations.
Other Committee/Commission Review and Action:
On October 25, 2021, the Planning Commission voted 5-0 to recommend approval of Zoning Text Amendment No. 2021-07 as presented by staff. There were no significant comments made by the Commission and there were no public hearing comments given.
Alternatives:
The City Council, in lieu of the recommendations provided, may direct staff to consider the following:
1. Deny the Zoning Text Amendment in whole or in part, or
2. Return the item to the Planning Commission for further consideration.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to introduce for first reading Ordinance No. 2021-08 for Zone Text Amendment No. 2021-07.
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Environmental Assessment Status:
California Environmental Quality Act (CEQA) Section 15183(a) mandates that projects which are consistent with the development density established by general plan policies for which an Environmental Impact Report (EIR) was certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site. In accordance with CEQA guidelines, Initial Study No. 2021-44 was prepared for this project, which disclosed the proposed project has no new effects that could occur, or new mitigation measures that would be required that have not been addressed within the scope of the Program Environmental Impact Report (SCH No. 2010041078). The Environmental Impact Report prepared for the City of Visalia General Plan was certified by Resolution No. 2014-37, adopted on October 14, 2014. In addition, an Initial Study with Negative Declaration for the General Plan Housing Element (Negative Declaration No. 2019-63) was also prepared, wherein the environmental review assessed the establishment of goals, policies, and implementation programs. Therefore, staff concludes that the previously prepared Program Environmental Impact Report and Negative Declaration adequately analyzed and addresses the project and recommends that the City Council adopt Environmental Document No. 2021-44 for this project.
CEQA Review:
California Environmental Quality Act (CEQA) Section 15183(a) mandates that projects which are consistent with the development density established by general plan policies for which an Environmental Impact Report (EIR) was certified shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site. In accordance with CEQA guidelines, Initial Study No. 2020-40 was prepared for this project, which disclosed the proposed project has no new effects that could occur, or new mitigation measures that would be required that have not been addressed within the scope of the Program Environmental Impact Report (SCH No. 2010041078). The Environmental Impact Report prepared for the City of Visalia General Plan was certified by Resolution No. 2014-37, adopted on October 14, 2014. In addition, an Initial Study with Negative Declaration for the General Plan Housing Element (Negative Declaration No. 2019-63) was also prepared, wherein the environmental review assessed the establishment of goals, policies, and implementation programs. Therefore, staff concludes that the previously prepared Program Environmental Impact Report and Negative Declaration adequately analyzed and addresses the project and recommends that Environmental Document No. 2021-44 be adopted for this project.
Attachments:
1. Ordinance No. 2021-08 for Zoning Text Amendment No. 2021-07
2. Full Text of Applicable General Plan Housing Element Programs
3. Government Code Pertaining to Density Bonuses and Other Incentives (Title 7, Division 1, Chapter 4.3 of California Government Code commencing at Section 65915)
4. Initial Study / Environmental Document No. 2021-44