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Home My WebLink AboutReceive and File the Monthly Status Update on the 6th Cycle (5) �L�J,vi ram, t/ e_ r City of Huntington Beach File #: 19-1145 MEETING DATE: 11/18/2019 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Ursula Luna-Reynosa, Director of Community Development Subiect: Receive and file the monthly status update on the 6th Cycle Regional Housing Needs Assessment (RHNA) process Statement of Issue: During the July 15, 2019, City Council Study Session, Community Development staff presented an overview of the 6th Cycle RHNA process and related items of information as directed by the City Council. At the end of the study session, the City Council requested monthly updates on the status of the 6th Cycle RHNA process. This update provides a summary of what has occurred since the last monthly update on October 21, 2019. Financial Impact: There is no fiscal impact. Recommended Action: Receive and file the monthly Regional Housing Needs Assessment (RHNA) process status update. Alternative Action(s): Provide alternative direction to staff. Analysis: The following is a summary of what has occurred during the RHNA process since the last monthly update on October 21, 2019. On October 21, 2019, the SCAG Community, Economic and Human Development (CEHD) Committee, approved a SCAG staff recommended RHNA methodology to the Regional Council. Mayor Pro Tern Semeta and Council Member Posey are members of the CEHD and attended the meeting representing the City of Huntington Beach and the Orange County Council of Governments, respectively. The SCAG staff recommended methodology would have resulted in approximately 3,600 RHNA units City of Huntington Beach Page 1 of 2 Printed on 11/13/2019 powerA24 Legistar- File #: 19-1145 MEETING DATE: 11/18/2019 for the City of Huntington Beach. Although this number is greater than the current cycle RHNA allocation, it resulted in one of the lower allocations for Huntington Beach of all the methodology options that had been presented. In addition, the SCAG staff recommended methodology resulted in a more equitable distribution of RHNA units than the current cycle. On November 7, 2019, the SCAG Regional Council, made up of elected officials from the various SCAG jurisdictions, considered the draft methodology. The Regional Council's action on the RHNA methodology would be the final step before sending the draft methodology to HCD for a 60-day review. After a motion and a second for the SCAG staff recommended methodology, the Regional Council ultimately voted 43-19 to approve a substitute motion, approving an alternative methodology proposed by Mayor Rusty Bailey of Riverside rather than the SCAG staff recommended methodology. Although there were some changes added to the methodology as part of the substitute motion, the "Riverside" methodology would result in a RHNA allocation of approximately 13,300 units to the City of Huntington Beach. The City was aware of a potential substitute motion prior to the meeting and submitted a comment letter opposing the alternative "Riverside" methodology (Attachment No.1). Mayor Pro Tern Semeta, representing the City of Huntington Beach on the Regional Council, voted no on the substitute motion. The approved methodology will now be forwarded to HCD for review. If HCD approves the methodology, SCAG will then distribute RHNA units to its member jurisdictions. An appeal period will follow the jurisdictional allocation. Environmental Status: The filing of a status update on the 6th Cycle RHNA process is not a project as defined by Section 15378 of the CEQA Guidelines and is not subject to CEQA. Strategic Plan Goal: Non-Applicable - Administrative Item Attachment(s): 1. November 7, 2019, Regional Council comment letter City of Huntington Beach Page 2 of 2 Printed on 11/13/2019 powere&y LegistarTPf City of Huntington Beach �t 2000 MAIN STREET CALIFORNIA 92648 y DEPARTMENT OF COMMUNITY DEVELOPMENT Planning Division Code Enforcement Division Building Division 714.536.5271 714.375.5155 714.536.5241 November 5, 2019 Honorable Bill Jahn Regional Council President Southern California Association of Governments 900 Wilshire Boulevard, Suite 1700 Los Angeles, CA 90017 Submitted via email to: housing _scag.ca.gov RE: NOVEMBER 7, 2019 AGENDA ITEM NO. 4 — DRAFT RHNA METHODOLOGY Dear President Jahn, The City of Huntington Beach would like to comment in writing on the proposed RHNA methodology that will be considered at the November 7, 2019 meeting. While we appreciate the opportunity to participate in the process, the City cannot emphasize enough the potential disastrous ramifications including unnecessary legal action that may result in the RHNA allocation process contemplated by the State and its sub-regions. Action taken by the Regional Council on November 7th will be the final step in determining a RHNA methodology that, short of litigation, all member jurisdictions may be required to implement over the next eight years. With the recent changes to state housing element law, such as AB 1397 and SB 166, general law cities are tasked with identifying eligible RHNA sites and obtaining housing element certification from the California Housing and Community Development Department (HCD) under more stringent site criteria and site analysis requirements. While the State continues to assert these laws apply to charter cities, the City of Huntington Beach continues to disagree and we are amid litigation over the very issue. With this in mind, the City of Huntington Beach implores the Regional Council to adopt a methodology that utilizes local input as a primary factor. The City acknowledges SCAG's objective to develop the 611 cycle RHNA methodology in a way that will result in a more fair and equitable allocation to the jurisdictions and we are optimistic that the final RHNA allocation will reflect this goal. However, local input is critical to the accuracy and legitimacy of the RHNA process. 438 Oppose Alternative Methodologies The City of Huntington Beach requests that the Regional Council reject alternative methodologies that have been submitted (very late in the process.) These methodologies do not comply with State Law Government Code Title 7, and in addition, largely remove local input from the process. Support OCCOG 11/5/19 Letter Regarding HCD Regional Determination The City of Huntington Beach agrees and joins with OCCOG in its letter of November 5, 2019 which correctly asserts that HCD ignored State Law in determining the final regional housing need. The City will support any legal action taken by SCAG to address this blatant violation of state law in order to prevent further and more damaging overreach by HCD. The City appreciates SCAG's commitment to a fair and transparent process and will continue to be an active participant during this 6th cycle RHNA process. The City thanks SCAG staff as well as the RHNA subcommittee, Community, Economic and Human Development Committee (CEHD) and Regional Council for all of the hard work that has been done as part of the 6th cycle RHNA process. Sincerely, Oliver Chi City Manager 2 439 6 T" CYCLE RHNA UPDATE COMMUNITY DEVELOPMENT DEPARTMENT NOVEMBER 7, 2019 SCAG REGIONAL COUNCIL MEETING SCAG staff recommended RHNA methodology was not approved Voted 43-19 to approve a substitute motion for an alternative RHNA methodology proposed by Mayor Rusty Bailey of Riverside Substitute motion included various changes during the vote "Riverside" methodology = 13,300 units (approx.) City of Huntington Beach SCAG staff recommended methodology = 3,612 units City of Huntington Beach SUPPLEMENTAL COMMUNICATION // - /S .Mm"Date: ,� nr� Agenda tWn No.• l 7- �/ 5 RHNA METHODOLOGY SCAG Staff Recommendation "Riverside" Methodology . • 0% HQTM 0• • Removes local input from existing need calculations • Shifts units from Inland Counties (Riverside, San Bernardino, Imperial) and places them in Orange and L.A. Counties • Not consistent with growth forecast (RTP/SCS) as required by SB 375 (State law) • Results in growth that exceeds General Plan DRAFT OC RHNA: TOP 13 JURISDICTIONS BY UNIT COUNT 2019'W" SCAG Staff 1 1/7/19 Substitute Difference % Change • . . Motion Irvine 280,202 20,774 22,803 2,029 10% Garden Grove 175,155 5,592 19,252 13,660 244% Anaheim 359,339 17,412 17,412 0 0% Huntington Beach 203,761 3,612 13,321 9,709 269% Fullerton 142,824 7,507 13,272 5,765 77% Costa Mesa 115,830 4,309 11,734 7,425 172% Unincorporated OC 129,128 12,224 10,234 -1,990 -16% Westminster 92,610 2,784 9,823 7,039 253% Buena Park 83,384 5,387 9,004 3,617 67% Tustin 81,369 4,820 6,853 2,033 42% Newport Beach 87,180 2,751 4,832 2,081 76% Fountain Valley 56,652 1,371 4,756 3,385 247% Cypress 49,833 915 3,967 3,052 334% RHNA NEXT STEPS RHNA Methodology RHNA Allocation November 2019—January 2020: Feb./March 2020:SCAG distributes HCD review RHNA methodology RHNA allocation to all jurisdictions February 2020: SCAG staff reviews Summer 2020: Appeal period for HCD comments to develop final RHNA allocations follows RHNA methodology jurisdictional allocation pursuant to recommendation RHNA Subcommittee requirements Feb/March 2020:SCAG staff final October 2020:Final RHNA RHNA methodology must be allocation vote by Regional Council approved by RHNA Subcommittee, CEHD Committee,and Regional Council RHNA APPEALS RHNA Subcommittee Dec: l9/Jan.`20: Adopt appeals process guidelines Feb./Mar.`20: RHNA Allocation to Jurisdictions Jurisdictions have 45 days to file an appeal Subsequent 45 day comment period on appeals received SCAG has 30 days to review after close of comment period July`20:Appeals Hearings New for 6t" Cycle • Any jurisdiction can appeal another jurisdiction's RHNA • HCD can appeal a jurisdiction's RHNA