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HomeMy WebLinkAboutReceive and File the Monthly Status Update on the 6th Cycle (13) City of Huntington Beach File #: 20-1470 MEETING DATE: 3/16/2020 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 Subject: Receive and file the monthly status update on the 6th cycle Regional Housing Needs Assessment 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 February 18, 2020. 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: On February 24, 2020, the SCAG RHNA Subcommittee recommended approval of the SCAG staff (and HCD approved) RHNA methodology to the Community, Economic, and Human Development Committee (CEHDC) and Regional Council. During the March 5, 2020 CEHD meeting, the discussion focused on an alternative RHNA methodology proposed by the City of Cerritos. This methodology would have resulted in 4,000 less RHNA unis for the City of Huntington Beach. After a lengthy discussion, there was a motion, seconded by Council Member Posey, to approve the Cerritos methodology and apply the residual units region-wide (rather than countywide), which would further reduce the City's RHNA number. The motion narrowly failed on a tie vote. Another motion was then made to approve a recommendation to the Regional Council to continue action on the final RHNA methodology and direct SCAG staff to analyze a hybrid methodology, which would result in a lower City of Huntington Beach Page 1 of 2 Printed on 3/13/2020 powered LegistarTM File #: 20-1470 MEETING DATE: 3/16/2020 RHNA number for Huntington Beach similar to the Cerritos methodology, and have another discussion with HCD regarding the regional determination of 1.3 million units. The motion was approved with Mayor Semeta and Council Member Posey, who both serve on the CEHD, voting in support of the recommendation. Later that same day, during the Regional Council meeting, the SCAG staff recommended (and HCD approved) RHNA methodology was approved by a vote of 41-23. Mayor Lyn Semeta, representing Huntington Beach, voiced her objections to the flawed regional determination and methodology during the meeting and voted no on the item. The final approved methodology will result in a RHNA allocation of 13,337 units for the City of Huntington Beach. It is anticipated that the required 45-day appeal period will be April 10, 2020 through May 25, 2020. The City Attorney's office has already retained expert consultants to assist the City with its appeal. Staff from the City Attorney's office and Community Development Department will meet with them on March 10, 2020 to begin preparing the City's appeal. City of Huntington Beach 6Lhh Cycle RHNA (based on the March 5, 2020 Regional Council vote) Income Category Number of Units Very-low income ( 50% AMI) 3,651 Low income (50-80% AMI) 2,179 Moderate income (80-120% AMI) 2,303 Above Moderate/Market rate ( 120% AMI) 5,204 Total RHNA 13,337 City Council Ad-Hoc RHNA Committee The City Council RHNA Committee held its first meeting on February 19, 2020. Mayor Semeta, Mayor Pro-Tem Hardy and Council Member Brenden participated in the meeting along with City staff. The first meeting provided an overview of the RHNA methodology and the RHNA appeals procedures for the City Council committee members. Now that the RHNA methodology has been finalized, the next meeting will focus on the City's appeal strategy as well as legislative and legal options along with developing a plan for the 6th cycle Housing Element update. 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. City of Huntington Beach letter - March 5, 2020 SCAG Regional Council meeting City of Huntington Beach Page 2 of 2 Printed on 3/13/2020 powerede4 LegistarTfd CITY OF HUNTINGTON BEACH 2000 MAIN STREET, HUNTINGTON BEACH, CALIFORNIA 92648-2702 OFFICE OF THE CITY MANAGER OLIVER CHI March 4,2020 Hon. Bill Jahn, President Regional Council Southern California Association of Governments 900 Wilshire Boulevard, Suite 1700 Los Angeles, CA 90017 RE: Request to the Southern California Association of Governments (SCAG) to Amend the Regional Housing Needs Assessment(RHNA) Methodology for the 6th Cycle Dear President Jahn: This letter is submitted for the administrative record of the March 5, 2020 SCAG Regional Council meeting. The City of Huntington Beach has and continues to object to the arbitrary and capricious process being followed by the State in determining and allocating RHNA for Orange County and specifically the City of Huntington Beach. (Including Mayor Semeta being denied the right to speak at the November 7, 2019 Regional Council meeting.) Final RI1NA Methodology The City of Huntington Beach incorporates all of its prior arguments both orally and in writing and again additionally requests that SCAG amend the Final RHNA methodology to reinstate local input (a critical) factor in determining actual existing need. The local input/household growth projections are a critical factor because it takes into consideration the unique growth characteristics of each jurisdiction. In addition, SCAG staff has previously stated (refer to the November 7, 2019, Regional Council staff report on the original SCAG staff-recommended RHNA methodology) that the reintroduction of household growth into the existing need would further the five objectives of state housing law. Moreover, the local input growth projections were provided to SCAG to be used globally to show growth development patterns supporting . the Regional Transportation Plan/Sustainable Community Strategy (RTP/SCS) Connect SoCal as required by state law. Prior to the February 24, 2020 SCAG RHNA Subcommittee meeting, the City of Cerritos submitted an alternate methodology dated February 4, 2020, which recommends that household growth forecasts be reintroduced back into the calculations for the existing need as follows: household growth (33.3%),job accessibility (33.3%), and population within high quality transit areas (33.3%). While this does not address all concerns the City has with the methodology process, we believe it provides a better and more accurate methodology than the staff recommended Final RHNA methodology. At the February 24, 2020 SCAG RHNA Subcommittee meeting, the Subcommittee voted to have SCAG staff include an analysis of the Cerritos methodology in the March 5, 2020 staff report. The "analysis" of the Cerritos methodology in the staff report consists of a single dismissive paragraph, which concludes that the Cerritos methodology would "perform more poorly" against the staff recommended methodology, would require additional HCD review, and jeopardize SCAG's ability to meet arbitrary state mandated deadlines. However, the staff report fails to mention that the Cerritos Fax 7 i 4.536.5233 Office: 714.536.5575 67 methodology does in fact further the five RHNA objectives of state housing element law and that the Regional Council can make the findings to adopt this methodology even if HCD, upon review, does not. Finally, the City would be more supportive of any methodology that utilizes a larger proportion of local input reflecting a more accurate and equitable RHNA allocation over the staff recommended Final RHNA methodology. Regional Determination The City advises that SCAG object again to the Department of Housing and Community Development (HCD) because the regional determination did not follow state law [see Government Code Section 65584.01(a)], and mount a legal challenge to this illegal determination. During the February 20, 2020 RHNA symposium in Anaheim, SCAG Executive Director Kome Ajise stated that SCAG would not file a legal challenge against HCD because the state has more money and lawyers to fight a lawsuit. This reason is not acceptable to the City of Huntington Beach and should not be acceptable to any member of the Regional Council. HCD has violated state law and should be held accountable. Moreover, the Department of Finance's recently updated population projections show a significant population decrease since their previous forecast. Governor Newsom has also stated that his commitment to building 3.5 million homes by 2025 was a "stretch goal" and that the state would soon be releasing a more pragmatic estimate of the housing needs by region...suspiciously in time for the Governor's home region(ABAG)to begin its Housing Element/RHNA process. The regional determination of 1.34 million housing units combined with an inequitable RHNA methodology adopted through questionable actions and political maneuvering during the November 7, 2019, Regional Council meeting, are legally flawed, following no apparent rational basis and setting up local jurisdictions for failure to comply with state housing law and based on inaccurate data assumptions. As the City has said, the data regarding the assignment of High Quality Transit Areas (HQTA) along Beach Boulevard within the City of Huntington Beach is inaccurate. The existing and 2045 planned bus service does not meet the definition of a HQTA. We request that the Regional Council consider all of the legal and factual arguments made by the City of Huntington Beach including the two above referenced recommendations prior to the adoption of the RHNA. The Regional Housing Needs Allocation will have significant impacts on the City of Huntington Beach over the next decade and thoughtful policy decisions, and more importantly, the LAW cannot be abandoned in favor of an irrational attempt to solve a complicated problem. It is imperative that the RHNA be finalized in a way that is LEGAL, equitable and attainable in responding to state housing mandates. Si cerely, Oliver Chi City Manager Page 12 68