Housing Element Update:

The Housing Element is one of seven mandatory elements of the General Plan.  It provides the City of Garden Grove with a coordinated and comprehensive strategy for promoting the production and maintenance of safe, decent, and affordable housing for all persons in the community.  The Housing Element specifies ways in which the housing needs of existing and future residents can be met by identifying strategies and programs to:   

• Conserve and improve the existing affordable housing stock;
• Assist in the development of affordable housing;
• Identify adequate sites to achieve a variety of housing;
• Remove governmental constraints on housing development; and
• Promote equal housing opportunity. 

Consistent with State Housing Element laws, the Housing Element must be updated every eight (8) years.  The Housing Element was last updated and adopted on May 28, 2013 and covers the 2014-2021 planning period (the 5^th Housing Element Cycle).  The upcoming Housing Element Update will cover 2021-2029 planning period (the 6^th Housing Element Cycle). 

As part of the Housing Element Update process, the Regional Housing Needs Assessment (RHNA) process is mandated by State Housing Law to quantify the need for housing within each jurisdiction. To date, the State Department of Housing and Community Development (HCD) provided to SCAG (Southern California Association of Governments) a regional housing need determination of 1,341,827 units for the 6^th RHNA cycle.  State housing law requires that every council of governments, including SCAG, adopt a RHNA methodology to distribute the housing need to every jurisdiction within its region.  Every jurisdiction must plan for its RHNA allocation in its Housing Element by ensuring sufficient sites and appropriate zoning are in place to accommodate their RHNA allocation. 

The State of California has declared there is a housing crisis due to a combination of both a housing shortage and a lack of affordability.  Recent housing laws reflect the State’s efforts to significantly boost the production of housing for all income levels.  The 6^th cycle Housing Element will present a challenging task for Garden Grove given the need to address significant new housing legislation and to accommodate a RHNA allocation that is 25 times higher. 

• The 5^th Cycle RHNA allocation was 747 housing units – that is, the City established a framework to plan for the development of 747 units in the 2014-2021 planning period.  The City is currently on track to meet or exceed its RHNA allocation of 747 units by the end of the 5^th RHNA cycle (October 2021). 
• The 6^th Cycle RHNA allocation for the City is preliminarily 19,124 units (a 2,460% increase) – that is, the City must plan for its RHNA allocation in its Housing Element Update by ensuring there are enough sites and appropriate zoning to accommodate the production of approximately 19,124 units within the 2021-2029 planning period. 

The City, through multiple letters of protest, has voiced concern to SCAG and the SCAG Regional Council regarding the RHNA methodology and Garden Grove’s allocation, which appears to be inequitable and unreasonable.  In 2019, the Department of Finance estimated there were 48,133 housing units in Garden Grove.  Adding the proposed RHNA allocation of 19,124 units to the existing stock would result in a build out of 67,257 units – increasing the current housing stock considerably.  The City is currently preparing to file an appeal to SCAG regarding the City’s RHNA allocation. It is anticipated that SCAG will open up the appeals process (to begin accepting applications) sometime in the next two months.  

In addition to preparation of the Housing Element Update, additional tasks to be undertaken, include:

• Review the existing Land Use Element and Zoning Code/Map to identify any inconsistencies that are created by the proposed goals, policies, and programs in the Housing Element Update in order to accommodate the potential increase in residential densities and the City’s RHNA allocation of 19,124 units. 
• Any required revisions will be made to the Land Use Element and the Zoning Code/Map to ensure consistency among the Land Use Element, Zoning Code/Map, and the Housing Element. 
• Conduct research and analysis to evaluate the potential impacts and benefits of creating a High Quality Transit Area (HQTA) Overlay District, which would be intended to promote housing production and increase residential density within multi-family zoning areas that are located within one-half mile of a high quality transit stop, as defined in Assembly Bill 1763 (AB-1763). 

Safety Element Update:

The Safety Element will be updated pursuant to Government Code § 65302(g) that requires local jurisdictions to update the Safety Element to address flood hazard zone, fire hazards, and climate adaptation and resilience strategies upon revisions of the Housing Element.  The Safety Element must be updated to comply with applicable state regulations to:

• Identify information regarding flood hazards;
• Establish a set of comprehensive goals, policies, and objectives for the protection of the community from unreasonable risks of flooding; and
• Establish a set of feasible implementation measures designed to carry out the goals, policies, and objectives established.

Environmental Justice Element:

Pursuant to Government Code § 65302(h), when two or more elements of the General Plan are amended concurrently, local jurisdictions must prepare an Environmental Justice Element or related goals, policies, and objectives integrated into other elements, that identifies disadvantaged communities within the City.  An Environmental Justice Element will be prepared to comply with applicable state required goals, policies, and objectives to:

• Identify objectives and policies to reduce the unique or compounded health risks in disadvantaged communities by means that include, but are not limited to, the reduction in pollution exposure, including the improvement of air quality, and the promotion of public facilities, food access, safe and sanitary homes, and physical activity;
• Identify objectives and policies to promote civic engagement in the public decision-making process; and
• Identify objectives and policies that prioritize improvements and programs that address the needs of disadvantaged communities.

In March 2020, two (2) separate Request for Proposals (RFP) were released for preparation of the Safety Element Update and the Environmental Justice Element, and preparation of the Housing Element Update (including additional tasks for amendments to the Land Use Element and Zoning Code/Map), respectively.  Two firms submitted proposals to both RFPs: MIG, Inc. from Pasadena and De Novo Planning Group from Tustin.

To achieve cost savings, efficiency and coordination, selection of a preferred consultant has been recommended to assist with preparation of the Safety Element Update, the Environmental Justice Element, and the Housing Element Update (including additional tasks for amendments to the Land Use Element and Zoning Code/Map). 

The selection process comprised of an evaluation team who analyzed all proposals and conducted an interview process of the proposers. The average weighted scores of the MIG, Inc. Housing Element proposal and the Safety/Environmental Justice Element proposal was 4.14 and 4.19, respectively.  The average weighted scores of the De Novo Planning Group Housing Element proposal and the Safety/Environmental Justice Element proposal was 3.76 and 3.50, respectively.

A summary of the project cost is detailed below:

The evaluation team recommends MIG, Inc. to assist with all requested tasks in the preparation of the Safety Element Update, the Environmental Justice Element, and the Housing Element Update (including additional tasks for amendments to the Land Use Element and Zoning Code/Map). The consultant is qualified by virtue of experience and expertise to accomplish the services requested and has a clear understanding of the City’s objectives.  Qualifications of MIG, Inc. include:

• Prepared the last two Housing Elements for the City of Garden Grove.  Both Housing Elements were completed on time and received HCD certification.
• Prepared the Garden Grove Mixed Use Zoning Code Update in 2012.
• Prepared Garden Grove’s 2010-2015 Consolidated Plan.
• Prepared a more detailed and comprehensive budget and cost breakdown for all requested tasks and services.  
• Committed to a feasible schedule of milestones, with completion of each project by their respective deadlines.
• Displayed a strong understanding of Housing Element, Safety Element, and Environmental Justice Element law, including recent legislation adopted by the State.
• The MIG, Inc. team provides a good mix of familiarity with the City, project management, and environmental assessment.

The contract amount is $500,585 and would be funded in part with general fund and planning grants awarded by the State. Funds are available in the adopted FY 2020-21 budget.

It is recommended that the City Council:

• Award a contract to MIG, Inc. for the preparation of the Safety Element Update, the Environmental Justice Element, and the Housing Element Update including additional tasks for amendments to the Land Use Element and Zoning Code/Map, in the amount of $500,585, for Fiscal Year 2020-21; and
  
  
• Authorize the City Manager or authorized designee to execute the Professional Services Agreement on behalf of the City and to make minor modifications as appropriate; and
  
  
•  Authorize the City Manager or authorized designee to execute amendments to the said Agreement, including the authorization to increase the compensation to a higher amount not to exceed 10% of the total contract amount, provided sufficient funds are available.

By:  Chris Chung, Urban Planner