Item Coversheet

Agenda Item - 4.a.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Lisa L. Kim

From:Niki Wetzel
Dept.:City Manager 

Dept.: Community Development 
Subject:

Introduction and first reading to consider adopting an Ordinance approving Amendment No. A-037-2023; and adoption of a Resolution to consider approving General Plan Amendment No. GPA-002-2023 that includes updates to the Adopted 2021-2029 Housing Element. (Action Item)

Date:10/10/2023

OBJECTIVE

To transmit a recommendation from the Planning Commission to the City Council to: (i) adopt a General Plan Amendment (GPA-002-2023), which includes updates to the Adopted 2021-2029 Housing Element and an amendment to the Land Use Element to change the Land Use Designation of a property located at 13621 Harbor Boulevard (Assessor’s Parcel No. 100-123-01), from Industrial (I) to International West Mixed Use (IW); and (ii) adopt a Zoning Map Amendment (A-037-2023) to revise the Zoning Map to implement the updates to the Housing Element and to clarify the sites intended to be included in the International West Mixed Use Overlay and the Industrial/Residential Mixed Use 1 Overlay pursuant to Ordinance No. 2925.  The focus of the General Plan and Zoning Map Amendments is to comply with State law provisions and resolve comments received from the California Department of Housing and Community Development (“HCD”) on the adopted 2021-2029 Housing Element, in order to obtain HCD certification of the City’s Housing Element.

 

In conjunction with this request, the City of Garden Grove will consider a determination that no further review under the California Environmental Quality Act (“CEQA”) is required pursuant to Public Resources Code Section 21166 and CEQA Guidelines Sections 15168 and 15162 because the proposed General Plan and zoning amendments implement the General Plan update analyzed in the City of Garden Grove Focused General Plan Update and Zoning Amendments Environmental Impact Report, State Clearinghouse No. 2021060714 (“Garden Grove General Plan Update and Focused Zoning Amendments”), potential impacts of the General Plan and zoning amendments fall within the scope of the General Plan Update EIR, and the General Plan and zoning amendments will not result in any new significant impacts or a substantial increase in the severity of previously identified significant impacts.

BACKGROUND

The Housing Element, a State-required chapter of the City’s General Plan, identifies programs and policies to further the goal of meeting the housing needs of existing and future residents for the production of safe, decent, and affordable housing for all persons in the community.  This plan is required by State Housing Law and must be updated every eight years.  Furthermore, the Housing Element must be certified by HCD.

 

HCD Letter of Substantial Compliance - August 14, 2023

On August 14, 2023, the City received a formal response letter (see Attachment 4 of the Planning Commission Staff Report dated September 21, 2023) from HCD reporting the results of its review of the City's June 2023 Draft Revised Adopted 2021-2029 Housing Element submission. The letter, in part, states that HCD had found the City's submitted Draft Housing Element to "substantially comply with State Housing Element Law" and that it "meets statutory requirements". The letter further indicates that the City must make specific findings related to non-vacant sites as part of the resolution adopting the Housing Element.

 

On August 17, 2023 and August 22, 2023, City Staff presented an update to the Planning Commission and City Council, respectively, during their meetings, which are open to the public, and provided the following:

 

  • An overview of the Housing Element and RHNA;
  • Highlights of community engagement conducted related to the Housing Element and RHNA;
  • An overview of the proposed revisions to the Adopted Housing Element; and
  • Current status of the Housing Element and the next steps in the process.

 

On September 21, 2023, the Garden Grove Planning Commission held a public hearing to consider General Plan Amendment No. GPA-002-2023 and Amendment No. A-037-2023. There were no speakers from the public to address this item. No public comments were received.  By a vote of 5-0 (with 2 commissioners absent), the Planning Commission adopted Resolutions (6069-23 and 6070-23) recommending that the City Council: (i) adopt a General Plan Amendment (GPA-002-2023), which includes updates to the Adopted 2021-2029 Housing Element and an amendment to the Land Use Element to change the Land Use Designation of a property located at 13621 Harbor Boulevard (Assessor’s Parcel No. 100-123-01), from Industrial (I) to International West Mixed Use (IW); and (ii) adopt a Zoning Map Amendment (A-037-2023) to revise the Zoning Map to implement the updates to the Housing Element and to clarify the sites intended to be included in the International West Mixed Use Overlay and the Industrial/Residential Mixed Use 1 Overlay pursuant to Ordinance No. 2925.

 

Prior to the October 10, 2023, City Council meeting, a link to the digital copy of the Draft Revised Adopted 2021-2029 Housing Element was provided to the City Council and also made available on the City’s Housing Element website (https://ggcity.org/housing-element). The latest September 2023 version of the Draft Housing Element includes non-substantive updates made to the previous June 2023 version of the document to address typos and document formatting.

DISCUSSION

General Plan Amendment:

 

The proposed amendment includes updates to certain sections in the body of the Housing Element. The revisions address HCD’s comments and requests, primarily, to:

 

  • Provide additional and/or updated data related to topics such as homelessness and housing development trends;
  • Developing a comprehensive criteria to demonstrate development feasibility of nonvacant lower income sites;
  • Providing additional exhibits and maps;
  • Identifying the City’s prior Housing Element accomplishments; and
  • Listing new and/or strengthened meaningful actions in certain Housing Element programs.

 

Detailed summaries of the proposed updates are provided in Attachment 5 of the Planning Commission Staff Report, dated September 21, 2023, in Table A, titled “Responses to HCD Comments Matrix”.

 

Revision to Housing Element Sites Inventory:

 

The Housing Element’s Sites Inventory identifies sites that demonstrate feasibility to be redeveloped with residential units during the planning period.  Because Garden Grove is an entirely built out city with very limited vacant land available, a large majority of the properties identified in the Sites Inventory are underutilized nonvacant sites.  HCD Staff requested additional analysis, specifically for lower-income sites, demonstrating that existing uses on nonvacant sites would not be an impediment to residential development and are likely to discontinue during the planning period.

 

To demonstrate the suitability of nonvacant sites for lower-income, a robust set of criteria called, “Criteria for Selecting Sites to Meet the Lower-Income RHNA”, was created. The suitability criteria considers several qualifying factors such as:

 

  • Developer interest to redevelop the site with housing;
  • Vacant lots;
  • Building and/or land value with property improvement value that is less than half of the land value;
  • The year the structure was built;
  • Low existing floor area ratio (“FAR”);
  • Existing leases set to expire;
  • Deteriorating building conditions, and
  • High tenant vacancy.

 

After applying the new criteria to the full list of sites inventory properties (which includes over 2,000 properties), the list was re-reviewed to determine necessary revisions and updates to the Sites Inventory, which consisted of: The addition of fifteen (15) properties to the Sites Inventory; the removal of certain properties from the Sites Inventory to address typographical issues and to reflect current development conditions; and the re-designation of the RHNA income category of a number of existing sites.  The updates to the Sites Inventory address HCD’s request for additional analysis of nonvacant sites for lower-income households and also ensures the City’s total RHNA accommodates the housing needs for all income levels.

 

In conjunction with the updates to the Sites Inventory, an amendment to the City’s General Plan Land Use Map is proposed to modify the General Plan Land Use Designation of a Sites Inventory property, located at 13621 Harbor Boulevard, from Industrial (I) to International West Mixed Use (IW).  The abutting property to the east is already included in the Sites Inventory.  Both properties, which are under the same ownership, are connected and function as a single integrated development.  When the Adopted Housing Element was approved in 2021, the rear portion of this development was mistakenly not included in the Sites Inventory. The intent of the proposed General Plan Amendment is to rectify this error by facilitating the property’s inclusion into the Sites Inventory, and to establish the International West designation to allow residential development.

 

Zoning Map Amendment:

 

The proposed Zoning Map Amendment will revise the City’s Official Zoning Map to implement, and ensure consistency with, the proposed updates to the Housing Element.  The City’s Official Zoning Map will be revised to cover one (1) property with the International West Mixed Use Overlay and cover ten (10) properties with the Industrial/Residential Mixed Use 1 Overlay. The purpose of the Mixed Use Overlay zone is to allow for residential and mixed-use development in addition to uses regulated by the underlying zoning.

 

The proposed Zoning Map Amendment will also clarify sites intended to be included in the International West Mixed Use Overlay and the Industrial/Residential Mixed Use 1 Overlay, pursuant to Ordinance No. 2925.  As attachments to Ordinance 2925, Exhibits A through E, which includes maps and a list of parcels, purport to show the properties included in the Mixed Use Overlay Zones.  Upon further review, Staff discovered a clerical discrepancy involving fifteen (15) properties that were shown on the Exhibit A and C maps as being included in the overlays, but were inadvertently not listed in Exhibit E.  The proposed Zoning amendment will correct this clerical discrepancy by including these properties in Exhibit E listing all of the parcels to which the Mixed Use Overlay (MU) Zone is intended to apply.

 

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

 

On November 9, 2021, the City Council certified a comprehensive programmatic Environmental Impact Report (or EIR) for the Focused General Plan Update and Zoning Amendments, which included approval of the currently adopted Housing Element.  The EIR analyzed the potential programmatic environmental impacts of adding 19,251 potential housing units.  The proposed revised Housing Element, which HCD has indicated meets the requirements of State law, calls for 19,239 units, which is less than what was previously analyzed in the EIR. The proposed revised Housing Element and Zoning Map Amendments are within the scope of the EIR, and would not result in any new significant impacts or a substantial increase in the severity of any previously identified significant impacts.  Accordingly, City staff believes no further CEQA analysis is required.

FINANCIAL IMPACT

None.

RECOMMENDATION

It is recommended that the City Council:

 

  • Conduct a Public Hearing;
  • Adopt the attached the Resolution approving General Plan Amendment No. GPA-002-2023 (i) to revise and update the Adopted 2021-2029 Housing Element consistent with the changes reflected in the June 2023 draft approved by HCD and to make additional non-substantive typographical corrections; and (ii) to amend the General Plan Land Use Designation of a property located at 13621 Harbor Boulevard (Assessor’s Parcel No. 100-123-01), from Industrial (I) to International West Mixed Use (IW); and
  • Introduce and conduct the first reading of an Ordinance approving Amendment No. A-037-2023 to revise the Zoning Map to implement the updates to the Housing Element and to clarify the sites intended to be included in the International West Mixed-Use Overlay or the Industrial/Residential Mixed Use 1 Overlay pursuant to Ordinance No. 2925.



ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Planning Commission Staff Report dated September 21, 20239/27/2023Backup MaterialPlanning_Commission_Staff_Report_dated_September_21__2023.pdf
Planning Commission Resolution No. 6069-23 (GPA-002-2023)9/27/2023Backup MaterialPlanning_Commission_Resolution_No._6069-23_(GPA-002-2023).pdf
Planning Commission Resolution No. 6070-23 (A-037-2023)9/27/2023Backup MaterialPlanning_Commission_Resolution_No._6070-23_(A-037-2023).pdf
Planning Commission Minute Excerpt of September 21, 20239/27/2023Backup MaterialPlanning_Commission_Minute_Excerpt_of_September_21__2023.pdf
Draft City Council Resolution (GPA-002-2023)9/27/2023ResolutionDraft_City_Council_Resolution_(GPA-002-2023).pdf
Draft City Council Ordinance (A-037-2023)9/27/2023OrdinanceDraft_City_Council_Ordinance_(A-037-2023).pdf