Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  23-000007

 

MEETING DATE:

03/28/23

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

OC Public Works   (Approved)

Department contact person(s):

Amanda Carr (714) 955-0601 

 

 

Justin Kirk (714) 667-8895

 

 

Subject:  Approve County of Orange General Plan Progress Report

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

                    Concur

No Legal Objection

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost:    N/A

Annual Cost:               N/A

 

 

 

    Staffing Impact:

No

# of Positions:             

Sole Source:                 N/A

    Current Fiscal Year Revenue: N/A

   Funding Source:      N/A

County Audit in last 3 years: No

   Levine Act Review Completed: N/A

 

    Prior Board Action:                  3/22/2022 #10, 3/23/2021 #4, 3/24/2020 #10, 3/26/2019 #6

 

RECOMMENDED ACTION(S):

 

 

1.

Receive and file the County of Orange General Plan Progress Report and Housing Element Implementation.

 

2.

Authorize the Director of OC Public Works or designee to submit the County of Orange General Plan Progress Report and Housing Element Implementation to the California Department of Housing and Community Development and the Governor's Office of Planning and Research.

 

 

 

 

SUMMARY:

 

Submittal of the County of Orange General Plan Progress Report and Housing Element Implementation to the California Department of Housing and Community Development and the Governor's Office of Planning and Research will ensure compliance with Government Code Section 65400(a).

 

 

 

BACKGROUND INFORMATION:

 

Government Code Section 65400(a) requires that all cities and counties provide an annual General Plan (GP) Progress Report and Housing Element (HE) Implementation Report (Report) to the California Department of Housing and Community Development (HCD) and the Governor's Office of Planning and Research (OPR) regarding GP implementation and progress toward meeting their Regional Housing Needs Assessment (RHNA) allocation. The four previous County of Orange (County) GP Progress Reports were approved by the Board of Supervisors (Board) on March 26, 2019, March 24, 2020, March 23, 2021, and March 22, 2022; and were subsequently filed with HCD and OPR.

 

General Plan Status

The County’s GP contains all state-mandated elements: Land Use, Circulation (Transportation), Housing, Resources (Conservation), Open Space, Noise and Safety and two optional elements: Public Services and Facilities, and Growth Management. The HE sets forth the policies and programs that each jurisdiction will undertake to facilitate the provision of housing at all income levels during the current planning period. The County’s Fifth Cycle HE covered the previous planning period from 2014-2021. The County’s Sixth Cycle HE for the current planning period (2021-2029) was submitted to HCD on December 9, 2022, for a second round of review for compliance with state law and substantial compliance determination. Upon receiving the determination, the Sixth Cycle HE will be submitted to the Board for adoption.

 

General Plan Implementation

State law allows each jurisdiction to amend the elements of its GP, as needed. The GP Amendment Land Use Element (LUE) LUE 22-01 was adopted by the Board on September 27, 2022. The amendment updated the LUE to ensure consistency with the HE and included the following: 1) addition of a discussion regarding the applicability of the Housing Opportunities Overlay District (HOOD) regulations to the commercial and industrial land use categories since 2006; 2) addition of affordable multifamily housing to the table of allowable uses in commercial and industrial land use categories; and 3) updated demographic data specifically regarding population density.

 

Zoning Code Amendment

On September 27, 2022, in conjunction LUE 22-01, the Board adopted Zoning Code Amendment CA 22-01 to amend the HOOD. This amendment increased the base density of affordable housing developments to 70 units per acre on commercial and industrial zoned parcels and in high-density residential zoning districts. This higher density will assist the County in meeting its RHNA allocation and facilitate an increase in the number of affordable multifamily rental units throughout the unincorporated areas.

 

Implementation of Housing Action Plan

The County’s HE contains a Housing Action Plan that describes the policies, programs and actions the County will undertake to facilitate the construction of new housing units and preservation of existing housing stock during the planning period. The 2022 GP Progress Report (Attachment B) contains information on the efforts made during 2022, including assistance provided to first-time homebuyers.

 

Progress Toward Meeting RHNA Allocation

The 2022 GP Progress Report also includes information on the County's progress toward meeting its RHNA allocation for the current planning period on an annual basis. Prior to each planning period, the RHNA allocation for each Orange County jurisdiction, including the County, is developed by the Southern California Association of Governments (SCAG) in consultation with HCD. The allocation represents the estimated number of new housing units per income category that are needed to meet the projected population growth during the planning period.

 

The Sixth Cycle Planning Period began on October 16, 2021. The 2022 GP Progress Report contains information on the Sixth Cycle Planning Period, as depicted in the tables below.

 

The County’s RHNA allocation for the Sixth Cycle Planning Period (2021-29) is 10,406 units and is divided among four targeted income levels: Very-Low (50 percent of Average Median Income (AMI)), Low (80 percent of AMI), Moderate (100 percent of AMI) and Above-Moderate (120 percent of AMI). The AMI for Orange County in 2022 was $119,100, based on a four-person household.

 

County Progress Toward Meeting Sixth Cycle RHNA Allocation 2021-2029

(October 16, 2021 – December 31, 2022)

 

Income Levels

Extremely Low/Very Low

Low

Moderate

Above Moderate

Total

Total Units Needed 2021 - 2029

3,139

1,866

2,040

3,361

10,406

Percent of Income Category Needed

30.2%

17.9%

19.6%

32.3%

100%

Completed Units 10/16/2021 - 12/31/2021

0

0

0

26

26

Completed Units 1/1/2022 – 12/21/2022

21

48

0

299

368

Remaining Units Needed 2021 - 2029

3,118

1,818

2,040

3,036

10,012

Percent of Category Need Remaining

99.33%

97.4%

100%

90.3%

96.2%

Source: SCAG and County 2022

 

The table below reflects the number of new housing units permitted in each supervisorial district during 2022.

 

Completed Units for New Housing Units

by Income Category and Supervisorial District 2022*

 

Supervisorial District

Very Low

Low

Moderate

Above Moderate

Total

1

21

48

0

20

89

2

0

0

0

8

8

3

0

0

0

20

20

4

0

0

0

11

11

5

0

0

0

240

240

Total

21

48

0

299

368

* County Supervisorial District Boundaries 2022-2032

 

The progress toward meeting the County's Sixth Cycle Planning Period (2021-2029) RHNA allocation will also be reported in subsequent Annual Reports.

 

The Ranch Plan Planned Community

The 2022 GP Progress Report contains information regarding updates to the Ranch Plan Planned Community, the largest planned community still under development in the unincorporated area. Since the grand opening of Planning Area 1 in 2013, Rancho Mission Viejo and neighborhood builders have completed and sold/rented 1,247 housing units in Sendero PA1, of which 286 are deed-restricted senior housing (Age Qualified) units. In addition, 107 senior affordable apartments have been leased. Since the grand opening of PA2 in 2015 and through the end of 2019, Rancho Mission Viejo and neighborhood builders have obtained building permits for 2,507 market rate units in Esencia PA2 and occupancy permits (closings) for 2,475 market rate units, of which 830 have been deed-restricted senior housing (Age Qualified) units. In addition, a 112-unit affordable family apartment project has been leased. The grand opening of Planning Area 3.1 (Rienda) was held on April 2, 2022, and to date, 169 homes have closed (25 percent of Planning Area 3.1). Planning Area 3.2a is scheduled for a grand opening January 2023, which will feature 145 deed-restricted senior housing (Age Qualified) and 134 market rate for sale units. Planning Area 3.2b is currently being processed with six neighborhood builders for a total of 514 units. The grand opening for Planning Area 3.2b is tentatively scheduled for the 4th quarter of 2023.

 

Housing Funding Strategy

In June 2018, the Board filed the Housing Funding Strategy (Strategy), which established the goal to develop 2,700 units of supportive housing throughout Orange County. Since the adoption of the Strategy in 2018, current projections indicate that at the end of seven years (2025) there will be 1,643 supportive housing units produced towards the 2,700-unit goal. This includes the current supportive housing units in development, totaling 1,232 units, which are currently at various stages of completion, under construction and/or in the process of obtaining financing. There are an additional 1,046 of general affordable housing units in the planning phase. Projecting out through 2025, there is currently a gap of 1,057 supportive housing units still needed to achieve the goal of 2,700 units of supportive housing units. On December 17, 2019, the Board authorized issuance of the 2020 Supportive Housing Notice of Funding Availability (2020 NOFA) with up to $13 million and up to 200 Housing Choice Project-Based Vouchers (PBVs) to facilitate the development of supportive housing throughout Orange County, including unincorporated areas, and approved subsequent allocations to the 2020 NOFA making additional funding and PBVs available for supportive housing development. To date, the County has received 19 applications requesting 367 PBVs and approximately $31.6 million in combined requests.

 

On December 20, 2022, the Board filed the 2022 Strategy Update (2022 Strategy), which identifies an updated goal of producing 2,396 units of supportive housing by 2029 to meet the current needs based on the 2022 Point In Time count. Current projections estimate a funding gap of $458 million in capital and $495 million in operating subsidies for 2,396 units. The 2022 Strategy also includes information on how these units are a subset of the region's RHNA unit numbers that are being incorporated into Cities and County HE.

 

Supportive Housing

During the COVID-19 Pandemic (Pandemic), the state developed the Homekey Program (Homekey) to serve people experiencing homelessness or those who were at risk of homelessness and who are also at risk of serious illness from the Pandemic. In Round 1 of Homekey, the County and Jamboree Housing were awarded, as co-applicants, $20,592,000 in Homekey funds for acquisition/capital and operation of 132 units at the Stanton Inn and Suites and Tahiti Motel. These two sites operated as interim housing for approximately 18 months and have now begun the capital improvement process to transition to permanent supportive housing. The County submitted three applications in an amount of $31.515 million for the Homekey Round 2 in advance of the January 31, 2022, deadline for the bonus award and geographic pools. The County was awarded all three Homekey Round 2 applications. Two projects will support the rehabilitation of motels to create 109 units of affordable and permanent supportive housing currently underway. One of the projects began operation as interim housing in October 2022 and provides 57 units of non-congregate shelter for individuals experiencing homelessness and will transition to permanent supportive housing at a later date. Additionally, the County provided funding in support of the City of Anaheim’s Homekey Round 2 application for the Studio 6 Motel now called Anaheim North Harbor. This project was awarded $ 21,227,959 in Homekey Round 2 funding and currently provides 80 units of non-congregate shelter for individuals experiencing homelessness and will transition to permanent supportive housing at a later date.

 

On June 15, 2020, the County approved Casa Paloma, a 4-story, 71-unit affordable and permanent supportive housing project in Midway City with two manager’s units, includes 48 extremely low-income units (30 percent AMI or below), and 21 very-low-income units (50 percent AMI or below). The proposed project was submitted and approved under the HOOD regulations. Casa Paloma received its certificate of occupancy on September 29, 2022, and is currently in the pre-leasing process.

 

On November 20, 2018, the Board authorized the Chief Real Estate Officer to execute the purchase of 2229 S. Yale Street in the City of Santa Ana for development of a viable site for a full-service shelter (Yale Navigation Center). The County closed escrow on the property on January 11, 2019. On November 19, 2019, the Board approved the Cooperation and Implementation Agreement and Ground Lease with Shelter Providers of Orange County, Inc. dba HomeAid Orange County to allow for the improvements on the County-owned property. The Yale Navigation Center replaced the existing Courtyard Transitional Center and provides up to 425 beds for individuals experiencing homelessness from the Central Service Planning Area. On November 17, 2020, the Board approved a contract with People Assisting the Homeless for the operations of the shelter and supportive services to be provided to participants. The Yale Navigation Center began operation in January 2021 and continues to provide emergency shelter beds and support services to individuals experiencing unsheltered homelessness in the Central Service Planning Area. The County has developed a significant safety net of emergency shelter beds to stabilize individuals experiencing homelessness and assist many to transition to permanent housing.

 

Compliance with CEQA: This action is not a project within the meaning of CEQA Guidelines Section 15378 and is therefore not subject to CEQA, since it does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The approval of this agenda item does not commit the County to a definite course of action in regard to a project since the action is a submittal of an annual Report to ensure compliance with Government Code Section 65400(a). This proposed activity is therefore not subject to CEQA. Any future action connected to this approval that constitutes a project will be reviewed for compliance with CEQA.

 

 

 

FINANCIAL IMPACT:

 

N/A

 

STAFFING IMPACT:

 

N/A

 

REVIEWING AGENCIES:

 

OC Health Care Agency
OC Community Resources

 

ATTACHMENT(S):

 

Attachment A - Government Code Section 65400(a)
Attachment B - County of Orange General Plan Progress Report