AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 22-000737
MEETING DATE:	09/27/22
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: Adopt General Plan Amendment LU 22-01 and Zoning Code Amendment CA 22-01

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Resolution(s) and Ordinance(s)

Public Hearing

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years: No

Prior Board Action: 11/17/2020 #30, 7/28/2020 #28, 2/25/2020 #17, 1/28/2020 #29

RECOMMENDED ACTION(S):

Find that Final Negative Declaration No. IP 22-0133, prepared for Housing-Related Updates to the County of Orange General Plan and Comprehensive Zoning Code, reflects the independent judgment of the County of Orange as lead agency and satisfies the requirements of CEQA for the proposed Housing-Related Updates to the County of Orange General Plan and Comprehensive Zoning Code. Adopt Negative Declaration No. IP 22-0133 and make the following additional findings:

The Negative Declaration and comments on the Negative Declaration received during the public review process were considered and Negative Declaration No. IP 22-0133 is adequate in addressing the impacts related to the Housing-Related Updates to the County of Orange General Plan and Comprehensive Zoning Code Project;

On the basis of the whole administrative record, there is no substantial evidence that the Housing-Related Updates to the County of Orange General Plan and Comprehensive Zoning Code Project, will have a significant effect on the environment; and

Negative Declaration No. IP 22-0133 is adequate to satisfy the requirements of CEQA for the proposed Housing-Related Updates to the County of Orange General Plan and Comprehensive Zoning Code Project.

2.	Read the title of the Ordinance.
3.	Order further reading of the Ordinance be waived.
4.	Conduct Public Hearing.
5.	Consider the matter and adopt Resolution and Ordinance to adopt:

General Plan Amendment LU 22-01 – Land Use Element; and

Zoning Code Amendment CA 22-01 – Housing Opportunities Overlay District and Technical Revisions.

SUMMARY:

Adoption of General Plan Amendment LU 22-01 – Land Use Element and Zoning Code Amendment CA 22-01 – Housing Opportunities Overlay District and Technical Revisions will ensure compliance with state-mandates.

BACKGROUND INFORMATION:

The Board of Supervisors (Board) adopts amendments to the County of Orange (County) General Plan and Comprehensive Zoning Code, as needed. Previously, the Board adopted an amendment to Transportation Element on February 25, 2020, and to the Land Use, Transportation and Growth Management Elements on November 17, 2020. Similarly, the Board most recently adopted amendments to the Zoning Code on January 28, 2020, and July 28, 2020.

The County is in the process of completing its Housing Element Update for the 6th Housing Element Update Cycle, as mandated by state law. Each update provides goals, policies and objectives the County will pursue in order to meet its existing and projected housing needs for the next eight-year planning period, including a land inventory addressing the County’s allocation of the Regional Housing Needs Assessment (RHNA) assigned by Southern California Association of Governments. More specifically, the Housing Element Update will (1) analyze existing housing stock, projected housing needs and availability of housing for special needs groups; (2) provide a Land Inventory (an inventory of land suitable for residential development); (3) identify and analyze potential and actual barriers to the construction of new housing units; and (4) identify specific programs the County will undertake to achieve its stated goals and objectives.

The County’s Land Inventory must list sites available for housing development during the 6th Housing Element Cycle (planning period). These sites must be zoned to provide enough density to adequately accommodate the County’s RHNA allocation of housing units at all income levels. The County’s RHNA allocation for the 6th Cycle (2021 to 2029) is 10,406 total housing units, which is almost double the County’s previous 5th Cycle (2013-2021) allocation of 5,272 housing units. In its Housing Element, the County must also include a description of the programs it will implement to ensure the housing needs of the unincorporated area will be met during the next planning period, including how it will facilitate the construction of 10,406 new housing units.

One of the programs included in the County’s Draft 6th Cycle Housing Element Update is to revise the Housing Opportunities Overlay District (Zoning Code Section 7-9-44) regulations to allow higher densities for projects providing affordable multifamily housing. Allowing higher densities on sites designated for commercial and industrial uses and in high-density residential areas is intended to facilitate the development of affordable housing in the unincorporated area during the next planning period. This program will also require the amendment of the County’s Land Use Element (LUE) to ensure internal consistency with the Housing Element Update.

Pursuant to Government Code § 65583(c)(1)(A) the County was required to adopt a substantially compliant Housing Element within 120 days (February 17, 2022) of the statutorily required deadline of October 15, 2021. Because the County did not adopt a substantially compliant Housing Element by the required deadline, the County is required to complete all required subsequent Zoning Code and General Plan amendments no later than October 15, 2022.

General Plan Amendment LU 22-01 LUE (Attachment D)

The LUE is one of nine elements of the County’s General Plan. It describes objectives, policies and land use patterns for all unincorporated territory in both narrative and graphic terms and establishes development criteria and standards, including population density and building intensity. State law requires the LUE to achieve internal consistency with all elements of the General Plan, including the County’s Housing Element. Although the LUE provides the basis for land use decisions, it does not replace or supersede any of the other General Plan elements. Instead, the LUE complements the other elements by incorporating and implementing their land use concerns and recommendations.

The proposed amendment to the LUE is limited to only those revisions required to ensure consistency with the Housing Element and includes 1) addition of a discussion regarding the applicability of the Housing Opportunities Overlay District 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.

In addition to the demographic data, the LUE contains much information that requires updating, but is not part of this amendment. A comprehensive update that will bring up-to-date all of the Elements of the County’s General Plan, including the LUE, is currently underway.

Zoning Code Amendment CA 22-01 (Housing Opportunities Overlay District and Technical Revisions) (Attachment E)

Housing Opportunities Overlay District. Since 2006, affordable housing development has been a permitted use on parcels zoned for commercial and industrial uses through the implementation of the Housing Opportunities Overlay District regulations. Several affordable housing developments have replaced underutilized sites and attractive nuisances that had become problematic in their neighborhoods. The availability of this alternative permitted use has resulted in a marked increase in the number of affordable rental units for the residents of the unincorporated area.

The Housing Opportunities Overlay District regulations have been amended over the years to expand the Overlay District to high-density residential zoning districts and to increase the base density of commercial and industrial zoned parcels from 25 dwelling units/acre to the current density of 43 dwelling units/acre. This proposed amendment will increase the base density of affordable housing developments to 70 dwelling units/acre on commercial and industrial zoned parcels and in high-density residential zoning districts. In high-density residential zoning districts, only parcels without an existing multifamily residential development will be eligible to take advantage of this increase in density.

Although the proposed increase in density may seem large, the County has limited options to meet its 6th Cycle RHNA allocation. The County must either find new residential sites or increase density on existing residential sites to demonstrate to the state that the County can accommodate its RHNA allocation. Increasing the density on already high-density residential developments will both help the County meet its RHNA and is intended to facilitate an increase in the number of affordable multifamily rental units throughout the unincorporated areas.

Technical Revisions. In addition to the proposed amendment to the Housing Opportunities Overlay District regulations, the following revisions are also proposed: 1) substituting the decision-maker for approval of future revisions of the Orange County Housing Opportunities Manual from the Planning Commission (PC) to the OC Public Works Deputy Director of OC Development Services; addition of Low-Barrier Navigation Centers to the Housing Opportunities Overlay District as a permitted use pursuant to state law; 3) adding affordable housing developments to the list of permitted uses in Zoning Code Section 7-9-33, Commercial Districts and Zoning Code Section 7-9-34, Employment Districts; 4) additional corrections to typographical errors, omissions and re-numbering.

Planning Commission Action

On August 24, 2022, the PC held a public hearing and considered proposed General Plan Amendment LU 22-01 LUE and Zoning Code Amendment CA 22-01 (Housing Opportunities Overlay District and Technical Revisions) and voted to adopt PC Resolution No. 2022-01, which recommends adoption by the Board to amend the County’s LUE to incorporate affordable housing developments as a permitted use in commercial and industrial land use categories and the Zoning Code to revise the Housing Opportunities Overlay District to increase the maximum density for affordable housing developments, and other minor revisions (Attachments F and G).

Compliance with CEQA: Initial Study/ Negative Declaration (IS/ND) No. IP 22-0133 was prepared to study the potential environmental impacts of the proposed project (Attachment A). IS/ND No. 22-0133 was made available for public review on the County website from July 12, 2022, to August 10, 2022. The Notice of Intent to Adopt a Negative Declaration (NOI) was emailed to Housing Distribution list serve and advisory committees. In addition, the NOI was posted at County Administration South, Hall of Administration bulletin board, and uploaded to the State Clearinghouse (SCH) CEQAnet database within the Office of Planning and Research (assigned SCH # 2022070228).

One letter, with two comments were received during the public review period from the Community Engagement Coordinator of Rossmoor Homeowners Association. The commentor raised concerns regarding potential rezone and increased densities. As noted in the IS/ND No. IP 22-0133, project implementation does not grant any land use entitlements, authorize development of any specific development project, change base zoning districts, or require any direct physical changes to land or existing development. The comments do not present substantial evidence of a fair argument that the proposed project may have a significant impact on the environment.

Based on IS/ND No. IP 22-0133, and the administrative record as a whole, there is no substantial evidence of a fair argument that the project may have a significant impact on the environment. Therefore, the adoption of the IS/ND No. IP 22-0133, satisfies the requirements of CEQA for the project.

FINANCIAL IMPACT:

N/A

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Initial Study/ Negative Declaration (IS/ND) No. IP 22-0133
Attachment B - Board of Supervisors Resolution – LU 22-01
Attachment C - Exhibit A to Board of Supervisors Resolution
Attachment D - Exhibit B to Board of Supervisors Resolution
Attachment E - Board of Supervisors Ordinance – ZCA 22-01
Attachment F - Planning Commission Staff Report – August 24, 2022
Attachment G - Planning Commission Resolution No. 2022-01
Attachment H - Proposed General Plan Amendment LU 22-01 - Land Use Element – Redline Version
Attachment I - Proposed Zoning Code Amendment CA 22-01 - Housing Opportunities Overlay District and Technical Revisions - Redline Version
Attachment J - Government Code Section 65583(c)(1)(A)