RESOURCE MANAGEMENT AGENCY - B. BARNES (To be heard at 10:00 a.m. or soon thereafter as the matter maybe heard)

Make CEQA Findings, Adopt Addendum to EIR, and Accept introduction & waive further reading of an ordinance amending Chapter 21.03 of Title 21 of the San Benito County Code (County of San Benito Affordable Housing Regulations), and continue the matter to October 11, 2016 at 10:00 a.m. for final adoption.  APPLICANT: San Benito County Location: San Benito County (county-wide).

SBC FILE NUMBER: 790

On April 12, 2016 your Board adopted the Housing Element of the 2035 General Plan (General Plan Amendment 15-49), and addendum to the General Plan Final Environmental Impact Report (Amendment GPA 09-42) and to the Mitigated Negative Declaration (GPA 09-43), which together frame the County’s housing policy. The 2016 Housing Element update is substantially identical to the 2007 Housing Element, but adds policies calling for a new high density residential zone designation and expanded authorization for mobile home parks in residential zones. The Housing Element includes robust goals, objectives, and programs relating to production of affordable housing in the County, including Program HOU-2-10.  Affordable Housing Requirement: “The County shall consider developing and adopting an ordinance to require that development contribute to the local supply of affordable housing.”

At a special meeting on May 11, 2016, the Planning Commission invited affordable housing providers, developers, builders, other stakeholders, and interested members of the community to participate in a community workshop regarding affordable housing in the community. Topics included affordable and inclusionary housing requirements, in-lieu fees, appropriate location of higher density housing, affordable-by-design criteria, re-sale restrictions, and income limits. The goal of the workshop was to assist the County in constructing and implementing a new affordable housing ordinance.

Following the workshop, staff prepared a draft affordable housing ordinance, which was reviewed and discussed by the Planning Commission through duly noticed public hearings at their regular June, July, and August 2016 meetings. Substantial testimony from market rate developers, affordable housing developers, and housing advocates was received at these meetings, with many comments resulting in changes to the draft ordinance. On August 17, 2016, the Planning Commission voted to recommend adoption of the ordinance to your Board. (Commission agenda packet is attached.)

Highlights of the recommended ordinance:

·         Establishes a 15% affordable housing requirement for all residential development projects consisting of 5 or more lots;

·         Can be accomplished through on-site, off-site, or in-lieu fee approaches (depending on size of the subject development);

·         Establishes an array of moderate income, low income and very low income requirements (depending on size of the subject development);

·         Establishes procedures for both rental and affordable housing creation and monitoring and for collection and use of in-lieu fees;

·         Establishes Housing Advisory Committee (comprised of members of the Planning Commission) to advise the Board of Supervisors on matters relating to the housing element of the general plan and the inclusionary housing ordinance;

·         Establishes density bonuses, incentives or concessions for the production of housing units and/or child care facilities in accordance with Cal. Govt. Code §65915 through §65916;

·         Establishes an “affordable by design” alternative, which can be implemented through an Affordable Housing or Development Agreement.

Evidence supporting Board of Supervisors’ findings:

Program HOU-2-10 states that the County shall consider developing and adopting an ordinance to require that development contribute to the local supply of affordable housing. This policy was previously analyzed by the County through the CEQA process in the FEIR. No changes to the 2035 GPU are required, nor are any changes to the FEIR necessary due to previously unevaluated significant environmental effects that may occur as a result of the Affordable Housing Ordinance. There have been no substantial changes that were not previously analyzed, and no new information of substantial importance has been discovered.  The purpose of the Affordable Housing Ordinance is to require developers to contribute financially to affordable housing as a part of a proposed residential project. It does not increase the amount of housing constructed, or the amount of development contemplated in the General Plan.  As described more fully above and therein, the Ordinance merely places affordability and design restrictions on a percentage of housing proposed within a development. All individual development proposals that will be subject to the Ordinance will be analyzed as necessary under CEQA with the appropriate CEQA documentation prepared in connection therewith on a case-by-case basis.

Government Code §25124(b)(2) allows for the publication of a ¼ display ad in lieu of publishing a summary of an ordinance when it is determined that it is not feasible to prepare a fair and adequate summary of a proposed or adopted ordinance.  Due to the length and detailed nature of the proposed ordinance which would make it difficult and expensive to publish a fair and adequate summary, the Board is asked to order that a display ad be published.  The display ad, at approximately $250.00 per publication, will be less costly to publish than a summary of the ordinance.  The display ad is required to indicate the general nature of, and provide information about, the proposed or adopted ordinance, including information sufficient to enable the public to obtain copies of the complete text of the ordinance.  The first display ad was published on September 16, 2016.  The second publication must occur within 15 days of adoption of the ordinance.

The changes suggested by the Board of Supervisors have been incorporated into the proposed ordinance, and are shown in the attached redline version.

After reading the title of the ordinance for the record, "An Ordinance of the County of San Benito Ordinance No._______ Amending Chapter 21.03 of Title 21 of the San Benito County Code (“Affordable Housing Regulations”)":

It is respectfully recommended that the Board of Supervisors:

(1) Find that a Final Environmental Impact Report (FEIR) for the San Benito County 2035 General Plan Update (2035 GPU) was prepared by the County of San Benito in accordance with the California Environmental Quality Act (CEQA)and that the San Benito County Board of Supervisors certified and adopted the FEIR in July 2015; and

2) Find that pursuant to Section 15162 and 15164(e) of the CEQA Guidelines, the County of San Benito Board of Supervisors has determined, on the basis of substantial evidence in the light of the whole record and as set forth above, that:

   (a) The Affordable Housing Ordinance does not propose substantial changes to the General Plan which would require major revisions to the FEIR due to new or substantially more severe significant environmental effects than previously analyzed in the FEIR;

   (b) There have been no substantial changes in circumstances under which the Affordable Housing Ordinance will be undertaken that will require major revisions to the FEIR due to new or substantially more severe significant environmental effects than previously analyzed in the FEIR; and

   (c) No new information of substantial importance as described in subsection (a)(3) of Section 15164 has been revealed that would require major revisions to the FEIR or its conclusions.

3)  Adopt the Addendum included in the agenda packet, and accept introduction, waive further reading of the ordinance, and continue the matter to October 11, 2016, at 10:00 a.m. for adoption.

4)  Retroactively order that display ad regarding the proposed ordinance be published on September 16, 2016, and that a second display ad be published within 15 days of adoption of the ordinance in accordance with the California Government Code.