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2025-01-23 Planning Commission AgendaAGENDA CITY OF EL SEGUNDO PLANNING COMMISSION 5:30 PM COUNCIL CHAMBER 350 MAIN STREET EL SEGUNDO, CA 90245 JANUARY 23, 2025 MEMBERS OF PLANNING COMMISSION Jay Hoeschler, Chairperson Kevin Maggay, Vice Chairperson Mark Christian Mario Inga Vacant The Planning Commission, with certain statutory exceptions, can only take action upon properly posted and listed agenda items. Any writings or documents given to a majority of the Planning Commission, regarding any matter on this agenda, that the City received after issuing the agenda packet are available for public inspection in the Community Development Department, during normal business hours. Such documents may be posted on the City's website at www.elsegundo.oLg and additional copies will be available at the meeting. Unless otherwise noted in the agenda, the public can only comment on city -related business that is within the jurisdiction of the Planning Commission and/or items listed on the agenda during the Public Communications portion of the Meeting. Additionally, members of the public can comment on any Public Hearing item on the agenda during the Public Hearing portion of such item. The time limit for comments is five (5) minutes per person. Before speaking to the Planning Commission, please fill out a speaker card located in the Chamber Lobby. It is not required to provide personal information in order to speak, except to the extent necessary to be called upon, properly record your name in meeting minutes and to provide contact information for later staff follow-up, if appropriate. Please respect the time limits. REASONABLE ACCOMMODATIONS: In compliance with the Americans with Disabilities Act and Government Code Section 54953(g), the City Council has adopted a reasonable accommodation policy to swiftly resolve accommodation requests. The policy can also be found on the City's website at ®// r / r r / i - r . Please contact the City Clerk's Office at (310) 524-2308 to make an accommodation request or to obtain a copy of the policy. 1 Page 1 of 31 CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE PUBLIC COMMUNICATION — (Related to City Business Only — 5-minute limit per person, 30-minute limit total) Individuals who have received value of $50 or more to communicate to the Planning Commission on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the Planning Commission. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow action on any item not on the agenda. A. CONSENT 1. Approve December 12, 2024 Planning Commission Meeting Minutes. Recommendation - Approve December 12, 2024 Planning Commission Meeting Minutes. 2. Approve January 9, 2025 Planning Commission Meeting Minutes. Recommendation - Approve January 9, 2025 Planning Commission Meeting Minutes. B. PUBLIC HEARINGS C. NEW BUSINESS 3. Affordable Housing Strategic Plan Study Session Recommendation - 1. Receive and file the Affordable Housing Strategic Plan update. 2. Provide feedback and direction to staff and consultants regarding affordable housing program recommendations and next steps. 3. Alternatively, discuss and take other action related to this item. D. UNFINISHED BUSINESS E. REPORTS — COMMUNITY DEVELOPMENT DIRECTOR F. REPORTS -COMMISSIONERS G. REPORTS — CITY ATTORNEY ADJOURNMENT POSTED: DATE: January 17, 2025 TIME: 10:30 a.m. BY: Jazmin Farias, Assistant Planner 2 Page 2 of 31 MINUTES OF THE EL SEGUNDO PLANNING COMMISSION Regularly Scheduled Meeting December 12, 2024 CALL TO ORDER Chair Keldorf called the meeting to order at 5:31 p.m. PLEDGE OF ALLIGIANCE Chair Keldorf led the pledge. ROLL CALL Present: Chair Keldorf Present: Vice Chair Hoeschler Present: Commissioner Maggay Present: Commissioner Inga Present: Commissioner Christian Also present: Michael Allen, AICP, Community Development Director Also present: Eduardo Schonborn, AICP, Planning Manager Also present via zoom: Gregg Kovacevich, City Attorney Also present: Paul Samaras, AICP, Principal Planner Also present: Jazmin Farias, Assistant Planner Also present: Jonathan Moftakhar, USC Graduate Student PULBLIC/WRITTEN COMMUNICATIONS One late correspondence was received for the item B.2. A copy was distributed to the Planning Commissioners and posted on the city's website. A. CONSENT CALENDAR 1. Approval of Planning Commission Meeting Minutes: • November 14, 2024 MOTION: Approve the minutes. Moved by Commissioner Maggay, second by Commissioner Inga. Motion carried, 5-0, by the following vote: Ayes: Keldorf, Hoeschler, Maggay, Inga, and Christian. Page 3 of 31 B. NEW PUBLIC HEARINGS 2. Zone Text Amendment Regarding Right-of-way Dedications and Fees, Accessory Dwelling Unit Standards and Fees, and Public Notification Requirements for Certain Ordinances. (PS) Planning Manager Eduardo Schonborn stated that one late correspondence was received for item B.2. A copy was distributed to the Planning Commissioners and posted on the city's website. Staff is recommending for the item to be continued to the next scheduled meeting (January 9, 2025). MOTION: Continue the item to the next scheduled meeting January 9, 2025. Moved by Commissioner Maggay, second by Commissioner Inga. Motion carried, 5-0, by the following vote: Ayes: Keldorf, Hoeschler, Maggay, Inga, and Christian. C. NEW BUSINESS 3. Presentation by Graduate Students from the University of Southern California of a Hypothetical Design Project at the El Segundo South Campus Specific Plan Area. USC's project was awarded the "Silver Shovel" as the winner of the 27t" annual NAIOP SoCal UCLA vs. USC Real Estate Challenge. (JM) Staff collaborated with a five -member graduate student team from the Lusk Center at USC's Marshall School of Business and Price School of Public Policy on a NAIOP SoCal Real Estate Challenge/Competition. The USC graduate student team went into a head -to -head battle with the Ziman Center of Real Estate at UCLA to determine the highest and best use for a unique parcel of land within the El Segundo South Campus Specific Plan and took the Silver Shovel (victory) back to USC. Graduate student, Jonahtan Moftakhar, shared the team's hypothetical vision for the site with the Planning Commission. MOTION: Receive and file the presentation. 4. Study Session Regarding Senate Bill 450 and Potential El Segundo Municipal Code (ESMC) Amendments to the Single Family Residential (R-1) Zone and Urban Lot Split Regulations. (PS) Principal Planner Paul Samaras led the study session regarding Senate Bill 450 and potential El Segundo Municipal Code (ESMC) Amendments to the Single Family Residential (R-1) Zone and Urban Lot Split Regulations. Study session objectives included comparing the City's Urban Lot Split and R-1 standards, identifying standards that are inconsistent with R-1 and State Law, and determining standards to apply uniformly in the R-1 and standards to be 2 Page 4 of 31 eliminated. • Vice Chair Hoeschler inquired why the R-1 standards never addressed entry orientation. Paul advised that perhaps fewer standards make it easier to develop and properties vary in size and shape making it harder for front doors to face the street. Paul added that a factor to consider in the deliberation is that there is a lot of distinction in the R-1 zone and Urban Lot Split zone between lots that are 25 feet and under and wider lots and the door orientation is a lot more achievable in the lots that are 25 feet and under in width. • Commissioner Maggay inquired if the door orientation provision would prevent someone from building a shrubbery gate or fence that hides the front door. Paul stated that it would prevent someone from building that. He added that the city has height and visibility standards in place that prohibit that as well. • Commissioner Christian inquired if back units such as ADUs would be required to face the street. Paul advised that back unit door entry would not need to face the street as the structures orientation itself does not face a street. • Commissioners provided consensus to amend the R-1 zone standards to incorporate entry orientation for lots that have street frontage. • Commissioners discussed why the Urban Lot Split standards defer from the R-1 standards and what they were trying to achieve via those standards. Staff added that since the Urban Lot Split lots are smaller, they were trying to regulate mass and bulk of the smaller lots created via the Urban Lot Split. • Commissioners provided consensus to amend the Urban Lot Split standard to match the R-1 zone second level Floor Area Ratio of twenty- five percent. • Commissioners provided consensus to amend the Urban Lot Split standard to match the R-1 minimum step -back of two feet. • Commissioners provided consensus to amend the Urban Lot Split standard to match the R-1 limits for pitched and flat roofs. • Commissioner Christian inquired why two trees were required for Urban Lot Splits. Staff advised that the consultant at the time wanted to soften architecture and the best way to achieve that was through landscape. Commissioners provided consensus to amend the Urban Lot Split standard to include the R-1 minimum front yard landscaping and require a minimum of at least one tree. • Commissioners provided consensus to apply the R-1 standard uniformly regarding porches and verandas for Urban Lot Splits. This would no longer require a porch or veranda but allow for an encroachment of a porch and veranda if opted to do one. • Commissioners provided consensus to eliminate the alley access exception in the Urban Lot Split regulations and to amend the Urban Lot Split regulations to match the R-1 zone. 3 Page 5 of 31 • Commissioners provided consensus to amend the Urban Lot Split regulations to match the R-1 zone maximum driveway width and to use the R-1 FAR and Lot Coverage standards. • Commissioners provided consensus to amend the Urban Lot Split regulations to match the R-1 zone minimum of 22 feet and to match the current R-1 zone encroachments. • Commissioners provided consensus to amend the Urban Lot Split side yard setback standard to 10 percent of lot width with minimum of 3 feet, but maximum of 4 feet (lots over 25 feet) and a minimum of 3 feet (lots 25 feet or less). • Commissioners provided consensus to amend the Urban Lot Split standard to match the R-1 zone three-foot separation and to delete the Urban Lot Split affordability requirement. MOTION: Receive and file the presentation. 5. Election of Planning Commission Chair and Vice Chair for Calendar Year 2025. MOTION: Chair Keldorf nominated Vice Chair Hoeschler as Chair. Vice Chair Hoeschler accepted nomination. Moved by Chair Keldorf, second by Commissioner Maggay. Motion carried, 5-0, by the following vote: Ayes: Keldorf, Hoeschler, Maggay, Inga, and Christian. MOTION: Keldorf nominated Maggay as Vice Chair. Commissioner Maggay accepted nomination. Moved by Chair Keldorf, second by Commissioner Inga. Motion carried, 5-0, by the following vote: Ayes: Keldorf, Hoeschler, Maggay, Inga, and Christian. D. UNIFNISHED BUSINESS I01G'TiT� E. REPORTS — COMMUNITY DEVELOPMENT DIRECTOR OR DESIGNEE Planning Staff Planning thanked and congratulated Chair Keldorf. F. REPORTS — PLANNING COMMISSIONERS 4 Page 6 of 31 Planning Commissioners thanked and congratulated Chair Keldorf. G. REPORTS — CITY ATTORNEY None. ADJOURNMENT — the meeting adjourned at 8:23pm. The next meeting is scheduled for January 9, 2025 at 5:30 pm. Michael Allen, Community Development Director Michelle Keldorf, Planning Commission Chair Page 7 of 31 MINUTES OF THE EL SEGUNDO PLANNING COMMISSION Regularly Scheduled Meeting January 9, 2025 CALL TO ORDER Chair Hoeschler called the meeting to order at 5:30 p.m. ROLL CALL Present: Chair Hoeschler Present: Vice Chair Maggay Present: Commissioner Inga Absent: Commissioner Christian Also present: Michael Allen, AICP, Community Development Director Also present: Eduardo Schonborn, AICP, Planning Manager Also present: Joaquin Vazquez, City Attorney Also present: Paul Samaras, AICP, Principal Planner Also present: Jazmin Farias, Assistant Planner PLEDGE OF ALLEGIANCE Chair Hoeschler led the pledge. PUBLIC/WRITTEN COMMUNICATIONS One written communication was received regarding item D.1, a copy was distributed to the Planning Commission and posted on the City's website. A. CONSENT None. B. NEW PUBLIC HEARINGS None. C. NEW BUSINESS None. D. UNFINISHED BUSINESS 1. Zone Text Amendment Regarding Right-of-way Dedications and Fees, Accessory Dwelling Unit Standards and Fees, and Public Notification Requirements for Certain Ordinances (Environmental Assessment No. EA-1378 and Zone Text Amendment No. 24-03) Page 8 of 31 Principal Planner Paul Samaras presented the staff report regarding an Ordinance amendment to the El Segundo Municipal Code (ESMC) provisions regarding Residential Development Right -of -Way Dedications and Fees, Accessory Dwelling Unit (ADU) Standards and Fees, and Public Notification Requirements for Certain Ordinances. • Chair Hoeschler inquired if the city has seen housing development projects were land dedication for purposes of road widening have occurred. Paul advised that we do require land dedication, we saw this recently with Pacific Coast Commons due to the current General Plan Circulation Element requirements. He added that with the new law, there is three general provisions when dedications can be required. • Commissioner Inga inquired if dedications are approved at staff level. Paul said that they are approved via a discretionary permit (typically through a site plan review) at Planning Commission level. • Chair Hoeschler inquired if the city is anxious to now have to collect the Development Impact Fees (DIF) at the end of the project. Community Development Department added that DIF are tied directly to impacts that are create by the project which theoretically do not happen until the project is completed so we do not have a lot of angst to collect the fees until the building is going to be occupied or at the very end of the buildout. • Chair Hoeschler asked Paul if he could retouch on SB1211 as there are different numbers for existing development and proposed development for ADUs. Paul stated that the legislation does change the density limits on ADUs. For example, for multi -family properties for detached ADUs today the municipal code and state states that you can have two detached ADUs on a property the new law says that if you have an existing multi -family structure someone can propose up to eight detached ADUs on the property however the total number of detached ADUs cannot exceed the number of existing multi -family units. • Chair Hoeschler inquired if in these types of scenarios, the developers would still have to meet standards such as FAR and setbacks. Paul added that the other aspect of this law is creating these subsets of ADUs exempts them from some of the other local standards. City Attorney Joaquin Vazquez added that the state has development standards such as height, setback, square footage, and a local agency cannot impose its objective standards as long as they fit within that state standard envelope. In summary, if we are not within that then we are preempted. Meaning that the state's rules supersede ours as far as objective standards and we can only impose objective standards. • Chair Hoeschler inquired if the city has seen demand for some of these things being described. Paul advised that we have a lot of interest in constructions in ADUs in town. • Joaquin mentioned for the record that due to the public comment received there were some changes made to the ordinance from the original published agenda and it was just some citation cleanup in section 6 of the ordinance regarding ADUs and references in section 15-4A-1. MOTION: Adopt Resolution No. 2960, recommending City Council adopt an Ordinance amending the El Segundo Municipal Code (ESMC) provisions regarding Residential Development Right -of -Way Dedications and Fees, Accessory Dwelling Page 9 of 31 Unit (ADU) Standards and Fees, and Public Notification Requirements for Certain Ordinances. Moved by Vice Chair Maggay Newman, second by Commissioner Inga. Motion carried, 3-0, by the following vote: Ayes: Hoeschler, Maggay, and Inga, Christian E. REPORTS — COMMUNITY DEVELOPMENT DIRECTOR OR DESIGNEE Michael advised that we are reviewing the consultant teams for the General Plan Land Use Element update, and we are scheduled to tentatively go to council on February 28th with a contract award. The commission will be heavily involved in that process, and we will likely have one or two members of the commission be part of a designated technical advisory committee amongst staff and maybe other commission members from other commissions to drive the process. F. REPORTS — PLANNING COMMISSIONERS • Chair Hoeschler acknowledged the tragic situation our fellow Angelinos are in right now; our hearts go out to everyone in that situation. • Vice Chair Maggay added that G's here in town are doing a donation drive that goes until midnight tonight and urged the residents to please help. He also congratulated Chair Hoeschler on his first meeting as Chair. G. REPORTS — CITY ATTORNEY None. ADJOURNMENT — the meeting adjourned at 6:16 p.m. The next meeting is scheduled for January 23, 2025 at 5:30 pm. Michael Allen, Community Development Director Jay Hoeschler, Planning Commission Chair Page 10 of 31 CUT1,10,11 Planning Commission Agenda Statement E GU N D 0 Meeting Date: January 23, 2025 Agenda Heading: NEW BUSINESS Item Number: C.3 TITLE: Affordable Housing Strategic Plan Study Session :7xd91iyiIJil=1kil1-7_A0IsP►A 1. Receive and file the Affordable Housing Strategic Plan update. 2. Provide feedback and direction to staff and consultants regarding affordable housing program recommendations and next steps. 3. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: None. :l_T41,,0]:Tell] z I I] On February 1, 2022, the City Council adopted El Segundo's 6th Cycle Housing Element, which included a commitment to develop an Affordable Housing Strategic Plan (AHSP) under Program Four of the Housing Element. To facilitate community and stakeholder engagement, a public workshop and study session with the City's Planning Commission was conducted on March 24, 2022. This session provided the Commission and the public with an opportunity to review and provide input on the draft AHSP. City Council reviewed the draft AHSP and Planning Commission recommendations on June 21, 2022, and provided feedback to staff regarding their preferred proposed affordable housing programs. Staff incorporated this feedback into the final AHSP, which was subsequently adopted by the City Council on December 19, 2023. To support the implementation of the AHSP, the City retained RSG, Inc. on July 15, 2024, to provide on -call housing consulting services as needed. Page 11 of 31 Affordable Housing Strategic Plan Study Session January 23, 2025 Page 2 of 3 DISCUSSION: RSG, Inc. has been collaborating with City staff to support the production of affordable housing units in alignment with the goals outlined in the AHSP. The AHSP identifies ten key opportunities, organized into three categories —policy, programs, and funding - to advance affordable housing initiatives. Priority areas have been established to guide implementation efforts, including: A Live/Work Policy Preference An Affordable Housing Focus Area Program A Downtown Homes for Young Professionals Program • A Local Trust Fund for Affordable Housing funding strategy. Staff will provide an oral presentation to update the Planning Commission on RSG's activities, and present potential funding opportunities identified to date to help subsidize the costs of affordable housing development. Additionally, RSG will present considerations for the development of an affordable housing local preference policy to further support the City's housing objectives. CITY STRATEGIC PLAN COMPLIANCE: Goal 5: Champion Economic Development and Fiscal Sustainability Strategy D: Implement community planning, land use, and enforcement policies that encourage growth while preserving El Segundo's quality of life and small-town character. PREPARED BY: Agnes Ho, Administrative Analyst REVIEWED BY: Michael Allen, Community Development Director Page 12 of 31 Affordable Housing Strategic Plan Study Session January 23, 2025 Page 3 of 3 APPROVED BY: Michael Allen, Community Development Director ATTACHED SUPPORTING DOCUMENTS: 1. Adopted Affordable Housing Strategic Plan Page 13 of 31 il 011 ll1 SE11ULIP411 ,uO III wlis !I ing I'll IMS11011,11 11,11dicqptied C�H unmll eii q9, 202:3 Page 14 of 31 Talble of Contents Summary................................................................................................................................. 2 Background............................................................................................................................. 2 Overview of Affordable Housing.............................................................................................. 3 Benefits of Affordable Housing................................................................................................ 4 Housing -Related Public Outreach and Engagement................................................................. 4 Business Community Input .... 5 HousingEfforts in Progress...................................................................................................... 6 Affordable Housing Opportunities........................................................................................... 6 Affordable Housing Priorities................................................................................................... 7 Policy............................................................................................................................................... 7 Program........................................................................................................................................... 8 Funding .... 9 Appendix............................................................................................................................... 13 Result............................................................................................................................................ 13 Page 15 of 31 Ummary The City of El Segundo ("City") is committed to achieving a State -mandated objective of constructing affordable housing for low- and moderate -income residents, with an estimated 40% of the population eligible for this housing. On November 15, 2022, the City Council officially endorsed the Housing Element Update for El Segundo, ultimately accepted by the State Department of Housing and Community Development (HCD) in January 2023. This document delineates specific actions that the City may undertake to fulfill these State -imposed housing targets. The Affordable Housing Strategic Plan ("AHSP") outlines several strategic opportunities in alignment with the Housing Element, all geared towards advancing the creation of affordable housing within the City. Background The Southern California Association of Governments (SCAG) conducts a comprehensive assessment of anticipated housing requirements for each city and county in the Southern California region, a process referred to as the Regional Housing Needs Assessment (RHNA). For the 6th cycle Housing Element, the City has been assigned a total RHNA obligation of 521 units. Among these, 207 units are designated for extremely/very low-income households (earning less than 30%/50% of the Area Median Income or AMI, respectively), and an additional 99 units are allocated for low-income households (earning less than 80% of the AMI). It's important to note that these figures also include a carryover of 29 lower -income units (18 very low and 11 low- income units) from the 5th cycle Housing Element. Meeting RHNA goals presents a formidable challenge for the City. Currently, there are no deed - restricted affordable housing units within the City, as defined by Gov. Code § 65583 (A) (8). Progressing significantly towards achieving RHNA goals is of paramount importance for several reasons. Firstly, in 2021, HCD established a Housing Accountability Unit (HAU) with the authority to take escalating enforcement measures to ensure municipalities comply with their RHNA goals Pa Page 16 of 31 if persistent noncompliance is observed. This may involve imposing fines and further revoking local control over housing decisions. Additionally, the City's desire to create more affordable housing is driven by the fact that approximately forty percent of households in the City earn moderate incomes (less than 120% of the Area Median Income or AMI), with twenty-five percent of households earning lower incomes (less than 80% of the AMI). Furthermore, 7.8% (1,306) of the City's residents live in poverty, and 7.8% (1,306) are disabled. Yet, housing options for this significant portion of El Segundo's population are severely limited. The median sale price of condos, single-family homes, and new homes in El Segundo stands at approximately $1,466,000, well exceeding the maximum affordable purchase price of $359,325 for households qualifying as moderate income. Naturally occurring affordable housing is scarce and unreliable, often falling victim to issues such as dilapidation, overcrowding, or market forces. These circumstances underscore the need for a thoughtful, coordinated, and a strategic approach beyond the Housing Element to foster an environment conducive to increasing the supply of decent, safe, and high -quality affordable housing for all City residents. Over0ew of AffordaNe HOLJsung Affordable housing is typically defined by the U.S. Department of Housing and Urban Development as housing in which occupants pay no more than 30 percent of their gross income for housing costs, including utilities. The development of affordable housing caters to several "special needs groups" as recognized in the 2021— 2029 Housing Element of the City's General Plan. These groups encompass: • Seniors • Large households • The Homeless • Military veterans • Farmworkers • Persons with disabilities Affordable housing units frequently accommodate a diverse range of occupants, including essential workers, vulnerable young adults, and survivors of domestic violence and human trafficking. 0 Page 17 of 31 Beiriefi :s of AffordaNe Housing The advantages of affordable housing extend to: • Enabling lower -income individuals, seniors, and children to remain in the communities where they have roots • Enhancing educational outcomes for lower -income adults and children • Improving overall health by alleviating overcrowding, enhancing living conditions, and allowing more disposable income to be allocated to healthcare expenses • Stimulating local economic activity by creating construction -related employment and increasing disposable income spent on goods and services • Enhancing employers' capacity to attract and retain employees, thus maintaining competitiveness in the global economy • Reduction in the homeless population results in significant cost savings within public health and safety systems, such as police and fire departments. Moreover, affordable housing developments frequently provide a range of on -site services to residents at no cost. These services may encompass: • Children's homework tutoring programs • Children's summer camps • Life skills workshops covering topics such as financial management, nutrition, and healthcare • Job skills workshops • Supportive services for homeless residents, including case management, mental health services, and substance abuse treatment services These services can be offered by the developer and/or partnering organizations, offering residents opportunities to acquire the knowledge and skills necessary for independent living. IHousiiin .-ReII ted Pubhc Outreach airnd Engagement City staff and consultants have implemented multiple outreach initiatives to date with the goal of gathering community input to shape its housing initiatives. The following is a summary of outreach activities: • Community meeting on April 13, 2021 • Development of a City webpage for the Housing Element Update • Community survey • YouTube video regarding Housing Element Update • Social media (Facebook, Twitter, City's website, etc.) • Postcards to agencies, local businesses, non -profits, & religious facilities • Notices published in El Segundo Herald on April 8, May 13, & June 10, 2021 CI Page 18 of 31 • Joint Planning Commission/City Council meeting on June 14, 2021 • Planning Commission review of the Housing Element on September 30, 2021 & January 13, 2022 • City Council review & adoption of the Housing Element on February 1, 2022 • The Housing Element was reviewed and adopted by the City Council on February 1, 2022. • On March 24, 2022, the Planning Commission held a study session on the Affordable Housing Strategic Plan. Business Community Input The El Segundo Economic Development Corporation (ESEDC) emphasized the need for increased housing opportunities, enabling younger professionals to reside within the City. They recognized that integrating work and life aspects, such as housing, in the same city fosters employee well- being. The consensus was that more housing is essential for the thriving of the business community in the City. 0 Page 19 of 31 Housi,ing EfforLs in IPiro iress The Housing Programs outlined in the El Segundo Housing Element for the 6th Cycle represent a commendable initial step in addressing the City's unmet housing needs. Notably, three of these Programs (Programs 3, 5, and 8) have the potential to contribute to the City's affordable housing production significantly. However, additional efforts are imperative to stimulate the development of affordable housing, as the Programs outlined in the Housing Element are unlikely to yield a sufficient number of units to fulfill the City's RHNA goals. Specifically: • The properties identified in the Housing Element's Site Inventory are privately owned, and their owners may not be inclined to sell at a viable price point during this housing cycle. • The City is predominantly developed, and many existing parcels are too diminutive, even when combined, to be considered viable. This is due to various factors such as rising land costs, escalating construction expenses, increasing interest rates, and governmental funding criteria that favor large-scale projects. Building more than 30 units, and ideally 50 or more units, is imperative for the feasibility of an affordable housing development. It is highly improbable that market -rate developments will be capable of meeting the City's RHNA goals on their own, especially regarding very low-income units. To illustrate, despite being the first apartment project approved in over 30 years and exceeding the capacity of all other rezoning sites in size, density, and height (e.g., 90 units per acre compared to the 30/50 units per acre for the rezoning sites), the Pacific Coast Commons (PCC) project is expected to create 32 affordable housing units of the total 263, including 3 designated for very low-income individuals. Consequently, it would take 3.41 PCC projects to satisfy the City's low-income RHNA goals and a staggering 69 PCC projects to meet the very low-income goals. ffordaNe U-- OL]sun pport' antes The initiatives outlined in this AHSP to promote affordable housing align with, complement, and execute the Housing Programs outlined in the City's Housing Element Update, originally adopted on February 1, 2022, by the City Council. This AHSP also aligns with the Housing Goals and Policies articulated in the Housing Element to fulfill the City's RHNA affordable housing production goals. The following are five strategic goals that guide the 2021-2029 Housing Element: Goal 1: Preserve and protect the existing housing stock by encouraging the rehabilitation of deteriorating dwelling units and the conservation of the currently sound housing stock. Goal 2: Provide sufficient new, affordable housing opportunities in the City to meet the needs of groups with special requirements, including the needs of lower and moderate- 1. Page 20 of 31 income households. Goal 3: Provide opportunities for new housing construction in a variety of locations and a variety of densities. Goal 4: Remove Governmental constraints on housing development. Goal 5: Provide housing opportunities including ownership and rental, fair -market and assisted, in conformance with open housing policies and free of discriminatory practices. AffordalbIle Housing Priorities While all policy, program, and funding strategies will be studied for future implementation to spearhead affordable housing developments, the City has selected four primary strategies (in bold below) to prioritize efforts toward meeting RHNA goals. Research Design The following methodology was used to select the affordable housing strategies prioritization: • A total of ten policies, programs, and funding strategies were created to encourage the creation of affordable housing within the City of El Segundo and further implement housing element goals. • All council members were given a list with a description of all the strategies and then asked to independently recommend one policy, two programs, and one funding strategy to prioritize. 0 Council members' preferences are shown anonymously as provided in the Appendix. 0 Strategies with the highest choice are given preference for implementation. The proposed services and programs support the core vision of what the Housing Element hopes to accomplish by reducing the displacement of lower -income households, expanding affordable housing opportunities, and conserving existing housing stock affordable to lower -income households. These opportunities are categorized by policy, program, and funding. The strategies highlighted in bold were selected as the Council Member's Affordable Housing Strategies prioritization. Policy Stirateiies Ire Page 21 of 31 Live/Work Preference Policy • Codify that part of the affordable housing agreement (including, but not limited to, a Development Agreement, or Density Bonus Agreement) includes a local priority preference for people who live or work in El Segundo when applying for new affordable housing rental units Remedy or mitigate the displacement and gentrification impacts that may result from development activities Long-lasting Affordable Homes Policy • Currently, most affordability restrictions are placed for 30 or 55 years, after which time those units return to market rate It is recommended that any new pro -housing policies or development agreements include language restricting the affordable units in perpetuity. Waiver or Deferment of Fees for Affordable Homes Policy • Alleviate cost burden for affordable housing developers • Improve the competitiveness of certain affordable housing funding sources Program Strategies Helping Affordable Housing Grow Program • Give money to developers building affordable homes Buy land and encourage developers to build affordable homes there Pay developers or homeowners to keep homes affordable Restructuring Park Vista for Housing Credits Program Refinance using a government funding source that will deed -restrict the property as low-income housing Park Vista will be subject to a Land Use Regulatory Agreement (LURA) that is recorded against the property and establishes the affordability for RHNA credit Keep current residents, no rent increase Affordable Housing Focus Area Program Community survey shows residents want affordable housing in high -resource areas: o Smoky Hollow o West side of PCH between Imperial and El Segundo Blvd o E. Imperial Ave. o Downtown El Segundo These areas are competitive for tax-exempt bonds and low-income tax credits to build affordable housing because of the proximity to amenities Workforce Housing in Smoky Hollow Downtown Homes for Young Professionals to Work, Live, and Play Program E:3 Page 22 of 31 Policy Integrate work/life in the downtown area by developing more housing opportunities and cooperating with El Segundo Development Corporation and the City's Economic Development staff to attract younger professionals IFunding Strategies Charge fees and other in -lieu fees for new developments • Commercial Linkage Fees may be charged to developers of new, non-residential buildings including office, retail, industrial, and manufacturing facilities to generate revenue for the City's Affordable Housing Fund • In -lieu fees, such as the in -lieu fee of $5.3 million charged by the City in 2017 to the developer of a former school site who ultimately did not provide 6 affordable units in accordance with the permits issued for the project Enhanced Infrastructure Financing Districts (EIFDs) • Financed through increased property tax within designated boundaries I. Freeze the property tax revenues that flow from a designated project area to the city at the "base level" II. Additional tax revenue in future years is diverted into a separate pool of money for affordable housing • All housing that is developed must be affordable Local Trust Fund for Affordable Housing Apply to State's Local Housing Trust Fund Program Match funds to local housing trust funds dedicated to the creation of affordable housing These opportunities are categorized by policy, program, and funding. To guide plan implementation, the strategies highlighted in bold were identified as the short-term priorities. Live/Work -Codify that part of the affordable housing Preference agreement (including, but not limited to, a Development Agreement, or Density Bonus Agreement) includes a local priority preference for people who live or work in El Segundo when applying for new affordable housing rental units 1. City attorney deems policy legal 2. Text Amendment 1-5 years �*] Page 23 of 31 Policy Long-lasting •Currently, most affordability restrictions are placed Affordable for 30 or 55 years, after which time those units Homes return to market rate •It is recommended that any new pro -housing policies or development agreements include language restricting the affordable units in perpetuity. Policy Waiver or •Alleviate cost burden for affordable housing Deferment of developers Fees for •Improve the competitiveness of certain affordable Affordable housing funding sources Homes Program Affordable •Community survey shows residents want Housing Focus affordable housing in high -resource areas: Area o Smoky Hollow o West side of PCH between Imperial and El Segundo Blvd o E. Imperial Ave. o Downtown El Segundo •These areas are competitive for tax-exempt bonds and low-income tax credits to build affordable housing because of the proximity to amenities •Workforce Housing in Smoky Hollow Program Downtown •Integrate work/life in the downtown area by Homes for developing more housing opportunities and Young cooperating with El Segundo Development Professionals Corporation and the City's Economic Development to Work, Live, staff to attract younger professionals and Play 1. Text Amendment 1. City Council approval 2. Create a "No Fee" Permit Ordinance 5-10 years 5-10 years liu Page 24 of 31 Program Helping •Give money to developers building affordable Affordable homes Housing Grow •Buy land and encourage developers to build affordable homes there •Pay developers or homeowners to keep homes affordable Program Restructuring •Refinance using a government funding source that Park Vista for will deed -restrict the property as low-income Housing Credits housing •Park Vista will be subject to a Land Use Regulatory Agreement (LURA) that is recorded against the property and establishes the affordability for RHNA credit •Keep current residents, no rent increase Funding Local Trust Fund for Affordable Housing •Apply to State's Local Housing Trust Fund Program •Match funds to local housing trust funds dedicated to the creation of affordable housing Funding Charge fees •Commercial Linkage Fees may be charged to and other in- developers of new, non-residential buildings lieu fees for including office, retail, industrial, and manufacturing new facilities to generate revenue for the City's developments Affordable Housing Fund •In -lieu fees, such as the in -lieu fee of $5.3 million charged by the City in 2017 to the developer of a former school site who ultimately did not provide 6 affordable units in accordance with the permits issued for the project 1. The adopted city budget includes matching fundsfor affordable housing 2. Submit grant application(s) 3. Receive funding 1. Refinance PV 1. Budget Housing Fund 1. Adopt text amendment 2. Update fee schedule 5-10 years 5-10 years 1-5 years 5-10 years 11 Page 25 of 31 Funding Enhanced •Financed through increased property tax within Infrastructure designated boundaries Financing I. Freeze the property tax revenues that flow from a Districts (EIFDs) designated project area to the city at the "base level" II. Additional tax revenue in future years is diverted into a separate pool of money for affordable housing •All housing that is developed must be affordable 1. Establish EIFD 5-10 years OR) Page 26 of 31 Appendix Prioritization Result: The below displays each council member's selection. The results are as follows: Live/Work Preference, an Affordable Housing Focus Area, Downtown Homes for Young Professionals, and a Local Trust Fund for Affordable Housing strategy. Policy Live/Work Preference • Long-lasting Affordable Housing Waiver or Deferment of Fees for Affordable Housing Program Helping Affordable Housing Grow Restructuring Park Vista for Housing Credits • Affordable Housing Focus Area • Downtown Homes for Young Professionals • Funding Charge Fees and Other In -Lieu Fees for New Developments • Enhanced Infrastructure Financing Districts Local Trust Fund for Affordable Housing • 0191 Page 27 of 31 RESOLUTION NO. 5454 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO ADOPTING AN AFFORDABLE HOUSING STRATEGIC PLAN AFFIRMING THAT AFFORDABLE HOUSING IS A PRIORITY IN THE CITY OF EL SEGUNDO The City Council of the City of El Segundo does resolve as follows: SECTION 1: The City Council finds and declares that: A. In 2016, the City Council approved a residential development (24 single-family units and 34 multi -family units) at the former Imperial Street School located at 540 East Imperial Avenue. After this approval, there were several meetings to discuss the number of multi -family units that might be dedicated as "affordable units." On Mach 17, 2020, the City Council amended the project's Specific Plan to allow the developer, DR Horton, to pay an " in -lieu" fee of $5.3 million to the City in place of dedicating and/or producing future affordable housing units. Before looking to spend any of the $5.3 million, the City established an Affordable Housing Fund, and the money was formally established with the adoption of the FY 2020-2021 Citywide Budget and became effective on October 1, 2020. B. In accordance with California law, the City is required to prepare a Housing Element for its General Plan every 8 years. The current planning cycle runs from October 15, 2021, through October 15, 2029, for jurisdictions within the Southern California Association of Governments ("SCAG") region. C. The Regional Housing Needs Allocation ("RHNA") for the City of El Segundo for the period of 2021-2029 indicates that the City has a total housing need of 521 units. From this allocation, the RHNA designates: 1. Among these, 207 units are designated for extremely/very low-income households (earning less than 30%/50% of the Area Median Income or "AMI," respectively), 2. 99 units are allocated for low-income households (earning less than 80% of the AMI) 3. 84 units for moderate -income families with an AMI ranging from 81% to 120%, not to exceed $105,600; and 4. 131 units for above moderate -income families with an AMI above 120% D. On February 1, 2022, the City Council initially adopted El Segundo's 6th Cycle Housing Element, which articulated the City's commitment to adopting an Affordable Housing Strategic Plan ("AHSP"). 1. A public workshop and study session with the City's Planning Commission was held on March 24, 2022, to provide an opportunity for the Commission and the public to provide input on the draft AHSP. Page 28 of 31 2. On June 21, 2022, the City Council was asked to review the draft AHSP and provide feedback to staff on existing and proposed affordable housing programs. Feedback was incorporated into the final AHSP SECTION 2: Findings and Conclusions. The City Council finds as follows regarding the Affordable Housing Strategic Plan: A. The Affordable Housing Strategic Plan aligns with the Housing Element of El Segundo's General to preserve and enhance the community's residential character, expand housing opportunities for all economic segments, and provide guidance and direction for local government decision -making in all matters relating to housing. B. The policies, programs, and funding opportunities have the potential to contribute to the City's affordable housing production. C. The proposed Affordable Housing Strategic Plan clarifies the direction and prioritization to accelerate affordable housing production in El Segundo. SECTION 3: Environmental Assessment. Based on the facts set forth in Section 2, and on the evidence in the record as a whole, the City Council finds and determines that as a policy document, there is no substantial evidence that the proposed project will have a significant effect on the environment, cumulative or otherwise. The AHSP provides direction on facilitating affordable housing by outlining several opportunities categorized by policy, program, and funding; it does not modify or affect any allowable use or development standard within the City. Future development will require independent environmental assessment at time of implementation. Accordingly, adoption of this Resolution is exempt from further review under the California Environmental Quality Act ("CEQA"), pursuant to CEQA Guidelines § 15061(b)(3), since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. SECTION 4: Approval. The City Council adopts and approves the AHSP attached as Exhibit "A" and incorporated by reference. SECTION 5: Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable. SECTION 5: Signature Authority. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of El Segundo, and the City Clerk, or her duly appointed deputy, is directed to attest thereto. Page 29 of 31 SECTION 7: Effective Date. This Resolution will take effect immediately upon adoption and will remain effective unless repealed or superseded. SECTION 8: City Clerk Direction. The City Clerk will certify to the passage and adoption of this Resolution, enter it in the City's book of original Resolutions, and make a record of this action in the meeting's minutes, PASSED, APPROVED AND ADOPTED this I 9th day of December 2023. Drew boobi:-46or ATTEST: - Tracy We--alr, CityClerk I Mt Mark D. Henley, City Attori6ey RESOLUTION NO. 5454 PAGE 3 of 4 Page 30 of 31 CERTIFICATION STATE OF CALIFORNIA COUNTY OF LOS ANGELES Ss CITY OF EL SEGUNDO 1, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Resolution No. 5454 was duly passed, approved, and adopted by said City Council, at a regular meeting of said Council held on the 19th day of December 2023, approved and signed by the Mayor, and attested to by the City Clerk, by the following vote: AYES,' Mayor Boyles, Mayor Pro Tern Pimentel, Council Member Pirsztuk, Council Member Giroux, and Council Member Baldino NOES: None ABSENT: None ABSTAIN: None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of December, 2023. Tr* Weaver, City Clerk of the City of El Segundo, California RESOLUTION NO. 5454 PAGE 4 of 4 Page 31 of 31