Item Coversheet

Item Number 15.

  

City Council 
Staff Report


Subject:

Regional Housing Needs Allocation (RHNA) - Site Recommendations/Resolution of Intent (ROI)



Date:July 28, 2020


Submitted By:

David Mohlenbrok, Community Development Director

Laura Webster, Director of Long Range Planning & Housing



Department:Community Development

Staff Recommendation:

Adopt a Resolution of the City Council of the City of Rocklin of Intent to Initiate an Amendment to the Zoning Ordinance to Create Higher Density Zones Specifying a Minimum of 24 Units Per Acre, Create Mixed Use Zone(s), and Complete Associated General Plan Amendments and Rezones for Certain Properties to Maintain and Update the City’s Housing Element Available Sites Inventory (RHNA ROI).

BACKGROUND:

On July 23, 2019 Staff conducted an informational presentation highlighting the eight month collective work efforts and recommendations from the RHNA Ad Hoc Committee on sites that should be considered for General Plan Amendments (GPA’s) and Rezones to maintain an adequate Housing Element Available Sites Inventory for the Lower Income Category. The material also included presentation of a Land Use Balance Assessment prepared by Bender Rosenthal Inc/CBRE as background. No formal actions were taken by the City Council at the July 23rd meeting.

On September 24, 2019, staff brought forward new preliminary RHNA numbers from SACOG for the next Housing Element cycle and presented a draft Resolution of Intent (ROI) with a list of sites for Council's consideration reflecting the work of the RHNA Ad Hoc Committee and an additional staff generated list.

The City’s RHNA Allocation for the 2021-2029 Housing Element Cycle is 5,661 total units broken down into the following Income Categories:

              3,062 Units (Lower Categories Combined)
              771 Units (Moderate Category)
              1,828 Units (Above Moderate Category)

 

During discussions at the September 24, 2019 meeting, the City Council directed staff to:

 

  1. Remove Sites 12, 24, and A-7 from further consideration;

  2. Come back with information on additional strategies that might be available to reduce the amount of sites needing GPA's and Rezones (i.e., specifically analyze what contributions could be achieved through reliance on Accessory Dwelling Units (ADU's) and application of a Commercial/Residential Overlay Concept);

  3. Prepare a revised RHNA ROI site lists focusing on "willing landowners"; and
  4. Make every effort to promote continued allowance of a 22  dwelling unit per acre minimum for RHNA sites in the Lower Income Category instead of the state default of a 30 dwelling unit per acre minimum.

 

The City then retained a legal expert with an extensive planning background to assist in the preparation of a draft Accessory Dwelling Unit "ADU" Ordinance and to provide input on the number of units the City could reasonably rely on from ADUs. That information was presented to Council at an ADU Workshop on December 10, 2019.

Council direction from the ADU workshop was to come back with a revised ADU Ordinance that addressed design related issues to the extent possible under current state law and more robust options for reliance on ADUs for RHNA purposes.

The revised ADU ordinance was approved by the Planning Commission on February 4, 2020, and presented to Council for consideration on February 25, 2020, along with three possible scenarios for ADU assumptions in the future Housing Element Update. Council approved the ADU Ordinance, which was subsequently adopted on March 10, 2020, and directed staff to pursue Scenario 2 for the ADU assumption in the Housing Element Update. That assumption estimates a total of 5% of the City’s total 2021-2029 RHNA (283 units) would be addressed through the development of ADUs, and 212 of those units would fall within the Lower Income Category.

Also on February 25, 2020, staff brought forward data and information regarding a Commercial/Residential Overlay  and potential locations throughout the City where it could be applied. After considerable discussion, it was acknowledged that the Commercial/Residential overlay would have to be applied to a large amount of land area, and was likely to result in only a relatively small amount of acreage counting toward RHNA. In an effort to balance housing needs with the long term fiscal sustainability of the City, the direction from Council was the City should not pursue development of a Commercial/Residential overlay to address the  RHNA Available Sites Inventory.

 

Analysis and Updated RHNA ROI

 

Upon receiving City Council direction regarding the preferred ADU assumption and direction not to pursue further development of a Commercial/Residential Overlay concept, staff revisited the RHNA ROI site lists that were presented to the Council in September 2019.

 

The updated staff analysis included the following revisions:

 

  • 212 units were assumed in the Lower Income Category from ADU’s.
  • Sites were calculated assuming a minimum of 22 dwelling units per acre.
  • Sites directed to be removed by the Council in September were eliminated.
  • Zero acreage was assumed from sites with known opposed property owners.
  • Acreage was added for a new site (former Oracle Phase II) based on receipt of a written request from the property owner.

 

The updated staff analysis resulted in a total a yield of 2,847 units, which is 215 units short of meeting the required RHNA minimum of 3,062 units for the Lower Income Category.

Staff then calculated the same inventory utilizing an assumption of 24 dwelling units per acre. That scenario resulted in a yield of 3,077 units, which equates to a 15 unit surplus.

Concerned that both of the above scenarios were either not meeting or just barely above the required minimum, staff, the  City Manager and the two City Council Members (Janda and Broadway) who served on the RHNA Ad Hoc Committee met to review the information, revisit the list, and discuss the options. This further review resulted in the following revisions to staff’s initial updated analysis (described above) and is included in the 3-24-20 Revised/Recommended Sites Lists attached as Exhibits A and B to the Resolution of Intent for this item:

 

  • 212 units assumed in the Lower Income Category from ADU’s.
  • Sites were calculated assuming a minimum of 24 dwelling units per acre.
  • Sites directed to be removed by the Council in September 2019 remain eliminated.
  • Site 3 and 4 noted in the 9-24-19 ROI as proposed for deletion have been removed.
  • Acreage was added for a new site (A-10) former Oracle Phase II at the landowner’s request.
  • Two additional sites have been added as Mixed Use consisting of multiple parcels associated with the Save Mart/Stanford Ranch Plaza (Site A-11) and the CVS/Shops at Stanford Ranch (Site A-12) shopping centers located at Stanford Ranch Road and Park Drive. Both centers have had difficulty with ongoing vacancies and the proposed MU designation allows the centers to continue current operations yet also provides an additional development opportunity (high density residential uses) that could help support the existing retail component.
  • Former Site 8 (the vacant parcel adjacent to the Shops at Stanford Ranch located at Park Drive and Victory Lane) has been incorporated into new Site A-12 and is now proposed as MU instead of HDR.
  • The rear 8.75 acre portion of Site A-9 on the south side of Whitney Ranch Parkway between Wildcat Boulevard and University Avenue is recommended as HDR instead of Mixed Use. 
  • The portions of original Site 19 currently developed with the Sierra Lakes Mobile Home Park have been eliminated from the ROI. However, the 2.71 largely vacant portion of Site 19 which fronts on South Grove Street remains on the proposed ROI list as HDR.
  • Site 21 (vacant portion of the Lifehouse Church property adjacent to I-80) has been eliminated from the ROI.
  • Site 25 (5 acre portion of Sierra College Boulevard site north of Rocklin Road), Site 6 (vacant portions of the commercial center next to Strikes), Site 7 (former Verifone Phase II site), Site A-1 (Pick n’ Pull) and Site A-4 (Rocklin Springview Mini Storage) from the original ROI list are retained on the proposed ROI list.

 

The suggested Revised ROI lists, including all adjustments indicated above, results in a yield of 3,900 units, which would provide an 838 unit surplus for the RHNA Lower Income Category. The majority of the sites within the proposed ROI also consist of those originally recommended by the RHNA Ad Hoc Committee.

Although the majority of the sites on the lists are vacant, it also includes a number of developed properties. Staff will prepare a proposed ordinance and/or ordinance amendment to add flexibility in terms of how non-conforming uses and structures would be handled and bring that forward at the same time the General Plan Amendments and Rezones are presented to the Planning Commission and the City Council for action.

Staff had originally intended to bring the RHNA ROI back to City Council for consideration on 3/24/20, however, this item was postponed due to the outbreak of the Coronavirus. The City has made appropriate adjustments to its public hearing format so that the matter can now be heard in an environment that complies with current public health and social distancing requirements. The City is also now embarking on formal update of the Housing Element. Due to the importance of identifying a complying Available Sites Inventory for the 2021-2029 Housing Element, it is essential that the City move forward with this item.

 

It should be noted that this action directs staff to initiate and complete documentation necessary to process General Plan Amendments (GPA’s) and Rezones for specific sites, but does not in itself complete those actions.

All GPA’s and Rezones will be processed in accordance with the California Environmental Quality Act (CEQA) and include public hearings before the Planning Commission and City Council. Property owners will receive notice prior to the Planning Commission hearing, and again prior to City Council consideration of the proposed GPA’s and Rezones.

Factoring in mandatory consultation periods and preparation/processing of CEQA documents, and hearings before the Planning Commission, City Council consideration and possible action on the GPA’s and Rezones is expected to occur in early 2021.

 

Recommendation

 

Staff recommends that the City Council approve the attached Resolution of Intent including Exhibit A (3-24-20 Proposed Revised RHNA Committee Recommended Sites) and Exhibit B (3-24-20 Proposed Revised Additional Recommended Sites). 

Fiscal Impact:
Preparation and processing of documents related to the General Plan Amendments and Rezones will largely be conducted in house by City staff. The City’s FY 20/21 Budget included approximately $74,000 to cover the costs of technical studies necessary to support preparation of environmental documents.
ATTACHMENTS:
Description
SR Attachment 1 - New Correspondence
SR Attachment 2 - Revised RHNA Site Maps
SR Attachment 3 - RHNA ROI Additional Site Maps
Resolution
Resolution - Exhibit A - Proposed Revised RHNA Committee Sites
Resolution - Exhibit B - Proposed Revised RHNA Additional Sites