TO: Board of Supervisors
FROM: Brian D. Bordona, Planning, Building & Environmental Services Director
REPORT BY: Trevor Hawkes, Supervising Planner
SUBJECT: Sixth Cycle Housing Element Update Rezonings and Modifications to Title 18 of the Napa County Code
RECOMMENDATION
title
PUBLIC HEARING - Sixth Cycle Housing Element Update Rezones
Introduction and Intent to Adopt an Ordinance Implementing Sixth Cycle Housing Element Update Rezonings And Modifications To Title 18 Of The Napa County Code. (No Fiscal Impact)
body
BACKGROUND
Background and State Housing Law
The Napa County Board of Supervisors adopted a comprehensive update to the County’s Housing Element for the State’s Sixth Cycle Planning Period on January 24, 2023. The Housing Element was subject to formal State review by California State Department of Housing and Community Development (HCD), which provides its view as to whether the Housing Element conforms with the housing element statutes. State law includes specific requirements for both content and process regarding periodic housing element updates. In particular, the Housing Element is required to affirmatively further fair housing, including a summary of fair housing issues, an analysis of integration and segregation patterns, disparities in access to opportunity, contributing factors, fair housing priorities and goals, and actions to implement those goals.
After adopting the Housing Element Update (HEU) and submitting it to HCD for review, the County received a letter from HCD on April 27, 2023, concluding its review of the County’s Housing Element and outlining additional revisions that would be needed for HCD to certify the Housing Element. County Staff prepared revisions to the adopted Housing Element and had numerous conversations with HCD; the revisions were adopted by the Board of Supervisors on December 19, 2023. Subsequently the County received a letter from HCD on February 22, 2024, finding that the revised adopted element met the statutory requirements of State Housing Law, however the County would not receive an official compliance finding from HCD until necessary rezonings were completed by the County (Attachment F). Under State Housing Law, if a jurisdiction adopts its housing element update before the statutory deadline of January 31, 2023, and is found by HCD to be in compliance within 120 days of the deadline (or by May 31, 2023), that jurisdiction has three (3) years to complete necessary rezonings. Jurisdictions that are not able to adopt a housing element update by the January 31, 2023, statutory deadline or whose elements are not found to be in substantial compliance within 120 days of adoption, are required to complete necessary rezonings within one year of the housing element due date. Since the County’s Housing Element was not found to be in compliance until February 22, 2024, the Housing Element cannot be found to be in compliance until these proposed rezonings and zoning amendments are adopted.
Capacity to Accommodate RHNA
California law (Government Code Section 65583 (a)(3)) requires that the Housing Element contain an inventory of land suitable for residential development, including vacant sites that can be developed for housing within the planning period and nonvacant (i.e., underutilized) sites having potential for redevelopment. State law also requires an analysis of the relationship of zoning and public facilities and services to these sites. The analysis presented in the HEU demonstrates that the County has sites to accommodate the County’s Sixth Cycle housing allocation of 106 units, including housing at all income levels. Napa County identified three sites to accommodate the County’s lower income Regional Housing Needs Allocation (RHNA), the combined capacity of which greatly exceeds the County’s RHNA. In addition, construction of accessory dwelling units will meet a portion of the County’s RHNA, and sites not served by public sewer systems may accommodate the County’s above moderate-income RHNA.
In the Bay Area, RHNAs are assigned to each city and county by the Association of Bay Area Government (ABAG) Council of Governments for the eight-year planning period and include housing units for specified income groupings. The County’s RHNA as of March 2022 is shown in the table below, and reflects ABAG’s March 17, 2022, approval of RHNA transfers between the County and the cities of Napa, American Canyon, and St. Helena.
|
Summary Info |
Units by Income Group |
Total Units |
|
|
Very Low |
Low |
Moderate |
Above Moderate |
|
|
RHNA Allocation |
45 |
16 |
14 |
31 |
106 |
|
Percent of Total |
36% |
21% |
12% |
31% |
100% |
The total realistic development capacity of the unincorporated County, as shown in the table below, reflects 230 currently vacant parcels not served by public sewer systems that can accommodate single family homes, projected development of 98 accessory dwelling units (ADUs) over the eight-year planning period, and 200 units on two sites suitable for lower income housing that have been identified for rezoning, along with 100 units on a site that does not require rezoning because it is owned by the State of California. The sites suitable for lower income housing must be developed at a minimum density of 20 dwelling units per acre (du/ac), as required by Government Code Section 65583.2(h). Maximum density is 25 du/ac (because HCD will not allow minimum and maximum density to be the same). Based on this capacity, there are sufficient sites and units within the sites inventory to not only fulfill the county’s RHNA, but offer a substantial buffer beyond the HCD recommended 15 to 30 percent buffer.
|
Summary Info |
Units by Income Group |
Total Units |
|
|
Very Low and Low |
Moderate |
Above Moderate |
|
|
County RHNA |
61 |
14 |
31 |
106 |
|
|
|
|
|
|
|
Single-Family Residential |
0 |
0 |
230 |
230 |
|
ADU’s |
58 |
29 |
11 |
98 |
|
|
|
|
|
|
|
Capacity on identified sites |
|
Spanish Flat |
100 |
0 |
0 |
100 |
|
Imola Ave |
100 |
0 |
0 |
100 |
|
Foster Road |
100 |
0 |
0 |
100 |
|
Total of identified sites |
300 |
0 |
0 |
300 |
|
|
|
|
|
|
|
Total Unit Potential |
358 |
29 |
241 |
628 |
|
Surplus (+) / Deficit (-) from RHNA |
297 |
15 |
210 |
522 |
|
Surplus (+) / Deficit (-) from RHNA (%) |
487% |
107% |
677% |
492% |
In total, this Sixth Cycle Housing Element Sites Inventory identifies sites that will be rezoned to accommodate development of 200 units (Housing Element Program H-4d) plus a state-owned parcel on Imola Avenue. Specifically, the County can accommodate its RHNA allocation for very low and low-income households by:
• Rezoning one site in the Spanish Flat area with a modified version of the Affordable Housing Combining District (AHCD) that applies elsewhere in the Spanish Flat area.
• Rezoning five acres in the Foster Road area to Residential Multiple (RM) district and adjusting the development standards that would apply.
• Including a surplus State-owned site on Imola Avenue proposed for development of affordable housing.
Within the AHCD and RM zoning districts, rezoning would require a minimum density of 20 du/ac on the two sites to comply with state law. While the sites are identified for their potential to accommodate housing development for lower-income households, the County cannot require that all of the housing developed on the sites be affordable to lower-income households; however, Program H-4d calls for a requirement that at least 15 percent of housing units developed on these sites be affordable to lower-income households.
Spanish Flat Rezone
Area to be rezoned: 10 acres
APN(s): The entirety of 019-261-040-000 and a portion of 019-261-041-000 (approximately 8.47 acres)
General Plan Designation: Rural Residential
Existing Zoning District: Commercial Neighborhood (CN)
Proposed Zoning District: Commercial Neighborhood : Affordable Housing Combination District (CN:AH)
Existing Land Uses: Existing uses include a vacant building, a restaurant, and the Spanish Flat Village which formerly included three retail tenants (an outdoors store, an antiques store, and a grocery store). Online directories indicate that the Spanish Flat Village and the restaurant are both permanently closed. Based on a desktop windshield analysis, the buildings show signs of aging and varying levels of deterioration.
Adjacent General Plan Designations/ Zoning Districts/ Land Uses:
North: Rural Residential, Agricultural, Watershed and Open Space lands not subject to Measure L / Commercial Limited, Commercial Neighborhood, Commercial Limited : Affordable Housing Combination District & Agricultural Watershed / Monticello Cemetery & Berryessa Senior Citizen Center
South: Rural Residential / Agricultural Watershed : Affordable Housing Combination District / Rural Residential
East: Rural Residential / Commercial Neighborhood / Rural Residential
West: Rural Residential / Commercial Limited, Marine Commercial : Affordable Housing Combination District, Commercial Limited : Affordable Housing Combination District / Lake Berryessa Boat and Jet Ski Rentals
The County has been working with a private developer and the Bureau of Reclamation to reestablish resorts at Lake Berryessa that were closed in 2009. This undertaking is expected to stimulate economic activity and employment in an area that was badly affected by the LNU Lightning Complex Fire in 2020 and will create a need for housing in the small community of Spanish Flat, which is served (water and wastewater) by the Spanish Flat Water District (SFWD).
As discussed in the Housing Element, the SFWD has sufficient water supplies available to serve the housing site at Spanish Flat. Extension of wastewater infrastructure to serve the site would be minimal in scale, given that the SFWD wastewater treatment plant (WWTP), which is being rebuilt, is located adjacent to the site. As part of a recent Sphere of Influence (SOI) update in 2021, it was determined that SFWD’s sewer systems appear to have adequate collection capacities to meet existing service demands within its jurisdiction under normal conditions. The housing site at Spanish Flat would represent 13 percent of the available treatment capacity at the SFWD’s WWTP, but should not exceed its capacity; however, DEIR Mitigation Measure UTL-2 would require that the project sponsor for the Spanish Flat site submit evidence to the County that adequate wastewater treatment is available prior to any project approvals.
A 10-acre portion of two separate parcels (one 16.85-acre parcel and another 1.53-acre parcel) in Spanish Flat would be rezoned to the County’s Affordable Housing Combination District (AHCD), and Chapter 18.82 of the County’s County Code regarding this zoning district would be amended to provide site-specific provisions, including a minimum density of 20 du/ac, a maximum density of 25 du/ac, and applicable development standards. Both parcels are designated as Rural Residential in the General Plan and currently zoned Commercial Neighborhood (CN).
County staff has been in communication with Spanish Flat property owner representatives throughout the HEU process. In August of 2023, County staff communicated with the property owner’s representative who confirmed the owner’s continued strong interest in moving forward with developing housing at the site. The 10-acre rezoning boundaries shown in Attachment G were developed in cooperation with the property owner who has shared draft subdivision plans and site plans with PBES Staff. These rezoning boundaries substantially comply with rezoning boundaries analyzed in the HEU EIR. Mitigation measures for the site, adopted by the Board of Supervisors on January 24, 2023, are included in the zoning text modifications proposed with this ordinance (NCC 18.60.120). The property representative indicated that once the Housing Element is certified by the State, they anticipate engaging with the County to begin subdivision of the site in advance of housing development.
Foster Road Rezone
Area to be rezoned: 5 acres
APN(s): 043-062-008-000
General Plan Designation: Rural Residential
Existing Zoning District: Agricultural Watershed : Urban Reserve Combination District (AW : UR)
Proposed Zoning District: Residential Multiple : Urban Reserve Combination District (RM : UR)
Existing Land Uses: Agriculture
Adjacent General Plan Designations/ Zoning Districts/ Land Uses:
North: Rural Residential / Residential Single : Urban Reserve Combination District / Rural Residential
South: Rural Residential / Agricultural Watershed : Urban Reserve Combination District / Agriculture
East: Rural Residential / Agricultural Watershed : Urban Reserve Combination District / Agriculture
West: City of Napa / City of Napa, Agricultural Watershed / Single-Family Residential.
Five acres within unincorporated Napa County along Foster Road south of Imola Avenue would be rezoned to Residential Multiple zoning district, allowing development of housing at a minimum density of 20 du/ac and a maximum density of 25 du/ac. The site is within the City of Napa’s Rural Urban Limit (RUL) and SOI. Because the County's General Plan indicates that sites within the City's RUL will not develop without annexing to the City of Napa, the five-acre site would need to be annexed to the City prior to occupancy, subject to an agreement with the City for Napa County to claim RHNA credit for the resulting housing units. With annexation, the site would have access to City water, and could connect to nearby infrastructure. Development on the site could also connect to nearby infrastructure for wastewater collection owned by the Napa Sanitation District, subject to approval of LAFCO and the District. There is a 20-foot-wide water line easement adjacent to Foster Road. The City of Napa maintains a 36-inch water transmission main within the easement. The site proposed for rezoning, as shown in Attachment G is offset 20 feet from the western property line of Foster Road in order to not include this easement. The rezone area is designed as a right-angle square, measuring 5-acres in size (each side approximately 468 feet in length), and is substantially complaint with the general area that was analyzed in the HEU EIR.
The site is designated as Rural Residential in the General Plan and is currently zoned Agricultural Watershed. The site is also identified within the Urban Reserve combining district which stipulates that uses or actions other than permitted uses first require an application for annexation to be processed before proceeding. Planning for housing at the site would involve collaboration between the property owner, the City, and the County. Currently, the City of Napa’s General Plan Update designates this area for a mix of uses with residential densities allowed at densities up to 10 units per acre. The County’s proposal for higher residential densities conforms with the “default density” provided in Government Code Section 65583.2(c) and is intended to ensure that the site could accommodate lower income households. The site is anticipated to be located at the northeast corner of APN 043-062-008, the area adjacent to existing residential, which would have the most convenient access to services and have the shortest infrastructure extension, but the City may elect to modify the location of the site as part of the preparation of the Master or Specific Plan.
Modifications to Title 18 of the Napa County Code
Napa County’s Sixth Cycle HEU includes a list of goals, policies and programs to implement those goals and policies. The proposed ordinance would implement two of the HEU programs; H-2g and H-4d.
Program H-2g: Continue to use the Affordable Housing (:AH) Combination District as a tool to provide specific and reasonable development standards and stimulate affordable housing production in designated locations.
Objective H-2g: For :AH sites established for the Fifth Housing Element Cycle or earlier, evaluate and modify the AH requirements to reduce the amount of affordable housing that must be provided for development under the :AH provisions as a way to better incentivize the development of housing on these sites.
As currently allowed under Napa County Code, properties which received the Affordable Housing Combination District overlay as part of the Fourth and Fifth Cycle Housing Element Updates are exempt from the County’s Inclusionary Ordinance pursuant to Napa County Code Section 18.107.080.D.3 (Affordable Housing and Incentives; Residential Projects-Basic Inclusionary Requirement) and are instead required to provide, as a component of any multiple-family development project an allocation of affordable dwelling units pursuant to Napa County Code Section 18.82.060.A. This affordable dwelling unit allocation, as provided in the table below, requires in all cases a minimum of 50% of dwelling units constructed to be affordably restricted, and in the case of Angwin Site A, a minimum of 65% of the dwelling units constructed to be affordably restricted. Analysis in the HEU concluded that the high affordability requirements made development of the sites infeasible.
|
|
Very Low-Income |
Low-Income |
Moderate-Income |
Total |
|
Angwin Site A |
10% |
30% |
25% |
65% |
|
|
Very Low- and Low-Income |
Moderate-Income |
|
|
Angwin Site B |
50% |
0% |
50% |
|
Moskowite Corner (all sites) |
25% |
25% |
50% |
|
Spanish Flat (all sites) |
25% |
25% |
50% |
The proposed zoning text modification would remove the specific dwelling unit affordability allocations for Fourth and Fifth Cycle Affordable Housing Combination District sites (categorized as “2009 Specified Priority Housing Development Sites” in the proposed zoning text updates to differentiate them from sites receiving the :AH overlay in the 2023 HEU) and removes the exemption language contained in NCC 18.107.080.D.3. With the exemption language removed, 2009 Specified Priority Housing Development Sites would be subject to the County’s Inclusionary Ordinance with adoption of the proposed ordinance. The County’s Inclusionary Ordinance currently requires that for-sale multiple-family development projects require a minimum of 20% of their dwelling units be sold at affordable rates for moderate-incomes, and that attached and common interest projects require a minimum of 17% of their dwelling units be sold at affordable rates for moderate-incomes. The County’s Inclusionary Ordinance currently allows multiple-family rental projects to pay an affordable housing fee rather than provide affordably restricted dwelling units.
|
|
Single-family Detached |
Attached Single-family and common interest projects |
Rental projects |
|
All 2009 Specified Priority Housing Development Sites |
20% Moderate-income |
17% Moderate-income |
Housing fees as specified in Napa County Code 18.107.090 |
Program H-4d: Housing Sites Rezoning. Rezone sites at a minimum density of 20 units per acre to accommodate the County's lower income housing need of 61 lower income units, ensuring that the sites affirmatively further fair housing. Zoning will require that housing developments include at least 15 percent of units for lower-income households. If applicable, require replacement housing consistent with Section 65915(c) on all sites designated for housing in the Housing Element.
Objective H-4d: Provide adequate sites to fully accommodate the Sixth Cycle RHNA, and require replacement housing on all designated sites, if applicable. The County will undertake rezonings consistent with those shown for the two privately owned sites included in the Sites Inventory. This program specifically commits the County to rezoning the acreage at the allowable densities, to accommodate the anticipated number of units, by income category, shown in the Sites Inventory section of the Housing Element and summarized on Table 56. To accommodate the housing needs of lower-income households, rezonings will include provisions to meet all by right requirements pursuant to Government Code section 65583.2, subdivisions (h) and (i).
The proposed text modifications amend various sections of Title 18 to implement the Program & Objective H-4d. Multiple-family development projects on the HEU rezone sites which propose to restrict 20% of dwelling units to lower-incomes can be processed ministerially pursuant to the by-right requirements of Government Code section 65583.2(h) and (i) (NCC 18.60.020, 18.60.040, 18.82.090). Minimum and maximum development densities are set for the RM zoning district and the 2023 Specified Priority Housing Development Site (NCC 18.60.070, 18.82.010). All multiple-family development, either by-right or discretionary, for the two sites identified in the HEU are required to provide a minimum allocation of 15% of for-sale or rental dwelling units at an affordable sales price or affordable rent to low-income households (NCC 18.60.030, 18.82.030). Replacement housing shall be required for RM and :AH zoning districts as required by Government Code Section 66300.5.
The proposed modifications to Title 18 to implement Housing Element programs H-2g and H-4d result in affordability allocations as shown below. Pursuant to existing Napa County Code section 18.82.050.C, 2009 Specified Priority Housing Development Sites are allowed different densities dependent on whether an applicant undertakes by-right or Use Permit approval processing. Modifications to implement Program H-2g, removing the exemption to the County’s Inclusionary Ordinance for residential projects (NCC 18.107.080) would apply for all 2009 Specified Priority Housing Development Site densities. Rezoned sites for the HEU would need to provide 20% lower-income housing to process by-right or 15% lower-income to process through a Use Permit.
|
|
By-right Processing |
Use Permit Processing |
|
|
Single-Family Detached |
Attached or common interest project |
Rental |
Single-Family Detached |
Attached or common interest project |
Rental |
|
2009 Specified Priority Housing Development Sites by-right densities |
17% moderate-income |
20% moderate-income |
Housing fees as specified in Napa County Code 18.107.090 |
N/A |
N/A |
N/A |
|
2009 Specified Priority Housing Development Sites Use Permit densities |
N/A |
N/A |
N/A |
17% moderate-income |
20% moderate-income |
Housing fees as specified in Napa County Code 18.107.090 |
|
HEU rezone sites |
20% lower-Income |
20% lower-Income |
20% lower-Income |
15% lower-income |
15% lower-income |
15% lower-income |
Future Actions to the Residential Multiple and Affordable Housing Combination Zoning Districts
Staff recommends adoption of the proposed ordinance, rezoning two sites identified in the HEU and modifying Title 18 of the Napa County Municipal Code in order to implement Housing Element programs H-2g & H-4d. The Board should expect additional Housing Element ordinances implementing various programs as they are prepared. Staff does envision that additional modification will be required to zoning text implementing the Residential Multiple and Affordable Housing Combination Zoning Districts (NCC 18.60 & 18.82) later in 2024. Specifically, Program H-5f, bullets 5 & 7, require that the County both “Review and revise design standards to provide objective standards” And “Eliminate requirement for CUP for multifamily residential projects in the RM zone and on AH:CD sites”.
PROCEDURAL REQUIREMENTS:
1. Open Public Hearing.
2. Staff reports.
3. Public comments.
4. Close Public Hearing.
5. Motion, second, discussion and vote on the intention to adopt the ordinance.
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
No |
|
Is it Mandatory or Discretionary? |
Mandatory |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: On January 24, 2023, the Napa County Board of Supervisors adopted a resolution certifying an Environmental Impact Report (EIR)(State Clearinghouse # 2022010309) and adopting Findings, a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program pursuant to CEQA for the Napa County General Plan Housing Element and Safety Element Updates (HEU & SEU). The project description provided in the certified EIR included rezoning of the two sites proposed to be rezoned as part of this action and other implementation measures. No supplemental or subsequent EIR is required, in that no changes are proposed to the contemplated rezoning and zoning amendments, and no new information or changes to circumstances have occurred which would involve new significant environmental effects or a substantial increase to the severity of previously identified effects.