TO: Board of Supervisors
FROM: David Morrison, Director of Planning, Building and Environmental Services
REPORT BY: Trevor Hawkes, Planner III
SUBJECT: Housing Element Update; Draft Sites Analysis and Inventory Study Session
RECOMMENDATION
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Director of Planning, Building and Environmental Services requests discussion and direction regarding the Housing Sites Analysis and Inventory for the 2023-2031 Sixth Cycle Housing Element Update.
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EXECUTIVE SUMMARY
In early 2021, work began on the required Housing Element Update (HEU) for the State’s Sixth Cycle Planning Period to address housing needs for the years 2023 through 2031. The HEU must be adopted by the County by January 31, 2023 and then reviewed for conformance with state law by the Department of Housing and Community Development (HCD). As required by State Law, a Housing Element must include an inventory of available land that is appropriately zoned and suitable for housing development to accommodate a jurisdiction’s Regional Housing Needs Allocation (RHNA), as determined by the Association of Bay Area Governments (ABAG).
In December 2021, ABAG assigned the County a RHNA of 1,014 residential units. The County and the cities of Napa, American Canyon, and St. Helena jointly requested approval of RHNA transfers based on previously executed agreements between the jurisdictions. In March 2022, ABAG’s Executive Board approved the request, resulting in a revised total County RHNA of 106 dwelling units, allocated as follows: 45 units affordable to very low-income families, 16 units affordable to low-income families, 14 units affordable to moderate-income families, and 31 units affordable to above moderate-income families.
Staff has completed a draft Housing Sites Analysis and Inventory to meet the revised County RHNA. The analysis demonstrates that the County has sufficient existing vacant parcels to meet the County’s above moderate RHNA units. The analysis also demonstrates that continued development of ADUs at the same rate and affordability in recent years will be sufficient to accommodate the County’s moderate income RHNA units. To accommodate low and very-low income RHNA units, the County will need to rezone one or more parcels and amend the zoning text to accommodate State requirements that facilitate lower-income housing development. Staff has identified six properties in four areas of the County that would be able to accommodate the remaining low and very-low income RHNA requirements.
Staff requests that the Board review, discuss and provide general direction on the site's inventory as well as take specific actions to assist in providing additional information which would better support the Draft HEU prior to HCD review.
PROCEDURAL REQUIREMENTS
1. Staff Report
2. Public Comment
3. Motion, second, discussion and vote on item.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Planning, Building and Environmental Services Budget Unit with support from State and ABAG/MTC Grants |
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Is it Mandatory or Discretionary? |
Mandatory |
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Discretionary Justification: |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Update will continue into fiscal year 2022/23 |
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Consequences if not approved: |
County will be out of compliance with State Law if Update is not completed, which may disqualify the County from some categories of State funding, and may allow challenge to the General Plan. |
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County Strategic Plan pillar addressed: |
Healthy, Safe, and Welcoming Place to Live, Work, and Visit |
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Additional Information |
Update addresses multiple Strategic Plan Pillars |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: Draft EIR in preparation. A Notice of Preparation (NOP) was issued on January 24, 2022, and the 30-day public comment period closed on February 25, 2022. Pursuant to CEQA and State CEQA guidelines Section 15064, the discussion of potential effects on the environment in the EIR shall be focused on those impacts that the County has determined may be potentially significant. The County has determined that the project may have significant effects on the environment in the following areas: Aesthetics, Agricultural Resources, Air Quality and Greenhouse Gas Emissions, Biological Resources, Cultural and Historic Resources, Geology and Soils, Energy, Hazards and Hazardous Materials, Hydrology and Water Quality, Land Use and Planning, Mineral Resources, Noise, Population and Housing, Public Services, Recreation, Transportation/Traffic, Tribal Cultural Resources, Utilities and Services Systems, and Wildfires.
BACKGROUND AND DISCUSSION
As required by State law, a Housing Element is to include an inventory of available land that is appropriately zoned and suitable for housing development to accommodate a jurisdiction’s Regional Housing Needs Allocation (RHNA), including sites that are or can be made available for housing development affordable to households of varying income levels. Following approval by the Association of Bay Area Governments (ABAG) of the joint RHNA transfer request in March 2022, Napa County’s RHNA for the Sixth Cycle HEU stands at 106 units and is allocated as follows: 45 units affordable to very low-income families, 16 units affordable to low-income families, 14 units affordable to moderate-income families, and 31 units affordable to above moderate-income families.
The HEU project team includes County staff, Bay Area Economics, Environmental Science Associates, and Goldfarb and Lipman. They have undertaken an extensive examination of housing sites in the unincorporated county, combining input from sources such as residents, the Housing Element Advisory Committee, and Geographic Information System (GIS) analysis. All parcels considered for inclusion in the sites inventory were reviewed for any known environmental constraints, such as flood zones, fire hazard severity proximity, steep slopes, and other possible constraints to development.
In order to demonstrate that Napa County can accommodate its RHNA allocation, staff evaluated several different methods for identifying sites that can be included in the inventory of suitable lands. These included:
• Sites that allow continued development of single-family residences and accessory dwelling units (ADUs);
• Sites from prior housing elements; and
• Sites for lower income housing with access to urban infrastructure (primarily water and wastewater services).
Next the Project Team developed initial screening criteria to identify sites appropriate for low and very-low income housing through known HCD and local land use requirements and study sessions with the Napa County Board of Supervisors, Planning Commission, and Housing Element Advisory Committee (HEAC). The resulting criteria are as follows:
• Sites must have access to existing or planned water, sewer, and other dry utilities with sufficient capacity available to support housing development (Source: State requirement);
• Sites must generally be between 0.5 and 10.0 acres in size (Source: State requirement); and
• Sites must be located outside of areas designated Agricultural Resource or Agriculture, Watershed & Open Space as of September 28, 2007 (the date specified in Measure P, approved by the voters in November 2008).
Notwithstanding this requirement, sites within these designations may be identified for qualifying farmworker housing development. In addition, sites within these designations that are identified as existing commercial development on General Plan Figure AG.LU-2: Location of Parcels Subject to Policy AG/LU-45, may be identified for redevelopment as housing; (Source: Local requirement)
With input from residents, stakeholders, and the HEAC, additional goals for the sites were identified as:
• Sites located outside of high and very high fire severity zones as designated (in State Responsibility Areas) or recommended (in Local Responsibility Areas) by CalFire;
• Sites located outside of Zones A through D of the applicable Airport Land Use Compatibility Plan; and
• Sites proximate to transit routes and/or employment opportunities and services (e.g., groceries) where possible.
The suitable lands inventory began with a consideration of existing sites designated for affordable housing in the current Housing Element. Under certain conditions the County may carry forward sites from previous Housing Elements into the current cycle. However after an analysis of the County’s Fifth Cycle Housing Element, the Project Team determined that those sites were unlikely to develop in this cycle due to either existing development or wildfire hazard concerns.
The inventory then evaluated existing parcels with the potential to develop single family residences and ADUs. The County’s General Plan and zoning ordinances permit construction of one single family residence on each legal lot with the exception of industrially zoned properties. The Project Team performed an analysis of County GIS data (parcels, typography, roads, etc,.) to determine the amount of existing parcels that could allow single family residences under existing zoning, are vacant (no existing single family residence), and were not constrained through lack of road access or steep slopes. The analysis determined that the County has 230 parcels which fit this criteria. Based on historical trends in home sales in the unincorporated county the Project Team assumes that 100% of these parcels would develop at market rate. This analysis demonstrates that Napa County has adequate existing land under current zoning to accommodate all of its above-moderate income RHNA allocation (32 units).
HCD guidance suggest that jurisdictions may assume that ADUs and Junior Accessory Dwelling Units (JADUs) continue to develop at the same pace and affordability levels that has occurred over the last three years. Napa County issued building permits for 34 ADUs and JADUs during the 2018-2020 period, an annual average of 11.33 units which the Project Team has used to project a likely development potential of 72 units during the eight (8) year timeframe of the 6th Cycle Housing Element. Unlike single-family detached residences ADUs and JADUs are not expected to build out at one specific income level, and instead, as confirmed by Napa County and ABAG survey data, develop across all levels of income at the following percentages; very low-income - 12% or 8 units, low-income - 10% or 8 units, moderate-income - 33% or 24 units, and above moderate-income - 45% or 32 units. Based on the expected development of 72 ADUs over the next cycle, Napa County will be able to accommodate its moderate-income RHNA allocation (14 units) for the Sixth Cycle HEU through continued ADU permit issuance.
Next, the Project Team evaluated potential sites to accommodate the very-low and low-income categories of Napa County’s 6th Cycle RHNA. Over multiple working sessions the team evaluated parcels in the county for compliance with the initial screening criteria. All parcels considered for inclusion in the sites inventory were reviewed for any known environmental constraints, such as flood zones, fire hazard severity zone proximity, steep slopes, and other possible constraints to development feasibility such as non-vacancy. In the case of some larger parcels which exceed HCD’s maximum parcel size requirement of 10 acres, the Project Team has considered subsets of the whole parcel, with consideration to the location of existing development.
The Project Team has identified two sites which based on screening criteria and additional site considerations, can fully accommodate the County’s lower-income RHNA for the Sixth Cycle HEU. These are the Spanish Flat and Imola Avenue sites discussed in further detail below. They can realistically support 200 to 225 units of affordable housing, which would be more than sufficient to accommodate all of the County’s very-low income RHNA allocation (45 units) and low-income RHAN allocation (16 units).
It should be noted, however, that the County’s Housing Element must provide sites sufficient to accommodate its RHNA as well as an ample buffer. A buffer is particularly important because of the “no net loss” provisions in state Planning Law (Government Code § 65863), which requires that the land inventory and site identification programs in the Housing Element include sufficient sites to accommodate the unmet RHNA. This means that if a site is identified in the Housing Element as having the potential for housing development that could accommodate lower‐income units towards meeting the RHNA, but is instead developed with units at a higher income level or with fewer units, then the locality must either: 1) identify and rezone, if necessary, an adequate substitute site; or 2) demonstrate that the land inventory already contains an adequate substitute site. As such, an adequate buffer will be critical to ensuring that the County remains compliant with these provisions without having to amend the Housing Element with additional sites prior to the end of the cycle.
Because of the requirements of the “no net loss” statute, more sites need to be identified and rezoned than the minimum needed to meet the County’s lower income RHNA. In addition, under new provisions in State law, the County’s sites inventory must “affirmatively further fair housing,” which means that the sites need to provide both access to areas of high opportunity (those with good access to jobs, transit, and open space and good schools), while containing programs to improve areas of lower opportunity. Recognizing the need for a buffer, the need to include sites with access to areas of high opportunity, and the potential that HCD may question the validity of one or more sites in their review of the Draft HEU, County staff is recommending including four additional sites in the public review draft of the housing element. Each site is described further in the text below.
Potential sites for very low and low-income housing development:
• Site 1 - Spanish Flat (APN 019-261-041, 16.85 acre parcel)
Existing Zoning: Commercial Neighborhood District (CN)
Proposed Zoning: Commercial Neighborhood: Affordable Housing Combination District (CN:AHCD)
Rezoned Area: 10 acres
Existing Allowable Density: 0 du/ac
Proposed Allowable Density: 20 du/ac minimum, 25 du/ac maximum on buildable area.
Realistic Unit Capacity: 100-125 dwelling units.
Description: The site is privately owned and the property owner/developer has expressed interest in developing the site for housing, including providing Staff with a draft site plan. Staff recommended actions would be to rezone 10 acres adjacent to existing roads for the AHCD zoning district, recognizing that the steepest areas of the site are unlikely to develop. A program within the proposed HEU would amend Napa County Code Chapter 18.82 to provide for multi-family development at minimum density of 20 units to the acre and a maximum density of 25 units to the acre. Water and wastewater would be served by Spanish Flats Water District. The site is within a medium fire severity zone.
• Site 2 - Bishop (APN 039-320-005, 24.5 acre parcel)
Existing Zoning: Residential Country District (RC)
Proposed Zoning: Residential Multiple District (RM)
Rezoned Area: 5 acres
Existing Allowable Density: 3 du/ac (1 Single Family-Detached, 1 ADU, 1 JADU)
Proposed Allowable Density: 20 du/ac minimum, 25 du/ac maximum
Potential Buildout: 100-125 dwelling units
Description: The site is privately owned and the owner has expressed interest in the rezoning. The site is not fully vacant, but a large section of the site along Hedgeside Avenue is currently used for grazing. Staff recommends that a five (5) acre portion of the site along Hedgeside Avenue be rezoned to the RM zoning district designation. This housing site is within the City of Napa water service boundaries and proximate to City infrastructure, however it would require City Council approval for water service. The site is also adjacent to Napa Sanitation District wastewater infrastructure, and the Napa Sanitation District has described conditions under which service could be provided, including rehabilitation of the adjacent 10” sewer trunk line to reduce stormwater infiltration and provide additional service capacity.
• Site 3 - Altamura (APN 039-320-016, 5.8 acre parcel)
Existing Zoning: Planned Development District (PD)
Proposed Zoning: Residential Multiple District (RM)
Rezoned Area: 5.8 acres
Existing Allowable Density: 3 du/ac (1 Single Family-Detached, 1 ADU, 1 JADU)
Proposed Allowable Density: 20 du/ac minimum, 25 du/ac maximum
Potential Buildout: 58 dwelling units
Description: The site is privately owned and the owner has expressed interest in developing it in the past. The site is not fully vacant and contains the shell of a previous structure. Staff recommends that the entire site be rezoned to the Residential Multiple zoning district designation. A program within the proposed HEU would amend Napa County Code Chapter 18.60 to provide for multi-family development without a Use Permit (because the site was included in a prior housing element), a minimum density of 20 units to the acre and a maximum density of 25 units to the acre. This housing site is within the City of Napa water service boundaries and proximate to City infrastructure, however it would require City Council approval for water service. The site is also adjacent to Napa Sanitation District wastewater infrastructure, and the Napa Sanitation District has described conditions under which service could be provided, including rehabilitation of the adjacent 10” sewer trunk line to reduce stormwater infiltration and provide additional service capacity. Based on experience with similar proposals, The Project Team has taken a conservative approach to potential build out and estimated it would likely not build out the entire parcel.
• Site 4 - Big Ranch Corner (APN 038-190-007, 3 acre parcel)
Existing Zoning: Residential Country District (RC)
Proposed Zoning: Residential Multiple District (RM)
Rezoned Area: 1.5 acres
Existing Allowable Density: 3 du/ac (1 Single Family-Detached, 1 ADU, 1 JADU)
Proposed Allowable Density: 20 du/acre minimum, 25 du/acre maximum
Potential Buildout: 20 - 25 dwelling units
Description: The site is privately owned and the owner has expressed interest in developing housing in the past. The site is not fully vacant and currently contains vineyards on one half of the rectangular parcel and a vacant single family detached residence. Staff recommends that a 1.5 acre half portion along Big Ranch Road be rezoned to the RM zoning district designation with a minimum density of 20 units to the acre and a maximum density of 25 units to the acre. The 1.5 acres would also be re-designated on the General Plan Land Use Map, reflecting its designation on September 28, 2007, the effective date of Measure P. (i.e. Measure P is not applicable to this site because of its land use designation on this date.) This housing site is within the City of Napa water service boundaries and proximate to City infrastructure, however it would require City Council approval for water service. The site is also adjacent to Napa Sanitation District wastewater infrastructure, and staff of the Sanitation District have discussed the process by which this site could be provided with service.
• Site 5 - Imola Avenue (APN 046-450-041, 201.7 acre parcel)
Existing Zoning: Agricultural Watershed: Skyline Wilderness Park Combination District (AG:SWP)
DGS Surplus Property: 20.34 acres
Housing area identified within the surplus area: 5.0 acres
Existing Allowable Density: 0 du/ac
Proposed Allowable Density: 20 du/ac
Potential Buildout: 100 dwelling units
Description: The State has expressed an interest in selling Skyline Park to the County and at the same time, developing workforce housing on the area of Skyline Park immediately adjacent to the Office of Education on Imola Avenue, south and east of the City of Napa and adjacent to the Napa State Hospital. The Department of General Services (DGS) currently identifies a 20.34-acre site (APN 046-450-041) on the Real Estate Services Division’s map of surplus property identified pursuant to Executive Order N-06-10, Affordable Housing Development, and DGS staff has indicated that a 5-acre portion is likely to be pursued for development of affordable housing within the eight-year planning period. The property is located on a 201.7 acre parcel that makes up a portion of Skyline Park, adjacent to Imola Avenue, Napa State Hospital, Creekside School, and the County Office of Education offices. The property would need to connect to the City of Napa water service and Napa Sanitation for wastewater service. Rezoning the property would not be necessary given that the property is owned by the State of California and the development would not be subject to the local General Plan and Zoning regulations. The Project Team has used the default density specified in Government Code 65583.2 of 20 du/ac in determining the potential buildout of the site.
• Site 6 - Foster Road (APN 043-062-008, 24.0 acre parcel)
Existing Zoning: Agricultural Watershed: Urban Reserve Combination District (AW:UR)
Proposed Zoning: Residential Multiple District (RM)
Rezoned Area: 5 acres
Existing Allowable Density: 3 du/ac (1 Single Family-Detached, 1 ADU, 1 JADU)
Proposed Allowable Density: 20 du/ac minimum, 25 du/ac maximum
Potential Buildout: 100 - 125 dwelling units
Description: The site is privately owned and the property owner has expressed interest in developing the site for housing. This housing site is within the City of Napa water service boundaries and adjacent to Napa Sanitation wastewater infrastructure. The site is also located within the City of Napa’s Sphere of Influence (SOI) and Rural Urban Limit (RUL), and the Napa County General Plan requires that the development be annexed into the City of Napa prior to occupancy. The City of Napa’s proposed General Plan Update currently indicates a maximum development density of 10 DU/acre, and suggests the need for further planning for the entire Foster Road area. Staff recommends inclusion of this housing site recognizing that its development would require coordination between the property owner, County, and City Staff and could serve as a ‘pilot program’ to test development standards in the area and offer a route for the property owner to annex a portion of the parcel to the City of Napa in the near term. Staff’s recommended actions would be to rezone 5 acres adjacent to existing roads for the RM zoning district designation, with a minimum density of 20 units to the acre and a maximum density of 25 units to the acre.
To accommodate the very-low and low-income RHNA, five of the six sites will need to be rezoned to the Affordable Housing Combination Zoning District (AHCD) or the Residential Multiple Zoning District (RM). Government Code 65583.2(c)(3) establishes a “default density” of 20 units per acre for lower-income units in suburban jurisdictions such as Napa County. As a result, sites that are 0.5 acres and larger with zoning or General Plan land use designations that allow for development at 20 units per acre are included in the inventory as low and very-low income sites. In addition to the rezoning, the Housing Element Update will include actions to update Chapters 18.82 (AHCD) and 18.60 (RM) of the County Zoning Code to require a minimum density of 20 dwelling units per acre (du/ac) and a maximum of 25 du/ac.
Outstanding Constraints:
Utilizing the evaluation methodology outlined earlier in this report, Staff has developed an inventory of suitable lands that can meet Napa County’s Sixth Cycle RHNA for all income categories. Sites identified for multifamily development to meet lower income RHNA requirements have been evaluated against the site screening criteria and additional general evaluation considerations. Staff believes these sites represent locations within the unincorporated county most likely to develop lower-income dwelling units under rezoning and proposed programs within the HEU. However, some outstanding constraints still exist for the six sites and the Project Team requests the following direction from the Board which could help to resolve these constraints prior to HCD review of the Draft HEU.
• Utilities:
HCD requires that all sites considered for lower-income multifamily housing development have access to existing or planned water and wastewater services with sufficient capacity to serve the housing development. All of the six sites selected for rezoning to multifamily by right have been selected for their adjacency to existing utility infrastructure, but none of the adjacent water districts are administered by Napa County. The Spanish Flat site could be provided water and wastewater service with a connection to the Spanish Flats Water District. The remaining five (5) multifamily sites in the inventory are within the service boundaries of the City of Napa. Water service to the Foster Road site can be approved by City staff upon annexation, and water service to the other four sites can be approved by a vote of the City of Napa City Council.
To provide the supporting documentation needed by HCD for the Draft Housing Site Inventory, Staff’s recommendation to the Board is to direct the CEO’s office to request a letter from the Spanish Flat Water District in support of water and wastewater service to the Spanish Flat site and to request a letter from the City of Napa in support of water service to the Bishop, Altamura, Big Ranch Corner, and Imola sites if/when they develop. One or more Northeast Napa sites will be particularly important for the County’s housing inventory because of their location near a high opportunity area, to affirmatively further fair housing.
In making the request, the County should note California Government Code Section 65589.7.(a), which states:
“The housing element adopted by the legislative body and any amendments made to that element shall be immediately delivered to all public agencies or private entities that provide water or sewer services for municipal and industrial uses, including residential, within the territory of the legislative body. Each public agency or private entity providing water or sewer services shall grant a priority for the provision of these services to proposed developments that include housing units affordable to lower income households.” Each agency was required to adopt written policies and procedures to implement this requirement in 2006, and to review those documents every five years. The County’s request would be made pursuant to the District and City pursuant to their policies and procedures.
• Foster Road Site within the City of Napa Rural Urban Limit (RUL):
Existing land use regulations and adjacency to utilities make the Foster Road site a compelling location for inclusion in the County’s housing inventory. However, the site's location within the City of Napa’s RUL complicates the inclusion of the site within the County’s inventory because City and County policies call for annexation prior to development. In addition, the City’s proposed General Plan Update calls for additional planning prior to annexation/development, and envisions a maximum development density for housing units at 10 du/ac. This density is below what the HEU Project Team recommends for the 5 acre portion the Project Team recommends be rezoned for lower-income housing development and HCD’s ‘default density’ provided in Government Code 65583.2 as the minimum density likely to generate affordable housing development. Competing plans for the Foster Road properties are likely to be scrutinized by HCD, and so Staff recommends that the Board direct the CEO’s office to request the City of Napa’s support for the County’s proposal to plan for development of a five (5) acre portion of the Foster Road site at densities appropriate for workforce/affordable housing as a ‘pilot program’ to test development concepts suggested for the area, recognizing that while building permits could be issued by the County for housing on the site, annexation to the City would be required prior to occupancy.