(1) Open the public hearing and take public testimony; and (2) adopt Resolution No. 2025-47 amending the City of Canyon Lake General Plan Housing Element to meet the requirements of the 6th Cycle Housing Element requirements of State law and the California Department of Housing and Community Development, adopting the Addendum to the previous Negative Declaration for the Housing Element, adopted February 9, 2022, and a finding that no substantial changes have occurred in the proposed Project due to new significant information, new environmental effects or new information of substantial importance, consistent with the California Environmental Quality Act (CEQA).

Housing Elements are required to be updated during specific periods to meet identified housing needs established by the State, including the provision of ensuring adequate housing for all income groups.  The City’s existing Housing Element was completed for the 5th Cycle and adopted in October 2019, with a Mid-Term Update in May 2020.  Both documents consisted of goals, policies, and programs for the period 2013 to 2021.  This proposed updated Housing Element contains some of the same goals, policies, and programs contained in the existing Housing Element.

The City of Canyon Lake has prepared a number of draft updates to its current General Plan Housing Element to comply with State Department of Housing and Community Development (HCD) comments.  The most recent update and the subject of this hearing, was undertaken by Rincon Associates.  It represents a comprehensive revision in the manner in which existing demographic and economic characteristics are presented.  Also included are some new programs intended to meet the requirements of the State Housing and Community Development.

Analysis

The City of Canyon Lake initiated this most recent change to the Housing Element starting in June 2023, with the execution of an agreement with Rincon Consultants, Inc.  Since that time, Rincon has undertaken a methodical update to the Housing Element that incorporates an expansion of demographic and economic data and updated implementation programs.  Through Rincon, the City has coordinated with HCD to obtain their comments.  An updated version of the Housing Element was filed with HCD on December 17, 2024.  On February 7, 2025, HCD provided a comment letter requesting minor changes to the Element and a modification to the City’s Mixed Use Zone that incorporates some of the State housing requirements.  Changes have been made to both documents and are presented to the City Council for their consideration.  The Mixed Use Zone, which covers the businesses in the Towne Center, includes the Towne Center Specific Plan where the number of housing units required by the State Regional Housing Needs Allocation (RHNA) distribution model are to be located. 

 

To comply with the State’s request to amend the Mixed Use Zone, Staff has placed that Zone Amendment on the same agenda as the Housing Element Amendment, so that both documents can be submitted to the State for final acceptance and certification.  The purpose of the comments provided by HCD are to determine compliance with State Law and do not represent approval of the document.  The State's review and acceptance process is intended to certify compliance with State Law.

Proposed Housing Programs

Most of the proposed Programs represent a continuation of past Programs and are either unchanged or modified. The most notable additions or modifications provided by the new Programs reflect programs related to the development of housing in the Towne Center.  Among the programs included in the Housing Element are those to incentivize the construction of Accessory Dwelling Units and housing for lower-income and special needs; a vacant land survey; displacement prevention of existing businesses in the Towne Center; methods to streamline project approvals; review opportunities to remove barriers to housing production and affordability; housing code enforcement; preparation of a marketing plan for the Towne Center to provide diverse housing opportunities for demographically diverse and lower income households; networking with groups to help ensure householders are not displaced through new construction, and; cooperate with RTA to identify actions to connect residents to job centers.  The proposed housing programs are listed below:

   

Program Category	List of Programs

 

Category 1: Actions to Make Sites Available to Accommodate the RHNA	1.1:      Annual Housing and Vacant Lot Reporting Program
	1.2a:    Facilitate the full buildout of the TCSP to accommodate RHNA
	1.2b:    Rezone and Lot Consolidation Program on Mixed-use Sites within the TCSP
	1.2c:    Displacement Prevention of Existing Businesses within the TCSP
	1.2d:    City-owned Sites/Surplus Land Act
	1.3:      No Net Loss Program (continuation)
Category 2: The Development of Adequate Housing to Meet the Needs of All Economic Segments	2.1:      Section 8 Housing Choice Voucher Program (continuation)
	2.2:      First Time Homebuyer Program (continuation)
	2.3:      Lower-Income and Special Needs Housing Incentives Program
	2.4:      ADU Incentives Plan
	2.5:      Area Agency on Aging Outreach Program (continuation)
	2.6:      Inland Regional Center Outreach Program
	2.7:      Density Bonus Ordinance (continuation)
Category 3: Address and Remove Governmental and Nongovernmental Housing Constraints	3.1:      Zoning Ordinance Amendments (continuation)
	3.2:      Reasonable Accommodation Procedure (continuation)
	3.3:      SB 35 Streamlining Information
	3.4:     Support the Development of a Variety of Housing Types
Category 4: Conserve and Improve the Condition of the Existing Housing Stock	4.1:      Housing Code Enforcement
	4.2:      Homeowner Housing Rehabilitation Program (continuation)
Category 5: Promote and Affirmatively Further Housing Opportunities for All Persons	5.1:      AFFH Outreach Program (continuation)
	5.2:      Fair Housing Services Program (continuation)
	5.3:      Affirmative Fair Housing (Marketing AFHM) Plan
	5.4:      Displacement Risk Program
	5.5:      Transit Expansion Program
	5.6:      Equitable Quality of Life Program