Zone Changes 23-03, 23-04 and 23-05, were reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be exempt pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA guidelines because the proposed amendments to the La Habra Municipal Code have no possibility of having a significant effect on the environment.

That the Planning Commission approve:

1. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING ZONE CHANGE 23-03 TO AMEND CHAPTERS 18.04 (DEFINITIONS), 18.06 (ZONES ESTABLISHED), 18.10 (REASONABLE ACCOMMODATIONS IN HOUSING TO DISABLED INDIVIDUALS), 18.14 (OFF-STREET PARKING REQUIREMENTS), 18.26 (R-2, R-3, R-4, R-5, R-6 AND R-7 MULTIPLE FAMILY DWELLING ZONES), 18.30 (SPECIAL NEEDS HOUSING), 18.80 (AFFORDABLE HOUSING INCENTIVES), AND 18.82 (INCLUSIONARY HOUSING UNITS) OF TITLE 18 (ZONING) OF THE LA HABRA MUNICIPAL CODE FOR CONFORMANCE WITH STATE LAW AND AS REQUIRED BY THE CITY’S 2021-2029 HOUSING ELEMENT AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER SECTION 15061(B)(3) (COMMON SENSE EXEMPTION) OF THE CEQA GUIDELINES. 

2. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING ZONE CHANGE 23-04 TO ADD A NEW CHAPTER 18.09 (OBJECTIVE DESIGN STANDARDS FOR MULTI-UNIT RESIDENTIAL AND MIXED-USE DEVELOPMENT) AND AMEND CHAPTER 18.68 (DESIGN REVIEW) OF TITLE 18 (ZONING) OF THE LA HABRA MUNICIPAL CODE AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER SECTION 15061(B)(3) (COMMON SENSE EXEMPTION) OF THE CEQA GUIDELINES.

3. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING ZONE CHANGE 23-05 TO ADD A NEW CHAPTER 18.84 (MULTI-UNIT RESIDENTIAL AND MIXED-USE DEVELOPMENT MINISTERIAL REVIEW PROCESS) TO TITLE 18 (ZONING) OF THE LA HABRA MUNICIPAL CODE IN ACCORDANCE WITH SENATE BILL 35 AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) UNDER SECTION 15061(B)(3) (COMMON SENSE EXEMPTION) OF THE CEQA GUIDELINES.

The City Council adopted the 2021-2029 (6th Cycle) General Plan Housing Element ("Housing Element") on September 19, 2022, by Resolution No. 6085, after a lengthy multi-year public process. As part of the adoption of the Housing Element, the City Council found that the document was substantially compliant with State law. The California State Department of Housing and Community Development (HCD) later certified the City’s Housing Element on April 21, 2023, following some non-substantive administrative changes. The certified Housing Element is available for public review on the City's website. The City Council's adoption of the Housing Element initiated the Zone Changes that are the subject of this staff report.

Since the City Council's adoption of the Housing Element, city staff has been working to implement the Housing Programs contained in the Housing Element, as identified in Section D (Housing Programs) of Chapter 5 (Housing Plan) of the Housing Element.  Attachment 5 provides a table detailing the Housing Programs that the subject Zone Changes are intended to implement, all of which were projected in the Housing Element to be completed within the first year after the adoption of the Housing Element. The Zone Changes are summarized as follows:

• Zone Change 23-03 would amend various chapters and sections of Title 18 to streamline and/or facilitate housing as required by the State;

• Zone Change 23-04 would add new objective design standards that may be applied to multi-unit residential and/or mixed-use development and amend sections of the City's design review regulations to ensure consistency with the new standards; and

• Zone Change 23-05 would streamline the review and approval of eligible affordable housing projects by providing a ministerial approval process and exempting such projects from environmental review under the California Environmental Quality Act (CEQA).

All of the above Zone Changes are in response to State law requirements for local jurisdictions to do their part in addressing California’s severe housing shortage by streamlining the housing construction process and adding housing reforms to promote affordability and affirmatively further fair housing, as summarized below:

• Senate Bill 35 (SB 35) requires cities to allow qualified multi-unit residential and/or mixed-use infill projects that provide lower income housing units, meet certain labor provisions, and are consistent with local planning standards, to go through a simplified and expedited housing approval process.

• Assembly Bill 2339 (AB 2339) provides additional specificity on how cities plan for emergency shelters.  AB 2339 amended State housing element law regarding the identification of zones and sites for emergency shelters, transitional, and supportive housing; and, expanded the definition of “emergency shelters” to include other interim intervention facilities such as “low barrier navigation centers.”

• Assembly Bill 139 (AB 139) requires cities to review the effectiveness of the Housing Element goals, policies, and related actions to meet the community’s special housing needs.

• Government Code Sections 65915-65918 (Density Bonus Law) requires cities to include State-mandated provisions for density bonuses, incentives/concessions and waivers/reductions in development standards for housing projects with qualifying affordable housing.

• HCD’s Group Home Technical Advisory, dated December 19, 2022, requires cities to remove constraints on group homes, prohibit policies and practices that discriminate against group homeowners, operators, and residents, and align housing types definitions and permitting process with State laws. 

Staff prepared a draft ordinance for each of the above Zone Changes, included as an exhibit to the resolutions under Attachments No. 1-3, which show the proposed text as it will appear in the La Habra Municipal Code (LHMC), if the Zone Changes are approved. Attachment 4 provides a redlined version of the Zone Changes, where the Commission can see how the code language is being changed by identifying proposed new text in bold blue typeface and deleted text with a strike through. The attached resolutions and ordinances have been reviewed by the City Attorney's office to ensure legal compliance.

Zone Change 23-03 

Repeal and Replace Section 18.04.030 (Terms Defined) of Chapter 18.04 (Definitions)

Staff is proposing to revise LHMC Section 18.04.030 (Terms Defined) to include new and/or updated definitions consistent with State Housing Laws. Definition changes include:

• Replacing the term “family” with “housekeeping unit” in order to ensure the definition will not overly scrutinize living arrangement or reference lease agreements, household size, or other such criteria;

• Replacing the terms “one-family unit” and “two-family units”, with the terms “single-unit dwelling” and “two-unit dwellings,” to reference the design of the unit instead of the occupancy or the number of families;

• Replacing the terms "multiple-family dwellings," “apartment houses,” "group dwellings," "condominiums" and "cluster housing" with the more general term “multi-unit dwellings” and to remove references to “families,” or housing tenure (ownership or rental), and replacing the term “bachelor” unit with a more gender-neutral term, “studio” unit;

• Expanding the definition of “disability” to include both the federal definition, and the more expansive state definition, of disability, with respect to any limitation of a major life activity and/or cause of the disability;

• Adding a "group home" definition that encompasses a variety of shared housing types to be permitted by-right in zones allowing multi-unit housing and mixed-use development, as defined by State Housing Laws. These will include: 
  • Alcohol or other drug (AOD) Facilities,
  • Licensed group homes,
  • Residential care facility (small or large),
  • Residential care facility for the elderly,
  • Recovery residences or sober living homes, and
  • Unlicensed group homes; and

•  Adding the definition of “low barrier navigation centers” to be described as service-focused temporary housing shelters that aim to find permanent housing for individuals.

These updated definitions will help ensure the City’s policies and code regulations align with the State Housing Laws and therefore, help to fulfill the City’s Housing Program B8: Zoning Code and General Plan Amendment and Housing Program D3: Homeless Services. These amendments also help the City address Housing Program D7: Constraints to Group Homes and Housing for Disabled People because these definitions also align with HCD’s Group Home Technical Advisory memorandum, dated December 19, 2022 (“Group Home Technical Advisory”), which provides State guidance on group homes and housing people with disabilities.

Lastly, the definitions within the chapters modified under this Zoning Code amendment will be relocated to Chapter 18.04 (Definitions) to centralize all definitions within the Zoning Code for ease of reference and to eliminate duplicates. Because the draft ordinance repeals and replaces Section 18.04.030 (Terms Defined), the definitions associated with the Chapter 18.23 (Sign Standards), approved by the Planning Commission at its October 23, 2023, meeting are also included in the draft ordinance. Moving forward, as staff continues to process amendments to Title 18 (Zoning), all definitions will be proposed to be moved to Chapter 18.04 (Definitions).

Amend Table 18.06.040.A (Land Use Matrix) - Zones Established

As required by State law, the Land Use Matrix under Table 18.06.040.A is proposed to be amended to further streamline the planning entitlement process and facilitate housing development by:

• Permitting residential care facilities as a by-right use in all zones allowing single or multi-unit residences, subject only to the generally applicable, nondiscriminatory health, safety, and zoning laws that apply to all residences;

• Permitting Accessory Dwelling Units (ADUs) by-right in all zoning districts that allow single- and multi-unit housing, including the Mobile Home Park zone;

• Removing congregate housing from the code, as the State has deemed this use the same as a residential use and no further distinction is permitted;

• Amending housing terms to be more inclusive, consistent with revised definitions in Chapter 18.04 (i.e., replacing various terms including, but not limited to changing “family” to “housekeeping” and “apartment houses” to “multi-unit dwellings”, etc.);

• Adding employee housing for six or fewer people, group homes, transitional housing, supportive housing, and low barrier navigation centers, as a by-right use in zones that permit multi-unit dwellings and mixed-use development; and,

• Identifying permitted, conditionally permitted and prohibited land uses under the Mixed Use (MX) Overlay Zone.

In accordance with State law, the above amendments will further enable more types of supportive housing to be permitted by-right, which will help the City to affirmatively further fair housing for both persons experiencing homelessness and people with disabilities; thereby enabling the City to fulfill Housing Program D3: Homeless Services. The streamlined review process helps fulfill Housing Program D7: Constraints to Group Homes and Housing for Disabled People and HCD’s Group Home Technical Advisory.

Repeal and Replace Chapter 18.10: Reasonable Accommodations in Housing to Disabled Individuals

Staff is proposing to repeal and replace Chapter 18.10: (Reasonable Accommodations in Housing to Disabled Individuals). The updated Chapter 18.10 would:

• Remove the application fee for processing a reasonable accommodation request to further eliminate financial hurdles for individuals with disabilities that are proposing improvements to their households that result in a more viable livable space, but which do not conform to the required development standards;

• Require notice of the City’s reasonable accommodation procedures and the application form to be displayed at the public counters for the Community and Economic Development Department, and posted on the City’s website;

• Require all information submitted as part of the reasonable accommodation request to be kept confidential and retained in a manner that respects the privacy rights of the applicant;

• Establish procedures for the decision on a reasonable accommodation request, and authorizes the Chief Building Official to make such determination for Building Code requests and authorizes the Planning Manager, or designee to make determinations for zoning code requests; and,

• Establish appeal procedures, which appeals would be heard by the Director of Community and Economic Development, in order to protect the privacy rights of the person requesting the reasonable accommodation.

The purpose of the above amendments is to further reduce barriers to housing for people with disabilities as prescribed by the State, which helps fulfill the City’s Housing Program D2: People with Disabilities.

Amend Chapter 18.14: Off Street Parking Requirements

LHMC Chapter 18.14 is proposed to be amended to specifically address the following:

• Updating certain terms (i.e., replacing “family” with “unit” throughout the chapter);

• Clarifying that the parking requirements for two-unit dwellings (duplexes) are the same as for a single-unit dwelling;

• Removing the requirement for covered garage parking for studio units;

• Adding and amending parking standards for special needs housing, such as group homes, transitional housing, supportive housing, and emergency shelters under Table 18.14.060.A.4; and,

• Relocating definitions to Chapter 18.04 (Definitions)

These amendments generally ease parking requirements for different housing types per State law, and implement Housing Programs B8: Zoning Code and General Plan Amendments and D3: Homeless Services, which aim to remove parking constraints for certain housing types and revise the parking standards in compliance with the requirements under Assembly Bills (AB) 2339 and 139.

Amend Chapter 18.26: R-2, R-3, R-4, R-5, R-6 and R-7 Multiple-Family Dwelling Zones

LHMC Table 18.26.040. A, relating to standards of development, is proposed to be revised to allow increased maximum height limits for the R-3, R-4, R-5, R-6, R-7 zones as follows:

The proposed amendment will enable a floor height of at least 12 feet per story, which would allow more design flexibility for higher density development. This amendment specifically addresses Housing Program B8: Zoning Code and General Plan Amendments.

Repeal and Replace Chapter 18.30: Special Needs Housing

In accordance with State requirements, Chapter 18.30 is proposed to be revised to help the City affirmatively further fair housing for people with special needs. The amendments include:

• Removing congregate housing and domestic violence shelter uses from this chapter, as State law has deemed them to be the same uses as residential and emergency shelter uses;

• Removing operational and development constraints for emergency shelters, transitional housing, and single-room occupancy housing (SROs);

• Adding new special needs housing types, such as low barrier navigation center and supportive housing, to be permitted as by-right residential uses in zones that permit multi-unit residential and mixed-use development;

• Modifying the overall format of the chapter for organizational purposes; and

• Relocating the definitions to Chapter 18.04 (Definitions).

These amendments will help the City to complete Housing Programs D2: People with Disabilities, D3: Homeless Services, and D7: Constraints to Group Homes and Housing for Disabled People, which aim to remove/modify governmental regulations that are constraints to the development and operation of housing for people experiencing homelessness and people with disabilities.

Repeal and Replace Chapter 18.54: Mixed-Use Overlay Zones

Chapter 18.54 is proposed to be revised to remove existing constraints to the development of mixed-use and multi-unit residential projects within Mixed-Use (MX) Overlay Zones. The following changes are proposed:

• Remove the minimum of 20% nonresidential uses cap and the one-acre site lot size for mixed-use projects;

• Add a floor area ratio of 1.5 for all mixed-use projects within the MX Overlay Zones;

• Amend the language of the following standards:

  • LHMC 18.54.050 to provide clarity on the applicability of the MX Overlay Zones regulations, which apply to the development or modification of any property within the MX Overlay Zones, when a property chooses to develop or modify existing structures in accordance with the MX Overlay Zones;

  • Ensure the parking standards are consistent with Chapter 18.14 (Off-Site Parking Requirements);

  • Simplifying the open space requirements for both private and common spaces;

• Revise the permitted density for dwelling units to be consistent with the maximum densities described within the General Plan;

• Eliminate existing subjective design standards and replace with the new objective design standards under Chapter 18.09 of the LHMC;

• Eliminate the MX development permit requirements for projects within the MX Overlay Zone, as the approval of this permit includes subjective findings, and require these projects to be processed under the requirements for Design Review, which is a more efficient and objective review process; and

• Relocate the definitions to Chapter 18.04 (Definitions).

These amendments will help the City to address Housing Programs B5: Mixed Use Development and B6: Residential Design Standards, by setting forth clear standards and direction to further enable housing production in the City.

Repeal and Replace Chapter 18.80: Affordable Housing Incentives

Staff is proposing to repeal and replace Chapter 18.80 in compliance with State density bonus law (Government Code Sections 65915-65918), by:

• Removing the Conditional Use Permit (CUP) application requirement and instead requiring an Affordable Housing Application to be processed concurrently with a Design Review and/or PUD/Precise Plan;

• Using the Affordable Housing Application to identify the number of affordable units, unit sizes, tenure, location of affordable housing units and a description of the requested incentives/concessions;

• Referring applicants to Government Code Section 65915 et seq. ("Density Bonus Law") rather than repeating the specific density bonus, incentives, concessions, waivers, and parking requirements contained in State law within the LHMC; and, 

• Relocating the definitions to Chapter 18.04 (Definitions).

The goal of the amendments is to make the process for achieving affordable housing easier, in order to implement Housing Program B3: Affordable Housing Ordinance, and to ensure compliance with the State density bonus law.

Amend Chapter 18.82: Inclusionary Housing Units

Chapter 18.82 (Inclusionary Housing Units) included proposed amendments throughout to clarify “permit” as “application” relocate the definitions to Chapter 18.04 (Definitions) for ease of reference, remove the requirement of a homeowner’s association for rental units in accordance with State law.  These amendments are clean-ups items.

Zone Change 23-04

New Chapter 18.09: Objective Design Standards for Multi-unit Residential and Mixed-Use Development

Staff is proposing to add Chapter 18.09 (Objective Design Standards for Multi-unit Residential and Mixed-Use Development) to Article I (General) of Title 18 (Zoning) to establish straight-forward, measurable design standards to be used on either multi-unit residential and/or mixed-use development projects. Staff utilized the Objective Design Standards Toolkit for Multi-unit and Mixed-use development provided by the Orange County Council of Governments (OCCOG) for Orange County cities. The toolkit includes a Model Objective Design Standard Ordinance that was prepared by PlaceWorks, Inc. to provide all Orange County cities with baseline strategies that are deemed sufficiently "objective" per the States requirements.  The proposed chapter:

• Mirrors the same standards in the model ordinance, which aim to provide objective criteria that enhance the City’s character and sense of place, while allowing design flexibility and ensuring high quality housing construction;

• Would be applicable to all multi-unit residential and mixed-use development in the City, as well as projects that qualify under Chapter 18.84 (Multi-Unit Residential and Mixed-Use Development Ministerial Review Process), and as allowed by the underlying zone, unless stated otherwise by an applicable specific plan, overlay, and/or planned unit development ordinance;

• Provides objective standards related to site planning, orientation, entries, frontages, roofs, windows, materials and colors, etc., to guide development; and,

• Addresses a variety of building types (podium, townhomes, wrapped building, and tower buildings) and architectural styles (Spanish Revival, Craftsman, Tuscan, East Coast Traditional, Farmhouse, Modern, and French Influence).

This new chapter will address Housing Programs B2: Efficient Processing and B6: Residential Design Standards, by establishing clear and enforceable standards for multi-unit residential and mixed-use development, in accordance with Government Code Section 65913.4 (SB 35),

Amend Chapter 18.68: Design Review

In line with the proposed new objective design standards, staff is also proposing to amend LHMC 18.68.050 (Findings) of Chapter 18.68 (Design Review) to remove a finding that addresses neighborhood compatibility because of the subjective nature of the finding, which is no longer permitted by State law. Instead, this section of the code is proposed to be amended to require projects to follow the new objective design standards. These amendments will help the City to further address the objectives of Housing Program B6: Residential Design Standards.

Zone Change 23-05

New Chapter 18.84: Multi-Unit Residential and Mixed-Use Development Ministerial Review Process 

Staff is proposing to add Chapter 18.84 (Multi-Unit Residential and Mixed-Use Development Ministerial Review Process) to Article IV (Administrative) of Title 18 (Zoning) pursuant to Senate Bill 35 (SB 35). This new chapter would:

• Allow qualified multi-unit residential and/or mixed-use infill projects that provide lower income housing units to go through a simplified and expedited housing approval process;

• Identify the requirements for eligible projects, including the provision of a minimum share of affordable units, certain labor provisions, and consistency with local planning standards per Government Code Section 65913.4 and HCD’s SB 35 Guidelines; and,

• Include section headings (i.e., purpose, applicability, development eligibility, required standards, ministerial procedures, etc.) that clearly outline the required processes and standards in the LHMC for a potential developer to follow.

Adding this new chapter to the LHMC will help the City complete Housing Program B2: Efficient Processing, by establishing an efficient entitlement process, with objective design standards, and streamlined environmental review, for eligible housing projects, as permitted under SB 35.

CONCLUSION

The proposed Zone Changes will ensure that the City is completing the Housing Programs of the 2021-2029 Housing Element. The amendments will further fulfill General Plan Goals LU-7: Livable Neighborhoods, LU-9: Multi-family Neighborhoods, HE-2: Housing Opportunities, and HE-3: Provision of Affordable Housing and HE-4: Affirmatively Further Fair Housing, by enabling housing opportunities and affordability for all residents of the City, accommodating a variety of housing types, and high-quality designs. Therefore, staff recommends the Planning Commission approve the resolutions and recommend adoption of the ordinances to approve Zone Change 23-03, Zone Change 23-04, and Zone Change 23-05.

Costs associated with City-initiated amendments to the LHMC are included as part of the Planning Division's annual budget. The City was also able to attain the assistance from the consulting firm, Interwest, with the proposed amendments from the Orange County Council of Governments (OCCOG) under its REAP Grant funds to provide technical assistance to cities updating their housing policies and codes.   

The proposal only consists of amending the La Habra Municipal Code, as such no disturbance of soil is proposed. Thus, proposal is exempt from City’s National Pollutant Discharge Elimination System (NPDES) Municipal Permit, the Local Implementation Plan (LIP), and the Model Water Quality Management Plan (WQMP), Section 7.2.

In addition to meeting the Housing Element policies listed above in the chart, the proposed zoning code amendments will also achieve the following Land Use and Housing Element goals:

• Goal LU-7: Livable Neighborhoods. A City composed of neighborhoods with a variety of housing types that are desirable places to live, contribute to the quality of life, and well maintained.

• Goal LU-9: Multi-family Neighborhoods. Multi-family residential neighborhoods that provide ownership and rental opportunities, are well designed, exhibit a high quality of architecture, and incorporate amenities for their residents.

• Goal HE-2: Housing Opportunities. Well-designed housing opportunities throughout the city that are diverse in type, tenure, location, and affordability levels; that minimize environmental health hazards and incompatible land uses; and that enhance the quality of life for residents.

• Goal HE-3: Provision of Affordable Housing. Assist in the development, provision, and retention of long-term affordable housing opportunities for extremely low, very low, low, and moderate-income households, including individuals and families with special needs.

• Goal HE-4: Affirmatively further fair housing. Ensure housing opportunities are available to all without regard to race, color, ancestry, national origin, religion, marital status, familial status, age, gender, disability, source of income, sexual orientation, military status, or other arbitrary factors.

The proposed zoning code amendment will also achieve the following Fiscal Year 2022-2023 City Council Goals and Objectives:

• Goal 5 – Development Activity and Business Assistance
  • Objective C. Work closely with commercial and residential property-owners to improve and maintain the appearance of their properties.
  • Objective E. Continue to evaluate and improve the City’s development review process and continue to foster a “business friendly” environment within all City departments.
  • Objective M. Update, implement and provide annual performance reports for the General Plan in compliance with State law.
  • Objective O. Review the Zoning Code on an on-going basis and process amendments that ensure compliance with recent State legislation, streamline project processing, remove unnecessary regulations, and/or make the Zoning Code easier to implement.
  • Objective Q. Facilitate the development of high-quality housing, at a variety of income levels, to help meet projected demand, as set forth in the Regional Housing Needs Assessment (RHNA).