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HomeMy WebLinkAboutReso 162-2023 ( 23-884) 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 CITY COUNCIL 2023 FLOR NICOLAS, MAYOR MARK NAGALES, VICE MAYOR MARK ADDIEGO, MEMBER JAMES COLEMAN, MEMBER EDDIE FLORES, MEMBER SHARON RANALS, CITY MANAGER DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT Planning Department E-MAIL: [email protected] State Department of Housing and Community Development October 5, 2023 C/O Land Use and Planning Unit 2020 W. El Camino Ave, Suite 500 Sacramento, CA 95833 Re: City of South San Francisco 2023-2031 Housing Element Draft Submittal No. 4 Dear Mr. Paul McDougall, Please find the City of South San Francisco’s Addendum to the Adopted Housing Element for HCD determination that is complies with all state statutes. A word version summary of all Addendum edits is attached, as well as a redlined Adopted Housing Element for review. Please advise if this appropriately addresses HCD concerns listed in your guidance letters and if we are now ready for Certification. We look forward to the continued progress, Tony Rozzi, AICP | he/him | Deputy Director Economic and Community Development Department City of South San Francisco (650) 877-8535 | [email protected] Page 2 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 1. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) Housing Stock Condition: The element mentions substandard housing based on ACS data as it captures units in substandard condition as self-reported in Census surveys. As stated in the previous review, the element must estimate the number of units in need of rehabilitation and replacement. This estimate should include local information from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable builders/developers, including non-profit housing developers or organizations. The survey has been completed and is copied below for review and comments. Housing Stock Windshield Survey City staff completed a windshield survey of the whole City. As a whole, most of the residential neighborhoods in the City are in generally good condition and buildings are well-maintained. Within each Planning Sub-Area / Neighborhood, there are a mix of newer and older residential buildings; some of the older buildings are in more need of repair due to age of building, weather conditions, material deterioration, etc. (see below images). Key characteristics of each Planning Sub-Area / Neighborhood are highlighted below. Figure 1: Planning Sub-Areas Avalon-Brentwood • Generally newer homes in good condition. Page 3 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Downtown • Mix of newer and older homes and multi-family residential buildings. • Oldest part of the City with many historic structures, some of which are in need of restoration. • More overcrowded part of the City, with higher percentage of rental properties that are not well-maintained and in need of repair. East of 101 • No existing residential. El Camino Real • Primarily commercial buildings with some newer mixed-use / multi-family developments in good condition. Lindenville • No existing residential. Orange Park • Generally newer homes in good condition. Paradise Valley/Terrabay • Newer homes north of Hillside Blvd / Sister Cities Blvd that are in good condition. Page 4 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 • Older area south of Hillside Blvd / Sister Cities Blvd has more homes that are in need of minor repair. Sign Hill • Generally newer homes in good condition. Sunshine Gardens • Generally newer homes in good condition. Westborough • Some older homes in need of repair, primarily due to deterioration from weather conditions. Winston Serra • Generally newer homes in good condition. Summary Overall, there are three neighborhoods where some portion of homes were noted for repair: 1. Downtown Page 5 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 2. Paradise Valley/Terrabay 3. Westborough For the Downtown area, overcrowding, rental stock that has not been maintained, and income levels are the primary determinants. Paradise Valley represents some of the older homes adjacent to Downtown and suffers from similar characteristics and demographics. Westborough’s location is defined by consistent weather and atmospheric influences on building materials. The following Housing Programs have been modified to focus repair investment in these neighborhoods: Program PRSV-1.1 – Minor home repair Annually Citywide with focus on identified lower opportunity and income areas 5 per year per District (5 Districts) Program PRSV-1.2 – Prioritize funding for housing rehabilitation Annually Program PRSV-1.3 – Provide low interest loans for housing rehabilitation Annually (HE Location Page 38): 2. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need… (Gov. Code, § 65583, subd. (c)(1).) Realistic Capacity: The element must still account for the likelihood of residential development in zones that allow for 100 percent nonresidential development. For example, the element could discuss which zones allow 100 percent nonresidential development, evaluate all (residential and nonresidential) recent trends in the zones, discuss how often these developments include a residential component and account for that likelihood in the calculation of residential capacity. The Housing Element identifies three opportunity site corridors to meet RHNA Cycle 6 obligations: 1. Lindenville Opportunity Corridor 2. S. Airport Boulevard Opportunity Corridor 3. El Camino Real (North and South) Opportunity Corridor Each one of these corridors will be evaluated individually for the potential conflict between non-residential development and realistic residential development. Page 6 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 1. Lindenville Opportunity Corridor – red-lined edits beginning on P. 88 This sub-area is identified as Lindenville and covering 82 sites listed in Table 5-5 “Lindenville Corridor Housing Opportunity Sites”. Mixed-use and 100% residential uses and 100% non- residential uses are permitted throughout the selected opportunity sites, which are zoned either T3C, T4C, T4M, or T5C. Recent nonresidential trends in the City are almost entirely focused on Life Science Office development – this use is well capitalized, has available financing from both traditional markets and venture capital, and commands substantial rental rates once constructed. Life Science Office can out compete any other land use on a price per square foot basis. In order to manage the economic forces driving current Life Science Office development in the City, Life Science Office uses are not permitted in these zoning districts where they would otherwise displace potential housing development. Additionally, any other non-residential use is proposed to be Floor Area Ratio (FAR) restricted under the Lindenville Specific Plan zoning, as follows: Nonresidential FAR: 2.0 max. if residential on-site, 0.5 if no residential on-site For the Lindenville Corridor, previous allowable uses were confined to industrial uses only. No significant redevelopment projects have been proposed during the entire RHNA Cycle 5 period from 2015-2023 and this sub-area of the City could be categorized as stable with strong occupancy. The introduction of residential use to the area is likely to upend property values to some extent, particularly for long-time property owners with a low cost basis. Holistically, other development cycle forces aside from residential zoning also play an important role – the regional job/housing ratio, available land for residential development region wide, and a City’s streamlined review process all matter. Recent residential trends in South San Francisco suggest the construction of jobs continue to outpace housing units, there was limited land for residential development close to transit until the General Plan Update was adopted, and entitlement review processes are limted and quick (as explored in Chapter 4, page 50+). These factors combine to make stable, low occupancy industrial uses in the Lindenville Corridor viable residential opportunity sites. The pipeline project at 7 S. Linden Avenue is a great example – redevelopment of a single story industrial campus with over 550 rental units. Other potential pipeline applications (owner has expressed interest, hired architect, or otherwise entered into property sale negotiations with a residential developer) include: • 70 Unit Townhome Development on Railroad Avenue under the T4C Zoning • 40 Unit Townhome Development at 170 S. Spruce Ave under the T3C Zoning • 150 Unit Development on S. Spruce Ave under the T4C Zoning • 150 Unit Development at 1487 Huntington Ave under the T5C Zoning By limiting FAR development for 100% nonresidential development, the City is preserving the Lindenville Corridor for either A) adaptive reuse of existing buidlings for maker space and other light industrial users, or B) residential redevelopment that is permitted with high FAR Page 7 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 and density allowances. Our calculations for realistic capacity, however, are always based on minimum FAR to ensure a conservative optimism for redevelopment on opportunity sites. 2. South Airport Boulevard Opportunity Corridor This sub-area is identified as South Airport Boulevard and covering 41 sites listed in Table 5-6 “South Airport Boulevard Corridor Housing Opportunity Sites”. Mixed-use and 100% residential uses and 100% non-residential uses are permitted throughout the selected opportunity sites, which are zoned either T5C or T6UC. Recent nonresidential trends in the City are almost entirely focused on Life Science Office development – this use is well capitalized, has available financing from both traditional markets and venture capital, and commands substantial rental rates once constructed. Life Science Office can out compete any other land use on a price per square foot basis. In order to manage the economic forces driving current Life Science Office development in the City, Life Science Office uses are not permitted in these zoning districts where they would otherwise displace potential housing development. For the South Airport Boulevard Corridor, previous allowable uses were confined to hospitality, amenity, commercial, and industrial uses only. No significant redevelopment projects have been proposed during the entire RHNA Cycle 5 period from 2015-2023 and this sub-area of the City could be categorized as stable with strong occupancy up until COVID-19 when the hospitatly sector (Hotels, Convention Centers, for instance) was decimated. The introduction of residential use to the area is likely to upend property values to some extent, particularly for long-time property owners with a low cost basis. Holistically, other development cycle forces aside from residential zoning also play an important role – the regional job/housing ratio, available land for residential development region wide, and a City’s streamlined review process all matter. Recent residential trends in South San Francisco suggest the construction of jobs continue to outpace housing units, there was limited land for residential development close to transit until the General Plan Update was adopted, and entitlement review processes are limted and quick (as explored in Chapter 4, page 50+). These factors combine to make stable, low occupancy industrial uses or low performing hospitality uses in the South Airport Boulevard Corridor viable residential opportunity sites. The opportunity site at 245 S. Airport Boulevard is a great example – redevelopment of low cost, poorly reviewed hotel that has been on the market for sale could result in up to 480 units without State Density Bonus or maximum densities considered. Other potential pipeline applications (owner has expressed interest, hired architect, or otherwise entered into property sale negotiations with a residential developer) include: • 154 Unit Development on 100 Utah Avenue under the T5C Zoning Our calculations for realistic capacity, however, are always based on minimum FAR to ensure a conservative optimism for redevelopment on opportunity sites. 3. El Camino Real (North and South) Opportunity Corridor Page 8 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 This sub-area is identified as El Camino Real (North and South) and covering 29 sites listed in Table 5-7 and 5-8 “El Camino Real – North and South Corridor Housing Opportunity Sites”. Mixed-use and 100% residential uses and 100% non-residential uses are permitted throughout the selected opportunity sites, which are zoned T4C, T5C or RH-180. Recent nonresidential trends in the City are almost entirely focused on Life Science Office development – this use is well capitalized, has available financing from both traditional markets and venture capital, and commands substantial rental rates once constructed. Life Science Office can out compete any other land use on a price per square foot basis. In order to manage the economic forces driving current Life Science Office development in the City, Life Science Office uses are not permitted in these zoning districts where they would otherwise displace potential housing development. For the El Camino Real Corridor, previous allowable uses were included hospitality, amenity, commercial, mixed-use and residential uses. Substantial redevelopment activity has occurred on the residential and public investment side – the City’s new Park and Recreation Facility and Police Headquarters have been focused at the intersection of El Camino Real and Chestnut Avenue. These public investments will anchor nearby residential projects just completed or in the pipeline, as discussed in the next section. Recent residential trends in South San Francisco suggest the market rate apartmetn development on the western side of US-101 has been very strong for the last eight years. The City has entitled or constructed over 2,000 units. Recently completed or pipeline/entitled projects along the El Camino Real Opportunity Corridor include: • 800 units at 1051 Mission Road entitled under and currently completing construction documents. • 172 units at 988 El Camino Real entitled and fully constructed. • 184 units at 180 El Camino Real entitled and currently completing construction documents. • 338 units at 410 Noor Avenue entitled and under construction. • 262 units at 1477 Huntington Avenue entitled. These numbers are based on actual entitled projects, all of which used maximum density and State Density Bonus Law with their applications. Our calculations for realistic capacity, however, are always based on minimum FAR to ensure a conservative optimism for redevelopment on opportunity sites. (HE Location Page 896): In addition, the element did not address comments related to the timing of specific plans completion and clarify whether appropriate zoning is in place prior to implementing the specific plans. For the three corridors identified above, all identified zoning used to calculate opportunity site capacity has been adopted and effective since November, 2022. Page 9 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Additionally, the Lindenville Specific Plan is currently underway and funded primarily through an MTC/ABAG Priority Development Area grant. Funding must be used and the project must be completed by the December, 2023. The City is currently on track to complete the project in the Fall of 2023. The Lindenville Specific Plan may modify zoning to improve the capacity for residential development, but there are no proposed edits that would reduce capacity on any opportunity sites identified. Instead, the Lindenville Specific Plan will clarify specific zoning expectations and maintain or improve densities throughout the study area. Original General Plan assumptions of base density remain in the draft Housing Element to be conservative about residential unit yield. Adopted zoning is already in place to permit housing in Lindenville as part of the Housing Element opportunity site analysis. At this time, there is no schedule for the creation of a South Airport Corridor Specific Plan – the City is currently completing applications to submit to MTC/ABAG for expandion of a Priority Development Area to include this corridor for future study. In the interim, the City has adopted appropriate density and development standards to permit residential and mixed use development throughout the South Airport Corridor. A future specific plan, similar to the Lindenville Specific Plan, will simply refine design and development expectations but will maintain identified General Plan and zoning densities for purposes of opportunity sites RHNA assumptions. (HE Location Page 89): Nonvacant Sites Analysis: The element did not address this finding. While the element includes general statements related to the lifecycle of the types of uses that are on the existing sites, it does not provide support to demonstrate the potential for residential development on the sites identified in the inventory. See prior review. See analysis above as response. Edited below per HCD comments: 1. Expand discussion of existing uses, trends to demonstrate potential for redevelopment Nearly every opportunity site identified in the adopted Housing Element is non-vacant. This is the nature of fully built out cities in San Mateo County like South San Francisco. The existing operation/structures on many of the nonvacant sites is nearing the end of its useful life, however. The City has attempted to thoughtfully identify opportunity sites with the three study corridors (Lindenville, South Airport, and El Camino Real) that have underperforming commercial centers and low density industrial development – none of the identified sites have existing residential uses, although the City still proposes a new program for no net-loss as a proactive measure throughout South San Francisco. The City’s confidence level for these selected opportunity sites redevelopment is high – nearly every residential project that has been constructed since 2013 has been on underperforming or underdevelopment commercial properties within the Downtown area or its environs. While these sites are not as simple as green field development, the City’s experience and that of associated developers has grown tremendously over the last ten years. Akin to Redwood City’s downtown success, South San Francisco has mimicked the adoptiong of objective form based codes, streamlined review under SB 330, and poured Page 10 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 millions of Housing Trust Fund dollars into affordable housing projects for pre-development, land acquisition, and operation. Review of the City’s eight year performance under RHNA Cycle 5 through the Housing Element’s Annual Progress Report shows that 81% of the RHNA units were produced. Without the COVID-19 pandemic and subsequent freeze on residential construction, well over 100% of total RHNA units (1,864) would have been issued construction permits. While the City has fallen short in producing the lower income RHNA units, this Housing Element has new programs in place to improve production – advocate and HCD recommendations have been incorporated throughout the Housing Element programs for RHNA Cycle 6. Those are the broad trends of development in South San Francisco. More specifically, identified pipeline projects provide clues to the City’s redevelopment potential. Table 5-2 indicates the current pipeline projects and existing uses, which are all quite similar to each other in existing operation and the RHNA Cycle 6 identified opportunity sites: Site Address APN Existing Use Acres 201 Baden Ave 199 Airport Blvd 012-335-120 012-335-110 Commercial 0.49 180 El Camino Real 014-183-110 Commercial 1477 Huntington Ave 014-184-999 Commercial 1.98 40 Airport Blvd 015-126-010 Commercial 1.63 421 Cypress Ave 209-213 Lux Ave 012-314-070 012-314-080 012-314-090 Commercial Parking Lot 0.58 455-463 Grand Ave 012-305-060 012-305-070 Commercial Parking Lot 0.32 7 S Linden Ave 014-074-010 Industrial 4.22 1051 Mission Rd 093-312-050 093-312-060 Vacant 5.9 124 Airport Blvd 100 Produce Ave 015-113-180 015-113-380 Commercial 4.12 423 Commercial Ave 012-323-200 Residential 0.14 These pipeline projects have been entitled for redevelopment on commercial property, some of which are income positive commercial or industrial uses such a restaurant, office park, and industrial warehouse facility. This variety of existing uses suggests that similar sites in the Lindenville, South Airport and El Camino Real corridors with hotels, commercial retail, or warehouse uses will also have redevelopment potential. Almost uniformly, the pipeline projects have existing structures that are single or two story buildings, at least fifty years old, with on-site parking that monopolizes the site. The opportunity sites selected throughout the three corridors for RHNA Cycle 6 share these characteristics as these sites historically have been redeveloped successfully in South San Francisco since 2013. Additionally, the opportunity sites are varied in size. While there are Page 11 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 some sites smaller than 0.5 acres, there are two pipeline projects of that size and proceeding with new residential units. The project at 201 Baden Avenue would be up to 82 units and entirely affordable. Finally, the opportunity sites selected are informed by expressed interest in redevelopment – many property owners reached out to City staff during the General Plan Update process to upzone and redevelop their properties with mixed use housing. Underperforming hotels (245 S. Airport Blvd) and commercial storage buildings (101 Utah Avenue) along South Airport Bouleveard, industrial food production facilities in Lindenville (151-171 S. Spruce Ave), and shuttered restaurants along El Camino Real (840 El Camino Real) have submitted preliminary applications or initiated conversations with the Planning Division to redevelop into housing. (P.951 in redlined HE) Replacement Housing Requirements: The element includes “comment noted” in response to HCD’s previous replacement housing requirements finding. However, Cell 112 of the electronic sites inventory has current residential use on 0.71 acres (APN #101-620-070) with nine lower-income and 48 moderate-income units. The element must include a program or remove the site. The replacement housing program must have the same requirements as set forth in Government Code section 65915, subdivision (c)(3). Resolved. An incorrect address was used to refer to a mixed use zoned property that is currently develped with a commercial fast casual restaurant. This address is 471 El Camino Real, not 455 El Camino Real as previously indicated. The site has been updated (Cell 112) in the revised HCD Sites Inventory Template to show the existing use as Commercial and will be resubmitted with the revised Housing Element. Additionally, the City of South San Francisco already introduced a Program to require no net loss meeting the expectations of replacement housing requirements, shown below and edited per HCD letter dated 06/18/23: Program PRSV-6.1 – Update Zoning Code to require no net loss. The City shall update the Zoning Ordinance to require that there is no net loss in the number of residential units during reconstruction or renovation. Replacement provisions will have the same requirements as set forth in Government Code section 65915, subdivision (c)(3). Responsibility: Department of Economic and Community Development – Planning Division Time Frame: No later than December 31, 2023 Funding Source: N/A, staff time (HE Location Page 93212) Page 12 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Supportive Housing: The element includes further information towards addressing this finding. In addition, the element includes links to updated land use tables and definitions in the updated General Plan and companion zoning. However, the element needs to describe and analyze the City’s supportive housing standards and codes and demonstrate consistency with section 65583(c)(3) or revise programs. Specific code reference listed below: (3) Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650). Cal. Gov. Code § 65583 To address this, the City previously included a Program to refine zoning to be consistent with State Law and how Supportive Housing is regulated. Please see program below for details on action and deliverable date with updated per HCD letter dated 06/18/23: Program SNP-8.2 – Zoning for Supportive Housing and Permanent Supportive Housing. Amend zoning and permit procedures to permit supportive housing (as defined by Government Code section 65582) as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential uses of the same type in the same zone. In adddition, permanent supportive housing is a type of supportive housing that meets specific statutory requirements pursuant to Government Code section 65651, The City will also amend zoning to permit permanent supportive housing without discretionary action (including removing conditional use permits and statutory CEQA exemptions) in all zones allowing multifamily if meeting specific requirements pursuant to Government Code section 65651. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: No later than December 31, 2023. Funding Source: Staff time (HE Location Page 124222) Low Barrier Navigation Centers: The element includes further information on Low Barrier Navigation Centers. However, a Low Barrier Navigation Center, in the City’s Municipal Code is narrowly defined as a Domestic Violence Shelter and limits facilities to serving just a maximum of ten clients. In addition, the element includes a link to updated land use tables and definitions as part of the updated General Plan and companion zoning. However, the Page 13 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 element must demonstrate compliance with Government Code section 65660 and include programs as appropriate. Currently, the adopted Zoning Ordinance defines Low Barrier Navigation Center narrowly as a Domestic Violence Shelter. This type of use is limited to ten clients, which does not appear to be in conflict with Government Code Section 65660, which does not specify unlimited size for a Low Barrier Navigation Center. State code requires this use is by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code Section 65660. The zoning classification should be updated, however, to match the Low Barrier Navigation Center definition and language and thus a new program has been introduced to ensure compliance, shown below and edited per HCD letter dated 6/18/23: Program CST-3.3 – Revise Zoning Definition for Domestic Violence Shelter to match the requirements of a Low Barrier Navigation Center under CA Government Code Section 65660 and 65662, including by-right zoning (without discretionary action) provisions, as applicable, in mixed use and non-residential zones permitting multifamily uses and meeting specific requirements pursuant to Government Code section 65652. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: No later than December 31, 2023 Funding Source: Staff time (HE Location Page 208125): Single Room Occupancy (SRO) Units: The element states that SRO units are no longer permitted in South San Francisco and existing SRO units are managed under the City’s legal non-conforming ordinance. In addition, the element states that group residential uses are permitted and meet the general goal of previous SRO developments but does not describe how. The element must describe how (development standards and permit procedures) SROs are allowed or add a program as appropriate. This description is being restated as the definitions in the adopted Zoning Ordinance have been updated to resolve this concern – staff previously misrepresented this response. Single Room Occupancy uses now fall under the City’s Group Residential Uses, defined below: Group Residential. Shared living quarters without separate kitchen or bathroom facilities for each room or unit, offered for rent for permanent or semi-transient residents on a weekly or longer basis. This classification includes rooming and boarding houses, dormitories and other types of organizational housing, private residential clubs, and residential hotels intended for long-term occupancy (30 days or more) but excludes Hotels and Motels (see Hotel and Motel), and Residential Care Facilities (see Residential Care Facilities). Page 14 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Group Residential uses, are conditonally permitted in the RM-22, RH-37.5 and RH-50, RH- 180, DRM, DRH, DRC Zoning Districts with a Minor Use Permit. Group Residential uses are permitted by-right in the T3N Zoning District, and conditionally permitted in the T4M, T5C and T6UC Zoning Districts with a Conditional Use Permit. The Minor Use Permit and Conditional Use Permit process are described in detail starting on P.65. (HE Location Page 126132) Programs: The element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. A revised site analysis has been submitted for consideration and new programs listed/reflected in the updated redlines. AFFH analysis conducted with review of each relevant program and numerical goals to further fair housing have now been included in the evaluaiton matrix. Affected programs will be updated to include metrics and neighborhood focus areas, as appropriate, to ensure AFFH implementation. Site analysis is now complete with programs continued, modified, or newly introduced per HCD guidance. Accessory Dwelling Units (ADU): The element now assumes an average of 38 ADUs per year and assumes 304 ADUs over the eight-year regional housing needs allocation (RHNA) Cycle 6 period. In addition, ADU assumptions have been updated based on a four-year cycle (2019-2022) with available data and revisions after errors were found. The element should include a commitment to reconcile trends with reported units within the Cities submitted annual progress report. Further, as stated in the previous review, programs should commit to additional incentives and strategies, frequent monitoring (every other year) and specific commitment to adopt alternative measures such as rezoning or amending the element within a specific time (e.g., six months) if number and affordability assumptions are not met. Modified Program CRT-6.1 below and City will continue to rely on CRT-10.1 and CRT-10.2 to actively promote meaningful ADU construction and participation through a pilot construction management project and per HCD letter dated 6/18/23: Program CRT-6.1 – Continue to support the development of secondary dwelling units consistent with State Law and educate the community about these standards. City will continue to allow permissive design standards for ADUs with no parking required in most instances, reduced setbacks, larger units and ADUs allowed on both single- and multi-family zoned parcels. Actively promote participation in the City’s two-year pilot program Hello ADU for comprehensive project management support for ADU construction. City shall track compliance with ADU construction through the Annual Page 15 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Progress Report to reconcile trends with actual ADU permits issued and commit to new ADU promotion programs if ADU construction falls more than 30% off-trend. Responsibility: Department of Economic and Community Development – Planning Division; Planning Commission Time Frame: Annual reporting to HCD through the Annual Progress Report; if ADU production and affordability falls 30% below recent trend line assumptions, City shall adopt alternate measures (e.g., incentives, funding, development standard modification, rezoning) to maintain adequate sites to accommodate the regional housing need allocation by income group and promote ADU construction within six months. Funding Source: Staff time to promote program; City funding for promotion programs, additional construction management. (HE Location Page 94199) 3. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).) Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities (Gov. Code, § 65583, subd. (c)(3).) Land Use Controls: The element included additional information on land use controls. However, the analysis must specifically describe and analyze maximum lot coverage in the RH-50 zone, height limits in the RM-22, DRM, and T3 zones, maximum floor area ratios in the ETC zone without utilizing a community benefit, the FAA height constraint in the T6 zone, and whether there are minimum unit sizes. Additional analysis below to address these identified gaps and per HCD letter dated 6/18/23: • RH-50 Maximum Lot Coverage o RH-50 lot coverage is 65%, as shown in the adopted zoning standards Table 20.070.003: Development Standards – Residential Zoning Districts, available here: https://library.qcode.us/lib/south_san_francisco_ca/pub/municipal_code/item/t itle_20-division_ii-chapter_20_070-20_070_003 o When combined with other development standards, lot coverages of 65 percent facilitate achieving maximum densities. For example, after accounting for setbacks, parking, minimum open space and landscaping, even on a minimum Page 16 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 lot size of 5,000 square foot, the development standards would accommodate approximately six units or 50 units per acre. • RM-22, DRM, T3C Height Limits o RM-22 has a height limit of 35 ft/3 stories. When combined with other development standards, a height limit of 35 ft/3 stories facilitate achieving maximum densities. For example, after accounting for setbacks, parking, minimum open space and landscaping, even on a minimum lot size of 5,000 square foot, the development standards would accommodate approximately three units or 22 units per acre. o DRM has a height limit of 35 ft/3 stories. When combined with other development standards, a height limit of 35 ft/3 stories facilitate achieving maximum densities. For example, after accounting for setbacks, parking, minimum open space and landscaping, even on a minimum lot size of 5,000 square foot, the development standards would accommodate approximately three units or 22 units per acre. o T3C has a height limit of 50 feet and a maximum density of 60 du/ac. This zoning district with several opportunity sites is near single family, low density residential and the adotped height limit of 50 feet has been done to scale development appropriately. Staff has received a preliminary application for townhomes at 170/180 S. Spruce Avenue since adoption of the General Plan showing feasibility. The project actually proposes the minimum density of 20 du/ac at the two addresses and a height of approximately 35 feet – the project would be for-sale and provide 15% of the base density units at low and moderate income levels per adotped City Ordinance. o When combined with other development standards, a maximum FAR still permits maximum densities. For example, after accounting for setbacks, parking (zero minimum parking required), minimum open space and landscaping, even on a minimum lot size of 10,000 square foot, the development standards would accommodate approximately 46 units or 200 units per acre. • ETC Maximum Floor Area Ratio without Community Benefits o Maximum FAR is not indicated in adopted zoning that excludes Community Benefits. Community Benefits are only required for non-residential projects, however. For residential projects, density and height are the primary zoning controls. Permitted denisty is 200 du/ac and there is no height limit, other than Federal Aviation Administration (FAA) height constraints that begin at approxmately 200 feet, allowing for some of the largest residential project opportunities in South San Francisco. o When combined with other development standards, a maximum FAR still permits maximum densities. For example, after accounting for setbacks, parking (zero minimum parking required), minimum open space and landscaping, even on a minimum lot size of 10,000 square foot, the Page 17 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 development standards would accommodate approximately 46 units or 200 units per acre. • T6UC FAA Height Constraint o This zoning district is governed by the Federal Aviation Administration (FAA) height limits, which typically do not have limitations until 150 feet or higher. T6UC allows Flex High Rise building types, which are permitted to go up to 12 stories (averaging around 120 feet) and therefore no constraints on potential residential construction for these opportunity sites is anticipated. o When combined with other development standards, a maximum height limit of 150 ft per FAA, for instance, still permits maximum densities. For example, after accounting for setbacks, parking (zero minimum parking required), minimum open space and landscaping, the development standards would accommodate approximately 46 units or 200 units per acre. • Minimum unit sizes in any of these zones? o No minimum sizes for residential units are required in any of the transect form based zoning districts. Only building form and function are managed by zoning, thereby creating maximum flexibility for density and development of opportunity sites. (HE Location Page 6465) Fees and Exactions: The element includes additional information on fees and exactions. However, the element must list and analyze planning fees including, but not limited to, conditional use permits (CUP), zone changes, general plan amendments, variances, site plans, specific plans, affordable housing in lieu fee, lot line adjustment, and other environmental fees. Based on the outcomes of the analysis, the element should include programs to address identified constraints. Per HCD request, the following fee schedule and related fees for a sample residential project are listed below to help illustrate the overall fees and exactions and their measure as a contraint. Additional information has been provided per HCD letter dated 6/18/23: Current Fee Schedule: https://www.ssf.net/home/showpublisheddocument/28173/638035828937770000 Planning fees are based on a cost recovery model and generally represent a minor proportion of total development costs per units. Sample Residential Project – 100 Unit Multi-family Development (85’ tall, 7 stories) Planning Fee Amount Residential -Multi Family Design Review $2,314 Categorical Exemption CEQA Clearance Environmental Consistency Analysis CEQA Clearance $185 OR $5,543 San Mateo County Environmental Documentary Handling Fee $50 City Attorney Reimbursement Deposit $2,000 Page 18 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Legal Notices $554 Inclusionary Housing Requirement – 15% of total units at base density or $308,000 per unit in lieu fee TBD TOTAL Anticipated Fees $5,103 - $10,461 depending on CEQA Clearance Costs • Total Fees as Percentage of Development/Construction Costs – Approximately 4% through review of all 20 Cities and County of San Mateo • No General Plan Amendment, Zoning Text Amendment, Zoning Map Amendment, Specific/Master Plan, or Variance fees typically apply. No identified opportunity sites require special zoning or General Plan amendments – these are only required in unique circumstances and would not apply to any identified opprotunity sites. Therefore, no substantial fees aside from Design Review, Environmental Compliance Review, and City Attorney Review are required. As illustrated in the example above, the total anticipated fees represent 4 percent of development costs, placing South San Francisco as the fifth among its peers in San Mateo County for proportional fees. (HE Location Page 6768 - 71) Local Processing and Permit Procedures: The element includes information on processing and permit procedures. However, the element should further describe and analyze findings for the Design Review Board for multifamily units. The element should identify and analyze approval findings for impacts on approval certainty, the presence of processes or guidelines to promote certainty and add or modify programs as appropriate. The Design Review Board shall review all multifamily units for compliance with adopted objective design standards (adopted and effective since November, 2022). During the multi- family residential review process, the Design Review Board is allocated a SINGLE meeting to provide design comments before forwarding to the Planning Commission for project consideration and approval as long as the project meets all Design and Zoning standards. The process is already described in detail in the submitted Housing Element but some clarifications related to required findings is included below with a new program added. The following required findings are included below: 20.480.007 Required Findings A. The Chief Planner, Planning Commission, or City Council may only approve a design review application if it finds that the application is consistent with the purposes of this chapter and with the following: 1. The applicable standards and requirements of this Ordinance; 2. The General Plan and any applicable specific plans the City Council has adopted; 3. Any applicable design guidelines adopted by the City Council; Page 19 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 4. Any approved tentative map, Use Permit, variance, or other planning or zoning approval that the project required; and 5. The applicable design review criteria in Section 20.480.006 (“Design Review Criteria”) above. Staff is proposing a new program to edit Finding No. 5 reference to Section 20.480.006 to ensure consistent review of objective design standards only. Program CST-4.2 – Update Design Review Criteria to reflect objective design standards. With the recent updated Zoning Ordinance with objective standards for single-family and multi-family residential development, additional reference updates are necessary to ensure residential projects are reviewed under objective design standards only. Section 20.480.006 shall be updated to refer to adopted objective design standards only. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: No later than December 31, 2023 Funding Source: Staff time (HE Location Page 7376 and 209) Reasonable Accommodation Ordinance: The element was revised to state that reasonable accommodations would be provided “when so doing would be consistent with the purposes of the Zoning Ordinance and it is not possible or practical to approve a variance” (page 70). However, the purpose of the reasonable accommodation is to provide a separate exception process to zoning and land use. As a result, the element must include a program to address this constraint. Per HCD guidance, City of South San Francisco will update the Zoning Ordinance via Program EQ-8.3, illustrated below: New Updated for HCD Review Program EQ-8.3 – Ensure accessibility requirements. When residential buildings are inspected for occupancy, check for posters that explain the right to request reasonable accommodations for persons with disabilities. Make this information available and clearly transparent on the City's website and fund landlord training and outreach on reasonable accommodations. Additionally, Chapter 20.510 provides the Waiver and Modifications process to establish an alternate means of granting relief from the requirements of the Zoning Ordinance when so doing would be consistent with the purposes of the Zoning Ordinance and it is not possible or practical to Page 20 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 approve a variance. This procedure is intended, but is not limited to facilitating compliance with the Federal Fair Housing Act, the Americans with Disabilities Act, and the California Fair Employment and Housing Act by providing reasonable accommodation to persons with disabilities seeking fair access to housing through modification of the application of the City’s zoning regulations. If reasonable accommodation is not be provided appropriately and the City receives this feedback, modify Chapter 20.510 as needed with HCD input, if necessary.Update Chapter 20.510 with the HCD model ordinance provided at t.ly/dYdaJ to ensure compliance with Reasonable Accommodation requirements. Responsibility: Department of Economic and Community Development – Building Division; Planning Division Time Frame: Ongoing and establish procedure by December 31, 2025. Funding Source: City funds, staff time (HE Location Page 187165) Programs: The element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. Additional programs added in response to further analysis, as detailed above. AB-2339 Compliance per HCD Review Letter 3, dated 9/29/23 City of South San Francisco must comply with AB-2339 and introduce a new program showing that emergency housing shelters are by-right in a zone that currently permits residential zoning. A modified program has been introduced: Program CST-5.2 – Compliance with AB-2339 to allow by-right Emergency Shelters. In addition to the Mixed Industrial zone, the City will add a zoning district where residential uses are permitted to permit emergency shelters by-right (without discretionary action) (e.g.,T5 Corridor Zoning District (T5L) or similar). Zoning and permit procedures will be amended to meet all requirements pursuant to AB 2339, including amending the definition of emergency shelters, establishing or revising development standards if necessary and ensuring sufficient and suitable capacity to meet the need for emergency shelters, including proximity to services. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: Within 1 year of adoption Funding Source: Staff time (HE Location Page 199) Page 21 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Program CST-4.1 (Implement Adopted Objective Design Standards): The program must include actions and timing to implement the objective standards. The current program language is included below and edited per HCD reviewer request: Program CST-4.1 – Implement adopted objective design standards. Implement the updated Zoning Ordinance with objective standards for single-family and multi- family residential development as projects are submitted. Implementation shall include review of each project under Section 20.480.006. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: Completed as part of General Plan Update and companion zoning. Objective Design Standards shall be implemented on a rolling basis as projects are submitted. Each residential project will be subject to no more than five public meetings and design feedback will be provided initially at the Design Review Board meeting, held once per month. Funding Source: Staff time (HE Location Page 194196) 4. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).) Timing: As state in the previous review, to have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs must have specific commitment to housing outcomes and discrete timing (e.g., at least annually or by January 2024). While some programs have been revised, many programs still do not include specific timeframes that are associated with each action that are committed to in the program. For example, many programs have a range (e.g., 2023-2025), ongoing, or have timeframes of annual or bi-annual. The element must review all programs to ensure actions have a specific timeframe for implementation within the planning period. 1. Some programs are implemented daily, such as the following Program PRSV-2.1 below. Implementing an arbitrary AND specific timeframe makes no sense – some programs should only report on an annual basis while being implemented on a daily basis. Program PRSV-2.1 has been modified to attempt to find common ground with HCD repeat requests for discrete, somewhat arbitrary implementation dates. Similar edits are made throughout for programs that “have a range (e.g., 2023-2025), ongoing, or have timeframes of annual or bi-annual.” Page 22 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Program PRSV-2.1 – Enforce housing, building and safety codes. The City shall continue to aggressively enforce uniform housing, building, and safety codes as well as eliminate incompatible uses or blighting influences from residential neighborhoods through targeted code enforcement and other available regulatory measures. Responsibility: City Attorney; Fire Department; Department of Economic and Community Development – Building Division Time Frame: Ongoing implementation with reporting annually through the Annual Progress Report. Funding Source: City funds 2. Date ranges were also provided to give a best estimate for earliest and latest implementation. Based on the HCD comment, South San Francisco will select the latest date in the range for implementation, but of course, this ultimately weakens the program at the expense of HCD comments for a discrete deliverable date in lieu of a date range. Edits are made throughout for programs that “have a range (e.g., 2023-2025), ongoing, or have timeframes of annual or bi-annual.” (HE Location Page 196 212 for PRSV-2.1 and throughout Program for Updates) Monitoring and evaluation programs: The element contains programs that commit to evaluations or monitoring of activities. Many of the activities are done on a bi-annual basis. However, the programs lack specificity on what will be evaluated, if the activity will then be modified accordingly, and when those modifications will occur. Programs that need to be revised include Program EQ 5.1, CRT 2.2, and CRT 3.1. Edits completed to provide metrics or select an expert consultant to advise City on appropriate measurements. Modified per HCD letter dated 6/18/23 and 7/14/23. Program EQ-5.1 – Conduct a robust evaluation of the inclusionary housing program. Evaluate the effectiveness of delivering units for residents with the greatest housing needs (e.g., single parent families, child-friendly housing, accessible/visitable units for persons with disabilities) and make modifications as appropriate. Responsibility: Department of Economic and Community Development – Economic Development and Housing Division Time Frame: Bi-annually Funding Source: City funds, staff time P. 179 183 in redlined HE Page 23 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Program CRT-2.2 – Regularly review Inclusionary Housing Ordinance. The City shall review the success of the Inclusionary Housing Ordinance, not more frequently than bi-annually, to determine if the objectives of the ordinance are being met. Consideration shall be made to revising provisions of the ordinance to ensure that a range of housing opportunities for all identifiable economic segments of the population, including households of low and moderate incomes, and those persons with developmental disabilities, are provided. Responsibility: Department of Economic and Community Development – Economic Development and Housing Division and Planning Division Time Frame: Evaluate bi-annually as part of Annual Progress Report and make revisions, as appropriate, within one year Funding Source: Staff time P. 184 194 in redlined HE Program CRT-3.1 – Review Commercial and Housing Linkage Fee. The City shall continue to implement the Commercial and Housing Linkage Fee, reviewing not more frequently than bi-annually, to determine if the fee is appropriate and keeping pace with affordable housing production needs. Responsibility: Department of Economic and Community Development – Economic Development and Housing Division; City Council Time Frame: Evaluate annually as part of Annual Progress Report and make revisions, as appropriate, within one year Funding Source: City funds P. 184 195 in redlined HE Educational Materials programs: The element was revised to include commitments to provide educational and proactive outreach for a number of housing activities. However, the element does not state if those materials have already been developed or timing for development, and when they will be made available on the website or other locations. Programs to be revised include EQ 1.1, EQ 3.1, EQ 4.1, EQ 6.1, EQ 7.2, CRT 10.1, CRT 10.2, and CRT 11.1. Edits completed to provide clarity on whether documents were complete and how they are available and distributed. Program EQ-1.1 – Enforce equal housing opportunity laws. The City shall require that all recipients of locally administered housing assistance funds and other Page 24 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 means of support from the City acknowledge their understanding of fair housing law and affirm their commitment to the law. The City shall proactively provide materials to help with the understanding of and compliance with fair housing law by including these on the Housing Division website, distributing at all hosted housing events, and an annual communication via distribution mailing list, water bill, or similar to property owners. Responsibility: Department of Economic and Community Development – Housing Division Time Frame: Ongoing – Annual reporting as part of CDBG Funding and Annual Progress Report. Legal notice posted regularly online here for more information: https://www.ssf.net/departments/economic-community-development/housing. Funding Source: Staff time P. 175 178 in redlined HE Program EQ-3.1 – Provide renter education and assistance. Continue to connect low-income residents to city, county, state, and non-profit resources that provide technical, legal, and financial assistance for renters facing eviction in multiple languages. The City shall proactively provide educational materials by including these on the Housing Division website, distributing at all hosted housing events, and an annual communication via distribution mailing list, water bill, or similar, to tenants. Responsibility: Department of Economic and Community Development –Housing Division Time Frame: Offered daily from City staff and North County’s Core Services Provider YMCA. Supportive documents regularly posted online here for more information: https://www.ssf.net/departments/economic-community- development/housing. Funding Source: CDBG or HOME administrative funds, as available, staff time P. 177 180 in redlined HE Program EQ-.4.1 – Provide resident housing rights education. Provide education, outreach, and referral services for residents regarding their rights as tenants and buyers. The City utilizes CDBG funds to support Project Sentinel, a local fair housing nonprofit, to provide counseling, dispute resolution, and other services to residents. Project Sentinel assists both renters and homeowners with issues related to discrimination, landlord issues, housing privacy, reverse mortgages, eviction, foreclosure, and numerous other housing issues. The City shall proactively Page 25 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 provide educational materials by including these on the Housing Division website, distributing at all hosted housing events, and an annual communication via distribution mailing list, water bill, or similar, to tenants. Responsibility: Department of Economic and Community Development – Housing Division Time Frame: Daily ad hoc support and Annual Training. Legal notice posted regularly online here for more information: https://www.ssf.net/departments/economic-community-development/housing. Funding Source: City funds, staff time, CDBG P. 178 182 in redlined HE Program EQ-6.1 – Increase affordable units. Increase the number of affordable rental and homeownership units in moderate and higher resource areas of South San Francisco through targeted redevelopment and gentle infill. Prioritize the development of the existing Municipal Services Building at 33 Arroyo Drive and any other jurisdiction owned assets for 100% affordable housing development partnership or jurisdiction-led project. The City shall proactively provide promotional materials on development opportunities by including these on the Housing Division website, distributing at all hosted housing events, and an annual communication via distribution mailing list to potential development partners. Responsibility: Department of Economic and Community Development – Planning Division. Developer information provided at the following websites and updated regularly: https://www.ssf.net/departments/economic-community- development/housing/resources-for-developers and https://construction.ssf.net/. Time Frame: Evaluate annually as part of Annual Progress Report Funding Source: Staff time P. 180 184 in redlined HE Program EQ-7.2 – Fund home repair for low-income property owners and tenants. Continue to fund minor home repairs and implement a preference for projects in low opportunity census tracts identified in the AFFH analysis. Expand the program to assist renters. The City shall proactively provide educational materials by including these on the Housing Division website, distributing at all hosted housing events, and an annual communication via distribution mailing list, water bill, or similar, to property owners and tenants. Page 26 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Responsibility: Department of Economic and Community Development – Housing Division. Home repair information posted and updated online here: https://www.ssf.net/departments/economic-community-development/housing. Time Frame: Annually during CDBG Funding Public Hearings Funding Source: CDBG funds, as available P. 181-2186 in redlined HE Program CRT-10.1 – Maintain and update preapproved accessory dwelling unit (ADU) plans. Preapprove additional ADU plans from ADU vendors to expedite ADU permit processing if State law changes and current plan designs need adjustment. The City shall proactively provide educational materials by referring to these posted documents on the Planning Division website, distributing at all hosted housing events, and an annual communication via distribution mailing list, water bill, or similar, to property owners. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: Ongoing – current plans meeting all local and state codes are approved and available to residents here: https://www.ssf.net/departments/economic-community-development/planning- division/accessory-dwelling-units-junior-accessory-dwelling-units. Will be reported annually through the Annual Progress Report. Funding Source: Staff time, consultant time for plan updates through the Commercial Linkage Fee P. 192 204 in redlined HE Program CRT-10.2 – Continue ADU construction management program with Hello Housing or similar, to promote privately funded ADU construction. Continue operation of construction management program for ADU design, permitting and construction through Genentech grant of One Million dollars. The City shall proactively provide educational materials by including these on the Housing Division website, distributing at all hosted housing events, and an annual communication via distribution mailing list, water bill, or similar, to property owners. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: Ongoing while funding permits. Program details are posted and regularly updated here: https://www.ssf.net/departments/economic-community- Page 27 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 development/planning-division/accessory-dwelling-units-junior-accessory-dwelling- units and https://www.helloadu.org/. Funding Source: Staff time, consultant time for program administration using Genentech grant funding P. 192 205 in redlined HE Program CRT-11.1 – Connect residents to mortgage assistance resources. Provide mortgage assistance to help low-income homeowners at risk of foreclosure with financial or counseling support. Provide residents with resources and connections to HEART of San Mateo County, a countywide homeowner assistance program, and other non-profit homeowner assistance programs. The City shall proactively provide educational materials by including these on the Housing Division website, distributing at all hosted housing events, and an annual communication via distribution mailing list, water bill, or similar, to property owners. Responsibility: Department of Economic and Community Development –Housing Division Time Frame: Ongoing with resources regularly updated and posted here: https://www.ssf.net/departments/economic-community-development/housing/fair- housing-legal-services. Funding Source: Staff time, City funding to Core Social Service Agencies P. 193 206 in redlined HE Program CRT-4.1 (Site Acquisition for Affordable Housing): The program was revised to include program planning annually. In addition, the element should describe what potential incentives will be offered and include proactive outreach to developers. Updated with potential incentives and proactive outreach to read as follows: Program CRT-4.1 – Site acquisition for affordable housing. The City shall work with for-profit and nonprofit housing developers to acquire sites that are either vacant or developed with underutilized, blighted, and/or nonconforming uses for the development of affordable housing. Annually, the City will meet with developers to discuss and identify development opportunities, and potential funding sources, potential impact fee waiver or funding contributions by the City, and attend residential and commercial broker conferences to identify opportunities. Responsibility: Department of Economic and Community Development – Housing Division and Planning Division; Planning Commission; City Council Page 28 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Time Frame: Annual Reports to City Council via Public Hearing, Closed Session, or Memorandum update on potential site acquisition with annual program planning Funding Source: Various P. 185 196 in redlined HE Program EQ 6.1 (Increase Affordable Units): The program should specify when it will make 33 Arroyo Drive and other jurisdiction owned assets available for disposition within the planning period and in accordance to the Surplus Lands Act. In addition, as 33 Arroyo drive was identified in the previous housing element cycle, the program should commit to make the site available by-right when at least 20 percent of the units are affordable to lower-income households. (Gov. Code, § 65583.2, subd. (c).) Program has been modifed as follows to commit to investigation of locally owned jurisdiction sites no later than December 31, 2030, however, the City is not able to pre commit to disposing this site given there are competing community uses that could be located on locally owned jurisdiction sites. This is particularly true for 33 Arroyo Drive. Program EQ-6.1 – Increase affordable units. Increase the number of affordable rental and homeownership units in moderate and higher resource areas of South San Francisco through targeted redevelopment and gentle infill. Prioritize the development of jurisdiction owned assets for 100% affordable housing development partnership or jurisdiction-led project and following the Surplus Lands Act. The City shall proactively provide promotional materials on development opportunities by referring to these posted documents on the Housing Division website, distributing at all hosted housing events, and an annual communication via distribution mailing list to potential development partners. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: No later than December 31, 2030, and evaluate annually as part of Annual Progress Report Funding Source: Staff time P. 180 184 in redlined HE Program CRT 9.1 (Create Affordable Housing Overlay Zone): The element now includes a commitment to “explore provisions for an affordable housing overlay zone that requires less that 100% of units at affordable income levels” However, it is unclear if the consideration will be done as part of the overlay zone implementation consistent with AB 2011 and SB 6 or if another overlay zone is being considered. If another overlay zone is being considered, the element must include specific timeframes for implementation. Page 29 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Program has been updated to reflect the bifurcated process – The City will codify AB 2011 and SB 6 for simplicity no later than December 31, 2023 and will explore and implement a potential City-led overlay no later than December 31, 2026. See updated program below: Program CRT-9.1 – Create affordable housing overlay zone. Implement an affordable housing overlay zone consistent with AB 2011 and SB 6 that permits 100% affordable housing developments in as many appropriate zoning districts as possible. Additionally, and separately, explore provisions for a City-led affordable housing overlay zone that requires less than 100% of units at affordable income levels to ensure feasible opportunities. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: Updated zoning ordinance to reflect AB 2011 and SB 6 no later than December 31, 2023, and updated zoning ordinance consideration of a City-led affordable housing overlay zone that requires less than 100% of units at affordable income levels no later than December 31, 2026. Funding Source: Staff time to ensure zoning consistency with this General Plan goal. P. 190 202 in redlined HE 5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).) As stated in the prior review, Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting, and metrics or numeric objectives. The element was not revised to include milestones, metrics or numerical objectives, and geographic targeting. In addition, it is unclear which program actions relate to the prioritized contributing factors listed on page 152. Finally, most of the program commitments around AFFH are educational or commit to outreach. Many of the programs that significantly respond to fair housing issues only commit to “evaluate” and “consider” actions rather than provide a specific commitment. For example, as acknowledge in the AFFH analysis, the City faces a significant displacement risk. However, Program EQ 3.2 commits to conduct a public hearing to understand options for anti-displacement and Program EQ- 3.4 only commits to “evaluate” and if directed develop a just cause for eviction notice. The programs must provide a specific commitment to adopt appropriate anti- displacement strategies from the list of potential strategies that will be evaluated. This does not limit the City in adoption of other strategies in addition to those listed. Finally, the program Page 30 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 should provide specific timeframes for milestones when implementing this program including community workshops, feasibility analysis, and finally adoption of implementing policies. Programs EQ-3.2 and 5.1 have been updated with suggested HCD language per letter dated 6/18/23: Program EQ-3.2 – Conduct a public hearing to consider an anti-displacement plan. Explore Conduct a public hearing to understand options for an anti- displacement plan to halt displacement in the city, particularly in Downtown, Sign Hill, El Camino, and Sunshine Gardens, and establish policies and objectives, as appropriate, which may include a rent stabilization policy, just cause-eviction and harassment protections, tenant and landlord mediation programs, right of first refusal, rental assistance, tenant legal counseling, and a rent board to implement the program. As policies are developed and /adopted, develop objectives by which to measure the success of each program area based on best practices and professional guidance. Responsibility: Department of Economic and Community Development – Economic Development and Housing Division Time Frame: 2023-2025 Funding Source: City funds, staff time P. 177 180 in redlined HE Program CST-5.1 – Permanent Supportive Housing. Group home housing is currently permitted in multiple residential only zoning districts with approval of a minor use permit to support the availability of housing choices for persons with special needs. Under HCD best practice guidance, however, requiring these housing types to obtain a special use or CUP could potentially subject housing for special needs populations to higher discretionary exceptions processes and standards where an applicant must, for example, demonstrate compatibility with the neighborhood, unlike other residential uses. Update Zoning Ordinance to allow by- right in all residential zoning districts allowing residential uses similar to other residential uses of the same type in the same zone. Responsibility: Department of Economic and Community Development – Planning Division Time Frame: 2023 Funding Source: Staff time P. 196 210 in redlined HE Page 31 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Additionally, with guidance from HCD, staff has prepared the following matrix to evaluate all appropriate programs under the rubric of Affirmatively Furthering Fair Housing (AFFH) below, citing necessary edits to adopted Programs, including deliverables, timeline, and targeted numerical objectives. Affirmatively Furthering Fair Housing Primary Action Matrix – Program Updates will apply Programs Timing Geographic Targeting Targeted Numerical Objective Housing Mobility and New Opportunity in Higher Opportunity Areas Program EQ-5.2 – Participate in a regional down payment assistance program to support Missing Middle housing demand. Quarterly Neighborhoods west of Highway 101 250 Households Program EQ-6.1 – Increase affordable units Annually Moderate and higher resource and income area neighborhoods Dispersed RHNA allocation Citywide so that each of Five Districts has a percentage of new housing relative to existing households with a goal of 200 units per District. Program EQ-6.3 – Affordable housing fund policy No later than 2025 Citywide (includes S. Airport Corridor) Allocation of up to $55,000 per unit in funding support for up to 1,000 units over RHNA Cycle Program CRT-2.1 – Implement Inclusionary Housing Ordinance Annually Citywide with focus on identified higher opportunity and income areas 15% of all new units minimum Program CRT-4.1 – Site acquisition for affordable housing Annually Citywide with focus on identified higher opportunity and income areas Parcel acquisition in each City district (5 Districts) Program CRT-4.6 – City led acquisition and/or development of new mixed-income affordable housing Annually Citywide with focus on identified higher opportunity and income areas 300 units with 20 percent target in higher income areas Program CRT-6.1 – Continue to support the development of secondary dwelling units and educate the community about this program Annually Citywide with focus on identified higher opportunity and income areas 38 units per year with 50 percent in relatively higher income neighborhoods Program CRT-10.1 – Maintain and update preapproved accessory dwelling unit (ADU) plans Annually Program CRT-10.2 – Continue ADU construction management program with Hello Housing or similar to promote privately funded ADU construction 2023-2025 Program CRT-6.2 – Continue to implement SB 9 units and subdivision allowances Annually Citywide with focus on identified higher 5 units per year with 50 percent in Page 32 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 opportunity and income areas relatively higher income neighborhoods Program CRT-7.2 – Allow housing on sites with institutional uses 2023-2025 Citywide with focus on identified higher opportunity and income areas 100 units during RHNA Cycle 6 Program CRT-9.1 – Create affordable housing overlay zone 2026 Citywide with focus on identified higher opportunity and income commercial corridor areas 200 units during RHNA Cycle 6 Program SNP-4.1 – Accessibility Modification Programs Annually Citywide with focus on identified higher opportunity and income areas 10 per year, as funding permits Program SNP-6.1 – Support a variety of housing unit designs, including larger housing units that can accommodate large families Annually Citywide 25% of all units as large family units during RHNA Cycle 6 Program SNP-9.1 – Continue to promote Home Sharing Annually Citywide with focus on identified higher opportunity and income areas 10 per year, with cooperation from County partners Place-Based Strategies toward Community Revitalization Program EQ-6.2 – Incentivize accessibility development Annually Citywide with focus on identified higher opportunity and income areas >5% of all units in an entitled project development Program EQ-7.1 – Prioritize Capital Improvement Program for vulnerable populations Annually Downtown, Orange Park, Lindenville, E101 and other areas with higher concentrations of lower-income households or vulnerable populations Lower income census tracts or flood prone tracts should receive largest proportion of CIP investment over period of RHNA Cycle 6 Program EQ-7.2 – Fund home repair for low- income Annually Lower opportunity census tracts 10 households per year as funding and County collaborations allow Program CRT-4.2 – Support and pursue funding applications for affordable housing Annually City-wide Apply to annual San Mateo County NOFA and Federal NOFA as partner with projects Program PRSV-1.1 – Minor home repair Annually Citywide with focus on identified lower opportunity and income areas 5 per year per District (5 Districts) Program PRSV-1.2 – Prioritize funding for housing rehabilitation Annually Program PRSV-1.3 – Provide low interest loans for housing rehabilitation Annually Program PRSV-2.1 – Enforce housing, building and safety codes Annually Citywide enforcement N/A Page 33 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Program PRSV-3.1 – Direct CIP funding for infrastructure equitably Annually Downtown, Orange Park, Lindenville, E101 and other areas with higher concentrations of lower-income households or vulnerable populations Lower income census tracts or flood prone tracts should receive largest proportion of CIP investment over period of RHNA Cycle 6 Program QOL-3.1 – Implement the Active South City Pedestrian and Bicycle Plan Annually Citywide with focus on poorly connected neighborhoods (Westborough, Avalon, Buri Buri) Equitable allocation of bicycle and pedestrian infrastructure miles over period of RHNA Cycle 6 Program QOL-4.1 – Implement the Active South City Pedestrian and Bicycle Plan Annually Citywide with focus on poorly connected neighborhoods (Westborough, Avalon, Buri Buri) Equitable allocation of bicycle and pedestrian infrastructure miles over period of RHNA Cycle 6 Program QOL-5.1 – Implement the Zoning Ordinance to require amenity, active, outdoor and flex working spaces in new development Annually Citywide with focus on E101, S. Airport Corridor, Lindenville Corridor and El Camino Real Corridor Five percent increase in Citywide open space over period of RHNA Cycle 6 Program QOL-6.1 – Implement the Zoning Ordinance to require neighborhood Amenity uses in new development Annually Citywide with focus on E101, S. Airport Corridor, Lindenville Corridor and El Camino Real Corridor Five percent increase in Citywide open space over period of RHNA Cycle 6 Program SNP-1.3 – Facilitate multi- generational housing Annually Citywide with focus on identified higher opportunity and income areas ADU Construction Metrics – 38 per year, Citywide Displacement Risk Program EQ-1.1 – Enforce equal housing opportunity laws Annual or bi- annual City-wide with emphasis in areas of higher displacement risk Assist 100 households per year for RHNA Cycle 6 Program EQ-2.1 – Legal counsel and advocacy assistance Program EQ-3.1 – Provide renter education and assistance Program EQ-.4.1 – Provide resident housing rights education Program EQ-4.2 – Provide landlord housing rights education Program EQ-8.2 – Provide fair housing training Program EQ-3.2 – Conduct a public hearing to consider an anti-displacement plan 2025 Citywide TBD after evaluation Program EQ-3.4. Evaluate and, if directed under EQ-3.2, develop a local just cause for eviction ordinance to go above California’s 2025 Citywide TBD after evaluation Page 34 of 34 SSF Draft Housing Element Submittal No. 4 to HCD – Track Changes Letter Only 400 GRAND AVENUE  P.O. BOX 711  SOUTH SAN FRANCISCO, CA 94083 Tenant Protection Act (TPA), the state’s just cause for eviction law adopted in 2019 Program EQ-3.3 – Create a rental task force 2025 Citywide with focus on areas facing highest percentage of displacement (Old Town, Orange Park, Lindenville) TBD after evaluation Program EQ-8.1 – Create Preservation Plan 2023-2025 Citywide 100 units preserved over RHNA Cycle 6 period Program EQ-8.5 – Continue the Rental Assistance Pilot Program 2023 Citywide with focus on areas facing highest percentage of displacement (Old Town, Orange Park, Lindenville) 25 households assisted annually over RHNA Cycle 6 period, if program continued Program CRT-4.1 – Site acquisition for affordable housing Annual Citywide with focus on identified higher opportunity areas Parcel acquisition in each City district (5 Districts) Program CRT-9.2 – Preserve naturally- occurring affordable housing 2024 Citywide with focus on areas facing highest percentage of displacement (Old Town, Orange Park, Lindenville) Preserve 100 Units over RHNA Cycle 6 period Program CRT-9.4 – Explore adoption of a Community Opportunity to Purchase Act Policy 2024 Citywide with focus on areas facing highest percentage of displacement (Old Town, Orange Park, Lindenville) Provide 100 Units over RHNA Cycle 6 period Program PRSV-5.1 – Monitor at-risk units Annually Citywide with focus on areas facing highest percentage of displacement (Old Town, Orange Park, Lindenville) Preserve 50 Units over RHNA Cycle 6 period Program PRSV-5.2 – Assist tenants at risk of displacement Annually Citywide with focus on areas facing highest percentage of displacement (Old Town, Orange Park, Lindenville) Preserve 50 Units over RHNA Cycle 6 period P. 184 188 in redlined HE – inserted table and updated programs, as appropriate