City of Sausalito Housing Element Update and Zoning Ordinance Amendments City Council Meeting | April 22, 2014

Agenda Purpose of Meeting Background Project Overview Zoning Ordinance Amendments Community Concerns Housing Element Update Next Steps Q + A

Purpose of Meeting Provide an Overview of the Housing Element purpose, process and its requirements Present Outline of Zoning Ordinance Amendments Discuss Community Concerns Provide Housing Element Update

Background Housing Element Update

Background Sausalito’s Recently Updated Housing Element: Covers 2 cycles ( and , adopted October 2012) Over 50 public meetings were held Low-impact housing strategies were utilized, including infill development, ADUs, Liveaboards and mixed use development incentives Required to comply with State Laws: Density Bonus, Special Needs Housing (Senate Bill 2), Reasonable Accommodation, Emergency Shelters Streamline review of Housing Element: Requires implementation of previous Housing Element (Zoning Ordinance Amendments)

Housing Elements 101 State-mandated Element of General Plan 5 Major Components:  Review of Past Element Performance  Housing Needs Assessment  Evaluation of Constraints to Housing  Identification of Residential Sites  Program Strategy to Address Needs Updated based on statutory schedule (8 years unless on a 5 year cycle) Review by State HCD for compliance with State law

Regional Housing Needs (RHNA)  RHNA = Regional Housing Needs Allocation  Requires cities to zone for “fair share” of region’s housing needs Based on State population growth Allocated based on jobs, population & household growth and vacancy rates Mix of housing for all economic segments Affordability linked to zoning and density  RHNA is a planning target, not a building quota

#1 Risk: Housing Element Litigation #2 Risk: Loss of Local Land Use Control #3 Risk: RHNA Becomes Cumulative (AB 1233) #4 Risk: Ineligibility for State Housing Funds, Related Infrastructure Funds #5 Risk: Future Penalties Risks of HCD Non-Compliance

Project Overview Zoning Ordinance Amendments and Housing Element Update

Project Overview Track 1 Zoning Ordinance Amendments Programs committed to in the adopted Housing Element Track Housing Element Update January 31st, 2015 – deadline for adoption

Project Overview Track 1: Zoning Ordinance Amendments Track 2: Housing Element Update Subcommittee Meetings (01/30, 02/07, 02/13, 04/09) Community Workshop #1 (03/15) City Council Meeting (02/25) City Council Meeting (04/22) Planning Comm. Hearings (05/21) City Council Hearings to Adopt (TBD) Jan 2014/ April 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 June/July 2014 Community Workshop #2 (TBD) City Council Meeting (04/22) City Council Meeting (TBD) Planning Comm. Hearings (TBD) City Council Meeting (TBD) City Council Hearings to Adopt. (TBD) Mar 2014 Apr 2014 May 2014June 2014 June/July 2014 July 2014 Sep/Oct 2014 Jan HCD Review of Draft (TBD) Aug/Sep 2014 Subcommittee Meetings (03/19, 03/31)

Track 1: Zoning Ordinance Amendments Implementing the Housing Element

1.Vertical and Horizontal Mixed Use (VMU/HMU)*** 2.Density Bonus Ordinance*** 3.Special Needs Housing (Senate Bill 2) 4.Reasonable Accommodation ***Draft Ordinances revised in response to community concerns Ordinances for Streamlined Housing Element Update Required by State Law for Streamline Review

Vertical Mixed Use (VMU) Purpose : Further encourage the provision of second story residential in commercial zoning districts, including mixed income units Upper stories in CC, CN - 1, and CR zoning districts limited to residential use only Projects with 1-5 units must include at least 1 affordable unit; Projects with 6 + units must include 20 % affordable units Zoning Ordinance Amendments

Horizontal Mixed Use Overlay (HMU) Purpose: Allow ground floor residential on designated commercial sites to better accommodate family housing and help retain neighborhood character by reducing the need for increased building heights Option to develop ground floor residential use in exchange for 50% affordable units and 30% three- bedroom units Applies to two sites: 1901 Bridgeway 2015 Bridgeway Zoning Ordinance Amendments

Density Bonus State mandate (Government Code Section ) Updates existing Density Bonus Ordinance Grants 5%-35% Density Bonus in exchange for providing affordable housing Density Bonus permitted to exceed normal allowed density Provides up to 3 concessions or incentives Only applies to projects of at least 5 units Example: 8 unit project with 20% (2 units) low-income units x 35% Density Bonus 10.8 ≈ 11 unit project  New project size

Zoning Ordinance Amendments Special Needs Housing (Senate Bill 2) Emergency shelters, transitional/supportive housing and single-room occupancies (SROs) Emergency Shelter Permitted in Public Institution (PI) zoning district, subject to Design Review procedures/code standards Transitional/Supportive Housing Defined and regulated as residential use SRO Units Conditionally permitted in CC, CR and CN-1 zoning districts

Zoning Ordinance Amendments Reasonable Accommodation Establishes procedure for granting reasonable accommodation Addresses accommodations to zoning, permit processing, and building regulations Example: Allow a ramp in a setback for access to an entry door for a wheelchair-bound resident

Community Concerns Addressing comments and concerns

Community Concerns Concerns voiced during Community Workshop (3/15/2014) and Subcommittee Meetings (3/31/2014 and 4/9/2014) Horizontal Mixed Use Ordinance (HMU) encourages new construction of multi-story buildings Density Bonus Ordinance in combination with HMU Ordinance

Horizontal Mixed Use 1901 and 2015 Bridgeway Neighborhood Concerns: Allowed standards in combination with Density Bonus Provisions Potential loss of views Potential traffic and parking problems Concern over property values Responses: Purpose statement revised to make clear that allowing residential on ground level instead of commercial is so that upper levels can be reduced to protect views Fact sheet on HMU Program and Density Bonus Program 1901 Bridgeway 2015 Bridgeway

HMU Strategy: Potential Next Steps Pending City Council Direction: Add language to the HMU ordinance regarding the potential for alternative sites Conduct an analysis of alternative sites for the upcoming Housing Element Update

Density Bonus Ordinance Introduction of tiered system for granting incentives/concessions. Applicants encouraged to seek Tier 1 route for incentives/concessions. Requires PC review. Tier 2 incentives/concessions are less preferred and potentially more impactful. Requires CC review. Both Tiers require pro forma demonstrating incentives necessary to ensure project affordability.

Density Bonus Ordinance: Tiered System Requires review and decision by Planning Commission Reduced minimum lot setbacks, lot sizes/dimensions, common/private open space Increased maximum building coverage (70%), maximum FAR (50%) Approval of mixed use zoning under the condition it reduces residential development costs Requires review and recommendation by Planning Commission and approval by City Council. Reduced parking, beyond State Alternative Parking Standards Building heights not compliant with Sausalito Municipal Code Section Other regulatory incentives or concessions proposed by applicant resulting in non- compliance with Sausalito Municipal Code (example: impacts to primary views) Tier 1 Incentives Tier 2 Incentives

Track 2: Housing Element Update Accommodating current and future needs

Housing Element Components Housing Needs Assessment Plans for the City’s share of the regional housing needs Evaluation of Constraints to providing housing Identification of available Residential Sites Implementation Strategy to address Housing Needs Housing Element needs to be approved by the City and Certified by the Department of Housing and Community Development (HCD)

Housing Element Update Progress Administrative Draft nearing completion Chapters and Appendices “redlined” for Streamlined Review 1 st Community Workshop held in March, generated feedback Upcoming tasks: Complete Admin Draft Housing Element Incorporate edits from City Conduct 2 nd Community Workshop Communicate with HCD during submittal and review

Next Steps

Finalize Ordinance Amendments Complete Administrative Draft of the Housing Element Community Workshop #2 to review highlights from Draft Housing Element

Schedule Track 1: Zoning Ordinance Amendments PC Hearings – May 21 CC Hearing – June/July Track 2: Housing Element Update Community Workshop #2 – May CC Meeting – June PC Meeting – June/July CC Meeting - July HCD Review of Draft – August/September CC Adoption – October/November Adoption Deadline - January 31, 2015

Thank You Contact: Lilly Schinsing Administrative Analyst Link to Housing Element Update progress:

Q + A

Reference Slides

Overview of VMU and HMU Sites

Special Needs (Senate Bill 2) Public Institution Zoning District

Income Category Very Low (<50% Median Income) Low (<80% Median Income) Moderate (<120% Median Income) Above Moderate Total Current and Previous RHNA Breakdowns

Accessory Dwelling Units (ADU) Update City adopted amnesty program for existing ADUs and zoning regulations for new ADUs Housing Element sites inventory includes 12 amnesty ADUs and 12 new ADUs during amnesty ADUs approved with 18 applications in process 3 new ADUs approved, with 2 applications in process Considerations: Rental vs. Vacation ADUs Affordable to low- and very-low income households? Upgrading of non-code compliant ADUs Original estimates: 48 new, 26 legalized ADUs. 12 new, 12 legalized approved by HCD

Potential Housing Units during the Planning Period Income LevelsVery LowLowModerate Above Moderate TOTALS % Total Units RHNA TARGETS Approved/Built % R-1 District Capacity % R-2-5 District Capacity % R District Capacity % R-3 District Capacity % Commercial District Capacity % Existing Liveaboards % Future Liveaboards % New Accessory Dwelling Units % Existing Accessory Dwelling Units % TOTALS Percentage Over/Under RHNA Target:0%180%276%-4%88%BUFFER Unit Capacity Over/Under RHNA Target:

Sausalito RHNA Plan and Strategy for the Planning Period LOW-IMPACT STRATEGIES RHNA PLAN Sites Inventory New ADUs Amnesty ADUs Unused Liveaboard Capacity STRATEGYBUFFER Very Low Low Moderate Above Moderate TOTAL