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HomeMy WebLinkAboutKENNEDY COMMISSION (ITEM 8) ,w-Kennedy a . • M M I S S 1 • 17701 Cowan Ave., Irvine, CA 92614 Tel.(949)250-0909-www.kennedycommission.org October 5, 2021 Mayor Clark and City Council City of Tustin 300 Centennial Way Tustin, CA 92780 RE: Item 8 - Comments to City of Tustin Housing Element Draft dated October 2021 Mayor Clark and City Council, Thank you for the opportunity to review and comment on the City of Tustin's 2021-2029 Housing Element Draft. We have reviewed the draft and are submitting this letter to provide public comments, The Kennedy Commission (the Commission) is a broad-based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $27,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land-use policies that have led to the construction of homes affordable to lower-income working families. Public Engagement Public engagement is a necessary component of the Housing Element process. As California Housing Element law states: "The local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element..."' Broad participation and true engagement of the public increase the likelihood that the community members involved in the discussion and planning processes will support new housing strategies and housing developments. Public engagement should include participation from residents of diverse communities,housing consumers, service providers, and advocates. The city conducted three community workshops thus far, and one survey available at two different times, but did not provide alternative, diverse options for residents to participate in the Housing Element process or specific outreach for lower income residents. The three workshops,with one additional remaining workshop to be held on October 5, 2021,were study sessions and public hearings with the Planning Commission and City Council. This does not constitute adequate community engagements. The city should have hosted additional meetings intended to exclusively engage residents. Moreover, the city did not provide information on how many of those participants were residents of Tustin, and, specifically,low-income residents. Furthermore, the City's survey was only available to residents for a little over a month at a time, from January 21, 2021,to February 28, 2021, and June 30, 2021, through July 30, 2021. That is not enough time for residents to participate, especially low-income and special needs residents who generally face more digital Gov.Code,§ 65583,subd.(c)(9) 1 Kennedy Commission Comments Tustin Draft Housing Element October 5, 2021 connectivity issues.Not surprisingly, the survey only had 192 respondents,not all of which were residents,which is not sufficient evidence of resident engagement. Moreover,the city does not provide a description of the respondents, so it is unclear how many residents were from lower income communities. The City needs to properly engage community stakeholders and residents in the evaluation and creation of policies, goals,programs and sites for affordable housing development, especially low income and special needs residents who are the most vulnerable to the housing crisis and document these efforts. In addition, the availability of the document to the public and opportunity for public comment prior to submission to HCD is essential to the public process. However, the City did not provide sufficient opportunity for the public to review the Housing Element draft. The draft was released to the public on June 30,2021, and it was also submitted to HCD for review on that same day. The city should proactively make future revisions available to the public, including any commenters, prior to submitting any revisions to HCD and diligently consider and address comments, including making revisions to the document where appropriate. Community Needs According to SCAG's pre-certified housing data,there are a total of 13,595 renter households in Tustin,with 3,670 or 27% of those households' spending thirty percent or more of gross income on housing costs. Additionally, 3,360 or 25%renter households are extremely rent burdened and are paying fifty percent or more of gross income on housing costs. Furthermore, 25% of renter households live in overcrowded conditions.3 Employment: The City's analysis on the employment available in Tustin was not thorough enough. For example, unlike other Orange County jurisdictions who provided information on the median income of the primary employment of residents in their jurisdictions, Tustin failed to provide this information. Analyzing the wage ranges, major employers and employment sectors are important to adequately serve the needs of the employees earning those wages. One takeaway from the limited information provided and that is found in Table H-4, is that the majority of jobs in the city fall into the lower- income categories. For example, the service sector is the largest employment sector in the city providing 41.1% of jobs. Furthermore, according to Table H-6, the City has a jobs to housing ratio of 1.78 indicating that while Tustin may be a job-rich city but does not have sufficient housing for its residents. The City of Tustin should take into account its local economy and offer healthy and affordable housing options that the current market-rate housing development is not offering. The Housing Element must also describe employment trends by industry and how changes either recent or anticipated can affect the housing market and discuss opportunities for improving work-housing balance, such as mixed-use to facilitate housing that is located near jobs. Housing Stock Conditions: The Housing Element must"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."4 While the element includes some information on 2 SCAG Pre-Certified Housing Data for the City of Tustin,Housing Element Draft,p. 11-9,June 2021 3 Page 11 4 Gov.Code,§65583,subd.(a)(2) 2of10 Kennedy Commission Comments Tustin Draft Housing Element October 5, 2021 housing stock conditions from American Community Survey (ACS) data, it is not thorough enough. For example,the analysis could include estimates 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. 5th Cycle Housing Element RHNA Performance During the current 5th cycle planning period the city had a total Regional Housing Needs Assessment(RHNA) of 1,227, 283 at very low-income, 195 at low-income, 224 at moderate and 525 at above moderate. To date,the city has approved 114 units at moderate and 1,240 at above moderate.5 At very-low income the city has approved 94 units and 74 at low-income. The city has exceeded 5th Cycle Housing Element(5th cycle)targets for moderate and above moderate, creating an unbalanced production housing units. The number of moderate and above moderate units approved in the last seven years was 7 times more than those at low and very low income. This imbalance in housing production and lower income housing deficit in the City indicates that the City's affordable housing policies have not been effective in incentivizing and producing affordable housing for lower income households. 5th Cycle Identified Opportunity Sites: In the 5th Cycle, the city identified housing opportunity sites for very low- and low-income housing primarily in Neighborhood D and Neighborhood G of the Tustin Legacy Specific Plan (TLSP). Out of 1,351 units approved in the TLSP, only 262 units are affordable. 161 of these units were provided by the Anton Legacy project which was completed in 2015. No other housing at the very low- and low-income levels has been approved on the TLSP since the approval of the Anton legacy project. In fact, the City has not issued building permits for any other affordable units during the 5th Cycle other than 7 ADUs. The lack of affordable housing production shows the need for a strong affordable housing policy such as an affordable housing policy that requires that at least a 20% affordable housing requirement is set aside for very low and low-income households in all projects proposed on the city owned sites in the TLSP Neighborhood D and Neighborhood G. Currently there is no analysis of what commitment or housing policy will be implemented on these sites to prioritize affordable housing in the lower income households in the TLSP. This is a particularly important strategy for the TLSP sites given that they are owned by the city. Without strong affordability requirements, the TLSP zoning circumvents the efforts of the State density bonus law to include affordable housing in exchange for development incentives and increases in density because these sites provide market- rate developers the densities they need by-right. Housing Policies to Increase Affordable Housing Past Performance: The City must"review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element."6 While the element includes a program-by-program review of implementation in the prior planning period, the review of past programs should also analyze the cumulative effectiveness of programs on addressing 5 Tustin 2020 Housing Element Annual Progress Report,Table B 6 Gov.Code§65588(a)and(b) 3of10 Kennedy Commission Comments Tustin Draft Housing Element October 5, 2021 special housing needs over the previous planning period. As the 5th Cycle progress indicates,the City's housing policies have developed housing in an unbalanced way and prioritized market-rate housing over housing for low-income families. For the upcoming 6th Cycle,we recommend that the City include policies with stronger affordability requirements instead of continuing to hope that the market will deliver affordable housing by identifying higher density sites for lower-income RHNA needs. Examples of policies the City can implement are in the section below titled "Recommendations." Incentivizing Affordable Housing in the 6th Cycle Housing Element: To ensure that affordable housing is created in the sites identified for the 6th Cycle, the Commission recommends the following revisions to the programs proposed by the city for the 6th Cycle: e Program 1.1 Residential Development—Available Sites: The City proposes to facilitate housing production, including lower income housing,by implementing the appropriate zoning and densities in the TLSP, the Downtown Commercial Core Specific Plan (DCCSP), and the Red Hill Avenue Specific Plan (RHASP), Tustin Market Place and The Enderle Center. However, as proven by the little amount of affordable housing production that has occurred in these areas over the 5th Cycle and the overproduction of above moderate housing, the city needs to implement strong regulatory incentives on these sites to ensure lower income housing is produced on these sites. We recommend these suggestions be implemented by 2022 given low-income residents' urgent need for affordable housing. o TLSP: Of 1,351 units approved on the TLSP, only 262 are affordable. Given that the TLSP currently lacks an inclusionary requirement,the Commission recommends that the city require that at least a 20% of units in all residential projects in the TLSP for very low and low-income households. The City's revision of the policy to allow by- right development for projects that include 20% affordable housing units is commendable, but not strong enough to ensure these units will be built given the land use and development incentives given to market rate development in the TLSP. o DCCSP and RHASP: Only a total of 6 very low-income units have been approved on the DCCSP and RHASP since the adoption of these specific plans in 2018. However, 171 above-moderate income units have been approved in these two areas. While projects approved on the DCCSP and the RHASP are subject to the City's 2018 Workforce Housing Ordinance, it is clear in the unbalanced production in the area to- date that this ordinance is not strong enough to produce the affordable housing needed. The Commission recommends that the city strengthen the Ordinance to require that at least 15% of the units in all projects approved in these two specific plans be set aside for very low- and low-income housing. Program 1.3 Density Bonus Program: While densities bonuses are an important strategy to produce affordable housing,they are not effective unless accompanied by strong affordable housing requirements, such as inclusionary policy. The areas the City has identified for affordable housing,the TLSP,the DCCSP, and the RHASP, either have no density restrictions or a minimum of at least 25 dwelling units per acre (du/ac) with the ability to increase that density as long as the total number of units allowed in the specific plan are not surpassed. This circumvents the efforts of the State density bonus law to include affordable housing in exchange for increases in density or incentives because these sites already provide market-rate developers with the densities and land use concessions that they need. 4of10 Kennedy Commission Comments Tustin Draft Housing Element October 5, 2021 • Program 1.4 Voluntary Workforce Housing: The City proposes to conduct a study of the 2018 Voluntary Workforce Housing Ordinance from 2022 to 2023. We recommend that the city commits to implementing any steps that will strengthen the Ordinance by no later than 2025. Furthermore, given that not enough affordable housing has been incentivized on the DCCSP and RHASP, which are both subject to the Ordinance,the Commission recommends that the city amend the Ordinance so that it requires that projects set aside at least 15% of the units for very low- and low-income housing. • Program 1.5 Zoning Code Streamlining Program: In addition to conducting a study to identify industrial and commercial areas that can accommodate housing, the City should implement inclusionary policies on the sites that are identified. Thus far, the City has not had a problem producing market-rate housing,but it has failed to produce sufficient lower income housing. Furthermore, the city needs to commit to conducting a thorough environmental analysis of the sites identified, especially industrial sites,to ensure appropriate environmental remediation of the land occurs. • Program 1.6 Mobile Home Programs: Mobile homes often provide affordable housing options to low-income residents. However, low-income residents are increasingly vulnerable to rent increases and conversions of parks to residential developments that are not affordable to them. This is especially true for senior mobile home residents, as they are also at-risk of their mobile homes losing their senior-status and becoming family parks which typically have higher rents. Many mobile home residents have the additional burden of having invested in the mobile home that sits on the land they rent and that is logistically and financially difficult to move. As such,the Commission recommends that the city include stronger protections against rent increases on mobile home land and conversions of parks. Furthermore,the City should provide effective relocation assistance to residents who are displaced due to rent increases and conversions. • Program 1.8 Accessory Dwelling Units Programs: The City needs to include stronger programs that will ensure ADUs will be affordable to lower income households. • Program 1.14 Adaptive Reuse of Historic Resources to Facilitate Affordable Housing Production: The City needs to provide more details and how this program will be implemented and include requirements that ensure that this program will primarily produce units at the very low and low-income housing. • Program 2.5 Affirmatively Furthering Fair Housing: To address the clear patterns of segregation and lack of affordable housing available to low-income communities in Tustin, the city needs to move beyond providing educational materials to residents. It must also implement policies that will produce lower income housing throughout the City and identify ways to increase investment in low resource communities. The city should consider the suggestions the Commission has provided in the section below titled"Recommendations". • Program 3.1 Condominium Conversions: Condominiums are generally inaccessible to lower income residents. As such,the city must ensure that there is a 1:1 unit replacement for low-income residents displaced by a condominium conversion so that this resident has access to an affordable unit in the city. Furthermore, the City needs to ensure sufficient relocation assistance is provided to impacted residents. Additionally,the City needs to specifically state what types of incentives and assistance will be given to low-income families to help them purchase any approved condominiums and ensure that they are sufficient to ensure some of these condominiums will be accessible to lower income households. We also suggest these incentives and assistance be extended to very low-income families. 5of10 Kennedy Commission Comments Tustin Draft Housing Element October 5, 2021 • Program 3.7 Preservation of Assisted Housing: The City should work with community groups to create a community land trust that can ensure that current and future affordable units at-risk of becoming market-rate, can remain affordable in perpetuity. Another strategy the City could pursue is a Right-of First-Refusal Policy that would give tenants the ability to buy properties that are losing their affordability in order to keep these properties affordable. • Program 3.8 Membership of the California Community Housing Agency(CalCHA): The City should explore creating a similar program for extremely low and very low-income families who seem to currently be excluded from Ca1CHA. Moreover, there may be low- income residents in market-rate housing who might not be able to verify their incomes as required by Ca1CHA for a variety of reasons like immigration status or their type of employment. The city should ensure these residents are not displaced and it should find alternatives that will allow them to benefit from a program like CaICHA. In addition, the Kennedy Commission provides a list of recommendations on housing policies and programs in the recommendations section below. Housing Element Opportunity Sites Inventory Identified Low Income Sites: As part of the analysis of adequate sites,the city has reviewed potential housing sites citywide and has identified opportunity sites for lower-income households in the TLSP,the DCCSP, and the RHASP, Tustin Market Place and Enderle Center. The sites are predominantly identified based on zoning and default densities for lower income units. No other housing policy has been incorporated that will effectively incentivize affordable housing on these sites. The lack of progress developing affordable housing on these specific plans in the 5th Cycle shows the need to accompany zoning and default densities with regulatory tools that will effectively produce housing at the lower income levels like an inclusionary policy. Furthermore, affordable housing projects ideally need a minimum density of 30 du/ac. Yet, this density is only allowed in the TLSP, DCCSP, and RHASP if the total number of units permitted in each of these areas has not been exceeded. If the City continues to prioritize market-rate housing in these areas, the densities ideal for affordable housing will not be possible on the TLSP, DCCSP, and RHASP. Suitability ofNon-vacant Sites: The Housing Element must include an analysis demonstrating the potential for redevelopment of non-vacant sites. To address this requirement, the Housing Element should describe and support the potential for additional development in the 6th Cycle and consider additional factors such as the age of structure,presence of expiring leases, condition of the structure, and expressed interest in development. The city does not provide adequate evidence of the likelihood of the non-vacant sites being developed into affordable housing in their Housing Element draft. For example, it is unclear if the owners have expressed explicit interest in developing their properties and, if so,by when they would transition their properties. The following are non-vacant sites for which the likelihood of development seems low based on the information provided by the city: e Site #5: This site is currently a Denny's restaurant. Did the owner state interest in developing this property as residential and, if so, by when? 6of10 Kennedy Commission Comments Tustin Draft Housing Element October 5, 2021 • Site #6: This site includes a Stater Bros grocery store and other commercial businesses that are used by the community. The site also has three different owners. Did the owners explicitly state interest in developing the property and, if so,by when? • Site #7: This site is the frontage of another apartment complex. Did the owner state interest in developing this property and, if so,by when? • Site #8: This site is the Bel-Air Motor Hotel. Did the owner state interest in developing this property as residential and, if so,by when? Furthermore, if this site is converted from a motel to a residential development, the city would need to conduct a study to assess if there are any long-term, low-income residents living at this motel and ensure that there is relocation assistance and 1:1 replacement of units for these residents. • Site #10: This site is Larwin Square, and it includes multiple commercial businesses that are frequently used by the community including a Bank of America,US Bank, Rite Aid, Pollo Loco, FedEx, and Gold Coastal Dental. Did the owner of this property state interest in developing this property as residential and, if so,by when? • Site #11 and #12: This site has been reused twice, first used in the 4th Cycle and then again in the 5th Cycle. The city needs to provide more evidence of how the city plans to increase the probability these sites will be developed into affordable housing in the 6th Cycle. • Site #17 and #18: The Market Place and Enderle Center sites are both high performing and highly active shopping centers. The draft does not provide any analysis or information as to the feasibility or potential for development of housing. These two commercial centers have institutional and community anchor retail that is highly used and profitable. Have the owners explicitly stated any interest in developing these properties for a different use? Would these be used for mixed use of housing and commercial (reducing residential capacity)? Has there been an initial feasibility study and environmental review? What is the timing of these initial studies and inquiries? Would these complexities allow for these sites to be available in the planning period? How will affordable housing be incentivized or required in these sites? These sites require greater analysis on the feasibility of redeveloping existing highly performing and performing commercial shopping centers. Vacant Sites: The city selected Site#1 and #2 in the TLSP as the sites that will accommodate the most lower income housing units for the upcoming 6th Cycle. These city owned sites are being reused from the 5th Cycle. The city has failed to provide evidence of the actions they are taking to increase the probability these sites will be developed. We recommend the City implement an inclusionary policy in the TLSP that requires that at least 20% of units in all residential projects be set aside for extremely low,very-low, low-income housing on these city owned sites. No Net Loss: The city will also have to consider No Net Loss when it identifies opportunity sites. It is crucial that affordable housing moves along with market-rate housing given the limited sites that are available. Considering the state's, No Net Loss requirements, if the sites identified for affordable housing are developed for market-rate housing,the city will have to rezone new sites for the appropriate density.7 Affirmatively Furthering Fair Housing: 7 Government Code §65863 7of10 Kennedy Commission Comments Tustin Draft Housing Element October 5, 2021 The sites identified for lower income housing are highly concentrated in TLSP, RHASP and DCCSP zoning which are in areas that are considered low resource areas meaning that they lack amenities and investment. The city does not provide a reason for why sites cannot be relocated to higher affluence areas of the city beyond the fact that 65% of survey respondents identified it as a good location for housing. As a reminder,there were only 192 survey respondents and, thus, not sufficient justification for continuing patterns of segregation. The City also does not provide anti- displacement policies that will ensure low-income residents in low resource areas are not displaced due to the increase in market-rate development in these areas which is particularly important given that the City seeks to accommodate the majority of its RHNA allocation at all income levels in low resource areas. Credit Towards 6th Cycle RHNA The city also claims certain credits towards their 6th Cycle RHNA that the city claims decrease the number of sites the city must identify to meet their RHNA. In Table B-2 of the Housing Element draft, the city counts 132 units of transitional housing towards their extremely low and very low- income RHNA requirement. Transitional housing is temporary and not permanent and, thus, it will not provide long-term stable housing options extremely low and very low-income residents need. It is important that the city address the concerns we raised with the 6th Cycle Housing Element site inventory and further evaluate constraints to and the likelihood of the development of affordable housing on these sites. Moreover,the City needs to identify affordable housing policies and programs that will equitably facilitate and incorporate affordable housing at the extremely low, very low and low-income categories on these sites. ADUs The Commission questions the affordability of the 35 ADU units the city anticipates for the 6th Cycle. The city is assuming that 22 ADU units will be at the very low- and low-income level. However, the City does not provide strong enough policies that will ensure these ADU units will be affordable at the lower income levels. The city needs to propose a better plan to ensure the affordability of ADUs. Affirmatively Furthering Fair Housing (AFFH) The Housing Element has some basic information on demographics and overall scores for access to opportunity. However, the element generally does not address AFFH. The Housing Element needs to include outreach, an assessment of fair housing, identification, and prioritization of contributing factors to fair housing issues and goals and actions sufficient to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity. The City has failed to provide a thorough analysis of risk of displacement, gentrification, and exclusivity in the City or policies that address these issues. The City has also not provided adequate recommendations on how the City will address contributing factors to fair housing issues in the City. Based on the City's AFFH analysis, there are clear segregation patterns in the city. Most of the low resource areas, lower median income areas, and areas with higher levels of poverty coincide with areas that are primarily inhabited by minority groups, specifically Hispanics, Blacks, and Asian communities. These areas are to the South and Southwest of the City, closer to the border with the City of Santa Ana. In contrast,the highest resource areas and the higher median income areas 8of10 Kennedy Commission Comments Tustin Draft Housing Element October 5, 2021 coincide with areas that are primarily inhabited by White residents. Furthermore,the AFFH analysis states that the groups facing higher numbers of housing issues are Hispanics and Blacks and that census tracts that have higher levels of overcrowding are primarily inhabited by Hispanics and Blacks. When considering overcrowding levels, it is important to also look at the availability of housing that can accommodate large families. Tustin is lacking housing options for large families, of whom 75.23% stated they face housing problems. Not only is this the existing income,resource, and ethnic and racial distribution of the city, but this pattern of segregation will also continue in the 6th Cycle given that all the lower income housing sites identified for the 6th Cycle are in areas the AFFH analysis identified as low resource and as having lower median incomes in the south and southeast of the city. No lower income housing sites were identified in the northeast which is a primarily high resource area with higher median incomes. The zoning in this area primarily allows single family homes and lower density residential projects and this will continue to be the case in the 6th Cycle. The following are AFFH requirements the city has failed to properly address: • An assessment of Fair Housing in Tustin including a summary of issues and analysis of patterns, and trends • The preparation, adoption, and implementation of a housing element requires a diligent effort to include all economic segments of the community. • Identification and prioritization of fair housing contributing factors • Investment in low resource areas that will improve quality of living in those areas • Programs with a schedule of actions with timelines and specific commitment to have a "beneficial impact" within the planning period to achieve the goals and objectives of addressing contributing factors to Fair housing issues.8 We ask that the city prioritize the housing needs of low,very low and extremely low-income residents and minorities,who encounter a disproportionate level of difficulties in finding decent, affordable housing. Recommendations As the City moves forward with the Housing Element update,the Commission urges the city to support the development of affordable homes. The City needs to ensure opportunity sites are not simply up zoned or rezoned without including affordable housing policies that will capture the financial and land use incentives being given to property owners and market rate developers. This approach did not create affordable housing in the 5th Cycle and nor will it have a different outcome in the 6th Cycle. The Commission is providing the city the following recommendations: I. Adopt an Inclusionary Housing Ordinance that sets a 15%requirement of housing production at extremely low and very low-income categories on all residential projects. The city currently has the 2018 Voluntary Workforce Housing Ordinance, but it does not have strong enough affordability requirements. It also only applies to the DCCSP and the RHASP and not the TLSP which is where the city identified the majority of lower income housing sites. 2. Identify City-owned sites and prioritize these sites for the development of housing exclusively at the extremely low and very low-income level. This is particularly important in the TLSP 8 Gov.Code,§ 65583,subd.(c)(10)(A) 9of10 Kennedy Commission Comments Tustin Draft Housing Element October 5, 2021 given that the majority of lower income housing sites were identified in this area. Arguably, this is the site over which the city has more regulatory control given that it is owned by the city. Thus, at the minimum, the TLSP should have an inclusionary policy that sets a 20% requirement of housing production at extremely low and very low-income categories on all residential projects. 3. The city needs to prioritize and expand affordable housing in opportunity sites identified in the site inventory,where density and incentives will only promote market rate housing. 4. Prioritize affordable housing funding and programs to increase affordable housing options for families of lower incomes, especially at extremely low and very low-income. 5. If the sites at the Tustin Market Place and Enderle Center are demonstrated to be viable sites, what policies or programs will be integrated into the planning opportunity areas to ensure that affordable housing for low,very low and extremely low-income households is incorporated into housing development. We recommend that an affordable housing overlay be created on these sites to ensure that a minimum of 15% of the housing development being incentivized be affordable to low,very low and extremely low households. 6. Ensure that development sites being identified and discussed in the Housing Element draft are realistic and available during the planning period. 7. The city should provide an adequate analysis and recommendations on how the city will address AFFH. For example, how will the city ensure that affordable housing is developed in high opportunity areas of the city? What housing policy will be implemented to ensure that affordable housing is built along with market rate housing in all identified potential sites and areas of the city? In addition, the City should include anti-displacement policies that protect low-income residents from rising rents, commit to reinvesting in low resource areas to improve the quality of living of residents in those areas, and identify lower income housing sites in higher affluence areas. The Commission looks forward to partnering with the City of Tustin to create opportunities to increase affordable homes for lower income households in the city. If you have any questions, please feel free to contact me at(949)250-0909 or cesarc@kennedycommission.org. Sincerely, Cesar Covarrubias Executive Director cc Ms.Erica H.Demkowicz,ACIP,Senior Planner City of Tustin Mr.Colin Cross,Land Use and Planning Analyst CA Housing and Community Development Mr.Paul McDougal,Manager,Housing Policy,CA Housing and Community Development 10 of 10 ,w-Kennedy • September 14, 2021 www.kennedycommission.org 17701 Cowan Ave.,suite 200 Irvine,CA 92614 949 250 0909 Chair Amy Mason and Commissioners City of Tustin Planning Commission 300 Centennial Way Tustin, CA 92780 RE: Item 92 City of Tustin—General Plan Amendment GPA 2021-002 (Housing Element Update)—Negative Declaration Chair Mason and Commissioners, The Kennedy Commission (the Commission), a broad-based coalition of residents and community organizations, advocates for the production of homes affordable for families earning less than $27,000 annually in Orange County. Formed in 2001,the Commission has successfully partnered and worked with Orange County jurisdictions to create effective housing and land-use policies that have led to the new construction of homes affordable to lower-income working families and increasing investment in our communities. The Kennedy Commission has provided formal comments to the proposed Tustin's General Plan Housing Element Update ("the Update") and its accompanying Environmental Negative Declaration ("the ND") and they are part of the record. A more detailed letter will be will be submitted with more detailed analysis to include recent changes to second amended draft. These are preliminary comments. The Update will guide development of Tustin for many years, and the Housing Element and California Environmental Quality Act("CEQA"), Public Resources Code § 21000 et seq., requires that the city thoroughly assess the Update and its environmental impacts. In developing its Housing Element Sites Inventory the city must demonstrate in its Housing Element the ability to meet the assigned housing needs, through the provision of sites suitable for residential development. To meet the assigned housing needs, the Housing Element identifies sites (Table 2)that may be suitable for residential development in the following areas: - Ten (10) Downtown Commercial Core Specific Plan (DCCSP) mixed-use sites; -Four(4)Red Hill Avenue Specific Plan (RHASP)mixed-use sites; -Four (4)Tustin Legacy Specific Plan (TLSP)mixed-use urban residential sites; -The Market Place; and -The Ederle Center In order to accommodate the additional units to meet RHNA,the City proposes zoning amendments and the creation of overlay zones for The Market Place and Ederle Center will need to be accomplished within the first three (3) years following adoption of the Housing Element, as required by State law. 1 However,the Update continues to be deficient in the analysis of the sites allocated to lower income, especially in regard to the non-vacant sites at Market Place and Elder Center sites. The proposal continues to be ambiguous, and it does not fully explain how these thriving community retail anchors will be incentivized to transition to housing and ensure that affordable housing opportunities will be created to meet lower income targets. In addition,the city does not explain sites viability or how the inconsistencies caused by proposed overlays or zoning changes will be analyzed or mitigated. The proposed update is creating inconsistencies and uncertainties with contrary requirements in Land Use,Zoning Code, Housing Element and affordable housing policies. The General Plan serves as a"constitution" for the regulation of future development in the City. The City's land use regulations must be consistent with the General Plan. We request that the City provide specific site by site identification, analysis, studies and data to support that these sites are feasible to meet the housing needs of lower income families. The identified lower income sites need to incorporate affordable housing policies that will help create affordable housing and not just incentivize only market rate housing. We urge the City to (1)provide for more feasibility analysis and information on sites identified for meeting the lower income affordable housing RHNA. (2)Ensure that identified lower income also include an affordable housing policy that results in the creation of affordable housing on these sites. (3)Analyze the potential planning and environmental impacts and environmental justice on new areas proposed for housing development, especially those identified for lower income RHNA. We respectfully request that the City revise the Update to address these issues. Cesar Covarrubias Executive Director 2