by Kevin Cody
“Pardon my metaphor,” Hermosa Beach Planning Commissioner commented following a review of Hermosa’s Housing Element by Community Development director Alison Becker at the Tuesday, November 18 council meeting.
Housing Elements are the part of a city’s General Plan that identify city housing policies.
“But I feel like I’m driving 80 mph on the 110 freeway when I see the CHP pull over the driver next to me. Do I hit the brakes, and call attention to myself? Or do I pretend I’m doing nothing wrong and keep driving 80 mph?” Hoffman said.
The California Highway Patrol in Hoffman’s metaphor was the California Appeals Court — Second Appellate District.
The pulled-over driver in the metaphor was the City of Redondo Beach.
Last month, in Commune vs City of Redondo, the court ruled that Redondo’s use of a zoning “overlay” to identify affordable housing sites on commercial property was “unrealistic.” As a result, Redondo’s Housing Element was decertified.
The “overlay” allowed, but did not require, residential development, the court stated.
Cities whose Housing Elements are not approved, are subject to the State Builder’s Remedy Law. The law exempts residential developments from local zoning laws, including height and density limits.
The suit was brought by AES property owner Leo Pustilnikov, who wants to build 2,700 residential units on the AES site. Redondo opposes the development.
In his metaphor, Hoffman was alluding to concerns that Hermosa’s Housing Element could also be decertified, exposing Hermosa to Builder’s Remedy developments because, similar to Redondo, Hermosa used a zoning overlay to win State approval for its Housing Element.
Assistant City Attorney Sarah Locklin cautioned commissioners that if the city failed to identify a sufficient number of affordable development sites “to close the gap,” the State could require Hermosa to rezone parts of town for mixed residential/commercial development.
Becker picked up on Hoffman’s metaphor.
“Since people generally drive 75 mph on the 110, at 80 mph, you’re just a bit ahead of the pack,” she said.
The “pack” Becker referred to is other California cities that, like Hermosa and Redondo, used “overlays” to get approval of their Housing Elements.
“We’re one of hundreds of cities across the state that… selected a rezoning strategy using overlays,” she said.
“I’d say Hermosa is doing well in terms of Housing Element implementation. We have 13 [affordable housing] programs we’re working on, and all show progress,” she added.
Hoffman responded with another metaphor.
“I feel like the Raider coach who says we’ve done all the drills, but we’re still getting outscored.”
Hermosa’s Housing Element says the city must identify approximately 300 low income housing unit sites by 2029.
So far, only two low income housing unit applications have been submitted to the City and none have been built.
Hoffman observed Hermosa commercial property owners have shown “no interest” in building low income housing.
Becker acknowledged that fact with a metaphor of her own.
“If you really want to demonstrate the city’s commitment to low cost housing, the low hanging fruit is public sites,” she said.
“To get the ball rolling, issue a request for proposal RFP for affordable housing on city owned land.”
“If you have an appetite to do that,” Becker added.
None of the commissioners responded to her suggestion.
The zoning “overlay” that identifies potential affordable housing sites covers Hermosa’s commercial districts.
In January 2024, to motivate commercial property owners to build affordable housing, the council unanimously approved a Land Value Recapture (LVR) program.
The program allows residential development of commercially zoned property, but imposes fees ranging from $76/square foot to $104 per square foot on new residential units offered at market rate.
If the units are offered at “affordable” rates the fee is waived. “Affordable” sale and lease rates, as defined by the County of Los Angeles, are approximately half market rates. But the fee waiver comes with a 52-year deed restriction. If the property is sold prior to 52 years, any appreciation is split evenly between the property owner and the city.
Hoffman asked how many LVR projects have been built since the ordinance was passed 17 months ago.
Becker said none. Nor have any LVR applications been submitted.
In hopes of encouraging Land Value Recapture development in Hermosa’s commercial district, the Planning Commission voted unanimously to recommend to the city council that commercially zoned lots under 3,000 feet be exempt from LVR fees; to direct staff to develop strategies to encourage LVR developments; and to temporarily reduce LVR fees on four or more units to $40 per square feet. ER
Manhattan Beach and Redondo Beach are not the only cities with ‘non-vacant’ land (what the court decision used to descrbe occupied sites chosen for their housing plan). I urge everyone to read the Appelate Court decision. Caution – it obviously will be appealed but for the time being it is the law.
In my home town, Rancho Palos Verdes, we have 31 sites, 7 of which are vacant and 24 are occupied (non-vacant). Housing Plans must be complete by October 2029. And when you think of normal construction time, we are not even going to come close. 629 required units, 392 ‘low income’ and of those 50% ‘extremely low income.’ And, one of Redondo problems, ‘non-vacant’ sites required approval of the land owner (not occupant) to be included in the plan. I doubt state approving authories in HCD asked for those owner documents before approving plans. Just a guess. Someone might ask them.
So, RPV expended over $1 million and multiple consultants who gave it their all in 3 tries over years before getting plan approval.
And the decision said Redondo MUST REDO THEIR HOUSING PLAN. Not a nice ‘amend’ but flat redo. And land owners must agree that they will meet the planned Oct. 2029 deadline.
Ain’t going to happen. What I think could … is meeting these requirements will be pushed out 5 or 10 years. And put up your antenna for our Supreme Court’s decison on any appeal. Probably a year or two away. Closer to Oct. 2029. For most cities this could be a Planning Commission gauntlet! Not RPV, 2029 Housing]g Plan decisions were made by our CityCouncil, solo, and have been for years.