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CITY-INITIATED ORDINANCE AMENDING TITLE 16 OF THE STOCKTON MUNICIPAL CODE, DIVISION 2, CHAPTER 16.20 TO SUPPORT IMPLEMENTATION OF THE 2023-2031 STOCKTON HOUSING ELEMENT IN COMPLIANCE WITH STATE LAW.
recommended action
RECOMMENDATION
Staff recommends that the Planning Commission adopt a resolution recommending that the City Council:
1. Find no further environmental review is required for proposed code amendments pursuant to the California Environmental Quality Act (CEQA) section 15183 (consistency with General Plan and Community Plan); and
2. Adopt an Ordinance Amending Title 16 (Development Code) of the Stockton Municipal Code (SMC), Chapter 16.20, Section 16.20.020 (Allowable Land Uses and Permit Requirements)
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Summary
On July 09, 2024, the City Council adopted the City of Stockton 2023-2031 Housing Element (Housing Element) consistent with state regulation and subsequently received certification from the State Department of Housing and Community Development (HCD). HCD considers this 8-year planning period to be the 6th planning cycle statewide.
The Housing Element contains Goals, Policies and Implementation Programs for meeting and exceeding the Reginal Housing Needs Allocation (RHNA) which was determined to be 12,673 new housing units over the course of the 8-year planning period. There are a total of 30 Implementation Programs that the City must act upon in attempt to meet and exceed the RHNA.
Among the 30 Implementation Programs, is Program 3 that commits the City to identifying properties that were identified as RHNA opportunity sites in the prior 4th and 5th planning cycles and still remain vacant. In order to include these same vacant sites in the 6th planning cycle, HCD is requiring the City to amend its Title 16 Development Code Ordinance to allow residential projects that have at least 20 percent affordable units (extremely low, very low and low), to occur on the recurring vacant sites without discretionary review or also considered "by right".
Stockton's certified Housing Element identified this action as needing to be completed by December 31, 2026. However, HCD is insisting this action be completed immediately to comply with State Government Code Section 65583.2, subdivisions (c) and (i).
To avoid risk of HCD revoking the finding that the City's Housing Element is in substantial compliance with Housing Element Law, staff is proposing an amendment to the Title 16 Development Code Ordinance.
Staff recommends the Planning Commission adopt a Resolution recommending that City Council adopt an Ordinance amending Title 16 to comply with State Housing Law.
DISCUSSION
Background
California cities and counties update their Housing Element every eight years, commonly referred to as a "cycle", to comply with State regulations, which are overseen by HCD. This is the only element of the General Plan that is subject to State review and certification and is often utilized as an eligibility requirement for State housing and economic development grant opportunities. The City last updated the 2015-2023 Housing Element in 2014 (5th Housing Cycle).
In 2022, the City hired Placeworks, a professional consultant with expertise in Housing Element updates and a relationship with HCD staff representatives to successfully obtain certification approval of 2023-2031 Housing Element (6th Cycle). This update process involved significant outreach efforts and numerous meetings on the housing issues facing Stockton, including property owner meetings to discuss opportunity sites for Land Inventory needed to comply with RHNA. The prominent feedback received from outreach meetings and public comment includes:
* Make zoning changes that remove barriers to developing housing
* Provide adequate housing sites for all income groups
* Provide equal access to supportive services (disability, special housing needs, minority
It is common practice that updates build off and refine program actions from the prior 2015-2023 Housing Element (5th cycle period) along with incorporating new program actions that have greater potential to be more effective.
On June 13, 2024, the Planning Commission approved a recommendation to the City Council for adoption of the 2023-2031 Housing Element Update. On July 9, 2024, the City Council adopted the 2023-2031 Housing Element. On September 9, 2024, HCD notified the City that its Housing Element was found to be in substantial compliance with State Law and deemed certified.
Present Situation
At the request of HCD and in accordance with State Government Code Section 65583.2, subdivisions (c) and (i), a city-initiated amendment to Title 16 (Development Code) Ordinance is proposed to streamline the review of development on vacant properties that were identified as RHNA opportunity sites in the prior two consecutive Housing Element cycles that have at least 20 percent affordable units (extremely low, very low and low). Consistent with the Government Code, the proposed ordinance ensures that review of such properties for owner-occupied or multifamily residential uses will be considered "by-right" or without a discretionary review and will not require a conditional use permit, planned unit development permit, or other discretionary local government review. However, any subdivision of the sites shall be subject to all laws, including local government ordinance implementing the Subdivision Map Act.
In accordance with SMC Section 16.116.020, the City Council is the review authority for code amendments, based on the recommendation of the Planning Commission.
A redline version of the proposed code amendment can be reviewed at Attachment A. The clean Ordinance version of the amendment is proposed as Exhibit 1 to the proposed Resolution.
STAFF ANALYSIS
The Planning Commission is asked to consider forwarding an approval recommendation to City Council for the proposed code amendment based on the following analysis:
Development Code Amendment
The proposed amendment to streamline the review of residential development projects that have at least 20 percent affordable units on vacant properties identified as RHNA opportunity sites is consistent with the General Plan Policies. General Plan and Housing Element Policies support development and redevelopment of vacant and underutilized sites for housing to accommodate the City's regional housing needs accommodation (RHNA). As shown in the Proposed Ordinance and Resolution, the Findings of Approval per SMC 16.116.050 can be met for the code amendment. The amendment will not result in a direct physical change to the environment or impact on public health and safety as the amendment is needed to comply with the Housing Element. Specifically, the following are supportive General Plan policies:
* POLICY LU-6.2 Prioritize development and redevelopment of vacant, underutilized, and blighted infill areas.
* Action LU-6.2 A Develop and implement an infill incentive program that encourages infill development through expedited permitting, changes in fee structures, prioritizing infrastructure improvements in infill areas, property owner and/or landlord incentives to maintain property and reduce blight, and/or other strategies. As part of this program, define and prioritize categories of infill types based on land use and residential density or nonresidential intensity
* Policy HE-1.1 Availability of Land: The City shall maintain sufficient designated and zoned vacant and underutilized sites for housing to achieve a mix of single-family and multifamily development that will accommodate anticipated population growth and the housing needs established in the City's regional housing needs allocation (RHNA) of 12,673 units (1,232 extremely low, 1,233 very low, 1,548 low, 2,572 moderate, 6,088 above moderate). In addition to the Housing Capacity sites needed toward RHNA, the Housing Action Plan (HAP) shall explore additional areas that could potentially support housing. This could include underutilized properties, underutilized buildings, and unincorporated areas. This surplus shall be used to maintain the City's Pro-Housing Designation that requires the City to maintain 30-percent surplus over the RHNA requirement. (Programs 1, 2 and 3)
Environmental Analysis
The proposed code amendment will not require additional environmental review per the CEQA Guidelines section 15183 as it is consistent with the General Plan and General Plan environmental impact report (EIR). The GPEIR was prepared and certified by the City Council as part of the Envision Stockton 2040 General Plan process (SCH# 2017052062). The proposed code amendment would be a minor change to Table 2-2 Allowable Land Uses and Permit Requirements to establish a streamlined review process for development of vacant RHNA opportunity sites that were included in prior Housing Element cycles. This amendment is consistent with General Plan policies to encourage affordable residential development on vacant opportunity sites. The amendment would not result in a physical change to the environment as future projects would be reviewed on a case-by-case basis for this consistency to General Plan, zoning, and developmental standards. No potential new impacts related to the Project have been identified that would necessitate further environmental review beyond the impacts and issues already disclosed and analyzed in the GPEIR. Therefore, no additional environmental review is required per CEQA Guidelines section 15183 (Consistency with General Plan or Community Plan).
Public Notice
Notice for the Planning Commission public hearing for this request was published in The Record on August 22, 2025. As of the publication of this report, no written comments have been received.
Attachment A - Proposed Development Code Ordinance Amendment in redline
This staff report was prepared by Michael McDowell, Assistant Director, (209) 937-8690; michael.mcdowell@stocktonca.gov.