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ADOPT BY MOTION THE 2023 GENERAL PLAN AND HOUSING ELEMENT ANNUAL PROGRESS REPORTS AND AUTHORIZE THE CITY MANAGER TO SUBMIT REPORTS TO THE STATE HOUSING DEPARTMENTS TO COMPLY WITH STATE LAW
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RECOMMENDATION
It is recommended that City Council adopt by motion the 2023 Annual Progress Reports (APRs) for the Envision Stockton 2040 General Plan and the 2015-2023 Housing Element and authorize the City Manager to submit reports to the State of California Department of Housing and Community Development (HCD) and the Office of Planning and Research (OPR) as required by State Law.
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Summary
California State Law (Government Code Sections 65400 and 65700) require cities that have an adopted General Plan and Housing Element to prepare an Annual Progress Report (APR) during that identifies the status of implementation activities for the prior calendar year. The APR must be presented to the City Council before submission to the State of California Department of Housing and Community Development (HCD) and Office of Planning and Research (OPR) by April 1st of each calendar year.
Following Council’s acceptance, the 2023 APR reports will be submitted to HCD and OPR by April 1, 2024, in compliance with State Law.
Background
On December 4, 2018, the City Council adopted the Envision Stockton 2040 General Plan (hereafter "General Plan"). The General Plan is the official long-range policy document for the City of Stockton and is the basis for local government decision-making to achieve the community's overall vision. A General Plan contains elements that address land use, circulation, housing, conservation, open space/parks and recreation, safety, noise, and environmental justice. Various City departments are responsible for implementing these actions throughout the 20-year timeframe established by the General Plan.
In April 2016, the City Council adopted the 2015-2023 Housing Element (hereafter "Housing Element”), which contains policies and programs that enable the City to anticipate and plan for the housing needs of all socioeconomic segments of the community. Although the Housing Element is considered an element of the General Plan, it is the only element that is reviewed and approved by HCD and OPR on an eight-year cycle and requires annual progress reporting. Tied to the process of updating the Housing Element is the Regional Housing Needs Allocation (“RHNA”). The RHNA is mandated by State Housing Law and quantifies the need for housing within the city during the specified planning cycle.
As a charter city, Stockton was exempt from submitting annual progress reports in the past. Effective January 1, 2018, State law obligated charter cities to begin reporting annually to be eligible for participation in housing funding programs.
Current Situation
The 2023 Annual Progress Reports highlight the status of ongoing and future policy implementation efforts for the General Plan and Housing Element. The 2023 annual review is the final for the 2015-2023 Housing Element eight-year cycle (also known as the 5th Housing Cycle).
• General Plan: The following is a brief overview of the annual progress report for the General Plan. These efforts are further detailed in Attachment A.
o Completed significant outreach for the Shape Stockton effort, which includes Development Code and Design Standards overhaul, updated Housing Element, a new Housing Action Plan, and three Neighborhood Area Plans. Outreach included property owner notifications, community stakeholder e-mail blasts, workshops, Go-to-them-Events, and stakeholder presentations. These efforts are all State reimbursable. Drafts have been made to the public for a variety of these efforts as City staff anticipates completion by summer 2024.
o Completion of a city-initiated General Plan map and rezone effort to correct land use inconsistencies and better allow property owners to maximize use of their properties.
o City completed one annexation, expanding the City Limit boundary by 203.5 acres.
o Staff completed the 2022 Annual Development Agreement (DA) review to assess the status of agreements for 8 major development projects in the city.
o Updated the Transportation Impact Analysis Guidelines - Ensures the elimination, minimization, or mitigation of transportation impacts brought by a project while meeting the City’s General Plan goals and state mandate SB 743 for CEQA-type projects.
o Completed Assembly Bill 562 (AB 562) 2022 Annual Subsidies Report
o Initiated new Public Facilities Fee (“Impact Fees”) Nexus Studies for Transportation, Utilities, City Buildings, Community Centers/Recreation, Parks, Libraries, Fire and Police.
o Initiated development of new ADA Transition Plan.
o Significant process and performance enhancements made to the development and permitting processes. Notable examples include:
§ 71 of 84 DevStat iLab (process improvement) action items completed as of 12/31/23.
§ Continued use of reporting/monitoring tools to track development review performance.
§ Of the eleven permit types available for online application, 86% of said types were submitted online.
§ Expanded the City’s automated residential solar permitting platform to include rooftop solar projects that have backup batteries, resulting in real-time online permit issuance for most residential solar project types.
§ Developed and implemented a streamlined online application and permit issuance process for residential production home permits, allowing subdivision developers to apply and pay for new home permits virtually.
§ Implemented the “Easy Scheduler” platform, simplifying the online building inspection scheduling process into four (4) simple steps while also providing a mobile-friendly version for scheduling via phone or tablet.
§ Completed iLab (process improvement) exercise to identify process improvements for the Planning Site Plan Review process.
o Completed cross-training of Community Development Technician staff and implemented new policies and procedures at the Permit Center counter for improved customer service, resulting in fewer “hand-offs” of customers between multiple staff members/departments.
o Streamlined process for Planning projects in Accela software to increase processing efficiency.
• 2015-2023 Housing Element: The 2023 APR is the sixth annual progress report for the Housing Element and the last one for the 5th housing cycle ending in 2023. Below summarizes major actions in 2023 related to new housing production or the implementation of housing policy through action. These efforts are further detailed in Attachment B.
o New Housing and Affordable Housing - The City issued building permits for 610 new housing units, including 69 low-income units. Of the permits issued, 51 were accessory dwelling units (ADUs).
o Earned a Prohousing designation from the State, making grant applications more competitive.
o Held a Press Conference announcing St. Mary’s Dining Room Pathways Project, committing $3.6 million in funding for more than 300 beds for unsheltered homeless in conjunction with San Joaquin County, Health Plan of San Joaquin, and Dignity Health.
o Completed the staff restructure of the Economic Development Department’s Housing and Homeless unit and hired two effective managers.
o Held ribbon cuttings and/or broke ground for Calaveras Quarters, Villa De Flore broke ground, and Sonora Square Affordable Housing projects.
o From mid-July to mid-August, the Economic Development Department Team responded to the Local Emergency related to the closing of Stockton Shelter for the Homeless and the imminent displacement of nearly 250 unhoused individuals within the City of Stockton.
o Stockton Economic Stimulus Plan (SESP) Fee Waiver Program
§ Single Family Residential - $8,718,438 in fees waived in 2023 ($57 million since program inception)
§ Multi-Family Residential - $0 in fees waived in 2023 ($7.7 million since program inception)
o Submitted the drafts of the Housing Element to the State for multiple reviews. Drafts of the Housing Element and Housing and Neighborhood Action Plans have been available to the public since November 2023. The City is planning for Council’s consideration for adoption of these plans by Spring of the 2024 calendar year.
o Completed and released for public use, comprehensive revisions to the City’s pre-approved Accessory Dwelling Unit (ADU) plan options. Revisions included updates for the latest building, fire, and energy efficiency codes.
From 2015 to 2023, the City has averaged approximately 568 new housing units per year, totaling 4,545 units for the eight-year timeframe. Based on this, the City did not achieve the prescribed 11,824 mixed-income RHNA allocation by about 7,889 housing units by the end of the 5th Housing Cycle at the end of the 2023 calendar year. While the City has made efforts to encourage housing production and streamline permitting processes, private investment, and current market conditions are the primary sources for new housing construction. The City does not have any obligation to construct housing units but must maintain the housing capacity outlined by the RHNA allocation.
The City continues to build upon the policies and actions established by the 2040 General Plan and 2015-2023 Housing Element to encourage increased housing production.
Environmental Analysis
The 2040 General Plan and 2015-2023 Housing Element implementation reports are not considered a discretionary “project” under the California Environmental Quality Act (CEQA) and are therefore exempt under Section 15061(b)(3) (“Common Sense Exemption”).
FINANCIAL SUMMARY
This report summarizes past and existing actions, and the requested action will have no direct fiscal impact.
Attachment A - 2040 General Plan 2023 Annual Progress Report (APR)
Attachment B - 2015-2023 Housing Element 2023 Annual Progress Report (APR)