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Ordinance 2019-01INTERIM URGENCY ORDINANCE NO. 2019-01 AN INTERIM U R G E N C Y ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY ADOPTED AS AN URGENCY MEASURE PROHIBITING THE APPROVAL OF ANY MULTI -FAMILY RESIDENTIAL DEVELOPMENT PROJECT ENTITLEMENTS IN THE CITY OF GILROY FOR A PERIOD OF FORTY FIVE (45) DAYS WHEREAS, the City of Gilroy ("City") is in the fourth year of the 2015 — 2022 Regional Housing Needs Allocation ("RHNA") cycle, as established by the California Government Code; and WHEREAS, since 2015, the City has permitted 480 low-income units, which represents 300% of the RHNA allocation for the 2015 — 2022 RHNA cycle); and WHEREAS, there are an additional 158 units of affordable housing in process; and WHEREAS, the City has remaining deficits of 156 units in the Very Low-income and 210 units in the Moderate -Income RHNA categories; and WHEREAS, as part of the RHNA process, California Government Code Section 65584.03 allows local jurisdictions within a county to form a sub -region to conduct an allocation process that parallels, but is separate from, the regional process conducted by the Association of Bay Area Governments ("ABAG"); and WHEREAS, on October 11, 2018, the Board of Directors of the Cities Association of Santa Clara County voted to form the Santa Clara County RHNA Sub -region for preparation of the 2023 - 2031 RHNA cycle; and WHEREAS, the tentative schedule for the development of the 2023 — 2031 RHNA cycle established by the ABAG states that sub -regions are to be formed by September, 2020, and that ABAG and sub -regions will work throughout 2021 to establish sub -region draft RHNA allocations; and WHEREAS, the Gilroy 2040 General Plan process was suspended in April, 2018, at which time the General Plan Advisory Committee ("GPAC") had identified three land use alternatives to be analyzed and distilled into a preferred land use alternative; and WHEREAS, the three land use alternatives identify varied amounts and locations of future housing and employment lands for inclusion in the Gilroy 2040 General Plan; and WHEREAS, the northern area of Gilroy and the Downtown Specific Plan area are being analyzed in these alternatives to determine the appropriate amount of land to be planned for varied types and densities of housing and employment land; and ORDINANCE NO. 2019-01 WHEREAS, the Gilroy 2040 General Plan process is anticipated to resume in early 2019, and be completed in late 2020; and WHEREAS, the Draft report "Gilroy Place -Based Economic Development Strategy" prepared by Economic and Planning Systems ("EPS") recommends consideration of future housing in conjunction with employment development, as a means of strengthening potential future economic development; and WHEREAS, the EPS report includes recommendations to consider housing as part of mixed use developments in areas not currently planned for housing, including the east side of Highway 101; and WHEREAS, in November, 2016, Santa Clara County voters approved a $950 million Affordable Housing Bond to devote $700 million to development of 4,200 units of Extremely Low -Income and $100 million for development of 600 units of Very Low -Income housing, throughout Santa Clara County; and WHEREAS, the Affordable Housing Bond program is intended to allocate funding for new housing development in cities in a pattern that approximates each jurisdictions' RHNA allocation while taking into account public transportation hubs and corridors; and WHEREAS, to date $111,030,000 have been allocated from the Affordable Housing Bond to fund the development of 817 new apartments, of which 489 units are Permanent Supportive Housing, comprised of 10 projects, including one project each in Gilroy, Morgan Hill, Cupertino, Milpitas and Santa Clara, and five projects in San Jose; and WHEREAS, the 75-unit Gilroy Gateway project includes 37 units of Permanent Supportive Housing, provided by a $7,500,000 allocation from the County Affordable Housing Bond; and WHEREAS, according to the Five -Year American Community Survey estimates from 2012 — 2016, the City of Gilroy contained 1.28% of the total housing units in Santa Clara County; and WHEREAS, the 37 Permanent Supportive Housing units in the Gilroy Gateway project represent 7.5% of the 489 Permanent Supportive units funded to -date by the County Affordable Housing Bond program; and WHEREAS, the CASA Compact, described as a 15-year emergency policy package to confront the region's housing crisis, was recently completed and approved by a 21-member steering committee comprised of representatives of major employers, for -profit and non-profit housing developers, labor and environmental leaders, public policy and affordable housing ORDINANCE NO. 2019-01 3 advocates, transportation experts and elected officials convened by the Metropolitan Transportation Commission (MTC) and ABAG; and WHEREAS, the CASA Compact includes ten separate elements and five calls to action on various topics including removal of regulatory barriers to additional dwelling units, minimum zoning near public transit, and reforms to the housing approval process; and WHEREAS, Government Code section 65589.5, known as the Housing Accountability Act, requires that jurisdictions that have general planned and zoned property for housing must allow development of a housing project that meets a city's objective requirements of the general plan and applicable zoning criteria; and WHEREAS, the Housing Accountability Act states that a housing project that meets the objective requirements of a city's general plan and applicable zoning criteria can only be denied or approved at a lower density if the city makes very specific findings based on public health and safety criteria; and WHEREAS, Government Code section 65858(a) provides that a city may, without following the procedures otherwise required prior to the adoption of a zoning ordinance, "adopt as an urgency measure an interim ordinance prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time"; and WHEREAS, an interim ordinance prohibiting for a reasonable time the approval of discretionary applications and building permits for multi -family residential development entitlements Citywide is necessary to provide additional time for the City to evaluate the multiple and varied circumstances currently in progress that may affect the location, type, density and timing of future multi -family housing, including the city's remaining RHNA allocation, the formation of the Santa Clara County RHNA Sub -region, the on -going Gilroy 2040 General Plan process, the recommendations of the Gilroy Place -Based Economic Development Strategy Report, the need for more specific conditions of approval, which will define the housing type, density and affordability of new multi -family residential developments, the implementation of the Santa Clara County Affordable Housing Bond Program, the recommendations of the CASA Compact, and the effect of State Legislation, including the Housing Accountability Act as described above, and to prohibit such uses that might be in conflict with the above activities; and WHEREAS, the continued approval of applications for multi -family residential development entitlements without the benefit of information developed from the City's evaluation of the circumstances described above, potentially affecting the location, type, density and timing of future multi -family housing, may generate impacts to the ORDINANCE NO. 2019-01 4 welfare of the citizens of the City. Such impacts may include, but not be limited to the following: • Inefficient use of remaining developable land within the Urban Service Area and Urban Growth Boundary, causing limitations on future development opportunities for new housing consistent with the General Plan, • Incomplete planning for provision of infrastructure and municipal services necessary for such new multi -family development, causing inadequate and/or inconsistent provision of services to existing and future Gilroy residents. • Lack of implementation of General Plan Housing Element goals and policies requiring the provision of a variety of housing types and a range of housing densities throughout the City, and to avoid the overconcentration of specific housing types in any one area. WHEREAS, on January 7, 2019, in accordance with State law, the City Council held a public meeting and took testimony regarding this interim urgency ordinance ("Interim Urgency Ordinance"); and WHEREAS, the City Council finds that this Interim Urgency Ordinance is not subject to the California Environmental Quality Act ("CEQA," Public Resources Code sections 21000 et seq.), because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, and it does not have the potential to result in a physical change to the environment, directly or indirectly (Title 14, Chapter 3 of the California Code of Regulations "CEQA Guidelines," sections 15060(c)(2) and (3)). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY HEREBY FINDS AND ORDAINS AS FOLLOWS: SECTION I In accordance with State law, the City Council hereby finds that: 1. For the purposes of this Interim Urgency Ordinance, multi -family housing includes all multi -family residential development allowed in the Gilroy Zoning Ordinance Article VII R3 Medium Density Residential District, Article VIII R4 High Density Residential District, and Article XIV Downtown Specific Plan Districts. 2. The approval of any entitlements for multi -family residential development in the City, including but not limited to, tentative maps, zoning amendments, use permits, variances, building permits, or any other entitlements may be in conflict with the City's planned evaluation of the following topics currently in progress that may affect the ORDINANCE NO. 2019-01 5 location, type, density and timing of future multi -family residential development: the City's remaining RHNA allocation, the formation of the Santa Clara County RHNA Sub -region, the on -going Gilroy 2040 General Plan process, the recommendations of the Gilroy Place -Based Economic Development Strategy Report, the need for more specific conditions of approval, which will define the housing type, density and affordability of new multi -family residential developments, the implementation of the Santa Clara County Affordable Housing Bond Program, the recommendations of the CASA Compact, and the effect of State Legislation, including the Housing Accountability Act. 3. The continued approval of applications for multi -family residential development entitlements without the benefit of information developed from the City's evaluation of the circumstances described above, potentially affecting the location, type, density and timing of future multi -family housing, may generate impacts to the welfare of the citizens of the City. Such impacts may include, but not be limited to the following: • Inefficient use of remaining developable land within the Urban Service Area and Urban Growth Boundary, causing limitations on future development opportunities for new housing consistent with the General Plan • Incomplete planning for provision of infrastructure and municipal services necessary for such new multi -family development, causing inadequate and/or inconsistent provision of services to existing and future Gilroy residents. • Lack of implementation of General Plan Housing Element goals and policies requiring the provision of a variety of housing types and a range of housing densities throughout the City, and to avoid the overconcentration of specific housing types in any one area. 4. The public health, safety or welfare requires the immediate enactment of this Interim Urgency Ordinance because it is necessary to provide additional time for the City to conduct an analysis to determine the most efficient actions to take in the future review of pending and new development applications for new multi -family residential development in the City. This analysis will include the following tasks intended to identify the factors affecting the location, type, density and timing of future multi -family housing: A. Preparation of an inventory of existing properties zoned R-3, R-4, and Downtown Specific Plan including the development potential of all such properties and all available information regarding current or future development proposals for them. ORDINANCE NO. 2019-01 B. Analysis of the content and schedule of the formation of the proposed Santa Clara County RHNA Sub -region and its effect on the development of future multi -family housing. C. Analysis of the recommendations of the Gilroy Place -Based Economic Development Strategy Report regarding the future location of new residential development. D. The need for more specific conditions of approval, which will define the housing type, density and affordability of new multi -family residential developments. E. Analysis of the implementation of the Santa Clara County Affordable Housing Bond Program on the location, type and number of future affordable housing projects in the City. F. Analysis of the recommendations of the CASA Compact. G. Analysis of the effect of State Legislation, including the Housing Accountability Act, on the City's ability to control the amount of new multi -family housing in the City. SECTION II PROHIBITION ON APPROVALS OF MULTI -FAMILY RESIDENTIAL DEVELOPMENT PROJECTS CITYWIDE. In accordance with the authority granted the City under Article XI, Section 7 of the California Constitution and California Government Code section 65858, from and after the effective date of this Interim Urgency Ordinance, no residential development entitlements, including but not limited to, tentative maps, zoning amendments, use permits, building permits, or any other entitlements, shall be approved or issued for the construction of multi -family residential development projects in the Gilroy Zoning Ordinance Article VII R3 Medium Density Residential District, Article VIII R4 High Density Residential District, and Article XIV Downtown Specific Plan Districts. Notwithstanding the foregoing, this Interim Urgency Ordinance does not apply to projects that are "deemed complete" or have already made substantial expenditures in reliance on a pending application or valid building permit as of January 7, 2019. SECTION III If any section, subsection, sentence, clause or phrase of this Interim Urgency Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Gilroy hereby declares that it would have passed and adopted this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases may be declared invalid or unconstitutional. ORDINANCE NO. 2019-01 7 SECTION IV This Interim Urgency Ordinance is adopted pursuant to Government Code Section 65858. The City Clerk shall certify to the adoption of this Interim Urgency Ordinance and cause the same to be published in the manner prescribed by law, and it shall become effective immediately upon its adoption and remain in effect for a period of forty-five (45) calendar days, or until February 21, 2019. If this Interim Urgency Ordinance is not extended in accordance with Government Code section 65858, it shall automatically become null and void without any further action of the City Council. PASSED AND ADOPTED by the City Council on this 7d' day of January, 2019 by the following vote: AYES: COUNCILMEMBERS: BLANKLEY, BRACCO, LEROE-MUNOZ, MARQUES, TOVAR, TUCKER and VELASCO NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ATTEST: r 1 Shawna Freels, City Clerk U Rol4Ad Velasco, Mayor ORDINANCE NO. 2019-01 I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2019-01 is an original ordinance, or true and correct copy of a City ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 7th day of January, 2019, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 8th day of January, 2019. 2%C Shawna Freels, MMC .. City Clerk of the City of Gilroy (Seal)