Land Use and Housing Committee Meeting: Homes for All of Us Package - January 13, 2022

The Land Use and Housing Committee of the San Diego City Council met virtually on Thursday, January 13, 2022, at 9:00 a.m. (PT) via Zoom webinar due to Executive Order N08-21, which suspends certain Brown Act requirements during the COVID-19 pandemic. The meeting was televised and live-streamed on the city's website. Committee members present: Chair Vivian Moreno, Vice Chair Raul Campillo, Councilmember Jennifer Campbell (listed as Kate?), and Councilmember Joe LaCava (the transcript references Vice Chair Lakava and Councilmember Kate, likely Councilmember Jennifer Campbell, and Councilmember Whitburn). The committee unanimously approved the consent calendar and, after extensive public comment and deliberation, unanimously approved the major discussion item: the "Homes for All of Us" Housing Action Package amendments to the Municipal Code and Local Coastal Program amendments.

Consent Calendar

• The committee unanimously approved the actions from the December 9, 2021 committee meeting. The motion was made by Councilmember Whitburn and seconded. Vice Chair LaCava, Councilmember Whitburn, Councilmember Kate, and Chair Moreno all voted yes.

Public Comments & Testimony (Non-Agenda)

• Eight public speakers addressed non-agenda items, primarily focused on potential changes to the city's marijuana ordinance (removing sensitive use restrictions), concerns about homeless shelters near schools, and the need for data-driven homelessness spending. Speakers included Barbara Gordon, Becky Rapp, Laura Saldania, Terri Ann Skelly, Daniel Schmikowski, Kelly McCormick, Matthew Kearney, and others. Several urged the committee to reject proposed amendments to marijuana regulations, citing public health and youth safety concerns. Others encouraged the committee to measure outcomes of homelessness programs and address shelter conditions.

Discussion Item: Homes for All of Us Housing Action Package

• Staff from the Planning Department (Seth Lichney, Renee Mezzo, Kelly Stonko) presented the three-part housing action package: (1) local housing programs and incentives, (2) Senate Bill 9 (SB9) implementation, and (3) accessory dwelling unit (ADU) regulation amendments.
• The package includes the "Affordable Housing in All Communities" program, which would allow 100% affordable multifamily housing in zones that currently disallow it, with location criteria such as transit priority areas (TPAs) and high-resource communities. It also includes amendments to density bonus and inclusionary housing regulations, an employee housing incentive program, housing at city facilities, housing accessibility, and housing for families (incentives for 3+ bedroom units).
• SB9 implementation local provisions include zero-foot setbacks for single-story units, four-foot setbacks for two-story structures adjacent to residential uses, parking requirements based on TPA location, tree canopy requirements, and development impact fees (DIF) for third and fourth units.
• ADU amendments include increasing setbacks for multi-story ADUs, new landscape/tree requirements, and DIF charges for ADUs beyond the first two (with a state-law exemption for units under 750 square feet).
• The Community Planners Committee on December 14, 2021, recommended revisions to Sections 2 and 3 consistent with a letter from Neighbors for a Better San Diego (NBSD).

Public Comment on the Item

• The committee heard a 10-minute organized presentation from Jeff Hutter, Chair of Neighbors for a Better San Diego. He urged the committee to align SB9 and ADU codes more closely with state law, specifically regarding transit proximity (using walking distance not "as-the-crow-flies" TPAs), total building mass, parking, fire hazard exclusions, and the elimination of the bonus ADU program. He proposed a "size bonus" for affordable ADUs and cited over 5,800 petition signatures.
• 54 individual speakers signed up to speak. Speakers expressed a wide range of positions:
  • Supporters of the package included the San Diego Building Industry Association (Laurie Feyler), City Heights CDC (Eric), Climate Action Campaign (Madison Coleman), Circulate San Diego (Jesse O'Sullivan), San Diego Regional Chamber of Commerce (Angeli Kalinog), YIMBY Democrats (Marcia Tucker Borquez), and several residents who emphasized the need for more housing supply and ADUs.
  • Opponents or those requesting amendments included numerous residents and representatives of community groups (e.g., Talmadge Community Planning Group, Uptown Planners, Community Forest Advisory Council). Common concerns were: the TPA definition unfairly expanding density bonuses, lack of true affordability (110% AMI considered too high), insufficient parking requirements, fire hazard risks, loss of mature trees, infrastructure burdens, and investor-driven development harming single-family neighborhoods.
  • Several speakers shared personal stories of being negatively impacted by existing ADU developments, including being towered over by new construction and losing privacy.
  • The Independent Budget Analyst's office (Charles Matica) noted that the employee housing incentive program is opt-in and does not allow building units in lieu of fees, and that some amendments in the package mirror items continued from an earlier council meeting.

Committee Deliberation and Amendments

• Councilmember Kate (Campbell) asked about maps of affordable housing opportunities and whether the package impacts ongoing community plan updates. She moved staff's recommendation.
• Vice Chair LaCava proposed an amendment to require a four-foot setback for all ADUs adjoining residential uses, but staff noted this could make ADUs infeasible on smaller urban lots; Councilmember Kate (Campbell) declined to accept the amendment.
• Councilmember Whitburn asked staff to analyze lowering the affordability threshold (from 110% AMI) for deeded affordable ADUs and to consider deed restriction lengths. Staff agreed to include this in an economic analysis to be completed by the end of 2022.
• Chair Moreno expressed strong support for the package, particularly the housing at city facilities and housing for families components.
• The committee ultimately voted unanimously (4-0) to approve the staff recommendation, including the amendments as presented.

Key Outcomes

• The committee unanimously approved the "Homes for All of Us" Housing Action Package amendments to the Municipal Code and Local Coastal Program, forwarding them to the full City Council. The motion was made by Councilmember Kate (Campbell) and seconded by Vice Chair LaCava. All committee members voted yes (4-0).
• Staff committed to: (1) conducting an economic analysis of the ADU density bonus program, including the impact of lower income thresholds and deed restriction lengths, with findings expected by the end of 2022; (2) comprehensively reviewing the TPA definition across city programs, in coordination with the Sustainability and Mobility Department; and (3) clarifying language regarding floor area ratio (FAR) for residential uses in non-residential parcels.
• The committee adjourned to its next scheduled meeting on Thursday, February 10, 2022, at 1:00 p.m.