San Diego Land Use and Housing Committee Meeting – November 17, 2022

The Land Use and Housing Committee of the San Diego City Council met on Thursday, November 17, 2022, at 9 a.m. with Chair Vivian Moreno presiding. Present were Vice Chair Lakava, Councilmember Whitburn, and Councilmember Kate. The committee approved routine actions, considered a middle-income first-time homebuyer pilot program, and unanimously recommended approval of the Mira Mesa Community Plan Update. Chair Moreno welcomed her newborn daughter Michelle to the meeting and thanked Vice Chair Lakava for chairing the prior two meetings.

Administrative Items

• The committee unanimously approved the committee actions of October 20, 2022.
• Non-agenda public comment was received; no action was taken.

Consent Calendar

• Item 1 (passed unanimously): Recommended adoption of municipal code amendments to Chapters 12 and 14 to adopt the state-mandated 2022 California Building Standards Code, effective statewide on January 1, 2023, with local amendments to maintain consistency with state regulations.

Public Comments & Testimony

Non-agenda speakers:

• Terry Anskelly congratulated election winners, welcomed Chair Moreno’s baby, and opposed placing marijuana storefronts in communities of color, asking whether neighborhoods and families are better when tobacco or marijuana products are sold there.
• Judy Strang, a parent advocate, expressed concern about a recent city council redistricting item regarding marijuana businesses and urged the committee to consult parent groups and public health organizations about impacts.
• Becky Rath, a parent and San Diego resident, said a marijuana applicant had manipulated the 1,000-foot sensitive-use buffer by constructing a wall blocking a walkway used by a church, its daycare, and youth programs, and urged that barriers be interpreted as freeways/overpasses rather than walls.
• Sanyata (phone ending 796A) welcomed the chair and baby, and suggested the community explore future uses for the old Oak Park Library.

No public speakers testified on the homebuyer pilot program (Item 2).

Item 3 public comments:

• Brett Fuerstein, owner of Mira Mesa shopping centers, apologized for late involvement and requested a community commercial zone instead of the proposed EMX zone to allow current operations and future redevelopment.
• Marcella Escobar Ack of Atlantis Group, representing several Mira Mesa shopping centers, asked the committee to direct staff to allow CC zones, stating there was no CEQA issue and that the requested 25% carve-out was a policy issue to be resolved with staff.
• Craig Benedetto of NAIOP San Diego expressed support for the plan update, thanked planning staff, and asked that existing land uses be protected and pipeline provisions be reviewed.
• John Horst requested a continuance, citing concerns about hazardous materials near prime industrial flex, lack of study of reversible lanes on Mira Mesa Boulevard, and a need for enforceable policies rather than guidelines.
• Jeffrey Stevens, Chair of the Mira Mesa Community Planning Group, said the plan has significant deficiencies in public facilities, falls short of Parks Master Plan standards, and includes unmitigated impacts; he presented 13 recommendations and asked for a public facilities financing plan.
• Rachel Graham, a resident, supported the plan, upzoning, protected bike lanes, and bus-only lanes.
• John Zybarth, with 28 years of zoning code experience, opposed rezoning auto-oriented centers and proposed retaining existing commercial zones with mixed-use height bonuses to avoid nonconformity and lost sales tax revenue.
• Angeli Kallanog of the San Diego Regional Chamber of Commerce supported the plan as important for economic well-being and addressing the housing crisis.

Discussion Items

Item 2: Middle-Income First-Time Homebuyer Pilot Program

• Emily Jacobs of the San Diego Housing Commission presented draft program parameters developed with Urban Institute at Chair Moreno’s request.
• As of August 2022, the median single-family home price in San Diego was $885,000, up 6% from 2021, and 30-year mortgage rates had risen from 3% to 7% in six months.
• The Housing Commission’s existing first-time homebuyer program has provided more than $190 million and assisted roughly 5,900 buyers since 1992, primarily those at or below 80% AMI ($104,100 for a family of four).
• The proposed pilot would serve households earning 80–150% AMI ($104,100–$160,350 for a family of four), provide a deferred second loan of up to 22% of purchase price at 3% simple interest, and a $10,000 closing cost grant.
• Amy Lee of the Independent Budget Analyst’s Office noted the pilot would require about $6 million to serve 30 families, while the existing program spent $4 million in FY22 for 41 lower-income households; flexible funding such as general funds would be needed.
• Councilmember Kate asked about Community Reinvestment Act funding, lender and realtor flexibility, and supplementing with other programs; staff said CRA funds are generally limited to low-income assistance, buyers may use their own lender from the approved list and any realtor, and other assistance may be combined subject to funding-source rules.
• Chair Moreno said she would update her FY24 budget priority memo to request funding and encouraged colleagues to do the same.
• Motion by Chair Moreno, seconded by Councilmember Kate, passed unanimously.

Item 3: Mira Mesa Community Plan Update

• Alex Frost of the Planning Department presented the proposed update, launched in fall 2018, with the draft plan and program EIR released in summer 2022.
• Outreach included 31 advisory committee meetings, nine events/four workshops, an online survey, stakeholder interviews, and more than 300 comments, with 250 items incorporated.
• The plan designates urban village and employment village uses along Mira Mesa Boulevard at 54–109 dwelling units per acre and Miramar Gateway at 29–73 units per acre, and proposes over 40 miles of cycle tracks/multi-use paths and 25 miles of bike boulevards.
• The plan projects a shift to 29% non-auto mode share from 10% in the base year, a 20% decline in resident VMT per capita, and a 15% decline in employee VMT per capita.
• The plan estimates an approximately 3,100 recreation value point deficit if full housing capacity is built, and staff noted the final program EIR was completed on November 17, 2022, with the City Council hearing scheduled for December 5, 2022.
• The City Attorney’s Office said proposed vested-rights language was already handled in pipeline provisions or settled law, the 25% carve-out was a policy issue requiring wording work, and staff would review proposed zoning changes for SB 330 compliance; staff later confirmed no downzones were associated with the applicant’s proposal.
• Councilmember Kate asked about park deficit mitigation, library planning, flex lane implementation, Carroll Canyon Road extension, and a development agreement’s DIF/park funds; staff said park opportunities would be pursued through redevelopment and CIP prioritization, and the library master plan is coordinated with the plan.
• Vice Chair Lakava noted this is the second plan update without a separate public facilities financing plan and discussed the shift to citywide fee systems and CIP prioritization.
• Councilmember Kate moved the staff recommendation with direction for staff to work with the Atlantis Group and the City Attorney on amendments; Vice Chair Lakava seconded. The motion passed unanimously.

Key Outcomes

• Unanimously approved the October 20, 2022 committee actions.
• Unanimously approved the consent agenda adopting the 2022 California Building Standards Code amendments.
• Unanimously approved staff recommendations for the middle-income first-time homebuyer pilot program, directing the Housing Commission to finalize the program design, identify flexible funding, and return to the Housing Commission board; Chair Moreno will request FY24 budget funding.
• Unanimously recommended approval of the Mira Mesa Community Plan Update, program EIR, mitigation monitoring and reporting program, rezonings, and amendments to the local coastal program, general plan, historical resources guidelines, and land development manual, with direction to staff to work with the Atlantis Group on zoning and policy language before the December 5, 2022 City Council hearing.
• The committee adjourned to its next meeting on Thursday, January 12, 2023, at 1 p.m.