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Draft Housing Element December 14, 2022 <br />4 of 21 <br /> <br />requirements of the Housing Element is to analyze potential governmental constraints to <br />housing production and reduce them wherever possible. <br /> <br />HCD’s comments question the use of the PUD process generally as well as the means <br />by which development standards are created and how various development standards <br />imposed by the City may affect housing cost, supply approval and project certainty. <br /> <br />The City’s current PUD process, as defined in the PMC, is discretionary (i.e., the City <br />has significant latitude to approve or deny projects and to set site-specific development <br />standards, development densities, etc.). The process requires both Planning <br />Commission review and City Council approval. Through the PUD process, subject sites <br />modify their respective zoning to a special PUD zone that allows for greater flexibility of <br />standards tailored to the site’s specific constraints and opportunities. Developers <br />frequently opt to use the PUD process in conjunction with applications involving <br />rezoning of a site, and/or to accommodate larger scale projects that need flexibility from <br />the City’s typical zoning standards. In turn, the City negotiates certain project amenities <br />and typically the resulting projects include a high quality design, are compatible within <br />their context, and achieve developer’s goals. <br /> <br />Although the PUD process is beneficial in allowing developers flexibility, particularly for <br />larger-scale developments, and has allowed the City to negotiate a wide range of <br />community benefits in projects, the process has sometimes been criticized as lacking <br />clarity, introducing uncertainty in the entitlement process, and adding processing time <br />and costs to project approvals. PUDs on average are approved three-four months after <br />the project is deemed complete, though the entire process, through completeness, may <br />take closer to a year, or longer for complex projects, to complete. <br /> <br />The Housing Accountability Act (HAA) requires the City to facilitate housing <br />development through a streamlined process that provides certainty in outcomes. <br />Pursuant to the HAA, local jurisdictions may only rely on objective standards when <br />making a determination to approve, deny or modify a project’s density below th e <br />maximum allowed by the General Plan or zoning. <br /> <br />Given HCD’s line of questioning surrounding the PUD process and based on <br />experience with similar comments in other jurisdictions, to satisfy HCD’s concern and <br />achieve a certified Housing Element, the City’s Professional Services Team (Lisa Wise <br />Consulting) recommends including a program to modify the PUD process for the rezone <br />housing sites, as outlined below. <br /> <br />First, consistent with the Housing Accountability Act, the City is developing a <br />comprehensive set of Objective Design Standards for residential and mixed-use <br />developments, including both the existing and new Housing Element sites, as well as <br />residential and mixed-use zones that allow multi-family development. These standards <br />will help streamline development approvals, provide clear, consistent, and objective <br />guidance to applicants, and ensure quality and consistency throughout residential