PLANNING COMMISSION

1. CALL MEETING TO ORDER 2. ROLL CALL 3. APPROVAL OF THE AGENDA 4. PUBLIC COMMENTS ON MINUTES AND ANY ITEM NOT ON THE AGENDA 5. APPROVAL OF MINUTES None. 6. RESOLUTIONS None. 7. PUBLIC HEARINGS ON ITEMS CONTINUED FROM PREVIOUS MEETING None. NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 AGENDA Regular Planning Commission Meeting PLANNING COMMISSION Tuesday, June 01, 2021 CITY OF ROLLING HILLS 6:00 PM ADJOURNED PLANNING COMMISSION MEETING Executive Order N-29-20 This meeting is held pursuant to Executive Order N-29-20 issued by Governor Newsom on March 17, 2020. All Planning Commissioners will participate by teleconference. Public Participation: City Hall will be closed to the public until further notice. A live audio of the Planning Commission meeting will be available on the City's website (https://www.rolling-hills.org/PC%20Meeting%20Zoom%20Link.pdf). The meeting agenda is also available on the City's website (https://www.rolling-hills.org/government/agenda/index.php). Join Zoom Meeting via https://us02web.zoom.us/j/99343882035? pwd=MWZXaG9ISWdud3NpajYwY3dF bllFZz09 Meeting ID: 993 4388 2035 Passcode: 647943 Members of the public may submit comments in real time by emailing the City Clerk's office at cityclerk@cityofrh.net. Your comments will become a part of the official meeting record. You must provide your full name but do not provide any other personal information (i.e., phone numbers, addresses, etc) that you do not want to be published. 1

8. NEW PUBLIC HEARINGS 8.A. RESOLUTION RECOMMENDING CITY COUNCIL ADOPTION OF AMENDED 2013- 2021 HOUSING ELEMENT. RECOMMENDATION: Recommend approval of Resolution No. 2021-06 to the City Council. 9. NEW BUSINESS None. 10. OLD BUSINESS None. 11. SCHEDULE FIELD TRIPS A. 75 Saddleback Road B. 2 Spur Lane 12. ITEMS FROM STAFF None. 13. ITEMS FROM THE PLANNING COMMISSION 14. ADJOURNMENT Next meeting: June 15, 2021 at 7:30 AM Field Trip and 6:30 PM via teleconference: https://us02web.zoom.us/j/99343882035?pwd=MWZXaG9ISWdud3NpajYwY3dFbllFZz09 Meeting ID: 993 4388 2035 Passcode: 647943 2021-06.PC RESOLUTION HousingElement.docx Attachment2-HCDPre-ComplianceFinding-042621.pdf Attachment3-2014HCDCommentswith2021Responses.pdf RollingHills2014-2021HousingElement-forCouncilAdoption-April2021.pdf Iniital Study 2014-2021 Update.pdf Corso.pdf Gregorio.pdf Notice: In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting. Documents pertaining to an agenda item received after the posting of the agenda are available for review in the City Clerk's office or at the meeting at which the item will be considered. All of the above resolutions and zoning case items have been determined to be categorically exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines unless otherwise stated. 2

1. CALL MEETING TO ORDER 2. ROLL CALL 3. APPROVAL OF THE AGENDA 4. PUBLIC COMMENTS ON MINUTES AND ANY ITEM NOT ON THE AGENDA 5. APPROVAL OF MINUTES None. 6. RESOLUTIONS None. 7. PUBLIC HEARINGS ON ITEMS CONTINUED FROM PREVIOUS MEETING None. NO. 2 PORTUGUESE BEND ROAD ROLLING HILLS, CA 90274 (310) 377-1521 FAX (310) 377-7288 AGENDA Regular Planning Commission Meeting PLANNING COMMISSION Tuesday, June 01, 2021 CITY OF ROLLING HILLS 6:00 PM ADJOURNED PLANNING COMMISSION MEETING Executive Order N-29-20 This meeting is held pursuant to Executive Order N-29-20 issued by Governor Newsom on March 17, 2020. All Planning Commissioners will participate by teleconference. Public Participation: City Hall will be closed to the public until further notice. A live audio of the Planning Commission meeting will be available on the City's website (https://www.rolling-hills.org/PC%20Meeting%20Zoom%20Link.pdf). The meeting agenda is also available on the City's website (https://www.rolling-hills.org/government/agenda/index.php). Join Zoom Meeting via https://us02web.zoom.us/j/99343882035? pwd=MWZXaG9ISWdud3NpajYwY3dF bllFZz09 Meeting ID: 993 4388 2035 Passcode: 647943 Members of the public may submit comments in real time by emailing the City Clerk's office at cityclerk@cityofrh.net. Your comments will become a part of the official meeting record. You must provide your full name but do not provide any other personal information (i.e., phone numbers, addresses, etc) that you do not want to be published. 1

8. NEW PUBLIC HEARINGS 8.A. RESOLUTION RECOMMENDING CITY COUNCIL ADOPTION OF AMENDED 2013- 2021 HOUSING ELEMENT. RECOMMENDATION: Recommend approval of Resolution No. 2021-06 to the City Council. 9. NEW BUSINESS None. 10. OLD BUSINESS None. 11. SCHEDULE FIELD TRIPS A. 75 Saddleback Road B. 2 Spur Lane 12. ITEMS FROM STAFF None. 13. ITEMS FROM THE PLANNING COMMISSION 14. ADJOURNMENT Next meeting: 15, June, 2021 at 7:30 AM Field Trip and 6:30 PM via teleconference: https://us02web.zoom.us/j/99343882035?pwd=MWZXaG9ISWdud3NpajYwY3dFbllFZz09 Meeting ID: 993 4388 2035 Passcode: 647943 2021-06.PC RESOLUTION HousingElement.docx Attachment2-HCDPre-ComplianceFinding-042621.pdf Attachment3-2014HCDCommentswith2021Responses.pdf RollingHills2014-2021HousingElement-forCouncilAdoption-April2021.pdf Iniital Study 2014-2021 Update.pdf Corso.pdf Gregorio.pdf Notice: In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting due to your disability, please contact the City Clerk at (310) 377-1521 at least 48 hours prior to the meeting to enable the City to make reasonable arrangements to ensure accessibility and accommodation for your review of this agenda and attendance at this meeting. Documents pertaining to an agenda item received after the posting of the agenda are available for review in the City Clerk's office or at the meeting at which the item will be considered. All of the above resolutions and zoning case items have been determined to be categorically exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines unless otherwise stated. 2

Agenda Item No.: 8.A Mtg. Date: 06/01/2021 TO: HONORABLE CHAIR AND MEMBERS OF THE PLANNING COMMISSION FROM: MEREDITH ELGUIRA, PLANNING DIRECTOR THRU: ELAINE JENG P.E., CITY MANAGER SUBJECT: RESOLUTION RECOMMENDING CITY COUNCIL ADOPTION OF AMENDED 2013-2021 HOUSING ELEMENT. DATE: June 01, 2021 BACKGROUND: State law requires all cities and counties in California to adopt a Housing Element as part of their General Plans. The Housing Element must show that each community is doing its fair share to meet the region’s housing needs and has adopted policies and regulations that implement State housing laws. The State requires that Housing Elements are updated every eight years. The current planning period (called the “5th Cycle”) extends from October 2013 – October 2021; the next planning period (the “6th cycle”) runs from October 2021 through 2029. The City of Rolling Hills met the statutory deadline for submitting its 5th Cycle Element. The City submitted a Working Draft for review by the State Department of Housing and Community Development (HCD) prior to the October 15, 2013 deadline. On December 16, 2013, HCD issued its determination that the Draft did not yet meet State Government Code requirements. The City revised the Element in response to the findings. On January 21, 2014, the Planning Commission recommended approval of the revised Draft by the City Council. The Council adopted the 5th Cycle Element on February 10, 2014 and submitted it to the State for certification. On May 30, 2014, the City received a 9-page determination letter from HCD indicating that the adopted Fifth Cycle Element still did not comply with Government Code requirements. The letter acknowledged that a number of HCD’s initial objections had been resolved. However, HCD found that the Element did not identify adequate sites for meeting Rolling Hills’ Regional Housing Needs Allocation, including potential locations for affordable multi-family housing. Moreover, the State advised the City that because it did not have a certified element for the 2006-2013 (4th Cycle) planning period, it was obligated to “carry over” its unmet need from the 4th Cycle and plan for both the 4th and 5th cycles in its 2013-2021 Element. 3

On December 28, 2018, HCD issued a notice of non-compliance to the City. The City met with HCD a number of times in early 2019 to address their objections. In April 2019, the City issued a letter to HCD agreeing on a schedule for compliance, including rezoning of land to meet the Regional Housing Needs Allocation. The schedule established the end of 2020 as the target for submitting a compliant element to HCD. During the remainder of 2019 and 2020, the City took a number of actions to develop a compliant Element, including adoption of Accessory Dwelling Unit regulations, reasonable accommodation procedures, and extensive outreach to residents on housing issues. In September 2020, the City retained a consultant to amend the Housing Element and address the specific issues raised in HCD’s 2014 comment letter. In November 2020, the City prepared amendments to the Land Use Element of the General Plan creating the Rancho Del Mar (RDM) Affordable Housing Overlay and adopting Plan provisions allowing multi-family housing within the Overlay area. The City subsequently released an Initial Study/ Negative Declaration (IS/ND) on the Land Use Element Amendments and Draft RDM Affordable Housing Overlay Zoning District. Draft amendments to the Municipal Code creating the RDM Overlay Zone were prepared in December 2020. The Zone permits 16 units of affordable multi-family housing on the 31-acre site at 38 Crest Road owned by the Palos Verdes Unified School District. While the zone maintains the General Plan density of one unit per two acres for the site as a whole, it requires that the allowable number of units be clustered in the area west of the PVPTA maintenance facility. The Zone further permits emergency shelter and Single Room Occupancy (SRO) residential uses on the site, subject to specific development standards included in the Code. At its meeting on December 22, 2020, the Planning Commission recommended that the City Council approve the Overlay Zone and IS/ND, with the modification that housing on the site should be 100% affordable. The City Council convened a public hearing on the Ordinance creating the RDM Affordable Housing Overlay Ordinance, and Resolution amending the General Plan Land Use Element on January 22, 2021. A subsequent hearing was convened on February 8, 2021 and the Resolution was approved at that time. The Ordinance was approved at its second reading on March 8, 2021. Minor revisions to the General Plan Amendment and Ordinance were incorporated in response to Council comments. While adoption of the Zoning Ordinance and General Plan Amendment was proceeding, staff worked with HCD on further revisions to the Housing Element. Meetings with HCD’s Housing Policy Division took place on September 22, November 19, December 14, December 31, 2020, to discuss HCD’s comments and the changes needed to achieve a compliance determination. On February 26, 2021, the City submitted a revised Draft Housing Element to HCD. On March 11, 2021, the City met with HCD to review their comments on the newest draft. HCD indicated that the latest revisions responded to most of their objections but requested a few minor clarifications. These clarifications were made and a revised Draft was submitted on March 29, 2021. On April 2, 2021, HCD responded that all issues had been adequately addressed, but asked that the City provide an analysis of the Rolling Hills Community Association’s role in reviewing applications for new Accessory Dwelling Units (ADU). Specifically, HCD requested that the City determine if RHCA’s design review procedures were constraining the production of ADUs that were otherwise permitted ministerially (i.e., without review by the Planning Commission or City Council). Staff provided supplemental information on this topic, noting that every ADU reviewed by RHCA had been approved, and that the review did not adversely affect the time required for approval or result in costly changes to design or materials. Revisions to the document were made to provide the requested evaluation. 4

On April 26, 2021, HCD issued its finding that the Draft Element, as amended, met the requirements of the Government Code and would be deemed compliant if adopted as presented. Accordingly, the City has scheduled the amendments to the Element for public hearings before the Planning Commission and City Council. If the Commission adopts the attached Resolution, the item will be considered by the City Council on June 14, 2021. HCD’s decision letter includes a reminder to the City that the 6th Cycle Housing Element is due on October 15, 2021. A number of new State requirements will apply to that document. Moreover, the 6 th Cycle housing allocation is 45 units, which is a 60 percent increase over the combined 4th and 5th Cycle allocation. The City is currently in the early stages of preparing its 6th Cycle Element and intends to have a Draft ready for Planning Commission review in late Summer. DISCUSSION: This section of the staff report highlights the changes made to the Housing Element to address HCD’s comments. The most significant change is that the Element adopted in 2014 concluded that the City would be unable to meet its Regional Housing Needs Allocation (RHNA) due to slope, wildfire, land use, landslide, and infrastructure constraints, whereas the amended 2021 document demonstrates that the City has capacity to meet the RHNA. This conclusion is mandated under State law and is necessary for a compliance determination. Specific changes to the document are highlighted below. The document is organized the same way it was in 2014. It includes an Introduction, a Needs Assessment, a discussion of Housing Constraints, an Assessment of Regional Needs, a discussion of Housing Opportunities (including potential sites), and Housing Goals, Policies, and Programs. Each chapter has been edited to respond to the State’s comments and describe activities since 2014. Edits also reflect the fact that the City was required to “carry-over” 22 units from the 4th Cycle. Foreword A Foreword was added explaining that the Housing Element Update has been prepared to meet a State mandate. The Foreword notes that cities without certified elements face loss of funding and potential loss of local land use authority; thus, it is in the City’s best interest to have a compliant Element. Introduction Background information on public participation has been added to show that City has made an effort to engage all economic segments of the community. This is required by State law. Needs Assessment Additional information on extremely low-income and disabled residents has been provided, per the State’s comments on the 2014 Draft. Housing Constraints The following changes have been made: A section has been added on constraints for different housing types, per State guidelines 5

Text on Accessory Dwelling Units has been moved here from Chapter 5 and expanded per the State’s comments. Changes to City Ordinances made since 2014 have been described. The description of multi-family housing has been updated to reflect the new Affordable Housing Overlay Zone The text on emergency shelter and SROs (Single Room Occupancy) has been updated to show that the City has met State requirements The discussion of housing for persons with disabilities has been updated to reference the City’s new reasonable accommodations provisions A new section has been added on the “Cumulative Impacts of Land Use Controls,” per HCD requirements The discussion of permitting times, processing, and fees has been updated per HCD comments A discussion of ADU processing and the impacts of RHCA’s design review procedures has been added, per HCD comments Housing Assessment Summary The text on the RHNA has been updated to describe the 4th cycle carry over requirements and increase the planning period target to 28 units (2006-2021). Housing Opportunities The following changes have been made: A list of vacant sites, including their Assessor Parcel Numbers, has been added—as required by state law A discussion of “underutilized land” has been added A detailed discussion of the 31-acre PVUSD (Rancho Del Mar) site has been added, including a description of the new Overlay Zone A discussion of ADU opportunities has been added, including the findings of the ADU survey administered in 2020 The City’s ability to meet the RHNA is affirmatively demonstrated Housing Plan The Housing Plan has been updated to respond to HCD’s comments. Since the period covered by the Element is 2014-2021, the City has included many of the actions it has already completed in order to demonstrate its progress and responsiveness to the State’s comments. The following new programs have been added to the document: 1. Prepare an Annual Progress Report (This is required by State law) 2. Amend Land Use Element to allow a variety of housing types (This has been completed) 3. Create Affordable Housing Overlay Zone (This has been completed) 4. Identify next steps for PVUSD site (This is “in progress”) 5. Allow emergency shelter (This has been completed) 6. Allow SROs (This has been completed) 7. Adopt Reasonable Accommodation (This has been completed) 8. Add definition of supportive, transitional, and employee housing to code (This is required by State law and may be done later in 2021) 9. Adopt density bonus ordinance (This is required by State law and may be done later in 2021) 6

10. Adopt ADU requirements (This has been completed) 11. ADU education and outreach, including meeting with RHCA to make sure Architectural Review is not a constraint (This is “in progress”) 12. ADU Incentives (This will be carried forward to the 6th Cycle Housing Element) 13. Monitoring of multi-family constraints and new opportunities (This was required by HCD and will be carried forward to the 6th Cycle) 14. Seek ways to assist Extremely Low-Income Households (ongoing, required by Government Code) 15. Facilitate communication with housing developers (ongoing, required by Government Code) In addition, several programs from the Draft adopted in 2014 have been retained and carried forward, but with updated text. These include programs supporting: Shared housing (roommate matching, especially for seniors living alone) Sewer feasibility studies Stormwater runoff improvements Code enforcement (ongoing) Energy conservation Remodels and new construction Repair of landslide damaged lots Fair housing practices Appendices Two appendices have been added to the Housing Element. The first is a profile of the Rancho Del Mar site, demonstrating the viability of multi-family housing on the property. This was required by HCD in order to qualify the site as eligible to meet the RHNA. The second is the report on the 2020 ADU survey. The results of the survey were presented to the Planning Commission in March 2021. NEXT STEPS: If the Planning Commission approves the attached Resolution, the amended Housing Element will be presented to the City Council for action. Following Council adoption, the Element will be submitted to HCD for a formal determination of compliance. Once that determination is received, the City will be fully compliant with State Housing Element law and will not be subject to “carryover” requirements for its 6th Cycle Housing Element. The City has already begun work on the 6th Cycle Element and will accelerate that work once the Council has adopted the amended 5th Cycle Element. Additional Planning Commission meetings on the 6th Cycle Element will take place this Summer. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA): Amendment of the Housing Element is considered a Project under CEQA. Accordingly, an Initial Study and Negative Declaration were prepared when the Housing Element was initially updated in 2013. The IS/ND was adopted by the City Council concurrently with the Housing Element on February 10, 2014. Most of the amendments to the Housing Element that are now under consideration were addressed by a separate IS/ND issued in November 2020. That IS/ND considered the environmental effects of amendments to the General Plan Land Use Element and creation of the RDM Affordable Housing Overlay Zone. The IS/ND for the General Plan Amendment and Overlay Zone was approved 7

on March 8, 2021. Both the 2014 Housing Element IS/ND and the subsequent 2021 IS/ND for the General Plan Amendment and Overlay Zone concluded that the project would have no significant environmental impacts. The edits included in the revised 2014-2021 Housing Element would not change these findings and do not require recirculation of the IS/ND or preparation of a third IS/ND. The edits primarily document measures that have already been taken by the City and the addition of data and analysis required by State law. Based upon all of the information in the record, including this staff report, none of the conditions outlined in Public Resources Code, section 21166 or State CEQA Guidelines, section 15162 requiring subsequent environmental review are triggered by these Housing Element Updates. Thus, no further environmental documentation will be prepared for this plan. To the extent that this Housing Element Update would involve future preparation of ordinances, such as a density bonus ordinance, those ordinances will be evaluated for compliance with CEQA at such time that they are formulated and prior to Council action on them. FISCAL IMPACT: The Housing Element is a planning document that establishes policies for the City of Rolling Hills and will not have a direct fiscal impact on the City. It may have an indirect positive fiscal impact by reducing legal risks and qualifying the City for State planning grants. RECOMMENDATION: Approve Resolution No. 2021-06 recommending that the City Council approve the amendments to the 2014-2021 Housing Element ATTACHMENTS: 2021-06.PC RESOLUTION HousingElement.docx Attachment2-HCDPre-ComplianceFinding-042621.pdf Attachment3-2014HCDCommentswith2021Responses.pdf RollingHills2014-2021HousingElement-forCouncilAdoption-April2021.pdf Iniital Study 2014-2021 Update.pdf Corso.pdf Gregorio.pdf 8

Resolution No. 2021-06 -1- 2014-2021 Housing Element RESOLUTION NO.2021-06 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ROLLING HILLS RECOMMENDING THAT THE ROLLING HILLS CITY COUNCIL ADOPT AMENDMENTS TO THE 2014-2021 ROLLING HILLS HOUSING ELEMENT. A NEGATIVE DECLARATION WAS PREVIOUSLY PREPARED, ADOPTED, AND FILED FOR THIS PROJECT THE PLANNING COMMISSION DOES HEREBY FIND, RESOLVE AND ORDER AS FOLLOWS: Section 1. Recitals A. On January 4, 1957, the City of Rolling Hills was established as a duly organized municipal corporation of the State of California. B. The City of Rolling Hills adopted its current General Plan on June 25, 1990. The General Plan establishes goals, objectives, and strategies to achieve the community’s vision for its future. A Housing Element of the General Plan was initially adopted in 1991 and amended in 2001 and 2009. C. Cities and counties in the Los Angeles region were assigned new Regional Housing Needs Allocations in 2013 and were required by State law to update their Housing Elements to cover the October 15, 2013 through October 15, 2021 planning period. D. The City of Rolling Hills prepared a Draft Housing Element update for 2014- 2021. The Planning Commission reviewed a Preliminary Draft Housing Element at a Public Hearing/ Workshop on September 26, 2013. The document was forwarded as a Draft to the California Department of Housing and Community Development (HCD) for their 60-day review. On December 16, 2013 HCD requested modifications which were incorporated into a revised Housing Element update, E. On December 30, 2013 pursuant to Government Code Sections 65090 and 65353, the State of California Clearinghouse, the cities of Rolling Hills Estates, Rancho Palos Verdes, Palos Verdes Estates, the Palos Verdes Peninsula Center Library, the Palos Verdes Peninsula Unified School District, and the County of Los Angeles were notified of upcoming public hearings for this project. Notifications of the public hearings were published in the Palos Verdes Peninsula News on January 2 and January 30, 2014 and the City of Rolling Hills Newsletter. Copies of the 2014-2021 Housing Element update and Initial Study were made available at the public counter and the City's web site. F. Pursuant to the provisions of the California Environmental Quality Act (CEQA), Public Resources Code Sections 21000 et seq., the State CEQA Guidelines California Code of Regulations, Title 14, Sections 15000 et seq., and the City's Local CEQA Guidelines, the City prepared an initial study and determined that there was no substantial evidence that adoption of ATTACHMENT 1: DRAFT RESOLUTION FOR HOUSING ELEMENT 9

Resolution No. 2021-06 -2- 2014-2021 Housing Element the 2014-2021 Housing Element may have a significant effect on the environment. Accordingly, a negative declaration was prepared and notice of that fact was given in the manner required by law. G. A duly noticed public hearing before the Planning Commission to consider the proposed negative declaration and the 2014-2021 Housing Element was held on January 21, 2014 at which time public comments on the negative declaration and the 2014-2021 Housing Element were received by the Commission. At that meeting, the Planning Commission adopted Resolution No. 2014-03 recommending that the City Council adopt the Housing Element and Negative Declaration. H. The City Council at a public hearing on February 10, 2014 considered individually and collectively, the proposed negative declaration and the 2014-2021 Housing Element. After due consideration of public testimony, staff analysis and the Planning Commission's recommendation, the City Council determined that the 2014-2021 Housing Element, General Plan Amendment No. 2014-01, furthered the housing goals of the City's General Plan, and adopted the proposed negative declaration and 2014-2021 Housing Element. I. The State of California Department of Housing and Community Development (HCD) issued a determination letter on May 30, 2014, finding that the Element had only addressed some of the issues in the December 16, 2013 letter and was not in compliance with the California Government Code. J. HCD issued a subsequent letter to the City on December 28, 2018 indicating its non-compliant status and requested that the City establish a timeline for compliance. K. The City established a tentative schedule in collaboration with HCD to develop a compliant element by the end of 2020. L. The City worked diligently during 2019 and 2020 to meet the requirements of the Government Cod