The Housing Element of the city’s General Plan was once again returned to Goleta by the state department of Housing and Community Development for revision, perhaps putting another wrinkle in the city’s efforts to roll out its General Plan.

“The Department finds that the element continues to require significant revisions to comply with State housing element law,” said HCD in a letter dated March 19 to the city.
Among the issues described by HCD were development standards, details on special needs housing and information needed on the element’s compatibility with the other elements in the General Plan.

“We knew they had concerns with some of the policies,” said City Manager Dan Singer.
Arguably the biggest issue that stands in the way of Housing Element certification would be its adopted 55 percent inclusionary policy for homes planned along the Hollister corridor. Local developers and housing advocates say the policy, which would be about twice the standard rate found in the state, actually prevents developers from wanting to build homes in the area.

“(HCD) didn’t flat out reject it; we have to prove that (the inclusionary policy) doesn’t become a barrier,” Singer said. The previous City Council, which devised the 55 percent policy, did so in part to satisfy mandated Regional Housing Needs Assessment requirements for housing, which calls for 2,388 homes to be planned for by 2008. While the previous council would likely have moved to defend the 55 percent, Singer said, the current council is not as likely to want to move in that direction.

The city does have the option of forgoing HCD certification of the Housing Element, instead choosing to self-certify the document; however, without HCD certification, the Housing Element is more vulnerable to legal challenge.

But now that the city has received HCD’s comments on the element, Singer said, staff and city officials have the information required for their considerations regarding General Plan amendments and other planning issues. The council, said a media release from the city, “is already engaged” in reviewing some of the city’s development standards for amendment, including changes to Floor Area Ratios, setbacks, as well as the inclusionary policy.