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HomeMy WebLinkAboutGPA 11-04; HOUSING ELEMENT PROGRAM 2.1 UPDATED TIMELINES; ENCINITAS HOUSING ELEMENT 2005-2010;I • Exhibit "2" to Resolution No. 2006-48 City of Encinitas Housing Element 2005-2010 GOALS AND POLICIES The City will: • Implement housing policies that foster residential development and establish goals to meet a wide range of housing needs; • Enhance housing opportunities for all residents; • Ensure the quality and maintenance of existing housing units and protect the quality of life in neighborhoods; and, • Encourage the development, construction, rehabilitation, and conservation of affordable housing for low and moderate income households. Each issue area and the supporting goals and policies are identified and discussed in the following section. FOSTER RESIDENTIAL DEVELOPMENT TO ADDRESS FUTURE NEEDS The City will encourage the construction of new rental and homeownership housing units to ensure that an adequate supply is available to meet existing and future needs. The maintenance of a balanced inventory of housing in terms of unit type (i.e. single family, multi-family, congregate, and mobile home), price level, and style will ensure that housing opportunities are available to meet a wide range of needs. Each of the five communities has a distinct character due in large part to the nature of their existing residential neighborhoods. New housing development generally should reflect the character of the community in which it is located and should be compatible with the surrounding neighborhood in particular. Goal 1: Encourage the provision of a wide range of housing by location, type of unit, and price level to meet the current and future housing needs in the City. Policy 1.1: Maintain a balance of housing types in the City. Policy 1.2: Provide the capacity for the development or redevelopment of a wide variety of housing types to meet the varying needs of current and future residents. Policy 1.3: Ensure that new residential units are compatible in design with the surrounding residential neighborhood as planned by the City. Policy 1.4: Require that housing developed for low-and moderate-income households be dispersed throughout the City, and that such housing should be of comparable quality in terms of design and construction as the adjacent market-rate units. H-135 Policy 1.5: The City will make reasonable efforts to preserve quality rental housing, encourage rehabilitation of older rental units to extend the useful life of the properties, and facilitate new rental housing construction. In evaluating a proposed conversion of rental units to condominiums, the City will consider the following factors: 1) the effect conversion will have on the city's rental housing market to meet the needs of low and moderate income households; 2) the extent to which proposed improvements will significantly increase the useful life of the property; and, 3) the extent to which a proposed conversion will provide· homeownership opportunities for low and moderate income households (in accordance with the inclusionary program and coastal replacement requirement). Policy 1.6: Discourage the rezoning of mobile home park zones in order to preserve existing mobile home opportunities and encourage retention of all existing_, mobile home park that provide safe, decent, and low-cost housing opportunities. Policy 1.7: Identify potential 'smart growth' opportunity areas in order to facilitate the provision of increased density and/or mixed-use developments. ENHANCE FAIR HOUSING OPPORTUNITIES Equal access to housing for all is a fundamental right protected by both State and Federal laws. Fair housing is a condition in which individuals of similar income levels in the same housing market have a comparable range of housing choices available to them, regardless of race, col.or, ancestry, national origin, religion, sex, disability, marital status, familial status, source of income, or sexual orientation. Goal 2: Housing opportunities shall be made available to all persons regardless of race, color, ancestry, national origin, religion, sex, disability, marital status, familial status, source of income, or sexual orientation. Policy 2.1: The City shall affirmatively further its fair housing policies by supporting outreach, education, counseling, and mediation, and by referring individuals who may be victims of discrimination to State and Federal enforcement agencies. Policy 2.2: The City will collaborate with the County and other cities in the region to reduce or remove impediments to fair housing. Policy 2.3: The City will encourage residential developers to market housing opportunities in compliance with State and Federal fair housing laws. ENSURE THE QUALITY OF HOUSING AND PROTECT NEIGHBORHOODS Substandard and deteriorating housing units, in addition to the obvious problems of blight, can expose occupants to a wide range of hazards ranging from electrical fire to exposure to toxic substances used in construction. Many factors can determine the "life expectancy" of a dwelling unit including the quality of workmanship, age of building, type of construction, and deferred maintenance. H-136 Goal 3: The City will promote the development of high quality housing, enforce the maintenance of safe and decent housing, and improve the quality of life in residential neighborhoods. Policy 3.1: Where determined to be dangerous to the public health and safety, substandard units in the City shall be repaired so that they will comply with the applicable building, safety, and housing codes. When compliance through repair is not or cannot be achieved, substandard units shall be abated. Policy 3.2: Enforce the building, safety and housing codes through vigorous code enforcement efforts, to bring substandard units into compliance with City codes and to improve overall housing quality and conditions. Policy 3.3: Continue to support the existing housing rehabilitation programs for single-family homes and mobile home units administered by the County. Increase marketing and outreach efforts, especially in lower-income neighborhoods and mobile home parks. Investigate and apply for. any additional available funding. Policy 3.4: Improve and maintain a high quality of life in residential neighborhoods by providing adequate infrastructure, public facilities, and neighborhood amenities for new and existing residents. The City will continue to assess reasonable development fees on new residential units to finance necessary public improvements. The City will encourage developers to provide street planting, landscaping, lighting, and underground utilities as part of any subdivision. Policy 3.5: Continue to implement design review criteria that encourage high quality standards of design and materials in all residential developments. Policy 3.6: Encourage cost effective energy efficient housing, including the use of passive systems, to decrease energy use. ENCOURAGE NEW AFFORDABLE HOUSING DEVELOPMENT AND PROTECT RESTRICTED UNITS The City's existing housing stock includes several hundred units that are affordable to lower-income households. A significant part of the City's housing effort is to monitor these affordable units and ensure their continued affordability. The City is willing to commit its housing resources to maintaining and extending the term of affordability on restricted units. Goal 4: The City will facilitate the development of rental housing for lower income households, assist in creating ownership opportunities for moderate-income households, and attempt to preserve the affordability of existing restricted units. Policy 4.1: Enhance the feasibility of affordable housing development by providing incentives to developers proposing such projects, including reasonable reductions in development standards, streamlined permitting, gap financing, and/or reduced fees (to the extent that funds are available from dedicated revenue sources). H-137 Policy 4.2: Whenever restricted units are at risk of converting to market-rate units, negotiate with rental property owners to extend the term of affordability. Policy 4.3: The City will identify and develop dedicated revenue source(s) to fund an Affordable Housing. Trust Fund. The City will utilize the trust fund to leverage other public and private financing for affordable housing development projects. H-138 H-139 'I PROGRAMS , I PROGRAMS The programs contained in this section of the Housing Element describe specific actions the City of Encinitas will carry out over the five year Housing Element cycle to satisfy the community's housing needs· and meet the requirements of State law. The programs are organized into five major issue areas: Housing Opportunities, Homeownership Opportunities, Rental Assistance, Housing Quality, and Maintenance and Preservation. The City's quantified objectives for the five-year Housing Element follow the program descriptions. An important concept underlying the Housing Element is that the provision of affordable housing is an important action that the City needs to encourage. The following programs cover a broad array of housing issues but specifically include a number of new actions designed to enable the City to meet its affordable housing goals. ZONING ANO LANO USE OPPORTUNITIES Program 1: Zoning Code -Existing Provisions The relationship between housing goals and land use planning is direct. The Land Use Element of the Encinitas General Plan and its implementing zoning regulations is the City's most important "housing program," by providing for the number and type of housing units needed. The Housing Needs, Housing Constraints and Housing Opportunities sections of the Housing Element establish the relationship between identified housing needs and the ability to meet those needs through the City's land use planning. The following existing provisions of the City's Zoning Code are designed to ensure that the City achieves its housing objectives as a result of zoning implementation. Note that some of the City's zoning. provisions will continue to be implemented on an ongoing basis, while others need modification or "fine tuning" through amendments to the Zoning Code. Program 1 A: Overall Land Use Plan Implementation The City will continue to apply zones through the Zoning Code and Zoning Map to correspond with the Land Use Element's residential designations to provide a range of residential housing types and densities. These include the single-family residential categories, the multi-family categories (R-11 through R-25 zones) and the specialty category of Mobile Home Park (MHP). The City still has capacity for a range of housing types and densities both in terms of vacant land suitable for residential development and potential for redevelopment. The City will allow projects with affordable housing contributions, either monetary or physically constructing units, to apply for the highest allowable density under existing zoning. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Ongoing H-141 'l Program 1 B: Accessory Units The City will continue to apply zoning code provisions that allow accessory units (also known as second units or granny flats) by right in all single family residential zones, in accordance with State law. The City's accessory unit regulations were liberalized in the mid-1990's, permitting their construction by right in single-family neighborhoods. Implementation of the City's ordinance.permitted the construction of at least 163 new units during the last review period. This program has been successful in fostering the development of accessory units throughout the community and will be continued. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Ongoing Program 1C: Agricultural Worker Housing The City will amend its zoning ordinance to be consistent with state law regarding farm worker employee housing. In short, state law prohibits cities from imposing conditional use permit requirements on housing for six or fewer employees (including farm worker housing) if family housing of the same type in the same· zone does not require a use permit. In residential zones, residential uses are permitted by right, i.e., no conditional use permit is required. According to state Health & Safety Code Sections 17021.5 and 17021.6, employee housing (six or fewer) must be treated as any other residential use. Due in large measure to high housing demand, high land prices, and fundamental economic shifts in the agriculture industry, greenhouse and agricultural operations are increasingly being converted to residential land uses in Encinitas. The General Plan's Resource Management Element recognizes the important contributions that the agriculture industry has made to Encinitas' history, and contains a number of policies to encourage its continued role in the community. Consistent with these policies, the City will support efforts to provide housing for agricultural workers by encouraging participation in HCD's Joe Serna Jr. Farm Worker Housing program. This program provides grant and loan funding to assist with construction, rehabilitation and acquisition of owner-occupied and rental units for agricultural workers, with a priority for lower income households. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Initiate. and complete zoning amendment within 36 months; efforts to encourage participation in funding programs for agricultural housing -on-going Funding: Joe Serna Jr. Farm Worker Housing program of the CA HCD Program 1 D: Mobile Home/Trailer Parks The City will conduct a citywide assessment of mobile homes/trailer parks to determine their status and ability to continue to provide affordable housing opportunities. The expected outcome of the assessment will be a set of recommendations intended to maintain the future viability of mobile home communities through regulatory (zoning) and/or non-regulatory (financial incentives) means. The City will evaluate a number of policy and program options that could include, but not necessarily be limited to, rent controls H-142 I I on space and/or unit rents, bond financing to enable tenants to purchase space and/or units, and other policies designed to protect mobile home tenant housing in the City. The City will continue to apply zoning provisions that allow the development of new mobile home/trailer parks, and that recognize and allow the expansion of existing parks. The City will continue to maintain the. exclusive mobile home park zone (MHP) where appropriate, and will continue to provide for parks as an option under other zones. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): City-wide assessment -within 12 months; Zoning provisions -ongoing Funding: General Fund Program 1 E: Care Facilities In early 2005, the City revised its ordinance and definitions to be consistent with State standards. The City will continue to allow for the development of small-scale care facilities, community care facilities, congregate care facilities, and residential care facilities under zoning to meet the special housing needs of seniors and persons with disabilities. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Ongoing Program 1 F: Implement Reasonable Accommodation Procedure in Zoning and Building Permit Processes for Persons with Disabilities State law (SB 520 -Chesbro) requires jurisdictions to analyze potential and actual governmental constraints on the development, maintenance and improvement of housing for persons with disabilities and demonstrate local efforts to remove or mitigate those constraints. Housing elements must include programs that remove constraints or provide reasonable accommodation for housing designed for persons with disabilities. Through its building permit authority, the City enforces state Title 24 accessibility regulations. As needed on a case by case basis, the City has made reasonable accommodations with respect to accessibility in its application of zoning/development standards. However, to date no formal review of its procedures or zoning ordinances has been conducted as required by state law. This program will develop a formal reasonable accommodation procedure for persons with disabilities as related to zoning/development and building permit processes. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Within 6 months Funding: General Fund H-143 , , Program 1G: Modify City's Density Bonus Ordinance New State law (SB 1818) has modified the requirements for the City if a developer requests a density bonus for providing affordable housing as part of a development proposal. Key provisions of the new law include lowering minimum density bonuses and affordable housing set-asides, providing a density bonus range that caps at 35% and requiring cities to grant up to three incentives or concessions. The law also provides for reduced parking requirements if requested by a developer. The City's implementing ordinance of density bonus law is inconsistent with the recent changes. The City's adopted Local Coastal Program (LCP) restricts density bonuses to a maximum of 25 percent and allows only one concession or incentive due to the California Coastal Commission's interpretation of previous State Density Bonus Law. This program will bring the City's density bonus ordinance and LCP into conformance with the new provisions of state law. Additionally, the City will evaluate how the ordinance may be applied in conjunction with the City's lnclusionary Housing program (Program 1 H below) to maximize affordable housing opportunities. Implementing Agency: City of Encinitas Planning Department Schedule {from Housing Element adoption}: Within 6 months Funding: General Fund Program 1 H: lnc/usionary Housing The City's inclusionary housing program requires that subdivisions of 1 O or more units to set aside at least 10 percent of the units for low income households. As a condition of approval of any tentative subdivision map for residential dwellings, community apartments, stock cooperatives or conversions of 10 units or more, the subdivider is required to reseNe a unit(s) for rental to tenants at or below 50 percent of the median income. The unit(s) must be rented at or below the affordable rent level for households at 50% of the median income. The units either have to be rented at or below the affordable rent level or sold at a price affordable to eligible households. All required affordable units must be completed on or before the issuance of a certificate of occupancy for the first non-restricted unit. In the past, the City has allowed single-family subdivisions of 1 O or more units to fulfill the City's inclusionary housing requirement by building accessory dwelling units with an affordability deed· restriction. While this policy has resulted in dispersing affordable units throughout the community, enforcement of rent restrictions has proved difficult. After conducting a survey of accessory unit owners in October 2003, the City found that many homeowners did not rent the out the accessory units in accordance with the recorded covenant. The City subsequently changed its policy and no longer allows developers to meet inclusionary housing requirements by building accessory units. The City will implement changes in the program to more effectively meet the City's affordable housing goals and grant developers greater flexibility in how they fulfill their inclusionary housing requirement. Changes to be considered may include: establishing an in-lieu fee; modifying the project threshold size and/or minimum inclusionary housing set-aside; targeting a range of lower and moderate income units; allowing attached-unit development in single-family developments; promoting "unit banking"; modifying mid-range density policy to allow increased density when affordable housing is provided; allowing off-site affordable development; and accepting land donations. The City will evaluate how this program may be H-144 , , combined with the City's Density Bonus program (Program 1 G above) to maximize affordable housing opportunities. The City also will evaluate expanding the application of inclusionary housing to increase homeownership opportunities for moderate-income households. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Within 12 months Funding: General Fund Program 1 I: Permit Streamlining The City currently is engag~d in a program to improve the efficiency of the development review process. Elements of the program include upgrading the computerized permitting system, reducing unnecessary paperwork, eliminating certain permit requirements, and establishing an interdepartmental'team to quickly resolve problems as they arise. This program will benefit all development projects, including affordable housing. In addition to the current permit streamlining program, the City will continue its existing policy to expedite permitting procedures for affordable housing projects on a case-by-case basis. This program will emphasize working with non-profit housing developers to better utilize an expedited process, which would include priority plan review and inspection services. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Ongoing Program 1J: Implement Reduced Parking Standards for Mixed Use and Affordable Housing in Specific Plan Areas The Downtown Encinitas and the North 101 Corridor Specific Plans contain modified parking standards to encourage mixed-use and affordable housing development. In designated zones in the Specific Plan areas, the City requires no more than two off-street-parking spaces for a residential unit in a mixed-use development. Mixed-use units that are guaranteed to be affordable to low or very-low income households are allowed a reduced, one-space-per-unit parking requirement. The City will continue to apply these existing parking standards in the Downtown Encinitas and North 101 Corridor Specific plan areas. lmplementi'ng Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): ongoing Program 1K: Eliminate Separate Lot or Airspace Ownership Requirements in North Highway 101 Specific Plan Section 3.1.1 (A)(4) of the North 101 Corridor Specific Plan requires that "all [new] residential detached and attached dwelling units in residential-only developments must be constructed on a legally subdivided lot or must be subdivided to permit ownership of airspace in the form of a dwelling unit with an undivided H-145 share in common elements." While this requirement is appropriate for single-family homeownership projects, it may pose a disincentive to the provision of duplex and multi-family housing by imposing additional cost, processing and development requirements. The North 101 Corridor Specific Plan will be amended to eliminate the airspace requirement for multi-family housing . . Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Within 24 months Funding: General Fund Program 1 l: Manufactured Housing The city will continue to permit manufactured housing units by right in single family zones, as long as the units meet all zoning and building codes. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): ·ongoing Program 1 M: Neighborhood Revitalization Opportunities A. Neighborhood Revitalization Under HUD regulations, the City may designate a blighted or declining residential neighborhood as a "Neighborhood Revitalization Area". This designation enables the City to allocate its HUD funding and other available resources to implement a comprehensive revitalization program, which may include housing rehabilitation, new construction, homeownership opportunities, enhanced code enforcement, and capital improvements. The City will evaluate older neighborhoods to determine if they will benefit from this designation. If appropriate, the City will submit a Neighborhood Revitalization Area plan to HUD for approval. Implementing Agency: City of Encinitas City Manager's Office and Planning Department Schedule (from Housing Element adoption): Within 12 months Funding: General Fund Program 1 N: Amend Design Review Findings for Residential Projects The City requires design review approval for most proposed development. Unless exempt, residential projects need to be consistent with the City's design guidelines and comply with certain regulatory findings before they may be constructed. Among these findings is the requirement that the project "would not tend to cause the surrounding neighborhood to depreciate materially in appearance or value (EMC 23.08.080)." In response to concerns that such a finding could pose a constraint to housing, the City will evaluate this design review finding for its potential to be subjectively applied in denying a residential development. As noted in the Constraints Analysis, there is no history that a residential project was H-146 denied solely on the basis of this finding. Its effectiveness in assuring high quality development is minimal as compared to meeting the other three findings, namely, that a project "1) is consistent with the General Plan, a Specific Plan or the Municipal Code; 2) is substantially consistent with the Design Review Guidelines; [and] 3) would not adversely affect the health, safety, or general welfare of the community ... (EMC 23.08.080)." The City will consider alternative language or eliminating this finding altogether for residential projects. Implementing Agency: City of Encinitas Planning & Building Department Schedule (from Housing Element adoption): Within 60 months Funding: General Fund SMART GROWTH AND/OR MIXED USE DEVELOPMENT OPPORTUNITIES Program 2A: Affordable Housing Overlay Zone The City conducted an analysis of its land use plan to determine the potential capacity to meet its regional. housing needs allocation, especially the quantified objectives for new construction. The analysis shows that the City has capacity to accommodate its regional share. However, a significant portion of the higher- density capacity (15 to 25 du/acre) is in the mixed-use zones along the Coast Highway corridor. This corridor is predominantly built-out with commercial uses and so recycling of these properties to new mixed residential/commercial uses would occur over a long period of time. Recent experience with new mixed-use developments in this corridor suggests approximately 100 new residential units could realistically be built within the Housing Element planning period. To augment the higher-density capacity of these mixed-use zones and the remaining available multi- family residential sites, the City will establish an Affordable Housing Overlay Zone (AHOZ). The AHOZ would designate specific sites for higher residential density, provided that the affordable housing targets established for each site is met through development. The City will identify appropriate sites and apply the AHOZ designation through a zoning ordinance, General Plan, and Local Coastal Program amendment. Once the AHOZ is in place, builders will be allowed to develop designated properties at higher density without having to individually go through a General Plan Amendment or Re-zoning process. Some potential areas for initial consideration would be: 1. Older, commercial centers in need of revitalization; 2. "Smart growth" potential areas, particularly those centering around high levels of transit service; 3. Areas where existing and planned infrastructure could support in-fill or additional residential development to occur, while maintaining compatibility with surrounding land uses;and 4. Existing residential areas where vacant or in-fill lots provide potential for additional residential capacity. H-147 Candidate sites identified for the affordable housing overlay zone will be considered for changes to their land use designation and zoning through the public hearing and approval process. Potential re-zones for properties in the Coastal Zone would also be subject to review and approval by the California Coastal Commission. The objective for this program would be to create additional opportunities for affordable housing. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Initiate program within 6 months; identify AHOZ sites within first year, complete zoning, General Plan, and Local Coastal Plan amendments within ·two years. Funding Source: General Fund Program 28: Mixed Use Zom"ng The City will continue to allow for the inclusion of mixed-use development of secondary residential units with development of principal commercial uses. Mixed-use residential provisions may include requirements or incentives to be affordable. In a high-cost area such as Encinitas, this represents a significant opportunity for the development of multi-family housing. The Encinitas Ranch, Downtown Encinitas, and North 101 Corridor Specific Plans include provisions for mixed-use development in commercial districts with densities from the residential portion at 1525 dwelling units per acre. The City will work to increase developer awareness of the potential for mixed-use development in Encinitas. Within the first year of Housing Element adoption, and on an ongoing basis, the City will coordinate with the main street associations of Downtown Encinitas and North Highway 101 to promote infill mixed-use development in these areas. The City will create an informational hand-out and distribute through these groups and the City's electronic development services newsletter, and will make it available at the development services counter at City Hall as well as the City's website. Additionally, the City will continue to provide technical support to developers proposing mixed-use projects through weekly Staff Advisory Committee (SAC) meetings. Beginning in the first year of housing program implementation, the City will propose expanding mixed use zoning provi'sions in other areas of the city. Efforts will focus on expanding its application to the Cardiff-by-the-Sea Specific Plan area, the North El Camino Real potential Smart Growth Opportunity Area (SGOA) and possibly other select non-residential areas identified through the City's economic development strategies program. Properties that are determined appropriate for mixed-use development will have specific zoning and development standards applied to them through the re-zone, and/or General Plan /Local Coastal Plan Amendment process. In assessing whether to expand mixed-use zoning, consideration will be given to the historic development pattern of existing areas, to ensure that land use/zoning changes will result in future development that is compatible with the character of established neighborhoods. Implementing Agency: City of Encinitas Planning Department H-148 Schedule (from Housing Element adoption): Within 12 months Funding Source·: General Fund Program 2C: Coastal Housing Replacement State law (G.C. 65590) requires replacement of low and moderate-income housing lost due to conversion or demolition of housing in the Coastal Zone. The replacement requirement is applied to projects of three or more dwelling units (eleven or more if multiple structures) whose occupants are of low or moderate income, regardless of the dwellings' affordability. This program will identify potential resources to provide for that replacement housing. The range of options that could be considered under this activity could include fees for condominium conversions and other replacement housing requirements, especially for affordable housing lost through conversions or removal. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Within 24 months Funding Source: General Fund HOMEOWNERSHIP OPPORTUNITIES Program 3A: First-Time Homebuyer Down Payment The City will continue to offer the First-Time Homebuyer Program on a limited basis. This program provides down payment and/ or closing cost assistance to low-income first-time homebuyers. The maximum loan limit is $40,000 and the appraised value of the property being purchased could not have exceeded $421,000. Under this program, the City places a second trust deed on the property as security for the loan. Repayment of the loan is deferred until sale, transfer, or non-owner occupancy of the unit. If the buyer resides in the unit for seven full years, the loan was forgiven. The recent surge in home prices has rendered this program all but infeasible in Encinitas, with recently increased loan and sales price limits. Previously allocated funding for down payment assistance will continue to be made available in the event a unique opportunity for such assistance presents itself.. Otherwise this program will be phased out. Implementing Agency: City of Encinitas Housing Authority Schedule (from Housing Element adoption): Ongoing but will be phased out as funding is exhausted Funding Source: HOME, American Dream Downpayment Initiative (ADDI) Program 3B: San Diego Regional Mortgage Credit Certificate Program (MCC) The City will continue to participate in and promote the San Diego Regional Mortgage Credit Certificate Program. This program entitles qualified first time homebuyers to take a Federal income tax credit of 15 H-149 percent of the interest paid on the mortgage. The credit reduces the buyers' income taxes and increases net earnings, thereby increasing the buyers' ability to qualify for a mortgage loan. Qualified applicants must be first time homebuyers earning no greater than 120 percent of the area median income. The City will continue to participate in the MCC program in the event that a unique opportunity for such assistance pr~sents itself. As mentioned above, the recent surge in home prices has rendered this program all but infeasible. No MCC's have been issued in at least two years. Given the extremely high property values in Encinitas, the City will not rely on this program to achieve its affordable housing goals. Implementing Agency: San Diego Regional Mortgage Certificate Program through the City of Encinitas Community Development Department Schedule {from Housing Element adoption): Ongoing Funding Source: California Debt Limit Allocation Committee (CDLAC) RENTAL ASSISTANCE Program 4A: Section 8 Rental Assistance The City will continue to administer the Section 8 Rental Assistance Program. This program provides· rental assistance to eligible very low and low-income household. The subsidy represents the difference between the rent that exceeds 30 percent of a household's monthly income and the actual rent charged. HUD (the U.S. Department of Housing and Urban Development) has not issued any new vouchers to the City of Encinitas for the past 3 years. In January 2004 and January 2005, HUD capped the Section 8 budget, which required the City to reduce program operating costs. The City responded in part by lowering payment and occupancy standards. Although the City will continue to administer its 136 housing vouchers, the City's ability to expand or even maintain this program at its current level is dependent upon the annual Federal budget process. Recent indications from HUD are that Federal support for Section 8 will not be expanded. Implementing Agency: City of Encinitas Housing Authority Schedule (from Housing Element adoption): Ongoing Funding Source: U.S. Department of Housing and Urban Development H-150 Program 48: HOME Housing Vouchers Program The City will continue to fund this program by using vouchers to target very low-income households. The HOME program mirrors the Section 8 program, provides for a maximum 24 months of rental assistance. During this time period eligible participants may be transferred to the Section 8 program for ongoing assistance. Initially, the City provided housing vouchers to homeless families who were living in transitional housing (and who were victims of domestic violence). But after a year of operation, the program was broadened to allow tenants on the Section 8 waiting list to utilize the program. This program will be continued in the 2005-2010 Housing Element until previously allocated funds have· been exhausted. Continued funding will be assessed as the Housing Element cycle progresses. However, the City will emphasize directing future HOME funding on new housing development. Implementing Agency: City of Encinitas Housing Authority Schedule (from Housing Element adoption): Ongoing Funding Source: City of Encinitas HOME funds QUALITY OF HOUSING Program 5A: Equal Housing Opportunity The City will continue to require that, as a condition of approval of any new subdivision map, that the units be marketed and sold in accordance with professional practices that promote equal housing opportunities. The City will continue to contract with a fair housing agency to provide outreach, education and assistance to residents of Encinitas. Information about fair housing is available in the City's housing_ brochure and on the City website. Brochures are also distributed at libraries, grocery stores, community centers, and other public places. In 2004, the City participated in a new regional Analysis of Impediments to Fair Housing. The City also will address the impediments to fair housing identified in the study. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Ongoing Funding Source: City of Encinitas Community Development Block Grant Funds H-151 I I -- '' Emergency Shelter and Transitional Housing Program 58: Emergency Shelter The City will continue to sponsor or assist emergency shelters facilities, inside City limits or outside within a reasonable proximity. The City will encourage or support facilities by providing grants, or low cost loans, to operating agencies. The City will also provide financial assistance to the Community Resource Center (a nonprofit service agency based in Encinitas) for case management, the YMCA-Oz North Coast, Fraternity House, and North County Solutions for Change. The City will assist with winter homeless assistance, either through motel voucher funding or a temporary winter shelter (e. g., Interfaith Shelter network and the Scout Center). Implementing Agency: City of Encinitas Planning Department Schedule {from Housing Element adoption): Ongoing Funding Source: City of Encinitas General Fund, CDBG, Affordable Housing Fund Program 5C: Transitional Housing In 2006, the City Council allocated $450,000 in HOME funds to assist the Encinitas-based nonprofit Community Resource Center (CRC) in its effort to construct a 7-unit transitional housing project on property owned by the CRC. The project is in the feasibility and planning/design stage. Accordingly, this program will be modified as follows: • The City will assist a non-profit organization to develop a transitional housing project, either inside City limits or outside within a reasonable proximity. The City will encourage or support facilities by providing siting opportunities, grants, or low cost loans to operating agencies. Implementing Agency: City of Encinitas Planning Department Schedule {from Housing Element adoption): Within 24 months Funding Source: City of Encinitas General Fund, CDBG, HOME, Affordable Housing Fund Program 5D: Enforcement of Accessible Housing Regulations The City will continue to maintain accessible housing regulations and implement California Title 24· provisions for development review and approval. Implementing Agency: City of Encinitas Planning Department H-152 Schedule (from Housing Element adoption): Ongoing Program 5 E: Fair Housing Cities such as Encinitas that receive CDBG and HOME funding are required to certify that they will engage in fair housing planning. This specifically involves: conducting at the beginning of each five-year. cycle an analysis of impediments to fair housing choice; carrying out actions to overcome the effects of identified impediments; and maintaining records that provide available information and reports, including the analysis of impediments. The City participated in the preparation of the latest region-wide analysis of impediments, which was published in February 2005. The City maintains an ongoing commitment to the provision of fair housing in the community. The goal of the City's Fair Housing Plan is to affirmatively further fair housing through specific education outreach and monitoring activities. The City currently contracts with the North County Lifeline (NCL) to provide fair housing and landlord/tenant services to residents in Encinitas. NCL will help mediate and/or assist with filing fair housing complaints. As needed, NCL can arrange testing when unfair practices are suspected. Implementing Agency: City of Encinitas Planning Department Schedule: Ongoing Funding Source: CDBG Fund MAINTENANCE AND PRESERVATION OF HOUSING Program 6A: Residential Rehabilitation The City will continue to fund the County of San Diego residential rehabilitation program. This program provides assistance for low-income households to upgrade units to decent, safe and sanitary conditions from a previous below-standard condition. The assistance is available to low-income homeowners and to owners of rental units that will rent to low income households. Objective: Rehabilitate 25 units Implementing Agency: County of San Diego Schedule (from Housing Element adoption): Ongoing Funding: City of Encinitas Community Development Block Grant Funds Program 6B: Conversion of Illegal Units The City has a number of second dwelling units that were constructed or converted illegally (without required permits) and might not meet City codes. Many of these units provide affordable housing opportunities that might not otherwise be available. In response to this issue,· the City developed a program for illegal unit conversion. This program allows homeowners with illegally established second H-153 'I dwelling units on their property to apply for legalization. It allows the illegal units to exist in perpetuity provided that the units: • Were placed into service prior to City incorporation in 1986 and have been used as rentals since. • Comply with the current Uniform Building Code and meet City zoning and development standards to the maximum extent feasible; • Meet the minimum dwelling unit size standards; and • Are rented to only very low or low-income households. Implementing Agencies: City of Encinitas Planning Department, Code Enforcement Department Schedule: Ongoing FINANCING Program 7A: Federal and State Financing The City will facilitate or support the applications of experienced housing developers and homeless providers for financing to develop affordable housing. As part of the City activities associated with this program and Program 7B, the City will meet with potential affordable housing developers, provide site information, assist in the entitlement processes, and consider on a case-by-case other incentives to include, but necessarily limited to, fee waivers and modification of standards. In order to make affordable housing development economically feasible, developers must layer financing from several State and Federal financing sources. Below is a list of the major public financing programs currently available: • Low Income Housing Tax Credits-The CA Tax Credit Allocation Committee provides equity for investment for low-income rental housing projects. • Tax-Exempt Mortgage Revenue Bonds-The CA Debt Limit Allocation Committee provides debt financing for low-income rental housing project through bond financing. • Multifamily Housing Program (Proposition 46)-The CA Housing and Community Development provides debt financing for rental housing projects, with a set-aside for permanent supportive housing. • HOME Investment Partnership Program-The City of Encinitas participates in the County HOME Consortium, which receives entitlement funds from HUD annually. • Community Development Block Grant Funds-The City of ·Encinitas receives entitlement funds from HUD annually. • Project-based Section 8 Housing Choice Vouchers-The City of Encinitas may allocate up to 20% of its vouchers for project-based assistance. • HUD Competitive Grant Funding-HUD issues a SuperNOFA annually which makes competitive grant funding available for the following programs: Section 202 program for senior housing development projects; Section 811 program for housing development projects serving disabled persons; Supportive Housing Program for transitional and permanent housing development projects H-154 serving homeless persons with disabilities, and, Shelter Plus Care program providing rental assistance and supportive services for homeless persons with disabilities. • Housing Opportunities for People with AIDS/HIV-The County of San Diego receives funds annually from HUD. Implementing Agency: City of Encinitas Planning Department Schedule: Periodically throughout the planning period Program 7B: Local Government Financing The City will investigate potential local sources that will generate dedicated housing revenue to augment the City's affordable housing trust fund. As part of the City activities associated with this program and Program 7 A, the City will meet with potential affordable housing developers, provide site information, assist in the entitlement processes, and consider on a case-by-case other incentives to include, but necessarily limited to, fee waivers and modification of standards. Sources may include an establishment of an inclusionary in-lieu fee or a coastal replacement/conversion fee. Objective: Identify and develop one or more sources of dedicated housing revenue to augment the City's affordable housing trust fund. Implementing Agency: City of Encinitas Planning Department Schedule (from Housing Element adoption): Within 24 months H-155 QUANTIFIED OBJECTIVES I• QUANTIFIED OBJECTIVES Housing Element law requires that quantified objectives be developed with regard to new construction, rehabilitation, conservation and preservation activities that will occur during the five year housing element cycle. Table 51 summarizes the City of Encinitas' quantified objectives for the housing element cycle. A description of each follows. Table 51 TOT AL QUANTIFIED OBJECTIVES Encinitas, 2005-2010 .. Al>QV~ . Ve.rylow • . L.ow in.come • Moderate Moderate Totals : lhcome:· Income •• Income New Construction 328-438 280-354 324 o to 11 Rehabilitation 25 n/a* n/a Conservation 156 Preservation n/a n/a n/a n/a • The City only sets quantified objectives for very low and low income rehabilitation that occurs with assistance through the rehabilitation program. Moderate and above moderate income rehabilitation may still occur. NEW CONSTRUCTION 943 25 156 n/a The City has established quantified objectives for new construction based upon the Regional Share Needs Assessment (RHNA) adopted by the San Diego Association of Governments (SANDAG); the City has set a range based upon SANDAG's Modified Alternative 1 and Alternative 3 for new units from 2005 to 2010. This represents an average of 342 units per year and is consistent with SANDAG's projected growth for the City as found in the Cities/County Growth Forecast for 2030. This forecast used a variety of factors including land available for residential development to project the amount of new development in each jurisdiction. The City anticipates that much of the new construction will result from increased pressure for infill development, redevelopment, and mixed-use development, especially in the City's Specific Plan Areas. REHABILITATION The City anticipates that 25 units will be rehabilitated between 2005 and 2010. This objective will be achieved through participation in the County of San Diego's Residential Rehabilitation Program. As the City's housing stock ages, the need for housing rehabilitation to preserve neighborhood quality will H-157 I ' continue to increase. Therefore, the City will continue to promote the rehabilitation programs offered by the County of San Diego. CONSERVATION The City's quantified conservation objective for 2005-201 o is 156 based on continuing the existing number 136' Section 8 vouchers, and adding another 20 vouchers in anticipation of a smaller increment than the last cycle (substantially less, if any, than the 36 additional units during the last Housing Element cycle). The U.S. Department of Housing and Urban Development (HUD) has not issued any new vouchers to the City of Encinitas for the past 3 years. In January 2004 and January 2005, HUD capped the Section 8 budget, which required the City to reduce program operating costs. The City responded in part by lowering payment and occupancy standards. Although the City will continue to administer its 136 housing vouchers, the City's ability to expand this program or even maintain it at its current level is dependent upon the federal budget process. Recent indications from HUD are that federal support for Section 8 will not be expanded and that program retrenchment is likely over the next four years. PRESERVATION No affordable units are at risk of being lost during the next Housing Element cycle. Therefore, no quantified objectives needed to be established for this cycle. H-158