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HomeMy WebLinkAboutGPA 11-04; HOUSING ELEMENT PROGRAM 2.1 UPDATED TIMELINES; LEMON GROVE HOUSING ELEMENT 2005-2010; 2006-12-01. ' GOALS AND POLICIES GOALS AND POLICIES This section of the Housing Element contains goals and policies the City will implement to address a number of important housing-related issues. An objective of the City of Lemon Grove is to help ensure that decent, safe housing is available at a cost that is affordable to all current and future residents of this community. To this end, the City will strive to maintain a reasonable balance between rental and ownership housing opportunities and to encourage a variety of individual choices of tenure, type, and location of housing throughout the community. To achieve this objective, the following sub-goals and policies are addressed in this element: 1) maintain and enhance the quality of residential neighborhoods in Lemon Grove; 2) provide programs for the development and preservation of lower and moderate income housing; 3) encourage the adequate provision of housing in a variety of costs, types, styles, locations, and tenures to meet the existing and future needs of Lemon Grove residents; (4) provide increased opportunities for home ownership; and (5) promote equal opportunity for all residents to reside in housing of their choice. Each goal and the supporting policies are identified in the following section. Goal 1: Maintain and enhance the quality of residential neighborhoods in Lemon Grove. Policy 1.1: Advocate the rehabilitation of substandard residential properties by homeowners and landlords. Policy 1.2: Use the City's code enforcement program to bring substandard units into compliance with City codes and to improve overall housing quality and conditions in Lemon Grove. Goal 2: Provide programs for the development and preservation of lower and moderate- income housing. Policy 2.1: Provide support to both for profit and nonprofit development corporations for the development of affordable housing. Policy 2.2: Preserve the existing housing opportunities for low and moderate income families currently living within the community, and maintain the existing housing stock in good condition. Policy 2.3: Attempt to preserve restricted low income housing in the City that is at risk of converting to market-rate housing by: a) identifying financial and organizational resources available to preserve these units; and b) assisting interested agencies and/or tenants groups in forming partnerships and gaining access to financial and technical resources. 131 Policy 2.4: Apply the density bonus requirements as established by S B 1818. Policy 2.5: Implement City's adopted resolution on smart growth and explore opportunities to identify sites for their potential as "Smart Growth Opportunity Areas". Policy 2.6: Identify opportunities for the application of an lnclusionary Housing Program. Policy 2.8 Update the City's policies on the conversion of apartments to condominiums. Goal 3: Encourage the adequate provision of housing in a variety of costs, types, styles, locations, and tenures to meet the existing and future needs of Lemon Grove residents. Policy 3.1: Provide a variety of residential development opportunities in the City including low density single family homes, moderate density town homes, higher density apartments and condominiums, and residential/commercial mixed use to fulfill regional housing needs. Policy 3.2: Encourage both the private and public sectors to produce or assist in the production of housing in accordance with the SANDAG RHNA quantified objectives for all four income categories (very low, low, moderate and all other households), with particular emphasis on housing affordable and accessible to lower and moderate income households, people with disabilities, elderly households, large households, female-headed households, and homeless persons. Policy 3.3: Ensure that low income housing is developed in areas with adequate access to employment opportunities, community facilities and public services, and is not concentrated in any single area within the City. Policy 3.4: Encourage the development of new housing units designated for lower income and special needs households within close proximity to public transportation and community services. Policy 3.5: Encourage the development of childcare facilities to coincide with new housing development if appropriate based upon the project circumstances and evaluate the use of incentives to encourage development of childcare facilities when appropriate. Policy 3.6: Implement the State senior housing requirements. Policy 3.7: Address the impediments to affordable housing: density bonus (see above); CUP requirem·ents for multi-family housing, explicit provisions for mobile homes, manufactured housing, transitional housing and emergency shelters; and ADA compliance. Propose specific development standards for multifamily housing and propose an amendment to ministerially process multifamily housing development permits. Policy 3.8: Prohibit the conversion of existing residential units to condominiums in commercial zones. Policy 3.9: Implement State requirements for Large Family day-care facilities. 132 Policy 3.1 O: Consider pedestrian circulation patterns for n~w development projects near the trolley (MTS) right-of-way to ensure safety within the rail corridor. Safety factors to consider include, but are not limited to, the planning for grade separations for major thoroughfares, improvements to existing at-grade highway-rail crossings due to increase in traffic volumes and appropriate fencing to limit the access of trespassers onto the railroad right-of-way. Goal 4: Provide increased opportunities for home ownership. Policy 4.1: Assist low and moderate income residents in achieving home ownership. Policy 4.2: Encourage alternative forms of home ownership, such as shared equity ownership and limited equity cooperatives. Goal 5: Promote equal opportunity for all residents to reside in housing of their choice. Policy 5.1: Support the prohibition of discrimination in the sale or rental of housing with regard to race, ethnic background, religion, handicap, income, sex, age, and household composition. Policy 5.2: Assist in the enforcement of fair housing laws by providing support to organizations that receive and investigate fair housing allegations. Monitor compliance with fair housing laws, and refer possible violations to enforcing agencies. 133 [THIS PAGE INTENTIONALLY LEFT BLANK] 134 'I PROGRAMS PROGRAMS This section of the Housing Element contains goals and policies the City will implement to address a number of important housing-related issues. ASSIST IN THE DEVELOPMENT OF AFFORDABLE HOUSING Program 1: Density Bonus Program Description 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. The new law (Attac)lment 1): 1. Lowers the number of housing units required to be provided at below market rate in order to qualify for a density bonus. 2. Lowers the density increase _from 25 percent to 20 percent for moderate income. 3. Requires that the density bonus increase incrementally. 4. Requires local governments to provide a developer one or more incentives or concessions if below market rate units are included within the project. 5. Requires that the local government ensure that the initial occupants of the moderate-income units are actually moderate income. 6. Allows, upon sale of the unit, the seller to keep the value of any improvements, the down payment, and the seller's proportionate share of appreciation. 7. Provides that the local government shall recapture its proportionate share of appreciation, which shall be used within three years for promotion of affordable homeownership. 8. Provides a percent density bonus to the developer of any market rate housing project who donates land to a local government that could accommodate housing. 9. Expands the definition of "housing development" to include a subdivision, or a planned unit development, or condominium project. 10. Requires that incentives or concessions offered by the local government result in identifiable, financially sufficient, and actual cost reductions. 11. Clarifies that local governments may still grant density bonuses greater or lower than what is provided under these provisions. 137 12. Limits parking standards upon the developer's request. Implementing Agency: City of Lemon Grove Community Development Department and City Attorney. Funding Source: City of Lemon Grove General Fund. Schedule: 12 months from date of Housing Element adoption. Program 2: lnclusionary Housing Program Program Description The City will conduct an analysis to consider the establishment of an inclusionary housing program. The study will analyze the policy implications of such a program to include: (1) the need for such a program; (2) the thresholds and set-aside requirements; (3) the potential for, and the potential amount of, an in-lieu fee; (4) on-site/off-site requirements; (5) design requirements; (6) processing requirements; and (7) other policy issues that may be needed to be addressed to include, but not be necessarily limited to, its potential use as part of redevelopment processes. Implementing Agencies: City of Lemon Grove Community Development Department. Funding Source: City of Lemon Grove General Fund. Schedule: Within 18 months from date of Housing Element adoption. Program 3: Multi-Family Revenue Bond Financing Program Description The County of San Diego implements the tax-exempt Multifamily Housing Revenue Bond Program. Under this program, the County issues tax-exempt revenue bonds and the proceeds of the bond sales provide below-market construction and permanent financing for rental housing developments. Bond-financed developments must reserve either 20 percent of the total units for households whose annual income is at or below 50% of San Diego's AMI or 40 percent of the total units for households whose annual income is at or below 60% of San Diego's AMI. The rent restrictions are required to be in place a minimum of 20 years or while bonds are outstanding. The purpose of the program is to: a) provide below market rate financing to encourage the development of moderately priced rental housing; and b} to expand the supply of affordable housing by reserving 20 percent of the units in the bond-financed developments at affordable rents for lower income households. Bonds provide a cost-effective mechanism the City can utilize to promote affordable rental opportunities. The City will continue to encourage prospective developers to take advantage of available bond financing through the County. Where smaller rental projects are proposed, the City 138 will act as liaison with individual developers and the County to consolidate bond issues. No projects were financed with this program during the last Housing Element cycle. The City will continue to examine opportunities to implement this program and continue to work with the County if any potential applications arise. Implementing Agencies: City of Lemon Grove Community Development Department, County of San Diego Department of Housing and Community Development. Funding Source: California Debt Limit Allocation Committee (CDLAC) Bonds. Schedule: Ongoing. Program 4: Cooperation/Coordination with For-Profit and Non-Profit Housing Developers Program Description For-profit and Non-profit housing developers promote and develop housing, Non-profits are often a critical component in the development of low and moderate-income housing. The City of Lemon Grove has compiled the following list of non-profit developers who have been active in the area: • Interfaith Housing • Habitat for Humanity • Metropolitan Area Advisory Committee (MAAC) • Cooperation of Affordable Communities and Homes (COACH) The City of Lemon Grove will continue to augment and refine this list of non-profit developers for purposes of soliciting their involvement in affordable housing construction in the City. The City will continue to utilize non-profit housing organizations to provide financial assistance and technical support in the development of affordable housing, including housing development within Special Treatment Areas (STAs). The City also will continue to work with for-profit developers to insure that all opportunities are assessed. The actions that the City will take specifically include but are not necessarily limited to: potential funding assistance (using potentially redevelopment monies, or other State and federal funds if they were to become available); identification of sites available for development, infill and/or redevelopment; entitlement process (-es) incentives as may be necessary and appropriate; and others as may be added by the City. With the adoption of the Downtown Village Specific Plan, which encourages housing units to be developed in the City's downtown corridor, the City has explored, and will continue to explore, opportunities to assist housing developers that can help accomplish the objectives of the Housing Element. Implementing Agency: Community Development Department in collaboration with one or more non-profit agencies. Funding Source: Federal, State and local funds. 139 Schedule: Ongoing and the City will annually contact the nonprofits and provide information about development and redevelopment opportunities, especially as it relates to major redevelopment and/or significant infill opportunities. These efforts will include notices and specific out reach as part of ST A's I and II specifically to the non-profit developers. Program 5: Pursue Affordable Housing Funding Sources Program Description Successful implementation of housing element programs to create and maintain affordable housing will depend on a variety of state, federal, and local funding sources. The City of Lemon Grove will actively pursue funding to assist in the development, preservation and rehabilitation of affordable housing. The City will identify these funding opportunities to both private and non-profit developers as part of the residential development processes, especially those projects that have the potential for affordable housing. The actions that the City will take specifically include, but are not necessarily limited to: identify potential funding assistance (potentially using redevelopment monies, or other State and federal funds if they were to become available); identification of sites available for development, infill and/or redevelopment; consideration of entitlement process (es) incentives as may be necessary and appropriate; and others -as may be added by the City. The City will continue to work in concert with the County of San Diego, Department of Housing and Community Development (HCD), as a major resource for the implementation of the appropriate housing programs. The following funding sources currently are available for these uses: A. Community Development Block Grants and Home Funds As an incentive for developers to provide a sufficient level of affordable housing, CDBG funds and HOME funds are available through the County. These federal funds are made available through a Notice of Funding Availability (NOFA) process administered through the County Department of Housing and Community Development. Housing development, or acquisition, or acquisition and rehabilitation proposals are evaluated and rated based on the development's housing affordability and other important criteria. In 2005 the City began contracting with the County HCD to encumber for a three year period, rather than on an annual basis. However, the amount of funds available for this program is projected to decline as part of a federal funding reduction (and there have even been recent discussions at the congressional level to abolish the program). The program will continue to be used for ongoing tenant/landlord mediation services and street rehabilitation. B. Low Income Housing Tax Credits (LIHTC) This State program that provides tax credits for owners of or investors in low-income rental housing. The tax credits are available for use over a 10-year period. The credits are normally sold to investors to help finance the initial development of a project. For a period of 15 years, the tax credit recipients must meet certain affordable rental rate and occupancy requirements for low or very low-income households. At a minimum, the owner must reserve, at affordable rental rates, either 20% of the total units for households with income at or below 50% of regional median, or 40% of the units for households with income at or below 60% of regional median. 140 The City will assist developers in gaInmg funding for the development of affordable housing through the LIHTC program. Investors receive a credit against federal tax owed in return for providing funds to developers to build or renovate housing for low income households. The capital subsidy allows rents to be set at below market rates. The possible tax credits available range from 4 to 9 percent depending on the extent of the project's affordability. C. Other Future Programs The City will semi-annually refer to the State of California, Department of Housing and Community Development's (HCD), Program Directory to expand its potential funding sources and determine the availability of funding. The City also will contact HCD for updates on a semi-annual basis to determine the funding opportunities and the City's potential to take advantage of any appropriate programs. The City will annually communicate the results of these steps with the County of San Diego Department of Housing and Community Development and the development community, both private and non-profits. Implementing Agencies: State Tax Allocation Committee, County of San Diego Department of Housing and Community Development, City of Lemon Grove Community Development Department. Funding Source: CDBG, HOME, and California Tax Credit Allocation Committee and others as the Directory may suggest. Schedule: Ongoing and specifically when funding opportunities are identified as part of the programs that are identified in Program 4 and above and their submittal deadline requirements. Program 6: Lemon Grove Redevelopment Project Program Description The Redevelopment Area in Lemon Grove encompasses 618 acres within the City, including the commercial area just south of State Route 94, the commercial area adjacent to Lemon Grove Avenue, and a small commercial area located west of Skyline Drive. Although primarily commercial in its land use, the redevelopment area also incorporates residential and industrial uses. Included in the redevelopment plan's goals are the encouragement of the development of residential, commercial, and industrial environments which positively relate to adjacent land uses and upgrade and stabilize existing land uses; the promotion of the rehabilitation of existing housing stock where appropriate; and the provision of adequate housing to the extent feasible. The City also will use its ministerial processes wherever feasible in order to expedite development and facilitate residential development, especially higher density, affordable housing proposals. As the redevelopment proceeds and developers submit proposals, the City will apply its development review guidelines and standards of the specific plan to the proposed redevelopment area. This process includes the policies and guidelines of the Downtown Specific Plan but does NOT include design review. In this manner, the City will establish assurances between the City and the developers while moving projects forward in a timely manner and insuring residential development that is consistent with both the Downtown Specific Plan (STA I) and the Housing Element. 141 With the adoption of the Downtown Village Specific Plan for the Special Treatment Area (STA) 1 area, the City now has the capacity to develop between 500 and 700 additional housing units within the next 2 to 25 years. The Main Street Promenade area within STA 1 potentially could be developed during this Housing Element cycle and would yield approximately 249 new housing units. The City's largest vacant parcel on the southwest corner of the City is expected to be developed during this Housing Element cycle and would yield an additional 78 housing units. The Redevelopment Area includes four Special Treatment Areas (STAs): I, the Downtown Village; II, the Massachusetts Station; IV, the West Central Avenue Residential; and VIII, the East Central Avenue. The only area at this point for which the City has a specific plan is the Downtown Village which contains the traditional downtown commercial district located near Broadway and Lemon. Grove Ave. It is planned for a mix of retail, office, and residential uses, all of which are to be supported by a variety of transportatfon options. This site meets the Regional Comprehensive Plan's criteria and definition of a smart growth focus area and also falls well within the concepts of transit oriented development. The City estimates that a total of up to 800 housing units could be privately and/or publicly constructed over the 40-year duration of the specific plan for STA I. Based upon this forecast, the City will analyze and address the application of an inclusionary requirement within STA 1 to produce 72 affordable units, 29 of which must be available to very low income households during the 2005-2010 Housing Element cycle. • Redevelopment law requires that whenever dwelling units housing low and moderate income households are destroyed as part of a redevelopment project, the Agency is responsible for ensuring that an equivalent number of replacement units are constructed or substantially rehabilitated. These units must provide at least the same number of bedrooms destroyed, and at least 75% of the replacement units must be affordable to the same income categories (i.e. very low, low, and moderate) as those removed. The Agency receives a full credit for replacement units created inside or outside the Project Area. The City expects to have $928,000 in the Redevelopment Agency's Housing Fund (20% set aside funds) at the end of fiscal year 2005. In addition to the housing fund, the City bonded against future tax increment. The housing portion of the bond proceeds is $2,088,802. The Agency's five year implementation plan calls for the expenditure of $3,000,000 to assist with the production of housing units for low-and moderate-income residents. Primarily, the Agency plans to use its Housing Set-Aside funds for infrastructure improvements (sewer main expansion, circulation improvements, and other residential amenities, such as park and recreation, pedestrian ways, landscaping, etc.) required to accommodate the development of housing units in the Downtown area. The Agency also may consider loans or grants for the new construction of housing units. The Agency is exploring housing rehabilitation programs for residential units outside of the Redevelopment Project Area. Implementing Agency: lemon Grove Community Development Department and redevelopment Agency. Funding Source: Redevelopment Agency Housing Set-aside Funds, CDBG. 142 Schedule: Included in 5-Year Implementation Plan for Redevelopment and 10-Year Affordable Housing Compliance Plan for Redevelopment. Program 7: Reduce Governmental Constraints to Provision of Housing Program Description State law requires that housing elements address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing. The City's zoning ordinance includes a variety of density ranges that provide opportunities for housing to be built for all income levels. Although constraints to the provision of housing in Lemon Grove are minimal, the City will continue to take the following steps: • The City will address the impediments to affordable housing as identified in the San Diego Regional Analysis of Impediments: density bonus (see above); CUP requirements for multi-family housing, explicit provisions for mobile homes, manufactured housing, transitional housing and emergency shelters; and ADA compliance (within 12 months of adoption of the Housing Element). • The City will continue to monitor its development process and zoning regulations to identify and remove other constraints to the development of housing, as appropriate (ongoing and specifically within 12-24 months of the adoption of the Housing Element). • The CiW will continue to provide flexibility in the assessment of development fees to facilitate affordable housing, including reduced fees for provision of affordable housing (ongoing and specifically within 12-24 months of the adoption of the Housing Element). • The City will continue to minimize project holding costs on affordable housing developments and establish priority review processing for affordable housing projects (ongoing). • The City will propose specific development standards for multifamily housing and propose an amendment to ministerially process multifamily housing development permits within two' years of the adoption of the Housing Element. • The City will establish a formal reasonable accommodations procedure to allow waivers of . various development standards when providing housing for persons with disabilities in residential zones within two years of the adoption of the Housing Element. In addition, the City provides, and will continue to provide, incentives to developers of affordable housing. These incentives include, but are not limited to, expedited processing, density bonuses, and capital improvements. Implementing Agency: Lemon Grove Community Development Department. Funding Source: City of Lemon Grove General Fund. Schedule: Ongoing and see specific item schedules. 143 CONSERVE AND IMPROVE EXISTING AFFORDABLE HOUSING Program 8: Nonconforming Units Program Description The City of Lemon Grove Development Code provides for the reconstruction of substantially destroyed nonconforming residential buildings and uses located in residential zones. Section 17.24.090F-I (Nonconforming Uses) of the Development Code provides for the issuance of Reconstruction Permits to allow the restoration of substantially damaged or destroyed residential units. The City will continue to implement this provision of the Development Code. Implementing Agency: Lemon Grove Community Development Department. Schedule: Ongoing. Program 9: Section 8 Housing Choice Vouchers Program Description The City will continue to coordinate with the Housing Authority of San Diego County who will continue to administer the Section 8 Housing Choice Voucher Program and will support the County's applications for additional Section 8 allocations. This program provides rental assistance to eligible very low and low income households. The subsidy represents the difference between the rent that exceeds 30 percent of a household's monthly income and the actual rent charged. Currently 466 Lemon Grove residents are receiving Section 8 vouchers. It is unlikely that these figures will increase; and, in fact, the City, and the County, will be fortunate to avoid dramatic reductions. Recent indications from the United States Department of Housing and Urban Development (HUD) are that federal support for Section 8 will not be expanded and that program retrenchment is likely over the next four years. The City will make the information available at its City Hall where the Community Development Department is located. It also will provide periodic reminders and updates through City wide information dissemination venues (web site and mail outs, notices, etc.). In addition to these steps, the City will work with the County to insure that the County marketing efforts include outreach to the residents of Lemon Grove. Implementing Agencies: The County of San Diego Department of Housing and Community Development. Funding Source: U.S. Department of Housing and Urban Development. Schedule: Ongoing. Program 10: Condominium Conversions Program Description 144 The City will explore changes to its current condominium conversion policies and ordinances based upon the existing and projected market conditions. This work will evaluate current policies and ordinances regarding: the zones within which conversions are requested; conditions for approval of conversions; in lieu fee options; the availability of affordable units/relocation assistance; and the inclusion of provisions that prohibit the conversion of non-conforming residential units in commercial districts. Funding Source: City of Lemon Grove General Fund. Schedule: Within 24 months from date of Housing Element adoption. Program 11: County of San Diego Home Repair Loan Program Programs Program Description Grants: Grants of up to $8,000 are available to low income seniors and disabled mobile home owners to repair their mobile homes. Deferred Loans: The County of San Diego, Department of Housing and Community Development, in conjunction with the City of Lemon Grove offers the Home Repair Loan Program for Owner- Occupied Property that provides loans for the repair of owner-occupied homes. The City will continue to advertise the Housing Authority of the County of San Diego's Residential Rehabilitation Assistance Program. This program offers low-interest home improvement loans to eligible homeowner occupants. To be eligible to receive this loan, the applicant's family income must be below eighty percent (80%) of San Diego County's median income adjusted for family size. Deferred loans are offered at three percent simple interest and calculated annually on the unpaid principal. The total amount borrowed must be repaid when the property changes hands or the recipient moves from the property. Owners may borrow up to $25,000 for a single-family home or $8,000 for a mobile home. This program assists single-family homeowners or mobile home owners. You must live in the residence you would like to repair. The amount of the loan is determined by the actual cost of rehabilitating the property as well as the borrower's ability to repay the loan. The entire loan balance, principal and interest, may be amortized for a maximum of 15 years and is paid in monthly installments. Minor Rehabilitation and Home Security Program: This program provides free minor rehabilitation and home security improvements for lower income households. This program is available through Lutheran Social Services and Labor's Community Service Agency. As the City's housing stock ages, the need for housing rehabilitation to preserve neighborhood quality will continue to increase. Therefore, the City will continue to promote. these rehabilitation programs. These programs could be used as a standby should the increase in property values slow up and/or interest rates increase. The City will make the information available about these programs at its City Hall where the Community Development Department also is located. It also will provide periodic reminders and updates through City wide information dissemination venues (web site and mail outs, notices, etc.). In addition to these steps, the City will work with the County to insure that the County marketing efforts include outreach to the residents of Lemon Grove. 145 Implementing Agencies: County of San Diego Department of Housing and Community Development and the City of Lemon Grove Community Development Department. Funding Source: County of San Diego Department of Housing and Community Development. Schedule: Ongoing. Program 12: County of San Diego Home Improvement Program for Rental Property Program Description The City will continue to advertise the Housing Authority of the County of San Diego's Home Improvement Program for Rental Property. This program offers zero interest-deferred loans to assist the owners of rental properties with rehabilitation costs. The purpose of this program is to rehabilitate rental units that do not meet federal housing quality standards in order to increase the availability of affordable housing for low income households. Applicants must own property with one or more buildings on a single site, under common ownership, management, and financing. Scattered site projects qualify if they are within four City blocks distance of each other. There is no limit to the number of units in each project. To qualify, rent restrictions must be applied to the property for ten years after the time of the loan. Rents must be fixed so that the rent on 80 percent of the units does not exceed the lesser of: a) fair market rents for comparable units; orb) 30 percent of the adjusted income ·of a family at 65 percent median income for the area, adjusted for the number of bedrooms in the unit. The remaining 20 percent of the units must not have rents that exceed the lesser of: a) fair market rent for comparable units; or b) 30 percent of the adjusted income of a family at 50 percent median income for the area, adjusted for the number of bedrooms in the unit. At least 20 percent of the assisted units must be occupied by very low income tenants. Not less than 80 percent of the assisted units in each project must be occupied by low income tenants. As the City's housing stock ages, the need for housing rehabilitation to preserve neighborhood quality will continue to increase. Therefore, the City should continue to promote the rehabilitation programs but will administer the program. This program could be used as a standby should the increase in property values slow up and/or interest rates increase. The City will make the information available at its City Hall where the Community Development Department also is located. It also will provide periodic reminders and updates through City wide information dissemination venues (web site and mail outs, notices, etc.). In addition to these steps, the City will work with the County to insure that the County marketing efforts include outreach to the residents of Lemon Grove. Implementing Agencies: The County of San Diego Department of Housing and Community Development. Funding Source: County of San Diego Department of Housing and Community Development. 146 Schedule: Ongoing. Program 13: Preservation of Affordable Housing Units "At Risk" of Converting to Market Rates Program Description The City will monitor affordable housing units that are "at risk" of converting to market rates during the housing element cycle, and consider measures to preserve their affordability prior to expiration of affordability contracts. These measures will include the purchase of affordability contracts, working with non-profit housing organizations to preserve affordability, coordination with the County Department of Housing and Community Development, securing continued subsidies and /or committing available housing set-aside monies from redevelopment. Table 38 Affordable Housing Units "At-Risk" of Converting to Market Rate Lemon Grove, 2005 Name Address 3208-14 Viazaga Apartments Massachusetts Ave. Number of Units 8 units Monitoring Agencv County of San Diego Source: City of Lemon Grove Community Development Department Potential Date of Subsidy Termination Jan.2007 Implementing Agencies: City of Lemon Grove Community Development, Nonprofit Developers. Funding Source: City of Lemon Grove General Fund. Schedule: Within the first year of the Housing Element ADEQUATE HOUSING SITES Program 14: Maintain Residential Site Inventory Program Description In addition to programs implemented by the City to encourage affordable housing development, the City inventories vacant, redevelopment and infill land to identify suitable sites for residential development (with an emphasis on multi-family use). The City updated its inventory of the available sites for residential development as part of the 2005-2010 Housing Element process and will continue to provide it to prospective residential developers in the community. 147 The City also updates its land development inventory every five years as part of the SANDAG regional growth process. It just completed (Spring 2005) its inputs for the next forecast and conducted a prior input for the 2030 forecasts at the beginning of the 1999-2004 Housing Element cycle. The City will continue to monito'r its land inventory, especially residential land available for development as well as commercial and redevelopment lands that may be suitable for residential development. Specifically, the City will continue to identify potential sites for their potential as "Smart growth Opportunity Areas" as defined by the Regional Comprehensive Plan and specific sites to meet the state requirements for regional share and affordable housing (see Appendix B). Implementing Agency: City of Lemon Grove Community Development Department. Funding Source: City of Lemon Grove General Fund. Schedule: Ongoing. Program 15: Facilitate Development of Higher Density Housing Program Description In an urbanized area like Lemon Grove, land costs represent the greatest cost component in both multi-and single family development projects. One way to lower the cost of land per unit is to allow a greater number of units per acre of land (increase residential density) in selected areas. Increased density generally results in a lower land cost per unit and greater unit affordability. As a means of reducing residential land costs, the City will encourage minimum densities in selected areas, especially as part of the redevelopment planning process. The City will continue to support the application of this program to STA 1 and consider its potential application as it prepares the Specific Plans for future STA's while ensuring development standards are met and community character is maintained. As part of the project review process, planning staff will work with applicants to achieve the residential density permitted in the Specific Plan. Specifically the City has established minimum densities of 43 units to the acre, well above the accepted thresholds for densities with the potential for affordable housing, as part of its Downtown Village Specific Plan (DVSP). The unit yield for DVSP will by itself enable the City to exceed its total regional share need as well to meet its quantified objectives for new construction. With the recent City Council approval of the Specific Plan for the Downtown Village and certification of the EIR, the City will now begin earnest negotiations with the development community to gain a commitment to construction. The City has adopted not only minimum densities at a high density level but it has also established development standards that facilitate higher densities, including reduced parking standards for the nearby transit services (Trolley Station). This approach will be continued as the City moves forward with its other redevelopment projects where it is appropriate (projects with a residential component). Implementing Agency: City of Lemon Grove Community Development Department and Redevelopment Agency. Funding Source: City of Lemon Grove General Fund. 148 Schedule: Ongoing and as part of the City's redevelopment schedule and processes. Program 16: Identify Sites for Homeless Shelters/Transitional Housing Program Description State law requires that cities identify sites that are adequately zoned for the placement of homeless shelters and transitional housing. Additionally, they must not unduly discourage or deter these uses. The City will conduct analysis to consider the necessary changes to its zoning ordinance to add homeless shelters and transitional housing into the residential definitions and to consider the removal of the discretionary review process for homeless shelters and transitional housing. In addition, the City of Lemon Grove, in conjunction with other East County jurisdictions, proposes to continue participation in the Regional Task Force on the Homeless. The City will consider participating in a voucher program, administered by the County that will provide motel accommodations for seniors, families with children and disabled persons. The City also will consider participating in an effort to fund a cold weather shelter in the East County for those who would not have met the voucher criteria. As stated in Program 7, the City will address the impediments to affordable housing as identified in the San Diego Regional Analysis of Impediments, especially regarding adding explicit provisions for mobile homes, manufactured housing, transitional housing and emergency shelters to the City residential codes within 12 months of adoption of the Housing Element. This program will ensure that zoning, development standards and permit procedures will encourage and facilitate the development, maintenance and improvement of emergency shelters and transitional housing. Implementing Agency: City of Lemon Grove Community Development Department. Funding Source: City of Lemon Grove General Fund. Schedule: Within 24 months from date of Housing Element adoption. Program 17: Second Dwelling Units Program Description The City amended its accessory unit ordinance to comply with State law and now allows second dwelling units in any residential area. The process was revised so that second dwelling units no longer require special use permits but are processed through the building permit requirements (moving the process from a discretionary action to a ministerial action). The City will make promotional information available about the Second Dwelling Unit program at its City Hall where the Community Development Department also is located. It also will provide periodic reminders and updates through City wide information dissemination venues (web site and 149 '' ' mail outs, notices, etc.). In addition to these steps, the City will work with the County to insure that the County marketing efforts include outreach to the residents of Lemon Grove. Implementing Agency: City of Lemon Grove Community Development Department. Funding Source: City of Lemon Grove General Fund. Schedule: Ongoing; Promotional materials will be developed within 6-12 months of the adoption of the Housing Element; and an assessment of the effectiveness of the program will be conducted during the second year of the Housing Element. Program 18: Special Treatment Areas (STAs) A. Specific Plan for Special Treatment Area I (STA I}, Downtown Village Program Description Special Treatment Area I (STA I), Downtown Village, is located within the City's Redevelopment Area surrounding the intersection of Lemon Grove Avenue and Broadway, including the Lemon Grove Depot Trolley Station. STA I is expected to include mixed-use development featuring commercial, office, and multi-family residential land uses, with opportunities for mixed use and high density and affordable housing. The City is now considering a Specific Plan for ST A I to determine appropriate land use distribution, including a minimum density yield of up to 800 units. Implementing Agency: City of Lemon Grove Community Development Department and the Redevelopment Agency. Funding Source: General Fund, Lemon Grove Redevelopment Project, and CDBG. Schedule: Specific Plan was adopted in May, 2005 and will be implemented over a 10-15 year period. B. Special Treatment Area II (STA II), Massachusetts Station Program Description STA 11, Massachusetts Station, is planned to be a neighborhood residential and commercial mixed- use center adjacent to the Massachusetts Avenue Trolley Station. The residential component will consist of condominiums and/or apartments, including affordable units. Development in ST A II will not exceed the existing densities. Implementing Agency: City of Lemon Grove Community Development Department Funding Source: General Fund. Schedule: Ongoing. 150 C. Special Treatment Area IV (STA IV), West Central Avenue Residential Program Description STA IV, West Central Avenue Residential, located near the intersection of College Avenue and Federal Boulevard is intended for new, residential development consistent with surrounding development. Implementing Agency: City of Lemon Grove Community Development Department Funding Source: General Fund. Schedule: Ongoing. 0. Special Treatment Area VIII (STA VIII), Eastern Central Avenue Program Description STA VIII, Eastern Central Avenue, allows for residential development of up to 29 dwelling units per acre and building heights of two stories. Implementing Agency: City of Lemon Grove Community Development Department Funding Source: General Fund. Schedule: Ongoing. INCREASE HOMEOWNERSHIP OPPORTUNITIES Program 19: Mortgage Credit Certificate (MCC) Program Description Homeownership can be a key to maintaining a healthy community. The San Diego Regional Mortgage Credit Certificate Program, which is administered by the County of San. Diego, allows qualified first-time homebuyers to reduce their federal income tax by up to 15% of the annual interest paid on a mortgage loan. With less being paid in taxes, the homebuyer's net earnings increase, enabling him/her to more easily qualify for a mortgage loan. The MCC may only be used to purchase single-family detached homes, condominiums, townhouses, or owner-occupied duplexes. The City of Lemon Grove will continue to distribute information on the MCC program. The City will make the information available at its City Hall as well as the Community Development Department. It also will provide periodic reminders and updates through City wide information dissemination venues (web site and mail outs, notices, etc.). In addition to these steps, the City will work with the County to insure that the County marketing efforts include outreach to the residents of Lemon Grove. 151 • I MCC Max. Purchase Price House Resale New MCC Income Eligibility Limits Family Size 1-2 Persons 3+ Persons Non Targeted $389,138 $418,672 $68,500 $78,775 Targeted $475,614 $511,710 $82,200 $95,900 Implementing Agencies: County of San Diego Department of Housing and Community Development. Funding Source: California Debt Limit Allocation Committee (CDLAC). Schedule: Ongoing. Program 20: County of San Diego Down Payment and Closing Cost Assistance.Program (DCCA) Program Description The County of San Diego offers low-interest deferred payment loans of up to $70,000 for low- income first-time homebuyers. The loan funds may be used to pay down payment and closing costs on the purchase of a new or re-sale home. Although the home may be a single-family home, a condominium, or a townhouse, its appraised value may not exceed $422,750. Eligible household's annual gross income must be at or below 80% of San Diego's AMI. The City will continue to provide information to prospective homebuyers about the County of San Diego's DCCA program. Implementing Agencies: County of San Diego Department of Housing and Community Development. Funding Source: County of San Diego Department of Housing and Community Development. Schedule: Ongoing. Program 21: California Housing Finance Agency (Cal HFA) Down Payment Assistance Program 152 '' Program Description The City will continue to provide information to prospective homebuyers about CalHFA's Down Payment Assistance Program (CHAP). This Program is designed to provide up to 100% of the financing needs of prospective eligible first-time homebuyers purchasing a home utilizing an FHA insured loan. It generally consists of a standard FHA CalHFA fixed-rate 30-year mortgage (at CalHFA's published below-market interest rate at the time the loan is reserved) and a 3% CalHFA down payment assistance second mortgage, which is also called a "sleeping" second. Borrowers can use additional down payment funds; however, the total maximum loan(s)-to-value cannot exceed 100%. The CHAP loan is subordinate to a CalHFA first loan, making it a second mortgage. The second mortgage is offered for 30 years at 7% simple interest. All payments are deferred on this second mortgage until one of the following happens: the CalHFA first mortgage becomes due and payable; the first mortgage is paid in full or refinanced; or, the property is sold. AreaType *Non Targeted*Targeted Resale New $481,139 $486,465 $588,059 $594,569 Implementing Agencies: City of Lemon Grove Community Development Department, Cal HFA. Funding Source: Cal HFA School Fee Down Payment Assistance Program. Schedule: Ongoing. PROMOTE EQUAL HOUSING OPPORTUNITIES Program 22: Participate in the Fair Housing Council of San Diego's (FHCSD) Fair Housing Program Program Description The City of Lemon Grove supports fair housing laws and statutes. To promote equal opportunity, the City participates in the Fair Housing Council of San Diego's (FHCSD) Fair Housing Program. The City distributes the FHCSD's information on fair housing, and refers fair housing questions and housing discrimination claims to the FHCSD. The FHCSD will: 1. Advocate for fair housing issues; 2. Conduct outreach and education; 3. Provide technical assistance and training for property owners and managers; 4. Coordinate fair housing efforts; 5. Assist to enforce fair housing rights; 6. Collaborate with other fair housing agencies; 153 t 1 '), 7. Refer and inform for non-fair housing problems; and, 8. Counsel and educate tenants and landlords. Additionally, as part of the CDBG process, the City will explore additional opportunities to enhance fair housing in the City (for example as a potential part of a FHCSD marketing campaign when the STA I units are available for sale and rent and as part of the City's overall fair housing activities associated with all residential developments). The City will make the information available at its City Hall as well as the Community Development Department. It also will provide periodic reminders and updates through City wide information dissemination venues (web site and mail outs, notices, etc.). In addition to these steps, the City will work with the FHCSD to insure that its marketing efforts include outreach to the residents of Lemon Grove. Implementing Agencies: City of Lemon Grove Community Development Department, Fair Housing Council of San Diego. Funding Source: City of Lemon Grove General Fund, CDBG, and Fair Housing Council of San Diego. Schedule: Ongoing. 154