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HomeMy WebLinkAbout1979-05-15; City Council; 5700-1; Affirmative Fair Housing Marketing PlanCITY OF CARLSBAD Initial AGENDA BILL NO: 3-1700- Dept. Hd. a Cty. Atty DATE: Mav �5, 1479 - Cty. Mgr. DEPARTMENT: Redevelopment SUBJECT: AFFIRMATIVE FAIR HOUSING MARKETING PLAN Statement of the Matter At its meeting of December 19 , 1978, Council instructed staff to prepare documents which would bring the City into compliance with existing federal guidelines on Affirmative Marketing. The Redevelopment Coordinator has completed his research into the above noted subject. Based on the attached report, there is a set of require- ments that the City must follow prior to implementation and administration of its own local AFHMP. The City must adopt an AFHMP and request the Fair Employment Practice Commission to enter into a Memorandum of Understanding which would allow the City to administer its own AFHMP. EXHIBITS Ass stant Redevelopment Coordinator's Memorandum, dated April 20, 1979. RECOMMENDATION , That Council should adopt Resolution No. r 77,3 establishing an Affir- mative Fair Housing Marketing Plan, and instruct staff to initiate a Memorandum of Understanding with California State Fair Employment Practice Commission. JH:jd 4/20/79 Council Action: 5-15-79 Council adopted Resolution 5773, establishing an Affirmative Fair Housing Marketing Plan, and instructed staff to initiate a Memorandum of Understanding with California State Fair Employment Practice Commission. MEMORANDUM DATE: April 18, 1979 TO: Paul Bussey, City Manager VIA: .Tack E. Henthorn, Redevelopment Coordinator FROM: Drew Aitken, Assistant Redevelopment Coordinator SUBJECT: AFFIRMATIVE FAIR HOUSING MARKETING PLAN BACKGROUND At its meeting of December 19, 1978, Cout:il voted to pursue local administration of Affirmative Fair housing Marketing Plan. In telephone conversations during the week of April 9, 1979, I spoke with representatives of the State Fair Employment Practice Commission, HUD, and the Equal Opportunity Management Office of the County of San Diego about the procedures that the City of Carlsbad must follow in order to administer its own AFHMP. According to the information received from all parties, the following steps must be completed, prior to implementation of a locally administered AFHMP. The first step in the process is for the Council to adopt an AFHMP by resolution (Attachment A). Next, the resolution and the plan shall accompany a request to be sub- mitted to the California Fair Employment Practice Commission for a Memorandum of Understanding (Attachment B) to be entered into between the Fair Employment Practice Commission and the City of Carlsbad in order to comply with HUD regulations pertaining to the HCD Block Grant program. (See attached Memorandum from Redevelop- ment Coordinator 12-12-78 (Attachment CH. After the MOU is executed the City will have the authority to implement and administer to its own AFHMP. AFHMP PROCEDURES: Under the terms of the plan proposed (Attachment D), when an applicant applies to the City for any building or special use permits or a final building inspection, they shall file with the City an Affirmative Fair mousing Marketing Plan. The City shall review the applicant's plans using the guidelines established by the Division of Fair Employment Practices of the Department of Industrial Relations of the State of California. If the applicant's plans are approved, they are submitted to the California Fair Employment Practice Commission for ratification. The City shall have the responsibility to monitor and review the applicant's compliance with the Affirmative Fair Housing Marketing Plan of the applicants that was previously approved. This is to ensure that the applicant is carrying out his AFHMP. The applicant will submit a monthly progress report to the City. The City will then submit a report, which shall be comprised of the reports received from the applicants to the California Fair Employment Practice Commission. ANALYSIS: The City of Carlsbad's Affirmative lousing Marketing Plan is designed to attract buyers and tenants of all ethnic groups and genders to housing for initial sale or rental. The City's AFHMP is structured after the County's plan which has already been approved by both HUD and the Fair Employment Practice Commission. The City's plan has built into its implementation, the flexibility to provide applicants with simplicity in processing their AFHMP. For example, it is anticipated that the City will become participants in the HUD/BCA agreements, which provides BCA with the authority to implement Affirmative Fair housing Marketing Plans for local builders and developers. This service is provided to both members and non-members of BCA. As a participant in the HUD/BCA agreement the City may encourage applicants to become signatories with BCA. I14PACT There is a two -fold benefit in utilizing the resources at BCA, a) It appears to be less bureaucratic and more convenient overall for the private developer and bl It streamlines the administration of the process for the City in that BCA will provide the applicant's monthly progress reports to the City. No additional costs are anticipated and no additional personnel required to administer this program. RECOMMENDATION: It is recommended that the AFHMP be forwarded to Council for their adoption, and that we request Council to enter into a Memorandum of Understanding with FEPC to administer AF11MP. Furthermore, it is recommended that Council, via resolution, become participants in with the Building Contractor Association and HUD agreement. AA:jd 4/20/79 A Ai 1 RESOLUTION NO. 6773 CITY OF CARLSBAD RESOLUTION ESTABLISHING AN AFFIRMATIVE FAIR HOUSING MARKETING PLAN 4 RL;SCLVED by the City Council of the City of Carlsbad, State 5 of California; that 6 WHEREAS, the California Fair Employment Pxactice Commission, 7 pursuant to authority contained in State of California Memorandum, 8 subject: Affirmative Fair Housing Marketing Guidelines, adopted 9 June 2, 1977, may, at its discretion, enter into a Memorandum 10 of Understanding with the County of San Diego to jointly admin- 11 ister an Affirmative Fair Housing Marketing Plan within *.he City 12 of Carlsbad; and 13 WHEREAS, it is the determination of this Council that it 14 is in the best interests of the City of Carlsbad to be a party 15 to such Memorandum of Understanding with the California Fair 16 Employment Practice Commission; and 17' WHEREAS, it is necessary for this Council to adopt rules, 18 regulations and administrative processes in order to implement 19 I an Affirmative Fair Housing Marketing Plan and thus enter into 20 such a Memorandum of Understanding; and 21 WHEREAS, it is the desire of this Council to set forth the 22 conditions under which certain sponsors/developers are exempted 23 from compliance with the Affirmative Fair Housing Marketing Plan; 24 and 25 WHEREAS, it is the%desir.F of this Council to set forth the 26 conditions under which certain sponsors/developers are exempted 27 from compliance with the Affirmative Fair Housing Marketing Plan; 28 and ' -1- Attachment "A" I 1 2. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2C 2] 2F 2% 24 25 26 27 28 WHEREAS, it is the concern of this Council that quality housing be available to its citizens; and. WHEREAS, there is need to reestablish the concept of an open community wherein persons are free to live where they choose irrespective of race, color, religion, national origin, ancestry, sex or marital status; and WHEREAS, the Council acknowledges the need to take affirma- tive action to expand the opportunities of all peoples to live where they choose; and WHEREAS, the Council desires to reaffirm the City's commit- ment to take affiramtive action to provide a balanced community environment for its citizens; NOW, THEREFORE, IT IS RESOLVED, ORDERED AND DECLARED that the attached Exhibit A which sets forth rules, regulations and administrative processes of the Affirmative Fair Housing'Marketing Plan (AFHMP) is hereby approved and adopted by this Council. PASSED, ADOPTED AND APPROVED by the City Council of the City of Carlsbad, State of California, this 15th day of _PLY. 1979, by the following vote: AYES: Councilmen Packard, Skotnicki, Anear, Lewis and IIII Councilwoman Casler 11. NOES: None ABSENT: None RONALD C. PACKARD, Mayor AIT"11A L. RAUTENKRANZ, �yC (SEAL) i Ma 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 181 19 20 21 22 23 24 25 26 27 28 Exty" it A to Res,tion 5773 MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding, made and entered into , by and between the this California Fair Employment Practice Commission (hereinafter calle( the Commission), the Division of Fair Employment Practices of the Department of Industrial Relations of the State of California (hereinafter called the Division), as parties of the First Part, AND the City of Carlsbad, California thereinafter called the City)► Party of the Second Part. WHEREAS, the California Fair Housing Law, Part 5 (commending with Section 35700) of Division 24 of the Health and Safety Code (hereinafter called the Fair Housing Law) prohibits discriminatie on the basis of race, color, religion, sex, marital status, national origin, or ancestry in housing accommodations. WHEREAS, the Commission and the Division are empowered by Labor Code Section 1419.5 to prevent discrimination in housing as provided in Part 5 commencing with Section 35700 of Division 24 of the Health and Safety Code. WHEREAS, Health and Safety Code Section 35730.6(d) authoriz the Division to obtain upon request and utilize the services of all governmental departments and agencies and conciliation -1- Attachment "S" 1. councils, the Division wishes to exercise that authority. -Labor 2 Code Section 1419.7 empowers the Division to provide assistance 3 to communities and persons in resolving disputes, disagreements 4 or difficulties relating to discriminatory practices which 5 impair the rights of persons in such communities under the 6 constitution or laws of the United States or of the Sta' of 7 California. Such assistance shall consist of endeavors at 8 conference, conciliation, and 'persuasion. 9 WHEREAS, the Commission wishes to designate the City as an 10 advisory agency and conciliation council with the limited charge 11 of implementing a program to further the purposes of the Fair 12 Housing Law in the area of Affirmative Fair Housing Marketing. 13 WHEREAS, the Commission has promulgated guidelines in the 14 area of Affirmative Fair Housing Marketing. 15 16 NOW, THEREFORE, THIS MEMORANDUM OF UNDERSTANDING 17' WITNESSETH THAT: 18 1. The Commission, the Division, and the City agree to 19 establish a program which will provide for a combination of 20 efforts between the Commission, the Division, and the City in 21 order to eliminate discrimination in housing within the City. 22 The Office of Contract Compliance or other entity authorized by 23 the City shall act as the laison between the Commission, the 24 Division, and the City. 25 2. The Contract Compliance Coordinator or other duly authorized 26 person charged by the City with the administration of the 27 Affirmative Housing Marketing Plan -(hereinafter referred to as 28I Authorized Agent) shall be charged with the responsibility of -2- 1 carrying out the duties of the City in the implementation of this 2 program. 3 3. The authorized agent shall, under this agreement, be 41 charged with the following duties and responsibilities: 51 A. The authorized agent shall accept for purposes of •61 review, evaluation, and approval all Affirmative Fair 7 Housing Marketing Plans nereinafter referred to as Plans) 8 which are submitted to the City for approval. 9 B. • The authorized agent shall develop a program of 10 evaluation which entails the standards and requirements set 11 out by the Commission in its Guidelines. 12 C. The authorized agent shall review all plans and approve 13 or disapprove such plans. 14 D. The authorized agent shall maintain a record of all 15 plans submitted to it and the outcome of its determination 16 as to the adequacy of the plan. 17 E. The authorized agent shall submit to the Commission 1s plans which such entity has approved for the purpose of 19 Commission ratification of the authorized agent's determina- 20 tion. 21 F. The Commission shall ratify or disapprove the authorize 22 agent's determination as provided for in the Commission's 23 guidelines on Affirmative Fair Housing Marketing. 24 G. When a plan is disapproved by the authorized agent 25 such plan shall be submitted to the Commission with a 20 recommendation and report. The Commission may, at its 27 discretion, refer the matter to the Chief of the Division, 28 and request that the Chief of a duly authorized represen- -3- 1 tative engage in persuasion and conciliation with the rele- 2 want parties, pursuant to section 1419.7 of the Labor 3 Code. The Chief of the Division may also undertake any 4 other action he or she deems appropriate. 5 H. After a plan is deemed approved by the Commission, the 6 authorized agent shall'have primary responsibility for 7 monitoring and conducting reviews of compliance with the 8 approved plan. The authorized agent shall provide the 9 Commission with a report of such reviews as set forth in the 10 Guidelines on Affirmative Fair Housing Marketing. 11 I. If the authorized agent finds that there has not been 12 compliance with the approved plan, the authorized agent 13 shall refer the matter to the Commission for further action 14 as provided for in the Guidelines. The Commission may, at 15 its discretion, refer the matter to the Chief of the Divisi'o , 16 and request that the Chief or a duly authorized represen 17 tative engage in the process of conference, persuasion, and 18 conciliation with the relevant parties, pursuant to Section 19 1419.7 of the Labor Code. 20 J. once the first sales, rentals or leases of all the 21 relevant units of a particular plan are completed, the 22 authorized agent shall submit to the Commission a report 28 on such sales, rentals, or leases and compliance with the 24 plan. 25 K. This Memorandum of Understanding shall be revocable by 26 the Commission and the Division at their discretion. 27 28 -4- 1 IN WITNESS WHEREOF, the parties hereto have caused this 2 Memorandum of Understanding to be executed by their duly 3 authorized officers, the day and year first written It above. 5 6 7 8 FAIR EMPLOYMENT PRACTICE COMMISSION 9 10 11 12 13 Chief, DIVISION OF FAIR EMPLOYMENT PRACTIC•S 14 15 16 f 17 CITY OF CARLSBAD 18 19 20 21 22 23 24 -5- 25 26 27 28 Memorandum Date: December 12, 1978 To: Paul Bussey, City Manager From: Jack flenthorn, Redevelopment Coordinator Subject: Affirmative Fair Housing Marketing Plaa At it's meeting of December 5, 1978, Council was advised of the County': policy requiring that I1ousing and Community Development Block Grant recipients comply with the County's Affirmative Fair Housing Marketing Plan, or formulate a similar plan for local administration. On December 8, 1978, I met with a represeiitative of the Contract Compliance office to discuss the AFIIMP and it's impact upon the city's development review process. Of primary concern was whether or not a less complex system could be utilized to merit the combined requiremants of the Federal, State and County levels. Historical Perspective In 1972, as a condition of receiving funds from the Federal Department of Housing and Urban Developmen, the County prepared documents which would insure affirmative marketing of housing. In 1974 a program was adopted to ensure receipt of HCD funds. It was subsequently found that the State pre-empts local entry into this area through the Rumford Act and specifically reserves sanction activity for itself. On January 12, 1977, the State Fair Employment Practices Comission found the County in violation of State statute. This put the County into the position of having a document which was acceptable to the Federal Government, but deemed 'o violate State statute. In turn, the County could not, by Federal regulations, pass responsibility onto the State. The County subsequently petitioned the State for permission to administer an AFHMP for purposes of obtaining Federal funding This gave rise to a City of San Diego/County/Building Contractor's Association/IIUD/State of California dialogue. As a result of this effort a cooperative venture between government and builders was developed which enables funding to be received 'through an AFHM program based upon advertising and education. Attachment "C" PURPOSE Builders utilizing any type of Federal'or State funding are currently required to meet the requirements outlined in the County's document. The effect of the AFHMP is basically to ensure that conventional developers undertake efforts to promote their projects to all segments of the population. It is important to note that neither the City nor the County can exercise any sanctions against developers who do not comply with the AFHMP. in fact, this total area is reserved to the State. IMPACT Although the packet forwarded is rather voluminous, when the process was explained by the County staff it appeared rather simple. The filing process entails approximately 1 to 3 hours of time dependent upon the size of the project, the existence of demographic data, and the builder/developer's past involve- ment with the process. According to County Staff, most builders are encouraged to process through the Local Building Contractor's Association which will process the development for a fee of less than five dollars per unit. in addition to lowering the.cost to the developer by making their services available, the program reduces the cost to the governmental entity due to BCA's familiarity with the program. CONCLUSION From research to date and the meeting of December 8, 1978, it is concluded that AFHMP is a legitimate requirement relative to IiCD funding. As noted in the Historical Perspective section above, the requirement stems from the original housing and Community Development Act of 1974 and is complicated by State statute. The County staff indicates that the provisions of the AFHMP need apply only to development initiated after adoption of the plan by the City. Therefore, only initial sales of new development would be subject to the provisions of the AFHMP. OPTIONS ANALYSIS The County indicates that in order to meet the HUD/State/County guidelines, the following options are available: (1) Adopt the County AFHMP and contract with the County for administration. (2) Formulate and administer a local program. (3) Withdraw from participation in the Block Grant Program. -2- The County has indicated a willingness.to administer the AFHMP for the City on a cost basis via a mutually approved agreement. At this point in time, the County cannot provide an estimate of costs. In addition, no determination has been made as to whether their cost would include overhead or be made up of direct costs only. Further, the contract approach raises questions of whether or not future changes in the County program would reflect local concerns. This is especially true in terms of the level of informa- tion required to be filed and processing/procedural changes. Local administration of the program would undisputedly ensure local control. of all aspects of the program, including its inclusion as a part of the City's overall Housing Element revision program. In light of recent changes in State Statute, the City is faced with substantially revising its Housing Element to bring it into compliance with recently formulated State HUD guidelines. One portion of the guidelines deals with affirmative action to ensure that housing is available to all segments of the community. The program offered by the County or a model appears to address and meet the state requirement. It appears as though local administration of an AFHMP in conjunction with the Carlsbad Housing Authority's involvement in Section 8 and Section 23 program would provide a fairly comprehensive approach tc meet4ng the new Housing Element requirements. Since the City/Housing authority structure is currently operational the costs associated with administration of a local program should be minimal. In fact, the majority of the costs would in all proba- bility be related to file space and clerical activity associated with filing. The actual processing would be accomplished via form letters and check lists. The third option available is to forego further expenditure of block grant funding. This option would prevent future expenditure of grant funding. Dependent upon the determination of the County this could jeopardize up to $360,000.00 in funding, i.e. yer.rs 3, 4, and s. FINDING The County's insistence that the City adopt ari AFIIMP as a condition of receiving Block Grant funding is supported by existing Federal Regulations. In addition, the State housing element guidelines will require -the City to have a similar program in operation by the end of calendar year 1979. -3- It appears at this time as though the question is not one of whether or not the City is, or will be, required to have an AFHMP, but one of when it will be required to have one operational. RECOMMENDATION If Council desires to continue to receive HCD funding, then it is recommended that staff be directed to prepare documents for adoption and local administration of an AFHMP. i THE CITY OF CARLSBAD AFFIRMATIVE FAIR HOUSING MARKETING PLAN (AFHMP) Part I - General POLICY Citizens of the City of Carlsbad shall be free to live where they choose irrespective of race, color, religion, national origin, ancestry, sex or marital status. OBJECTIVES 1. To promote a condition in which individuals of similar income levels have the same opportunity to obtain housing. 2. To encourage the establishment of racially balanced communities. APPLICABILITY This Affirmative Fair Housing Marketing Plan (hereinai er referred to as AFHMP) shall be applicable to sponsors/developers (hereinafter referred to as Applicants) who apply to the City of Carlsbad for.: 1. Building permits for subdivisions and multi -family projects which will be constructed for the purpose of sale, rental or lease. 2, Special use permits for mobile home parks► planned residential developments, and multi -family residences. NOTE: if ar Applicant contracts marketing responsib Uity to another party through contractual agreement or sale, this AFHMP shall be applicable to such party. The requirements of this AF11MP shall be applicable to the original successors - in -interest of an Applicant: insofar as the first sales, rentals, or leases to the public are concerned. EXEMPTIONS Applicants in the following categories are exempt from the pro- visions of this AF11MP: 1. Those who apply for building permits for a subdivision pro- ject involving less than 20 dwelling, units for sale. 2. Those who apply for building permits for a multi -family Attachment "D" project and/or special use permits for a mobile home park involving .t(-'.ss than 10 dwelling units for rent or lease. 3. Those who apply for building permits for dwellings to be listed as hotels or motels. 4. Those who are or become voluntary signatories to the Depart- ment of Housing and Urban Development/Building Contractors Association (IiUI)/BCA) Affirmative Marketing Agreement. Part II - Procedures APPLICANT SALES, RENTAL AND LEASE INTEGRATION GOALS 1. Sales .integration goals shall be: Minority Integration Goals 20% 15% 1'0% A. Cost of 11ousin Up •to $62, 000 $62,001 to 85,000 $85,001 and over B. Cost of 11ousin Up to $62,noQ $62,001 to 85,000 $85,001 and over White Iritegration Goals - 80% 75% 70% 2. Rental and lease integration goals shall be: For all housing costs 30% minority and 70% white. 3. Integration goals shall be reveiwed annually and adjusted accordingly when there are significant changes in the cost of housing. APPLICANT AFFIRMATIVE FAIR 11OUSING MARKETING PLAN (AF11MP) Each applicant shall submit an hffirmative Fair Housing Marketing Plan (hereinafter referred to as Plan) to the City of Carlsbad Contract Compliance Officer or Duly Authorized Agent before the issuance of any building Permit orsspecial rein ef permit ectun il ichais subject to this policy. Tile Plan units are sold, rented or leased and shall contain, but not be limited to the following: 1. Designation of a qualified official to perform duties of Equal Opportunity Officer. This official will be riven the responsibility for assuring Applicant compliance with this Plan. 2. Demographic information of the area in which the project is located. 3. Anticipated market based on racial composition of the area. -2- 4. Sales, rental, or lease goal which has been determined based upon'the demographic makeup of the area. 5. Outreach efforts which will be taken to attract the appro- priate racial group(s) to the housing market. 6. Name(s) of minority/nonminority media which will be used, and expected frequency of use. 7. Assurance that radio advertisements will use the equal housing opportunity slogan. 8. Assurance that T.V. advertisements will use either the equal housing opportunity logo or slogan. 9. Assurance that all billboard signs, brochures, handouts, and newspaper and magazine advertisements will have an equal housing opportunity logo and slogan of appropriate size. 10. Description of bilingual sales, rental or lease advertising which will be used. 11. Assurance that one fair housing poster in English and one in Spanish will be posted in the project sales or rental/lease office and one fair housing poster in English will be posted in each housing model. , 12. Names of community organizations which will be given informa- t3on concerning the project. 13. Description of affirmative action recruiting and hiring policy for staff engaged in sale, rental or lease of housing. 14. Information concerning the racial composition of the staff. 15. Summary of training to be provided to the staff on local, state and federal fair housing laws and on affirmative housing principles. 16. A statement of intent to participate in the County of San Diego llousing Referral Service, when i,aplemented. 17. Assurance that sales, rental or lease reports will be sub- mitted to the City of Carlsbad Contract Compliince Officer by the 5th day of each month for the preceding month until all units are sold, rented, or leased. These reports shall include: A. Name, location and census tract of project. B. Total number of units in the project. -3- C. Cumulative number of units sold, rented, or leased during the month reported. D. Cumulative number of units sold, rented,the or leased by racial ethnic grouping during E. A+statement in percent of the sales, rental, or lease n integration goal as determined by g F. A statement in percent of the sales, rental, or lease integration goal which has been achieved to date. G. If the achieved integration goal to date is below the integration goal established from housing cost data, a summary of affirmative marketing action which shall be taken to bring the achieved goal up 18. Assurance that the Plan, when approved by the City of Carlsbad shall be posted at the sales, rental, or lease office with the address and telephone number of the Contract Compliance Officer in plain view for public inspection by an interested group or individual. 19. Assurance that the Plan, when approved, shall not be modified without the concurrence of the Contract Compliance of CITY OF CARLSBAD RESPONSIBILITIES The Contract Compliance Coordinator (hereinafter referred to as -Authorized Agent) shall be charged with the responsibility of carrying out the duties of the City of Carlsbad in the implemen- tation of this plan. Duties of the Authorized Agent shall include the following: 1. The review and approval or disapproval of Applicant Plans. 2. Assisting the Applicant in revising a disapproved plan d providing continuing technical assistance to the Applicant through the period of initial sale, rental, or lease. 3. The monitoring of applicant's sale, rental, or lease activity for compliance with this AFHMP and Applicant's Plan. Compli- ance determinations will be based on results achieved and the Applicant's documented good faith efforts. q. Investigation pplicant Plansno all aandsof determinatic isasfto whether this AFFFMP and/or App corrective action is required. 5. When corrective action is needed, determination as to whether the corrective action can be initiated by the City of Carlsbad or whether the matter should be referred for resolution to the State of California Fair Employment -4- Practice Commission who may, at its discretion, direct the noncomplying party to submit to the process of conference, conciliation or pursuasion. 6. The submission of Plans and reports to the State of California Fair Employment Practice Commission. AA/j 4/19/79