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HomeMy WebLinkAbout1996-12-17; City Council; 13964; APPROVAL OF SUBMISSION OF THE ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT/g J DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT RECOMMENDED ACTION: ADOPT City Council Resolution No. 9d - 73 Y , as recommended by the Housing Co approving the submission of the Assessment of Impediments to Fair Housing Choice t Department of Housing and Urban Development ITEM EXPLANATION: In 1995, the U.S. Department of Housing and Urban Development published a rule cor the Comprehensive Housing Affordability Strategy for the Community Development BI (CDBG) Program and submission and reporting requirements for the four ( development formula grant programs (CDBG, HOME, ESG, and HOPWA) into a singk Consolidated Plan. As part of the Consolidated Plan, the City must submit an a1 furthering fair housing certification which requires the City to undertake Fair Housing PI: Fair Housing Planning has been defined by HUD as the following: 1) The completion of an assessment of impediments to fair housing choice; 2) Actions to eliminate any identified impediments; and, 3) Maintenance of affirmatively furthering fair housing records. The City of Carlsbad’s Assessment of Impediments to Fair Housing Choice has been pi meet the requirements of the Federal CDBG Program. The purpose of the Assessment of Impediments is to: 1) Estimate the extent of socio economic and racial segregation in Carlsbad; 2) Examine the status of fair housing in Carlsbad; 3) Review impediments to equal housing opportunity; and 4) Evaluate local public and private sector policies and practices that affect fair housing As a result of the analysis of fair housing choice within the community, staff has conc there is one census tract within the City, Census Tract 179.00, with a high concentral income households, as well as a high percentage of minorities. While Carlsbad does be economically segregated, there were no impediments to fair housing choice that Private lender loan application denial rates from Census Tract 179.00 were slightly hi the denial rate for the City as a whole but were comparable to other non-minority cen within the City. A survey conducted in 1994 showed that Carlsbad residents genera believe that they have experienced discrimination in obtaining either rental or fair sale I ‘ % Page2ofAB# / e i * In an attempt to build upon the City’s current and past fair housing policies and prac recommended that the City continue and expand its education and outreach efforts to implement strategies for geographic choice for the Section 8 Rental Assistance Progrz further investigate the nature and extent of fair housing discrimination through fai auditdtests, as deemed necessary by the City. The City provided the public with Assessment of Impediments to Fair Housing Choice and its conclusions and recomme The “public review and comment” period for the Assessment of Impediments was ir September 13, 1996. November 14, 1996, the Housing Commission accepted public comments and recomm submission of the Assessment of Impediments to the U.S. Department of HUD. comments were received as a result of the public participation process. FISCAL IMPACT: No fiscal impact to the General Fund. Upon acceptance by the U.S. Department of HUI: thirty (30) days to review and comment on Comments were accepted until 500 p.m. on October 14, will continue to be eligible to receive CDBG funds during fiscal year 1997-98. EXHi BITS : 1. City Council Resolution No. 96 - L/3 ‘f- , approving the submission of the Carlsbad’s Assessment of Impediments to Fair Housing Choice for the C Development Block Grant Program to the U.S. Department of Housing ai Development. 2. Housing Commission Resolution No. 96-01 3, recommending City Council autt Housing and Redevelopment Director to submit the City of Carlsbad’s Asse: Impediments to Fair Housing Choice for the Community Development Block Grant F the U.S. Department of Housing and Urban Development. 3. City of Carlsbad Assessment of Impediments to Fair Housing Choice (on file in Housing and Redevelopment Department. * I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e e CITY COUNCIL RESOLUTION NO. 96-434 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE SUBMITTAL OF THE ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the City of Carlsbad, the City must submit an affirmatively furthe housing certification, to be eligible to receive Federal Community Development Bloc (CDBG) and HOME Investment Partnership (HOME) funds; WHEREAS, the Assessment of Impediments to Fair Housing Choice has been F to meet the fair housing certification requirements of the Federal CDBG and HOME Pros WHEREAS, the Housing Commission of the City of Carlsbad, California, at i meeting held on November 14, 1996, recommended the submission of the Assess Impediments to Fair Housing Choice for the City’s Community Development Block GI HOME Program to the U.S. Department of Housing and Urban Development; WHEREAS, the City Council of the City of Carlsbad, California, has considc Assessment of Impediments to Fair Housing Choice for the City’s Community Deve Block Grant and HOME Program to the U.S. Department of Housing and Urban Devel and, WHEREAS, the City Council has taken all testimony into account. NOW, THEREFORE BE IT HEREBY RESOLVED by the City Council as follows: 1. The above recitations are true and correct. 2. The City Council approves the submittal of the Assessment of Impediment: Housing Choice for the City of Carlsbad’s Community Development Block G HOME Investment Partnership Programs to the U.S Department of Houz Urban Development. 3. The City Council hereby recommends authorization of the Housi Redevelopment Director to submit said document on behalf of the City of Car PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Coun city of Carlsbad, California, held on the 17th day 0; December 1996, by the following vote, to wit: 1 * 1 2 3 4 i 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e e AYES: NOES: None ABSENT: None ABSTAIN: None Council Members Lewis, Finnila, Nygaard, Kulchin and Hall /, ’ /’/, /;dc- /’ CLAUbE K~Evv,S,lii&or - &jh{/d2 ATTEST: 4. , *LEMuTE%yG)k (SEAL) - 2 *1 2 3 4 5 5 6 7 8 9 10 11 12 13 14 15 l6 17 18 19 20 21 22 23 24 25 26 27 28 &SING COMMISSION RESOLUTIO ,jib 0.96-013 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING THE SUBMITTAL OF THE ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the Housing Commission of the City of Carlsbad, California, at a public hearini on November 14, 1996, considered the Assessment of Impediments to Fair Housing Choice for the C Community Development Block Grant Program; and WHEREAS, the Housing Commission recommends the submittal of the Assessment of Impediments to Fair Housing Choice to the U.S. Department of Housing and Urban Development; NOW, THEREFORE BE IT HEREBY RESOLVED by the Housing Commission as follows: 1. The above recitations are true and correct. 2. The Housing Commission recommends the submittal of the Assessment of Impediments Fair Housing Choice for the City of Carlsbad’s Community Development Block Grant Program pending completion of the public review and comment period. 3. The Housing Commission hereby recommends authorization of the Housing and Redevelopment Director to submit said document on behalf of the City of Carlsbad, PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission c City of Carlsbad, California, held on the 14th day of November 1996, by the following vote, to wit: AYES: Chairperson Calverley; Commissioners: Escobedo, Noble, NOES: None. ABSENT: Commissioner Rose. ABSTAIN: None. Sato, Scarpelli, Schlehuber, Walker & Wellman. &X&&- EVAN E. BECKER Housing and Redevelopment Director 1 e 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE DEPARTMENT OF HOUSING AND REDEVELOPMENT AUGUST 1996 a 0 , CITY OF CARLSBAD Claude A. trBud" Lewis Mayor Julieanne Nygaard Mayor Pro Tern Ann J. Kulchin Ramona Finnila Matt Hall Council Member Council Member Council Member Raymond R. Patchett City Manager 0 a , ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE August 1996 Prepared By Housing and Redevelopment Department City of Carlsbad 1200 Carlsbad Village Drive Carlsbad CA 92008 (6 19) 434-28 1 1 @ CITY OF CARLSBAD A 9 SESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE SECTION I: INTRODUCTION A. Fair Housing Obligation of the City Federal regulations require that all communities receiving federal assistance througk Community Planning and Development programs, such as the Community Development Block Grant (CDBG) and HOME Investment Partnership programs, must certify that the community is affirmatively furthering fair housing. As defined by the U.S. Department of Housing and Urbar Development, the community's fair housing obligation is as follows: 0 Conduct an analysis to identify impediments to fair housing choice within the jurisdiction; 0 Take appropriate actions to overcome the effects of any impediments identifiec throughout the analysis; and Maintain records. Based upon such assessment, the City should develop a proactive fair housing program. Thi: program should entail specific actions and procedures that will have a significant impact or preventing, reducing, or eliminating housing discrimination and other barriers to equal housins choice based on race, color, religion, sex or national origin. The purpose of the Assessment of Fair Housing Choice includes the following: 0 To examine the status of fair housing in Carlsbad; To estimate the extent of socio economic and racial segregation in the City; To review impediments to equal housing opportunity; and To evaluate local policies and practices that affect fair housing choice. 0 0 Through this assessment, it is hoped that current impediments to fair housing choice can bc identified and effective strategies are developed to overcome them. B. Scope of Assessment In evaluating fair housing opportunities in Carlsbad, this assessment will: 0 Analyze the spatial residential distribution of whites and minorities in the City; Analyze home mortgage lending data by census tract; Review relationship of public transportation and location of major employers and theii Present the findings of a survey conducted in July 1994 by the San Diego Association 01 Assess the impact of public and private sector policies and practices on fair housing Assess the City's current Fair Housing Program and services. 0 0 effect on fair housing; Governments (SANDAG) on behalf of the City; and 0 0 Page 1 . CITY OF CARLSBAD 0 0 ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE C. HowFunded This Assessment of Fair Housing Choice was funded through the Federal Communit! Development Block Grant (CDBG) program. D. Assembling Information To develop this Assessment of Fair Housing Choice, the City of Carlsbad was providec assistance from the U.S. Department of Housing and Urban Development (HUD), the Sal Diego Association of Governments (SANDAG), and the San Diego City-County Reinvestmen guide the City in the specific contents required and actions to consider for the Assessment c Impediments. SANDAG was instrumental in administering a survey regarding fair housinl choice within Carlsbad and analyzing the results of this survey. The Taskforce provided thl Home Mortgage Disclosure Ad (HMDA) data for the City of Carlsbad. HMDA data details thl lending activities of banks and other lending institutions by census tract. The City-County Reinvestment Taskforce, established in 1977 by joint resolution of the Sa Diego City Council and the County Board of Supervisors, was formed to spur private and publi financing of affordable housing and economic development activities in those areas within th County suffering from disinvestment. It's primary goals are to monitor lending practices an policies and to develop strategies for reinvestment. E. Summary of Conclusions The results drawn from the Assessment show that there is one low income census tract withi the City of Carlsbad with a high percentage of minorities, Census Tract 179.00. Private lender loan application denial rates from this census tract was slightly higher than th denial rate for the City overall, but comparable to other census tracts within the City. Additionally, private lender loan applications from Census Tract 179.00 were proportionatel \ Task Force. HUD provided much of the necessary 1990 US. Census data and manuals to he\ less in number. Low-income housing programs are designed to promote raciallethnic balance. Adequate publi transportation in Carlsbad does not hinder housing choice. Additionally, a survey completed i 1994 of Carlsbad residents showed that Carlsbad residents generally do not believe that the have experienced discrimination in obtaining either rental or for-sale housing. Although the City does provide a Fair Housing Education and Counseling program throug Heartland Human Relations and Fair Housing Association. The City's current fair housin services are not complete. There may be a need to expand upon fair housing auditdtesting t determine if discrimination is occurring. As a result of the Fair Housing Assessment and in an attempt to build upon the City's past an present fair housing policies and practices the City will continue its efforts to promote fa housing choice within the community. The City will consider implementing new policies that w further fair housing choice. These actions may include the following: Page 2 e 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE L a Consider limiting the use of Section 8 certificates and vouchers to no more than 20 Utilize the strategies recommended for increasing geographic choice for participants in percent of the units in an existing project; a the Section 8 Rental Assistance Program, such as those proposing counseling and orientations regarding housing opportunities in non impacted areas, and providing tours of those areas for certificate and voucher holders; Conduct fair housing auditsltests, as deemed necessary by the City and the fair housing City. provider, to determine the nature and extent of housing discrimination throughout the Page 3 0 . CITY OFCARLSBAD 0 ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE SECTION II: JURISDICTIONAL BACKGROUND DATA This section provides background information for the City of Carlsbad. To lay the foundation for the fair housing assessment, the following information should be considered: 0 0 General demographics of Carlsbad’s population; Transportation and future employment in Carlsbad. Carlsbad’s housing market and inventory characteristics; and Map 11 City of Carlsbad 7J \- - - - - - - - \ \0 ’ ”-1 n “%jF pl A. Population Demographics The 1990 Census indicates that the City of Carlsbad population is 63,126 persons. The population has increased 78 percent since the 1980 Census when the population was 35,490. As shown in Table 1, 82 percent of the City’s population are white, 1 percent are Black, 14 percent are Hispanic, less than 1 percent are Native American and Other, and 3 percent are Asian/Pacific Islanders. As also demonstrated in Table I, from 1980 to 1990, the percentage of whites decreased slightly from 83 to 82 percent of the total Carlsbad population. The number of Hispanic persons also slightly increased from 13 to 14 percent for the same time period. Asian/Pacific Islander and Other, Black and Native American populations remained relatively constant. Page 4 0 CITY OF CARLSBAC ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Table 1 ' Population by Race Source: 1990 U.S. Census B. Elderly and Disabled Persons The elderly population comprises about 16 percent of the population in Carlsbad or 9,96' persons. This population is comprised of some 5,762 elderfy (1 and 2 member) households, c which 4,517 are homeowners (78 percent) and 1,245 are renters (22 percent). Of the 21,25! noninstitutionalized persons 16 years and over, 278 persons (I percent) have a mobilit limitation and 136 (1 percent) have both a mobility and self care limitation. Carlsbad has a Senior Housing ordinance that permits a density bonus for senior citizei housing projects. There have been 229 units built and an additional 76 dwelling units approvec for construction for senior citizens in Carlsbad utilizing the residential density bonus under thc City's Senior Housing ordinance. The demographics of the census tract where these senio housing projects exist indicate a high concentration of minority households and low incomc households, as well as a low median age. Additionally, as of August 1996, 188 of all Section 8 Rental Assistance participants residing i Carlsbad are elderly households. C. Families With Children Households with related children comprise about 30 percent of Carlsbad households. According to the 1990 U.S. Census, family households with children, headed by a single adu with no spouse present comprised 22 percent of those 7,439 households. Of the single adu headed households, a great majority (74 percent) were headed by a female. Table 2: Families with Related Children Source: 1990 U.S. Census Page 5 - CITY OFCARLSBAD 0 0 ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE D. Housing Profile HOUSING STOCK INVENTORY Table 3 below provides data regarding the total number of year-round housing units by occupancy status. According to the 1990 U.S. Census, there are a total of 27,235 dwelling units in Carlsbad, of which 92 percent are occupied and 8 percent are vacant, Of the OGGUpied units, 38 percent are renter occupied. The remainder of the occupied units, 62 percent, are owner occupied. Table 3: Housing Stock Inventory Source: 1990 U.S. Census Table 4 below provides 1990 U.S. Census data on structure types of dwelling units in Carlsbad. Single family dwelling units, whether attached or detached, comprise the largest percentage (64 percent) of Carlsbads housing stock. In fact, nearly 50 perced of Carlsbad's housing is single family detached dwelling units. Multi-family units comprise only 31 percent of Carlsbad's housing stock. Table 4: Units by Structure Source: 1990 U.S. Census Page 6 Unit Size Square Footage/Unit Land Cost @ $400,000 0 Predeveiopment 0 Land development 0 Facilities Management Fees* @ 20 DU'sIAcre Offsites: 3 Br/2 Ba 1,100 $20,000 $5,500 $22,000 $1 0,000 Processing/Permit fees Recreation and Amenities SUBTOTAL--Cost for lmproved Land Land Carry-3 Years $1 8,000 $4,000 $79,500 $7,200 Onsites: Direct (hard costs) @ $42/sq ft Indirect I@ $3.50/sq ft Overhead @ 4% of Sales Price Selling @ 5% of Sales Price Finance (Construction) $46,200 $4,000 $5,500 $7,100 $7,100 c # CITY OF CARLSBAD A 9 SESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE E, RESIDENTIAL DlSTRl5UTlON OF MINORITY POPULATIONS In this section, an applied analysis will be discussed to show the extent of residentia segregation in the City. A comparison of demographic data and income characteristics b) census tract from 1980 to 1990 provides an analysis of the trends of minority populations ir Carlsbad. Urban history has shown that if incomes in a census tract decreases and the minority population increases disproportionately, urban problems, such as ghettoization disinvestment in the community and White Flight, may arise. The concept of race as used by the Census Bureau reflects self-identification. It does no reflect any clear-cut definition of ethniclracial representation of the residents. The data foi ethnicitylrace represents self-classification by people according to the race with which the) most closely identify. The question of Hispanic origin was asked independently of the question: concerning race. A person of Hispanic origin may be of any race. For purposes of this profile mutually exclusive ethniclracial groups have been identified. According to the 1990 Census, the regional population averages for racial/ethnic minorit) groups were 6 percent Black (Non-Hispanic), 7.4 percent Asian/Pacific Islander (Non-Hispanic) 0.7 percent Native American (Non-Hispanic), 0.1 percent Other (Non-Hispanic) and 20.~ percent Hispanic. Therefore, the region's total mino.rity population as a percent of tota population is 34.6 percent. For purposes of this Assessment and consistent with the City of Carlsbad's 1995-199: Consolidated Plan, a racial/ethnic concentration is defined as a census tract where the tota minority population, as a percent of all households, exceeds 38 percent (1 0 percent higher thar the regional average). As shown in Map 2, in the City of Carlsbad, there is one census trac that has a concentration of minority households, when compared to the San Diego region as i whole. Census tract 179.00 has a concentrated population of minority households. Not only does this census tract have the most concentrated population of minority household! but it also has the highest percentage of low/moderate-income households in Carlsbad. Census tract 179.00 contains some of the oldest housing stock in the City, as well as i concentration of higher densipj residential projects and rental housing. Page 9 0 , CITY OFCARLSBAD 0 ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Map 2: Concentrations of Ethnic/ Racial Minorities Carlsbad CA Table 6 shows two additional census tracts with a significant number of ethnichacia1 minorities. It should be noted that the majority of census tract 176.01 is comprised of the City of Encinitas while census tract 200.05 is primarily comprised of the City of San Marcos. Therefore, it is inappropriate to classify these census tracts with a concentration of ethnichacia1 minorities based upon the 1990 U.S. census data for Carlsbad residents. Page 10 . 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Table 6: Ethnicity/Race of Population by Census Tract for 1990 Source: 1990 U.S. Census, Sourcepoint In an analysis of each census tract, the 1990 US. Census data shows that the majority, if no all, of the minority households are Hispanic. For those census tracts with concentrations o minority households, 91 to 100 percent of the minority households are Hispanic. As shown in Table 7, in the City of Carlsbad for 1990, there are three census tracts that haw significant percentage of the population who can be defined as low-income, incomes which dc not exceed 80 percent of the area median income by household size. Within census tract! 178.05, 179.00, and 180.00, more than 35 percent of the population are of low-income. Page 11 8 0 5 CITY OF CARLSBAD ASSESSMENT OF IMPE IMENTS TO FAIR HOUSING CHOICE Source: 1990 U.S. Census Census tract 179.00 is the only census tract where there is a significant percentage of the population who are minorities or low income households. Concentrations of Ethnic Racial Minorities Carlsbad CA % EUmc/Racial Minorities Page 12 \ 0 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE In 1980, only one of Carlsbad's ten census tracts (179.00) had a significant ethnichacia1 minority population. Within census tracts 178.05, 179.00, and 180.00, more than 35 percent of the population was of low-income. Census tract 179.00 was the only census tract where there was a significant percentage of the population who are ethnichacia1 minorities or low income households. Source: 1980 U.S. Census It is somewhat difficult to compare census data from 1980 to 1990 due to the splitting of 1980 census tracts and adjustments to the boundaries of some 1980 census tracts. In general, there was a slight increase (1%) city wide of ethnicIracia1 minorities from 1980 to 1990. Low income persons, as a percentage of the population, decreased from 33 percent in 1980 to 24 percent in 1990. For Census Tract 179.00, there was an approximate 7 percent increase in ethniclracial minorities from 1980 to 1990. However, the percentage of the population who are of low income within this census tract decreased 10 percent. F. Employment Of the 51,013 persons 16 years of age or older in Carlsbad, 35,455 or 66 percent are employed in the armed forces or civilian work, according to the 1990 U.S. Census. Approximately 29 percent of those employed are actually working within the City. Many persons are commuting to Carlsbad to work. The scarcity and affordability of housing may prevent them from living in Carlsbad. Consistent with the number of persons who work outside of Carlsbad, the mean travel time to work is 25 minutes. Some Carlsbad residents (15 percent) have commute times to work of 45 minutes or more. As would be expected in a community where the majority of households, 69 percent, earn incomes above 95 percent of the median family income, many Carlsbad residents are employed in professional type occupations. The 1990 Census indicates that the occupations with the highest percentage of Carlsbad workers are: 1) Executive, administrative, or Page 13 + CITY OF CARLSBAD 0 ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE managerial (20.4 percent); 2) Professional specialty (1 7.4 percent); and 3) Sales (1 6.8 percent) The major employment centers in Carlsbad continue to be in the regional shopping cente (Plaza Camino Real) and the office industrial corridor that surrounds the Palomar-McClellai Airport. Major manufacturing employers in Carlsbad include Callaway Golf (2,000 employees) Cobra Golf (800 employees), and The Upper Deck (675 employees). La Costa Hotel and Sp (950 employees) and Plaza Camino Real Shopping Center (3,000 employees) dominate a major employers of both the non-manufacturing and manufacturing employers. With significant amounts of undeveloped acreage designated for commercial and industri: development, it is expected that opportunities for employment will only increase. Currently, th. City, with its major employment centers and access to major transportation corridors such a: Interstate 5 and State Highway 78, has been one of the fastest growing employment centers ir the San Diego region. Page 14 Nature of Case Landlord-Tenant Relations Discrimination Based On: Race, Color National Origin, Ancestry Sex, Marital Status Religion Disability Families with Children TOTAL Number of Cases 59 0 0 I 1 1 2 64 1 Ethnic Group Median Income ' White $i 46,550 Black $48,700 American Indian $ 26,900 Asian $54,000 Other $31,100 Hispanic $ 35,750 All Households $45,700 Non-Hispanic: a @ CITY OF CARLSBAO ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Therefore, as a whole, in 1990, minority families would have a greater difficulty purchasins homes than white families because of a lack of income. This trend probably exists today. Due to the high price of homeownership, Carlsbad is becoming economically segregated. Tc the extent that income follows ethnicity, Carlsbad will be ethnically segregated. Rental Housing In 1996, HUD estimated the median income for a family of four in San Diego County to be $46,600 and a low income household for a family of four to be $37,300. Therefore, a family 01 median income can afford to rent a home for $1,165 a month, including utilities. A low income family can afford to rent a home for $933 a month, including utilities. According to Market Profiles of San Diego's quarterly report "Rental Trends: An Analysis anc Overview of the San Diego County Apartment Market", in a survey of 1,977 rental units foi March 1994 the weighted average rental rate, not including utilities, for a two bedroom unit wat $744 a month and for a three bedroom unit was $894 a month. Most lower income household5 of four may have to choose living in a two bedroom unit versus a three bedroom unit because of the higher rent being charged for a three bedroom unit. Lower income households are impacted greatly by the affordability of housing. The limitations of their pocket books may force these households into overcrowded living conditions or residing in homes which may not meet minimum housing quality standards simply because they cannoi afford a better or more suitable home. B. The Federal Fair Housing Act specifies that unlawful conduct in finance and brokerage services may include, but are not limited to the following: Provision of Housing Brokerage Services and Financing Assistance 0 Using different qualification requirements or credit check procedures for clients; Establishing different neighborhood or underwriting standards in residential lending or Applying different loan terms; . Withholding financing information; or 0 insuring (redlining). The Community Reinvestment Act (CRA) of 1977 regulates community bank lending practices within lower-income neighborhoods. Households with similar credit histories, financial situations, employment records, and loan to value ratios must be extended equal access to credit. Lenders or insurers cannot deny loans solely based on the location of the home to be purchased. Similarly, loans cannot be denied based upon differential or subjective underwriting criteria within a market area. Under CRA, banks and other lending institutions are also required to lend within low and moderate-income communities and to make reasonable efforts to establish communications with the community regarding banking and lending services available. If banks and lending institutions make available significant funds for well publicized community banking programs and services, these institutions may assist in the improvement of the economic conditions of the community they are serving. Page 17 . CITY OFCARLSBAD @ a ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Banks and lending institutions are encouraged to participate in the local communities they serve not only because it is a good business opportunity but also through enforcement of the CRA participation requirement in low and moderate-income communities. The Federal banking system can deny the application of national banks to merge or expand based upon their lack of banking and lending participation within low and moderate-income communities they serve. The Home Mortgage Disclosure Act (HMDA) requires lending institutions to disclose the lending activities by census tract. Based upon data disclosed because of HMDA, statements can be made that describe the trends in home mortgage and improvement lending in Carlsbad. The statements made below are prevalent in the HMDA data for the year examined: 9, For 1984, denial rates on originated residential mortgages and by ethnicity in CaTkbad are comparable to those rates for San Diego County. The 1994 HMDA data shows that of the originated residential mortgage loans, overall approximately 18 percent of all applicants were denied. The denial rates by ethnicity clearly show African-Americans and Hispanics have a higher denial rate, 35.5 percent and 25.5 percent respectively, than Whites. The level of single family loan activity by census tract is comparable to the proportionate share of the housing stock within the census tract. HMDA data shows that of the residential mortgage loans closed in 1994, 10 percent were made by ethnic minorities, while such ethnic minorities comprise 18 percent of 2. 3. 4. 5. Carlsbad's population. 6. Loan Application Denial Rates National studies of denial rates consistently have found higher denial rates for low income borrowers and non-white borrowers, excluding AsianlPacific Islanders, when compared to white and high income borrowers, and these same patterns are evident in Carlsbad. The 1994 HMDA shows that of the originated residential mortgage loans, overall approximately 18 percent of applicants were denied. The denial rates on all originated residential mortgages by ethnicity in Carlsbad is comparable to those rates by ethnicity for San Diego County. The higher the level of income within a census tract, the higher the level of lending. Page 18 * e CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Table 9. Denial Rates on All Originated Residential Mortgages Source: Although the denial rates by ethnicity clearly show African-Americans and Hispanics have a higher denial rate, 35.5 percent and 25.5 percent respectively, than Whites, no conclusion regarding racial discrimination can be made. The HMDA data is inconclusive because there are many reasons why loans can be denied. Loans can be rejected because of debt/income ratio, collateral, credit history, asset levels, work situations, and other reasons. The aggregate results of reasons for rejection are not tabulated and therefore unavailable for analysis. Additionally, due to the small number of African-Americans and Hispanics in Carlsbad originating residential mortgage loans, approximately 1 percent and 5 percent respectively of the total, these denial rates do not provide statistically reliable information. Private lender loan application denial rates from the one minority and low-income census tract in the City, Census Tract 179.00, is 20.8 percent while the City overall has a denial rate of 17.8 percent. While this low income census tract did experience a slightly higher denial rate, no real trend or pattern regarding the level of minority residents within a census tract and the levels of lending can be concluded. A total of four census tracts had denial rates exceeding 20 percent. Additionally, private lender loan applications from the one minority and low-income census tract were proportionately less in number. Lending in LowlModerate Income Census Tracts As discussed earlier, Census Tract 179.00 has the highest percentage of ethnichacia1 minorities and low income persons. This area represented 12 percent of the City's 1990 population, of which 53 percent are of ethnicIracia1 minority. The median income is approximately $29,100 or 73 percent of the County Median Family Income. This area is generally acknowledged as having some of the more pressing housing problems in the City. The median value of owner-occupied housing units for this census tract based upon the 1990 census was $188,700. Merely 43 percent of the 1 to 4 dwelling units are owner occupied. Census Tract 179.00 has approximately 4 percent of the total number of 1 to 4 unit properties. City-County Reinvestment Taskforce, 1994 HMDA Data Page 19 + CITY OF CARLSBAD 0 ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Cansistent with its proportionate share of this housing stock, approximately 3 percent of the single family loan activity for 1994 was within Census Tract 179.00. Table 10: Total Residential Mortage Loans Closed Source: As shown in the following table, only 2 percent of the City’s residential mortgage loan dollars received in 1994 were in Census Tract 179.00. While this low income census tract did experience a very low percentage of the lending activities for single family homes, no real trend or pattern regarding the level of minority residents within a census tract and the levels of lending can be concluded. In general, those census tracts with more than 30 percent minority residents did have relatively low levels of lending, ranging from 0 to 5 percent of the City’s mortgage loan dollars in 1994, with a mean of 5 percent. These areas of minority concentration have a larger portion of the housing stock that is rental housing Those census tracts with 10 percent or less minority residents did have slightly higher levels of lending, ranging from 1 to 10 percent of the City’s mortgage loan dollars in 1994, with a mean also of 5 percent. Lending activity can be more appropriately characterized as “the higher the level of income, the higher the level of lending”. City-County Reinvestment Taskforce, 1994 HMDA Data Page 20 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Table 1 1 : Residential Mortgage Loans Source: At this time, there is no direct evidence of discrimination in fair housing choice in housinc brokerage services within the City. C. Public Policies and Actions Zoning, land use, policies, and other building requirements can affect the approval process fo for lower-income, minority, disabled, elderly, or single parent households can be viewed a: discriminatory. These practices are generically encompassed in the term "exclusionay zoning", which includes such obvious types of governmental constraints as large lot zoning single family zoning, minimum unit sizes, and less obvious constraints such as excessive on and off-development costs and exactions imposed on builders. Excessive development cost! include overly wide streets, unnecessarily high concrete specifications for curbing an( sidewalks, and waterhewer hook up fees. Less obvious are areas of municipal action or inaction which effectively preclude thc development of affordable housing for lower-income persons. These include refusal ti undertake actions which are necessary prerequisites to encourage private developers tc participate in efforts to provide affordable housing, such as density bonuses or increases. Activities aimed at producing affordable housing for lower-income households are close1 related to, but not necessarily the same as those which further fair housing. Fair housini relates only to income. City-County Reinvestment Taskforce, 1994 HMDA Data the construction of publicly assisted housing. Practices which limit the range of housing option: relates to race, color or other unchangeable personal characteristics. Affordable housinl Page 21 Land Use Density Range Category ( D u/Ac) Low Density 1 - 1.5 Low-Medium Density 0-4 Medium-High Density 8- 15 High Density 15 - 23 Medium Density 4-8 Growth Control Point 1 .c 3.; 6.C I?.! 19.t L 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE units per acre. The City's Municipal Code (Title 20-Zoning Ordnance) has been amended to allow for a minimum 25 percent density bonus, as mandated by Government Code Section 6591 5, for those residential developments proposing housing affordable to lower or moderate income households. The General Plan Land Use Element also has been amended to allow for a density increase to allow for the residential density required to encourage the provision of affordable housing. Redevelopment Plan While the theme, scope and scale of residential development within the Village Redevelopment Area is of low intensity, it contains significant acreage for high density residential that is well suited for housing affordable to lower and moderate income households. The Village Area also contains land uses of all other densities. The Village Area Redevelopment Plan calls for the production of 300 to 400 new housing units for all economic groups prior to its expiration. Lastly, the Plan also emphasizes the need for rehabilitation of the existing housing stock of the area to preserve and maintain the housing and to bring such housing into conformance with the nature of the village atmosphere of the redevelopment area. Although the opportunities exist to develop higher density affordable housing within this area, too much new multi-family housing is discouraged. This area has historically seen the development of much of the City's high density multi-family housing. It is the City's genera policy to spread affordable multi-family housing through out the City in order to avoid impactior of the Village Redevelopment area, Processing and Permit Procedures As indicated in Table 13, the type of permit for the residential development defines its length o processing time. Projects that require multiple discretionary entitlement are usually processec concurrently. Table 13: Average Administrative Processing Time for Discretionary Applications Average Length of Admir Processing Time: From Submittal to 1"' Category Application Type Discretionary Action Master Development Master Plans 12-24 Months Master Plan Amendment Specific Plans Specific Pian Amendment EIR's Tentative Tracts Site Development Plans Redevelopment Permits Conditional Use Permits Tentative Tract Amendment/ Revisions Zone Code Amendments Planned Developments Major RMHP 6-12 Months Page 23 . CITY OF CARLSBAD d 0 ASSESSMENT OF IMP DIMENTS TO FAIR HOUSING CHOICE Average Length of Admir Processing Time: From Submittal to 1' Category Application Type Discretionary Action Zone Changes General Plan Amendments Site Development Plans Redevelopment Permits Conditional Use Permits Special Use Permits Precise Development Plans Coastal Development Permits Miscellaneous Hillside Development Permits 1-3 Months Administrative Variances Local Coastal Plan Amendments Condominium Permits Minor Minor Subdivision 3-6 Months The requirement for discretionary approvals typically involves additional time for constructio and completion of housing units. Therefore, this additional processing time can be translate into higher development costs, which may be passed on to consumers via the sales price c rental rates, due to higher loan carrying costs. Expedited, priority processing can be utilized a an incentive for more low income affordable housing. Development Standards Development standards are standards set by the City of Carlsbad to ensure that developmer of residential or commercial uses is compatible with the surrounding community. The City ha adopted an amendment to Title 21 of its Municipal Code (Zoning) to recognize the need t waive those development standards that may add cost and time to the development ( affordable housing for low income Carlsbad households. Section 21.06.090 states th; affordable housing projects being proposed on property within the "Qualified Overlay" zone ar permitted the flexibility in meeting the development standards of the underlying zone and ar applicable specific plan. Building, Electrical and Plumbing Codes The City currently has adopted the 1988 version of the Uniform Building Code, the 1980 versic of the Uniform Plumbing Code, and the 1987 version of the Uniform Electrical Code. The Ci has no substantive amendments to the Code that would adversely affect standard types ' housing. Furthermore, reductions of State required codes to reduce costs are not in the be interests of public health and safety. interpretations of some codes may be biased against certain alternative housing types such i SRO's (Single Room Occupancy) or farmworker housing. These alternative housing structure which may not fit into any one residential category, require some flexibility in coc interpretation. SRO hotels, for example, serve a residential function but are commercial nature and may be required to be built under restrictive commercial codes to be cost effective. Page 24 0 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Fees and Exactions Currently, the City of Carlsbad assesses a fee for most administrative processing of applications for development. Other fees are also exacted to mitigate any adverse effects of development. For example, as residential development increases, there is an increase in the number of school age children whose need for school facilities will need to be accommodated either through expansion of the existing school system or the construction of new facilities. Therefore, an exaction is placed for school fees to meet the increased demand for school facilities. The development community often cite processing fees and exactions as major contributors to the increasing cost of providing housing. Typically in Carlsbad, all fees including impact and processing fees average between $15,000 to 20,000 per dwelling unit depending upon the type of unit and its location. To address the role of fees and exactions in increasing the costs of housing, the City has adopted a City Council policy that allows the waiver of Public Facility fees for those residential developments providing affordable housing for lower-income households. Municipal and other Services An area of concern for the City is its capability to adequately serve growth as it occurs. Tc ensure that adequate public facilities and services are guaranteed at all times as growth occurs the City developed a Growth Management Program which was subsequently ratified bj Carlsbad voters in November 1986. The program establishes citywide, quadrant, and Loca Facilities Management Zones performance standards for eleven public facilities. The public facilities addressed are city administration, water treatment, parks drainage circulation, fire, open space, schools, sewer collection, and water distribution. The program requires that the appropriate public facilities must be available in conformance with the adoptec performance standards in an area when new development occurs. Unless each of these eleven public facility standards have been met, no new development can occur. Employment-Housing-Transportation Linkage A jobs-housing balance is a concept to create housing opportunities closer to employmen centers and to create housing in the corresponding economic ranges that correlate to thei respective employment sector. Although Carlsbad has created a significant number of housins opportunities within the last 10 years, it has not created enough housing to match job creatior in the retail industrial and service sectors. These employment sectors traditionally offer a lowe wage level and, as a result, those employed in Carlsbad’s industrial parks, resort areas an( commercial centers must seek housing in the surrounding communities where housing cost! are lower. Carlsbad has instituted a goal to achieve a jobs housing balance as a short term goal and Ion! range planning objective. Therefore, affordable housing projects are reviewed for sitc acceptability, in terms of access to transportation and municipal and commercial services. In 1996, a 344 unit affordable housing project, Villa Loma Apartments, was completed anc available for occupancy. This project is located close to major existing and future employmen Page 25 . CITY OF CARLSBAD 0 0 ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE generators, including a large portion of moderate wage jobs. The site is located within one mile of commercial services and 113 mile from a future community park and day care center. The adjacent roadway, El Camino Real, is a prime arterial and provides transit services. Another 138 affordable rental units have been approved for a location adjacent to the City': prime industrial and office corridor and the future home of Legoland. Laurel Tree Apartment: within close proximity to their employers. Additionally, Laurel Tree Apartments will do more than meet the City's affordable housing goals The proposed project will also create a supportive community environment with enhancec supportive services and recreationkommunity facilities on site. The existing public transportation provides all residents, with adequate access to employmen centers and housing. There are five bus routes running throughout the city. Three of these routes follow major or prime arterials, Highway 101, El Camino Real, and Interstate 5, from north to south. One bus route serves east-west transportation needs and begins at the Oceanside Transit Station, with stops at the El Camino Real Shopping Center, Mira Cost: College, Palomar College, and running east to the Escondido Transit Center. Existing bu: routes provide service throughout the northern part of the City. Additionally, the Coaster Commuter Rail provides service from Oceanside to downtown Sar Diego throughout the day, five days a week. Two Coaster stops are located in the both thc northern and southern portions of Carlsbad. Coaster Connection, a convenient shuttle service provides transportation from the Encinitas and Sorrento Valley Coaster Rail stations to othe NCTD routes. will provide an opportunity for low income Carlsbad employees to obtain affordable hausin! Page 26 e CITY OF CARLSBAC ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE e Map 3: NCTD Bus Routes I @ TRANSFER POINT 8 LANDMARK UNIVERSITY CITY Page 27 . CiTYOFCARLSBAD e * ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Map 3: NCTD Bus Routes Page 28 0 e CITY OF CARLSBAc ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Map 3: NCTD Bus Routes gJm *. z CAMP PENDLETON SAN LUIS REY Page 29 + CITY OF CARLSBAD e e ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Map 3: NCTD Bus Routes 8a€l Route 321 does not provi Sunday service. @ TRANSFER POINT LANDMARK Page 30 0 CITY OF CARLSBAC A b SESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOlCt Map 3: NCTD Bus Routes h P *'.i y .-\., OCEANSIDE 5. Page 31 . CITY OFCARLSBAD 0 ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Sale of Subsidized Housing and Possible Displacement The City of Carlsbad does not own or operate public housing and no public housing developments are proposed for FY 1996-97. Additionally, there are no other HUD assisted o insured housing within the City. Therefore, the City does not anticipate the sale or loss of renta housing from the assisted housing inventory through public housing demolition or conversion tc home ownership during the time frame of this Assessment of Impediments to Fair Housin! Choice. However, as specified in the City’s General Plan Housing Element, the City has adopted a goa to preserve and rehabilitate the City’s existing housing stock, with special attention to housins affordable to lower income households. Property Tax Policies The City has not adopted any property tax relief policies and provisions in its local tax codes. D. Public and Private Since January 1990, the City has contracted with Heartland Human Relations and Fair Housing Association (HHRA) to provide fair housing services. A significant component of the services provided by HHRA is education and outreach activities. HHRA provides information to the general public and City staff and officials about federal and state fair housing laws, as it relates to the public’s rights and responsibilities, actions that constitute discriminatory actions, and appropriate actions to take if there is believed to have been discrimination. Specific activities include conducting seminars for owners, realtors, tenants and other interestec persons to increase community awareness and understanding of fair housing laws; develop, print and distribute literature on fair housing to public; monitor related legislation and provide information to the Housing and Redevelopment Department of the City of Carlsbad; provide consulting services to Housing and Redevelopment Staff on various fair housing issues; anc respond to inquiries related to fair housing from the public. All persons who suspect discrimination are referred to HHRA. HHRA then provides fair housing information and reviews for the legitimacy of the complaint. If illegal discrimination is legitimately suspected, HHRA processes and resolves such discrimination complaints. E. The Administrative Policies Concerning Community Development and Housing Activities, such as Urban Homesteading, Multi-Family Rehabilitation, and Activities Causing Displacement Which Affect Opportunities of Minority Households to Select Housing Inside or Outside Areas of Minority Concentration. No administrative policies or actions were found that would impede fair housing choice. Page 32 1 0 CITY OF CARLSBAC ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOIC€ F. Where There is a Determination of Unlawful Segregation or Other Housins Discrimination by a Court or a Finding of Noncompliance by HUD Regarding Assistec Housing Within a Recipient's Jurisdiction, an Analysis of the Actions Which Coulc Be Taken By the Recipient to Help Remedy the Discriminatory Condition, Includin! Actions Involving the Expenditure of Funds Made Available Under This Part. No such determinations have been made, but the City has strengthened and will continue tc strengthen its efforts against housing discrimination. Page 33 . CITY OF CARLSBAD 9 0 ASSESSMENT OF IMPE IMENTS TO FAIR HOUSING CHOICE SECTION V: RELEVANT CITY PROGRAMS The purpose of this section is to analyze the geographic distribution of the City's major assistec housing programs in relation to low and minority concentration. The City currently has only onl major assisted housing program, the Section 8 Rental Assistance Program. The Section 8 Rental Assistance Program, established through the 1974 Housing Act, i currently the only major subsidized housing program operated by the City of Carlsbad. Th City's Section 8 Program has the ability to serve a total of 503 households. The Program is a demand driven program, where lower-income households have obtainec Section 8 Certificates or Vouchers and must obtain their own housing from the existing dwellin! units in the community. The racial distribution of the participating households is presented her1 to assess the extent to which it impacts the level of racial residential segregation in the City. Table 14 shows each census tract within Carlsbad and the distribution of Section 8 certificate or vouchers within the City. The majority of Section 8 CertificatesNouchers are used withii Census Tract 179.00, which also has the highest concentration of low income and minorit households within the City. Overwhelming, Section 8 participants, whether white or a ethnichacia1 minority, choose ti reside in Census Tract 179.00. This census tract is the oldest neighborhood in Carlsbad an1 contains the majority of the City's multi-family housing stock. Therefore, Census Tract 179.0 is probably the most affordable housing market within Carlsbad. Although most Section 8 participants overwhelming choose to reside in this area, tht distribution of Section 8 participants by ethnichacia1 minorities is not heavily concentrated in an! one census tract. Therefore, the distribution of Section 8 participants by ethnicityhace i: related to the availability of decent and affordable housing. Page 34 0 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Table 14. Distribution of Section 8 CertificatesNouchers Source: City of Carlsbad Section 8 Rental Assistance Program, August 1996. Over time, Census Tract 179.00 has experienced a decrease of overall Section 8 participants. Section 8 participants residing in this census tract decreased by approximately 21 percent. However, the number of minority participants in this area has experienced a slight increase from 1990 to 1994. Table 15 Distribution of Section 8 CertificatesNouchers Over Time Page 35 . CITY OFCARLSBAD 0 0 ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE SECTION VI. ASSESSMENT OF CURRENT FAIR HOUSING PROGRAMS AND ACTIVITIES A. Extent of Housing Discrimination Fair Housing Survey In an attempt to evaluate discriminatory acts in Carlsbad, in September 1994, the City conducted a fair housing survey of Carlsbad residents. The purpose of this survey was ta gather information and to provide educational information. Two-thousand randomly selected households received a copy of the survey; an informational brochure regarding people's rights and responsibilities under Fair Housing laws, detecting housing discrimination, and what to do it discrimination is suspected; and an information request card. The survey was conducted to gather information regarding residents' experiences in obtaining housing in Carlsbad, to gauge the community's perception of fair housing choice within the area, and to identify actions to help reduce housing discrimination. The response rate for the survey was 31 percent (622 households responded out of the 2,OO surveys sent). Overall, nearly all respondents have not experienced discrimination while seeking housing in Carlsbad. Only nine respondents felt that they have experienced discrimination while seeking housing in Carlsbad; the majority (five respondents) felt that ethnicity was the cause. Respondents were asked to identify the degree to which discrimination is a problem in the City of Carlsbad. Almost 40 percent believed that housing discrimination was not a problem. Just over a quarter (27%) felt that it was a minor problem, while one percent felt that it was a major problem. A third (33%) had no opinion. Respondents were also asked to identify important actions that the City could take to help reduce housing discrimination in the City. Education was the main theme of actions suggested by respondents. Numerous verbatim responses were also received that also suggested that no actions should be taken by the City because they believe no discrimination problem exists, too much government and social engineering, and people already have the information and education. It should be noted that although many responses indicated that no housing discrimination has been experienced by the respondents, this survey was sent to persons already living in Carlsbad. Therefore, it does not evaluate responses of persons who were seeking housing in Carlsbad and were not able to obtain housing for various reasons. Even without an indication of housing discrimination issues or the absence of a fair housing integration is not occurring at the rate of minority population expansion in Carlsbad. B. In performing its role in preventing, reducing and eliminating discrimination in housing, the City has a number of ongoing fair housing activities: audit, the locational patterns of racial groups which has emerged is sufficient to indicate Fair Housing Programs and Activities Page 36 0 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE 1. San Dieao Community Housing Resource Board The Community Housing Resource Board (CHRB) was established by HUD to work with the Building Industry Association (BIA) in addressing obstacles to free housing choice and to monitor implementation of the Voluntary Affirmative Marketing Agreement (VAMA). The City contributes staff participation to the Board. 2. Fair Housing Education and Counseling Proaram Since January 1990, the City continues to fund a fair housing education and counseling program administered by Heartland Human Relations and Fair Housing Association. HHRA provides information to the general public and City staff and officials about federal and state fair housing laws, as it relates to the public’s rights and responsibilities, actions that constitute discriminatory actions, and appropriate actions to take if there is believed to have been discrimination. Specific activities include conducting seminars for owners, realtors, tenants and other interested persons to increase community awareness and understanding of fair housing laws; develop, print and distribute literature on fair housing to public; monitor related legislation and provide information to the Housing and Redevelopment Department of the City of Carlsbad: provide consulting services to Housing and Redevelopment Staff on various fair housing issues; and respond to inquiries related to fair housing from the public. All persons who suspect discrimination are referred to HHRA. HHRA then provides fair housing information and reviews for legitimacy of the complaint. If illegal discrimination is legitimately suspected, HHRA processes and resolves such discrimination complaints. 3. Section 8 Rental Assistance Proaram Outreach is made to rental owners for the Section 8 Rental Assistance Program which includes advertising in general circulation newspapers and local real estate and apartment ownei journals. Rental owners and tenants are informed of fair housing law at briefing sessions anc tenants are given discrimination complaint forms. In order promote geographic choice, Section 8 participants are encouraged to seek housinc outside of Census Tract 179.00. Incentives such as the approval of higher rents are offered tc those participants. 4. Housing Element and Consolidated Plan Through the Housing Element and the Consolidated Strategy and Plan for Housing anc Community Development (Consolidated Plan), the City establishes objectives and review: progress towards providing affordable housing for all economic groups throughout Carlsbad. As directed by the Housing Element, the City adopted an ordinance that mandate: development of housing affordable to lower income households. The lnclusionary Housin! ordinance requires that a minimum of 15 percent of all approved residential units in any maste plan, specific plan, or residential subdivision be restricted to and affordable by lower-incomf households. In specific cases, the inclusionary housing requirement may be satisfied througt Page 37 CITY OFCARLSBAD 0 e ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE the payment of an in-lieu housing fee, whkh will he used to increase affordable housing opportunities within the community. lnclusionary units should be built within the residential project whenever reasonably possible. However, inclusionary units are to be located within the same City quadrant as the market rate units. This ordinance is designed to assist in the distribution of such affordable units throughout the City and not to concentrate such units within one specific area of the City. Page 38 . e @ CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE SECTION Vll. CONCLUSION AND RECOMMENDATIONS The results drawn from the Fair Housing Assessment include: e There is one low income census tract within the City of Carlsbad with a high percentage The number of minorities in Census Tract 179.00 has increased by seven percent Private lender loan application denial rates from the one minority and low-income census tract, Census Tract 179.00, were slightly higher than the denial rate for the City Private lender loan applications from minority and low-income census tracts were proportionately less in number. A survey of Carlsbad residents showed that Carlsbad residents generally do not believe Low-income housing programs are designed to promote raciaVethnic balance. Adequate public transportation in Carlsbad does not hinder housing choice. The City's current fair housing services are not complete and there may be a need tc of minorities, Census Tract 179.00. e between 1980 and 1990. but comparable to other census tracts in the City. e e that they have experienced discrimination in obtaining either rental or for-sale housing. e e e expand upon fair housing auditdtesting to determine if discrimination is occurring. B. Recommendations As a result of the Fair Housing Assessment and in an attempt to build upon the City's past anc present fair housing policies and practices, the following activities are recommended: That the Housing and Redevelopment Department: Conduct fair housing auditsltests, as deemed necessary by the City and the fair housins provider, to determine the nature and extent of housing discrimination throughout the City. Utilize the strategies recommended for geographic choice of Section 8 Renta Assistance Program participants, such as those proposing counseling and orientation: regarding housing opportunities in non impacted areas, and providing tours of those areas for certificate and voucher holders. e Consider limiting the use of Section 8 certificates and vouchers to no more than 2( Continue and expand outreach to the community to educate them of their rights an( percent of the units in an existing project. responsibilities regarding fair housing. Page 39 . CITY OFCARLSBAD 0 e ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE e Continue to encourage the development of affordable housing to \ower-income Continue to contract for fair housing counseling and education services with a non-profit households in all parts of the City. 8 fair housing provider. That the non-profit Fair Housing provider: 8 Continue and expand the fair housing outreach efforts of the City of Carlsbad to educate housing providers, tenants, and homeowners of their rights and responsibilities regarding fair housing through periodic seminars, workshops, development of additional written materials, and the use of media. 8 Develop special outreach and education methods to assure that new segments of the Conduct fair housing auditdtests, as deemed necessary by the City and the fair housing population are aware of their rights and responsibilities regarding fair housing. 8 provider, so that the City has a good understanding of the extent of housing discrimination, can measure the success of existing fair housing efforts, and develop new strategies where necessary. 8 Assist state and federal fair housing enforcement agencies by investigating and testing Sponsor in conjunction with other interested organizations an annual Fair Housing Fair fair housing complaints. 8 in April to call attention to the national Fair Housing Month. That the San Diego County Community Housing Resource Board (CHRB): 8 Evaluate its ability to monitor the local building industry through self monitoring vi: Continue and expand the fair housing outreach efforts to educate housing providers telephone and/or an on-site visit. 8 real estate professionals, lending institutions, and the general public of their rights anc responsibilities regarding fair housing. 8 Assist other fair housing providers to provide a training curriculum for building sales Encourage the official participation of the Carlsbad Board of Realtors in the CHRB. agents, other real estate professionals, and lending institutions. 8 Page 40 e 0 CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE APPENDIX A DESCRIPTION OF PROCESS FOR PUBLIC REVIEW AND COMMENT Page 41 ~ CITY OFCARLSBAD 0 e ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE This page is intentionally blank. Page 42 .. e @ CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE Consistent with the City's Citizen Participation Plan, the City made the draft Assessment oi Impediments to Fair Housing Choice for Fiscal Year 1996-97 to 2000-2001 available for public review and comment for the required 30 day period from September 4 to October 4, 1996. A notice was also published in a local general circulation newspaper and notices mailed ta interested parties to inform the public that the City of Carlsbad's draft Assessment 01 Impediments to Fair Housing Choice was available at five various City facilities throughout the community for a 30 day public review and comment period. In addition, the draft Assessmeni of Impediments was available for review to persons and/or organizations requesting a copy oi this document. On November 14, 1996, the Carlsbad Housing Commission held a public meeting to solici comments on the draft Assessment to Impediments. The Housing Commission heard all public fesfimony during this hearing. All citizen comments which were received during the Housing Commission meeting or durin! the public review and comment period are attached as a summary in Appendix B of thi: document. Page 43 CITY OFCARLSBAD @ e ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE This page is intentionally blank. Page 44 e CITY OF CARLSBAD c. e ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE . APPENDIX B SUMMARY OF PUBLIC COMMENTS Page 45 * CITY OF CARLSBAD * e ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE This page is intentionally blank. Page 46 6 r) * CITY OF CARLSBAD ASSESSMENT OF IMPEDIMENTS TO FAIR HOUSING CHOICE No comments received as of November 14, 1996. Page 47