HomeMy WebLinkAbout1998-06-16; City Council; 14722; HOUSING ELEMENT SELF-CERTIFICATIONHOUSING ELEMENT SELF-CERTIFICATION
RECOMMENDED ACTION:
By minute motion a) Direct the City Council’s representative to the SANDAG Boarc
approval of the Housing Element Self Certification Report, including the Princip
Guidelines contained within it, and b) Direct City staff to work towards the City’s qua
for housing element self-certification during the current and upcoming housing
ITEM EXPLANATION:
State law stipulates that a new or amended general plan housing element must be rt
and certified by the California Department of Housing and Community Developmen
as to vvhether the element conforms to the extensive requirements of state la
certification is important in the event that the element is legally challenged a’
adequacy. If HCD certifies a housing element there is a rebuttable presumption
courts that the element is legally adequate. This means that the burden of proof VI
with the challenger to prove the inadequacy. On the other hand, if HCD does not cc
element, the rebuttable presumption is that the element is not legally adequate. The
of proof would then lie with the City to prove it is adequate. Therefore, a failure tc
certification from HCD makes an element much more vulnerable to successfi
challenge. Case law has established that if the Housing Element (or any elemc
general plan) is found to be legally inadequate, then the entire general plan is
inadequate, with the possible result that no development could occur within the juri
until the deficiencies are remedied. Consequently, the successful certificaltior
updated or amended housing element is critically important to a jurisdiction’s la
planning, and development activities.
By state law, all San Diego jurisdictions are required to comprehensively upda
housing elements by June 1999.
certification from HCD can be a confrontational, time-consuming, and onerous pr
This was Carlsbad’s experience during 1991 and 1992 with the adoption and certific
our current housing element. Other jurisdictions in San Diego county have yet tc
state certification for their last updates.
PAGE 2 oF AGENDRiLL No. I~~V p 0
state, if it chooses to do so. In addition, a jurisdiction must go to the state if it is u
make the required findings. The pilot program addresses two dive-year housing qc%
current cycle ends in June 1999 and the next cycle would end in June 2004.
requires somewhat differing findings for the two cycles.
The bill also created a San Diego Housing Element Advisory Committee whose cha
develop methodologies, guidelines, and principles to refine how the required finding!
made. Council Member Julie Nygaard is the chair of the Advisory Committee. ME
SANDAG, its membership consists of elected officials from other juris
representatives of the banking and building industries, housing advocates, and SI
state HCD. In the months since the bill became effective the Advisory Commil
worked hard to build consensus for the required methodologies, guidelines, and pri
A draft document containing the requirements was recently produced and reviewe
the interested parties, including City staff. The final document is targeted to be
before the SANDAG Board for approval at the Board's June, 1998 meeting. Copic
draft document are available in the Planning Department
While tlhere has been considerable give-and-take in the formulation of the methoc
guidelines, and principles, staff believes the final product is sound. However, quah
self-certification will not be easy during either the current or next cycle. For example
the required findings for this cycle is that the City has met performance ot
(established by the methodologies) for producing housing for low and very low
families. Carlsbad has not yet met this performance objective and we have little mc
a year left in this cycle in which to do so. Nevertheless, staff recommends that
Council 1) direct its representative to the SANDAG Board to vote approval of the fi
certification report and guidelines and 2) direct City staff to pursue qualifying the Cit!
certification at the ends of both this and the next cycle.
Additional information about housing element update cycles, the provisions of AB 1
findings, and a discussion of the pros and cons of participating in self-certifica
contained in Exhibit 1.
FISCAL IMPACT:
None with this action.
EXHIBITS
1. Memorandum to the City Manager, dated May 5, 1998
0 0 E.
MAY 5,1998
TO:
FROM: Principal Planner
CITY MANAGER AND CITY COUNCIL
HOUSINGr ELEMENT SELF-CERTIFICATION
This memorandum is to provide additional information regarding the housing element sel
certification process resulting from AB. 1715. The City Council is being asked 1) to direct ii
representative to the SANDAG Board to vote approval of the Housing Element Self Certificatio
Report, including the Principles and Guidelines contained within it, and 2) to direct City staff t
work towards the City’s qualification for housing element self-certification during the currei
and upcoming housing element cycles.
This memorandum provides additional information on the following topics:
1.
2.
3.
1.
The state requires all cities and counties to prepare a comprehensive revision of the housin
elements of their general plans every five years. Approximately one-fifth of the state’s 500 .
jurisdictions begin this cycle each year. The member jurisdictions of the San Diego Associatio
of Governments began the current cycle (referred to as “Cycle 2”) on July 1, 199 1. Cycle 2 wa
originally supposed to end five years later on July 30, 1996, however the state legislatur
extended the cycle and it is now scheduled to end on June 30, 1999. The next cycle (“Cycle 3”
will run from July 1, 1999 until June 30,2004. This will be followed by Cycle 4. Please refer tl
Figure 1 : “Housing Element Cycles”.
Prior to the beginning of each cycle local jurisdictions are supposed to 1) adopt new housiq
elements and 2) submit the revised element to the state Department of Housing and Communit,
Development for certification as to its substantial compliance with state housing law. Thu:
Carlsbad is to revise it’s current element (adopted in 1991) and have the state review the updat
prior to July 1, 1999 and the beginning of Cycle 3. However, in lieu of having the state revie\
the revision, A.B. 1715 now gives each San Diego jurisdiction the opportunity to self-certif
compliance with the law, provided the it can make four findings required by the bill. Thes
findings are discussed in more detail in the next section. Similarly, at the end of Cycle 2
Carlsbad again will be required to update its housing element prior to July 1, 2004 and th
beginning of Cycle 4.
Housing element update cycles, as established by state law
An outline of the major provisnons of A.B. 1715, the self-certification bill.
A discussion of the pros and cons of self-certification
Discussion of the Housing Element Cycles as Established by State Law
B CD =t cL e.oq=t--'a,m -4% zzzw 7wggs.g 22% 09%
e" -o wv4 3 s we E@ g L w "r g g g g E g o= -$?e. m g.q g r: $3 5 "pJ go 2- 5 9g 5 Zne.2 ?E
rr s.g pg'5z E.$ q.=v,(D(De" gmm 28% z osg a 5' 89,. I gr
tr *:%? , , "O 5.
/@ ~ 2 3gqzs 3 8 a* 2.2 s.EoG WZm(D 0 gg Q =$.& a>q 3~ 79s ?> $gT ,h, E& -rS 0 5rnQ 7/95 -3.gsg smw E-
W? mi; e: %g -4 %E$. ;$
g$* iL-1 g ,a 2. e e.;
0' E 2 5' g- m 2c.p mag - $e ~ ~ I gbb 5.g w %;I 52 OZ Is E
I+ 2G35.zn $? 4
3 9 S"! tr 8BQB" ~ '
3 (D 5% m= 3$&$ n i @ 6' GB?'$. 1x1
I:i $"e rrp.g5guQ$ s.282 g z%>gzg3.(D ppg 41 3 3.9 I-1
qo ey4 c gag gggg 5' 8Wpg G.2 5 $.S "I /F j pgga & dd g pa%?$ - pg; e+gG% -9mw 5', g 2 z (D - 0 v) :.ST
Om (D 1 m Q eZb$g :$, GI= s 0 p5'rE.w k$-- - 0 g.2.E" 009 3 2 g.g Z$ .mQ%9gs.x-m
(D -.5-c g =!S'm 5 3a Fg Pe: ;-g
v) rc g. 1 gv) EL22 0 mG 0 rsg n s "r2gE0-TwoX 5. P, $' g y Km a pw?$ z;%.(De.w
2 3 "f? f.g &g
SP, e (D g %@Q
g.zb (D g- 2 G. 9; g
to bQ Q; 4 7/90 -
qgq&-bai " L %"-@ 0s g2 %s 9
7/91 g;&$ n,
8 2g ;8i
7/92 2 2%
'h v, II
3 8 %. ~: ~ 7/93 ww =:
Q,r; - e
B b4, j:
7/94
$83
9s.; 28 ss $98 I,, 7/96
I
i 7/97 --. $S oo I
2- g E g.g j 7/98
tr w i;' OwrnQ =
l2 &.a g% g$ %.+3$ i 7/99
(D -. Es rt- g 3 3 bL I' , I 7/00
0
g $%$% &p 2.F v) s>F%$ r!
I-!
rt- 8 5 B, S i 7/01 .YJ 5 m k - z 3
%? B czo~g.(D(D 85s $ ;ai 7/02--
7/03 a 8 *g
%x rn
"a
18 ?. 1-1
t
7/04 I &?-a
'4 I 'P 7/05 -- -
- Fair SharelRegional Share Established
I= H.E. Revision No.2
--
--
--
--
-- H.E. Revision No. 3 (original date) . --
II H.E. Revision No. 3 (revised date)
--~
--
--
I H.E. Revision No. 4
HOUSING ELEMENT S EtF -CERTIFICATION 0
MAY 5,1998
Page 2
2.
The housing element self-certification criteria (findings to be made) set forth in A.B.171
(Section 65585.1 of the Government Code) for the next cycle are:
Criterion 1 :
A. B. 1715 Provisions for Self-Certification
The jurisdiction’s adopted housing element or amendment substantially complit
with the provisions of state housing element law.
This criterion means that before June 30, 1999 and June 30, 2004 jurisdictior
choosing self-certification must prepare updated housing elements with the sm
content and analysis as is required of those who seek certification by the state.
Criterion 2: For the third housing element revision (Cycle 3), the jurisdiction met it fair sharl
of the regional housing needs for the second housing element cycle as determine,
by SANDAG.
This criterion means that in order to self-certify the element prepared for 1999, ~
jurisdiction must have met the performance objective for providing housin;
opportunities for low and very-low income housing established in 1990 ii
SANDAG’s Regional Housing Needs Statement. This performance must have beel
achieved between July 1, 1991 and June 30, 1999. The fair share objective may bi
met by a variety of housing programs, including new construction, acquisition
rehabilitation, rental or ownership assistance, and preservation of existing stock.
Criterion 3: The jurisdiction must provide a statement regarding how its adopted housin;
element addresses the dispersion of lower-income housing within the jurisdictio fi
documenting that additional affordable housing opportunities will not be develope,
only in areas where concentrations of lower-income households already exisi
taking into consideration necessary public facilities and infrastructure.
‘The updated elements €or 1999 and 2004 would contain this information.
Criterion 4: No local government actions or policies prevent the development of the site:
identijied in the element for lower-income housing or accommodation of tht
jurisdiction’s share of the total regional housing need.
This criterion emphasizes requirements of state housing element law to avoic
government actions which impede the construction of housing.
The criteria for self certification for the fourth housing element update prior to 2004 are the samt
criteria as above, with one exception. The performance objectives set out in criterion 2 art
modified for 2004. Instead of simply using SANDAG’s 1990 Regional Housing Need:
HOUSING ELEMENT S m. -CERTIFICATION 0
MAY 5,1998
Page 3
Statement, the performance objective for each city is developed from a methodology which take
into consideration the available financial resources and availability of regulatory measures. Th
methodology was developed by the SANDAG Housing Element Advisory Committee over th
last year, as set out in the group’s document “Housing Element Self-certification Report”. Thi
document will be taken before the SANDAG Board for approval (tentatively set for the Board’
June 1998 meeting). This document also provides principles and guidelines for evaluating wk
local housing programs would receive credit towards the housing performance objectives. On
other change required by A.B. 1715 is that the performance objectives must also address th
housing needs of a new income group, the “extremely low” income household, defined a
households earning no more than 30% of the county median income. This would be in additio
to the low and very-low income groups already identified under the 1990 “fair share” objectives.
3.
This section is structured as a two sets of arguments, reasons for participating in self-certificatio
and reasons not to participate. Within each set are individual points and each point is provide
with a rebuttal statement. At the end of the section are several points worth considering whic
are neither “pro” nor “con”.
Reasons For Participating
1. Avoid State HCD Certification: The original purpose for creating A.B. 17 15 was to provid
a means by which jurisdictions could adopt new Housing Elements without going throug
the lengthy, frustrating, and often expensive process of seeking state HCD certification, a
called for under the law. After Carlsbad’s current element was drafted, it took over a year a
additional effort negotiating with HCD staff before we obtained certification. The effoi
involved hundreds of additional staff hours, trips to Sacramento, and costs for consultar
services. Under A.B.1715, when a jurisdiction satisfies four criteria, it may self-certify it
element. Self certification may yield staff and dollar cost savings.
Rebuttal: Self certijication would involve its own costs in terms of added complexities tl
programs, deeper subsidies for programs, and administrative burdens. It is unclear ifstate o
self-certlJication would cost the City more.
2. Greater Flexibility in Programs to Meet Objectives: Currently regional share needs must b
met only through new construction. Under self-certification, a much broader range a
programs can be used to meet numerical objectives. In addition to new constmctior
eighteen types of programs are identified which can be counted. Some of these are program
in which the City is already engaged, but cannot currently receive regional share “credit’
Some of these programs could yield more units for the same dollar costs as new constructior
thus stretching available funds. Last, the self-certification program provides for a “slidin
scale” of extra and partial credits that vary by type of program, length of tenure, and numbe
Pros and Cons of Participating in Self-certification
!R a HOUSING ELEMENT S -CERTIFICATION
MAY 5,1998
Page 4
of bedrooms in units. Based upon the way we have carried out many of our programs w
would qualify for more extra credits than many jurisdictions.
Rebuttal: Greater flexibility is attended by fairly complex rules and guidelines about hol
these programs must be operated in order to qua@. Some of Carlsbad current program
might have to be modiJied somewhat to qualifi. For example, the current way we use secon
dwelling units in inclusionary housing would not qualifi under the guidelines. Th
complexity would mean more d$ficulty in administrative burden (record keeping, reportinj
etc). While we would qualifi for the extra credits for some program, other programs w
currently have, or might want to have in the future, might qua@ only for partial credits. 1
order to optimize credits, a careful examination of housing programs would be needed. Th
desire to accrue credits for self-certification could weight disproportionately against othe
important factors in deciding what housing programs and priorities to pursue,
3. Smaller Numerical Obiectives Under Self Certification: Regional Share Housing Needs fc
our current element call for 1,066 units of low-income housing and 1,443 units of very-lorn
income housing (2,509 units of “lower” income), all of which must be met by ne\
construction. Under self-certification numerical performance objectives would be smallei
For the housing cycle ending in 1999, the performance objective is the “fair share” numbe
identified in I990 by SANDAG, which is 1, 125 “housing opportunities” sf “lower income
housing. The finall 2004 Objective cannot b
determined yet due to the way the formulas work. However, the preliminary number is 66
units. A variety of programs can be counted. The 2004 objective is determined, in part, b
the progress we made from 1991 - 1996, (the final counts of which are still pending) and, i
part, by the total housing stock we will have in 2004). For 2004 the objective is furthe
broken out by three income groups.
Rebuttal: Although the objectives for 2004 appear quite small in comparison, the overai
objective must be broken into components for low-income (41 %), very low-income (32%
and extremely low-income (27%). The extremely low group is new, defined as incomes beloi
30% of county median income. Subsidies necessary for the very low and extremely-lo1
income groups will be great and make attaining the performance objective more d@cui
than housing for low income only. Though smaller numerically, these objectives will not b
easy to meet.
4. Commonality with Proposed Amendments to Inclusionary Ordinance: A number of th
changes staff is considering for our inclusionary housing ordinance are in keeping with th
things that are part of the self-certification program. For example: extending the definition
for targeted income groups to include deeper subsidies; incorporating some form of slidin
scale or extra credit “offsets” for certain types of programs/projects; and allowing credits fa
solutions other than new construction in certain circumstances.
A variety of programs can be counted.
HOUSING ELEMENT S @L -CERTIFICATION 0
MAY 5,1998
Page 5
Rebuttal: We should not let self-certification dictate where we want to go in these area,
Staff discussions to date have not taken things as far as is called for by self certification..
Reasons for Not Participating
1. The Tail Shouldn’t Wag the Dog: In trying to qualify for self certification we could end u
moving from programs that are optimized for Carlsbad needs, policies, and sensibilities, i
favor of“ things that may not be best for Carlsbad. We should establish our program
independently of the influence of self-certification.
Rebuttal: The great array of programs provided under self-certification includes most of th
things jurisdictions are doing throughout the region. Carlsbad can pick and choose POT
among these programs to create a custom housing program. Much of what we currently d
already would qual& for credit. Where minor changes might be necessary to meet the selj
certipcation guidelines, it is because the consensus of the housing experts in the region fed
that such changes would make for more effective programs. We are already considerin<
making changes to inclusionary housing regulations, so why not make them as compatible a
possible with self-certification?
2. Deeper Subsidies and a New Target Group: The performance objectives for 2004 call fo
breaking out the over-all objective into “proportionality” with three income groups: low, ver
low, and extremely low-income households. The definitions of affordability for low and ver
low are changed under self-certification to require deeper subsidies. In addition there is
new requirement for “extremely low” income, with an affordability level of 30% of 30% o
median income. These changes will take a significant toll on resources and will result in fa
fewer units being produced. In particular, the extremely low-income objective may simpl,
be impossible to meet as there are virtually no federal programs targeted at this level.
Rebuttal: The 2004 performance objectives were developed out of a consideration for th
resources that our best guess says are likely to be available through 2004, plus (
consideration of what jurisdictions have actually been able to produce this cycle (1991
1996), adjusted for the additional costs that result from the changed definitions. Yes, th
definitions will result in deeper subsidies being needed. The numerical objectives are mucI
smaller than the real, known need and represent: a) an attempt to provide some degree c
service to a group that is not always currently served, and b) a rational and realisti
appraisal of what a committed agency may feasibly achieve. Nobody said it would be easy.
3. Increased Administrative Burden: There are a host of rules and guidelines that would pertai
to the programs allowed under self-certification. There would also be increased and mor
detailed reporting requirements. These things may mean an increased administrative burder
costly in terms of staff time and budget.
HOUSING ELEMENT SE, CE. -CERTIFICATION 0
MAY 5,1998
Page 6
Rebuttal: There may be some additional “set-up ” efforts needed for accounting systems an
some additional time for creating reports under inclusionary. However, an accounting 6
housing programs is already a part of most funding programs, as well as housing elemer
law. Once the accounting systems are set up there should be no significant addition6
burden to an agency that keeps good records as it rolls along. Even if there are som
additional efforts required, the benefit of not having to certifi through HCD outweigh th
cost.
4. It Would Force Modifications to our Existing Programs: The Guidelines and Principles use
by the self-certification program would necessitate changes to some of the City’s existin
programs. One example is the use of “second units” as an inclusionary program. In order t
be credited for self-certification, second units would have to be treated as if they were
public lhousing program, thus imposing certain conditions that would make the prograr
much less attractive to builders to offer. Conditions might include having to verify tenar
incomes. There may be other examples. Bringing programs into compliance with th
Guidelines and Principles may create difficulties for some projects that are in the pipeline an
may create work demands on staff to effect the changes.
Rebuttal: Yes, some changes may be necessary. However, the Housing Commission an
others have already expressed concerns about the way second units are used in inclusionar
housing. Responses to these concerns would be in keeping with the self-certlJication rule2
and may need to come about with or without self-certification. In general, the efforts neede
to bring programs into conformance with self-certijkation are worth the benefits selj
certification brings to the City.
Observations and Issues Neither Pro Nor Con
1. Active pursuit of self-certification is necessary to make it work. Attaining the performanc
objectives of self-certification will not be easy. It will likely require a concerted effort t
target resources and focus programs to attain the credits needed. Progress through Apr
1998 has attained less than 60% of the objective for this current cycle. Attaining th
objectives for the next cycle will be equally challenging. It won’t just happen.
2. The “extremely-low-income” obiectives will be especially tough for next cycle. Th
perforrriance objective for extremely low income doesn’t pertain to the current cyclt
However, Federal and State funding programs targeted to these groups are virtually non
existent. In order for the City to make this objective by 2004, it will have to get creative wit
its own resources, which may have implications for how City resources are used for othe
objectives. This is an area of significant need, however, i4 fact taken into consideration by th
SANDAG Housing Advisory Committee when it decided to focus on this new group.
HOUSING ELEMENT S klE -CERTIFICATION 0
MAY 5,1998
Page 7
3. Amendments to our inclusionary ordinance should complement self-certification, if sell
certification is a priority. We are considering amendments to our inclusionary ordinance. I
we are not interested in self-certification we can ignore it. If we are interested in it, howevei
it would be a mistake to amend inclusionary in such a way that we have to keep separat
books on what “counts” under the two programs. That would be an administrative burden.
4. We must “encumber” redevelopment set-aside funds by 1999 or accrue penalties for non-use
A factor in the formula for the final performance objective for 2004 is the “Unencumbere(
Redevellopment Funds” factor. Units are added to the over-all performance objectives i
certain levels of funds are not encumbered by the end of FY 1999. This has not been th
problem for us that it has been for some other jurisdictions. We should assure it doesn’
become one in the future by not carrying over large sums of unencumbered set-aside funds.
Conclusion
All things considered, staff recommends that the City pursue trying to qualify for self
certification. Due to the short amount of time left this housing element cycle, it may be that w
will not qualifl- this time. Next cycle we may be more successful. In either case, there is nothin;
to lose. Should we fail to self-certify we will end up going to the state. This is the same optioi
we would have if we choose not to try for self-certification.
If you have any questions please let me know.
--=h-d&-+q--z&&b
DENNIS A. TURNER
L