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HomeMy WebLinkAbout1999-06-15; City Council; 15265; Regional Housing Needs Statement. - h. CITY OF CARLSBAD - AGENDA BILL AB# 15365 TITLE: MTG. 6-/5-+? REGIONAL HOUSING NEEDS STATEMENT DEPT. PLN RECOMMENDED ACTION: That the City Council ACCEPT the SANDAG-prepared draft Regional Housing Needs Statement (RHNS) for use in preparing an amended housing element of the General Plan and ADVISE the City’s representative to the SANDAG Board that any of the three methodologies proposed in the RUNS for calculating “regional share” needs are acceptable. ITEM EXPLANATION: As part of the five-year housing element cycle mandated by state law, each regional Council of Governments is required to prepare an assessment of the region’s need for new housing for the upcoming five-year period This assessment of future need is based upon the population growth being forecast for the region over the five years. A second part of the assessment is to allocate to each local jurisdiction its share of that regional need for housing. The jurisdiction is to use this “regional share” number in preparing the needs analysis for its own housing element update. In addition, the over-all figure of housing need is broken down by the needs of four income groups: very-low, low, moderate, and “other” (i.e.: above moderate) income households. In response to the over-all housing need and the needs of the four income groups (plus other needs identified by the local agency) the local housing element is to achieve two overarching tasks: a) establish numerical objectives and implementing programs to provide for the “maximum number of housing units, by income category, that can be constructed, rehabilitated, and conserved over a five-year time period” (Govt. Code Section 65583), and b) identify adequate sites (properly-zoned, vacant land) on which to locate new housing for a of the identified needs.. SANDAG has recently released for public comment its 130-page Regional Housing Needs Statement (RHNS) for the current housing element cycle. Among a host of data useful in preparing local housing elements, it contains the over-all regional share number for each San Diego jurisdiction. It also includes three alternative methodologies to breakout the over-all number into the four income groups. Only one methodology will be contained in the final document, however. The alternatives present three approaches to distributing the low- and very low-income housing needs of the region so that there would be no over-concentration of low-income housing in any one community of the region. The differences between the methods is in the amount of lower-income housing that would be assigned to each jurisdiction. SANDAG desires comments on the three methodologies so that one may be chosen for the final RHNS. These alternatives were identified by the region’s Housing Element Advisory Committee (operating out of SANDAG), a group consisting of elected officials, housing advocates, industry representatives, and other parties interested in housing -. The group is chaired by Council Member Julie Nygaard. Comments are due by June 4. The SANDAG Board will take up the RHNS, including the selection of a final regional share methodology, at its regular meeting on June 25, 1999. Proorams State law requires local jurisdictions to update their housing elements every five years and to submit them to the State Department of Housing and Community Development (HCD) for a determination of substantial compliance with state law (a process commonly referred to as “certification”). State legislation in 1995 created an opportunity for jurisdictions within the San Diego region to participate in a pilot program to bypass the state review process and, instead, self-certify their housing elements by meeting specific criteria. Among these criteria are numerical performance standards for producing housing opportunities for low-, very low-, and extremely low-income households. It is a general truth of the affordable housing industry that the resources that are available to most jurisdictions are generally PAGE 2 OF AGENDA B,: NO. 1% &bs - inadequate to respond to all of the housing needs for lower income households. However, the self- certification performance standards factor in the availability of financial resources, and, thus, while remaining extremely challenging, are reasonably achievable. Consequently, they are relatively small numerically in comparison to the regional share needs numbers that would result under any of the three methodologies being proposed in the RHNS. (Please see Exhibit 1 to see this comparison.) The City Council has previously directed staff to work towards qualifying the City for self-certification during the next five-years, and the draft housing element staff has prepared includes numerical objectives in keeping with that direction. State housing element law recognizes that resources may be inadequate to respond to all of the identified needs and only requires that programs identify the maximum number of housing opportunities that can actually be achieved. Therefore, the programs in our housing element would not have to be modified to correspond to whichever of the regional share methodologies is eventually adopted. Adequate Sites Under whichever methodology is finally adopted, the City wiJl still have to identify adequate sites to accommodate not only the total amount of regional share housing, but also housing by income group. Generally, this identification by income group is achieved by showing a range of allowed housing densities throughout the City. We have a surplus of vacant land to accommodate the over-all number of units being assigned to us and staff believes we have a sufficient variety of density ranges to accommodate the low- and very low- income regional share numbers under any of the three proposed methodologies. In addition, Council Policy 43 allows the City to provide density bonuses of whatever magnitude are necessary to make an affordable housing project work. Our track record with Council Policy 43 demonstrates our commitment to this principle. Thus, the City can meet both requirements (programs and adequate sites) under all three regional share alternatives. Recently staff set out the above approach to the alternative regional share methodologies in a letter to the State Department of Housing and Community Development (HCD). We have received an oral response from state officials that this approach is both reasonable and acceptable to the state (a letter to this effect has been promised, but not yet received). Staff has critically reviewed the draft Regional Housing Needs Statement. It is well done and provides a wealth of information of importance to producing a local housing element. In fact, staff has already made extensive use of the data contained in it. Therefore it is staffs recommendation that the Council accept the draft Regional Housing Needs Statement for use in preparing a revised housing element and advise the Council’s representative to the SANDAG Board to support its adoption, including any of the three regional share methodologies. FISCAL IMPACT: None. EXHIBITS: 1. Comparison of Regional Share Needs (Under Three Methodologies) With Self Certification Objectives. 2. Letter, dated June 7, 1999, from Department of Housing and Community Development, Division of Housing Policy. . EXHIBIT 1 Comparison of Regional Share Needs (Under Three Methodologies) With Self-Certification Objectives Regional Share Needs Alternatives I Alternative 1 I Alternative 2 I Group / , Alternative 3 I Percentage I I Percentage I Tntal I 1 Total 6.214 1 . “.“. Total 6,214 6,214 Above Mod. 2,424 2,009 1,591 Moderate 1,429 1,431 1,436 Very El : :!EE 1 38% 1 :$Y 1 45% 1 : :E 1 51% I Self-Certification Objectives* (Excludes a Moderate or Above Moderate Component) ITotal 1 629 1 l These numbers are estimates. There are several factors involved in producing the numbers, some of which are not yet known. For example one factor is the total amount of housing which will exist in the City in 2004. This estimate is based upon SANDAG’s forecast for 2004. Comparison of Regional Share Alternatives With Self Cert. Objectives (lower-income groups only) 3,500 3,181 3,000 ln 2,500 z 3 2,000 z ‘g 1,500 ,o A 1,000 0 Alt 2 Alt 3 Self Cert 3 DEPARTMENT OF HOUSING AIW COMMUNITY DEVELOPiVlENl , Dh-bipn of Housing Poiicy Development I 9~ nhd spcn, .suikt 430 =HIBIT 2 P 0 Rex 9520153 Sscruw,tlo. CA 94252-2053 http:~~hnusing.bed.ca.#rw (316) In-3 176 FAX (916) 327-2643 June 7,1999 Mr. Michael J. Holzmiller Planning Director City of Carlsbad 2075 Las Pahnas Drive , Carlsbad, California 92009- 1576 Dear Mr. Holzmiller: Thank you for your recent letter regarding regional share housing needs for SANDAG jurisdictions. Your letter notes that the SANDAG Board recently requested the Housing Element Advisory Committee develop a methodology to ensure the distribution of need seeks to reduce the concentration of lower-income households in jurisdictions which already have a disproportionately high proportion OF lower-income households. In considering possible alternative methodologies you. have asked for clarification from the State Department of Housing and Community Development on how local governments are to plan to address their , allocation within their housing elements. As you note, local governments must plan to accommodate their share of the regional housing need by identifying sufficient sites which will be made available through appropriate zoning and development standards and with public services and facilities. Sites must be identified which can accommodate the entire regional need allocation by income level. However, when a local government establishes its quantified objectives, it may consider available resources and constraints when determining the maximum number of units expected to be constructed, rehabilitated, or conserved. The statute does specifically recognize that for the purposes of establishing quantified objectives it is recognized that needs may exceed available rcsourees. As a result, while a housing element must include an identification of sites commensurate with the total regional share aUocation, the quantified objectives for new construction may be ICSS than the projected need in consider&on of available resources. In the SANDAG region, local governments may also choose to participate in the pilot self- certification. program, which identifies numerical performance objectives. The self certification objectives were established based on a methodology which recognized the availability of financial resources and regulatory measures that local jurisdictions can use to provide additional affordable lower-income housing (Section 65585.1(a)). It does not appear that a change in the income distribution of Carlsbad’s regional housing need allocation would alter the City’s self-certification objective for the next planning period. I hope this information is helpful to you. If you would like to discuss this fW]er or have any questions, please feel f!ree to contact me or Camilla Cleat-y, of our staff, at (916) 323-3 185. Sincerely, Cathy B. &e.swell Acting Deputy Director TOTM P-02