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HomeMy WebLinkAbout2004-01-13; City Council; 17460; Annual Housing Production Report FY 2003AB# 17,460 MTG. 1-13-04 DEPT. PLN CITY OF CARLSBAD -AGENDA BILL T,ITLE: ANNUAL HOUSING PRODUCTION REPORT FISCAL YEAR 2003 DEPT. HD. CITY ATTY. & CITY MGR RECOMMENDED ACTION: That the City Council ADOPT Resolution No. 2004-013 , ACCEPTING the Annual Housing Production Report for Fiscal Year 2002-2003. ITEM EXPLANATION: Report Description This agenda bill brings to the City Council staffs tenth annual report on the progress Carlsbad is making in housing production. The report is an information item only and complies with the state law requirement for an annual housing report to the legislative body. No action or environmental review is required. Consisting of the attached memorandum to the City Manager, the annual housing production report focuses on new home production during fiscal year 2002-2003 (FY 2003), the fourth year of the current housing cycle that began July 1, 1999, and was to end June 30, 2004. However, legislation signed by Governor Davis in 2003 has added a sixth year to the cycle, extending it through June 30, 2005. Through tables and text, the attached report provides: 0 Statistical data for both market-rate and publicly assisted homes. 0 Affordability of the housing produced by income group. 0 Comparison of production in this fourth year of the current housing cycle with overall objectives for the entire cycle. 0 Observations and conclusions about the housing production data. Report Hishlishts on Housins Production In FY 2003: 0 0 0 Builders completed 725 new homes in Carlsbad, compared to 1,460 units built in FY 2002 and 2,097 units completed in FY 2001. The median sales price for all for-sale units was $574,900, up $1 15,900 from the previous fiscal year. Developers built 69 units affordable to low-income households, including 52 apartments. During the first four years of the current housing cycle (July 1, 1999 - June 30, 2003): 0 0 0 Builders completed 6,196 units in Carlsbad, 85% of which were considered affordable to other- or “up pe r”-i n co m e house ho I d s . The City approved for occupancy 1,224 new condominiums and 720 new apartments. Carlsbad’s lower-income housing stock increased by 670 units. resulted from the City’s inclusionary requirements and required city financial assistance. Most of these units Report Conclusions Carlsbad continues to see significant results from its commitment to the development of housing affordable to lower-income families. This commitment is evidenced in its policy framework, the allocation of its own resources, and its efforts to pursue creative partnerships with the private sector PAGE 2 OF AGENDA BILL NO. 17 I 460 in all aspects of housing production. The fact that the market continues to strongly support the development of housing primarily affordable to upper-income households is a key reason why the City must maintain its commitment to fully implement the lnclusionary Housing Ordinance. Testimony to this is the 670 lower-income units produced so far in this housing cycle and the several hundred lower-income units now under construction, most of which are the result of inclusionary requirements. Staff recommends the City Council accept this housing report. The report will be forwarded to the Governor’s Office of Planning and Research and the California Department of Housing and Community Development as required by law. ENVl RO N MENTAL: This is an information item only that does not have the potential to physically impact the environment. Therefore, it is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15378. FISCAL IMPACT: None. This is an information report only. EXHl BITS: 1. Memorandum to City Manager from the Planning Director dated November 6, 2003 with the subject: Annual Housing Production Report - Fiscal Year 2003. 2. Resolution No. 2004-013 DEPARTMENT CONTACT: Scott Donnell, (760) 602-461 8, sdonn@ci.carlsbad.ca.us Exhibit 1 NOVEMBER 6,2003 TO: CITY MANAGER VIA Planning Director FROM: Associate Planner DRAFT ANNUAL HOUSING PRODUCTION REPORT - FISCAL YEAR 2003 This document constitutes the tenth annual report describing the City’s progress in producing housing. It describes our progress during the previous fiscal year (July 1, 2002 to June 30, 2003, or FY 2003) in meeting, through the construction of new homes, Carlsbad’s estimated share of the region’s forecasted growth for the four income groups identified in state law. Purpose - The Annual Housing Production Report is prepared pursuant to California Government Code Section 65400 (b)(l) which in part requires an agency to report annually to its legislative body on the progress in meeting its share of regional housing needs. Reporting Period - The report covers housing production in FY 2003, which marks the fourth year of what was originally intended to be a five-year Housing Element cycle. By state law, this cycle began July 1, 1999, and was to end June 30, 2004. However, legislation signed by Governor Davis in 2003 has added a sixth year to the cycle, extending it through June 30, 2005. Format - The City’s production and progress during FY 2003 is reported with data contained in the following nine tables: 0 0 Table 1 defines the four income groups. Tables 2 - 4 set out the qualifying income levels for the four income groups and the corresponding rents and sales prices considered affordable to the income groups during the reporting period. 0 Table 5 provides the counts of new housing built, by income group and housing type. 0 Table 6 highlights the low-income housing built. 0 Tables 7 and 8 provide price information on the market rate homes built. 0 Tables 9 and 10 compare our progress so far to the current housing cycle objectives. Regional Share Needs - The determination of housing need for Carlsbad and all other jurisdictions in California is derived from the Regional Housing Needs Statements prepared by the regional councils of government (COG) before the beginning of each housing cycle. Based upon these assessments of need the local jurisdictions are charged to adopt housing objectives in the housing elements of their general plans. A regional assessment of need is an estimate of the total need for new housing construction throughout the region due to growth forecasted to occur during the five-year cycle. The overall housing need is then broken out by four income groups: very low, low, moderate, and other (or above moderate or upper-income) - all as defined by the federal Department of Housing and Urban Development, or HUD, and the state Department of Housing and Community Development, or HCD. 3 CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Page 2 The regional needs are then allocated to the local jurisdictions on a “regional share” basis, according to models and formulas designed by the COG. Table I shows the regional share estimate of need prepared for Carlsbad for the current housing cycle. It is based, in part, upon the growth that the San region’s COG, estimated for the City in its 2020 Diego Association of Governments (SANDAG), the Regional Growth Forecast. This forecast was prepared in 1998. The combined very low and low-income (“lower”- income) estimate of need is 3,187 units. This equals 51% of the total need for housing through June 2004. As mentioned earlier, the state has extended the housing cycle through June 2005. It is unknown if Table Carlsbades Regional Share Need Estimates For Housing Cycle 1999-2005 Group Definition’ (% of New Construction Needs AMP) (in housing units) very LOW 50% or under 1,770 Low 51 - 80 % 1,417 Moderate 81 - 120% 1,436 1,591 Other Over 120% 6,214 Definitions are from HUD. via the California Department of Housing and Community Development. “AMI is the County Area Median Income. The 2003 San Diego County Area Median Income for a familyoffour is $so.ioo. Definitions of Income Groups - Table 1 also defines each of the four income groups with reference to a percentage of the county area median income (AMI). Defined as the median income for a family of four in a specific geographic area, the AMI changes over time and with location. HCD annually revises the AMI based on HUD data and cost of living issues such as the relationship of housing prices to income. In 2003, however, HCD kept the AMI for San Diego County at $60,100, the same amount as in 2002, after making adjustments based on Census 2000 data. By comparison, the AMI in 2001 was $56,900. Additionally, the area median income is modified to reflect the differences in costs of living throughout California, as the following 2003 AMI information for different counties shows: 0 San Diego: $60,100 0 Orange: $75,600 Shasta: $45,400 Santa Clara: $105,500 Some regions of California, including San Diego County, have high housing costs relative to incomes. In recognition of this factor, HUD increased the income limits in 2003 for the very low and low-income groups in these regions. This potentially enables a larger group of people to qualify for lower-income ‘housing. However, these changes did not have an effect on housing built in Carlsbad; they did not cause the affordability of any housing produced in FY 2003, for example, to change from one income group to another. Furthermore, the housing in the City that was specifically built for low-income families was already restricted to occupancy by that income group. 4 CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Page 3 The income maximums for each income group listed in Table 1 are adjusted for family size so that larger households have higher income limits. Table 2 shows the FY 2003 income limits for very low, low, moderate, and other-income groups for 2, 4, 6, 8, and 10 person households. The income limits in Table 2 correspond to the standard percentages stated in Table 1, with a few adjustments made necessary to recognize our region's housing costs relative to incomes. By way of example, a family of four earning Table 2: FY 2003 Qualifying Limits On Annual Income By Household Sire Persons Per Household 2 4 6 8 10 Income Group Very Low $25,500 $31,900 $37,000 $42,100 $47,204 $40,850 $51,050 $59,200 $67,350 $75,518 Low Moderate $57,700 $72,100 $83,650 $95,150 $106,700 Other >$57,700 >$72,100 >$83,650 >$95,150 >$106,700 Source: "2003 lnwme Limits," state Department of Housing and Community Development, April 9,2003 (Numbers based on HUD inwme date effective February 20,2003). $51,050 is considered to have a low-income, even though the amount is 85% of AMI, or five percent more than the upper limit for low-income families shown in Table 1. Limits are not shown and are not applicable for the other-income group as any income greater than the moderate-income limits would apply. Thus, as shown in Table 2, an upper-income or other four-person household would earn any amount above $72,100 a year. Prices of Affordable Housing - Generally, the federal and state rule is that housing is affordable to a given family if the family pays less than 30% of its monthly income for housing expenses that include the rent or mortgage payment, property taxes, insurance, utilities, and the like. A determination of whether a housing unit is affordable can be easily made for assisted public rental housing and other public housing programs because documentation is maintained on both the individual household's income and the actual cost of the unit in question (typically a rental). A determination of whether market rate housing is affordable according to the 30% rule, on the other hand, presents some challenges. Builders of market rate rental and for-sale housing do not set prices based upon an individual buyer's ability to pay. Rather, the rentdprices are set to what the market will bear. Further, rents and prices do not generally vary with the number of people in the household. For example, market rent for a two-bedroom apartment will remain constant no matter if it is being rented to a I-, 2-, 3-, 4, or 5-person household. So the challenge is how to determine to what income arouD (as opposed to an individual household) a given market rate house is affordable, and to do so based upon the number of bedrooms it has (as opposed to persons). A convention developed in 1993 by member agencies of the San Diego Association of Governments assumes two persons per bedroom. Thus, a two-bedroom unit is assumed to house four people. To determine affordable housing expenses for rentals, the practice is to set thresholds for each income group, using the 30% rule, with adjustments for the number of bedrooms. An additional adjustment is also made for a utility allowance, as required by HUD. Table 3 provides the resulting maximum market rate rental expenses (which include rent and a $28-$54 utility allowance that increases with household Table 3: FY 2003 Qualifying Rent and Utility Expenses Number of bedrooms 1 3 R 4 By Number of Bedrooms Income Group dery Low -ow $925 $1,053 $1,021 $1,276 $1,480 $1,684 $638 $798 $1,442 $1.803 $2,091 $2,379 Moderate 3ther >$1,442 >$1,802 >$2,091 >$2,379 Source: '2003 Income Limits." state Department of Housing and Community Development, April 9.2003; and Carlsbad Housing Authority table on "Lower and Moderate Income Rental Rate Calculations." CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Paae 4 size) for the very low, low, and moderate-income groups for FY 2003. To illustrate, the table shows that for a couple earning $25,500 annually (considered a very low-income per Table Z), a one- bedroom apartment would be considered affordable to them only if the rent and utility expenses combined did not exceed $638 per month, or 30% of their income. For-sale market rate housing is even more complicated for purposes of determining affordability. Neither state nor federal regulations provide a formula to determine affordability. A multitude of factors are potentially involved. First, buyers don’t pay the full price of a house in cash. Instead, they take out one of many types of mortgages, subject to many variables (fixed or variable interest rate, down payment, pay-back period, mortgage insurance, loan origination fees, etc.). In addition, other housing costs must be factored in, including property taxes, insurance, utilities, and homeowners’ association dues. All of these factors are recognized “housing costs” and indirectly affect how much a family can pay each month under the 30%-of-income rule. Only the principal and down payment, however, relate directly to the sales price of the house. All the others are related to financing and operating a home. Lacking guidance from state or federal law, SANDAG member agencies developed a simple formula in 1993 for use in determining the affordability of market rate for-sale houses. The formula, provided below, follows a rule-of-thumb used by many mortgage lending institutions. As with the rental formulas discussed earlier, it was subsequently reviewed and accepted by the SANDAG Board and the California Department of Housing and Community Development. Affordable sales price = 3.0 X maximum-allowed-annual-income for each class, adjusted for bedroom count. Table 4: FY 2003 Qualifying Purchase Price, By Number of Bedrooms I I I 2 3 4 5 Number of Bedrooms income Group I ~~ Very Low $76,500 $95,700 $111,000 $126.300 $141,612 $122,550 $153,150 $177,600 $202,050 $226.554 Moderate $173,100 $216,300 $250,950 $285,450 $320,10C r Other >$173,110 >$216,300 >$250,950 >$285,600 >$320,25( 3X multiplier was developed by an ad hoc committee at SANDAG with subsequent approval by the SANDAG Board in 1993, (There is no formula in state law.) The rule also assumes 2 persons per bedroom to provide a correspondence back to HUD affordability rules based upon per household (as opposed to bedrooms). Since HUD tables do not provide for 12 or more person households, homes with more than 5-bedrooms are treated as if they were 5- bedroom homes. Based upon this formula, Table 4 gives the qualifying purchase price for housing for the different income groups. The table illustrates that a two-bedroom house costing no more than $95,7000 would be the maximum affordable to a very low- income family. This price is three times the $31,900 annual income limit for a very low-income family of four as shown on Table 2. On the other hand, a two-bedroom home costing more than $216,300 would be affordable only to families in the other-income group since the price is more than 120 percent of median income. Determining Affordability - Based on the above information, two variables must be known about a housing unit to determine its affordability: a) the sales price or rent, and b) the number of bedrooms. Staff must collect this information for each individual housing unit. For housing created under one of the City’s housing assistance programs this is relatively easy, as we get the data via the program. On the other hand, for new market rate rentals and for-sale homes, staff must obtain the sales price or rent information directly from the builders. Staff performs this task once a quarter via a voluntary CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Paae 5 Group survey of all newly constructed units. Most builders are cooperative and provide the information we need. A few are not. If the builder is not responsive, staff attempts additional contacts by mail and phone. Regis Homes and Centex Homes are two developers from which staff was unable to obtain any price information. If necessary, we also research Building Department records and County Assessor's data, the latter on the Internet, for any missing information on bedroom counts and sales prices. Single Family Condo- Apart- Duplex Detached minium ment Due to the research and delays involved in documenting prices and rents and assembling data, this report trails the end of the reporting period by a few months. For this reporting period, staff obtained with the quarterly survey and additional research sales prices and rents for all but a few homes. 0 50 0 0 0 Housing Activity and Affordability in FY 2003 - Table 5 and the information below summarize and expand on housing completed in FY 2003. Definitions of terms used in the table and the remainder of the report are as follows: 0 0 17 69 0 0 0 654 0 2 Market Rate Units - Units that received no financial assistance from the City and have no affordability restrictions. Assisted Units - Units that received financial assistance from the City and/or other subsidy sources and have affordability restrictions. Single-family detached - A single home on a single lot, detached from any other unit, except for an attached second dwelling unit. Condominium - A detached or attached home on commonly owned property. Apartment - A unit that can only be rented and not owned. Duplex - Two units on a single lot. Units cannot be individually sold. Second Dwelling Unit - A completely independent dwelling unit on the same lot as a primary residence. A second dwelling unit may be attached to or detached from the primary residence. Table 5: Affordability of Housing Units Coi Market Rate Very Low 0 0 0 0 Low 0 0 2 0 Moderate 0 0 0 0 Other 462 192 0 0 Unknown' 0 0 0 2 Totals 462 192 2 2 structed in FY 2003 Assisted Apartment Second Totals Dwelling Unit 50 17 725 I 'Since the rents chamed for two duplex units could not be obtained, these units were placed in the "unknown" categow. CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Paae 6 I 50 Comments on Housing Production in FY 2003 0 0 Developers built 725 new homes in Carlsbad, compared to 1,460 units built in FY 2002 and 2,097 units completed in FY 2001. The decline in production can be traced to the completion of large developments such as Rancho Carrillo and the lack of new communities where more sizeable development could occur. This will change in FY 2004. 0 Single-family detached dwellings accounted for 66% of the fiscal year's production, condominiums 26%, and apartments 8%. Comments on Housing Affordability in FY 2003 0 0 0 Most (90%) of the housing built was affordable to upper-income households only. New housing for households earning low incomes accounted for 9% (69 units) of production, with the majority of it made possible by the City's inclusionary housing requirements. No very low or moderate-income housing was constructed. Table 6 highlights Carlsbad's newest lower-income housing built. Project Sunny Creek Market rate units Second Dwelling Units Table 6: Low-Income Housing Built in FY 2003 -r Description Sunny Creek Northwest Quadrant Throughout Carlsbad 2 17 Apartments, ranging from studio to three-bedroom units, built to partially satisfy a project's inclusionary housing requirements. Two-bedroom apartments with rents affordable to low-income persons. The units were not built to satisfy inclusionary housing requirements. Small, independent living units located on property with a larger, primary residence. Many of the 17 units built partially satisfied the inclusionary housing requirements of developers. Occupancy Restrictions Available only to persons and families with low incomes. There are no occupancy restrictions with these market rate units. If rented, second dwelling units must be affordable to Iow- income persons. City Assistance None None None 8 CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Page 7 Condominium $322,745 $458,250 $135,505 42.0% All For-Sale Units $459,OOO $574,900 $115,900 25.3% Medians and Extremes - Table 7 compares the median price for for-sale, market rate housing built in FY 2003 and FY 2002. Table 8 provides high and low sales prices during FY 2003. Table 7: Comparisons of Median Sales Prices FY 2002 vs. FY 2003 (Market Rate Units (3nly) [Condominium $265,500 $1,430,000 Sales Price Structure Type I I Low High Median Sales Prices Structure Type wm wm? Change change Housing Units Built FY2000 FY2001 FY2002 FY2003 Total Income Group Very Low 23 138 17 0 178 Low 159 158 106 69 492 Moderate 42 94 75 0 21 1 Other 1,679 1,700 1,255 654 5,288 Unknown' 11 7 7 2 27 lSingleFamily Detached $525,200 $650,000 $124,800 233% I ISingleFamiIy Detached $379,961 $1,995,859 Housing Units Needed Objective Percentage of Objective Achieved 1,770 10% 1,417 35% 1,436 15% 1,591 332% n.a. n.a. Totals 1,914 2,097 1,460 725 6,196 Progress Toward Housing Cycle Objectives - Table 9 below provides the number of dwellings completed during the first four years of the current housing cycle. The table also shows the cumulative progress achieved during those years toward meeting the new housing needs (from Table 1) estimated for the housing cycle over its original five-year term (1999-2004). 6,214 99.7% Comments on Overall Production during the Housing Cycle 0 0 0 The City has already exceeded by over three times its estimated need of other-income units for the entire 1999-2004 housing cycle. Single-family detached dwellings accounted for 63% of all new construction, condominiums 19%, and apartments 12%. In the first four years of the cycle, 720 apartments have been built; more than half (59%) are restricted to occupancy by very low and low-income households. 9 CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Paae 8 Comments on Lower-lncome Production during the Housing Cyde 0 Nearly 700 units have been completed, which is more than 10% of all housing built during the cycle. About 75% of the lower-income housing was produced for low-income households and 25% for very low-income households. Apartments accounted for nearly two-thirds of the lower-income housing built. Most lower-income housing built resulted from lnclusionary Housing Ordinance requirements and required city financial assistance. rable 10 breaks down the types of affordable housing built in the current Housing Cycle. Table 10: Types of Lower-Income Housing Built First Four Years of Current Housing Cycle Second Type of Unit Number of Units Apartments 426 Condominiums 95 Single-family Attached 24 Second Dwelling Units 125 Totals 670 Attached -’- Apartments 63% Conclusions As this report demonstrates, Carlsbad has seen significant results from its commitment to the development of housing affordable to lower-income families. This commitment is evidenced in its policy framework, the allocation of its own resources, and its efforts to pursue creative partnerships with the private sector in all aspects of housing production. While the City has made positive strides in producing lower-income housing, the need for housing affordable to very low, low, and moderate-income families continues to exceed the community’s collective ability to produce it. At the same time, total production of new homes affordable to upper- income groups remains dominant. Clearly, Carlsbad’s private sector continues to produce primarily up-scale housing. A number of factors contribute to this trend: Demand for higher-end housing remains strong; tax incentives for producing more affordable housing are few; land costs are high; and, despite lower, relatively stable or declining interest rates in recent years, per-square-foot production costs remain substantial, so that profit margins on more affordable housing are low. Additionally, when the City considered including a moderate-income requirement as part of its inclusionary housing ordinances in the early 199Os, the requirement was set aside when the private sector assured the City that it would produce moderate-income housing without inclusionary CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Paae 9 requirements. Based upon this assurance, the City made a conscious decision to focus its own resources and efforts on lower-income housing. The industry’s production of moderate-income housing, averaging about 4.5% of annual housing output since July 1994, does not stand up well to its earlier assurances. The fact that the market continues to strongly support the development of housing primarily affordable to upper-income households is a key reason as to why the City must continue its commitment to fully implement the lnclusionary Housing Ordinance. Testimony to this is the 69 low- income units produced during FY 2003, most of which were completed because of Carlsbad’s inclusionary requirements. Through the remainder of the current housing cycle, inclusionary requirements will continue to produce more new housing affordable to lower-income families. Examples of inclusionary projects that will add significantly to the City’s lower-income housing stock in the remainder of the housing cycle are: La Costa Greens - 180 apartments 0 Calavera Hills - 106 apartments 0 Kelly Ranch - 11 1 apartments 0 Bressi Ranch - 100 condominiums Rose Bay - 24 condominiums 0 Village by the Sea - 11 condominiums Because of these projects, Carlsbad will add over 500 lower-income homes and continue to make significant progress toward its estimated regional share needs. scorr DONNELL If 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 Exhibit 2 RESOLUTION NO. 2004-013 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANNUAL HOUSING PRODUCTION REPORT CARLSBAD, CALIFORNIA, ACCEPTING THE FY 2002-2003 WHEREAS, the Housing Element of the General Plan requires that an annual Housing Production Report be prepared and submitted to the local agency, the Governor’s Office of Planning and Research and the California Department of Housing and Community Development; and WHEREAS, the current report covers the period July 1, 2002 to June 30, 2003; and WHEREAS, Carlsbad continues to see significant results from its commitment to the development of housing affordable to lower-income families; and NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitations are true and correct. That the City Council of the City of Carlsbad accepts the report and directs the Planning Director to submit the report to the Governor’s Office of Planning and Research and HCD. PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 13th day Of January , 2004 by the following vote, to wit: AYES:council Members Lewis, Finnila, Kulchin, Hall and Packard NOES: None ATTEST (SEAL) Annual Housing Production Report Fiscal Year 2002-2003City of Carlsbad Planning DepartmentCity of Carlsbad Planning Department 2Report Purpose!!Comply with state lawComply with state law!!Quantify Quantify newnewhome productionhome production!!Discuss affordabilityDiscuss affordability!!Identify progress toward the Regional Identify progress toward the Regional Share Housing Needs AssessmentShare Housing Needs Assessment 3Regional Share Housing Needs Regional Share Housing Needs AssessmentAssessment!!Number of Number of newnewhomes neededhomes needed!!For each 5For each 5--year housing cycleyear housing cycle!!For all income groupsFor all income groups 4Carlsbad’s Housing Needs Housing Cycle 1999-20046,2146,214TotalsTotals1,5911,591OtherOther1,4361,436ModerateModerate1,4171,417LowLow1,7701,770Very LowVery LowNumber of New Number of New Homes NeededHomes NeededIncome Income GroupGroup 5New Housing Built in CarlsbadProduction Summary for FY 02-03!!725 units built725 units built""462 single462 single--family detached homesfamily detached homes""192 condominiums192 condominiums""52 apartments52 apartments!!9% low9% low--income unitsincome units!!Production half of previous yearProduction half of previous year 6New Affordable Housing FY 02-03 HighlightsSunny Creek –50apartments for low-income familiesSecond Dwelling Units – 17second dwelling units for low-income persons 7Median Prices for New Housing FY 02-03 (Market Rate)!!Overall: $574,000Overall: $574,000""(up 25% & $116,000 from prior FY)(up 25% & $116,000 from prior FY)!!SingleSingle--family detached: $650,000family detached: $650,000""(up 24% & $125,000)(up 24% & $125,000)!!Condominium: $458,250Condominium: $458,250""(up 42% & $135,505)(up 42% & $135,505) 8Housing Cycle HighlightsAchievements In The First 4 Years!!6,196 total homes completed6,196 total homes completed""720 apartments720 apartments""1,220 condominiums1,220 condominiums""3,919 single3,919 single--family detached homesfamily detached homes!!670 lower670 lower--income units completedincome units completed""63% apartments63% apartments""25% very low25% very low--income unitsincome units 9Comparing Annual Production in Carlsbad1,9142,0971,46072599-00 00-01 01-02 02-03Fiscal Year 10Future DevelopmentKelly Ranch #800 total units#120 affordable unitsVillages of La Costa#2,400 total units#350 affordable units 11Future DevelopmentCalavera Hills#730 total units#109 affordable unitsProject CirculationProject C irculationThompson-Tabata#260 total units#24 affordable units 12Future DevelopmentBressi Ranch#620 total units#100 affordable unitsVillage by the Sea#65 total units#11 affordable units 13 14Determining Affordability!!Housing = 30% of incomeHousing = 30% of income!!Rent: 30% including utility allowance Rent: 30% including utility allowance !!Purchase price: 3x annual incomePurchase price: 3x annual income!!Bedroom number affects affordability Bedroom number affects affordability !!Assisted vs. market rate Assisted vs. market rate !!Surveys and researchSurveys and research 15The Income Groups305080120% of AMIAMI = 100% ($60,100)AMI = Area Median IncomeVery LowLowModerateOther 16Area Median Income (AMI)!!Determined by HUDDetermined by HUD!!Changes with time and locationChanges with time and location""San Diego County: $60,100San Diego County: $60,100""Santa Clara: $96,000Santa Clara: $96,000""Shasta: $39,200Shasta: $39,200!!Income limits based on AMI change Income limits based on AMI change with family sizewith family size 17Allowable Housing CostsFor a Family of FourFor a Family of Four$216,300$216,300$1,803$1,803$72,100$72,100ModerateModerate$144,300$144,300$1,203$1,203$48,100$48,100LowLow$90,150$90,150$751$751$30,050$30,050Very LowVery LowMax Max Purchase Purchase Price Price MaxMaxRentRent**Max Max IncomeIncomeIncome Income GroupGroup*Rent includes utility expenses 18New Housing Built in CarlsbadFY 02-03 (By Income Group)!!Very LowVery Low––0 units0 units!!LowLow––69 units69 units!!ModerateModerate––0 units0 units!!OtherOther––654 units654 unitsVery Low0%Low10%Moderate0%Other90% 19New Housing Built in CarlsbadFY 02-03 (By Type)462192521720100200300400500Number of HomesSFD Condo Apt SDU DuplexTotal = 725 units