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