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HomeMy WebLinkAbout2009-03-24; City Council; 19754; Housing Production Element Implementation reportCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 19,754 03/24/09 PLN Annual Housing Production and Housing Element Implementation Report for January 2008 - December 2008 DEPT. HEAD J4X/ CITY ATTY. <3&* CITYMGR. UA- RECOMMENDED ACTION: That the City Council ADOPT Resolution No. 2009-058. ACCEPTING the Annual Housing Production and Housing Element Implementation Report for January 2008 through December 2008. ITEM EXPLANATION: The attached Annual Housing Production and Housing Element Implementation Report has been prepared to comply with Government Code Section 65400(a)(2), meet the grant funding requirements of certain SANDAG and California Department of Housing and Community Development (HCD) programs, and implement Housing Element Program 3.15. The purpose of the report is to provide information to the state, City Council and the public as to the effectiveness of the Housing Element programs, as well as mark the City's progress in meeting its share of the region's housing needs. Contents of the Report The Annual Housing Production and Housing Element Implementation Report for January 2008 through December 2008 (Exhibit 2) consists of: • Housing Production Status (Part 1) - A report that provides the status of housing production in the City and the progress in meeting its share of regional housing needs during Calendar Year (CY) 2008. This part of the report indicates the progress of the City in meeting its share of regional housing needs, including information on: o Area Median Income; o The four income groups identified in state law; o The corresponding rents and sales prices considered affordable to each income group; and o The number of housing units permitted according to income group and housing type. • Housing Element Program Implementation Status (Part 2) - A report that provides the status of the City of Carlsbad Housing Element programs and the progress the City has made in its implementation during CY 2008. The focus of this part of the report is on DEPARTMENT CONTACT: Corey Funk 760-602-4645 cfunk@ci.carlsbad.ca.us FOR CITY CLERKS USE ONL Y. / COUNCIL ACTION: APPROVED /D^ DENIED D CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES D D D D Page 2 the status of the programs of the City of Carlsbad 1999 - 2004 Housing Element and the progress in their implementation. The implementation status of each of the 49 programs contained within the Housing Element is indicated in a table along with any additional comments. FISCAL IMPACT: This is an information report and the only associated fiscal impact is the cost of staff time to prepare the report and provide it to the City Council, the California Office of Planning and Research, California Department of Housing and Community Development, and SANDAG. ENVIRONMENTAL IMPACT: This report is categorically exempt from environmental review as per CEQA Guidelines Section 15306, which states that information collection activities are exempt from the provisions of CEQA. EXHIBITS: 1. City Council Resolution No. 2009-058. 2. Report titled: Annual Housing Production and Housing Element Implementation Report for January 2008 through December 2008. EXHIBIT 1 1 RESOLUTION NO. 2009-058 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING THE ANNUAL 3 HOUSING PRODUCTION AND HOUSING ELEMENT IMPLEMENTATION REPORT FOR JANUARY 2008 THROUGH 4 DECEMBER 2008. 5 WHEREAS, the attached Annual Housing Production and Housing Element 6 Implementation Report has been prepared to comply with Government Code Section 7 65400(a)(2), meet the grant funding requirements of certain SANDAG and California 8 Department of Housing and Community Development (HCD) programs, and implement Housing 9 Element Program 3.15. The purpose of the report is to provide information to the state, City 10 Council and the public as to the effectiveness of the Housing Element programs, as well as 11 mark the City's progress in meeting its share of the region's housing needs. 12 The City Council of the City of Carlsbad, California, does hereby resolve as follows: 13 1. That the above recitation is true and correct. j5 2. That the City Council of the City of Carlsbad accepts the report and directs the Planning Director to submit the report to the California Office of Planning and Research and the jg California Department of Housing and Community Development. 17 " 18 // 19 '/ 20 // 21 // 22 // 23 // 24 // 25 // 26 /// 27 /// 28 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 24th day of March, 2009, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn. NOES: None. ABSENT: None. I\S, Mayor ATTEST: I_6RRAINE)M. W<$0D, City Clerk (SEAL) EXHIBIT 2 ANNUAL HOUSING PRODUCTION AND HOUSING ELEMENT IMPLEMENTATION REPORT FOR JANUARY 2008 THROUGH DECEMBER 2008 INTRODUCTION This document describes the City's progress during calendar year (CY) 2008 (January 1, 2008 to December 31, 2008) in 1) producing housing to accommodate Carlsbad's estimated share of the region's forecasted growth for the four income groups identified in state law, and 2) implementing the Housing Element programs. Report Purpose The attached Annual Housing Production and Housing Element Implementation Report has been prepared to comply with Government Code Section 65400(a)(2), meet the grant funding requirements of certain SANDAG and California Department of Housing and Community Development (HCD) programs, and implement Housing Element Program 3.15. The purpose of the report is to provide information to the state, City Council and the public as to the effectiveness of the Housing Element programs, as well as mark the City's progress in meeting its share of region's housing needs. Additionally, certain grant programs administered by SANDAG require that member jurisdictions report on progress toward meeting their share of the region's housing needs. Report Content Part 1 - The City's housing production and progress in meeting its share of the regional housing need during CY 2008 is reported with data contained in the following tables: • Table 1.1 specifies Carlsbad's share of the regional housing need and defines the four income groups. • Tables 1.2 - 1.4 list the qualifying income levels for the four income groups and the corresponding housing rents and sales prices considered affordable to the income groups during the reporting period (CY 2008). • Table 1.5 provides the number of new housing units permitted, by income group and housing type, in CY 2008. • Table 1.6 highlights the low-income housing built in CY 2008. • Table 1.7 summarizes the City's progress in meeting its share of the regional housing needs (for the current housing cycle). Part 2 - Table 2.1 specifies the implementation status of the Housing Element programs during CY 2008. PART 1 - HOUSING PRODUCTION STATUS - JANUARY 2008 THROUGH DECEMBER 2008 March 2, 2009 PART1 HOUSING PRODUCTION STATUS -JANUARY 2008 THROUGH DECEMBER 2008 Regional Share Needs - The determination of housing need for Carlsbad and all other jurisdictions in California is derived from the Regional Housing Needs Assessment (RHNA) prepared by regional councils of government (COG) before the beginning of each housing cycle. Based upon these assessments of need, the local jurisdictions are required to adopt housing objectives in the housing elements of their general plans. A regional assessment of housing need is an estimate of the total need for new housing construction throughout the region due to population growth forecasted to occur during a specific time period, which is typically five years. The overall housing need is then broken out by four income groups: very low, low, moderate, and above-moderate (or upper-income) - all as defined by the federal Department of Housing and Urban Development (HUD), and the state Department of Housing and Community Development (HCD). The regional housing needs are then allocated to the local jurisdictions on a "regional share" basis, according to models and formulas designed by the COG. Table 1.1 shows Carlsbad's share of the regional housing need for the current housing cycle. It is based, in part, upon the growth that the San Diego Association of Governments (SANDAG), the region's COG, estimated for the City. The previous housing cycle covers the period spanning July 1, 1999 through June 30, 2005. The proposed update to the Housing Element (currently in process) covers the housing cycle period of July 1, 2005 through June 30, 2010. For San Diego County, the regional growth projected by the State was for the period between January 1, 2003 and June 30, 2010. Therefore, while the Housing Element is a five-year document covering July 1, 2005 through June 30, 2010, the City has seven and one-half years (January 1, 2003 through June 30, 2010) to fulfill the RHNA. In Table 1.1 below, the New Construction Needs represent the seven and one-half year RHNA, and the Remaining Need represents the number of units remaining in the RHNA for the 2005 - 2010 Housing Element Cycle after subtracting the housing produced between Jan. 1, 2003 to June 30, 2005. 1.1 PART 1 - HOUSING PRODUCTION STATUS - JANUARY 2008 THROUGH DECEMBER 2008 March 2, 2009 Table 1.1: Carlsbad's Regional Share Need Estimates For Housing Cycle 2005-2010 Income Group Very Low Low Moderate Above- Moderate Totals Definition* (%ofAMI**) 50% or under 51 - 80 % 81 - 120% Over 120% New Construction Needs (in housing units) 1,922 1,460 1,583 3,411 8,376 Housing produced Jan. 1,2003 - June 30, 2005 85 543 358 2,691 3,677 Remaining Need (in housing units) 1,837 917 1,225 720 4,699 * Definitions are from HUD, via the California Department of Housing and Community Development. ** AMI is the Area Median Income. The 2008 AMI for San Diego-Carlsbad-San Marcos MSA for a family of four is $72,100. Note: the combined very low and low-income ("lower"-!ncome) estimate of housing need is 3,382 units. This equals 40% of the total estimated need for the housing cycle. Definition of Income Groups - Table 1.1 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. HUD annually revises the AMI based on cost of living issues such as the relationship of housing prices to income. For 2008, HUD established the AMI for San Diego County at $72,100. In addition to establishing the AMI, HUD also establishes income limits for each of the four income groups (based on the number of persons per household and the percentage of the AMI for each income group specified in Table 1.1). Table 1.2 shows the CY 2008 income limits for each of the income groups listed in Table 1.1, which are adjusted for family size so that larger households have higher income limits. 1.2 PART 1 - HOUSING PRODUCTION STATUS - JANUARY 2008 THROUGH DECEMBER 2008 March 2, 2009 Table 1.2 Income Group Very Low Low Moderate Above-Moderate : CY 2008 Qualifying Limits On Annual Income By Household Size 2 $31, $50, $69, >$69, Persons Per Household 346 600 550 200 200 $35 $56 $77 >$77 Source: "2008 Household Income Limits," U.S. Development (effective February 13, 2008). ,500 ,900 ,850 ,850 $39, $63, $86, >$86, 500 200 500 500 Department of Housing $45,800 $73,300 $100,350 >$1 00,350 and Urban 8 $52 $83 $114 >$114 ,150 ,400 ,200 ,200 Prices of Affordable Housing - Generally, the federal and state rule is that housing is affordable to a given family if the family pays no more 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 rental). Income group determinations for income restricted (assisted) housing units shown in Tables 1.5 and 1 .6 of this report were made by the Carlsbad Housing and Redevelopment Department. 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 rents/prices are set to that which the market will bear. Further, rents and prices do not generally vary with the number of people in the household. For example, a market rent for a two-bedroom apartment will remain constant no matter if it is being rented to a 1-, 2-, 3-, 4, or 5-person household. So the challenge is how to determine to what income group (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 utility allowance, as required by HUD. Table 1.3 provides the resulting maximum market rate rental expenses (which 1.3 PART 1 - HOUSING PRODUCTION STATUS - JANUARY 2008 THROUGH DECEMBER 2008 March 2, 2009 include rent and a utility allowance that increases with household size) for the very low, low, and moderated-income groups for CY 2008. Table 1.3: CY 2008 Qualifying Rent and Utility Expenses By Number of Bedrooms Income Group Number of bedrooms 1 Very Low Low Moderate Above-Moderate $790 $988 $1,264 $1,580 $1,730 $2,163 $1,145 $1,304 $1,833 $2,085 $2,509 $2,855 >$1,730 >$2,163 >$2,509 >$2,855 Source: "2008 Household Income Limits," U.S. Department of Housing and Urban Development (effective February 13, 2008). With regard to for-sale housing, there is no federal or state required formula to determine the sales price that would be considered affordable. The only federal or state requirement is that the mortgage amount (including taxes, insurance, utilities, etc.) must not exceed 30% of the monthly income of the household (to be considered affordable to a specific income group, see Table 1.2). The varying factors (interest rates, closing costs, lending programs, etc.), which impact the mortgage amount, make it difficult to specify certain sales prices that are considered affordable to the various income groups. To simplify determining affordability for reporting purposes, the City uses a rule-of-thumb formula similar to that employed by many mortgage-lending institutions, which was reviewed and accepted by the SANDAG and the California Department of Housing and Community Development. The rule-of- thumb formula is as follows: Affordable sales price = 3.0 x maximum-allowed-annual income for each class, adjusted for bedroom count. Based on this formula Table 1.4 gives the qualifying purchase price for housing for the different income groups. The table illustrates that a three-bedroom house costing no more than $301,050 would be the maximum affordable to a moderate-income family. 1.4 PART 1 - HOUSING PRODUCTION STATUS - JANUARY 2008 THROUGH DECEMBER 2008 March 2, 2009 Table 1.4: CY 2008 Qualifying Purchase Price By Number of Bedrooms Income Group 1 Number of Bedrooms 2 3 Very Low Low Moderate Above-Moderate $94,800 $118,500 $137,400 $156,450 $151,650 $189,600 $219,900 $250,200 $207,600 $259,500 $301,050 $342,600 >$207,600 >$259,500 >$301,050 >$342,600 * 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 persons per household (as opposed to bedrooms). Housing Activity and Affordability in CY 2008 - Table 1.5 and the information below summarize the housing permitted in CY 2008. Definitions of terms used in the table and the remainder of the report are as follows: 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. 1.5 PART 1 - HOUSING PRODUCTION STATUS - JANUARY 2008 THROUGH DECEMBER 2008 March 2, 2009 Table 1.5: Type and Affordability of Housing Units Permitted* in CY 2008 Income Group Very Low Low Moderate Above- Moderate Total Units Built Market Rate F^i'ly Duplex Cond°- APart: Detached** minium ment 0 000 0 000 0 002 126 2 19 0 126 2 19 2 Assisted Units Condo- Apart- minium ment 11 0 0 90 0 0 0 0 11 90 5*ar 0 11 6 96 0 2 0 147 6 256 *Housing units as reported by building permit issuance "One of the single family detached homes was permitted with a second dwelling unit. The second dwelling unit is counted in the second dwelling unit category. ***Five of the second dwelling units were permitted on lots with existing single family detached homes. Highlights on Carlsbad's newest lower-income housing. Table 1.6 highlights Carlsbad's newest lower-income housing. Table 1.6: Low- Income Housing Permitted in CY 2008 Project Roosevelt Gardens Poinsettia Commons Glen Ridge Apartment Homes (Robertson Ranch) Location 2578 Roosevelt St. North of Poinsettia and west of Avenida Encinas East of El Camino Real and north of Cannon Road Number of Units 11 12 78 (27 units at 35% of AMI, 25 units at 50% of AMI, 25 units at 55% of AMI, 1 mgr. Unit) Description Condos Apartments Apartments Occupancy Restrictions Households earning up to 50% of the Area Median Income. Households earning up to 80% of the Area Median Income. Households earning between 35%, 50% to 55% of the Area Median Income. City Assistance Yes Yes Yes 1.6 PART 1 - HOUSING PRODUCTION STATUS - JANUARY 2008 THROUGH DECEMBER 2008 March 2, 2009 Progress Toward Housing Cycle Objectives - Table 1.7 below provides the number of dwelling units permitted during the five year housing cycle of 2005 - 2010. The table also shows the cumulative progress achieved during those years toward meeting the new housing needs (from Table 1.1) estimated for the housing cycle over its term. Table 1.7: Income Group Very Low Low Moderate Above- Moderate Totals July - Dec 2005 0 5 56 403 464 For Years July 2005 - June 2010 Cumulative Progress Housing Cycle Objectives by Income Group Housing Units Permitted CY2006 CY2007 ^ ^ ^ 100 0 11 89 10 96 0 02- 306 358 147 495 368 256 Total 111 200 58 1,214 1,583 Toward Current Housing Units Needed Objective** 1,837 917 1,225 720 4,699 Percent achieved of total RHNA 10% 51% 26% 114% 63% RHNA balance for 2009-2010 1,726 717 1,167 0 3,116 ** Remaining RHNA need for 2005 - 2010 Housing Element period (see Table 1. 1) Type of Lower-Income Housing Produced from 2005 - 2010 - Since 1999, developers have built nearly 1,500 homes for lower-income households in Carlsbad, most resulting from Inclusionary Housing Ordinance requirements and requiring City financial assistance. For the current housing cycle, over 300 units were constructed for lower-income households. Conclusions Carlsbad has made important progress toward meeting its regional share of housing for all income groups. 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 the trend: Overall market demand is for higher-end housing, though current demand for all housing types is weak due to the economic conditions; tax incentives for producing more affordable housing are few; land costs are high; and, per-square-foot production costs remain substantial, so that profit margins on more affordable housing are low. 1.7 Part 2 ANNUAL HOUSING PRODUCTION AND HOUSING ELEMENT IMPLEMENTATION REPORT IMPLEMENTATION STATUS OF HOUSING ELEMENT PROGRAMS January 2008 through December 2008 CODE KEY Status:Lead Department: C - Completed 0 - Ongoing 1 - In Progress P - Pending D - Delete One-time project for which all work has been completed Completed program, but one that requires recurring activity Staff work is well underway and program will be implemented soon (including any necessary hearings) Program for which preliminary work needs to be initiated, or program is in early stages of work Program that may no longer be necessary or relevant due to another program, changed circumstances, or policy change B - Building CD - Community Development H&R - Housing & Redevelopment P - Planning Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 Housing Preservation (Condo Conversions) Housing Preservation (Mobile Home Parks) Housing Preservation (Mobile Home Parks) Housing Preservation (Rehab) Housing Preservation (Rehab Subsidies - Rental Stock) Housing Preservation (Acquisition & Rehab) ^W^JUMW|ee-f^itei* 1.1 1.2 1.3 1.4 1.5 1.6 Continue implementation of the program to restrict condominium conversion when such conversions would reduce the number of low or moderate income housing units available throughout the city. All condominium conversions are subject to the City's Inclusionary Housing Ordinance, therefore, the in-lieu fees or actual afford-able units required by that ordinance would be used to mitigate the impacts of the loss of these rental units from the City's housing stock to lower income house-holds. The City will continue to implement the City's existing Residential Mobile Home Park zoning ordinance (Municipal Code 21.17) which sets conditions on changes of use or conversions of Mobile Home Parks. The City will assist lower income tenants to research the financial feasibility of purchasing their mobile home park so as to retain rents and leases affordable to its tenants. The Building Department will continue to implement the program to monitor and report to the Housing and Redevelopment Dept., information on housing stock that is substandard and or deteriorating. Identified structures will continue to be reported to the Housing and Redevelopment Dept. for possible assistance under the City's rehabilitation and assistance programs. The City, through the Housing and Redevelopment Department and in conjunction with the Building Department, will provide loans, rebates and other support to preserve the existing stock of low and moderate income rental housing. Priority will be given to housing identified by the Building Department as being sub- standard or deteriorating which houses families of lower income and in some cases moderate income. This program depends partially on outside funding from State, and Federal sources. The City through the Housing and Redevelopment Dept. will implement a program to acquire, using local Redevelopment Set- Aside funds, CDBG, State, Federal and private sector loans, rental housing that is substandard, deteriorating or in danger of being demolished. Twenty percent of the units, once rehabilitated, will be set aside for very-low income households. ;gj&°? M;,-. '^^SfajBiB,,-; -•- o o o P/O o o lajJNwpt^ p p HRD B/HRD HRD HRD l4:-ytV^':f«?-.COBI|nei(it8X^ :->*K;;;:'-^r-r; City provides information upon request. At this time, there are no mobile home parks pursuing purchase. However, rental assistance continues to be provided to assist lower income tenants with space rent affordability, and City will assist with purchase as requested and appropriate. City has an informal program. The Building Department and Code Enforcement Officers respond to complaints and often refer owners to the Housing office for possible assistance with rehabilitation of substandard dwelling units. Program available. No projects/participants to date. Program available. No additional projects to date. 2.2 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 w^*^!§fw^i %^RitjifltiiiiiVi Housing Preservation (Rehab Incentives) Housing Preservation (Rehab Homeowner) Housing Quantity & Diversity (Development Standards) Housing Quantity & Diversity (Development Standards) Housing Quantity & Diversity (Developable Acreage Monitoring) Housing Quantity & Diversity (Adaptive Reuse) vip;-,'*^--;-'--' ••" 1.7 1.8 2.1 2.2 2.3 2.4 The City will provide financial and processing incentives for the owners of lower income rental stock in need of rehabilitation and preservation. These incentives may include, but not be limited to: the deferral or subsidy of planning and building fees, priority processing and financial incentives such as low-interest rehabilitation and property acquisition loans. The City will implement a homeowner rehabilitation program targeted to lower-income, special needs (handicapped, low income large-family, etc.,) and senior households that will consist of financial and processing incentives such as low interest and deferred repayment loans, loan rebates, and priority processing. With the exception of some lower-income and special needs housing which may be assisted by the City, new housing development will be achieved through private sector efforts. New development will be achieved through the auspices of State Planning Law and the City's General Plan and Municipal Code. There is no special program for this overall goal. It is recognized that achievement of this goal will be heavily influenced by private sector marketing strategies; local, state and national economic trends; availability of regional infrastructure and services; and other factors beyond the control of Carlsbad. The Planning Department, in its review of development for all income categories, may recommend waiving or modifying certain development standards or recommending that certain Municipal Code changes be implemented to encourage the development of low and moderate income housing. These recommendations will be reviewed with a goal to reduce costs associated with standards. Although standards may be modified they will also retain aesthetic and design criteria acceptable to the City. The City will continue to monitor the absorption of residential acreage in all densities and, if needed, recommend the creation of additional residential acreage at densities sufficient to meet the City's housing need for current and future residents. Any such actions shall be undertaken only where consistent with the Growth Management Plan. The City should continue to explore the potential for adaptive reuse of aging industrial, commercial and some residential buildings by continuing to implement the existing policy that creates affordable living spaces for combined living/working spaces. The principle targeted area for this type of housing is in the downtown redevelopment area. w 0 o o o o o HRD HRD P P P HRD/P ki?<-£y'y& '-J'iipitisfe i'^i'^'^^iW*' •"yJfS^''^":si^-/ 4fe,;€^A5S?^^ii&fes€>~Si^ 'i:S^%m5slf&**C0lliinentiP0:f>^W'^S Program available. No additional projects to date. A Minor Home Repair loan program was established in 2008, and implementation began in 2009. This program provides $5000 zero interest, forgivable (after 5 year) loans to low income households to assist with safety and disabled access issues for homeowners. No loans approved to date due to recent initiation. City will continue to explore the potential for adaptive reuse of buildings, especially those within the Village Redevelopment Area. There are not many buildings that could be adapted to create live/work space. However, this is an option that continues to be explored. 2.3 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 Housing Quantity & Diversity (Mixed Use) 2.5 Continue to implement existing ordinances and policies that allow mixed residential and non-residential uses in the building and/or complex. Major commercial centers should incorporate, where appropriate, mixed commercial/residential uses. Major industrial/office centers, where not precluded by environmental and safety considerations, should incorporate mixed industrial/office/residential uses. Housing Quantity & Diversity (Coastal Developmnt Monitoring) 2.6 As a function of the building process, the City will monitor and record Coastal Zone housing data including, but not limited to, the following: 1) The number of new housing units approved for construction within the coastal zone after January 1,1982. 2) The number of housing units for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, required to be provided in new housing developments within the coastal zone. 3) The number of existing residential dwelling units occupied by persons and families or low or moderate income that are authorized to be demolished or converted in the coastal zone pursuant to Section 65590 of the Government Code. 4) The number of residential dwelling units occupied by persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that are required for replacement or authorized to be converted or demolished as identified in paragraph 3). The location of the replacement units, either onsite, elsewhere within the locality's jurisdiction within the coastal zone, or within three miles of the coastal zone within the locality's jurisdiction, shall be designated in the review. P/HRD/ B 1. In 2008, 87 units were constructed in the Coastal Zone. 2. 0 3. 0 4. 0 Housing Spec. Needs Groups (Farm Worker) 3.1 The City shall continue to work with, and assist, local community groups, social welfare agencies, farmland owners, and other interested parties to provide shelter for the identified permanent and migrant farm workers during the five-year housing element period. These efforts will be in coordination with other regional and local programs and will involve neighboring jurisdictions in a cooperative, regional approach. P/HRD City has provided funding for a transitional shelter for migrant farm workers and other homeless males in Carlsbad for many years. This shelter continues to operate, and is currently exploring a possible expansion to include additional beds. City continues to work with interested parties on developing other housing alternatives to assist migrant farm workers. 2.4 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 • • .i Table 2.1 CY 2008 Implementation Status of Housing Element Programs- i ; -.'--, '•: '--,-,-'; V?:!'HE-.v : Pn^gram Housing Spec. Needs Groups (Large Family) Housing Spec. Needs Groups (Homeless) Housing Spec. Needs Groups (Homeless) Housing Spec. Needs Groups (Homeless) Housing Spec. Needs Groups (Senior/ Elderly) Housing Spec. Needs Groups (Senior/ Elderly) PROGRAM # 3.2 3.3.a 3.3.b 3.3.C 3.4.a 3.4.b h>'r :"- '.' --.- •• De^5*iptlbtfv'r*^'^/:1::V',. -.- ;.<-<. Those housing projects entering into an agreement with the City to provide lower income housing shall be required to implement Policy 3.2 Carlsbad will continue to facilitate the acquisition, for lease or sale, of suitable sites for transitional shelters for the homeless population. This facilitation would include, but not be limited to: participating in a regional or sub-regional summit(s) including decision-makers from North County jurisdictions and SANDAG for the purposes of coordinating efforts and resources to address homelessness; assisting local non-profits and charitable organizations in securing state funding for the acquisition, construction and management of shelters; continuing to provide funding for local and sub-regional homeless service providers, temporary and emergency shelters; and reviewing local zoning controls to alleviate any barriers to the feasible provision of housing for the homeless, including temporary and/or seasonal portable structures. Continue to provide Federal Community Development Block Grant (CDBG) funds to community, social welfare, not-for-profit and religious groups which provide services within the North County area. Continue to work with non-profit organization(s) that receive CDBG funds to offer a City Referral Service to refer, on a 24-hour basis, transient homeless individuals and families to local agencies providing services to the homeless, including regional hotel voucher programs through the Regional County Consortium. Continue to implement the current Senior Citizen housing regulations and continue to require monitoring and reporting procedures to assure compliance with approved project conditions. Encourage the provision of a wide-variety of senior housing opportunities, especially for lower-income seniors with special needs. Continue to work with senior housing developers and non-profit organizations to locate and construct the 200 units of Senior low- income housing approved through an Article 34 referendum. ^Status o o o 0 o 0 - Lea* Dept P HRD HRD HRD P HRD :"••-. '..v:""'"1? • .-..' Comments "• '""..<"- • .-,':f:' City continues to work with regional committees and task forces, and to provide funds for various programs to assist with the needs of the homeless. Catholic Charities continues to operate a 50 bed year round transitional shelter for men within the City of Carlsbad. The City also helped to fund a transitional shelter located within the City of Vista, but serving Carlsbad homeless. City continues to fund non-profit organizations through the CDBG/HOME programs. City continues to make referrals as well as fund organizations that provide referrals. The City continues to work with developers interested in the construction of senior citizen housing within the city. To date, two developers have discussed potential senior projects with the City. One application for a senior condo development was approved in 2008. 2.5 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 Housing Spec. Needs Groups (Lower Income) 3.5 Through the implementation of various programs, the City will pursue, to the best of its ability, Self-Certification of its Housing Element update at the end of the 1999-2004 housing cycle, in accordance with the criteria detailed in the "Housing Element Self-Certification Report: Implementation of a Pilot Program for the San Diego Region" prepared by SANDAG and dated June, 1998 (also known as the SANDAG Housing Self-Certification Report). The Self-Certification housing production goals for the City of Carlsbad are as follows: Units affordable to low-income households 258 units Units affordable to very low-income households 201 units Units affordable to extremely low-income households 170 units Should the City not meet the Self-Certification criteria detailed in the SANDAG Housing Self-Certification Report, then the City will pursue, to the best of its ability, the production of the City's regional share goals for lower-income housing units as detailed in the "Regional Housing Needs Statement - San Diego Region", prepared by SANDAG and dated November, 1998. The regional share housing needs for the City of Carlsbad are as follows: Units affordable to low-income households 1,417 units Units affordable to very low-income households 1,770 units 0 HRD Having produced a significant amount of lower- income housing since 1999, Carlsbad has exceeded its production goals for self- certification of its Housing Element. However, due to policies set forth by the State which appear to discourage self-certification, Carlsbad has decided that it will not pursue self-certification of its Housing Element for the 2005-2010 housing cycle. The City has made its best good faith effort to meet the regional housing needs set forth by SANDAG, and has submitted its draft 2005-2010 Housing Element to the State for comments and initiated the approval process. Housing Spec. Needs Groups Inclusionary 3.6.a The City shall continue to implement its Inclusionary Housing Ordinance that requires 15% of all base residential units within any Master Plan/Specific Plan community or other qualified subdivision (currently seven units or more) shall be restricted and affordable to lower income households. This program requires an agreement between all residential developers subject to this inclusionary requirement and the City which stipulates: the number of required lower income inclusionary units; the designated sites for the location of the units; a phasing schedule for production of the units; and, the tenure of affordability for the units. The City shall continue to assist in the funding of the provision of inclusionary units through funds available in the Housing Trust Fund. O P/HRD City continues to implement the Inclusionary Housing Ordinance. To date, the City has produced 1992 residential units affordable to lower income households through its Inclusionary Housing Program. The City has 89 units under construction. 2.6 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 Groups Inclusionary In-Lieu Fees Housing Spec. Needs Groups Lwr. Income Developmen t (Density Bonus) Housing Spec. Needs Groups Lwr. Income Developmen t (Alternative Housing) ^^^"V^f ^4^^ '^''- : 3.6.b 3.7.a 3.7.b ;%%Tikbte;:2.1i5M^0»;l.mpleWeliil&tti^iitu%o^ The City will continue to implement its Inclusionary Housing Ordinance that requires, for all subdivision of fewer than seven units, an in-lieu fee. The fee is based on a detailed study that calculated the difference in cost to produce a market rate rental unit versus a lower-income affordable unit. As of January 1 , 1 999, the in-lieu fee per market rate dwelling unit was $4,515.00. This amount of this fee may be modified by the City Council from time-to-time and is collected at the time of building permit issuance for the market rate units. The City will also continue to consider other in-lieu contributions allowed by the Inclusionary Housing Ordinance, such as an irrevocable offer to dedicate developable land or participation in programs that assist the City in reaching its Self-Certification lower-income housing production goals. The City shall continue to implement its Residential Density Bonus or In-Lieu Incentives Ordinance (Chapter 21. 86 of the Carlsbad Municipal Code), consistent with Government Code section 6591 3.4 and 6591 5. (Density Bonus), by granting a minimum of a 25 percent bonus over the otherwise allowed density, and one or more additional economic incentives or concessions that may include but are not limited to: fee waivers, reduction or waiver of development standards, in-kind infrastructure improvements, an additional density bonus above the minimum 25 percent, mixed use development, or other financial contributions in return for the developer guaranteeing that the project will reserve a minimum of 50 percent of the units for Senior or other special need households, or 20 percent of the units for low income households or 10 percent of the units for very-low income households. These units must remain affordable for a period of 30 years and each project must enter into an agreement with the City to be monitored by the Housing and Redevelopment Dept. for compliance. The City shall continue to implement its Second Dwelling Unit Ordinance (Section 21.10.015 of the Carlsbad Municipal Code) and shall continue to consider other types of alternative housing, such as hotels, single room occupancy units, homeless shelters, and farm worker housing. These alternatives would assist in meeting the City's share of housing for low and very low income households. O O O p p p In 2006, the City Council adopted amendments to the Density Bonus Ordinance to reflect changes in State law. In March 2008, the City pursued and obtained California Coastal Commission approval of the ordinance amendments. 2.7 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 Table 2.1 GY 2008 Implementation Status of Housing Element Programs " '-. HE;/ Program Housing Spec. Needs Groups Lwr. Income Development (City Initiated Development) Housing Spec. Needs Groups Lwr. Income Developmnt (Section 8) Housing Spec. Needs Groups Lwr. Income Dev. (Excep. Fee Payment) Housing Spec. Needs Groups Lwr. Income Dev. (Priority Processing) Housing Spec. Needs Groups Lwr. Income Dev. (In-Kind Improvemnts) PROGRAM f 3.7.C 3.7.d 3.7.e 3.7.f 3.7.g "-':'• • • '. "'-- "-.- . -->' Description .';'••: •'• ''' '.. • >?J'' •*'• '•'•''•'*• The City of Carlsbad, through the offices of the Housing Authority and through the Housing and Redevelopment Department, will continue work with private for-profit and especially not-for-profit developers to use local funds from CDBG, Redevelopment Set-Aside funds and other City originated funds and leverage them against State, Federal and private low interest funds to create housing opportunities for low-, very low- and extremely low-income households. Continue the City's Section 8 program to provide additional assisted housing opportunities in the Housing Element Period 1999-2004. Continue to implement City Council Policy No. 17 which allows the exception of the payment of public facility fees for lower- income housing projects. Developments for which Public Facility Fees are excepted may be subject to an analysis of the fiscal impacts of the project to the City. Continue to implement priority processing for lower-income development projects, including accelerated plan-check process, for projects which do not require extensive engineering or environmental review. The City will continue to consider contributing to selected lower-income housing development, in-kind infrastructure improvements, including but not limited to: street improvements, sewer improvements, other infrastructure improvements as needed. Status o 0 D D D Lead Dept HRD HRD P P P ''.";-,.••'••'- c; •-?''•*" Comments •'. -• . :" .- ••"• The City continues to research available property for purchase and provision of affordable housing. The City assisted an organization, TERI, to purchase property for a group home for up to 6 developmental^ disabled, low income persons in Carlsbad. City continues to operate its Section 8 Rental Assistance program. The Program currently assists approximately 620 households. As part of the current Housing Element update (draft approved by HCD, pending City Council approval) this program is proposed to be revised and integrated with Program 3.5. As part of the current Housing Element update (draft approved by HCD, pending City Council approval) this program is proposed to be revised and integrated with Program 3.5. As part of the current Housing Element update (draft approved by HCD, pending City Council approval) this program is proposed to be revised and integrated with Program 3.5. 2.8 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 Table 2.1 CY 2008 Implementation Status of Housing Element Programs '. ; . ...-HB--: Program Housing Spec. Needs Groups Lwr. Income Development Housing Spec. Needs Groups Lwr. Income Development Housing Spec. Needs Groups (Growth Management) Housing Spec. Needs Groups (Special Needs Housing Priorities) PROGRAM; .-.:-'-:f -.-. - 3.7.h (Policy - no Program) 3.7.i 3.8 3.9 '-••.'/t;-, &i\> --..-:- • • Description '-.-v^i-.;.-/ •• v^;--*' In order to enable the development of affordable housing, the City will accommodate General Plan Amendments to increase residential densities on all PC and LC zoned properties and all other residentially designated properties. Any proposed General Plan Amendment request to increase site densities for purposes of providing affordable housing, will be evaluated relative to the proposal's compatibility with adjacent land uses and proximity to employment opportunities, urban services or major roads. These General Plan Land Use designation changes will enable up to 23 dwelling units per acre, and, in conjunction with the City's Density Bonus Ordinance, could have potentially unlimited residential density. The City shall continue to allow discretionary consideration of density increases above the maximum now permitted by the General Plan through review and approval of a Site Development Plan (SDP). Continue to maintain, monitor and manage the Excess Dwelling Unit Bank, composed of "excess units" anticipated under the city's Growth Management Plan, but not utilized by developers in approved projects. Continue to make excess units available for inclusion in other projects using such tools as density transfers, density bonuses and changes to the General Plan land use designations, consistent with Policy 3.8 above. The City will annually set priorities for its future lower-income and special housing needs. The priorities will be set by the Housing and Redevelopment Department with assistance from the Planning Department and approved by the City Council. Priority given to the housing needs for lower-income subgroups (i.e., handicapped, seniors, large-family, very-low income) will be utilized for preference in the guidance of new housing constructed by the private sector and for the use of fund used or allocated by the City for construction or assistance to low income projects. Setting priorities is necessary to focus the limited amounts of available financial resources on housing projects that will address the City's most important housing needs. Priorities will be set annually as needs fluctuate according to how well they are accommodated over time. Status o D 0 O Lead Oept p p p HRD • '. ' •« "- ' Comments • .-''.':'.-•.• As part of the current Housing Element update (draft approved by HCD, pending City Council approval) this program is proposed to be revised and integrated with Program 3.5. City continues to set housing goals/needs/ priorities through its Consolidated Plan and Redevelopment Five Year Implementation Plans. 2.9 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 Table 2.1 CY 2008 Implementation Status of Housing Element Programs HE Program Housing Spec. Needs Groups Mod Income (Mortgage Rev. Bond) Housing Spec. Needs Groups Mod Income Lend Prgrms Housing Spec. Needs Groups (Smaller Affordable Housing) Housing Spec. Needs Groups (Land Banking) Housing Spec. Needs Groups (Community Reinvestmnt Act) Housing Spec. Needs Groups (Housing Trust Fund) PROGRA M # 3.10.a 3.10.b 3.11 3.12 3.13 3.14 -. • "1,;.J, Description '•' -. ;'-'.V'' • : ":\ '••[• The City will encourage the development of, subject to market conditions and feasibility, additional units affordable to first-time home buyers of moderate income through a mortgage revenue bond program. The program will be limited to first-time home buyers who rent or work in Carlsbad. The City's Housing Authority and Housing and Redevelopment Department will work to secure funding and develop additional lending programs for moderate income, especially first-time home buyers. The Planning Department shall continue to allow smaller homes at lower costs that create housing more affordable to moderate income households, using mechanisms such as small lot subdivisions, as allowed through the City's Planned Development Ordinance (Chapter 21 .45 of the Carlsbad Municipal Code). The City will continue to consider implementation of a land banking program under which it would acquire land suitable for development of housing affordable to lower and moderate income households. The proposed Land Bank may accept contributions of land in-lieu of housing production required under an inclusionary requirement, surplus land from City, County, State or Federal governments, and land otherwise acquired by the City for its housing programs. This land would be used to reduce the land costs of producing lower and moderate income housing developed undertaken by the City or other parties. The Housing and Redevelopment Dept., in conjunction with the Finance Department and the City Treasurer will monitor and evaluate local lending institution's compliance with the CRA Lending institutions which are deficient in meeting CRA lending responsibilities in areas such as multifamily construction and lending for affordable housing will be identified. The City will explore means to encourage greater lending activities in Carlsbad. The City will continue to maintain the various monies reserved for affordable housing, and constituting the Housing Trust Fund, for the fiduciary administration of monies dedicated to the development, preservation and rehabilitation of housing in Carlsbad. The Trust Fund will be the repository of all collected in- lieu fees, impact fees, housing credits and related revenues targeted for proposed housing as well as other, local, state and federal and other collected funds. Status o o 0 0 o o Lead Dept HRD HRD P/HRD HRD HRD HRD Comments f City will continue to consider this option. No projects proposed to date. City continues to participate in the Mortgage Credit Certificate Program. Smaller homes are encouraged and supported for low/moderate income affordability purposes. The Planned Development Ordinance provides development standards for small-lot development and ensures homes are in better scale to lot sizes. The City has accepted no land to date in lieu of construction of units. However, it remains an option that may be considered by the City. City continues to monitor the local lending institutions. City continues to maintain the various monies reserved for affordable housing 2.10 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 Table 2.1 CY 2008 Implementation Status of Housing Element Programs ••"' ---,'HE, . ^Program Housing Spec. Needs Groups (Housing Element Annual Rpt.) Housing Spec. Needs Groups (Disabled Accessibility) Housing Housing, Jobs, Workforce Bal. (Housing Impact Fee) Housing (Energy Conservation) Housing (Water Conservation) PROGRAM# • -x; 3.15 3.16 4.1 5.1 5.2 -/c:'''- • •'':'•:•:'.- -•' ' 'Descrj^oWlr1??^^--;''" .'•-'• To retain the Housing Element as a viable policy document, the Planning Department will undertake an annual review of the Housing Element and schedule an amendment if required. Staff will also develop a monitoring program and report to the City Council, and California Department of Housing and Community Development, if required, annually on the progress and effectiveness of the housing programs. The City will continue to enforce Title 24 of the State Building Code with regard to accessibility for persons with disabilities through the review of site plans and building permits for new construction and significant renovation of multifamily residential dwellings. The City will continue to assess the impact of commercial and industrial development on housing demand, and the ability of local employees to afford local housing. Where adverse impacts are identified, mitigation measures will be considered to reduce the impact. These measures will include, but are not limited to, the requirement for commercial and industrial developers and employers to contribute an in-lieu fee towards the production of affordable housing and employer assistance to finance affordable housing for their employees. The City will continue to implement energy conservation measures in new housing development through State Building Code, Title 24 regulations, and solar orientation of major subdivisions through Title 20, Chapter 17 of the Municipal Code. New housing construction developed under a water emergency may be required to develop strict conservation guidelines, including but not limited to, mandatory installation of low flush and low flow bathroom and kitchen fixtures, xerophytic landscaping or suspension of landscaping requirements until the water emergency is lifted, and requiring the use of reclaimed water in all construction grading projects. Any such actions shall be in accord with policies adopted by the City in response to declared emergencies. Status : o o D D D Uad Dept p B P CD CD •-'"'. . ; . VComhrieiitiS '- '•• v'Xv The Annual Housing Production Report and this Appendix A table, fulfill the requirement of Program 3.15 and State law for an annual Housing Element program report. This is ongoing work mandated by the requirements of the California Building Code (Title 24) and is occasionally updated by the State Building Standards Commission. As part of the current Housing Element update (draft approved by HCD, pending City Council approval) this program is proposed to be deleted. Energy conservation measures are incorporated into the City's existing standards and development review process, and continue to be implemented through enforcement of Title 24 and City ordinances. Therefore, as a part of the current Housing Element update (draft approved by HCD, pending City Council approval) this program is proposed to be deleted. Water conservation measures are already incorporated into the City's existing standards and development review process, and continue to be implemented through, among other means, enforcement of water-efficient landscaping requirements. Therefore, as a part of the current Housing Element update (draft approved by HCD, pending City Council approval) this program is proposed to be deleted. 2.11 Part 2 - Implementation Status of Housing Element Programs - January 2008 through December 2008 March 2, 2009 Table2.1CY 2008 Implementation Status of Housing Element Programs --.•-. -HE.- -;•-•-' Program Housing Open & Fair Housing Opportunitie s Housing Open & Fair Housing Opportunitie s Housing Open & Fair Housing Opportunitie s (Military) PROGRAM •' :• ' # •' 6.1 6.2 6.3 ""•^.••-.'••^/•'•'•:rl ^•'••^&^rli^n::;r''<'--''>-/:^v:-SHf:?' -••; With assistance from outside fair housing agencies, the Housing and Redevelopment Department, which consists of the Housing Authority and Redevelopment Agency, will provide educational materials on "fair housing law and practices" to tenants, property owners, and others involved in the sale and rental of housing within the City of Carlsbad. This information will be available upon request and also distributed at seminars, presentations and public locations such as the City library, community recreation centers, administration buildings and the Chamber of Commerce, as well as through newsletters and other appropriate media. With assistance from outside fair housing agencies, the Housing and Redevelopment Department will continue its program to monitor and respond to complaints of discrimination. As appropriate, the Department will refer interested parties to the appropriate agencies for fair housing complaint investigation, processing and resolution. If any action is required beyond local agency action, complaints will be forwarded to the appropriate State and/or Federal Agencies. The City will assure that information on the availability of assisted, or below-market housing is provided to all lower-income and special needs groups. The Housing and Redevelopment Agency will provide information to local military and student housing offices of the availability of low-income housing in Carlsbad. Status o o o Lead Dept. HRD HRD HRD '; -; '•"--'-' • • '.: • ' Comments- - . - • -./-/•;•>•? - - City continued to contract with The Center for Social Advocacy to provide fair housing education and counseling. The Center for Social Advocacy continues to assist the City in processing complaints. City website makes information available to all income groups. The Housing and Redevelopment Department regularly makes presentations to various community groups regarding the availability of housing. The Department also maintains an interest list. Persons on the interest list receive information regarding new affordable housing developments. The City also prepared and distributed a new affordable housing brochure which provides additional information for all income groups. 2.12