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HomeMy WebLinkAbout2010-03-23; City Council; 20163; Annual Housing Element Progress Report January 2009 to December 2009CITY OF CARLSBAD - AGENDA BILL 11 AB# 20,163 MTG. 3/23/10 DEPT. CED Annual Housing Element Progress Report for January 2009 - December 2009 DEPT. DIRECTOR £(&_ CITY ATTORNEY CITY MANAGER RECOMMENDED ACTION: That the City Council ADOPT Resolution No. 2010-054. ACCEPTING the Annual Housing Element Progress Report for January 2009 through December 2009. ITEM EXPLANATION: The attached Annual Housing Element Progress Report for January 2009 through December 2009 (Exhibit 2) has been prepared to comply with Government Code Section 65400(a)(2). According to Government Code Section 65700, charter cities are exempt from the requirement to prepare an annual report on the status of the housing element unless they intend to maintain eligibility for certain grant funding programs. Therefore, the report serves the following purpose: • Meet the grant funding requirements of certain SANDAG and California Department of Housing and Community Development (HCD) programs. o For example, certain grant programs administered by SANDAG require member jurisdictions to report on their progress toward meeting their share of the regional housing need. • Implement Carlsbad Housing Element Program 3.20, which requires the preparation of an annual report on the progress and effectiveness of the City's housing programs. Contents of the Report The Annual Housing Element Progress Report for January 2009 through December 2009 (Exhibit 2) consists of: • Housing Production Status (Part 1) - Provides the status of housing production in the City and the progress in meeting its share of regional housing needs during Calendar Year (CY) 2009. • Program Implementation Status (Part 2) - Provides the status of the City of Carlsbad 1999 Housing Element programs and the progress the City has made in its implementation during CY 2009. The implementation status of each of the 49 programs contained within the 1999 Housing Element is indicated in a table along with any additional comments. Note: the reported implementation status is for the programs from DEPARTMENT CONTACT: Corey Funk 760-602-4645 corev.funk(5)carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES Dn D D Page 2 the 1999 Housing Element, which was the effective housing element for CY 2009. An updated Housing Element was adopted by the City Council on December 22, 2009, and the implementation status of its programs will be covered in the CY 2010 report. 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. 2010-054 2. Report titled: Annual Housing Element Progress Report for January 2009 through December 2009 3. Appendix A: Description of terms and methods. 1 RESOLUTION NO. 2010-054 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING THE ANNUAL 3 HOUSING ELEMENT PROGRESS REPORT FOR JANUARY 2009 THROUGH DECEMBER 2009. 4 WHEREAS, the attached Annual Housing Element Progress Report has been 5 prepared to comply with Government Code Section 65400(a)(2), meet the grant funding 6 requirements of certain SANDAG and California Department of Housing and Community 7 Development (HCD) programs, and implement Housing Element Program 3.20. The purpose of 8 the report is to provide information to the state, City Council and the public as to the 9 effectiveness of the Housing Element programs, as well as mark the City's progress in meeting 10 its share of the region's housing needs. The City Council of the City of Carlsbad, California, does hereby resolve as 12 follows: 1. That the above recitation is true and correct 14 2. That the City Council of the City of Carlsbad accepts the report and directs the 15 Planning Director to submit the report to the California Office of Planning and Research, the California Department of Housing and Community Development, and the San Diego Association 16 of Governments. 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 23rd day of March, 2010, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn. NOES: None. ABSENT: None. A. LEWIS, Mayor ATTEST: )RRAINE M. W /SEAL) Q , City Cle Parti page 1 of 3 ANNUAL HOUSING ELEMENT PROGRESS REPORT Part 1 - Housing Production Status (CCR Title 25 §6202 ) Jurisdiction Reporting Period City of Carlsbad Jan. 1,2009 Dec. 31, 2009 Table A Annual Building Activity Report Summary - New Construction Very Low-, Low-, and Mixed-Income Multifamily Projects Housing Development Information 1 Project Identifier (maybeAPN No., project name or address) 1 170 CHESTNUT AV 4075 HARBOR DR 2434 BUENA VISTA CR 3218 MCKINLEYST 3372 HIGHLAND DR 2230 NOB HILL DR 3825GARFIELDST 1212 OAK AV 1 204 OAK AV 1 200 OAK AV 1208 OAK AV 7047CORINTIAST 2 3 Tenure Unit Category*" R=Renter : O=0wner SU R SU R SU R SU R SU R SU R SU R SU R SU R SU R SU R SU R 4 Affordability by Household Incomes Very Low- Low- Income Income 1 1 1 1 1 1 1 1 1 1 1 1 (9) Total of Moderate and Above Moderate from Table A3 >• > (10) Total by income Table A/A3 ^ *• (1 1 ) Total Extremely Low-Income Units* 12 ... i AboveModerate- f ., .• Moderate-ncome : ,i Income 0 163 163 5 Totat Units per Project 1 1 1 1 1 1 1 1 1 1 1 1 163 175 5a Est * Infill Units* Housing with Financial Assistance and/or Deed Restrictions 6 7 Assistance „ ._ i Deedrs- | "-- Development | See Instructions j See Instructions Zoning Ord." Zoning Ord.** Zoning Ord.** Zoning Ord.** Zoning Ord.** Zoning Ord.** Zoning Ord.** Zoning Ord.** Zoning Ord.** Zoning Ord.** Zoning Ord.** Zoning Ord.** Housing without Financial Assistance or Deed Restrictions 8 Note below the number of units determined to be affordable without financial or deed restrictions and attach an explanation how the iurisdiction determined the units were affordable. Refer to instructions. * Note: These fields are voluntary ** Carlsbad Zoning Ordinance requires these units to be rented to a low income individual. *** Unit Category: SF = Single-family 2-4 = Two to four unit structures 5+ = Five or more unit structures SU = Second units MH = Mobilehome Jurisdiction Reporting Period ANNUAL HOUSING ELEMENT PROGRESS REPORT Part 1 - Housing Production Status (CCR Title 25 §6202 ) City of Carlsbad Jan. 1. 2009 Dec. 31,2009 Parti page 2 of 3 Table A2 Annual Building Activity Report Summary - Units Rehabilitated, Preserved and Acquired pursuant to GC Section 65583.1 (c)(1) Please note: Units may only be credited to the table below when a jurisdiction has included a program it its housing element to rehabilitate, preserve or acquire units to accommodate a portion of its RHNA whichmeet the specific criteria as outlined in GC Section 65583 1(c)(1) Activity Type (1) Rehabilitation Activity (2) Preservation of Units At-Risk (3) Acquisition of Units Affordability by Household Incomes Extremely Low- Income* Very Low- Income Low- ! TOTAL Income ! UNITS (4) Description of Activity Including Housing Element Program Reference (5) Total Units by Income ' Note: This field is voluntary Table A3 Annual building Activity Report Summary for Above Moderate-Income Units (not including those units reported on Table A) 1. Single Family 2. 2 -4 Units 3. 5+ Units Second Unit 5. Mobile Homes 6. Total 7. Number of infill units* No. of Units Permitted for Moderate No. of Units Permitted for Above Moderate 137 26 163 * Note: This field is voluntary Parti page 3 of 3 ANNUAL HOUSING ELEMENT PROGRESS REPORT Part 1 - Housing Production Status (CCR Title 25 §6202 ) Jurisdiction Reporting Period City of Carlsbad Jan. 1, 2009 Dec. 31,2009 Table B Regional Housing Needs Allocation Progress Permitted Units Issued by Affordability Enter Calendar Year starting with the first year of the RHNA allocation period. See Example. Income Level Very Low Low Moderate Deed Restricted Non-deed restricted Deed Restricted.Non-deed restricted Deed Restricted Non-deed restricted Above Moderate Total RHNA by COG. Enter allocation number: RHNA Allocation by Income Level 1,922 1,460 1,583 3,411 8,376 Total Units > > * Remaining Need for RHNA Perio 2003 Year 1 85 336 174 672 1,267 2004 2005 Year Year 2 3 200 70 184 1092 1,330 1,476 1,400 2006 2007 2008 Year Year Year 456 100 11 89 10 96 2 306 358 147 495 368 256 2009 Year Year Year 789 12 ; : 163 175 Total Units to Date (all years) 196 813 360 4,068 5.437 Total Remaining RHNA by Income Level 1,726 647 1,223 -657 2,939 Note: units serving extremly low-income households are included in the very low-income permitted units totals. ANNUAL HOUSING ELEMENT PROGRESS REPORT Part 2 - Program Implementation Status January 2009 through December 2009 CODE KEY Status:Lead Department or Division: 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 BCE - Building & Code Enforcement CED - Community & Economic Development HNS - Housing & Neighborhood Services P- Planning Part 2 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status HE Program PROGRAM #Description Status Lead Dept Comments Housing Preservation (Condo Conversions) 1.1 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 affordable 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 households. o Housing Preservation (Mobile Home Parks) 1.2 The City will continue to implement the City's existing Residential Mobile Home Park zoning ordinance (Municipal Code 21 .37) which sets conditions on changes of use or conversions of Mobile Home Parks. o In 2009, the City Attorney processed an ordinance amendment to Chapter 21 .37 for consistency with State law. Housing Preservation (Mobile Home Parks) 1.3 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. 0 HNS 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. Housing Preservation (Rehab) 1.4 The Building & Code Enforcement Division will continue to implement the program to monitor and report to the Housing & Neighborhood Services Dept., information on housing stock that is substandard and or deteriorating. Identified structures will continue to be reported to the Housing & Neighborhood Services Dept. for possible assistance under the City's rehabilitation and assistance programs. 0 BCE/ HNS City has an informal program. The Building & Code Enforcement Division respond to complaints and often refer owners to the Housing office for possible assistance with rehabilitation of substandard dwelling units. For CY 2009, no referrals were made to the Housing office. Housing Preservation (Rehab Subsidies - Rental Stock) 1.5 The City, through the Housing & Neighborhood Services Department and in conjunction with the Building & Code Enforcement Division, 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 & Code Enforcement Division 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. o HNS Program available. date. No projects/participants to Housing Preservation (Acquisition & Rehab) 1.6 The City through the Housing & Neighborhood Services 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. o HNS Program available. No additional projects to date. 2.2 Part 2 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status HE Program PROGRAM #Description Status Lead Comments Housing Preservation (Rehab Incentives) 1.7 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. O HNS Program available. No additional projects to date. Housing Preservation (Rehab Homeowner) 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. O HNS 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. One loan approved in 2009. Housing Quantity & Diversity (Development Standards) 2.1 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. 0 Housing Quantity & Diversity (Development Standards) 2.2 The Planning Division, 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. O In 2009, the updated Planned Development Ordinance was approved by the Coastal Commission and became effective, which will better facilitate cluster development and smaller, infill projects. Also in 2009, the City Council approved (Coastal Commission approval is pending) an amendment to the Nonconforming Buildings and Uses ordinance in order to increase flexibility in the regulations and allow the repair, alteration, replacement and expansion of legal nonconforming buildings and uses, including buildings over density. Housing Quantity & Diversity (Developable Acreage Monitoring) 2.3 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. O Housing Quantity & Diversity (Adaptive Reuse) 2.4 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 principal targeted area for this type of housing is in the downtown Village area. O HNS/ P City will continue to explore the potential for adaptive reuse of buildings, especially those within the Village 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. For CY 2009, no buildings were converted under this program. 2.3 Part 2 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status HE Program Housing Quantity & DlUPTQltuL-*I vci oily (Mixsd Uss) LJHousing Quantity & Diversity (Coastal Developmnt Monitoring) Housing Spec. Needs Groups (Farm Worker) PROGRAM # 2.5 2.6 3.1 Description 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. 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 , 1 982. 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. 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. Status 0 o o Lead Dept P P/HNS/ BCE P/HNS Comments 1 . In 2009, 5 units were permitted in the Coastal Zone. 2. 0 3. 0 4. 0 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 conducting design and other predevelopment activities necessary for 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 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2008 Housing Element Program Implementation Status HE Program 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 Description 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 0 0 0 0 o Lead Dept P HNS HNS HNS P HNS Comments 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. The City provides funding for and is a member of the North County Regional Winter Shelter Program which provides shelter and related case management services for homeless persons and families. 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. One application for a senior condo development approved by the City in 2008 is currently seeking tax credits for financing and the other developer is attempting to obtain other financing for their project. 2.5 Part 2 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status HE Program PROGRAM #Description Status Lead Dept Comments 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 O HNS 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, Carlsbad decided not to 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 submitted its draft 2005-2010 Housing Element to the State for certification in January of 2010. 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/HNS City continues to implement the Inclusionary Housing Ordinance. Since the inception of the ordinance, the City has produced 2,146 residential units affordable to lower income households through its Inclusionary Housing Program. For CY 2009, none of the affordable units produced were through the program. 2.6 Part 2 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status HE Program Housing Spec. Needs Groups Inclusionary In-Lieu Fees Housing Spec. Needs Groups Lwr. Income Development (Density Bonus) Housing Spec. Needs Groups Lwr. Income Development (Alternative Housing) PROGRAM # 3.6.b 3.7.a 3.7. b Description 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 , 1999, 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 65913.4 and 65915. (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 & Neighborhood Services 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. Status o 0 o Lead Dept P p P Comments 2.7 Part 2 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status HE Program Groups Lwr. Income Development (City Initiated Housing Spec. Needs Developmnt (Section 8) Housing Spec. Needs Groups Lwr. Income Dev. (Excep. Housing Spec. Needs Groups Lwr. Income Dev. (Priority Processing) Housing Spec. Needs Groups Lwr. Income Dev. (in-Kind Improvemnts) PROGRAM # 3.7.C 3.7.d 3.7.e •3 7 f 3.7.g Description The City of Carlsbad, through the offices of the Housing Authority and through the Housing & Neighborhood Services 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 n D Lead Dept HNS HNS P p P Comments The City continues to research available property for purchase and provision of affordable housing. City continues to operate its Section 8 Rental Assistance program. The Program currently assists approximately 620 households. As part of the 2005-2010 Housing Element update (adopted by the City Council, pending HCD certification) this program is proposed to be revised and integrated with Program 3.5. As part of the 2005-2010 Housing Element update (adopted by the City Council, pending HCD certification) this program is proposed to be revised and integrated with Program 3.5. As part of the 2005-2010 Housing Element update (adopted by the City Council, pending HCD certification) this program is proposed to be revised and integrated with Program 3.5. 2.8 Part 2 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status HE Program Housino Spec Needs Groups Lwr. Income Development Housing Spec Needs Groups Lwr I n co m e Development LJHousing Spec Needs Groups (Growth Management) LJHousing Spec NGGC!S Groups (Special NeedS Housing Priorities) PROGRAM# 3 7 h (Policy - no Program) 3.7.i 3.8 3.9 Description 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 & Neighborhood Services Department with assistance from the Planning Division 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 Q o 0 Lead Dept Comments i p P P HNS As part of the 2005-2010 Housing Element update (adopted by the City Council, pending HCD certification) 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 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status 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) PROGRAM # 3.10.a 3.10.b 3.11 3.12 3.13 3.14 Description 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 & Neighborhood Services Department will work to secure funding and develop additional lending programs for moderate income, especially first- time home buyers. The Planning Division 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 & Neighborhood Services 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 o o 0 o Lead Dept HNS HNS P/HNS HNS HNS HNS Comments City will continue to consider this option. No projects proposed to date. For CY 2009, the City assisted two lower income households through the Mortgage Credit Certificate Program, and implemented a First Time Homebuyer Down Payment and Closing Cost Program, which assisted four lower income households in 2009. 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. For CY 2009, no funds were awarded. 2.10 Part 2 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status 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 # 3.15 3.16 4.1 5.1 5.2 Description To retain the Housing Element as a viable policy document, the Planning Division 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-!ieu 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 0 D D D Lead Dept P BCE P CED CED Comments 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 2005-2010 Housing Element update (adopted by the City Council, pending HCD certification) 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 part of the 2005-2010 Housing Element update (adopted by the City Council, pending HCD certification) this program is proposed to be deleted. 2.11 Part 2 - Program Implementation Status - January 2009 through December 2009 Table 2.1 CY 2009 Housing Element Program Implementation Status HE Program Housing Open & Fair Housing Opportunities Housing Open & Fair Housing Opportunities Housing Open & Fair Housing Opportunities (Military) PROGRAM # 6.1 6.2 6.3 Description With assistance from outside fair housing agencies, the Housing & Neighborhood Services Department, which includes the Housing Authority, 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 & Neighborhood Services 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 & Neighborhood Services Dept. 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 HNS HNS HNS 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 & Neighborhood Services 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. 2.12 ANNUAL HOUSING ELEMENT PROGRESS REPORT Appendix A - Description of terms and methods JANUARY 2009 THROUGH DECEMBER 2009 Regional Housing 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 the local regional councils of government (SANDAG) 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. 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 SANDAG. Table 1 shows Carlsbad's share of the current RHNA and is based upon housing growth estimated by the State and SANDAG to occur in Carlsbad during the period January 1, 2003 through June 30, 2010. Table 1: Carlsbad's Share of the RHNA January 1, 2003 through June 30, 2010 Income Group Definition* (%of AMI*' New Construction Needs (in housing units) Very Low Low Moderate Above-Moderate Totals 50% or under 51 - 80 % 81 -120% Over 120% * Definitions are from HUD, via the California Department of Housing and Community Development. ** AMI is the Area Median Income. The 2009 AMI for San Diego-Carlsbad-San Marcos MSA for a family of four is $74,900. 1,922 1,460 1,583 3,411 8,376 20 Definition of Income Groups - Table 1 defines each of the four income groups as a percentage of the county area median income (AMI). HUD annually revises the AMI based on cost of living issues such as the relationship of housing prices to income. For 2009, HUD established the AMI for San Diego County at $74,900. In addition to establishing the AMI, HUD also establishes income limits for each of the four income groups which are adjusted for family size so that larger households have higher income limits (see Table 2 below). Table 2: CY 2009 Qualifying Limits on Annual Income By Household Size Income Group Very Low Low Moderate Above Moderate Source: "2009 Household Persons per Household 234 $ 33,050 $ 52,900 $ 71,900 >$71,900 Income Limits," U.S $ 37,150 $ 41,300 $ 59,500 $ 66,100 $ 80,900 $ 89,900 > $ 80,900 > $ 89,900 Department of Housing and Urban 6 8 $ 47,900 $ 54,500 $ 76,700 $ 87,250 $ 104,300 $ 118,650 >$ 104,300 >$ 118,650 Development (effective March 19, 2009) 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 Table 5 and the tables of Part 1 were made by the Carlsbad Housing and Neighborhood Services Department. 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 (a convention developed in 1993 by member agencies of the San Diego Association of Governments assumes two persons per bedroom). An additional adjustment is also made for utility allowance, as required by HUD. Table 3 provides the resulting maximum market rate rental expenses (which include rent and a utility allowance that increases with household size) for the very low, low, and moderate- income groups for CY 2009. Table 3 CY 2009 Qualifying Rent and Utility Expenses By Number of Bedrooms Income Group Very Low Low Moderate Above Moderate $ $ $ >$ Source: "2009 Household Income Development (effective March 19, 1 826 1,322 1,798 1,798 Limits," U 2009) Number $ $ $ 1, 1, 2, >$2 of Bedrooms 2 033 652 248 248 $ $ $ 3 1,198 1,918 2,608 > $ 2,608 S. Department of Housing and Urban 4 $ 1,363 $ 2,181 $ 2,966 > $ 2,966 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 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 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 $312,900 would be the maximum affordable to a moderate-income family. 2Z Table 4: CY 2009 Qualifying Purchase Price By Number of Bedrooms Income Group Number of Bedrooms 1 2 3 Very Low $ 99,150 $ 123,900 $ 143,700 $ Low $ 158,700 $ 198,300 $ 230,100 $ Moderate $ 215,700 $ 269,700 $ 312,900 $ Above Moderate >$ 215,700 >$ 269,700 >$ 312,900 > * 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). 4 163,500 261,750 355,950 $ 355,950 Other terms - Definitions for terms used in this appendix as well as Part 1 of the report: Assistance Programs/Assisted Units - units receiving financial assistance from the City or other and/or other subsidy sources and have affordability deed restrictions. Deed Restricted Units - units considered affordable due to local program or policy, such as inclusionary housing ordinance. These units may also be assisted units. Non-deed Restricted Units/Market Rate Units - Units that received no financial assistance from the City and have no affordability restrictions. Unit Category - SF (Single-family units), 2-4 (two to four unit structures), 5+ (five or more unit structures, SU (second-units), MH (mobilehomesj. Description of housing product types: 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.