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2014-06-17; City Council; 21636; Annual Housing Element Report January 2013 December 2013
CITY OF CARLSBAD - AGENDA BILL 8 AB# MTG. DEPT. 21,636 6/17/14 CED ANNUAL HOUSING ELEMENT PROGRESS REPORT FOR JANUARY 2013 - DECEMBER 2013 DEPT. DIRECTOR CITY ATTORNEY CITY MANAGER RECOMMENDED ACTION: Adopt Resolution No. 2014-129 accepting the Annual Housing Element Progress Report for January 2013 through December 2013. ITEM EXPLANATION: The attached Annual Housing Element Progress Report for January 2013 through December 2013 (Exhibit 2) has been prepared to fulfill the reporting requirements ofthe state (Government Code Section 65400) and the city's Housing Element Program 3.20. In addition, preparing and submitting the reports enables the city to be eligible for certain federal, state and local grant funding programs, examples include the following: • SANDAG - Smart Growth Incentive Program • SANDAG - Active Transportation Grant Program • State - Workforce Housing Reward Program • State - Infill Infrastructure Grant Program • State - Housing-Related Parks Program The Annual Housing Element Progress Report for January 2013 through December 2013 (Exhibit 2) consists of: • Housing Production Status (Part 1) - Provides the status of housing production in the city and the city's progress in meeting its share of regional housing needs during Calendar Year (CY) 2013. • Program Implementation Status (Part 2) - Provides the status of and the city's progress toward implementing the City of Carlsbad 2005-2010 Housing Element programs during CY 2013. Changes in state Housing Element law extended this Housing Element period to April 30, 2013. 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. DEPARTMENT CONTACT: Corey Funk 760-602-4645 corev.funk@carlsbadca.gov FOR cm CLERKS USE ONLY. COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC • DENIED CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • Page 2 ENVIRONMENTAL IMPACT: This report is categorically exempt from environmental review as per CEQA Guidelines Section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. 2014-129 2. Report titled: Annual Housing Element Progress Report for January 2013 through December 2013 3. Appendix A: Description of terms and methods. EXHIBIT 1 1 RESOLUTION NO. 2014-129 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING THE ANNUAL HOUSING ELEMENT PROGRESS REPORT FOR JANUARY 2013 THROUGH DECEMBER 2013. 7 8 9 10 5 WHEREAS, the attached Annual Housing Element Progress Report has been ^ prepared to fulfill the reporting requirements of California State Government Code Section 65400, implement Housing Element Program 3.20, and meet the grant funding requirements of certain SANDAG and California Department of Housing and Community Development programs. The purpose of the report is to provide information to the City Council, the State Office of 11 Planning and Research, the State Department of Housing and Community Development, San 12 Diego Association of Governments and the public as to the status of the Housing Element programs, as well as mark the City's progress in meeting its share of the region's housing needs. The City Council ofthe City of Carlsbad, California, does hereby resolve as follows: 1. That the above recitation is true and correct. 13 14 15 16 jy 2. That the report is accepted and the City Planner is directed to submit the report to the California Office of Planning and Research, the California Department of Housing and 18 Community Development, and the San Diego Association of Governments. 19 "NOTICE TO APPLICANT" 20 The time within which judicial review ofthis decision must be sought is governed 21 by Code of Civil Procedure, Section 1094.6, which has been made applicable in the City of Carlsbad by Carlsbad Municipal Code Chapter 1.16. Any petition or other paper seeking review 22 must be filed in the appropriate court not later than the ninetieth day following the date on which this decision becomes final; however, if within ten days after the decision becomes final a request for the record is filed with a deposit in an amount sufficient to cover the estimated cost or 24 preparation of such record, the time within which such petition may be filed in court is extended to not later than the thirtieth day following the date on which the record is either personally 25 delivered or mailed to the party, or his attorney of record, if he has one. A written request for the preparation ofthe record ofthe proceedings shall be filed with the City Clerk, City of Carlsbad, 26 1200 Carlsbad Village Drive, Carlsbad, CA. 92008. 23 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 ofthe City Council ofthe City of Carlsbad on the 17*'' day of June, 2014, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Schumacher and Blackburn. None. ABSENT: None. MATT HALL, Mayor ATTEST: BARBARA ENGLESON, Clerk ^^^[^BARA ENGLESON, c - E " u 1 EXHIBIT 2 I— (O c (0 q> LU C ^ fSl ° O a ten 5; *- ^ ^ I o S UJ y. HI .5 _j so z < R) CO 5 CM 5 X— O c o ••g i3 3 « w o §i «1 1 *; « i E .Q § O |2 « g 1 s" 3 O ffl -J a a. ••5 ? u '•5 « r o a & 1.11 III lis I s ° il o £ I E .£ c a u. ra Q- i ^ lis! •8 I O in c 01 ai Q « lis 8 0- o: o 5s 04 ^ V 0. CO M 5 < c £ » •o o s § o .a < - 0. E o 1- 3 i OH O Q. UJ tx: c o (O § LU C ^ o ^ O c I^ 5 IO S: o o c^ CD Z UJ LLI liJ .s _J < - a: fl) o UJ 9- c i o CN < .a n c n 3 12 3 a .£ 's U < •o c •o 0) £ 0) to s> a. •o ~ S s: S oo •£ » in (O .-^ § c s S 4) o °-•2 o) tj .= ID O 'Z o. = 5 E 3 tn •e o Q. 0) OC > U < 3 ffi 75 3 C C < (0 o 2 2 6 Si go m O o .S r. in 0) if ti "I 5 CK S 1 E I c a> E o u c 2< a> £ •a n o n S » c 5 o < € i: O *- fl) < « j3 I Ec 3 a> OT <« o ** Q. O) ^ .E 0£ :5 5" = < o 3 c < o a . a E o X a, 2 Q. o 5 = *> o C " E " I I— s UJ c ^ sis ^ I o UJ .c z < w (A 2 I I c o (0 u o m < a> 0) c 3 O c o "5) a> .Q 10 •s I •a o 3 W c •a 0. o 0) S 0- .O g, u .= » o -> DC Total Remaining RHNA by Income Level oo S cn 1.196 3,695 tal Units D Date II years) m CO LZ CM S 1,136 1,304 To ^ S ™ .... >- ^ 00 1 CO > 1 in >- CO o CM c5 ^ >--o CN o (N CM O CM c5 ... >-3 CO m o 2011 1 CM m m CO CM to o o CN CO 2010 m CN CO 1^ CO A A the first year of Example. 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EXHIBIT 3 ANNUAL HOUSING ELEMENT PROGRESS REPORT Appendix A - Description of terms and metiiods JANUARY 2013 THROUGH DECEMBER 2013 Regional Housing Needs - The determination of liousing 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 ofthe current RHNA and is based upon housing growth estimated by the State and SANDAG to occur in Carlsbad during the period January 1, 2010 through Dec. 31, 2020. Table 1: Carlsbad's Share efthe RHNA January 1, 2010 threugh Dec. 31, 2020* Income Group Definition** (% of AMI***) New Construction Needs (in housing units) Very Low 50% or under 912 Low 51 - 80 % 693 Moderate 81 -120% 1,062 Above-Moderate Over 120% 2,332 Totals 4.999 * SANDAG, RHNA PLAN: Fifth Housing Element Cycle Planning for Housing in the San Diego Region 2010-2020, Table 4, ** Definitions are from HUD, via the California Department of Housing and Community Development. "**AMI is the Area Median Income. The 2013 AMI for San Diego-Carlsbad-San Marcos MSA for a family of four is $72,300. 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 2013, HUD established the AMI for San Diego County at $72,300. 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 2013 Qualifying Limits on Annual Income By Household Size Income Group 2 Persons per Household 4 6 8 Very Low $ 32,250 $40,300 $ 46,750 $ 53,200 Low $ 51,600 $ 64,500 $ 74,850 $ 85,150 Moderate $ 63,650 $ 79,550 $ 92,300 $ 105,050 Above Moderate > $ 63,650 > $ 79,550 > $ 92,300 >$ 105,050 Source: "2013 Household Income Limits," U.S. Department of Housing and Urban Development (effective Dec. 11, 2012) 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 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 2013. Table 3 CY 2013 Qualifying Rent and Utility Expenses By Number of Bedrooms Income Group 1 Number of Bedrooms 2 3 4 Very Low $ 806 $ 1,008 $ 1,169 $ 1,330 Low $ 1,290 $ 1,612 $ 1,871 $2,128 Moderate $ 1,591 $ 1,988 $ 2,307 $ 2,626 Above Moderate >$ 1,591 >$ 1,988 > $ 2,307 > $ 2,626 Source: "2013 Household Income Limits," U.S. Department of Housing and Urban Development (effective Dec. 11, 2012) 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 $276,900 would be the maximum affordable to a moderate-income family. 3\ Table 4: CY 2013 Qualifying Purchase Price By Number of Bedrooms Income Group 1 Number of Bedrooms 2 3 4 Very Low $ 96,7500 $ 120,900 $ 140,250 $ 159,600 Low $ 154,800 $ 193,500 $224,550 $ 255,450 Moderate $ 190,950 $ 238,650 $ 276,900 $315,150 Above Moderate > $ 190,950 > $ 238,650 > $ 276,900 >$ 315,150 * 3X multiplier wras 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 affordabilitv rules based upon persons per household (as opposed to bedrooms). 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 (mobile homesj. 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.