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Home My WebLink About2016-05-17; City Council; Resolution 2016-091Item 3; page 3 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 RESOLUTION NO. 2016-091 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTING THE ANNUAL HOUSING ELEMENT PROGRESS REPORT FOR JANUARY 2015 THROUGH DECEMBER 2015. Exhibit 1 WHEREAS, the attached Annual Housing Element Progress 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 3.18. The purpose of the report is to provide information to the City Council, the State Office of Planning and Research, the State Department of Housing and Community Development, San 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 ofthe region's housing needs. The City Council of the City of Carlsbad, California, does hereby resolve as follows: 1. That the above recitation is true and correct. 2. That the report attached hereto as Attachment A 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 Community Development, and the San Diego Association of Governments. II II II II II Item 3; page 4 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 17th day of _ __:_::M=a:.Ly __ ., 2016, by the following vote to wit: AYES: Hall, Schumacher, Blackburn. NOES: None. ABSENT: Wood, Packard. ATTEST: Item 3; page 5 Jurisdiction Reporting Period Project Identifier (may be APN No., project name or address) 2230610900 2230613300 2230615200 1562123500 "1562123'700 ANNUALELEMENTPROGRESSREPORT Housing Element Implementation (CCR Title 25 §6202 ) City of Carlsbad 1-Jan-15 31-0ec--15 2 Unit Category sou !sou :sou Table A Annual Building Activity Report Summary -New Construction Very Low-, Low-, and Mixed-Income Multifamily Projects Housing Development Information 3 4 5 Affordability by Household Incomes Tenure R=Renter Very low-low- O=Owner Income .Income ,R [R jR Moderate- Income Above Moderate- Income Total Units per Project -----~-·-------. 1 5a Housing with Financial Assistance and/or Deed Restrictions 6 7 Housing without Financial Assistance or Deed Restrictions 8 Assistance Deed Note below the number of units Programs Restricted deiermlned to be affordable without Est. # lnfill for Each Units financial or deed res!Jictions and Units* Development attach an explanation how the 1---------------+--------ljurisdlction determined the unfts were See Instructions See Instructions affordable_ Refer to instructions. Inc ·---- i Inc --------1------+------+------------------------i Inc -------------j--·------t---------- IR 1 Inc I sou ! [R -----+---+---------1 -----[-----C-------1-----+-------+--1-n..,.c---+-------------------- ISDU ·--'--t-----·-'---~ --------------+-------------1----------+--~--------: . 1662124100 !SDU iR 1 1 Inc -iSOU -,-f-R--+ 1 1 -------!-··----+--------1-+------+-j 1 --ln-c--!-------------- ~2_1_027~0 ____ ,_. __ -+----+----------+----------1--------,. --------------------l------1----+-------------- 2121027400 isou IR 1 I Inc ----------------+F--_;.--tl---+------+ -------+--------------j--------i----------------+------....,~-----+-- 212~o~_9oo J~DU __ ~-----~------'--------+--------+-----________ ___1_ 1 Inc --------- (9) Total of Moderate and Above Moderate from Table A3 ~ • 20 200 220 (1 0) Total by income Table A/A3 ,._ ~ 9 20 200 229 (11) Total Extremely Low-Income Units* * Note: These fields are voluntary Attachment 1 page 1 of4 Item 3; page 6 Jurisdiction Reporting Period City of Carlsbad 1-Jan-15 ANNUALELEMENTPROGRESSREPORT Housing Element Implementation (CCR Title 25 §6202 ) 31-Dec-.15 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 jwisdiction has included a program it its housing alement to rehabilitate, preserve or acquire units to accommodate a portion of its RHNA which meet the specific criteria as outlined in GC Section 65583.1 (c)(1) Affordability by Household Incomes Activity Type Extremely Very low-Low-TOTAL (4) Description of Activity Including Housing Element Program Reference Low- Income* Income Income UNITS (1) Rehabilitation Activity 0 ---- (2) Preservation of Units At-Risk 0 (3) Acquisition of Units I 0 {5) Total U111ts by income 0 ! 0 I 0 0 --* Note: This field is voluntary TableA3 Annual building Activity Report Summary for Above Moderate-Income Units (not including those units reported on Table A) I I i ! 1. 2. 3. 4. 5. Single Family** I 2-4 Units 5+ Units Second Unit Mobile Homes I I I No. of Units Permitted for 2 ' : iS Moderate I i I : I I I No. of Units Permitted for I Above Moderate 198 2 I I * Note: This field is voluntary ** Includes 54 single family attached townhomes 6. 7. Total Number of infill units* 20 200 Attachment 1 page 2 of 4 Item 3; page 7 I Jurisdiction City of Carlsbad Reporting Period 1-Jan-15 Enter Calendar Year starting with the first year of the RHNA allocation period. See Example. RHNA Income Level Allocation by Income Level ueea Very Low Restricted 912 -Non:<feed restricted Deed Restricted Low Naii~deed 693 restricted Deed Restricted Moderate ----Non-deed ---1,062 restricted Above Moderate 2,332 I otal KHNA Dy (.;Ulo. 4,999 Enter allocation n':!!·nber: Total Units ~ ~ ... Remaining Need for RHNA Period ~ ~ ~ ANNUALELEMENTPROGRESSREPORT Housing Element Implementation (CCR Title 25 §6202) 3'1-Dec-15 Table B Regional Housing Needs Allocation Progress Permitted Units Issued by Affordability i I I 2010 2011 i 2012 2013 I 2014 I 2015 I I i I I I I Year Year Year Year Year ' Year Year 1 i 2 3 4 5 I 6 7 I 35 L -----------<----------,--, 4 23 6 9 - 1 I 1 1 l ~--~---~-----------------·- 2 56 41 i 5 ! 13 20 371 200 I 364 201 I 235 i 200 i I i : I 377 315 405 207 !. 255 I 229 I ,. i ~ ~ Note: 4nits serving extremly low-income households are included in the very low-income permitted units totals. Year Year 8 I 9 I -------- - i ------- ! i ', Total Units to Date (all years) 35 ------ 42 3 ---~------·- 137 1,571 . 1,788' Total Remaining RHNA by Income Level 877 648 925 761 3,211 Attachment 1 page 3 of 4 Item 3; page 8 Status: C -Completed 0 Ongoing In Process P -Pending D -D.elete ANNUAL HOUSING ELEMENT PROGRESS REPORT Part 2-Program Implementation Status January 2015 through December 2015 --------------------~C~O~D~EKEY ---------------,~~~---------------------------~ Division: = One_., time project for which all work has been completed and local approvals have been obtained = Completed program, but one that requires recurring activity = Staff work is well under way 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 8- CED- HNS- P- F- Building Community & Economic Development Housing & Neighborhood Services Planning Finance L_____----~----~-p-ro_g_r_a_m~·-c_h_a_ng_e_d_c_i_rc_u_m_s_ta_n_c_e_s_,o_r_p_o_ii--cychange -------~--------------------------------_j Item 3; page 9 Part 2-Program Implementation Status-January 2015 through December 2015 Table 2.1 CY 2015 Housing Element Program Implementation Status HE Program T Proaram # Description Status 1 Div Comments The city will continue to discourage and/or restrict condominium I conversions when such conversions .would reduce the number o~ low or I The city considers condominium conversions on Condominium moderate income housing units available throughout the City. AI! a case by case basis. In 2015, the city received Conversion 1.1 condominium conversions are subject to the city's lnclusionary Housing 0 p no applications and issued no permits to convert Ordinance; the in-lieu fees or actual affordable units required by the rental housing to condominiums. ordinance would be used to mitigate the loss of affordable rental units from the city's housing stock. The city will continue to implement the city's Residential Mobile Home Park zoning ordinance (Municipal Code Chapter 21.37) that sets The city continues to implement the mobile Mobile Home conditions on changes of use or conversions of mobile home parks, home zoning ordinance. No applications for Park 1.2 consistent with Government Code Section 66427.5. 0 P,HNS change in use or conversion of a mobile home Preservation I park were received in 2015. The city will also assist lower income tenants of mobile home parks to research the financial feasibility of purchasing their mobile home parks I so as to maintain the rents at levels affordable to its tenants. 2 Item 3; page 10 Part 2-Program Implementation Status-January 2015 through December 2015 Table 2.1 CY 2015 Housing Element Program Implementation Status r--P-ro~~~~~m--~P~r-o-~-ra-m~------·~.--~~------0-e_s_c_r~ip-ti-on 1 S-t-a-tu-s-,1~1 -._D_i_v--,11 -. --_---------C-o-.m~m-e-n-ts--------~~ Requests for acquisition/rehabilitation of rental . 1 properties are considered on a case by case basis. · · Acquisition/ Rehabilitation of Rental Housing Rehabilitation of Owner- Occupied Housing 1.3 1.4 The city will continue to provide assistance on a case-by-case basis to preserJe the existing stock of lower and moderate income rental housing, including: • • I . Provide loans, grants, and/or rebates to owners of rental properties to make needed repairs and rehabilitation. As financially feasible, acquire and rehabilitate rental housing that is substandard, deteriorating or in danger of being demolished. Set- . aside at least 20 percent of the rehabilitated units for extremely- and/or very low income households. 1 As appropriate and determined by City Council, provide deferral or subsidy of planning and building fees, and priority processing. Priority will be given to repair and rehabilitation of housing identified by the city's Building Division as being substandard or deteriorating, and which houses lower income and in some cases moderate income households. As the housing stock ages, the need for rehabilitation assistance may increase. The city will provide assistance to homeowners to rehabilitate deteriorating housing. Eligible activities under this program include such things as repairing faulty plumbing and electrical systems, replacing broken windows, repairing termite and dry-rot damage, and installing horne weatherization improvements. Assistance may include financial .incentives in the form of low interest and deferred payment loans. and rebates. Households targeted for assistance include lower-income and special needs (disabled, large, and senior) households. 3 I [ 0 0 HNS, B HNS On November 6, 2012 the City Council approved a $7 .4 .. million residual receipts loan from the Housing Trust Fund to assist with the acquisition of and rehabilitation of 42 1950's era duplex units in the Barrio (known as the Carol/Harding project) and in 2013, acquisition of the property was completed. The rehabilitated units were rent-restricted for 55 years to low income households (50-60% AMI). In Aug. 2015, the owner submitted an application (SOP 15-18 Pacific Wind) for city review of a proposal to demolish 22 duplexes, consolidate the lots and construct a 90-unit apartment project that would be 100% affordable. Relocation assistance will be provided to existing tenants of the duplexes. In 2014, the city awarded CDBG funds ($454,000) and Housing Trust Funds ($2,600,4600) to Solutions For Change to acquire an existing 16-unit apartment complex in the Barrio and convert it to affordable housing for graduates of their academy that helps homeless families find permanent housing. Over 2015, the property was acquired and families began moving into the property. The city has implemented a Minor Home Repair Grant Program for low-income owner occupied properties that provides loans of up to $5,000, which are forgiven after five years. Two loans were issued in 2015. Item 3; page 11 Part 2-Program Implementation Status-January 2015 through December 2015 Table 2:1 CY 2015 Housing Element Program Implementation Status HE Program Preservation of At-Risk Housing Adequate I Sitesto _Accommodate the RHNA Program # 1.5 2 .. 1 Description One project within the city-Santa Fe Ranch Apartments-may be considered as at risk if the owner pays off bonds early. While this is unlikely since the current income at affordable levels is not substantially lower than the potential income at market rates, the city wiil nonetheless monitor its status. Through monitoring, the city will ensure tenants receive proper notification of any changes. The city will also contact nonprofit housing developers to solicit interest in acquiring and managing the property in the event this or any similar project becomes at risk of converting to market rate. 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 analysis in Section 10.3 (Resources Available) identifies examples of how housing has been built on very small sites, such as .in the Village and Barrio. However, to expand opportunities for additional affordable housing, the city will encourage the consolidation of small parcels in order to facilitate larger-scale developments that are compatible with existing neighborhoods. Specifically, the city will continue to make available an inventory of vacant and underutilized properties to interested developers, market infill and redevelopment opportunities throughout the city, including the Village and Barrio, and meet with developers to identify and discuss potential project sites. 4 -----~----------------------------------~ Stat~u~s-~~D~i~v-~+-~~--~--~C~o~m~m~e~n~ts~---------~ 0 HNS 0 HNS, P The city continues to monitor the affordability status of the Santa Fe Ranch Apartments. To date, the owner has not approached the city about paying off the bonds early. The city reviews residential development applications for compliance with meeting the minimum densities on which the city relies to meet its share of regional housing needs. Consistent with state law and the city's land use policies, the city shall not approve applications below the minimum densities established in the Housing Element unless it makes the following findings: a. The reduction is consistent with the adopted general plan, including the housing element. b. The remaining sites identified in the housing element are adequate to accommodate the City's share of the regional housing need pursuant to Government Code Section 65584. The city continues to make available an inventory of vacant and underutilized properties and works with interested developers on infill and redevelopment opportunities. In Aug. 2015, the owner of the Carol Harding duplexes (see program 1.3) submitted an application (SOP 15- 18 Pacific Wind) for city review of a proposal to demolish 22 duplexes, consolidate the lots and construct a 90-unit apartment project that would be 100% affordable. Item 3; page 12 Part 2 -Program Implementation Status-January 2015 through December 2015 HE Program Table 2.1 CY 2015 Housing Element Program lmplementation.Status --~~~----~--------~~------~------~---~~ ~~P~r=og~ra~m~~---#~~-+---~~-·-•·---·--------~D~e~sc~r~iLpt~io_n~------··------------t~~S~ta=t=u~s~~D~i~v--~ ___________ C_o_m_m __ e_nm ____________ __ Flexibility iri Development Standards Mixed Use 2.2 2.3 The Planning Division, in its review of development applications, may recommend waiving or modifying certain development standards, or propose changes to the Municipal Code to encourage the development of low and moderate income housing. The city offers offsets to assist in the development of affordable housing citywide. Offsets include concessions or assistance including, but not limited to, direct financial assistance, density increases, standards modifications, or any other financial, land use, or regulatory concession that would result in an identifiable cost reduction. The city will encourage mixed-use developments that include a residential component. Major commercial centers should incorporate, where appropriate, mixed commercial/residential uses. 5 0 0 p p The city considers density increases, waivers and modifications to development standards to assist in the development of affordable housing on a case by case basis. In 2015, the city conducted a preliminary review for a mixed use commercial and residential project at 1044 Carlsbad Village Drive that proposed a density increase. The city considers mixed use developments on a case by case basis. The following projects were reviewed or approved in the Village area in 201_5: -CT 13-05 State Street Townhomes project was approved in June 2014, which includes 41 live/work townhomes and six affordable residential condos. The project began issuing building permits in March 2015. -CT 14-01 State Street Mixed Use 30 was approved by City Council in Jan. 2015, and proposes 14 'multi-family residential units, i 3 timeshare units and 4,529 s.f. of commercial space. -Under review is The Wave, which is a mixed use project that proposes 8 residential units, 13 timeshare units and one retail space. -The city conducted a preliminary review for a mixed use commercial and residential project at 1 044 Carlsbad Village Drive that proposed a density increase. Outside of the Village area, the city was conducting reviews of -A development application for the Uptown Bressi project (EIR 15-01), which proposes a mixed use development with 125 townhomes and approximately 80,000 s.f. of commercial space. Item 3; page 13 Part 2 -Program Implementation Status-January 2015 through December 2015 Table 2.1 CY 2015 Housing Element Program Implementation Status r---~H=E---.~p~--~.---~~. rogram Program # Energy Conservation 2.4 Description The city has established requirements, programs, and actions to improve household energy efficiency, promote sustainability, and lower utility costs. The city shall enforce state requirements for energy conservation, including the latest green building standards, and promote and participate in regional water conservation and recycling programs. .. • • • Create a coordinated energy conservation strategy, including strategies for residential uses, as part of a citywide Climate Action Plan. In the Village, encourage energy conservation and higher density development by the modification of development standards (e.g. parking standards, building setbacks, height, and increased density) as necessary to: -Enable developments to qualify for silver level or higher LEED (Leadership in Energy and Environmental Design) Certification, or a comparable green building rating, and to maintain the financial feasibility of the development with such certification. -Achieve densities at or above the minimum required if the applicant can provide acceptable evidence that application of the development standards precludes development at. such densities. Facilitate resource conservation for all households by making available, through a competitive pr.ocess, CDBG funds to non-profit organizations that could use such funds to replace windows, plumbing fixtures, and other physical improvements in lower-income neighborhoods, shelters, and transitional housing. Encourage infill development in urbanized areas, particularly in the Village and Barrio, through implementation of the Village Master Plan and Design Manual and the allowed density ranges in the Barrio. 6 Status Div 0 P,B Comments The city's comprehensive General Plan Update project includes a Climate Action Plan. The General Plan and Climate Action· Plan were approved by the City Council in Sept. 2015. In 2015, the city finaled 1 ,203 building permits for photovoltaic panels on residential structures. In 2015, the city continued to implement the 2013 Building Energy Efficiency Standards as established by the CEC. In 2015, the city continued working on an update to its Village Master Plan and Design Manual that incorporates the area of the Barrio into the plan. Under consideration are policies and standards revisions that would incentivize infill development and enhance pedestrian connections through land uses and building and street design to help realize the smart growth potential of the areas. Item 3; page 14 Part 2-Program Implementation Status-January 2015 through December 2015 f----P_ro_.~"'-;1 _am_--+-_P_ro_~ __ r_am_ !----~··_T_a_b_l_e_.·2-'--._1_._C_Y_D_2:_~_:_r_._i:_:_:_:_in~g-·_e_;_le_m_e-nt-P-ro_g_r:_a_m_lmr---::-:-=-=:===:-n-+ta-. -'-ti0"-~'-'·:_S_tar-tu_s ___ --'-_._C-'o..:...:mc:.cm=e.:c.:nc:..:t:.:::..s ____ =~ The city wm oontlnue to Implement rts lncluslonary Housing Q,dlnance, --1 lnclusionary Housing Ordinance Excess Dwelling Units 3.1 3.2 which requires a minimum of 15 percent of all ownership and qualifying I The city continue~ to e~plore potential adoption I rental residential projects of seven or more units be restricted and of a housing impact fee for development of affordable to lower income households. This program requires an rental units if affordable units are not included agreement between all residential developers subject to this in a development. · 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 term of affordability for the units. For all ownership and qualifying rental projects of fewer than seven units, payment of a fee in lieu of inclusionary units is permitted. 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 2013, the in-lieu fee permarket-rate dwelling unit was $4,515. The fee amount 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 continue to utilize inclusionary in-lieu fees collected to assist in the development of affordable units. The city will apply lnclusionary Housing Ordinance requirements to rental projects if the project developer agrees by contract to limit rent as consideration for a "direct financial contribution" or other form· of assistance specified in density bonus law; or if the project is at a density that exceeds the applicable GMCP density, thus requiring the use of "excess dwelling units," as described in Section 10.3 (Resources Available). Pursuant to City Council Policy Statement 43, the city will continue to utilize "excess dwelling units," described in Section 10.3 (Resources Available), for the purpose of enabling density transfers, density increases/bonuses and General Plan amendments to increase allowed density. 0 0 P, HNS p The city continues to implement its lnclusionary Housing Ordinance. In 2015, building permits were issued for nine dwelling units required to be affordable through lnclusionary requirements for the following projects: • Fair Oaks Valley/Shelley Property (CT 02- 17)-3 SDUs • Valley 17 (CT 12-07)-3 SDUs • Tabata 10 (CT 06-13)-3 SDUs In addition, the following projects receiving building permits in 2015 purchased lnclusionary Housing credits at existing affordable apartments: • La Costa Residential (CT 12-05)-6 credits • T abata/Biackrail 16 (CT 03-06) -3 credits • Coastal Living 1 0 (CT 13-02) -2 credits • La Costa Villas (CT 13c06) - 1 credit • Walnut Townhomes (CT12-03)-2 credits • La Costa Town Square Residentiai!Artero (CT 08-03) ~ 10 credits In 2015 the in-lieu fee per market rate dwelling unit remained at $4,515. Through its continued implementation of the Growth Management Plan, the city tracks development and the Excess Dwelling Unit Bank in its monthly Development Monitoring Report. As of Dec. 2015, the excess unit balance was 764 Based on analysis conducted in Section 10.4 (Constraints and dwelling units inside the Village and 322 units outside of the Village. These units are available Mitigating Opportunities), the city can accommodate its 2010-2020 for qualifying projects, which include affordable l RHNA without the need to utilize excess dwelling units to accommodate housing and density bonuses. the RHNA at each household income level. .~_____t______ ______ _____[_____L______t____ __ ____j 7 Item 3; page 15 Part 2-Program Implementation Status-January 2015 through December 2015 Table 2.1 CY 2015 Housing .Element Program Implementation Status HE Program Program # Description Status Div Comments ~~~~----+---~----~----------------------~~~--~------------~------~--~~--~--------+---~~----~--------~------~----~ Density Bonus 3.3 Consistent with state law (Government Code sections 65913.4 and 65915), the city continues to offer residential density bonuses as a means of encouraging affordable housing development. In exchange for setting aside a portion of the development as units affordable to lower and moderate income households, the city will grant a density bonus over the otherwise allowed maximum density, and up to three financial incentives or regulatory concessions. These units must remain affordable for a period of no less than 30 years and each project must enter into an agreement with the city to be monitored by the Housing and Neighborhood Services Division for compliance. The density bonus increases with the proportion of affordable units set aside and the depth of affordability (e.g. very low income versus low income, or moderate income). The maximum density bonus a developer can receive is 35 percent when a project provides 11 percent of the units for very low income households, 20 percent for low income households, or 40 percent for moderate income households. Financial incentives and regulatory concessions 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 requirement, mixed use development, or other financial contributions. The city is currently amending its density bonus regulations (Municipal Code Chapter 21.86) to ensure consistency with recent changes to state density bonus law. 8 0/C P, HNS The city continues to make available density bonuses in compliance with state density bonus law (SDBL). In 2015, there were no SDBL applications filed with the city. The city also offers density increases through its inclusionary housing program as provided for in Municipal Code Chapter 21.85. In July 2015, the City Council adopted an amendment to the density bonus regulations (ZCA 14-02) in the Zoning Ordinance, Title 21 of the city's Municipal Code. The purpose of the project was to make the city's regulation of density bonuses consistent with California Assembly Bill 2222 (Nazarian) signed into law by the governor at the end of 2014. Since the city had last updated its density bonus ordinance in February 2014, under AB 2222 the state made procedural changes to density bonus law with regard to replacement of demolished dwelling units when requesting a new density bonus and the time of density bonus agreements. An amendment to address AB 2222 was adopted by the City Council in July 2015. Additional changes to the density bonus law were made by the state at the end of 2015 (AB 744) and will be updated in a future amendment by the City Council in 2016. Item 3; page 16 Part 2-Program Implementation Status-January 2015 through December 2015 .·. Table 2.1 CY 2015Housing Element Program Implementation Status HE Program City-Initiated Development · Affordable Housing Incentives Program # 3.4 3.5 Description The city, through the Housing and Neighborhood Services Division, will continue to work with private developers (both for-profit and non-profit) to create housing opportunities for low, very low and extremely low income households. The city will consider using Housing Trust Funds on a case-by-case basis to offer a number of incentives to facilitate affordable housing development. Incentives may include: • • • • Payment of public facility fees; I In-kind infrastructure improvements, including but not limited to street improvements, sewer improvements, other infrastructure improvements as needed; Priority processing, including accelerated plan-check process, for projects that do not require extensive engineering or environmental review; and Discretionary consideration of density increases above the maximum permitted by the General Plan through review and approval of a site development plan (SOP). 9 Status 0 0 Div P, HNS P, HNS, F Comments The city continues to provide information and work with developers to assist them in creating additional housing opportunities for lower income households. On November 6, 2012 the City Council approved a $7.4 million residual receipts loan from the Housing Trust Fund to assist with the acquisition of and rehabilitation of 42 1950's era duplex units in the Barrio (known as the Carol/Harding project) and in 2013, acquisition of the property was completed. The rehabilitated units were rent-restricted for 55 years to low income households (50-60% AMI). In Aug. 2015, the owner submitted an application (SOP 15-18 Pacific Wind) for city review of a proposal to demolish 22 duplexes, consolidate the lots and construct a 90-unit apartment project that would be 100% affordable. Relocation assistance will be provided to existing tenants of the duplexes. The city continues to offer incentives to facilitate affordable housing, including those listed in Program 2.2 above and Program 3.5. Item 3; page 17 Part 2-Program Implementation Status-January 2015 through December 2015 Table 2.1 CY 2015 Housing Element Program Implementation Status 1----=-H-=E=---~=-P-ro_g_r_a_m-.-,.------'--------'---,.------"------.--·-,-----.---------------~---·- Program # Land Banking Housing Trust Fund Section 8 Housing Choice Vouchers Mortgage Credit Certificates 3.6 3.7 3.8 3.9 Description The city will continue to implement a land banking program to acquire I land suitable for development of housing affordable to lower and moderate income households. The land bank may accept contributions of land in-lieu of housing production required under an inclusionary requirement, surplus land from the city or other public entities, 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 by the city or other parties. The city has identified a list of nonprofit developers active in the region. When a city-owned or acquired property is available, the city will solicit the participation of these nonprofits to develop affordable housing. Affordable housing funds will be made available to facilitate development and the city will assist in the entitlement process. The city will continue to maintain the Housing Trust Fund for the fiduciary administration of monies dedicated to the development, preservation and rehabilitation of affordable housing in Carlsbad. The Housing Trust Fund will be the repository of all collected in-lieu fees, impact fees, housing credits, loan repayments, and related revenues targeted for proposed housing as well as other local, state and federal funds. The city will explore additional revenue opportunities to contribute to the I Housing Trust Fund, particularly, the feasibility of a housing impact fee· to . generate affordable rental units when affordable units are not included in a rental development The Carlsbad Housing Authority will continue to administer the city's Section 8 Housing Choice Voucher program to provide rental assistance to very low income households. The city participates in the San Diego Regional Mortgage Credit Certificate (MCC) Program. By obtaining a MCC during escrow, a qualified homebuyer can qualify for an increased loan amount The MCC entitles the homebuyer to take a federal income tax credit of 20 percent of the annual interest paid on the mortgage. This credit reduces the federal income taxes of the buyer, resulting in an increase in the buyer's net earnings. 10 Status 0 0 0 0 Div HNS HNS, F HNS HNS Comments The city continues to implement a land banking program to acquire land suitable for development of housing affordable to lower and moderate income households. In 2015, there were no offers ·to . donate land for affordable housing. The city continues to maintain the Housing Trust Fund, which had an available balance of approximately $14 million as of December 31, 2015. In 2014, the city awarded CDBG funds ($454,000) and Housing Trust Funds ($2,600,4600) to Solutions For Change to acquire an existing 16-unit apartment complex in the Barrio and convert it to affordable housing for graduates of their academy that helps homeless families find permanent housing. The Housing Authority continues to operate Section 8 Housing Choice Voucher Program. Approximately 545 households were assisted through the program in 2015. The city continues to participate in the MCC Program, however, no certificates issued in 2015. Item 3; page 18 Part 2 -Program Implementation Status-January 2015 through December 2015 •. HE P.rogram Senior Housing Housing for Persons with Disabilities I Housing for Large Families Table 2.1 c;Y 2015 Housing Element Program Implementation Status ----~~----~----~----~----~ Program # Description Status Div Comments -----------+~~~~~~~~~~----~~~~~~~~---------~1 The city will continue to encourage a wide variety of senior housing opportunities, especially for lower-income seniors with special needs, through the provision of financial assistance and regulatory incentives as specified in the city's Housing for Senior Citizens Ordinance (Municipal Code Chapter 21 .84). Projects assisted with these incentives will be subjected to the monitoring and reporting requirements to assure 3.10 compliance with approved project conditions. 0 3.11 3.12 In addition, the city has sought and been granted California Constitution Article 34 authority by its voters to produce up to 200 senior-only, low- income restricted housing units. The city would need to access its Article 34 authority only when it provides financial assistance and regulates more than 51 percent of the development The city has an adopted ordinance to provide individuals with disabilities "reasonable accommodation" in land use, zoning and building regulations. This ordinance seeks to provide equal opportunity in the development and use of housing for people with disabilities through flexibility in regulations and the waiver of certain requirements in order to eliminate barriers to fulfilling this objective. ·The city will continue to evaluate the success of this measure and adjust the ordinance as needed to ensure that it is effective. Moreover, the city will seek to increase the availability of housing and supportive services to the most vulnerable population groups, including people with disabilities through state and federal funding sources, such as HUD's Section 811 program and CDBG funding. In those developments that are required to include 1 0 or more units affordable to lower-income households, at least 10 percent of the lower income units should have three or more bedrooms. This requirement does not pertain to lower-income senior housing projects. 11 0 0 The city continues to encourage senior housing opportunities through finanCial assistance and regulatory incentives. No new senior housing was added in 2. The city has begun priority processing for the College Blvd. improvement plans and a mitigation site for future road construction HNS, P impacts. In July 2015, the mitigation site was approved by the City Council, and financing was secured for College Blvd. Completion of College Blvd. will allow the construction of the previously approved Dos Colinas senior facility and the Encinas Creek Apartments project, and facilitate planning for a future potential apartment site known as Basin BJ. p p The city continues to consider requests for "reasonable accommodation" in land use, zoning and building regulations on a case by case basis. No reasonable accommodation requests were received in 2015. The city continues to implement this program as part of its inclusionary housing ordinance. No three-bedroom affordable units were constructed in 2015. Item 3; page 19 Part 2-Program Implementation Status-January 2015 through December 2015 Table 2.1 CY 2015Housing Element Program Implementation Status ~~~H~E~--.-.=P-ro-g~r-a-m-.--~~~----------------~----~------~--~----~~~--~----~.-------~----------~~------~ Program # Description Status Div Comments Housing for the Homeless Supportive Services. for Homeless and Special Needs Groups Alternative Housing Military and Student Referrals 3.13 3.14 3.16 Carlsbad will continue to facilitate and assist with the acquisition, for lease or sale, and development of suitable sites for emergency shelters and transitional housing for the homeless population. This facilitation and assistance will include: • Participating in a regional or sub-regional summit(s) including decision-makers from north San Diego 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 and federal funding for the acquisition, construction and management of shelters; and • Continuing to provide funding for local and sub-regional homeless service providers that operate temporary and emergency shelters. The city will continue to provide CDBG funds to community, social welfare, non-profit and other charitable groups that provide services for those with special needs in the north San Diego County area. Furthermore, the city will work with agencies and organizations that receive CDBG funds to offer a city referral service for homeless shelter and other supportive services. The city will continue to implement its Second Dwelling Unit Ordinance (Section 21.10.015 of the Carlsbad Municipal Code) and will continue to support alternative types of housing, such as hotels and managed living units to accommodate extremely-low income households. 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 Neighborhood Services Division will provide information to local military and student housing offices of the availability of low-income housing in Carlsbad. 12 0 HNS 0 HNS 0 P,HNS 0 HNS The City Council approved a grant of federal Community Development Block Grant program funds in the amount of $454,000 and .a loan from the city's Housing Trust Fund in the amount of $2,436,000 to acquire an existing 16-unit apartment complex at 945 Chestnut Avenue. This purchase ·of property is in partnership with Solutions for Change. After the full rehabilitation of all the units, ·the apartment complex will provide permanent affordable housing opportunities for 16 homeless families who have graduated from the Solutions University. In 2015, the property was acquired and families began moving into the property During the 2015-2016 CDBG program year, the city allocated $76,500 in funding assistance to 8 social service providers in North County and serves as a referral agency for homeless shelters and support services. The city continues to implement the Second Dwelling Unit Ordinance and consider alternative types of housing. In 2015, building permits were issued for 27 second dwelling units. The city provides information on assisted and below markethousing to individuals and groups needing that information. Item 3; page 20 Part 2 -Program Implementation Status-January 2015 through December 2015 Tabte 2.1 CY 2015 Housing Element Program Implementation Status HE Program Coastal Housing Monitoring Program # 3.17 .. Description As a function of the building permit process, the city will monitor and record Coastal Zone housing data including, but not limited to, the following: 1. The number of housing units approved for construction, conversion or demolition 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 of low or moderate income that are authorized to be demolished or converted in the coastal zone pursuant to Section 65590 0f 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 above. The location of the replacement units, either onsite, elsewhere within the city's coastal zone, or within three miles of the coastal zone in the city, shall be designated in the review. 13 Status Div 0 p Comments 1) In 2015, building permits. were issued for 52 dwelling units in the Coastal Zone (37 single family dwellings, of which 7 were attached townhomes, four 2-4 unit structures and 11 second dwelling units). 2) In 2015, building permits were issued for three second dwelling units required to be affordable (through lnclusionary or Density Bonus requirements) in the Coastal Zone. The following projects receiving building permits in 2014 purchased lnclusionary Housing credits at existing affordable apartments: Walnut Townhomes (CT 12-03) and Carlsbad 16 (CT 03-06). 3) 0 4) 0 Item 3; page 21 Part 2 -Program Implementation Status-January 2015 through December 2015 Table 2.1 CY 2015 Housing Element Program Implementation Status HE Program Program # Description Status Div Comments First, to retain the Housing Element as a viable policy document, the Planning Division will review the Housing Element annually and schedule an amendment if necessary. As required by state law. city staff will prepare I I and submit annual progress reports to the City Council, SANDAG, and California Department of Housing and Community Development (HCD). Second, Senate Bill 575 requires that a jurisdiction revise its housing element every four years, unless it meets both of the following criteria: (1) Housing I the jurisdiction adopted the fourth revision of the element no later than March 31, 201 0; and (2) the jurisdiction completed any rezoning contained Element in the element by June 30, 2010. While implementation of the city's 2005-Annual 2010 Housing Element satisfied the first criterion, it did not meet the Progress second. Although rezoning was completed before the end of the extended Report and 3.18 Housing Element period (April 30, 2013) to satisfy the adequate sites 0 P,HNS The city will continue its annual reporting. Mid-Planning program, it was not completed in time to meet the SB 575 requirement. Period Housing The city will build on the annual review process to develop a mid-planning Element period (four-year) Housing Element update that includes the following: Update • Review program implementation and revision of programs and policies, as needed; • Analysis of progress in meeting the RHNA and updates to the sites inventory as needed; • Outcomes from a study session that will be held with the Planning Commission to discuss mid-period accomplishments and take public comment on the progress of implementation. The city will invite service providers and housing developers to participate. With assistance from outside fair housing agencies, the city will continue to offer fair housing services to its residents and property owners. Services include: • Distributing educational materials to property owners, apartment The city contracts with GSA San Diego County, a Fair Housing managers, and tenants; fair housing agency, to provide their services to Services 4.1 • Making public announcements via different media (e.g. newspaper 0 HNS Carlsbad residents and property owners . ads and public service announcements at local radio and television Services include those listed in the column to the channels); left. • Conducting public presentations with different community groups; • Monitoring and responding to complaints of discrimination (i.e . intaking, investigation of complaints, and resolution); and • Referring services to appropriate agencies . 14 Item 3; page 22 ANNUAL HOUSING ELEMENT PROGRESS REPORT Appendix A -Description of terms and methods JANUARY 2015 THROUGH DECEMBER 2015 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, 2010 through Dec. 31, 2020. Table 1: Carlsbad's Share of the RHNA January 1, 2010 through Dec. 31, 2020* Income Group Very Low Low Moderate Above-Moderate Totals Definition** (% of AMI***) 50% or under 51 -80% 81 -120% Over 120% New Construction Needs (in housing units) 9'12 693 '1,062 2,332 4.999 * SANDAG, RHNA PLAN: Fifth Housing Element Cycle Planning for Housing in the San Diego Region 201 o-2020, Table 4, *' Definitions are from HUD, via the California Department of Housing and Community Development. ***AMI is the Area Median Income. The 2015 AMI for San Diego-Carlsbad-San Marcos MSA for a family of four is $73,000. 1 Item 3; page 23 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 2015, HUD established the AMI for San Diego County at $73,000. 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). I Table 2: CY 2015 Qualifying Limits on Annual Income By Household Size Income Group Persons per Household 2 4 6 8 Very Low $ 32,400 $40,500 $47,000 $ 53,500 Low $ 51,850 $64,800 $75,200 $ 85,550 Moderate $ 64,250 $80,300 $93,150 $ 106,000 Above Moderate > $64,250 > $80,300 > $ 93,150 > $ 106,000 Source: "2015 Household Income Limits," U.S. Department of Housing an~ Urban Development (effective Mar. 6, 2015) 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 2015. 2 Item 3; page 24 Table 3 CY 2015 Qualifying Rent and. Utility Expenses By Number of Bedrooms Income Group Number of Bedrooms 1 2 3 4 Very low $ 810 . $1,012 $ 1 '175 $ 1,337 Low $ 1,296 $ 1,620 $ 1,880 $ 2,138 Moderate $ 1,606 $2,007 $2,328 $2,650 ' Above Moderate > $ 1,606 > $2,007 > $2,328 > $2,650 Source: "2015 Household Income Limits," U.S. Department of Housing and Urban Development (effective Mar. 6, 2015) 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 afford ability 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 $279,450 would be the maximum affordable to a moderate-income family. 3 I Item 3; page 25 Table 4: CY 2015 Qualifying Purchase Price By Number of Bedrooms Income Group Number of Bedrooms. 1 2 3 4 Very Low $ 97,200 $ 121,500 $141,000 $ 160,500 Low $ 155,550 $ 194,400 $225,600 $256,650 Moderate $ 192,750 $240,900 $279,450 $ 318,000 Above Moderate > $ 192,750 > $240,900 > $279,450 > $318,000 * 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 correspo'ldence back to HUD affordability 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 homes). 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. 4