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HomeMy WebLinkAbout11 - Housing Element Progress Report AddendumCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 11 October 23, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Brandon Nichols, Associate Planner (949) 644 -3234, bnichols @city.newport- beach.ca.us SUBJECT: Housing Element Progress Report Addendum RECOMMENDATION: Review the Housing Element Progress Report Addendum and direct staff to forward the addendum to the State Department of Housing and Community Development. DISCUSSION: California Government Code Section 65400 requires the City to file an annual report every October to its "legislative body," the State Office of Planning and Research (OPR), and the State Department of Housing and Community Development (HCD). The report is required to provide information on the status of the Housing Element and the City's progress in implementing its programs as well as its progress in meeting regional housing needs goals. The City must also report on its efforts to remove governmental constraints to the maintenance, improvement, and development of housing for all income levels. As required by State Housing Element Law, staff completed a detailed Housing Element Progress Report in October 2006. This report was reviewed by the City Council at the October 24, 2006, hearing. Consistent with state law at the time, the report covered the 2005 -2006 fiscal year. New housing legislation has changed the reporting period to the calendar year, thus requiring an addendum to the original report that covers the period from July 2006 through December 2006. The purpose of this report is to cover that gap period. The next report will be conducted in April 2008 and will cover the 2007 calendar year. The Planning Commission reviewed the addendum at their October 4th, 2007, meeting and recommended a minor clarification of data contained in the table Housing Element Progress Report Addendum October 23, 2007 entitled "City's Progress in Meeting its Share of Regional Housing Need ". The change clarified the remaining need, in number of dwelling units, for each income level. Environmental Review Not subject to CEQA, as the action is not a project as defined in Section 15378(b)(2) of the Public Resources Code. Prepared by: Brandon Nichols, Associate Planner ATTACHMENTS Submitted by: �. .. 0* A. Housing Element Progress Report Addendum Attachment A Housing Element Progress Report Addendum CITY OF NEWPORT BEACH HOUSING ELEMENT PROGRESS REPORT ADDENDUM July- December 2006 The Newport Beach Housing Element was adopted in July 2006. Since then, City staff has been diligent in their attempts to implement the Housing Element's goals and programs. This report evaluates these programs and outlines attempts made to pursue program and goal fulfillment. California Government Code Section 65400 specifically mandates that this report provide the following information: (A) a review of the City's progress in fulfilling its share of the Regional Housing Needs Assessment; (B) a complete detailed status report on the implementation of each of the housing programs of the City's Housing. Plan; and (C) a review of actions and programs adopted to remove or mitigate governmental constraints on the development of housing for all income levels. A. PROGRESS IN MEETING REGIONAL HOUSING NEEDS (RHNA GOALS) The Southern California Association of Governments (SCAG) prepared a Regional Housing Needs Assessment (RHNA) to identify the housing need for each jurisdiction within the SCAG region. SCAG, through the RHNA process, assigned Newport Beach a certain share of housing units that it should provide between the 1998 — 2005 planning period in an effort to satisfy housing needs resulting from the projected growth in the region. To accommodate projected growth in the region, SCAG estimated that the City needed to target its housing unit production to accommodate 476 new housing units. With the annexation of Newport Coast in 2001, the City agreed to transfer 945 units from the Orange County Regional Housing Needs allocation to the Newport Coast area. This agreement was made since the Irvine Company committed to the County to fulfill its allocation. However, since the County is still responsible for issuing building permits for the area, the analysis on meeting the RHNA allocation does not include the 945 Newport Coast units. Data from the County of Orange regarding the number of issued building permits is forthcoming. Due to proposed changes in RHNA methodology, jurisdictions in the SCAG region did not receive new RHNA allocation numbers until July 2007. For the purposes of this report, the RHNA numbers contained in the adopted Housing Element (1998 -2005 Planning Period numbers) are used. The City is currently working with HCD to certify the City's revised Housing Element and will also be updating the Housing Element to incorporate the new RHNA numbers and other statutory requirements. The table below summarizes the need for housing, distributed by income, calculated through the RHNA process for the 1998 -2005 Planning Period. TOTAL RHNA CONSTRUCTION NEED BY INCOME 1998 -2005 VERY Low LOW MODERATE ABOVE MODERATE_ TOTAL 86 53 83 254 476 18% 11% 17% 53% 100% The City Building Department maintains a detailed Building Activity Report for each fiscal year. The report lists the total number of different types of construction permits issued, as well as the number of demolition permits issued. This data was used to create the following table illustrating the total number of new additional units that were permitted from 1998 -2006. TOTAL NUMBER OF NEW ADDITIONAL HOUSING UNITS PERMITTED 1998 -2006 FISCAL YEAR NEW UNITS DEMOLISHED UNITS TOTAL ADDITIONAL UNITS 1 ST 6 MONTHS OF 1998 315 180 135 1998 -1999 1018 158 860 1999 -2000 742 258 484 2000 -2001 234 168 66 2001 -2002 159 130 29 2002 -2003 162 174 -12 2003 -2004 198 162 36 2004 -2005 329 170 159 2005 - 2006* 233 221 12 TOTAL 3390 1621 1769 INCLUDES PERMITS ISSUED THROUGH THE END OF CALENDAR YEAR 2006 The City issued a total of 1,757 new additional residential building permits during the 1998 -2005 RHNA period. This number well exceeds the total 476 units projected by SCAG. During the 2004 -2005 reporting period the City issued 159 permits for new additional dwelling units. 120 of the new units are a result of building permits issued for the Bayview Landing Senior Affordable Housing Project. With the exception of one "manager's unit' all of the 120 units are designated for very low and low income seniors. CITY'S PROGRESS IN MEETING IT'S SHARE OF THE REGIONAL HOUSING NEEDS ASSESSMENT DURING RHNA PERIOD 1998 -2005 INCOME CATEGORY VERY Low LOW MODERATE ABOVE MODERATE PROJECTED NEED 86 53 83 254 TOTAL NEW UNITS 24 95 0 1637 PERMITTED 1198 -6/05 REMAINING NEED 62 0 83 0 B. HOUSING PROGRAM IMPLEMENTATION STATUS GOAL H1 PROGRAM I GOAL STATUS 1.1.1 Improve housing quality and prevent On -going deterioration of existing neighborhoods by strictly enforcing The Uniform Housing Code building code regulations and abating is adopted and continually code violations and nuisances. enforced by the Building Department and Code Enforcement Department. The Water Quality and Code Enforcement Department continually administers an enforcement program to correct violations of municipal codes and land use requirements. A quarterly report on code enforcement activities is kept on file at the City. 1.1.2 Participate with the Orange County On -going Housing Authority and Housing and Community Development Division in The City staff attends their administration of rehabilitation OCHA's City's Advisory loans and grants for low- and Committee meetings to keep moderate - income homeowners and up to date on rehabilitation rental property owners to encourage programs offered by the preservation of existing City housing County. stock. 1.1.3 Require replacement of housing On -going demolished within the Coastal Zone when housing is or has been occupied Chapter 20.86 of the Zoning by very -low, low -, and moderate- Code, "Low and Moderate income households within the Income Housing within the preceding 12 months. The City shall Coastal Zone," establishes prohibit demolition unless a Coastal the standards and Residential Development Permit has requirements to implement been issued. The specific provisions this program. implementing replacement unit requirements are contained in the Municipal Code. 2.1.1 PA WA 2.1.3 Maintain rental opportunities by restricting conversions of rental units to condominiums unless the vacancy rate in Newport Beach for rental housing is an average 5 percent or higher for four (4) consecutive quarters, and unless the property owner complies with condominium conversion regulations contained in Chapter 20.83 of the Newport Beach Municipal Code. Take all feasible actions, through use of development agreements, expedited development review, and expedited processing of grading, building and other development permits, to ensure expedient construction and occupancy for projects approved with low- and moderate - income housing requirements. Participate with the County of Orange in the issuance of tax - exempt mortgage revenue bonds to facilitate and assist in financing, development and construction of housing affordable to low and moderate - income households. On -going A vacancy rate survey is completed every quarter to monitor consistency with this policy. On -going Planning staff continually evaluates all proposed affordable housing projects for potential incentives, including expedient processing of permits. During the entitlement process, the Bayview Landing Senior Affordable Housing Project was granted a partial entitlement fee waiver, expedited permit processing, and entitlement assistance. On -Going The issuance of tax - exempt mortgage revenue bonds is project driven. The developer typically applies for the bonds. The City will encourage the use of such bonds and inform affordable housing developers of their availability. 2.1.4 1 Conduct an annual compliance- I On -Going 2.2. monitoring program for units required to be occupied by very low -, low -, and moderate- income households. Require a proportion of affordable housing in new residential developments or levy an in -lieu fee. The City's goal over the five -year planning period is for an average of 15 percent of all new housing units to be affordable to very low -, low -, and moderate - income households. The City shall either (a) require the payment of an in -lieu fee, or (b) require the preparation of an Affordable Housing Implementation Plan (AHIP) that specifies how the development will meet the City's affordable housing goal, depending on the following criteria for project size: 1. Projects of 50 or fewer units shall have the option of preparing an AHIP or paying the in -lieu fee. 2. Projects where more than 50 units are proposed shall be required to prepare an AHIP. Implementation of this program will occur in conjunction with City approval of any residential discretionary permits or Tentative Tract Maps. To insure compliance with the 15 percent affordability requirements, the City will include conditions in the approval of discretionary permits and Tentative Tract Maps to require ongoing monitoring of those projects. (Imp 2.1) The City retains a consulting firm that provides an annual compliance monitoring report for the City's income qualified units. Staff continues to enforce the requirements for affordable housing and /or the payment of in -lieu fees. In addition, the City has hired a consulting firm that is in the process of determining an appropriate in- lieu fee. The City is also in the process of drafting an affordable housing ordinance that will implement the requirements of Program 2.2.1. 2.2.2 1 The City shall provide more assistance for projects that provide a higher number of affordable units or a greater level of affordability. At least 15 percent of units shall be affordable when assistance is provided from Community Development Block Grant funds or the City's in -lieu housing fund. 2.2.3 For new developments proposed in the Coastal Zone areas of the City, the City shall follow Government Code Section 65590 and Title 20. 2.2.4 All required affordable units shall have restrictions to maintain their affordability for a minimum of 30 years. The City will provide financial assistance based on a project by project analysis, depending on need and overall project merits. The City continues to participate in this Housing Program. The Bayview Landing Senior Affordable housing project received $1 million dollars from the City's "in- lieu" housing fund reserves. On -going Staff continues to implement the provisions of Chapter 20.86 of the Zoning Code (Low and Moderate Income Housing within the Coastal Zone). On -going Staff continues to include this affordability restriction as a standard condition on all affordable housing projects, unless an otherwise longer affordability covenant is agreed upon. A comprehensive affordable housing ordinance is currently being developed which will clearly specify all conditions for incentives, including the minimum affordability period of 30 years. Advise existing landowners and On -going prospective developers of affordable housing development opportunities City staff continues to provide available within the Banning Ranch, prospective developers with Airport Area, Newport Center, information on the City's Mariners' Mile, West Newport available land and its Highway, and Balboa Peninsula incentive program. areas. Development of a plan outlining incentives that implement General Plan goals is also part of the City's General Plan Implementation Program (Imp 24.1) Periodically contact known local On -going developers and landowners to solicit new affordable housing construction. The City Manager's Office and Community and Economic Development periodically discuss the construction of new affordable housing with local developers and landowners. City staff also introduces the idea of constructing affordable housing to developers who propose large residential projects and discuss density bonuses to assist in the construction of affordable housing. 2.2.7 Participate in other housing On -going assistance programs that assist production of housing. City staff attends OCHA Cities Advisory Committee meetings to keep up -to -date with programs that assist in the production of housing. Staff will inform developers of programs that are available to assist in the production of housing for all income levels. 2.2.8 2.3.1 New developments which provide housing for lower income households that help meet regional needs shall have priority for the provision of available and future resources or services, including water and sewer supply and services. Study housing impacts of proposed major commercial /industrial projects during the development review process. Prior to project approval, a housing impact assessment shall be developed by the City with the active involvement of the developer. Such assessment shall indicate the magnitude of jobs to be created by the project, where housing opportunities are expected to be available, and what measures (public and private) are requisite, if any, to ensure an adequate supply of housing for the projected labor force of the project and for any restrictions on development due to the "Charter Section 423" initiative. Effective January 1, 2006, local governments are required provide a copy of the Housing Element to water and sewer service providers. The City has done this. Pursuant to state law, water and sewer providers must grant priority to developments that include housing units affordable to lower income households. Staff is monitoring legal challenges to inclusionary housing requirements, and will research the idea of developing housing impact fees for all new commercial and industrial developments as an additional or alternative resource for providing affordable housing. Staff will monitor all new planning applications for applicability. 3.1.1 3.1.2 3. Provide a streamlined "fast- track" development review process for proposed affordable housing developments. When a residential deve agrees to construct housing for persons and families of very low, low and moderate income above mandated requirements, the City shall either (1) grant a density bonus as required by state law, or (2) provide other incentives of equivalent financial value. On -going The City considers "fast track' development review incentives on a project -by- project basis. The City's General Plan Implementation Program encourages code amendments and the development of incentives that achieve General Plan goals. (Imp 2.1, Imp 24.1) On -going The City considers density bonuses and other incentives on a project by project basis. Review and consider in accordance On -going with state law. the waiver of planning and park fees, and modification of development standards, (e.g., setbacks, lot coverage, etc.) at the discretion of City Council and Planning Commission for developments containing very low, low- and moderate - income housing in proportion to the number of low- and moderate - income units in each entire project. Waivers and incentives are considered by the Planning Commission and City Council on a project -by- project basis. The City's General Plan Implementation Program encourages code amendments and the development of incentives that achieve General Plan goals. (Imp 2.1, Imp 24.1) 3.2. Identify the following sites as adequate, which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage development of a variety of housing types to meet City housing goals as identified pursuant to Government Code Section 65583(b): Banning Ranch, Airport Area, Newport Center, Mariners' Mile, and the Balboa Peninsula areas. 3.2.2 Update Zoning Code to reflect housing opportunities provided in the Land Use Element. 3.2.3 When requested by property owners, the City shall approve rezoning of developed or vacant property from non - residential to residential uses when appropriate. These rezoned properties shall be added to the list of sites for residential development. Pending As part of the Housing Element certification process, the City is working with HCD to complete an adequate sites analysis. The analysis will ensure that sites are available to help achieve City housing goals. Pending The City is in the process of updating its zoning code to reflect new housing opportunities created by the General Plan Update. The City continually monitors requests for zone changes of vacant and developed properties from non - residential to residential and approves when determined to be compatible and feasible. When approved, these sites are mapped for residential uses on both the zoning district map and General Plan GOAL H4__ PROGRAM GOAL` 4.1.1 Periodically contact owners of On -going affordable units for those developments listed in Table H12 to Staff is currently updating obtain information regarding their the contact list for affordable plans for continuing affordability on units. A survey maybe their properties. developed and sent out annually to each contact. 4.1.2 Consult with the property owners Pending regarding utilizing CDBG funds and in- lieu housing funds to maintain Will be discussed during the affordable housing opportunities in AHTF meetings in those developments listed in conjunction with Program Table H12. 2.2.7. 4.1.3 Prepare written communication for On -going tenants and other interested parties about Orange County Housing Information pamphlets Authority Section 8 opportunities to informing prospective assist tenants and prospective tenants tenants and landlords about to acquire additional understanding of the OCHA Section 8 housing law and related policy issues. program have been made available in the public lobby. In addition, information about the Section 8 program has been posted on the City website. 4.1.4 Investigate availability of federal, Pending state, and local programs (including in -lieu funds) and pursue these The City will investigate programs if found feasible, for the available programs and preservation of existing low- income evaluate the feasibility of housing, especially for preservation of participating in such low- income housing that may increase programs. to market rates during the next ten years. A list of these programs, including sources and funding amounts, will be identified as part of this program and maintained on an on -going basis. 4.2.1 Investigate the use of federal funds to Pending provide technical and financial assistance, if necessary, to all eligible The City will investigate homeowners and residential rental available programs and property owners to rehabilitate evaluate the feasibility of existing dwelling units through low- participating in such interest loans or potential loans, or programs. grants to very low —, low- and moderate- income, owner- occupants of residential properties to rehabilitate existing units. 4.2.2 In accordance with Government Code On -going Section 65863.7, require a relocation impact report as a prerequisite for the City staff requires special closure or conversion of an existing permits for all proposed mobile home park. conversions of mobile home parks. Consistent with state law, a detailed relocation impact report is a requirement for the permit. 4.23 Should need arise, consider using a Pending portion of its Community Development Block Grant funds for establishment Staff will prepare a study to and implementation of an emergency analyze whether or not a home repair program. Energy efficient need for this program exists. products shall be required whenever If it is determined that a appropriate. need exists, a program will be developed. 4.2.4 Participate as a member of the On -going Orange County Housing Authority Advisory Committee and work in City Staff regularly attends cooperation with the Orange County the quarterly meetings of the Housing Authority to provide Section 8 OCHA Cities Advisory Rental Housing Assistance to Committee. residents of the community. The City shall, in cooperation with the Housing In addition, staff continually Authority, recommend and request works in cooperation with use of modified fair market rent limits the County to provide to increase number of housing units Section 8 rental housing within the City that will be eligible to assistance to residents. participate in the program. The Newport Beach Planning Department Recently, the City worked shall prepare and implement a with the OCHA to help 5.1.1 Apply for United States Department of Urban Development Community Development Block Grant funds and allocate a portion of such funds to sub - recipients who provide shelter and other services for the homeless. On -going The Action Plan for Fiscal year 2006 -2007 has been approved and the City will provide funding to the following organizations to preserve the supply of emergency and transitional housing: Serving People In Need (SPIN), WISEPIace, and Mercy House. The following organization has been funded to assist homeless battered women and children: WISEPIace publicity program to educate and disseminate information encourage landlords within the City to regarding the upcoming rent their units to Section 8 Certificate opening of the Section 8 holders and to make very low- income waiting list. households aware of availability of the Section 8 Rental Housing Assistance A link to the Orange County Program. Housing Authority website has been placed on the City website to provide information on the Section 8 program. 4.2.5 Participate in a Joint Powers Authority Discontinued Indefinitely of Orange County jurisdictions for the purpose of financing and Due to potential legal administering a lease purchase conflicts, the lease program for first -time homebuyers. purchase program has been discontinued indefinitely. 5.1.1 Apply for United States Department of Urban Development Community Development Block Grant funds and allocate a portion of such funds to sub - recipients who provide shelter and other services for the homeless. On -going The Action Plan for Fiscal year 2006 -2007 has been approved and the City will provide funding to the following organizations to preserve the supply of emergency and transitional housing: Serving People In Need (SPIN), WISEPIace, and Mercy House. The following organization has been funded to assist homeless battered women and children: WISEPIace 5.1.2 Cooperate with the Orange County Pending Housing Authority to pursue establishment of a Senior /Disabled or The City will conduct an Limited Income Repair Loan and analysis of different Grant Program to underwrite all or programs and the financial part of the cost of necessary housing feasibility or participating in modifications and repairs. such programs. Cooperation with the Orange County Housing Authority will include continuing City of Newport Beach participation in the Orange County Continuum of Care and continuing to provide CDBG funding. (Imp 94.3) 5.13 Permit, where appropriate, On -going development of "granny" units in single - family areas of the City. Code Amendment No. 2003- 001 (PA2003 -054) was approved by City Council on May 13, 2003 to grant the Planning Director authority to approve use permits for accessory dwelling units. 5.1.4 Consistent with development On -going standards in residential and commercial areas, permit emergency Emergency shelters and shelters and transitional housing transitional housing are under group housing provisions in its monitored for compliance Zoning Code. with the development standards regulations contained in the Zoning Code. 5.1.5 Work with the City of Santa Ana to On -going provide recommendations for the allocation of HUD Housing On February 9, 2005, the Opportunities for Persons with AIDS City participated in the 2005 ( HOPWA) funds within Orange HOPWA Strategy Meeting County) hosted by the City of Santa Ana, to provide recommendations for the allocation of HOPWA funds for the 2005 program year. As the most populous city in Orange County, the City of Santa Ana receives HOPWA funding from HUD on behalf of the entire County. Authorized uses of these funds include: acquisition, rehabilitation, conversion, or lease of facilities to provide short -term shelter, new construction, project or tenant based rental assistance, short term rent and utility payments, and supportive services. Should the City wish to partner in the acquisition, development, or rehabilitation of affordable housing for persons with HIV /AIDS , the City may request funding at future HOPWA Strategy meetings. 5.1.6 Maintain a list of "Public and Private Pending Resources Available for Housing and Community Development Activities." City staff will work to develop and maintain a list of resources that are available for housing and community develo ment activities 6.1.1 Contract with an appropriate fair On -going housing service agency for the �. :. 7.1.1 provision of fair housing services for The City contracts with the Newport Beach residents. The City OC Fair Housing Authority will also work with the fair housing annually. service agency to assist with the funding to the Fair Housing periodic update of the Analysis of The Regional Fair Housing Impediments to Fair Housing Impediments Analysis was document required by HUD. The City completed in 2000. will continue to provide pamphlets education, landlord /tenant containing information related to fair Pamphlets containing housing at the Planning Department information of Fair Housing counter. and Dispute Resolution Services are available at the public counter. 6.1.2 Support fair housing opportunities by On -going using Community Development Block �. :. 7.1.1 Grant funds whenever necessary to For the 2006 -2007 Fiscal enact federal, state, and City fair Year, Newport Beach housing policies. allocated $13,362 in CDBG portion of the Annual Report funding to the Fair Housing discussing Housing Programs is to be Council of Orange County to distributed to the California assist the City in furthering Department of Housing and fair housing through Community Development in education, landlord /tenant accordance with California State Law. counseling, and legal action VWW �. :. 7.1.1 As part of its annual General Plan On -going Review, the City shall report on the status of all housing programs. The Consistent with State portion of the Annual Report Housing Element Law, the discussing Housing Programs is to be City prepares an Annual distributed to the California Housing Element Progress Department of Housing and Report for submission to Community Development in HCD. accordance with California State Law. C. MITIGATING GOVERNMENTAL CONSTRAINTS As part of the City's 2006 General Plan Update, an implementation program was created to identify a principal set of actions and procedures necessary to cant' out the goals and policies of the General Plan. The plan contains a number of implementation programs aimed at facilitating the production of a variety of housing types for all income levels. These programs focus on the removal of barriers to the production of housing and include code changes to facilitate the development of affordable housing, development of an affordable housing ordinance, fee waivers and expedited processing for affordable housing projects, and other incentives that promote housing development. A significant part of the recent General Plan update focused identifying areas of the City where additional housing could be located in order to accommodate the City's fair share of regional population growth. As a result of the General Plan Update, opportunities for residential development were created in a number of the City including Newport Center and the Airport Area. The City is in the process of updating its zoning code to reflect these changes in the General Plan. Rezoning of these areas will facilitate the infusion of new housing into these areas, consistent with the goals of the General Plan Update.