HomeMy WebLinkAbout07-11-2017 Item 01 Housing Law and Policy Forum
Meeting Date: 07/11/2017
FROM: Christine Dietrick, City Attorney
Michael Codron, Community Development Director
Prepared By: Jenny Wiseman, Acting Housing Programs Manager
Jon Ansolabehere, Assistant City Attorney
SUBJECT: HOUSING LAW AND POLICY FORUM OVERVIEW
The City Council invites the community to participate in the Housing Law and Policy Forum
(“Forum”) on Tuesday, July 11, 2017 at 6:00 p.m. at the Ludwick Community Center. The
Forum will cover a wide range of housing issues including an overview of existing and
upcoming State housing legislation, facts about the State/local housing crisis, density bonus law,
and housing policy in the City.
Council Members will intermix with community members and will have the opportunity to have
group discussions on the topics discussed. During the presentation, staff will break for table
discussion focused around three main questions:
1. How is the housing crisis affecting you?
2. Are the State laws discussed appropriate under the circumstances, or do they take away
too much local control?
3. What are some solutions or ideas to address the need for affordable housing in San Luis
Obispo?
A special presentation by Dave Mullinax from the League of California Cities will focus on the
State’s current housing approach, the status of the Governor’s by-right housing proposals, and
relevant updates from Sacramento regarding future housing legislation.
The evening will conclude with a brief public testimony period for any final comments. The
Forum is planned to conclude by 8:00 p.m.
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE
a – Not Just Density Bonuses: Dealing with Demand Beyond the Bonus
b - California's Housing Future: Challenges and Opportunities
c - 2017 City Affordable Housing Standards
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Housing Policy & Law ForumJuly 11, 2017
Tonight’s Theme –State v. Local Control in Housing
Agenda1.How is the housing crisis affecting you?2.Are the State laws appropriate? Or do they hinder local control?3.What are some solutions or ideas to address the need for housing?
Local Housing CrisisMyth or Reality?County of San Luis ObispoAve. Sales Price: $530,000What you get:City of San Luis ObispoAve. Sales Price: $660,700What you get: 3 beds 2 baths 1,025 sqft; $649,8004 beds 3 baths 2,382 sqft; $529,900
Local Housing CrisisMyth or Reality?SLO CountyCity of SLO
Local Housing CrisisMyth or Reality?By Cal Poly
Local Housing CrisisMyth or Reality?
Local Housing CrisisMyth or Reality?Lending and Affordability:Price of Median House:$660,235Down Payment @ 15%: $99,035Mortgage ($561,200* @ 4.5% for 30 years)*SLO County FHA Mortgage Limit$3,709.16Min. Qualifying Income:$155,383SLO Median Family Income (3 person)$74,900SLO Median Family Income (4 person)$83,200
Local Housing CrisisMyth or Reality?The Cost of Too little HousingThe Myth of No Change
GROUP DISCUSSION (5-10 Mins)How is the housing crisis affecting you?After discussion, opportunity for select tables to present out to all participants.
Current Housing Legislation
State Housing Laws Police PowerLegal source of tension between State and Cities
True or Fake? -State Housing PolicyNew development shall be compatible with existing communities and should not unnecessarily burden or negatively impact established single family neighborhoods.
True or Fake?- State Housing PolicyThe excessive cost of the state’s housing supply is partiallycaused by activities and policies of many local governmentsthat limit the approval of housing, increase the cost of land forhousing, and require that high fees and exactions be paid byproducers of housing.
True or Fake? “The reason that everybody likes planning is that nobody has to do anything.” – Gov. Jerry Brown
True or Fake?“We've got to bring down the cost structure of housing and not just find ways to subsidize it…What we can do is cut the red tape, cut the delays, cut whatever expenses we can afford to do without to make housing more affordable and therefore increase the stock and therefore hopefully bring down the costs.”- Gov. Jerry Brown
Density Bonus LawGov. Code 659151. Mandatesthat local agencies grant a density bonus if a developer is providing a certain percentage of affordable housing;2. Requiresagencies to relax development standards to allow for the physical construction of the additional density units; and3. Requireslocal agencies to grant incentives or concessions;…unless the there is a “specific adverse impact.”We will get into this!
Density Bonus LawGov. Code § 65915Ex. 50 Units/6 restricted at very low = 35% bonus = 17.5 additional density units7/11/2017 Staff Presentation
Density Bonus LawGov. Code 65915***
Density Bonus LawGov. Code 65915- Flexible development standards“Innocase may a city, county, or city and countyapply any development standard that will have theeffect of physically precluding the construction ofa development meeting the criteria of subdivision(b) at the densities or with the concessions orincentives permitted by this section…”-Height limits, setbacks, floor-to-area ratios…
Density Bonus LawGov. Code 65915- Incentives and concessions“An applicant for a density bonus pursuant to subdivision (b) maysubmit to a city, county, or city andcounty a proposal for the specificincentives or concessions that the applicant requests pursuant to thissection, and may request a meeting with the city, county, or city andcounty”The applicantshall receivethe following number of incentives orconcessions:No. of Incentives/Concessions % Very low % Low % moderate1 5% 10% 10%*2 10% 20% 20%*3 15% 30% 30%** Located in a common interest development
Density Bonus LawGov. Code 65915- Incentives and concessions“Concession or incentive”means any of the following:(1) A reduction in site development standards or amodification of zoning code requirements.(2) Approval of mixed-use zoning in conjunction with thehousing project.(3) Other regulatory incentives or concessions proposedby the developer …that result in identifiable and actualcost reductions to provide for affordable housing costs.
Density Bonus LawGov. Code 65915Denial of waivers and incentives and concessionsMust prove a specific, adverse impact which means:“…a significant,quantifiable,direct, and unavoidableimpact, based onobjective, identified written publichealth or safety standards, policies, or conditions asthey existed on the date the application was deemedcomplete.”
Density Bonus LawGov. Code 65915Can we requiremore? No. Latinos Unidos Del Valle De Napa y Solano v. County of Napa(App. 1 Dist.2013) 217 Cal.App.4th 1160Can we incentivize more? Yes – through greater density bonuses. And we do!48% Bonus + 7.5 feet height allowance; 17% restricted to very low
Examples of Density Bonus in SLO860 On the Wye (860 Humbert)20 Affordable Units for VeteransOpened June 201780% Density Bonus100% affordableDel Rio Terrace40 affordable senior/disabled housing unitsApproved in 200383% Density Bonus100% affordable
Wollmer v. The City of Berkeley, 193 Cal.App. 4th1329 (2011)Argument:Height concessions and development standard waivers were not necessary toaccommodate the density units themselves, but to allow for amenities.-Court:“Wollmer's argument goes nowhere. Had the City failed to grant the waiverand variances, such action would have had“the effect of physically precluding theconstruction of a development”;Argument:The concessions and developmentstandard waivers rendered CEQA’s infillexemption invalid.-Court:“..waived zoning standards are not ‘applicable’ and that the requirements of[CEQA] Guidelines section 15332, subdivision (a) were met.”
Housing Accountability ActGov. Code § 65589.5What applies? Housing Development Projects
Housing Accountability ActGov. Code § 65589.51. HAA protections for certain affordable housing projects:(d) A local agency shall not disapprove a housing development project,… for very low, low-, or moderate-income households,… or condition approval in a manner that renders the project infeasible for development for the use of very low, low-, or moderate-income households,…including through the use of design review standards, unless it makes written findings, based upon substantial evidence in the record, as to one of the following:***(2) The development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible…. 2. HAA protections for ALL housing development projects:(j) When a proposed housing development project complies with applicable, objective general plan and zoningstandards and criteria, including design review standards, in effect at the time that the housing development project’sapplication is determined to be complete,but the local agency proposes to disapprove the project or toapprove it upon the condition that the project be developed at a lower density, the local agency shall base itsdecision regarding the proposed housing development project upon written findings supported by substantialevidence on the record that both of the following conditions exist:(1) The housing development projectwould have a specific, adverse impact upon the public health or safetyunless the project is disapproved or approved upon the condition that the project be developed at a lowerdensity…(2) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraphother than the disapproval of the housing development project or the approval of the project upon the condition that itbe developed at a lower density.Can’t deny, reduce density, or overly condition a project unless the agency can identify a “specific adverse impact.”
“Specific, Adverse Impact” Must prove a specific, adverse impact which means:“…a significant,quantifiable,direct, and unavoidableimpact, based onobjective, identified written publichealth or safety standards, policies, or conditions asthey existed on the date the application was deemedcomplete.”
What does this all mean? We comply with this State policy:(b) It is the policy of the state that a local governmentnot reject or make infeasible housing developments,including emergency shelters, that contribute to meetingthe need determined pursuant to this article without athorough analysis of the economic, social, andenvironmental effects of the actionand withoutcomplying with subdivision (d).
State Housing LawsPresented by: Dave MullinaxCalifornia League of Cities
Group Discussion (5-10 minutes)Are the State laws we discussed tonight appropriate, or do they take away too much local control?
How is the City approaching the current housing situation?How is the City approaching this housing crisis and what are our values towards housing?Housing Major City GoalsGrowth Management RHNAAccessory Dwelling UnitsAffordable Housing
Land Use Element & Growth ManagementThe City’s LUE plans for smart growth to accommodate the need for housing. Accommodate 1% growth rate averaged over the Housing Element Planning Period.
How Many Units Does the City Need to Accommodate? The City’s 2014-19 Regional Housing Needs Allocation (RHNA) is 1,144dwelling units.
Recent Development History64% of residential development over past 10 years has been multi-family housing35% of those units deed restricted affordableIn 2016, 189 residential units were constructed54 affordable units, 29% of all units
Current Development Projects There are over 1,600 residential units in planning review, entitled, or currently under construction in the City.375 units have building permits or already under construction50 affordable units currently under constructionApproximately 2,200 more units proposed in new Specific Plan areas (i.e. San Luis Ranch, Avila Ranch, Righetti Ranch)www.slocity.org/doing-business/doing-business-in-slo/what-development-is-happening-in-the-city
Obstacles to Achieving Goals for Diverse Housing TypesCounty of San Luis ObispoAvg. Sales Price: $530,000City of San Luis ObispoAvg. Sales Cost: $660,000What factors influence the type of housing that is constructed in the City?Financing overheadConstruction CostsLand CostsBuilding Permits and FeesDesign CostsPublic improvements
How is the City helping to Address Affordability? Inclusionary Housing ProgramAffordable Housing FundDeed Restricted Affordable HousingEquity ShareLong Term Affordable HousingAffordable by design policiesOrcutt Area, Avila Ranch, San Luis Ranch lot sizes and average units sizes are all smaller than in other neighborhoods in the City
What is Affordable Housing?Units deed restricted as affordable to extremely-low, very-low, low, or moderate income households.Tenants or homebuyers must be income certified through Housing Authority of San Luis Obispo or other qualified non-profit. Rental units restricted for 55 years, for-sale units restricted for 45 years (unless under Equity Share Program)
San Luis Obispo Income Limits
City Inclusionary Housing Policy
Upcoming Changes: Major City Goal2017-19 Housing Major City Goal Implement key Housing Element programs to increase production of housing affordable to a range of income levels;Create and define a new “workforce” affordability level;Produce a new Affordable Housing Nexus Study;Update the City zoning regulations and any other applicable regulations to increase density and facilitate opportunities for new housing (in progress);Continue to promote streamlined residential development review, particularly for developments located within Special Focus Areas.
Accessory Dwelling UnitsCity recently updated our ADU code to comply with new state laws.Reduce burden of ADU development to create more, lower cost housing optionsPromote using existing space for housingRemoval of additional parking requirement, increased size allowance, fee/utility connections only applicable in certain scenarios. Since January 1, City received 77 ADU applications with permit costs averaging $6,000.
Upcoming Changes to Affordable HousingFurther review into Tiny Homes in Zoning Regulations UpdateSubdivision Regulation Small lots, tiny homes, etc.
Final Group QuestionWhat are some solutions or ideas you have to address the need for housing in San Luis Obispo?
Public Comment Opportunity Thank you!
Local Housing CrisisProject Costs by Unit Type – Courtesy of Steve Peck $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000R-1 R-2 R-3 R-4Financing, OverheadDirect ConstructionBuilding Permits and FeesInterest Carry on Land DevelopmentDesign and PermittingOffsitesBackboneIntractsLand