HomeMy WebLinkAbout04-02-2019 Item 12 - Housing Update
Department Name: Community Development
Cost Center: 40400
For Agenda of: April 2, 2019
Placement: Study Session
Estimated Time: 90 Minutes
FROM: Michael Codron, Community Development Director
Prepared By: Xzandrea Fowler, Community Development Deputy Director
Tyler Corey, Principal Planner
SUBJECT: STUDY SESSION: HOUSING UPDATE
RECOMMENDATION
Receive an update on the City’s housing programs and confirm next steps for specific program
areas.
REPORT-IN-BRIEF
The following report provides detailed information regarding the City’s housing programs,
including a status report on the Housing Major City Goal for FY 2017-19 and 2019-21, State
housing law, Housing Element and required update, housing production and housing
affordability.
DISCUSSION
Housing Program Overview
The City’s first Inclusionary Housing Ordinance was adopted in 1999 and since that time the
City has made great strides in ensuring that a percentage of all new housing units are affordable
to income eligible households. In fact, since 2000, over 23% of all units constructed in the City
have been affordable (i.e. deed restricted for very low, low, or moderate-income households).
The inclusionary housing requirement is met by either building the required number of deed-
restricted housing units, or by paying an in-lieu fee. The City uses those in-lieu fees to work with
affordable housing developers to deliver new affordable housing projects within the City.
Without an inclusionary housing ordinance, with the exception of State Density Bonus, there
would be no way for the City to guarantee the affordability of housing produced in the city
because the housing market is influenced by a wide variety of external and internal factors that
continue to make San Luis Obispo one of the least affordable locations in the Country based on
the ability of the median income worker to afford a median priced home.
Even as the City has made strides with its inclusionary housing program, the overall housing
crisis has worsened both locally and statewide due to a variety factors and largely attributed to
external market forces outside of the City’s control. To address this, the State of California
through its Department of Housing and Community Development (HCD) has progressively
strengthened its requirements and increased its enforcement mechanisms and capabilities to
ensure compliance with State housing law.
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The City of San Luis Obispo produced its first Housing Element to receive certification by HCD
in 2004. The City has maintained a certified Housing Element since that time, which has made it
eligible for grant funding, including over $1 million in grants that were used for its Land Use and
Circulation Element Updates. In addition, the City was eligible to participate in HCD’s BEGIN
program, which provided first-time homebuyers with down payment assistance for 10 units in
the Tumbling Waters Townhomes project off Sacramento Drive. Going forward, California
voters approved two housing-related bond measures that will result in significant funding for
affordable housing that the City will only be eligible for if it maintains a certified Housing
Element. The next Housing Element update must be completed and submitted by December 31,
2020 which in terms of timing requires a focused effort to essentially produce a draft for
Planning Commission review in Spring 2020.
Major City Goal Status Report
In recognition of the seriousness of the current housing crisis and the need for the City to focus
on housing production, Housing was identified as a Major City Goal for the 2015-17 and 2017-
19 Financial Plans, as well as the 2019-21 Financial Plan. Staff is in the process of developing
the work program for the next two years, which will focus largely on the completion of an
updated Housing Element.
The City’s 2017-19 Housing Major City Goal states, “Facilitate increased production of all
housing types designed to be economically accessible to the area workforce and low and very
low-income residents, through increased density and proximity to transportation corridors in
alignment with the Climate Action Plan.” This goal includes an action plan to implement policies
and programs from the Land Use Element (LUE), Housing Element (HE), Circulation Element
(CE), and Climate Action Plan (CAP). The following tasks were completed in the two-year time
frame:
• An update of the City’s Zoning Regulations which includes new incentives to encourage
additional housing in the Downtown Core, and alternatives to calculating residential densities
to encourage development of smaller efficiency units.
• Scaling of development impact fees for residential development based on unit size and type.
• Identification and inventory of properties located in multi-family zones to evaluate if lot
patterns affect the City’s ability to meet housing production policies.
On February 4, 2019, Council adopted Housing as a Major City Goal for the 2019-21 Financial
Plan. The adopted goal language states, “Facilitate the production of housing with an update of
the Housing Element, including an emphasis on affordable housing (including unhoused people)
and workforce housing through the lens of climate action and regionalism.” Staff is currently
working on developing a work scope and action plan to implement this goal statement. Some of
the items that may be considered by Council as part of this work program at its Strategic Budget
Direction meeting of April 16th include:
1. Complete an Affordable Housing Nexus Study
2. Complete an update to the Housing Element
3. Begin an update to the Safety Element
4. Launch Above Moderate Income and “Missing Middle” housing programs
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5. Continue the Affordable Housing Monitoring Program
6. Complete an update of the Subdivision Regulations
7. Implement the housing production goals, policies, and programs in the Housing Element
8. Prioritize grant funding for housing production for extremely-low to moderate income
households
9. Continue to support and promote the development of additional on-campus housing
10. Continue to support Public/Private/Non-Profit partnerships to increase local housing
opportunities for the local workforce
11. Initiate research on updating the Zoning Regulations to include flexible density options in the
Downtown/Upper Monterey Special Focus Area to support the production of smaller units.
Next Steps: Staff will draft and Council will review and approve the work plan for the 2019-21
Financial Plan Housing Major City Goal (Spring 2019).
State Housing Law
The City has established housing policies in accordance with the General Plan and to comply
with California laws that were established, and recently strengthened, to ensure the production of
sufficient housing to support local, regional and state growth projections. Some of these laws
limit the ability of cities to deny or reduce the scale of housing projects. The City has carefully
planned to accommodate housing within its Urban Reserve Line (URL) to prevent sprawl, ensure
adequate water supplies for projected growth, meet the housing needs of households at various
income levels, achieve environmental and climate objectives and balance land uses to achieve
fiscal health.
Key housing legislation affecting the City is highlighted below.
SB 1069 - Accessory Dwelling Units (ADUs)
The California legislature found and declared that, among other things, allowing accessory
dwelling units (ADUs) in single family and multifamily zones provides additional rental housing
and are an essential component in addressing housing needs in California. SB 1069 addressed
barriers to the development of ADUs and expanded capacity for their development. Provisions
that went into effect on January 1, 2017 include the following: Reducing parking requirements,
eliminating utility connection fees, fire sprinkler requirements, ministerial application approvals,
and prohibits any exclusion ordinance of them. The City of San Luis Obispo updated its permit
requirements for ADU’s to comply with State law (see Table 1 below). The City published an
ADU brochure (Attachment A) to assist the community understand key permit requirements of
the ordinance.
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Table 1: ADU Standards, Regulations and Fees
Standards,
Regulations and Fees1 Previous ADU Updated ADU
Maximum size 450 s.f.
800 s.f. or 50 % of the existing
SFR2 (whichever is smaller).
With Director approval up to
1,200 s.f. or more than 50% of
SFR.
Allowed Zone R-1, R-2, R-3, R-4, O (where
primary use is an SFR)
R-1, R-2, R-3, R-4, O (where
primary use is an SFR)
Fees Reduced Impact Fees Eliminated City Impact Fees
Ownership ADU or the primary residence
must be owner occupied.
ADU or the primary residence
must be owner occupied.
Parking 1 space No parking required
Lot size Not allowed on non-
conforming lots Allowed on non-conforming lots
Entitlements
Discretionary - Architectural
Review, and Building Permit
Submittal
Ministerial - Building Permit
Submittal only
1. All ADUs must comply with the local Building Code and Zoning Regulations.
2. SFR: Single Family Residence
Housing Accountability Act
In 2017, Governor Brown signed into law two bills – SB 167 and AB 678 – that significantly
reform California’s Housing Accountability Act (HAA or Act), Cal. Gov. Code §65589.5. These
reforms make it illegal for the City to deny qualifying housing projects (any housing
development project, whether market-rate or affordable, that complies with all applicable
objective general plan, zoning, and subdivision standards and criteria, including design review
standards) or make changes that reduce the number of units being proposed unless findings are
adopted based on objective standards that the project would have health and safety impacts if
developed as proposed. Read more (https://www.hklaw.com/publications/california-governor-
signs-into-law-major-reforms-to-housing-accountability-act)
SB 35 – Streamline Approval Process
In 2017, Governor Brown signed SB 35, a new law that created a streamlined approval process
for developments in cities/counties that have not yet met their housing targets, provided that the
development is on an infill site and complies with existing residential and mixed-use zoning.
Participating developments must provide at least 10 percent of units for lower-income families.
All projects over 10 units must be prevailing wage and larger projects must provide skilled and
trained labor. San Luis Obispo is subject to SB 35 and certain affordable housing projects that
comply with this law must be processed by the City as ministerial permits, which means the City
will only have the discretion to implement objective standards and qualifying projects would not
be subject to discretionary review in public hearings. Read more
(https://www.cacities.org/Top/News/News-Articles/2018/February/SB-35-Determinations-
Issued;-What-s-Next-for-Citie?
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Next Steps: Staff will continue to monitor and report out on State housing laws that affect local
policy and regulations to ensure ongoing compliance, consistent with the City’s legislative
platform. A list of pending bills submitted for the 2019 legislative cycle will be presented at the
Council meeting and available at the housing workshop preceding the Council Study Session.
Housing Element
The Housing Element is an element of the City’s General Plan and is the only element that must
be updated on a set schedule and then certified by the State. The City does not construct housing
but is required by the State to plan to demonstrate that it can accommodate a specific number of
units that meet specific income categories within a specific timeframe – our Regional Housing
Needs Allocation (RHNA). The City is starting a new Housing Element update, which is due for
completion by December 2020. The update process is a tool to modify housing policies and
programs to reflect the changing needs, resources and conditions in the community, and to
respond to changes in state and federal housing law.
Regional Housing Needs Allocation (RHNA) – 5th Cycle, 2014-2019
The RHNA is produced by HCD and identifies the projected housing needs in the region as part
of the periodic updating of local housing elements of the General Plan. The San Luis Obispo
Council of Governments (SLOCOG) is responsible for working with the State mandated RHNA
and distributing the allocation between the cities and the unincorporated county. For the current
housing element cycle (5th Cycle), the City was assigned 1,144 units (28% of 4,090 for the
County as a whole) for the planning period from January 1, 2014 through June 30, 2019. The
City must demonstrate that it can accommodate its RHNA through a variety of programs in
addition to having appropriate land use and zoning capacity.
The graphics below shows the 5th Cycle RHNA distribution for each jurisdiction on the left, and
the City’s RHNA by income category on the right for new housing construction. Table 2 below
indicates the City’s current progress towards meeting RHNA targets. Specifically, as of
December 31, 2018, the City met all of the capacity and program requirements in the certified
2014-2019 Housing Element and 58% of the RHNA has been achieved in the Extremely Low &
Very Low Category; 17% complete in the Low Category; 6% complete for Moderate; and 168%
complete for Above Moderate (aka market-rate) units, which is a factor of market conditions
outside the City’s control. Progress towards meeting RHNA targets is tracked by HCD for all
local jurisdictions, and can be viewed publicly on their website here.
(http://www.hcd.ca.gov/community-development/housing-element/index.shtml)
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Table 2: RHNA Progress
SB 375
During the 5th Cycle, to strengthen the connection between housing and transportation planning,
SB 375 made changes to better align the schedules for RHNA and local-government housing-
element updates with schedules for adopting Regional Transportation Plans (RTPs). This
allowed local governments entering their 6th Cycle (2020-2028) to change their housing element
update schedule from a 5-year housing element planning period to an 8-year planning period.
SLOCOG elected to update its RTP every four years, which automatically changed the housing
element planning period for this region to 8-years (December 31, 2020 to December 31, 2028)
for the 6th Cycle. The County and all seven cities entered their 6th Cycle on December 31, 2018
for a 10-year production period that ends on December 31, 2028. The 6th Cycle housing element
update is due to HCD on December 31, 2020 but must be adopted by the City at least 120 days
prior to the due date.
Regional Housing Needs Allocation (RHNA) – 6th Cycle, 2020-2028
HCD finalized its RHNA allocation determination for the San Luis Obispo region at 10,810 units
for the 10-year production period (December 31, 2018 to December 31, 2028), and the SLOCOG
Board voted unanimously to accept the distribution allocation projection. SLOCOG hosted
several meetings with working groups to develop and review materials and distribution scenarios
over the course of several months in Fall 2018. Based on the feedback and recommendations
from the SLOCOG Board, Citizens’ Transportation Advisory Committee, Technical
Transportation Advisory Committee, a RHNA Working Team, and the RTP Stakeholder Group,
a distribution methodology was chosen that allocated housing units to jurisdictions largely based
on employment centers.
As the City is in close proximity to several large employers in the County, the number of housing
units allocated to San Luis Obispo has been identified as 3,354. It appears that the City can
accommodate this allocation based on existing land use capacity (largely created through the
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2014 LUCE Update) but will be further analyzed in the update of the Housing Element.
Climate Action Plan Relation to Housing Element Update
The housing element is a critical tool in implementing policies and programs that lower
greenhouse gas (GHG) emissions and promoting sustainable development. The location and
types of housing affect resource conservation and the City’s ability to adapt and be resilient to
climate change. The housing element must inventory and analyze the opportunities for energy
conservation in residential development such as energy saving features, energy saving materials,
and energy efficient systems and designs for residential development. Maximizing energy
efficiency in the City’s housing stock will contribute to the City’s GHG emissions reduction
target.
Development patterns influence GHG emissions. Locating housing near services, transportation
options, and jobs increases the effectiveness of multi-modal transportation systems. When
affordable housing is not available near jobs, people may have to commute long distances,
generating high rates of vehicle miles traveled (VMT) and GHG emissions. The collaboration
between the City’s Climate Action Plan (CAP) update and the housing element update will
ensure identification of sites and programs that direct growth in areas that promote efficient
development patterns and transit use, including alternative modes of transportation such as
biking or walking.
The City’s CAP update is currently underway and is scheduled for completion in Fall 2019. All
GHG emissions reduction strategies identified in the CAP, that are directly or indirectly related
to housing production, will be incorporated into the housing element update and will inform the
safety element update.
Safety Element Relation to Housing Element Update
For jurisdictions that have an adopted local hazard mitigation plan1 (LHMP), the next update of
that plan triggers an update to the safety element of the general plan to address climate
adaptation and resiliency. If a jurisdiction does not have an LHMP, the safety element must be
reviewed and updated each time the housing element is updated, specifically for flood and fire
hazards. Jurisdictions that have an LHMP may choose to review and update their climate change
analysis in the LHMP concurrently or as preparation for the next LHMP update to create
consistency and efficiency in the review and update cycle for both general plans and LHMPSs.
The safety element must be updated no later than January 1, 2022.
Following the adoption of the CAP and the housing element update, the City will undertake the
safety element update to create consistency between policies and programs that are related to
housing production, climate adaptation and resiliency, and protection from hazards and
environmental vulnerabilities.
Next Steps: Public engagement is a critical component to updating the Housing Element. Staff
will be hosting various community engagement opportunities in the Summer and Fall of 2019 to
identify housing needs, issues and opportunities in the community to help inform the update.
1 The City has an adopted LHMP and is currently updating it as part of a regional effort to create a regional LHMP.
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Housing Production
The City has carefully planned for future growth. By planning to grow slowly, the City allows
for the gradual assimilation of new residents. There are currently 21,416 dwelling units in the
City. There is a projected buildout capacity of 4,346 additional housing units, which is planned
for under the City’s Land Use and Circulation Plans (LUCE) through the year 2035. Of the 4,346
dwelling unit capacity available to reach LUCE buildout, 3,129 remain to be built in specific
plan areas. An additional 1,217 units are available via infill development. By limiting growth to
specific plan areas and infill development, the City is preserving scenic corridors and open space.
The figure below displays the total residential units that have been constructed since 2000:
Next Steps: Housing production is the core focus of the 2019-21 Housing Major City Goal. Staff
will prioritize projects that include an affordable housing component. Council may see some of
these projects through the planning entitlement process or through appeal.
Housing Affordability
Standard metrics indicate that housing is affordable if a household can secure the appropriate
size living quarters for approximately 30 percent of the household income.
Subsidized Housing
There are several affordable housing programs in the City that provide subsidized housing (City
Inclusionary, Tax Credit, HUD, HASLO, etc.). Subsidized housing is government sponsored
economic assistance aimed towards alleviating housing costs and expenses for qualifying
households. Forms of subsidies can include direct housing subsidies, non-profit housing, public
housing and rent supplements. The City coordinates with the County, non-profit organizations,
and developers to increase the production of subsidized housing.
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Inclusionary Housing
Adopted in 1999, the Inclusionary Housing Program implemented two core housing programs of
the General Plan – that of providing affordable housing for extremely-low, very-low, low, and
moderate-income households, and establishing a housing trust fund. The Program requires that
most new development projects help meet affordable housing needs by: 1) building affordable
dwellings as part of a development project, 2) dedicating real property, improved or not, for
development of affordable housing by the City’s Housing Authority or by a non-profit housing
provider, 3) paying an in-lieu fee which is used to fund affordable housing throughout the City,
or 4) Use a combination of the above methods, to the approval of the Community Development
Director.
Since adoption, the Program has generated over 450 deed-restricted or otherwise secured
affordable dwellings, and approximately $10 Million in affordable housing funds from in-lieu
fees. The Affordable Housing Fund (AHF) has provided approximately $6.5 Million in direct
assistance and leveraged other grant and tax credit financing to various affordable housing
projects throughout the City.
Affordable Housing Incentives
The City uses a combination of regulatory and financial incentives to facilitate affordable
housing development. These include development review impact fee deferrals, grants and loans,
density bonuses, permit streamlining, flexible property development standards, and other
incentives. The City’s General Plan includes policies and standards that encourage housing
projects that incorporate deed restricted units affordable to very low, lower, and moderate-
income households.
Next Steps: Staff will develop a Scope of Work for the Inclusionary Housing Nexus Study,
including review of Housing Element Tables 2 & 2A, (Spring 2019).
Public Engagement
A public Housing Forum will be held just prior to this study session on April 2, 2019 at 990
Palm Street, in the Council Hearing Room from 4:30 pm to 5:30 pm. Information regarding State
housing law, Housing Element & RHNA, housing production, and the City’s Inclusionary
Housing program will be presented. Attendees will also have the ability to interact with planning
staff, as well as submit housing issues and ideas that will help inform our next Housing Element
update.
ENVIRONMENTAL REVIEW
Since this item is informational in nature and involves no action by the City Council, the
California Environmental Quality Act (CEQA) does not apply to the recommended action
because it does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
There is no fiscal impact associated with this study session and no action is recommended.
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ALTERNATIVES
Continue consideration of the housing update presentation. Although no action is
recommended in association with this report, the City Council could ask staff to return during a
future meeting to present additional information. If the Council would like to hear additional
information at a future meeting, specific direction should be provided to staff.
Attachments:
a - ADU Pamphlet
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For full city guidelines please visit
www.slocity.org
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
(805)781-7170
Additional Requirements
accessorydwellingunits
•All ADUs must comply with the local Building
Code and Zoning Regulations.
•Either the ADU or the primary residence must be
owner occupied.
•Only one ADU per qualified property is allowed.
•Fire sprinklers not required if the existing single
family residence does not have fire sprinklers.
•Architectural style and form shall match or be
compatible with the style and form of the primary
residence on the property.
•The materials of the accessory dwelling unit
shall match or be compatible with the materials
of the primary residence on the property.
•ADUs constructed above a garage require a 5
foot setback from side and rear lot lines.
For questions please contact
the Community Development Department
at (805)781-7170
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Can I put an ADU on my property?
What size ADU can i build?
How do i apply for an ADU permit?
An application for construction of an ADU may be
applied for if it meets the following requirements:
•Zoned R-1, R-2, R-3, R-4, O
•Primary use on the site is a single family dwelling.
•No ADU shall be smaller than 220 square feet.
•The maximum size of an ADU shall not exceed
fifty percent (50%) of the primary unit`s existing
living area, or eight hundred (800) square feet,
whichever is less.
- i.e: A 1,000 square foot home cannot have an ADU
greater than 500 square feet.
•The Community Development Director may
authorize an exception by allowing an ADU to be
fifty percent (50%) of the primary unit`s existing
living area up to 1,200 square feet by a Director`s
Action.
- Please see the Community Development
Department for the application and fee.
What impact fees apply to the
development of an ADU?
What utilities connections are
required for my ADU?
City Impact Fees are not applied to ADUs. School
District Fees may still apply.
A new utility connection may be required for new
ADUs which result in the creation of new residential
square footage or accessory space, subject to review
by the Utilities Department.
If an ADU is constructed within the existing square
footage of the single family residence or existing
accessory space, no new utility connection is required.
What is an ADU?
An accessory dwelling unit (ADU) is an attached or
detached dwelling unit which provides complete
independent living facilities for one or more persons
and provides permanent provisions for living,
sleeping, eating, cooking, and sanitation on the same
parcel as the primary unit.
Do i need to provide additional
parking?
No new parking is required for new ADUs. However, if
any required parking is removed, replacement parking
spaces are required and may be located in any configu-
ration (i.e. covered spaces, uncovered spaces, tandem
spaces) on the same lot as the accessory dwelling unit.
Want to build an
ADU of
800 square feet
or less
Directors Action Required
Submit application to
Community Development
Department
Want to build an ADU
of
801-1200
square feet
Building Permit
Issued 120 days maximum review timeSubmit building permit
application to Community
Development Department
Submit building permit
application to Community
Development Department
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4/2/2019 Item 12, Staff Presentation
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STUDY SESSION: HOUSING UPDATE
April 2, 2019
Agenda
•Major City Goal Status Report
•State Housing Law
•Housing Element
•Housing Production
•Housing Affordability
•Public Engagement
•Next Steps
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4/2/2019 Item 12, Staff Presentation
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Major City Goal Status Report
•Housing was identified as a Major City Goal for the
2015-17, 2017-19 and 2019-21 Financial Plans.
•The following tasks were completed within the
2017-19 time frame:
•Update of the Zoning Regulations.
•Impact fees scaled to residential unit size and type.
•Identification and inventory of properties located in
multi-family zones.
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Major City Goal Status Report
•On February 4, 2019, Council adopted Housing as
a Major City Goal for the 2019-2021 Financial Plan.
•Staff is currently working a work program to
implement this goal.
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4/2/2019 Item 12, Staff Presentation
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Major City Goal: Draft Work Plan, 2019-2021
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•Complete an Affordable Housing Nexus
Study
•Complete an update to the Housing
Element
•Begin an update to the Safety Element
•Launch Above Moderate Income and
“Missing Middle” housing programs
•Continue the Affordable Housing
Monitoring Program
•Complete an update of the Subdivision
Regulations
•Implement the housing production goals,
policies, and programs in the Housing
Element
•Prioritize grant funding for housing
production for extremely-low to
moderate income households
•Continue to support and promote the
development of additional on-campus
housing
•Continue to support Public/Private/Non-
Profit partnerships to increase local
housing opportunities for the local
workforce
State Housing Law
•The City has established housing policies to comply
with California laws to ensure the production of
housing.
•Housing is accommodated within the Urban
Reserve Line.
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4/2/2019 Item 12, Staff Presentation
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State Housing Law
SB 1069 - Accessory Dwelling Units (ADUs)
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Standards,
Regulations and Fees Previous ADU Updated ADU
Maximum size 450 s.f.
800 s.f. or 50 % of the existing SFR
2 (whichever
is smaller). With Director approval up to 1,200
s.f. or more than 50% of SFR.
Allowed Zone R‐1, R‐2, R‐3, R‐4, O (where
primary use is an SFR)No change
Fees Reduced Eliminated
Ownership ADU or the primary residence
must be owner occupied.No change
Parking 1 space No parking required
Lot size Not allowed on non‐
conforming lots Allowed on non‐conforming lots
Entitlements
Discretionary ‐ Architectural
Review, and Building Permit
Submittal
Ministerial ‐ Building Permit Submittal only
State Housing Law
Housing Accountability Act
•SB 167
•AB 678
•Significantly reform California’s Housing
Accountability Act.
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4/2/2019 Item 12, Staff Presentation
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State Housing Law
SB 35 – Streamline Approval Process
•SB 35: A streamlined approval process for
developments in cities/counties that have not yet
met their housing targets.
•Allows projects that include housing and meet
specific requirements to be processed as a
ministerial permit.
•San Luis Obispo is subject to SB 35.
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State Housing Law
Proposed Legislation Under Consideration
•AB 11: Restructure redevelopment agencies
•SB 5: Establish the Affordable Housing and Community Development
Investment Programs to designated funding for workforce and affordable
housing that is transit-oriented
•SB 50 (Formerly SB 827): Allows for density bonuses and other
incentives/concessions to support the production of affordable housing
development near transit
•AB 10: Increase the state’s allocation of Low-Income Housing Tax
Credits to $500 million
•SB 18: Legal fund to support tenants facing displacement
•AB 36: Stabilize rental prices
•AB 68: Relaxation of Accessory Dwelling Units (ADUs) development
standards.
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4/2/2019 Item 12, Staff Presentation
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Housing Element
•Only General Plan Element that must be updated
on a set schedule and certified by the State.
•The City does not construct housing, but is required
to demonstrate that it can accommodate a specific
number of units within a specific timeframe (RHNA).
•The City is starting a Housing Element update that
must be completed by December 2020.
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Housing Element
Regional Housing Needs Allocation (RHNA) –
5th Cycle
•For the current Housing Element cycle of January 1,
2014 through June 30, 2019, the City was assigned
1,144 units.
•Demonstrate RHNA can be accommodated through
a variety of programs in addition to having
appropriate land use and zoning capacity.
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4/2/2019 Item 12, Staff Presentation
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Housing Element
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Housing Element
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4/2/2019 Item 12, Staff Presentation
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Housing Element
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SB 375
•SB 375 made changes to better align the schedules
for RHNA with schedules for adopting RTPs.
•The RTP will be updated every four years, changing
the housing element planning period to 8-years.
•The Housing Element update is due on December
31, 2020.
Housing Element
Regional Housing Needs Allocation (RHNA) –
2020-2028 (6
th cycle)
•San Luis Obispo region = 10,810 units.
•Housing unit distribution was largely based on
employment centers.
•The City is in close proximity to several large
employers and was allocated 3,354 units.
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4/2/2019 Item 12, Staff Presentation
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Housing Element
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Climate Action Plan and the Housing Element
Update
•Implement policies and programs that lower
greenhouse gas (GHG) emissions and promote
sustainable development.
•Efficient development patterns and transportation.
•The City’s CAP update is currently underway and is
scheduled for completion in Fall 2019.
Housing Element
Safety Element and the Housing Element
Update
•The City will undertake the Safety Element update
to create consistency related to:
•Housing production,
•Climate adaptation and resiliency, and
•Protection from hazards and environmental
vulnerabilities.
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4/2/2019 Item 12, Staff Presentation
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Housing Production
•Currently there are 21,416 dwelling units in the City.
•Projected buildout capacity of 4,346 additional
housing units through the year 2035.
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Housing Affordability
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Subsidized Housing
•Government sponsored economic assistance.
•Subsidies can include: direct housing subsidies, non-
profit housing, public housing and rent supplements.
•The City coordinates with the County, non-profit
organizations, and developers.
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4/2/2019 Item 12, Staff Presentation
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Housing Affordability
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Inclusionary Housing Program
•Adopted in 1999.
•Provides affordable housing, and
•Establishes a housing trust fund.
•Requires that new development projects meet
affordable housing needs.
•Generated over 450 deed-restricted or secured
affordable dwellings, and approximately $10 Million
in affordable housing funds.
Housing Affordability
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Affordable Housing Incentives
•The City uses a combination of regulatory and financial
incentives to facilitate affordable housing development.
•Development review impact fee deferrals,
•Grants and loans,
•Density bonuses,
•Permit streamlining,
•Flexible property development standards, and
•Other incentives.
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4/2/2019 Item 12, Staff Presentation
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Public Engagement
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•A Housing Forum was held today just prior to this study
session.
•Information regarding State housing law, Housing
Element & RHNA, housing production, and the City’s
Inclusionary Housing program were presented.
Next Steps
Council will review and approve a work plan for the 2019-
21 Financial Plan Housing Major City Goal.
Staff will develop a Scope of Work for the Inclusionary
Housing Nexus Study (Spring 2019).
Staff will continue to monitor and report out on State
housing laws that affect local policy and regulations.
Housing Element community engagement opportunities in
the Summer and Fall of 2019.
Prioritize housing production, especially projects that
include an affordable housing component.
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