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HomeMy WebLinkAbout03/16/2004, PH6 - DRAFT HOUSING ELEMENT UPDATE Council "'gyp°"° 3-16-04 acEnaa RepoRt CITY OF SAN LUIS OBISPO FROM: John Mandeville, Director of Community D v ment Prepared By: Jeff Hook, Associate PI SUBJECT: DRAFT HOUSING ELEMENT UPDATE CAO RECOMMENDATION 1) Approve the Council's changes to Chapter 3 of Draft Housing Element, 2) Review and conceptually approve the amended Inclusionary Housing Requirements, or provide alternative direction, 3) Review Chapter 4, and review and finalize changes to the Council Hearing Draft Housing Element, with direction to staff to bring back the amended Council Hearing Draft for . adoption at the Council's March 30, 2004 special meeting. DISCUSSION Overview On March 1, Council completed its review of Chapter 3 of the Draft Housing Element and continued consideration of the rest of the document to March 16th. Council endorsed a tentative review schedule for March as follows: Tuesday, March 16`" (Regular meeting) I. Complete review of revised Chapter 3, incorporating Council's changes(Attachment 1); 2. Review Inclusionary Housing Requirements, Tables 2 and 2A; 3. Review Chapter 4, Quantified Objectives. 4. Review Appendices, including Glossary definitions of "infill" and "underutiltized". . (Attachment 2). 5. Preliminary review of General Plan consistency. Tuesday,March 23 (Special meeting if needed) 1. Complete review of Appendices. Tuesday,March 30 (Special meeting) 1. Findings (including internal General Plan consistency determination) 2. Resolution for Housing Element adoption. Council Review Chapter 3 has been revised to include Council's changes (Attachment 1). Added language is shown as underlined: deleted text is shown in stAwAiA text. The Inclusionary Housing Requirement, Table 2, has been revised in response to the Mundie and Associates Report and to clarify the Table. Changes are as follows: 1. In-lieu fees were increased to 10% for in-city residential and all commercial developments. b - I i Draft Housing Element Update, March 16,2004 Council Meeting Page 2 This raises the in-lieu fee from its current rate of 2%of building valuation to 10%. The Mundie and Associates analysis of Affordable Housing Requirements concluded that the proposed 5% in-lieu fee proposed in the Draft Housing Element would result in most developers choosing to pay a fee rather than build affordable housing. The in-lieu fee is considerably less than the actual cost of building an affordable dwelling. The proposed 10% rate is intended to approximate the cost of building affordable dwellings, and will hopefully encourage production over payment of in-lieu fees. For commercial developments where construction of housing or dedication of real property for housing are not possible, the higher in-lieu fee means that business will shoulder greater responsibility in meeting affordable housing needs resulting from basic employment growth. Higher in-lieu fees will likely increase development costs. If the proposed Table 2A or a similar "sliding" scale is approved, however, developers may reduce Inclusionary Housing Requirements significantly by building smaller, more compact housing. Small residential and commercial developments are already exempt. Under Table 2A, housing developments with average floor areas of 1,500 square feet or less can reduce their:requirement by a factor of%2 or less. The Planning Commission supported Table 2A as a way to "incentivize" the Inclusionary Housing Program and to promote compact housing that could be "affordable by design." Each non-exempt residential project would still be required to provide at least one enforceably-restricted affordable unit. This approach encourages the private sector to shoulder a larger responsibility in meeting affordable housing need. It assumes smaller dwellings will be relatively more affordable than larger ones. To the extent housing costs are determined, in part, by floor area and size of lot, this assumption should hold true. There would be no guarantee, however, that such dwellings would be affordable for low- and moderate income persons. It would likely result in fewer enforceably- restricted, affordable units being produced, but would promote General Plan housing and land use objectives by increasing housing variety and price ranges. If adopted,the program will be monitored and evaluated to determine whether it produces the intended results. 2. A note was added to clarify that for non-exempt residential developments, at least one enforceably-restricted,affordable dwelling is required. The Inclusionary Housing Requirement has, since adoption, included this provision.. Notwithstanding Table 2A, all non-exempt residential developments would be required to provide at least one enforceably-restricted, affordable dwelling for low-or moderate income households. 3. Table 2 has been simplified, and notes added to clarify that developments of 4 or less dwellings or 2,500 square feet of commercial floor area are exempt from Inclusionary Housing Requirements,and to clarify options for meeting the Requirement. These are simply graphic changes to facilitate use of the Tables and to clarify exemptions "up front" In addition, a definition of"underutilized" has been added to the Glossary, Appendix M (Attachment 2). It is defined as "Sites or buildings that may be further developed under the City of San Luis Obispo's Zoning Regulations and that are served by streets and public utilities." To meet State law and HCD requirements, the City conducted a detailed inventory of its land resources to document that, in theory, the City had an adequate supply of appropriately zoned land to meet its assigned Regional Housing Need. In this context, "underutilized" refers to a parcel's ability to legally accommodate additional dwellings under City standards, but the term is for statistical purposes and lY Draft Housing Element Update,March 16,2004 Council Meeting Page 3 not intended as a development or growth objective. Quantified Objectives in the Draft Housing Element Update As required by State law, the Draft Housing Element Update includes Quantified Objectives showing the number of new dwelling units the City will be able to accommodate in each income group during the planning period from January 1, 2001 to July 1, 2009 (See Table 5, page 48 of the Council Hearing Draft. Of these, 2,167 units are targeted for very-low and low-income households. These objectives are based on the City's Regional Housing Need Allocation (RHNA), adjusted to reflect the City's water supply constraints during the planning period. The Quantified Objectives also set rehabilitation, preservation, and conservation objectives. These numbers are not tied to an allocation,but are based on a realistic assessment of available funding and development patterns. State HCD reviews the quantified objectives closely to determine whether a housing element meets State law. Although the City's Quantified Objectives are theoretically possible,they are not specific development quotas. The Draft Element emphasizes the City cannot guarantee these objectives will be met, given limited financial resources, economic uncertainty, and independent development decisions. Attainment of the objectives rests largely on private development decisions and the City's ability to leverage Federal, State or local funding to help meet very-low, low, and moderate income housing needs. Preliminary General Plan Consistency Issues Staff will provide the Council with a summary of General Plan consistency issues prior to the March 16th meeting. At the time of this writing, it appears the main consistency issue involves wording differences between adopted and proposed policies that have the same intent. Also, the existing . definition of"infill" in the Land Use Element(LUE) differs from the Draft Housing Element, in that the LUE definition refers to the development of vacant, in-city parcels, whereas the Draft Housing Element broadens the definition to include both vacant and underutilized in-city parcels. This is similar to the definition of"infill"that HCD uses. The broader definition helps demonstrate to HCD that the City has the sufficient land resources to theoretically meet our Regional Housing Needs allocation and thus, achieve certification. If the City's definition of infill is not expanded to include underutilized parcels in the City, the Housing Element Update should include explicit references to "underutilized parcels" to address the issue that HCD is looking for. Furthermore, the General Plan should have one, inclusive glossary to avoid differences between individual elements. Staff will consolidate all of the General Plan glossaries into one as a part of the final resolution. ATTACHMENTS: 1. Revised Ch. 3 of the Council Hearing Draft Housing Element 2. Excerpts from the Draft Housing Element Glossary,Appendix M 1:UHOOM14ousing Elemem Update\CAR2-24-04CHEupdate.doc Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 chapteR 3 [RCVIS661 coals, policies ana pizocaams 3.10 Overview This chapter of the Housing Element includes the City's Housing Implementation Plan for the period January 2001 to July 2009. The following goals, policies and programs are based on an assessment of the City's needs, opportunities and constraints; an evaluation of its existing policies and programs; and community input from the Housing Element Update Task Force, community groups,public hearings, workshops and correspondence. 3.20 Summary of New Programs Higher housing costs, population growth, and the State's economic recession are making it far more difficult for many households to meet their housing needs today than in the mid-1990s. Consequently, San Luis Obispo's housing strategy has expanded to meet those needs by: • Exempting housing affordable to moderate income households, and housing in the Downtown Core, from Residential Growth Management Regulations. • Providing incentives to encourage developers to build more affordable compact rental and ownership housing. • Initiating rezoning of several areas suitable for higher density, infill housing. • Establishing a "First-time Homebuyers Program" to assist low- and moderate-income households in purchasing a home. • Using a combination of State and Federal grants, affordable housing funds, density bonuses and other incentives, accommodate development of 4,087 dwellings during the planning period from January 1, 2001 to July 1, 2009. • Amending the City's Affordable Housing Standards to lower rent levels for dwellings intended to be affordable for moderate-income households and individuals. • Using Section 108 Federal guaranteed loan funds and other funding sources, initiate development of a major downtown mixed-use project with both affordable and market-rate housing. • Requiring most new multi-story buildings in the Downtown Core to provide housing above the ground floor. 23 Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 • Providing special incentives to encourage downtown residential development, and instituting more flexible parking requirements for specified housing developments where alternative parking/transportation strategies exist. • Seeking new funding sources to help defray City development review and impact fees for developers of very low-, low- and moderate-income housing. • Reducing obstacles to the production of small residential projects by exempting the construction, remodeling or relocation of most developments of four dwellings or less from Architectural Review Commission review. • Promoting mixed-use development, infill residential development, and more compact, higher density housing where appropriate. This strategy combines requirements and incentives to increase production of both affordable and market-rate housing over the next four and a half years. Like many small cities with only limited public funds for housing, the City has relied on the private sector to meet a portion of its affordable housing needs. Increasingly, local governments are finding it necessary to assist developers if adequate housing is to be built at prices that citizens can afford. Across the U.S., it has become apparent that the most effective programs involve cooperative public/private efforts to produce affordable housing. This requires that the City take a more active role in planning, funding and promoting affordable housing than has.been. its practice. This Housing Element update builds upon programs introduced in 1994 to promote affordable housing and expands incentives for affordable housing construction. For example, using Community Development Block Grant funds, the City has established a Housing Programs Specialist position to actively support affordable housing by soliciting grants, loans, and other fomes of assistance. 330 Goals, Policies and Programs This chapter describes the City's housing goals, policies and programs, which together form the blueprint for housing actions during the seven and one-half year period covered by this Element. Goals, policies and programs are listed in top-to-bottom order, with goals at the top and being the most general Statements, working down to programs, the most specific Statements of intent. Here is how the three levels of policy differ: ❑ Goals are the desired results that the City will attempt to reach over the long term. They are general expressions of community values or preferred end states, and therefore, are abstract in nature and are rarely fully attained. While it may not be possible to attain all goals during this Element's planning period, they will, nonetheless, be the basis for City policies and actions during this period. 24 Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 ❑ Policies are specific statements that will guide decision-making. Policies serve as the directives to designers, decision makers and others who will initiate or review new development projects. Some policies stand alone as directives, but others require that additional actions be taken. These additional actions are listed under "programs" below. Most policies have a time frame that fits within this Element's planning period. In this context, "shall" means the policy is mandatory; "should" or "will" indicate the policy should be followed unless there are compelling or contradictory reasons to do otherwise. ❑ Programs are the core of the City's housing strategy. These include on-going programs, procedural changes, general plan changes, rezonings or other actions that help achieve housing goals. Programs translate goals and policies into actions. Goal 1.1 Safety. Providing safe;decent shelter for all residents. 1.2 Policies 1.2.1 Assist those citizens unable to obtain safe shelter on their own. 1.2.2 Support and inform the public about fair housing laws and programs that allow equal housing access for all city residents. 1.2.3 Maintain a level of housing code enforcement sufficient to correct unsafe, unsanitary or illegal conditions and to preserve the inventory of safe housing. 1.3 Programs L3.1 Provide financial assistance to very-low, low- and moderate-income homeowners and renters for the rehabilitation of approximately 45 rental housing units and 45 single- family or mobile home units using Federal, State and local housing funds, such.as Community Develonment Block Grant Funds. 1.3.2 As staffing and AwAing levels allew, Continue code enforcement to expedite the removal of illegal or unsafe dwellings, to eliminate hazardous site or property conditions, and resolve chronic building safety problems. 1.3.3 Enact a Rental Inspection Program to improve the condition of the City's housing stock. 1.3.4 As-f;Hndtxg e4leContinue to support local and regional solutions to homelessness by funding programs such as the SLO Homeless Shelter and Prado Day Center for Homeless Persons. 1.3.5 Create an educational campaign for owners of older residences informing them of 25 Attachment 1 San Luis Obispo City Council Draft Housing Element, March 16,2004 ways to reduce the seismic hazards commonly found in such structures, and encouraging them to undertake seismic upgrades. Goal 2.1 Affordability. Accommodate affordable housing production_ that helps meet the City's Quantified Objectives. 2.2 Policies 2.2.1 Income Levels For Affordable Housing. For purposes of this Housing Element, affordable housing is that which is obtainable by a household with a particular income level, as further described in the City's Affordable Housing Standards. Housing affordable to Very-low, Low, and Moderate-income persons or.households shall be considered"affordable housing." Income levels are defined as follows: Very low: 50%or less of County median household income. Low: 51%to 80% of County median household income. Moderate: 81%to 120%of County median household income. Above moderate: 121%or more of County median household income. 2.2.2 Index of Affordability. The Index of Affordability shall be whether the monthly cost of housing fits within the following limits: ❑ For very low- and low-income households, not more than 25%of monthly income. ❑ For moderate-income households, not more than 30%of monthly income. ❑ For above-moderate income households, no index. These indices may be modified or expanded if the State of California modifies or expands its definition of affordability for these income groups. 2.2.3 For housing to qualify as "affordable" under the provisions of this Element, guarantees must be presented that ownership or rental housing units will remain affordable for the longest period allowed by State law, or for a shorter period under an equity-sharing or rehabilitation agreement with the City. 2.2.4 Encourage housing production for all financial strata of the City's population, in the proportions shown in the Regional Housing Needs Allocation, for the 2001 — 2009 planning period. The proportions shall be: very low income, 34 %; low income, 19 %; moderate income, 20 %; above moderate income, 27 %. 26 n Lo l Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 23 Programs 2.3.1 Amend the Inclusionary Housing Regulations to require that new residential subdivisions and residential development projects meet the inclusionary requirement by: 1) building the required affordable housing on- or off-site, 2) dedicating real property, or 3) rehabilitating units with guarantees the units remain affordable, pursuant to the Affordable Housing Standards, as shown in Tables 2 and 2A, and as further described in the Inclusionary Housing Ordinance. Table 2 Indmionary Housing Requirement Type of Development Project' Residential-Adiust base requirement per Table 2A Commercial Build 3% low or 5% moderate income east Build 2 ADUs per acre, but not less Affordable Dwelling Units (ADUs'), but not less than than 1 ADU per project; E 1 ADU per project; a ora Or (j pay in-lieu fee equal to 10 3% of building valuation.' pay in-lieu fee equal to 103% of building valuation. o Build 5% low-and 10% moderate income eese Build 2 ADUs per acre, but not less QADUs, but not less than 1 ADU per project; than 1 ADU per project; C .y or or c pay in-lieu fee equal to 15% of building valuation. pay.in-lieu fee equal to 10 3% of building valuation. 'Residential developments of four or less dwellings, and commercial developments of 2.500 gross square feet of floor area or less are exempt from these Inclusionary Housing Requirements. 'Affordable Dwelling Units must meet City affordability criteria listed in Goal 2.1. 'Developer may build affordable housing in the required amounts, pay in-lieu fee based on the above formula, or dedicate real property, or a combination of these, to City approval. '"Building Value" shall mean the total value of all construction work for which a permit would be issued, as determined by the Chief Building Official using the Uniform Building Code. 27 0 6 Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 TABLE 2A Project Inclusionary Housing Requirement Density Adjustment Factor ty (Densi (De s ty Average Unit Size (sq. ft.) UniAcre)' Up to 1,201-1,500 1,501-2000 2,001-2,500 2,501- >3,000 1,200 3,000 36 or more 0 0 .75 1 1.25 1.5 24-35.99 0 0 .75 1.25 1.25 1.5 12-23.99 0 .25 1 1.25 1.5 1.75 7-11.99 0 .5 1 1.5 1.5 1.75 <7 0 .5 1.25 1.5 1.75 2 Including allowed density bonus,where applicable. ZMultiply the total base Inclusionary Housing Requirement(either housing or in-lieu percentage) by the adjustment factor to determine requirement. At least one enforceable-restricted affordable unit is required per development of . five or more units. 2.3.2 Maintain a city housing fund to be used to develop affordable housing units and acquire land for affordable housing projects. To qualify for such public assistance, the development of affordable units must include guarantees the units will remain affordable for the longest period allowed by State law. Inclusionary housing in-lieu fees will be placed into this fund. 2.3.3 Review existing and proposed building and planning policies regulations to determine whether there are changes possible that could assist the production of affordable housing but that do not conflict with other General Plan policies. Such periodic reviews will seek to remove regulations that are no longer needed. 2.3.4 Adopt permit streamlining procedures to speed up the processing of applications and construction permits for affordable housing projects. City staff and commissions should give such projects priority in allocating work assignments, scheduling, conferences and hearings, and in preparing and issuing reports. 2.3.5 Review existing and proposed building and planning policies and regulations to encourage "green building technology", and to allow construction of personalized, unconventional housing types that reduce cost and/or energy and materials consumption relative to conventional construction, provided that residential quality and safety can be maintained. 28 I n r� Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 2.3.6 Pursue outside funding sources for the payment of City impact fees so that new dwellings that meet the City's affordable housing standards can mitigate their facility and service impacts without adversely affecting housing affordability. 2.3.7 To the extent outside funding sources can be identified to offset impacts on the City funds Geae> d, exempt dwellings that meet the moderate income, Affordable Housing Standards from planning, building and engineering development review and permit fees, including water meter installation fee. Retain current exemptions for very-low and low-income households. 2.3.8 Help coordinate public and private sector actions to encourage the development of housing that meets the City's housing needs. 2.3.9 Assist with the issuance of bonds, tax credit financing, loan underwriting or other financial tools to help develop or preserve affordable units through various programs, including, but not limited-to: (1) below-market financing and (2) subsidized mortgages for very-low, low- and moderate-income persons and first-time home buyers, and (3) self-help or"sweat equity"homeowner housing. 2.3.10 Amend Affordable Housing Standards to modify the method for calculating maximum moderate-income rental costs, so that moderate-income rents are proportionately consistent with rental costs for very low- and low-income renters, to the extent allowed by State and Federal law. 2.3.11 Amend develepment sods-te-anew- 41fli4s (#gFamy gats") en . 2.3.11 In conjunction with the Housing Authority and other local housing agencies, provide on-going technical assistance and education to tenants, property owners and the community at large on the need to preserve at-risk units as well as the available tools to help them do so. Goal 3.1 Housing Conservation. Conserve existing the housing sseel£and prevent the loss of safe a€€ r-dable housing and the displacement of current occupants. 3.2 Policies 3.2.1 Encourage the rehabilitation, remodeling or relocation of sound or rehabitateable housing rather than demolition. Demolition of non-historic housing may be permitted where conservation of existing housing would preclude the achievement of other housing objectives or adopted City goal's. 29 � �- lD Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 3.2.2 Discourage the removal or replacement of housing affordable to very-low, low- and moderate income households by higher-cost housing, and avoid permit approvals, municipal actions or public projects that remove or adversely impact such ft&fdable housing, unless such actions are necessary to achieve General Plan objectives and: (1) it can be demonstrated that rehabilitation of lower-cost units at risk of replacement is financially or physically infeasible, or (2) an equivalent number of new units comparable or better in affordability and amenities to those being replaced are provided, or (3) the project will correct substandard, blighted or unsafe housing; and (4)replacement will not adversely affect a designated historic resource. 3.2.3 Encourage seismic upgrades of older dwellings to reduce the risk of bodily harm and the loss of.housing.in an earthquake. 3.2.4. Encourage the construction, preservation, rehabilitation or ead expansion of residential hotels, group homes, integrated community apartments, and ethei:Pypes e$single-room occupancy dwellings. 3.2.5 Preserve historic homes and other historic residential buildings, historic districts and unique or landmark neighborhood features. 3.2.6 Preserve the fabric, amenities, setbacks and overall character.and quality of life of established neighborhoods: 33 Programs 3.3.1 When the City finds affordable unit removal is necessary in connection with a municipal project, it shall help displaced residents find affordable replacement housing and assist with relocation costs. 3.3.2 When the City permits private development projects that displace affordable housing, it will require the developer to assist displaced residents find affordable local replacement housing. Such measures may include: first priority in purchasing or renting new affordable dwellings to be developed on-site, assistance with relocation costs, or other financial measures. 3.3.3 Evaluate, and where necessary, revise building, zoning and fire code requirements which discourage housing and encourage the conversion of housing to other uses. 3.3.4 Using State or Federal grant funds such as Community Development Block Grants, or 30 lS - I � Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 other funding sources, the City will establish a housing rehabilitation program offering low-cost loans or other rehabilitation assistance to those who cannot afford or obtain conventional financing. The purposes of the program shall be to remove unsafe, unsanitary or illegal conditions, maintain safe housing, and preserve neighborhoods. 3.3.5 To Preserve the number of dwellings lig in the Downtown Core (C-D Zone) and the Downtown Planning Area by adopting the G45;%ill adept a "no net housing loss" program by amending the Downtown Housing Conversion Permit ordinance. The amendment shall ensure that within each area, the number of dwellings removed shall not exceed the number of dwellings added en an e&ea %ide basis 3.3.6 Identify residential properties and districts eligible for local, State or Federal listing and prepare guidelines and standards to help property owners repair, rehabilitate and improve properties in a historically and architecturally sensitive manner. 3.3.7 To encourage housing rehabilitation, amend the Affordable Housing Standards to allow a reduced term of affordability for rehabilitated units, to the extent allowed by . State or Federal law, with a minimum term of but net less th three years and in proportion to the level of City assistance. -3.3.8 Establish a monitoring and early warning system to track affordable housing units at- risk of being converted to market rate housing. Goal 4.1 Mixed-Income Housing. Preserve and accommodate existing and new mixe& income neighborhoods and seek to prevent neighborhoods or housing types that are segregated by economic status. 4.2 Policies 4.2.1 Within newly developed neighborhoods, housing that is affordable to various economic strata should be intermixed rather than segregated into separate enclaves. The mix should be comparable to the relative percentages of very-low, low, moderate and above-moderate income households in the City's quantified objectives. 4.2.2 Include both market-rate and affordable units in apartment and residential condominium projects and intermix the types of units. Affordable units should be comparable in appearance and basic quality to market-rate units. 4.2.3 Very low-income housing deveiepinents, such as that developed by the Housing Authority of the City of San Luis Obispo or other housing providers, may be located in any zone that allows housing, and should be dispersed throughout the City rather than concentrated in one neighborhood or zone. In general, 23 dwellings should be 31 ( - I Aftachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 the maximum number of very-low-income units developed on any one site. 4.2.4 In its discretionary actions, housing programs and activities, the City shall affirmatively further fair housing and promote equal housing opportunities for persons of all economic segments of the community. 4.3 Program 4.3.1 Review new development proposals for compliance with City regulations and revise projects or establish conditions of approval as needed to implement the mixed- income policies. Goal 5.1 Housing Variety and Tenure. Provide variety in the location,type, size, tenure, . and style of dwellings. 5.2 Policies 5.2.1 Encourage the integration of appropriately scaled, special-use housing into developments or neighborhoods of conventional housing. 5.2.2 Encourage mixed-use residential/commercial projects to include live-work and work- live units where housing, offices or other commercial,uses are compatible. 5.2.3 Encourage the development of housing above ground-level retail stores and offices to provide housing opportunities close to activity centers and to use land efficiently. . 5.2.4 In general, housing developments of twenty (20) or more units should provide a variety of dwelling types, sizes or forms of tenure. 5.3 Program 5.3.1 Review new developments for compliance with City regulations and revise projects or establish conditions of approval as needed to implement the housing variety and tenure policies. Goal 6.1 Housing Production. Plan for Genstolet new housing to meet the full range of community housing needs . 6.2 Policies 6.2.1 Consistent with the growth management portion of its Land Use Element and the availability of adequate resources, the City will plan to accommodate up to 2,909 32 b I I Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 exempt and non-exempt dwelling units between January 2001 and July 2009. Cal Poly University intends to provide up to 1,178 housing units on State land during the planning period. 6.2.2 New commercial. developments in the Downtown Core (C-D Zone) shall include housing, unless the City makes one of the following findings: 6.2.3 ❑ Housing is likely to jeopardize the health, safety or welfare of residents or employees; ❑ The property's shape, size, topography or other physical factor makes dwellings infeasible. 6.2.4 If City services must be rationed to new development, residential projects will be given priority over non-residential projects. 6.2.5 City costs of providing services to housing development will be minimized. Other than for existing housing programs encouraging housing affordable to very-low and low income persons, the City will not make new housing more affordable by shifting costs to existing residents. hillsides, wetlands, bielegieeA r-esieffl-weeas -And . 6.3 Programs 6.3.1 Amend the General Plan and Residential Growth Management Regulations (SLOMC 17.88) to exempt all new housing in the C-D zone, and new housing in other zones that is enforceable restricted for Affer-dable4e very low-, low- and moderate- income households, pursuant to the Affordable Housing Standards. In expansion areas, the overall number of units built must conform to the city-approved phasing plan. 6.3.2 Amend the Zoning Regulations to allow flexible parking regulations for housing development, especially in the Downtown Core (C-D Zone) PlaxingAFea, including the possibility of reduced or no parking requirements where appropriate guarantees limit occupancies to persons without motor vehicles or who provide proof of reserved, off-site parking tEmspeftmien 6.3.3 Provide incentives to encourage additional housing in the Downtown Core, particularly in mixed-use developments. Incentives may include flexible density, use, height, or parking_provisions, fee reductions, and streamlined development review and permit processing_ (moved from 6.2.3) 33 co - I4 Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 6.3.4 Amend the Parking Management program to promote housing in the Downtown Core by allowing flexible use of city parking facilities by Downtown residents, where appropriate. Such use may include requirements for parking use fees, use limitations and enforcement provisions. 6.3.5 Specific plans for designated Expansion Areas shall include appropriately zoned land to meet the City's regional housing need for dwellings affordable to very low- and low-income households, including R-3 and R-4 zoning. These plans shall include sites suitable for subsidized rental housing and affordable rental and owner-occupied units. Such sites shall be integrated within neighborhoods of market-rate housing and shall be architecturally compatible with the neighborhood. 6.3.6 Specific plans shall slued designate sufficient areas at appropriate densities to accommodate the types of dwellings that would be affordable in the percentages . called for by this Element. Also, specific plans will include programs to assure that the affordable dwellings actually will be produced. 6:3.7 Consider Initiate amendments to the General Plan to ead rezone commercial, manufacturing or public facility zoned areas for residential use, to promote higher- density, infill or mixed-use housing where growth and land development patterns are no longer valid and where impact to Low Density Residential areas is minimal apprepfie#e. For example, areas to be considered for possible rezoning include, but are not limited to the following sites(shown in Figure 1): a) Little Italy district and portions of Broad Street corridor b) Mid-Higuera corridor, between Fontana Avenue and Prado Road c) 791/861 Orcutt Road d) West Beth side of Ferrini Road, between Cerro Romauldo and Felton Way e) 3730 South Higuera Street f) 1642 Johnson Avenue and 1499 San Luis Drive (rezone vacant and underutilized school district property) g) 1030 Southwood Drive 6.3.8 Support regional efforts to establish a countywide affordable housing fund to be funded through a countywide, dedicated revenue source rather than diverting existing affordable housing trust funds. The City should manage its Affordable Housing funds generated through the Inclusionary Housing Program to assist affordable housing development in the City. retia fer theprevisien e€ a€€er-dable housing tmits er. m4ped uses. Sueh flexible sizes, , 34 Ur �� Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 6.3.9 Balance City efforts to encourage residential development by focusing as much on infill development and densification within City Limits as on annexation of new residential land. The City Ail! aeeemplish this by eeasidefiag afaeadmeffts te the Figure 1 Areas to be Considered for Possible Rezoning d f a b rp c_ e N A 35 LILP Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 6.3.10 Seek opportunities with other public agencies and public utilities to identify, assemble, develop, redevelop and recycle surplus land for housing, and to convert vacant or underutilized public, utility or institutional buildings to housing. 6.3.11 Develop multi-family housing design standards to promote innovative, attractive, and well-integrated higher-density housing. Developments that meet these standards shall be eligible for a streamlined level of planning and development review. Developments that include a significant commitment to affordable housing may also be eligible to receive density bonuses, parking reductions and other development incentives, including City financial assistance. 6.3.12 Financially assist in the development of 90 new ownership or rental units affordable to very-low; low- and moderate-income households during the planning period using State, Federal and local funding sources. 6.3.13 Actively seek new revenue sources, including State, Federal and private/non-profit. sources, and financing mechanisms to assist affordable housing development and first-time homebuyer assistance programs. 6.3.14 Exempt the construction, relocation, rehabilitation or remodeling of up to four dwellings of up to 1200 square feet each r-esideftfieA upAts from Architectural Review Commission review:.: New multi-unit housing may be allowed with "Minor or Incidental" or staff level architectural review, unless the dwellings are located on a . sensitive or historically significant site. D at %Gem- 6.3.15 Consider Siete amendments to the Zoning Regulations to increase residential density limits in the Downtown Core (C-D Zone). 6.3.16 Assist in the production of long-term affordable housing by identifying vacant or underutilized City-owned property suitable for housing, and dedicate public property, where feasible and appropriate, for such purposes. Goal 7.1 Neighborhood Quality. Maintain, preserve and enhance the quality of neighborhoods, encourage neighborhood stability, and improve neighborhood appearance and function . 7.2 Policies 7.2.1 Within established neighborhoods, new residential development shall be of a character, size, density and quality that preserves the neighborhood character and 36 tp ,- I'1 Attachment 1 San Luis Obispo City Council Draft Housing Element, March 16,2004 maintains the quality of life for existing and future residents. 7.2.2 Higher density housing should maintain high quality standards for unit design, privacy, security, on-site amenities, and public and private open space. Such standards should be flexible enough to allow innovative design solutions in special circumstances, e.g. in developing mixed-use developments or in housing in the Downtown Core. 7.2.3 Within established neighborhoods, iFA4 housing should not be located on sites designated in the General Plan for parks or open space. 7.2.4 Within expansion areas, new residential development should be an integral part of an existing neighborhood or should establish a new neighborhood, with pedestrian and bicycle linkages that provide direct, convenient and safe access to adjacent neighborhoods, schools and shopping areas. 7.2.5 The creation of walled-off residential enclaves, or of separate, unconnected tracts, is discouraged because physical separations prevent the formation of safe, walkable, and enjoyable neighborhoods. 7.2.6 Housing shall be sited desigmd to enhance safety along neighborhood streets and in other public and semi-public areas. 7.2.7 The nhvsical designs of neighborhoods and dwellings should promote walking and bicycling, and should preserve open spaces and views. paFk4ag 7.3 Programs 7.3.1 Implement varied strategies to ensure residents are aware of and able to participate in planning decisions affecting their neighborhoods early in the planning process. 7.3.2 Identify specific neighborhood needs, problems, trends and opportunities for improvements. Work directly with neighborhood groups and individuals to address concerns. 7.3.3 Help fund neighborhood improvements, including sidewalks, traffic calming devices, crosswalks, parkways, street trees and street lighting to improve the aesthetics, safety and accessibility . 37 Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 , b.,,eenies, view windews _ f-R-il._F . ,_e (move to LUE 2.2.12) 7.3.4 Continue to develop and implement neighborhood parking strategies, including parking districts,to address the lack of on- and off-street parking in residential areas. Goal 8.1 Special Housing Needs. Encourage the creation and maintenance of housing for those with special housing needs. 8.2 Policies 8.2.1 Encourage housing development that meets a variety of special needs, including large families, single parents, disabled persons, the elderly, students, the homeless, or those seeking congregate care, group housing, single-room occupancy or co-housing accommodations, utilizing universal design for accessibility, where appropriate. 8.2.2 Preserve manufactured housing parks and support changes in this form of tenure only if such changes provide residents with greater long-term security or comparable housing in terms of quality,.cost, and livability. 8.2.3 Encourage manufactured homes in Expansion Areas by: a) Encouraging developers to create owner-occupied manufactured home parks with amenities such as greenbelts, recreation facilities, and shopping services within a master planned community setting. Such parks could be specifically designed to help address the needs of those with mobility and transportation limitations. b) Establish lot sizes, setback, and parking guidelines that allow for relatively dense placement of manufactured homes within the master planned neighborhood. c) Locate manufactured home parks near public transit facilities or provide public transportation services to the manufactured home parks to minimize the need for residents to own automobiles. 8.2.4 Encourage Cal Poly University and Cuesta College to continue to strengthen faculty and staff housing on State land (such as that along State Highway 1) to pursue on- campus student housing programs (to lessen pressure on City housing supply and transportation systems), and to meet both existing and future housing needs, consistent with the Cal Poly Student Housing Needs Study recommendations. 8.2:5 Strengthen the role of on-campus housing by encouraging Cal Poly University to require entering freshmen students to live on campus during their first year. 38 Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 8.2.6 Fraternities and sororities should be located on the Cal Poly University campus. Until that is possible, they should be located in Medium-High and High Density residential zones near the campus. 8.2.7 Special-needs living facilities should be dispersed throughout the City rather than concentrated in one district. 83 Programs 8.3.1 As funding allows, support local and regional solutions to meeting the needs of the homeless and continue to support, jointly with other agencies, shelters for the homeless and for displaced women and children. 8.3.2 Continue the mobile home rent stabilization program to minimize increases in the cost of mobile home park rents. 8.3.3 Identify sites in specified expansion areas suitable for tenant-owned mobile-home parks, cooperative housing, manufactured housing, self-help housing, or other types of housing that meet special needs. 8.3.4 Advocate developing non-dormitory housing on the Cal Poly University campus and refurbishing existing campus housing and its associated programs to make campus living more attractive and affordable. 8.3.5 Work with Cal Poly University Administration to secure designation of on-campus fraternity/sorority living groups. 8.3.6 Jointly develop and adopt a student housing plan and "good neighbor program" with Cal Poly University, Cuesta College and City residents. The program would seek to improve communication and cooperation between the City and the schools, set Qn- campus student housing objectives and establish clear, effective standards for student housing in residential neighborhoods. 8.3.7 Provide public educational information at the City's Community Development Department public counter on universal design concepts in new construction. Goal 9.1 Sustainable Housing, Site, and Neighborhood Design. As part of its overall commitment to quality of life for its citizens, and to maintaining environmental quality, the City encourages housing that is resource-conserving, healthful, economical to live in, environmentally benign, and recyclable when demolished. 39 'd V Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 9.2 Policies 9.2.1 Residential developments should promote sustainability in their design, placement, and use.. Sustainability can be promoted through a variety of housing strategies, including the following: a) Maximize use of renewable, recycled-content, and recycled materials, and minimize use of building materials that require high levels of energy to produce or that cause significant, adverse environmental impacts. b)Incorporate renewable energy features into new homes, including passive solar design, solar hot water, solar power, and natural ventilation and cooling. c)Minimize thermal island effects through reduction of heat-absorbing pavement and increased tree shading. d)Avoid building materials that may contribute to health problems through the release of gasses or glass fibers into indoor air. e)Design dwellings for quiet, indoors and out, for both the mental and physical health of residents.. f) Design dwellings economical to live in because of reduced utility bills, low cost maintenance and operation, and improved occupant health. g)Use construction materials and methods that maximize the recyclability of a building's parts. h) Educate public, staff, and builders to the advantages and approaches to sustainable design, and thereby develop consumer demand for sustainable housing. i) City will consider adopting a sustainable development rating system, such as the LEED program. 9.2.2 Residential site, subdivision, and neighborhood designs should be coordinated to make residential sustainability work. Some ways to do this include: a) Design subdivisions to maximize solar access for each dwelling. b) Design sites so residents have usable outdoor space with access to both sun and shade. c) Streets and access ways should minimize pavement devoted to vehicular use. 40 Attachment 1 San Luis Obispo City Council Draft Housing Element, March 16,2004 d) Use neighborhood retention basins to purify street runoff prior to its entering creeks. Retention&eek basins should be designed to be attractive,visual and functional amenities in the dry season. may,Fenced-off retention basins should be avoided. e) Encourage cluster development with dwellings grouped around significantly- sized, shared open space in return for City approval of smaller individual lots. f) Treat public streets as landscaped corridors,using continuous parkway planters at least six feet wide and where feasible, median planters to enhance, define, and to buffer residential neighborhoods of all densities from the effects of vehicle traffic. 9.2.3 Preserve the physical neighborhood qualities in the Downtown Planning Area Eefe that contribute to sustainability. Some ways to do this include: a)Maintain the overall scale, density and architectural character of older neighborhoods surrounding the Downtown Core, the-eb p-e_eFA fig el ese is :A b) Encourage the maintenance and rehabilitation of historically designated housing stock. 9.2.4 To promote energy conservation and a cleaner environment, encourage the development of dwellings with energy-efficient designs, utilizing passive and active solar features, and the use of energy-saving techniques that exceed minimums prescribed by State law. 9.2.5 Actively promote water conservation though housing and site design to help moderate the cost of housing. 9.3 Programs 9.3.1 Educate planning and building staff and citizen review bodies on energy conservation issues, including the City's energy conservation policies and instruct that they work with applicants to achieve the housing goals that conserve energy. 9.3.2 Revise the Energy Conservation Element to address residential energy conservation for both new and existing dwellings. Disseminate this information to the public. 9.3.3 Evaluate present solar siting and access regulations to determine if they provide assurance of long-term solar access for new or remodeled housing and for adjacent 41 Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 properties, and revise regulations found to be inadequate. 9.3.4 Consider adopting street and access way standards that reduce the amount of paving impeFmeablesH £aee devoted to vehicular use. Goal 10.1 Local Preference. Maximize affordable housing opportunities for those who live or work in San Luis Obispo while seeking to balance job growth and housing supply. 10.2 Policies 10.2.1 Administer City housing programs and benefits, such as First Time Homebuyer assistance or affordable housing lotteries, to give preference to: 1) persons living or working in the City or within the City's Urban Reserve, and 2) persons living in San Luis Obispo County. 10.2.2 Cal Poly State University and Cuesta College should actively work with the City and community organizations to create positive environments around the Cal Poly Campus by: a) Establishing standards for appropriate student densities in neighborhoods near Campus; b) Promoting homeownership for academic faculty and staff in Low-Density Residential neighborhoods near Campus; and c) Encouraging and participating in the revitalization of degraded neighborhoods. 10.3 Programs 10.3.1 Work with the County of San Luis Obispo to mitigate housing impacts on the City due to significant expansion of employment in the unincorporated areas adjacent to the City. Such mitigation might include, for example, County participation and support for Inclusionary Housing Programs. 10.3.2 Encourage residential developers to promote their projects within the San Luis Obispo housing market area(San Luis Obispo County) first. 10.3.3 Advocate the establishment of a link between enrollment gFewth and the expansion of campus housing programs at Cal Poly University and Cuesta College to reduce pressure on the City's housing supply. . AY6fa1B thM fiffther- e*pa}Si9 te-H3Scrcacxmzr"•• ciiS heasing fer-new employees. 42 r� f � Attachment 1 San Luis Obispo City Council Draft Housing Element,March 16,2004 10.3.4 Work with other jurisdictions to advocate for State legislation that would: 1) provide fundingto o help Cal Poly University and Cuesta College provide adequate on-campus student housing, and 2) allow greater flexibility for State universities and community colleges to enter into public-private partnerships to construct student housing_ Goal 11.1 Suitability. Develop and retain housing on sites that are suitable for that purpose. 11.2 Policies 11.2.1 Where property is equally suited for commercial or residential uses, give preference to residential use. Changes in land use designation from residential to non-residential should m44 be discouraged. 11.2.2 Prevent new housing development on sites that should be preserved as dedicated open space or parks, on sites subject to natural hazards such as unmitigatable geological or flood risks, or wild fire dangers, and on sites subject to unacceptable levels of man-made hazards or nuisances, including severe soil contamination, airport noise or hazards, traffic noise or hazards, odors or-incompatible neighboring uses. 11.3 Program 11.3.1 The City will adopt measures ensuring the ability of legal, conforming non- residential uses to continue where new housing is proposed on adjacent or nearby sites. 3.40 Implementation Tools A variety of Federal, State and local programs and resources are available to help implement the City's housing goals and activities. These include both financial resources, as well as in-kind incentives that help address housing needs. Table 3 lists the available resources, incentives and other tools that can help address housing needs. Table 3 Resources/Incentives Available For Housin Activities Program Description Eligible Activities Local Resources City of San Luis Obispo Affordable In-lieu fees paid by developers to Any expense in support of Housing Fund meet inclusionary housing affordable housing development, requirements. subject to City Council approval and adopted criteria(Res.No.9263, 2001 Series). 43 (_ i W r 1 Attachment 2 San Luis Obispo City Council Draft Housing Element,January 27,2004 ./ Section 8 Housing Choice Voucher Program. Fraternity House (or Sorority House). A Residence for college or university students who are members of a social or educational association, and where such as association holds meetings or gatherings. Granny Flat. See"Second Residential Unit." High Occupancy Residential Use. Any dwelling other than a Residential Care Facility as defined in the Zoning Regulations, that is located in the R-1 or R-2 zones and is occupied by six or more adults. Historic Property. A property, including land and building, determined by the City to have archaeological, historical, or architectural significance as described in the Historic Preservation Program Guidelines, and listed on the Contributing Properties List or Master List of Historic Resources. Household. All persons, including those related by birth, marriage or adoption and unrelated persons, who occupy a single dwelling. Housing or "Dwelling" Unit. A building, a modular home, a mobile home, a cooperative, or any other residential use considered real property under State law and on a permanent foundation, with provisions for sleeping,cooking and sanitation, and with permanent connections to utilities. —� Infill Housing. Development of housing on vacant or underutilized lots within the City limits on property zoned for such uses. Jobs-Housing Balance. A ratio describing the number of jobs compared with dwelling units in a defined geographic area, and a measure of the adequacy of the housing stock to meet community needs. Live-Work or Work-Live Unit. An integrated housing unit and work space, occupied and utilized by a single household in a structure, either single-family or multi-family, that has been designed or structurally modified to accommodate joint residential occupancy and work activities, and which includes: 1) Complete kitchen and sanitary facilities in compliance with City building code, and 2) Working space reserved for and regularly used by one or more occupants of the unit. The difference between "live-work" and "work-live" units.is that the work component of a live- work unit is secondary to its residential use, and may include only commercial activities and pursuits compatible with the character of a quiet residential environment, while the work component of a work-live unit is the primary use, to which the residential component is 194 f� 'fli:. Attachment 2 San Luis Obispo City Council Draft Housing Element, March 16,2004 such as historic significance, creekside location, or visual prominence, requiring more detailed development review than would otherwise be required for other similarly zoned lots nearby. Single-family Dwelling, Detached. A dwelling occupied or intended for occupancy by only one household, and that is structurally and physically separate from any other such dwelling. Single Room Occupancy(SRO) Unit. A single-room dwelling, typically 80-250 square feet in floor area, with a sink and a closet, with communal facilities for cooking and sanitation. Tenure. The mode or status of residency,whether by renting or owning real property. Transitional Housing. Housing provided to homeless persons, abused women or children, or other persons with special housing needs for a temporary period, and generally integrated with other social services and programs including counseling, education, and training to assist in the transition to self-sufficiency through gaining stable income and permanent housing. Underutilized. Sites or buildings that may be further developed under the City of San Luis Obispo's Zoning Regulations and that are served by streets and public utilities. jh4Aousingelemen Wpdate/2004housingelementCCdraft3-16.04 197 LO CYDNEY HOLCOMB 60S SS4 0365 03/16/04 0S:S2pm P. 001 r AAA 5- RQ1N Residents for Quality Neighborhoods P.O. Box 12604 . San Luis Obispo, CA 93406 RECEIVED RED FILE MAR 1. 6 2004 M ING AGENDA SLO CITY CLERK DAT W 0ITEM #,TR � DATE: March 16, 2004 FAXED TO: 781-7109 TO: San Luis Obispo City Council et9iw 0 fZ'COUNCIL ZCDD DIR RE: Meeting Date: March 16, 2004 X'CA0 Z FIN DIR Item * PH-6 CAO Z�:FIRE CHIEF Draft Housing Element UpdateJed' TTORNEY Te PW DIR ZCLERK/®RIQ Z'PCLICE CHF I DEPT HEAB9 ;2 REC DIR UTIL DIR Honorable Mayor and Members of the City Council, HR DIR 1. RQN is opposed to the proposal to indude munden&lized`/ofs in bhe Genera/Plan definition Of"Infill. This proposal is contrary to your Housing Element Update goal to preserve the character of the City's existing neighborhoods, especially those in the R-1, low density residential zone. Underutilized sites generally refer to parcels that are developed with residential structures that were built at a significantly lower density than permitted under current zoning. For example, parcels zoned for multi-family development, but which have single-family units or small apartments on them. The definition of"underutilized lotso, as defined in your agenda report at Page 6-3, connotes that any lot, large or small, in any zone, (including R-1) which is served by streets and utilities could be subject to further development or redevelopment. Staff argues that having a definition of-Infill that includes both vacant and underutilized in-city parcels is more "similar" to the definition of infill used by HIM. A definition, which they have not provided and we have been unable to find. However, we did find a definition of "Infill' that is very similar to one currently used by the City. The California General Plan Glossary published by the California Planning Roundtable* defines infill as: "Development of vacant land (usually Individual lots or left`-over properties) within areas that are already largely developed'. *A prestigious group of 34 members of the. American Planning Association whose roster Includes: Cathy Creswell, Deputy Director, HCD; Linda L. Dalton, Executive Vice Provost and Chief Planning Officer at Cal Poly, Co-Chair of the City's Housing Element Update Task Force; and, Paul Crawford a Principal at Crawford, Multari &Clark. CYMNEY HOLCOMB 805 S94 0365 03/16/04 0S:S2pm P. 002 March 16, 2004 DRAFT HOUSING ELEMENT Page 2 2. RQN is opposed to the indusibn of R-1 zoned properties designated as "underutilized'on the Map depicting "In-Oty Pmpertles with Additional Development Capacity"[Flgure D-1, Page 135J- Staff has continuously assured City residents and the Council that this Housing Element Update would not increase the density in existing R-1 neighborhoods - that it was "hands off R-1. It now appears they are saying that their proposed "quantified objectives" are dependent upon designating specific developed R-1 lots in existing neighborhoods all over the City as"sites that may be further developed under the City of San Luis Obispo!;Zoning Regulations and that are served by streets and public utilities': Staff argues that a broader definition of infill: "helps demonstrate to HCD that the City has the suii9dent/and resources to theoretically meet our Regional Housing Needs Allocation and thus achieve certificadon9 HCD requires, and the City performed, an analysis of the City's residential resources, including the "theoretical" potential development capacity of vacant sites and underutilized sites. [see: Draft Housing Element, Table D-1, page 134]. HCD does .not require underutilized sites to be Included in the"definition" of infill development. Staff goes on to say that: "If the Clty's definition of infill is not expanded to include underutilized parcels in the City, the Housing Element Update should include explicit references to underutilized parcels to address the Issue HCD is looking for". Unfortunately, these "explidt references to undenurtilized parcels" have already appeared on the map contained in the Draft Housing Element [Figure D-1, Page 135] and the parcel addresses can be obtained by cross referencing their locations with other city maps. You are being asked to approve this map as a permanent part of the Housing Element, with only a disclaimer in a staff report that states the term underutilized is meant for statistical purposes and not as a development or growth objective. We believe that while the analysis is theoretical it becomes a reality when it is placed on a map. Many other cities including Pasadena do not include maps depicting this information and have HCD adopted housing elements. Furthermore, many of the R-1 sites identified in Figure D-1 as "underutilized" have intact neighborhood CC&Rs which prohibit further subdivision, others have histories of city actions protecting the large lot character, etc. Your council does not have this information. The owners of homes on these lots and their surrounding neighbors have also not been given notice of the proposed City designation affecting their homes and neighborhoods, and have thus been deprived of the opportunity to comment. For example see Attachment A which shows underutilized parcels in two different R-1 neighborhoods in Zone 1 that each have intact CC&Rs prohibiting further subdivision. CYDNEY HOLCOMB SOS SS4 03BS 03/16!04 OS:S2pm P. 003 I March 16, 2004 DRAFT HOUSING ELEMENT Page 3 3. We therafbre request shat you take the fn//owing action: a. Change the definition of"infill" to the California Planning Roundtable's definition which states: Development of vacant land (usually individual lots or left-over properties) within areas that are already largely developed'. b. Delete underutilized sites" from the map. [Figure D-1, Page 135]. c. Refigure the Quantified Objectives so that the vast majority of underutilized R-1 lots do not need to be counted. This should not be difficult as the number of underutilized R-1 lots Is a very small part of the State Housing Mandate. Respectfully submitted, Cy net Holcomb Chairperson, RQN I I Attachment A I I I I I I I I I CYDNEY HOLCOMS SOS SS4 036S 03/16/04 0S:SZpm P. 004 March 16, 2004 DRAFT HOUSING ELEMENT ATTACHMENT A am, film, Glim,"ars4WD aisNo WIN rrfr 1 41110 .�a amino pp RECEIVED C ItyMAR 2004 IIIIIIIIIIII III sAn tuis c E K 990 Palm Street, San Luis Obispo, CA 93401-3249 - /COUNCIL CDD DIR , rCAO 'IN DIR March 12, 2004 CACAO -.1 FIRE CHIEF ATTORNEY ✓ZrrW DIR MEMORANDUM — RED FILE ITEM Z ,7CLERKICRIG 4ZPOLICE CHF ❑ DEPT HEADS ZREC DIR Zr UTIL DIR TO: City Council ZSHR DiR VIA: Ken Hampian, City Administrative Officer FROM: Michael Draze, Deputy Comm Development Director.! BY: Jeff Hook, Associate Planner?W SUBJECT: Draft Housing Element — Revised Inclusionary Housing Requirement As described in Council's March 16 Agenda report, the Affordable Housing Requirement (Table 2) has been revised to incorporate Council's edits. It also reflects higher in-lieu fees in response to the Mundie and Associates analysis of the Affordable Housing Requirements. The Planning Commission's recommended Table 2A is still included as an incentive for the production of compact housing that may offer "affordability by design." Notwithstanding Table 2A, new residential developments would still be responsible to build at least one long- term affordable dwelling or pay in-lieu fees. As an alternative to this approach, Council may consider deleting Table 2A and adding a Program 2.3.11 which reads: "Consider modifying the Affordable Housing Requirement to provide incentives for the production of smaller, more compact housing. Such changes should encourage simple or "starter" housing that offers more variety and/or affordability by design." If Council opts for this approach, staff would anticipate returning to the Council later this year with a package of General Plan amendments, including an amendment to the Housing Element to include such an incentive. RED FILE AT MG AGEND/j_ D � ITEM # � Jh/L/citycouncil/ccrnemo3-12-04 ® The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. Telecommunications Device for the Deaf(805)781-7410. ���11111�III��111�IIIIIIIIIII RECEIVED IIIIIIII IIIOf5 0 Cl 1�11�11S K 990 Palm Street, San Luis Obispo, CA 93401-3249 March 12, 2004 COUNCIL TCDD DIn 7&C AO FIN DIR MEMORANDUM - RED FILE ITEM J�ACAO IRE CHIEF Z ATTORNEY LPW DIR O CLERK/ORIG lC POLICE CHF TO: City Council fd DEPT HEADS }G REC DIR VIA: Ken Hampian, City Administrative Officer , � - k LITIL DIR � �HR DTR FROM: Michael Draze, Deputy Co Development Director =— BY: Jeff Hook, Associate PI r SUBJECT: Draft Housing Element - General Plan Consistency Update The Draft Housing Element includes a General Plan Consistency Analysis in Appendix I. That analysis has been updated to reflect Council's changes to Chapter 3. As a result of that update, staff has identified three General Plan inconsistencies that will need to be addressed. These are described in Table 1 below. General Plans must be internally consistent. In adopting the Draft Housing Element Update, Council can address the inconsistency by 1) modifying the Draft Housing Element for consistency with adopted General Plan policy; or 2) amending the General Plan for consistency with the Draft Housing Element. Staff recommends the latter approach. The inconsistencies are all with the Land Use Element, which itself is due for updating in 2004-2006. Council should, in its resolution approving the Housing Element Update, provide direction to staff to return with the necessary amendments to achieve consistency at the earliest possible date. The General Plan may be amended four times a year, and staff tries to "batch" amendments and space these evenly throughout the calendar year. Staff would anticipate coming back to Council with the next batch of amendments, later this year. In the meantime, the more recently adopted General Plan element would prevail. Table 1. General Plan Inconsistencies (reference: General Plan Digest) Draft Housing Element Adopted General Plan Policy Significance Policy or Program or Pro ram in Conflict Program 3.3.5 - "No Net LU 4.2.2 - Dwellings and Offices. No net loss strategy would Loss" in Downtown Calls for onsite replacement of allow offsite replacement housing and creation of R/O zone. of housing units lost. Program 6.3.3 - Downtown LU 3.1.6 - Building Intensity Flexible residential density Housing Incentives, flexible incentive could exceed 36 density. I units per acre Appendix M - Glossary. GP Digest - Glossary. "Infill Broadens definition of infill "Infill Housing." (includes Housing" (includes vacant land only). housing to help meet vacant and underutilized land), Quantified Objectives. Jh/Ucitycounci11ccmemo3-12-04B RED.FILE ME ING AGENDA DATEA*ITEM # OThe City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. Telecommunications Device for the Deaf(805)781-7410. ��iil�lllll�llllllf VIII IIIIIII �DIII����► � IIIIIIII III City Of SAn IuIS OBISPOMom 990 Palm Street, San Luis Obispo, CA 93401-3249 March 11, 2004 RED FILE MEETING AGENDA MEMORANDUM - RED FILE ITEM DATE 5,IVITEM #� (o TO: City Council I/ VIA: Ken Hampian, City Administrative Officerd� FROM: John Mandeville, Community-Development Director"��Tp� BY: Jeff Hook, Associate Plann SUBJECT: Neighborhoods North of Foothill Recommended Changes to Draft Housing Element Policies 8.2.4 - 8.2.8 On March 1 Council completed its review of Chapter 3 of the Draft Housing Element. Staff has incorporated Council's changes into a "Revised Draft Chapter 3" and Council will review the revised Chapter 3 on March 16. Council's revised wording is shown in section "A" below. Staff recently received a letter from Neighborhoods North of Foothill (NNOF) which recommends changes to draft policies 8.2.4 - 8.2.8. That letter was already distributed to Council members. NNOF's recommended changes and staffs responses are shown in section "B." Staff reviewed the recommendations and in general, found them to be consistent with Council's intent. The changes are primarily "wordsmithing" for clarity and consistent format. In the case of Draft Policy 8.2.4, NNOF recommends splitting it into two policies to address Cal Poly University and Cuesta College separately, and to eliminate a reference to Cal Poly staff and faculty housing "on State land (such as that along Highway 1)". A. EXCERPT FROM REVISED COUNCIL HEARING DRAFT HOUSING ELEMENT (Council's edits from March 1, 2004 hearing) 8.2.4 Encourage Cal Poly University and Cuesta College to continue to strengthen faculty and staff housing on State land (such as that alone State Highway 1) to pursue on- campus student housing programs (to lessen pressure on City housing supply and transportation systems), and to meet both existing and future housing needs, consistent with the Cal Poly Student Housing Needs Study recommendations. 8.2.5 Strengthen the role of on-campus housing by encouraging Cal Poly University to require entering freshmen students to live on campus during their first year. 8.2.6 Fraternities and sororities should be located on the Cal Poly University campus. Until that is possible, they should be located in Medium-High and,-H4,-Den i#3ZresidPn+;al _. i. :C, CDD D!R h�ra� E:AO FIN DIR e•A� ❑-ACAO FIRE CHIEF fga6FO6-�2 TTORNEY PW DIR The City of San Luis Obispo is committed to include the disabled in all of its services, p qes. ❑ POLICE CHF Telecommunications Device for the Deaf(805)781-7410. EPT HE.gDS ❑ AEC DIR ry' 1 UTIL DIR i NNOF Recommended Changes to Draft Housing Element Page 2 zones near the campus. 8.2.7 Special-needs living facilities should be dispersed throughout the City rather than concentrated in one district. 8.2.8 Encourage Cal Poly University to provide staff and faculty housing on sites designated as H-8 and H-9 along Highway 1. B. NNOF RECOMMENDED WORDING CHANGES FOR COUNCIL HEARING DRAFT HOUSING ELEMENT POLICIES 8.2.4-8.2.8 AND STAFF'S RESPONSE 8.2.4 Encourage Cal Poly University to continue to develop student housing on campus to meet both existing and future needs in order to lessen pressure on City housing supply and transportation systems. Staff response: Support recommended wording, with minor edits as follows: 8.2.4 Encourage Cal Poly University to continue to develop on-campus student housing to meet existing and future needs and to lessen pressure on City housing supply and transportation systems. 8.2.5 Strengthen the role of on-campus housing by encouraging Cal Poly University to require entering freshmen students to live on campus during their first year. Staff response: O.K. It is consistent with Council's wording from March 1. 8.2.6 Locate fraternities and sororities on the Cal Poly University campus. Until that is possible, they should be located in Medium-High and High Density Residential zones near the campus. Staffresponse: O.K. It is consistent with Council's wording from March 1. 8.2.7 Encourage Cal Poly University to develop faculty and staff housing which is consistent with City General Plan policies. NNOF Recommended Changes to Draft Housing Element Page 3 Staff response: This revision differs from Council's revised Policy 8.2.4 by deleting the reference to faculty and staff housing on "State land (such as that along State Highway 1. " Instead it refers to consistency with General Plan policies. Development within the City's Urban Reserve is expected to be consistent with the General Plan, so this change provides little additional guidance to decision makers. The City's Quantified Objectives assume development of faculty and staff on sites H-8 and H-9 and staffs suggested wording will not preclude consideration of faculty and staff housing on other sites. Staff recommends more specific wording to read as follows: 8.2.8 Encourage Cal Poly University to develop faculty and staff housing on sites designated as H-8 and H-9, located on State-owned land along Highway 1. 8.2.9 Encourage Cuesta College to explore opportunities and strategies for the development of student housing on the Cuesta Campus to meet both existing and future needs in order to lessen pressure on City housing supply and transportation systems. Staff response: O.K. It is consistent with Council's wording from March 1. 8.2.10 Disperse special needs living facilities throughout the City rather than concentrate them in one district. Staff response: O.K. It is consistent with Council's wording from March 1. Ih/UcitycounciUccmemo3-11-04 RED FILE MEETING AGENDA RECEIVED DATE,(* ITEM # MAH 16 2004 San Luis Obispo Chamber of Commerce SLO CITY CLERK 1039 Chorro Street • San Luis Obispo, California 93401-3278 (805) 781-2777 9 FAX (805) 543-1255 • TDD (805) 541-8416 David E. Garth, President/CEO March 16, 2004 .- SmaL D 1-:<;0 U NCL �DD DIR 21CAO 2�FIN DIR ,B'ACAO FIRE CHIEF ATTORNEY -ePW DIR Mayor Dave Romero and Members of the City Council aCLERKIORIG -Lf POLICE CHF _1-DEPT HEADS ;REC DIR City of San Luis Obispo :? UTIL DIR 990 Palm St. ? [YH R D In, San Luis Obispo, CA 93401 Re: Draft Housing Element, Inclusionary Housing Requirement, Table 2 and 2A Dear Mayor Romero and Council Members: Several of the proposed changes to the inclusionary housing requirement create concern among our members and our Board of Directors agreed at its meeting this morning, to request you carefully consider the consequences, some of which may be unintended, of significantly increasing in-lieu fees. First, on the residential side of the Table 2, for development projects in the city limits, raising the in-lieu fee from 5% to 10% of building valuation is simply too large an increase and places a significant burden on the landowner/developer who may not have a suitable property or lot on which to build the ADU's but who may have a desirable project based on other criteria. Since increasing affordable housing stock and/or the funds to provide it is the goal of our inclusionary housing policy, doesn't it seem more practical to have a fee that is reasonable? On the commercial side, to go from 2% to 10% of building valuation for the in-lieu fee will certainly sound the death toll on most commercial development and have the unintended consequence of producing no affordable housing or monies for housing. This was the thinking of a City Council appointed task force in the late 90s that studied the feasibility of raising the fee from 2% to 5%. That group, representing a cross section of the community, concluded that 5% would stifle development while 2% could be absorbed by the developer while at the same time put money into the housing program. This rationale is still true in today's marketplace. As it stands now, fees for commercial development are significant. A large increase in the in-lieu fee could close the door on e-mail: slochamber@slochamber:org 9 websites: www.slochamber.org www.visitslo.com r r projects like Costco and Court Street that promise to bring significant revenue to the city. It will also discourage expansion of existing, local businesses such as Stanley Motors and Kennedy Club Fitness. In order to have a vibrant community, it is necessary to have economic vitality and an 8% fee increase places that in jeopardy. It could well bring an end to the hoped for Airport Area Annexation which the city has been working on for many years. As landowners compare the cost of doing business in the City or developing in the County this raise to 10% would most certainly tip the scales in the direction of the County. To look at it another way, existing commercial properties would immediately increase in value by 10% without adding anything to the local economy, either for housing or for business interests. Finally, regarding Table 2A, the idea of an adjustment factor is one that warrants additional review but is not ready for adoption at this time. We would ask that you allow an opportunity for sufficient study of the most effective way to implement this concept. Thank you for considering our opinion on these points and for the many hours of effort that you have given to reviewing and refining the Housing Element. Sincerely, aura Murphy Chairperson of the Board cc: Ken Hampian, CAO John Mandeville, Community Development Director Mike Draze, Deputy Director of Community Development Shelly Stanwyck, Economic Development Manager RED FILE MV COUNCIL FING AGENDA - coo DIR TEM # � JZ(CAO �=,N ORDATE'77Bf�.t-- ACAO =IRE CHIEF ATTORNEY - P DIR Neighborhoods North of Foothill NNOF .�CLERK'ORI c .y'POUCE CHF A California Nonprofit Public Benefit Corporation PT HEAD .0 RTC DIR P.O.Bog 13023,San Luis Obispo CA 9340 eHR DIR 80 542-9554 RECEIVED MAH 0 9 2004 March 8, 2004 $LO CITY CLERK To: Honorable Mayor Dave Romero and Members of the City Council From: Ira Alpert,President,Neighborhoods North of Foothill Regarding: Draft Housing Element Policy 8.2.4-8.2.9 The City Council action Monday, March 1, 2004 on the Draft Housing Element Policy 8.2.4 is a cause of concern to Neighborhoods North of Foothill as it is presently worded. After the meeting we spoke to Jeff Hook about our concern and he sub- sequently suggested an alternative wording of the policy. We find his proposed version also unacceptable. We offer for your consideration substitute wording of Policy 8.2.4. (see Attachment.) This does require renumbering the policies that follow it. .Our rationale for this wording is as follows: 1. 8.2.4 as amended lumps together student housing at Cuesta and Cal Poly as well as faculty/staff housing for Cal Poly. The three are disparate elements and should be treated separately since each has different needs and actions. A. Cal Poly has on-campus housing for 3500 students at present and has committed to building more. However the plans for the Student Housing North project have been suspended and to date there has been no alternative announced. With the prospect of a cut back in enrollment because of the State's financial crisis, the University may argue that the need for campus housing has diminished. However,even should enrollment be cut back to 17,000 students for September 2004,there would still be 13;500 students needing housing in the community. B. Cuesta has no campus housing to strengthen. Cuesta needs to begin a program from scratch. They need to identify the land, water and financing sources to make it happen. C. Faculty and staff housing for Cal Poly is still in the planning stages, thus not yet ready for strengthening. Since the University refuses to place these projects on the core campus, they will impact local neighborhoods. Inasmuch as the University will act at its pleasure, Cal Poly should be encouraged to make sure that their projects are consistent with City General Plan policies. 2. There is no need to mention"state land"or"state-owned property such as along Highway L" What needs to be stated is the sincere request that whatever the University does is consistent with the City's General Plan. 3. The Cal Poly Housing Needs Study is at least five years old, does not apply to either Cuesta or Cal Poly faculty-staff housing and is best left out of the City's policy statement. We believe our proposed wording more accurately reflects conditions and can better guide decision making than that devised by the Council on March 1' or that proposed by Mr. Hook. By beginning 8.2.8 and 8.2.9 with verbs it makes them consistent with the preceeding policies. We urge you to give our recommendations your careful consideration. Joan Lynch(at 542-9554)or I (at 547-7025x100) would be happy to discuss these subjects with you. Sincerely yours, ZG Ira Alpert, President Neighborhoods North of Foothill Attachment of March 8, 2004 Proposed Changes to Housing Element Policy 8.2.4 et seq. I 1 � ATTACHMENT March 8, 2004 PROPOSED WORDING CHANGES TO 8.2.4 et seq. 8.2.4 Encourage Cal Poly University to continue to develop student housing on campus to meet both existing and future needs in order to lessen pressure on City housing supply and transportation systems. 8.2.5 Strengthen the role of on-campus housing by encouraging Cal Poly University to require entering freshmen students to live on campus during their first year. 8.2.6 Locate fraternities and sororities on the Cal Poly University campus. Until that is possible, they should be located in Medium-High and High-Density residential zones near the campus. 8.2.7 Encourage Cal Poly University to develop faculty and staff housing which is consistent with City General Plan policies. 8.2.8 Encourage Cuesta College to explore opportunities and strategies for the development of student housing on the Cuesta campus to meet both existing and future needs in order to lessen pressure on City housing supply and transportation systems. 8.2.9 Disperse special-needs living facilities throughout the City rather than concentrate them in one district. RECEIVED RED FILE MAR 0 o 2004 MEETING AGENDA • • abitat for Humanity SLO CITY CLERK DATO ITEM #�.�U H for San Luis Obispo County Post Office Box 613 San Luis Obispo, CA 93406 2146 Parker Street #A2 805-782-0687 hfhslocoC&kcbx.net, www.kcbx.net/—hfhsloco 1 'n March 2, 2004 i COUNCIL ADD DIR f, CAO SIN DIR Dave Romero �ACAO SIRE CHIEF ATTORNEY y'7,IPW DIR Mayor CLERK/ORIG OUCE CHF City Hall ❑ DEPT HEADS 2RREC DIR San Luis Obispo, CA 93401 L ;:;,UTIL DIR _ HR DIR Dear Mayor Romero, I am writing to you on behalf of the Board of Directors of Habitat for Humanity for San Luis Obispo County. We encourage you to support the updated City Housing Element now under consideration. We believe that, while the Element might benefit from some minor additional"tweaking", its basic policies and programs are sound and merit your endorsement. Habitat for Humanity is a non-profit, volunteer-based organization that builds homes for and with very low-income families. That is households making between 25%and 5001c of the median income for the county. The families contribute"sweat equity" and hold no- interest mortgages from Habitat to become homeowners. Very low and low-income families have great difficulty finding decent housing in our county. Habitat for Humanity, like other non-profit builders and housing providers, recognizes that only with support from our community as a whole—goverment, business, and residents—can we hope to make a dent in the need so that the very low and low- income workers who provide so many important services to all of us can afford to live among the people they serve. Habitat is pleased that the updated Housing Element provides incentives to build smaller, compact dwellings; that it favors mixed-use development and changes in zoning to allow denser development and infill; and that it commits the City to actively seek Federal and State grants, loans, etc. to provide affordable housing. We applaud the increase in in-lieu fees for inclusionary housing, but our major concern is an inclusionary policy that works— that really gets the housing for low and very low-income households built. We can't tell you exactly what that policy should be, but higher in-lieu fees for large dwellings might be one way to both increase the housing fund and encourage builders to build smaller, more affordable units. We commend the City for supporting the countywide Housing Trust RECEIVED Dnp 0 9 2 04 s�O CITY COUNCIL Fund. All of these policies and programs, if implemented, can help relieve the housing burden for very low and low-income households by creating more housing they can afford. Habitat for Humanity is also pleased to see support for the intermixture of housing affordable to various economic groups and the requirement to include land zoned for affordable housing in Specific Plans for the Expansion Areas. Integrating affordable housing within neighborhoods of market-rate housing is vital if we hope to avoid stigmatizing neighborhoods and the residents who live there. Economic segregation can only weaken our community as a whole. While we were disappointed that some of the fees waived for very low and low-income housing in the Housing Element draft were reinstated in the final document, we recognize that the City's financial problems make it difficult to forego these fees. We wish the City well in its efforts to seek new funding sources to help defray City development review and impact fees for developers of affordable housing. We believe that this update is a step in the right direction. Building smaller, compact housing near jobs and services and in economically mixed neighborhoods is important to building strong communities that include all members of our society. Habitat for Humanity will be watching to see that the policies and programs in the Housing Element are implemented so that we can start to do this. Sincerely, 1�v Q444�-, Mary Von Achen President J-�Va it^ RECEIVED • d00%b e - MAR 15 2004 Children's SLO CITY CLERK Services Network T CIIYQr rc;.: I ,: ( SAN LUIS OBISPO COUNTY r' ''� V.Ji�t'U Www.co.slo.ca.us/csn March 3, 2004 MAR I 0 2004 John Mandeville,.Director COMMUNITY DEVELOPMENT Community Development Department LELAND W.COLLINS,chair City of San Luis Obispo Department of Social Services P.0.Box 8119 P.O. Box 8100 San Luis Obispo CA 93403-8119 -Luis Obispo, CA 93403 RED FILE ; ME ING AGENDA NETWORK COUNCIEMEMBERS Dear Mr. Mandeville: DATE ifs ITEM # 0 Asset Development Network Board of Supervisors(Ex-officio) At our January 22, 2004 meeting, the Economic Self-Sufficiency Board of Supervisors Appointees California Polytechnic State university Partnership (ESP) passed unanimously a motion to commend Childcare Planning Council City Administrators City of San Luis Obispo for the excellent planning work exhibited , Communications Committee Chair by the draft-General Plan Housing Element, with particular Community Partnership Committee Chair emphasis on affordable housing. The problems of finding housing County Administrative Officer(Ex officio) County Counsel(Ex officio) are particularly frustrating for the low-income clients seen by our County Superintendent s Court Appointed SpecialAdvocates(CASA)l -social and human services agencies. Weare encouraged that Voices for Children the City both recognizes the Housing crisis and sets forth a Criminal Justice Administrators'Association comprehensive solution. Cuesta Community College Department of Social Services District Attorney Our group is comprised of representatives from social service .Drug and Alcohol Services(Behavioral Health Services) Economic Opportunity Commission(EOC) agencies, human services programs, employment/training Economic Self-Sufficiency Partnership Chair resources and other programs (housing, transportation) that Education and Training Committee Chair El Paso de Robles School(CYA) coordinate to move our clients toward self-reliant lives. The Family Care Network,Inc. combination of programs found in the draft plan will work together Poster Parent Association to increase affordable housing as a "toolbox" of mechanisms to Housing Authority of San Luis Obispo g . Integrated Services Committee Chair encourage development to meet the needs of all of'your Juvenile Justice Commission Juvenile Justice Coordinating Council Chair residents. We hope you retain.all 'programs inclusionary housing Latino Outreach Council requirement, secondary residential units, city housing fund, League of Women Voters Literacy Council impact fee modification and the others that will assist in housing Mental Health Services(Behavioral Health services)- persons with special needs and very low income. Ministerial Association(s) - Needs Assessment Committee Chair Private Industry Council In addition, please.consider participating in the San Luis-Obispo Public He DepartmelthDepart County Housing Trust Fund, a project:which will establish an Public Health DeparMent Public Policy Committee Chair ongoing source of funds for affordable housing within the city and Restorative Justice Steering Committee Chair county. San Luis Obispo Child Abuse Prevention Council (SLO-CAP) School District Superintendents . And our compliments again on constructing a vital and Sheriff's Department much-needed response to the affordable housing crisis. Special Education Local Planning Area(SELPA) p g Superior Court(Juvenile Court Judge/Commissioner) Transitions/Mental Hearth Association. Sincerely, Tri-Counties Regional Center r United Way 3"COUNCIL -CCDD DIR f XCAO FIN DIR Julia Miller,Network Coordinator ,�ACAQ $FIRE CHIEF jmiller@co.slo.ca.us J et Amanzio, Committee Chair ATTORNEY _ PW DIR ' ep--P1 CLERK/ORIG .ice POUCE CHF D.�j T EADS. fRECDIR P.O. Box 8119 _ i'rJ7v�— m ZHR DIR fa UTIL DIR .__ - - San Luis Obispo,California 93403-8119 ��_ 805/781-1847 Fax 805/788-2560