HomeMy WebLinkAboutEPC 2017-04-05 Item 5.1 Staff ReportC I T Y O F M O U N T A I N V I E W
ENVIRONMENTAL PLANNING COMMISSION
STAFF REPORT
WEDNESDAY, APRIL 5, 2017
5.NEW BUSINESS
5.1 Annual Housing Element Progress Report (2015-2023 Housing Element)
RECOMMENDATION
That the Environmental Planning Commission (EPC) review and comment on the
2016 Annual Housing Element Progress Report.
PUBLIC NOTIFICATION
The Commission’s agenda is advertised on Channel 26, and the agenda and this
report appear on the City’s Internet website.
PURPOSE
The purpose of this item is to provide a status update to the EPC on
implementation of the City’s 2015-2023 Housing Element during the January 1
through December 31, 2016 reporting period.
BACKGROUND
Housing Element and Annual Progress Report
The Housing Element is one of the seven mandated General Plan elements. It is
the only General Plan element subject to mandatory review by a State agency, the
California Department of Housing and Community Development (HCD). The
Housing Element’s purpose is to examine the housing needs of residents, create
and guide City housing policy and programs, and identify locations to
accommodate the City’s Regional Housing Need Allocation (RHNA). Upon
review and certification of a Housing Element by HCD, local jurisdictions qualify
for State and Federal housing aids and grants.
Government Code Section 65400 requires cities to prepare an annual progress
report on Housing Element implementation, using forms and definitions adopted
by HCD. These reports are submitted to HCD and the Governor’s Office of
5.1
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April 5, 2017
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Planning and Research. They provide data on annual building permit activity,
overall progress in meeting the City’s RHNA, and status of Housing Element
program implementation.
RHNA
State law requires jurisdictions to provide for their fair share of regional housing
needs. Per Government Code Section 65584, HCD is mandated to determine the
Statewide housing needs, and provides this data to the Association of Bay Area
Governments (ABAG). ABAG is the Bay Area’s Metropolitan Planning
Organization and is responsible for assigning the Bay Area’s RHNA to each city
and county in the nine-county Bay Area. The local jurisdiction is not required to
construct these units; they are only mandated to provide opportunities for the
development of these units.
The RHNA allocation methodology assigns units by income category—
specifically, units serving very low-, low-, moderate-, and above moderate-income
households. Households are categorized in these income groups based on
household size and percentages of the Area Median Income (AMI). These income
limits are established annually by HCD. The City’s current RHNA allocation (for
2014-2022) is shown in Table 1 below:
Table 1—RHNA Allocation Numbers
Affordability by
Household Income Units
Very Low
0-50% AMI 814
Low
51-80% AMI 492
Moderate
81-120% AMI 527
Above Moderate
120%+ AMI 1,093
Total 2,926
ANALYSIS
As noted above, the annual progress report provides the State with information on
the City’s yearly building permit activity between January 1, 2016 and December
31, 2016 for housing units (see Table 2 and Exhibit 1, Tables A and B). The
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April 5, 2017
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progress report also provides Housing Element policy and program
implementation status (see Exhibit 1, Table C).
Several Housing Element implementation items are summarized below, including
key items completed near the end of the previous 2007-2014 Housing Element
period.
1. Residential Building Permit Activity and RHNA Allocation
In 2016, construction began on 502 new residential units (see Table 2 and
Exhibit 1, Tables A and B).
Table 2—Building Permits Issued for
New Residential Units Between 2015 and 2016
Affordability by
Household
Income
2015 Units
Provided
2016 Units
Provided
Total Units
to Date
% of RHNA
Allocation for
2014-2022*
Very-Low
0-50% AMI 0 17 17 2.1%
Low
51-80% AMI 9 109 118 24%
Moderate
81-120% AMI 0 0 0 0%
Above-Moderate
121%+ AMI 278 376 654 59.8%
Total 287 502 789 27%
* Running percentage of affordable units provided by the City between 2015 and 2016 for the
RHNA Allocation period from 2014 to 2022.
Recently, the City of Mountain View has continued to experience a very high
level of residential development activity. Between January 1, 2012 and
December 31, 2016, construction began on a total of approximately 2,572 new
residential units. In addition, approximately 1,357 net new residential units
were recently approved but are not yet under construction.
2. Housing Policies and Programs
The Housing Element addresses several key community housing issues,
including the lack of affordable housing and loss of older affordable units to
redevelopment. The City has been proactive in addressing these issues
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through adoption of increased affordable housing fees, the creation and
updates to the Tenant Relocation Assistance Ordinance, developing
partnerships with affordable housing developers, and other activities
discussed in Exhibit A and below.
• Affordable Housing Production
— Housing Impact Fees: The City Council increased the Rental
Housing Impact Fee from $10.26 to $17 per habitable square foot
and the Housing Impact Fee (commercial/retail/entertainment/
hotel) from $10.26 to $25 per square foot on December 9, 2014.
These fees, in addition to Below-Market-Rate (BMR) In-Lieu fees,
provide direct funding for affordable housing developments in the
City.
— Notice of Funding Availability (NOFA) Projects: The City Council has
continued to utilize City housing funds to support affordable
housing developments through the NOFA process. In 2016, the
City committed $36 million in housing funds to three projects with
233 units serving very low- and extremely low-income families,
veterans, and special-needs households. This included the
following affordable housing developments:
○ 779 East Evelyn Avenue (ROEM Development Corporation)—
the City has reserved $21.7 million for 116 units of family
housing targeting very low- and low-income households. The
project is anticipated to complete construction in summer
2018.
○ 1701 West El Camino Real (Palo Alto Housing)— the City has
reserved $8 million for 67 studio units affordable to extremely
low- and very low-income households. Forty-one (41) of the
units will be targeting chronically homeless or formerly
homeless veterans. The project is anticipated to complete
construction in fall 2018.
○ 460 North Shoreline Boulevard (MidPen Housing)—the City
has reserved $6.3 million for MidPen Housing to construct 50
new apartments at the existing Shorebreeze Apartments.
These units will be targeting low- and very low-income
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April 5, 2017
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households. The addition is expected to receive entitlements
in fall 2017.
— BMR Units: In addition to collecting housing fees to support
affordable housing development, the City has worked with
developers to include 5 BMR units (in numbers equivalent to the
Rental Housing Impact Fee) in a recent market-rate rental project at
801 West El Camino Real and 5 BMR ownership units at 1101 West
El Camino Real.
— Density Bonus: Between 2013 and 2016, the following four projects,
totaling 121 affordable units, were approved with the State’s
Density Bonus Law:
○ 1101 West El Camino Real (Regis Homes Bay Area)—a 52-unit
condominium development, including a 35 percent State
Density Bonus in exchange for 5 very low-income units.
○ 1998 Montecito Avenue (Stuart Welte)—a 17-unit residential
development, including a 2-unit State Density Bonus in
exchange for 1 very low-income unit.
○ 1701 West El Camino Real (Palo Alto Housing)—a 67-unit
affordable studio apartment development, including a 25
percent State Density Bonus that will accommodate 49 very
low-income units, 17 low-income units, and 1 low-income
manager unit.
○ 400 San Antonio Road (Prometheus Real Estate Group)—a
583-unit mixed-use development, including a 35 percent State
Density Bonus in exchange for 48 very low-income units.
The City’s funding leveraged nearly $100 million in other funding
sources, primarily tax credits and bond financing. It is likely that these
funding sources will continue to be used to produce subsidized rental
units to help meet RHNA requirements.
Throughout the 2015-2023 planning period, the City will continue to
consider opportunities and provide financial support to local subsidized
housing developments using local funds such as BMR In-Lieu fees, and
Housing Impact fees.
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• Tenant Relocation Assistance—In 2014, the City Council amended the
City’s Tenant Relocation Ordinance to increase the amount of tenant
relocation assistance required of developers and made more households
eligible for assistance. Households with an income of less than 80
percent of AMI are now eligible for the cash equivalent of three months
median market-rate rent plus $3,000 for special-circumstances
households. During the 2016 planning period, the City received
applications for assistance from 53 tenants associated with six different
development projects.
• Updated Zoning Regulations—In 2014, the City Council adopted three
new Precise Plans to implement the 2030 General Plan. This includes
two Precise Plans that allow higher-intensity residential/mixed-use
development. These areas will provide increased opportunities for
residential development in close proximity to commercial services and
transit. In 2015, the City began an update to the North Bayshore Precise
Plan which will study up to 9,850 housing units. In 2016, the City began
drafting the East Whisman Precise Plan, and is currently studying the
addition of new residential uses to this area. In 2016, the City also
updated the Companion Unit Ordinance to reduce development
standard restrictions, lower fees to encourage the development of
second dwelling units, and increase housing opportunities within the
City. Since this was adopted, four new companion units have been built
in the City, where previously the City averaged one new companion
unit a year.
• Other Programs—The City provides services and/or funding to support
a variety of programs targeting rehabilitation and maintenance of
existing affordable housing complexes, home-buying assistance,
outreach to residents/workers who may be eligible for subsidized
housing and programs, emergency resources, and mediation and fair-
housing services through Project Sentinel.
ENVIRONMENTAL REVIEW
This is an informational report on the Housing Element implementation, which is
not a project under CEQA and does not require environmental review.
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April 5, 2017
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NEXT STEPS
Staff will forward the 2016 Housing Element Progress Report to the City Council,
HCD, and Office of Planning and Research.
Prepared by: Approved by:
Alexi Wordell Martin Alkire
Assistant Planner Principal Planner
Terry Blount
Assistant Community Development
Director/Planning Manager
AW/7/CDD
825-04-05-17SR-E
Exhibit: 1. 2016 (Annual) Housing Element Progress Report