Loading...
HomeMy WebLinkAboutSS2 - General Plan Housing Element Update0(9 CITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC DEVELOPMENT PLANNING DEPARTMENT 3300 NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 (714) 644 -3200; FAX (714) 644 -3250 Date: Agenda Item No.: Staff Person: REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Update of General Plan Housing Element SUGGESTED ACTION: Discussion and Direction to Staff BACKGROUND: April 26, 1999 SS2 Christy Teague (949) 644 -3207 Council member Debay requested a discussion of the Housing Element update at the City Council meeting of March 22, 1999. Cities have not been required to update housing elements since 1992 because the State has not funded the Regional Housing Needs Assessment (RHNA) process since that time. The funding was reinstated recently and the RHNA work is nearly finished. Cities are required • to submit updated housing elements to the State by June 30, 2000. HOUSING ELEMENT REQUIREMENTS Housing Element Update State planning law requires cities to adopt housing elements that address regional needs for housing affordable to all income levels. The time period to be covered in the next Housing Element update is from January 1, 1998 to June 30, 2005. It must be submitted to the State Department of Housing and Community Development by June 30, 2000. Cities are required to include the housing need numbers produced by the RHNA process in their housing elements as goals. Although cities are not required to spend their funds to develop affordable housing, the Housing Element must include policies and programs that facilitate and make possible production of the needed housing units. The required components include: an assessment of housing needs; an analysis of household characteristics; an analysis of existing assisted housing developments that are eligible to change from low- income housing uses during the next 10 years due to expiration or termination of agreements; a statement of the community's goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing; a program which sets forth a five -year schedule of actions to achieve the goals and objectives of the housing element; identification of adequate sites for housing; assistance • in the development of adequate housing to meet the needs of low and moderate - income households; removal of governmental constraints to the maintenance, improvement, and development of housing; programs to conserve and improve the condition of the existing affordable housing stock; -1- Housing Element update must include a report on progress in achieving the goals of the previous Housing Element. As preparation for meeting these requirements, staff suggests the City Council begin discussing affordable housing needs, the affordable housing requirements of the CIOSA and • One Ford Road development agreements, and potential programs to meet the City's housing needs. Regional Housing Needs Assessment (RHNA) The RHNA is a state - mandated estimate of housing needs that cities are required to use in housing elements. In the past, SCAG has handled this process for the Southern California region. For the current update cycle, the Orange County COG has chosen to take the lead with the County, using SCAG housing projections for the County. These overall county projection numbers are distributed among jurisdictions based on household growth, vacancy need, and replacement need. This process results in an assignment of the number of housing units to be produced in each jurisdiction during the planning period of January 1, 1998 to June 30, 2005. Because City staff previously worked with the OCCOG to develop population projections, housing needs in Newport Beach are based on a projection in which the City has confidence. The City of Newport Beach has been assigned a need of 498 dwelling units within the planning period of January 1, 1998 to June 30, 2005, as shown on the attached RHNA summary of construction need for Orange County. The next step in the RHNA process is for the total number of housing units needed to be broken down by income category, providing a "fair share" number of affordable housing needs within each jurisdiction. In the last housing element cycle, Newport Beach's affordable housing need was 20% of the total housing units recommended. This would result in a need for approximately 100 units for low- income households in the current cycle. • CIOSA The Circulation Improvement and Open Space Agreement ( CIOSA) was approved by the City Council in 1992. CIOSA granted entitlements for several properties held by The Irvine Company, including entitlements for 861 market rate housing units. Because CIOSA is silent on a specific affordable housing requirement, staff believes the 20% requirement of the Housing Element should be used, resulting in an obligation to provide 172 affordable housing units. The City and The Irvine Company have discussed the development of senior housing facilities at Newport Village in Newport Center and also at Bayview Landing. Agreement could not be reached on the Newport Village site, and The Irvine Company has not pursued the Bayview Landing site. All of the market rate units entitled by CIOSA have been built. Staff believes the Housing Element update will be stronger if the City has a plan from The Irvine Company to meet its affordable housing obligation, which will demonstrate progress in implementing the existing Housing Element. Ford Agreement The Ford development agreement approved in 1995 specified that Ford's affordable housing requirement is 15% of the 404 units, or 61 units. In lieu of constructing affordable housing units, the developer paid the City $5,000 for every market rate unit developed, for a total of $2,020,000, to facilitate affordable housing in Newport Beach. These funds were received in May of 1997, and have been held in an account while the City has explored the best use of these funds for affordable Page 2 housing goals. Since negotiations with The Irvine Company on use of these funds for a project at • Newport Village have terminated, staff believes the City should consider other uses of these funds so that a plan can be included in the Housing Element update. POTENTIAL HOUSING PROGRAMS Private Sector Development of New Affordable Housing Units with City Assistance The construction of new housing units may be the most feasible way to meet the numerical RHNA fair share goals. This could be an option for the Ford money available for affordable housing, but may be difficult for the City to accomplish due to the lack of available land in Newport Beach. The Irvine Company may be in the best position to construct new units because they have available land and are experienced in housing development. Negotiate Extensions of Expired and Soon -to -Expire Affordable Housing Agreements The Irvine Company owns most of the projects with affordable housing agreements in Newport Beach. In the last five years, the agreements have expired on 294 of these units. There are an additional 17 units due for termination. If extensions are negotiated, these units would not be eligible to apply toward the "fair share" goals of the RHNA, but they would meet the requirement of "conserving and improving the condition of the existing affordable housing stock" set forth in the state law. Saving affordable units soon to be converted to market rate units is a possibility for The Irvine Company obligation and for use of the Ford money. • Rehabilitation of Existing Units and Conversion to Affordable Housing Units • There are a few projects potentially in need of rehabilitation assistance in Newport Beach. Rehabilitated units do not count towards the RHNA goal unless units are "unfit for human habitation prior to their rehabilitation" and "at imminent risk of loss to the housing stock," among other criteria. However, this strategy does meet the requirement of "conserving and improving the condition of the existing affordable housing stock" set forth in the state law, as well as improve the neighborhood in which the units are located. This is a possibility for use of the Ford money designated for affordable housing. Community Development Block Grant Funds In the mid- 1990s, during the last housing element period, CDBG funds were successfully used to assist development of affordable housing. The City has focused Community Development Block Grant funds on Peninsula revitalization in recent years, and the City Council has given that direction for the upcoming fiscal year. The focus of future CDBG funds could be on affordable housing if the final RHNA numbers and Housing Element analysis show the need cannot be met with other resources. Page 3 CONCLUSION The issue of affordable housing must be addressed by the City. The State requirement including "fair share" affordable housing units must be incorporated into a comprehensive Housing Element of the General Plan over the next year. There are outstanding obligations to provide affordable housing units by The Irvine Company through the CIOSA Agreement and also by the City for use of the Ford funds accepted upon receipt of their housing entitlements. Staff is seeking City Council discussion and direction regarding the alternatives for meeting affordable housing goals in Newport Beach. Submitted by: SHARON Z. WOOD Assistant City Manager Prepared by: CHRISTY D. TEAGUE, AICP Senior Planner l� Attachments: Regional Housing Needs Assessment Summary Letter on Affordable Housing from Julie Mirrow Dated March 13,1999 Page 4 • • • L J • d O Z N C O p V d1 � C N O C � O +C U m wm C_ iC �m -s a C O (D f- In D) M N O r- D) o O V D) (D r O O O V f- W V (D Mr M O O n N r n 0 m m O O r O O M W _ _ _ D) m m N O O V m f- m D) In r w m O M (D M M V N N r N O D) In M r V r In O a0 D) th a0 Gp V N (D r N V 1� (n In C) , U U y r N N O r tD N r tD cli ` d OZ 0 0 U ++ V (O N M M r r (D N N t (D V (D f- N O (7 V (O (O M M M r V r N In N D) D) C y D) t D) D) r N V r r M N M r r r [7 [7 V 0 M M D) In t`') r f- O W In M r r M O O) O V 0404N, f- V O W (O r D) M N r r co E L (D CD (.f y lC Z G d T Of (O O (O O) IA m M (O N O W N V M V O M W M O (O M O r M N V (D C> O V m r m q, O W r r O) 1 O) W O) (O (O w 0 O (O U) V O O 1� N O) U ,O U? (D N r r N N CO r V (D N N r r r O) C m N () y Z R > O 0 O t+7 N M O V N M r O O f- O N M N M M W r M N V M W W r 0 W LO O w W 0 0 0 M W W W r r N W 0 V M V W N 0 f- M (D V f- r- O M W (D M 0� co r N O W W V N W 0 m r- N W W W 0 w r- V co N W N V r V O L ; O r r N 1-7 C O r- V) O 00 2 0 )C C7 C7 (+J Di In N V� (6 N N O C) V r m N O D) V N (� N N O C N (6 r iA r (D O N O OO O r N M CO r r r V V f- V r N r r th M V r N r� r r N N N (D 0 N r 0 0 x W D) CO N N (n (O D) M O C] O (D f- CO CO r- In O O In M r- M M O N CO M O N (n (O .O D) N O N In V w D) (D m N In r (D r (D w (D f- N M D) f- m r O w V w (`') N (D V M f- D) r (D (D r N N N V D) V r In M (D V 0 N N V In M a0 M D) O r O D) D) r f- 0 O V N N GO GO n c, f, N O � C) C) V � D N O D V i c O V GO O ( O( 7 In D) D) O p m r N M(D r V V f- V N M M V r r� r N N m N N 0 O x W M M (D O N D) V (D 0 (D M f- M f- N r- O m In In O In M N V 0 D) w (D M D) O (D (D r N M r O N V (D O M D) N V M M N r In r O f- N r- M (D r- N D) V .O D) (D f- m N m In In m O O m m w N M O O O r D) In (D In N r (n M f- In D) f- In In O co N N N GO V (n C7 f-- N (O r (D CO- V r D) r C5 D) V O N D) V GO O r (h O N r (n C) N L M D) r N M (D r r r V V f- V r N r r m m m r r r- r r N N r D) 0 C) co O 2 W O Z Z O J > W J N J 0 W Q F- W Y Q? a O Z Q M O y 0 Z x a Z, S cnz Z >ZSp WJ(7O W F-Mm Q W UQU YyZ O F- 0 Q W 7N_ZO(� -'Z� - Qm2Z>i2� 9 >F- nzz d' O n a�ywog WK �aaaaogzoWZ��anoZILE< J zaugwc~i»azM -ja ?xa»»wQyaZ��'�JZf >i g�� Z K 0 0 0 >- a a 0 Oa Oa Ya N Z Z Z Q Q m O O '7amm000OtL 0 0 aO aO zO > tLOS�JJJJJJJ° 0. cn cq 000E V I G,�t,4 MV4�" a' &j; - ot�1 G AA,44 /) / / r ? �rl!/JLL- 'T ii/c�,Zr� s 6, 4,1,i,4� S� q; � d,�v Z4-�L) 6ez"� - iD Iml r mkk e� 0 .tu�M4f�t F ' t on er �10 ft i-7u � Date —� - CoT Sent To: ayor CouncilMember anager — — -- ❑ Attorney---- - - - --- - - - -- -