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Home My WebLink AboutSS4 - Review of Draft Housing Element - PowerPoint44 June 22, 2021 Item No. SS4 Draft Housing Element Update City Council Study Session June 22, 2021 regia nvusing lNeeo A v Income Category nay nvusing lNeeo f Q V A1 A X of Area Median Income (AMI) RH NA Allocation (Housing Units) Notes: (1) Based on percentage of Orange County Median Family Income (MFI), updated annually.The 2020 MFI for a four -person household is $103,000. Latest Council Direction ✓ City Council Direction June 8,2021 o Staff presented three options for consideration o Develop alternative between Options I & 2 • I ,000 -unit ADU assumption • Banning Ranch — 1,475 (+100) units • Coyote Canyon — 1, 100 (+220) units • Fewer affordable units in Airport Area, or more equitable distribution • Larger buffer than 5% • Consult with owners of Banning Ranch and Coyote Canyon Slide 2 Banning Ranch o Spoke with Banning Ranch, LLC, Conservancy, and Trust for Public Lands o Trust for Public Lands is in escrow to purchase o Possible deed restriction to eliminate development thereby eliminating opportunity site Slide 3 Banning Ranch o Once acquired,Trust for Public Lands intends to deed to a public agency (i.e., County of Orange) o County of Orange item in closed session today o County already has 1,000 affordable units planned in the current Housing Element o County may assign RHNA units; City would be required to take those added units, if annexed o Entirety is within City's sphere of influence Slide 4 r` 466.1 k, County City Par Coyote Canyon o Talked with Tait &Associates on affordability and density o Exploring possibility of more acreage than currently assumed (22 acres) o Very receptive to producing an appropriate amount of affordable housing o Desire to collaborate with City on master planning o Interested in 60 DU/AC and 35% affordable Slide 6 New Option "A" Redistribution of Affordability • Fewer affordable units in Airport Area • 55% affordability in most areas • Equitable redistribution Slide 7 Revised Affordability Total r d.i Scenarioir - Focus MOEI AreaStrategies Assurned 1- TotaiNetUnits Net Units TotalNetUnits rd'(Above Total Net Units Moderate) Toto I Net 110 Inventory % RedevelD Area (A)AirportArea 165 12% 55% 45% 10% So 445 99 445988 (B) West Newport Mesa Area 48 24% 55% 45% 10% 40 209 46 209 464 (C) Dover -Westcliff Rezone 24 24% 55% 45% 10% 40 97 19 87 193 Strategies (D) Newport Center Area 163 1296 5596 AS% _0 SD 441 98 441 986 (E) Coyote Canyon Area 22 100% 35% 25% 10% 60 330 132 858 1,320 (F) Banning Ranch : 30 100% 35% 25% 10% 50 369 143 959 1,475 • Fewer affordable units in Airport Area • 55% affordability in most areas • Equitable redistribution Slide 7 New Option "A" RHNA ALLOCATION 29386 1,050 7,409 4,845 Accessory Dwelling Units 680 300 20 1,000 Pipeline Projects, 5th Cycle Sites 120 348 1,511 11979 Rezone strategies 1,880 542 2998 E5420 Total Development Potential 29680 19190 49529 89399 Surplus (Buffer) 294 140 39120 39554 Percentage Over Need 12% 13% 221% 73 Summary of Options RHNA ALLOCATION (4,845) Accessory Dwelling Units 334 11000 %000 11000 Pipeline Projects, 5th Cycle Sites 2,682 1, 979 11979 11979 Rezone Strategies 69873 5,038 59420 59615 Total Development Potential 99889 89017 89399 89594 Low/Very-Low Buffer 20% 5% 12% 17% Moderate Buffer 22% 5% 13% 22% Total Surplus Units 59044 39172 554 39749 Total Percentage Over Need 104% 65% ;357 '77% Slide 9 New Option "B" Redistribution of Affordability • Fewer affordable units in Airport Area • 40% total affordability in most areas • More equitable redistribution Slide 10 (A) Airport Area Inventory Area 165 % Redevelo 17% 40% Low/VL 33% % Mod 7% Assumed Density 50 Total Net Units Total (LowVeryLow) 462 Net Un (Moderate 98 Total Net Units (Above Moderate) 84DF Total Net Units (B) West Newport Mesa Area 48 24% 4D% 35% 595 50 2D3 29 348 Rezone (C) Dover -Westcliff 2D 24% 4D% 30% 10% 511 73 24 145 Strategies (D) Newport Center Area 163 17% 4D% ??"- 795 50 458 97 833 1,388 (E) Coyote Canyon Area * 22 BD% 35% 25% 1096 60 264 146 686 1,056 (Fj Banning Ranch * 30 1111196 411% _ _ 10% 50 443 148 885 �,47 • Fewer affordable units in Airport Area • 40% total affordability in most areas • More equitable redistribution Slide 10 New Option "B" RHNA ALLOCATION 29386 1,050 7,409 4,845 Accessory Dwelling Units 680 300 20 1,000 Pipeline Projects, 5th Cycle Sites 120 348 1,511 11979 Rezone Strategies 1,902 501 3737 E 6140 Total Development Potential 29702 19149 59278 99119 Surplus (Buffer) 316 99 39869 49274 Percentage Over Need 13% 9% 275% 88% Slide 11 Summary of Options RHNA ALLOCATION (4,845) Accessory Dwelling Units Pipeline Projects, 5th Cycle Sites Rezone Strategies Total Development Potential Low/Very-Low Buffer Moderate Buffer Total Surplus Units Total Percentage Over Need F 1(55%) 334 11000 1, 000 21682 11979 1,979 69873 51038 99889 89017 20% 5 22% 5 59044 39172 104% 65 (40%) 11000 1,979 59420 6,140 1 F9399 9,119 12% 13% 13% 9% 39554 4,274 73% 88% 11000 11979 5,615 89594 17% 22% 3,749 77 Slide 12 What is "Inclusionary Housing?," INCLUSIONARY HOUSING DEFINED: • A local ordinance (law) that requires apre-determined share of new housing construction be affordable to persons of lower and/or moderate incomes • Can apply to for -sale and/or rental housing • Helps to provide housing for lower income households in high-cost markets Slide 13 Inclusionary Housing Considerations "ONE SIZE DOES NOT FIT ALL" • Too high of a percentage may male some projects financially infeasible • Without inclusionary, project sites from list can develop without producing any affordable units ✓ Larger buffer necessary to avoid rezoning additional sites Slide 14 Our Past Inclusionary Ordinance NEWPORT BEACH: • 15% of units (all for -sale projects) provided as follows: • Very -low and Low-income as rental units • Moderate income as ownership units • Projects with 50 units or less can pay in -lieu fee ($26,125 per unit, adjusted annually) • Projects with 51 units or more, can choose one option: • Construction of units on-site or off-site • Off-site renovation and conversion of existing units • Land dedication • Adopted to meet a larger 4th Cycle RHNA (2006), rescinded when 5th Cycle RHNA was 5 total units (2013) Local Examples SAN CLEMENTE: 15% of units (projects with six or more units) Rental: 7.5% very low income / 7.5% low income Owner: 3% very low income / 4 % low / 8% moderate income Provided on-site/off-site/in-lieu fee ion SpN Slide 16 Local Examples (cont.) IRVINE: Largest producer of affordable units in Orange County 15% of total units (all projects) 5% very low income / 5% low income 15% moderate income Menu of options to provide • In -lieu fees • Land dedication • Transfer of ownership Provided on-site/off-site/in-lieu fee Considering increase to 20% 1 OF I"? L01, Slide 17 Local Examples (cont.) HUNTINGTON BEACH: • 10% of total units (projects with three or more units) • Rental: 10% low-income households • Owner: 10% moderate income households • On-site / Off-site options • In lieu fee option for more than 30 units • Maintains in -lieu trust fund Slide 18 Summary of Others' Requirements Options Units AL Percentage (Y/N) Irvine All units 15% (2096) Y 5% very low / 5% low / 5% Moderate Huntington 3+ units 10% Y Rental units: low income / For Sale: moderate Beach income San Clemente 6+ units 15% Y Rental: 7.5% very low 17.5% low For Sale: 3% very low / 4% low / 8% moderate Carlsbad 7+ units 15% Y Units not to exceed 80% of MFI for County Encinitas 7+ units 10-15% Y Rental: 15% if low, 10% very low Owner: 15% if low, 10% very low Y Rental: 20% very low, low or moderate Pasadena All units 20% Owner: 5% very low, 5% very low or low, 10% very low, low or moderate Solana Beach 5+ units 15% Y Rental: 15% very low and/or low Owner: 15% Beverly Hills 10+ 10% Y 10% very low, low or moderate Proposed Inclusionary Policy POLICY ACTION 1K: INCLUSIONARY HOUSING • Two Step Process: 1. Adopt interim Council Policy of 15% affordable — 6 months (or do we want to require 20%?) 2. Study and adopt inclusionary Ordinance — 36 months Slide 20 SEW PART O mm niWorkshopo u t c�tIFORNNP • June 21, 202 I ,Virtual Public Workshop • Inclusionary housing, Housing overlays,ADUs • Revised scenario (Option A) • 41 attendees (excluding staff and consultants) • Questions/comments about: ■ Banning Ranch and why it is included ■ ADUs and how they are regulated ■ Airport Area and its existing businesses ■ Timing of the Circulation Element/EIR ■ Process moving forward Slide 21 DATE Tentative Schedule 1611- TASK Environmental Impact Report begins City Council study session modified housing scenario Virtual community workshop on overlays, inclusionary,ADUs, and scenario City Council study session modified housing scenario Kimley-Horn to deliver updated Draft Housing Element to City City Council study session on updated Draft Housing Element Draft Housing Element submitted to HCD for 60 -day review Airport Land Use Commission (ALUC) hearing City Council Meeting - Notice of Intent to Override ALUC 45 -Day public comment period open for EIR Housing Element Update Advisory Committee meeting Planning Commission public hearing City Council public hearing,ALUC override, and adoption of Housing Element update City Council Considerations ❑ Is Option "A" or "B" acceptable for us to move forward with? ❑ Should we make any changes to Policy Action 1 Kim Inclusionary Housing.? Staff will return to City Council on July 13 with an updated draft of the Housing Element, including the revised scenario. Slide 23 44 Questions.? Thank you! Seimone Jurjis, Community Development Director Jim Campbell, Deputy Community Development Director Ben Zdeba, Senior Planner Dave Barquist, Kimley-Horn & Associates GPUpdate@newportbeachca.gov Airport Area Environs Newport Housing Element - 6th CYele April 20211 DRAFT Site Inventory: Airport Area Environs LEGEND Inventory Pipeline Projects -- City Boundary Key Map Irvine ILL ALI50 Y EMER_ - Feet NORTH 0 500 1,000 _*3M\ [ UTA 9I•]itMv[a4,"*rio Dover-Westcliff NewportHousing Element -6th Cycle April 2021 1 DRAFT Site Inventory: Dover -Westcliff Area LEGEND 5th Cycle Sites Inventory Pipeline Projects — — City Boundary Key Map ee l Irvine AMMMMMK=== Feet NORTH 0 500 1,000 Newport Center Newport Housing Element - 6th Cycle April 2021 1 DRAFT Site Inventory: Newport Center Area LEGEND Inventory Pipeline Projects -- City Boundary Key Map I a C R YS IAL LAGUNA'A V OVE� ALI S0,V JfMEPkLG - MMMMMM=== Feet NORTH 0 500 1,000 •1'L•1 KI 1Lvl* ,1�7 — _� .. - . . .. I ... I . . / — . . . . . . . . . . . No t.. W Banning Ranch Newport Housing Element - 6th Cycle a—ll inn I nano Site Inventory: Banning Ranch Area LEGEND Inventory �— City Boundary Key Map - mmmmmm::� Feet NORTH C 500 1,000