HomeMy WebLinkAboutHousing Element Progress Report AddendumCITY OF NEWPORT BEACH
PLANNING COMMISSION STAFF REPORT
10/4/2007 Meeting
Agenda Item No. 3
SUBJECT: Housing Element Progress Report Addendum
PLANNER: Brandon Nichols, Associate Planner
(949) 644 -3234, bnicholsCcD-citv.newport- beach.ca.us
RECOMMENDATION:
Review and forward the Housing Element Progress Report Addendum to the City
Council for final review.
DISCUSSION:
California Government Code Section 65400 requires the City to file an annual report
every October to its "legislative body," the State Office of Planning and Research
(OPR), and the State Department of Housing and Community Development (HCD).
The report is required to provide information on the status of the Housing Element and
the City's progress in implementing its programs as well as its progress in meeting
regional housing needs goals. The City must also report on its efforts to remove
governmental constraints to the maintenance, improvement, and development of
housing for all income levels.
As required by State Housing Element Law, staff completed a detailed Housing Element
Progress Report in October 2006. This report was reviewed by the Planning
Commission at the October 5, 2006, hearing. Consistent with state law at the time, the
report covered the 2005 -2006 fiscal year. New housing legislation has changed the
reporting period to the calendar year, thus requiring an addendum to the original report
that covers the period from July 2006 through December 2006. The purpose of this
report is to cover that gap period. The next report will be conducted in April 2008 and
will cover the 2007 calendar year.
Environmental Review
Not subject to CEQA, as the action is not a project as defined in Section 15378(b)(2) of
the Public Resources Code.
Prepared by:
SIGNATURE
Brandon i Ichols, Associate Planner
EXHIBITS
Housing Element Progress Report Addendum
10/4/2007
Page 2
Submitted by:
SIGNATURE
r
David Lepo, ing Director
1. Housing Element Progress Report Addendum
CADOcuments and Set dngslbnicholslDeskiopl2066.2006 Addendum.doc
Exhibit 1
Housing Element Progress
Report Addendum
3
CITY OF NEWPORT BEACH
HOUSING ELEMENT PROGRESS REPORT
ADDENDUM
July- December 2006
The Newport Beach Housing Element was adopted in July 2006. Since then, City
staff has been diligent in their attempts to implement the Housing Element's
goals and programs. This report evaluates these programs and outlines
attempts made to pursue program and goal fulfillment.
California Government Code Section 65400 specifically mandates that this report
provide the following information: (A) a review of the City's progress in fulfilling its
share of the Regional Housing Needs Assessment; (B) a complete detailed
status report on the implementation of each of the housing programs of the City's
Housing Plan; and (C) a review of actions and programs adopted to remove or
mitigate governmental constraints on the development of housing for all income
levels.
A. PROGRESS IN MEETING REGIONAL HOUSING NEEDS
(RHNA GOALS)
The Southern California Association of Governments (SCAG) prepared a
Regional Housing Needs Assessment (RHNA) to identify the housing need for
each jurisdiction within the SCAG region. SCAG, through the RHNA process,
assigned Newport Beach a certain share of housing units that it should provide
between the 1998 — 2005 planning period in an effort to satisfy housing needs
resulting from the projected growth in the region. To accommodate projected
growth in the region, SCAG estimated that the City needed to target its housing
unit production to accommodate 476 new housing units.
With the annexation of Newport Coast in 2001, the City agreed to transfer 945
units from the Orange County Regional Housing Needs allocation to the Newport
Coast area. This agreement was made since the Irvine Company committed to
the County to fulfill its allocation. However, since the County is still responsible
for issuing building permits for the area, the analysis on meeting the RHNA
5
allocation does not include the 945 Newport Coast units. Data from the County
of Orange regarding the number of issued building permits is forthcoming.
Due to proposed changes in RHNA methodology, jurisdictions in the SCAG
region did not receive new RHNA allocation numbers until July 2007. For the
purposes of this report, the RHNA numbers contained in the adopted Housing
Element (1998 -2005 Planning Period numbers) are used. The City is currently
working with HCD to certify the City's revised Housing Element and will also be
updating the Housing Element to incorporate the new RHNA numbers and other
statutory requirements.
The table below summarizes the need for housing, distributed by income,
calculated through the RHNA process for the 1998 -2005 Planning Period.
TOTAL RHNA Co4mucnoN(NEED'SY INOOM9
1998.2005
VERY LOW
Lip
MODERATE
ABOVE M. DERATE . • TO a
86
53
83
254 476
18%
11%
17%
53% 100%
The City Building Department maintains a detailed Building Activity Report for
each fiscal year. The report lists the total number of different types of
construction permits issued, as well as the number of demolition permits issued.
This data was used to create the following table illustrating the total number of
new additional units that were permitted from 1998 -2006.
TOTAL NUMBER OP Naw ADDITIONAL HOUSING" UNITS P .
1998 -2006
FIscAL YEAR
NEw UNITS
DEMOLISHED UNITS
TOTAL ADDITIONAL
UNIT&
1 T 6 MONIHS OF 1998
315
180
135
1998 -1999
1018
158
860
1999 -2000
742
258
484
2000 -2001
234
168
66
2001 -2002
159
130
29
2002 -2003
162
174
-12
2003 -2004
198
162
36
2004 -2005
329
170
159
2005 - 2006"
233
221
12
TOTAL
13390
1621
1769
"INCLUDES PERMITS ISSUED THROUGH THE END OF CALENDAR YEAR 2006
ki
The City issued a total of 1,757 new additional residential building permits during
the 1998 -2005 RHNA period. This number well exceeds the total 476 units
projected by SCAG. During the 2004 -2005 reporting period the City issued 159
permits for new additional dwelling units. 120 of the new units are a result of
building permits issued for the Bayview Landing Senior Affordable Housing
Project. With the exception of one "mangers unit' all of the 120 units are
designated for very low and low income seniors.
C 3 NdGRMWWOEETING R'S SHARE dF.. THE ft0Ot0&HOU8MQ NE8b5
AssEwmew D_uRING RHNA PERIOD 1998 -2005
VERY
Low
MODERATE
ABOVE
TOTAL_
LORI
I
MODERATE
PROJECTED NEED
86
53
83
254
476
TOTAL NEw UNITS.
24
95
0
1637
1757
PERMITTED
1198 -6/05
REMAININeNEED
62
-42
83
0
103
n
B. HOUSING PROGRAM IMPLEMENTATION STATUS
1.1.1 Improve housing quality and prevent
deterioration of existing
neighborhoods by strictly enforcing
building code regulations and abating
code violations and nuisances.
A pate with the Orange County
g Authority and Housing and
unity Development Division in
dministration of rehabilitation
and grants for low- and
rate - income homeowners and
rental property owners to encourage
preservation of existing City housing
stock.
1.1.3 Require replacement of housing
demolished within the Coastal Zone
when housing is or has been occupied
by very-low, low -, and moderate -
income households within the
preceding 12 months. The City shall
prohibit demolition unless a Coastal
Residential Development Permit has
been issued. The specific provisions
implementing replacement unit
requirements are contained in the
On -going
The Uniform Housing Code
is adopted and continually
enforced by the Building
Department and Code
Enforcement Department.
The Water Quality and Code
Enforcement Department
continually administers an
enforcement program to
correct violations of
municipal codes and land
use requirements.
A quarterly report on code
enforcement activities is kept
on file at the City.
un -going
The City staff attends
OCHA's City's Advisory
Committee meetings to keep
up to date on rehabilitation
programs offered by the
County.
On -going
Chapter 20.86 of the Zoning
Code, `Low and Moderate
Income Housing within the
Coastal Zone," establishes
the standards and
requirements to implement
this program.
2.1.1
Maintain rental opportunities by
restricting conversions of rental units
to condominiums unless the vacancy
rate in Newport Beach for rental
housing is an average 5 percent or
higher for four (4) consecutive
quarters, and unless the property
owner complies with condominium
conversion regulations contained in
Chapter 20.83 of the Newport Beach
Municipal Code.
On -going
A vacancy rate survey is
completed every quarter to
monitor consistency with this
policy.
2.1.2
Take all feasible actions, through
On -going
use of development agreements,
expedited development review, and
Planning staff continually
expedited processing of grading,
evaluates all proposed
building and other development
affordable housing projects for
permits, to ensure expedient
potential incentives, including
construction and occupancy for
expedient processing of
projects approved with low- and
permits.
moderate - income housing
requirements.
During the entitlement
process, the Bayview Landing
Senior Affordable Housing
Project was granted a partial
entitlement fee waiver,
expedited permit processing,
and entitlement assistance.
2.1.3
Participate with the County of
On -Going
Orange in the issuance of
tax - exempt mortgage revenue bonds
The issuance of tax - exempt
to facilitate and assist in financing,
mortgage revenue bonds is
development and construction of
project driven. The developer
housing affordable to low and
typically applies for the bonds.
moderate - income households.
The City will encourage the
use of such bonds and inform
affordable housing developers
of their availability.
0
2.1.4
Conduct an annual compliance-
monitoring program for units
required to be occupied by very low -,
low -, and moderate- income
households.
On -Going
The City retains a consulting
firm that provides an annual
compliance monitoring report
for the City's income qualified
units.
2.2.1
Require a proportion of affordable
On -going
housing in new residential
developments or levy an in -lieu fee.
Staff continues to enforce the
The City's goal over the five -year
requirements for affordable
planning period is for an average of
housing and/or the payment of
15 percent of all new housing units
in -lieu fees. In addition, the
to be affordable to very low—, low -,
City has hired a consulting
and moderate - income households.
firm that is in the process of
The City shall either (a) require the
determining an appropriate in-
payment of an in -lieu fee, or
lieu fee. The City is also in
(b) require the preparation of an
the process of drafting an
Affordable Housing Implementation
affordable housing ordinance
Plan (AHIP) that specifies how the
that will implement the
development will meet the City's
requirements of Program
affordable housing goal, depending
2.2.1.
on the following criteria for project
size:
1. Projects of 50 or fewer units
shall have the option of preparing an
AHIP or paying the in -lieu fee.
2. Projects where more than 50
units are proposed shall be required
to prepare an AHIP.
Implementation of this program will
occur in conjunction with City
approval of any residential
discretionary permits or Tentative
Tract Maps. To insure compliance
with the 15 percent affordability
requirements, the City will include
conditions in the approval of
discretionary permits and Tentative
Tract Maps to require ongoing
monitoring of those projects. (Imp
2.1)
lb
2.2.2
The City shall provide more
On -going
assistance for projects that provide a
higher number of affordable units or
The City will provide financial
a greater level of affordability. At
assistance based on a project
least 15 percent of units shall be
by project analysis, depending
affordable when assistance is
on need and overall project
provided from Community
merits.
Development Block Grant funds or
the City's in -lieu housing fund.
The City continues to
participate in this Housing
Program. The Bayview
Landing Senior Affordable
housing project received $1
million dollars from the City's
"in -lieu" housing fund
reserves.
2.2.3
For new developments proposed in
On -going
the Coastal Zone areas of the City,
the City shall follow Government
Staff continues to implement
Code Section 65590 and Title 20.
the provisions of Chapter
20.86 of the Zoning Code
(Low and Moderate Income
Housing within the Coastal
Zone).
2.2.4
All required affordable units shall
On -going
have restrictions to maintain their
affordability for a minimum of 30
Staff continues to include this
years.
affordability restriction as a
standard condition on all
affordable housing projects,
unless an otherwise longer
affordability covenant is
agreed upon.
A comprehensive affordable
housing ordinance is currently
being developed which will
clearly specify all conditions
for incentives, including the
minimum affordability period
of 30 years.
2.2.5
Advise existing landowners and
prospective developers of affordable
housing development opportunities
available within the Banning Ranch,
Airport Area, Newport Center,
Mariners' Mile, West Newport
Highway, and Balboa Peninsula
areas.
On -going
City staff continues to provide
prospective developers with
information on the City's
available land and its
incentive program.
Development of a plan
outlining incentives that
implement General Plan
goals is also part of the City's
General Plan Implementation
Program (Imp 24.1)
2.2.6
Periodically contact known local
On -going
developers and landowners to solicit
new affordable housing construction.
The City Manager's Office and
Community and Economic
Development periodically
discuss the construction of
new affordable housing with
local developers and
landowners.
City staff also introduces the
idea of constructing affordable
housing to developers who
propose large residential
projects and discuss density
bonuses to assist in the
construction of affordable
housing.
2.2.7
Participate in other housing
On -going
assistance programs that assist
production of housing.
City staff attends OCHA
Cities Advisory Committee
meetings to keep up -to -date
with programs that assist in
the production of housing.
Staff will inform developers of
programs that are available to
assist in the production of
housing for all income levels.
p
2.2.8
2.3.1
New
housing for lower income
households that help meet regional
needs shall have priority for the
provision of available and future
resources or services, including
water and sewer supply and
services.
Study housing impacts of proposed
major commercial /industrial projects
during the development review
process. Prior to project approval, a
housing impact assessment shall be
developed by the City with the active
involvement of the developer. Such
assessment shall indicate the
magnitude of jobs to be created by
the project, where housing
opportunities are expected to be
available, and what measures
(public and private) are requisite, if
any, to ensure an adequate supply
of housing for the projected labor
force of the project and for any
restrictions on development due to
the "Charter Section 423" initiative.
On -going
Effective January 1, 2006,
local governments are
required provide a copy of the
Housing Element to water and
sewer service providers. The
City has done this. Pursuant
to state law, water and sewer
providers must grant priority to
developments that include
housing units affordable to
lower income households.
On -going
Staff is monitoring legal
challenges to inclusionary
housing requirements, and will
research the idea of
developing housing impact
fees for all new commercial
and industrial developments
as an additional or alternative
resource for providing
affordable housing.
Staff will monitor all new
planning applications for
applicability.
f'�
3.1.1
rroviae a streamlined °fast
development review process for
Proposed affordable housing
developments.
vvnen a residential develop re
agrees to construct housing for
persons and families of very low,
low and moderate income above
mandated requirements, the City
shall either (1) grant a density
bonus as required by state law, or
(2) provide other incentives of
equivalent financial value.
Review and consider in accordance
with state law, the waiver of
planning and park fees, and
modification of development
standards, (e.g., setbacks, lot
coverage, etc.) at the discretion of
City Council and Planning
Commission for developments
containing very low, low- and
moderate - income housing in
Proportion to the number of low- and
moderate - income units in each
entire project.
The City considers "fast track"
development review
incentives on a project -by-
project basis.
The City's General Plan
Implementation Program
encourages code
amendments and the
development of incentives
that achieve General Plan
goals. (Imp 2. 1, Imp 24.1)
The City considers density
bonuses and other incentives
on a project by project basis.
On -going
Waivers and incentives are
considered by the Planning
Commission and City Council
on a project -by- project basis.
I The City's General Plan
Implementation Program
encourages code amendments
and the development of
incentives that achieve
General Plan goals. (imp 2.1
Imp 24.1)
3.2.1
Identify the following sites as
Pending
adequate, which will be made
available through appropriate
As part of the Housing
zoning and development standards
Element certification process,
and with public services and
the City is working with HCD to
facilities needed to facilitate and
complete an adequate sites
encourage development of a variety
analysis. The analysis will
of housing types to meet City
ensure that sites are available
housing goals as identified pursuant
to help achieve City housing
to Government Code
goals.
Section 65583(b): Banning Ranch,
Airport Area, Newport Center,
Mariners' Mile, and the Balboa
Peninsula areas.
3.2.2
Update Zoning Code to reflect
Pending
housing opportunities provided in
the Land Use Element.
The City is in the process of
updating its zoning code to
reflect new housing
opportunities created by the
General Plan Update.
3.2.3
When requested by property
On -going
owners, the City shall approve
rezoning of developed or vacant
The City continually monitors
property from non - residential to
requests for zone changes of
residential uses when appropriate.
vacant and developed
These rezoned properties shall be
properties from non -
added to the list of sites for
residential to residential and
residential development.
approves when determined to
be compatible and feasible.
When approved, these sites
are mapped for residential
uses on both the zoning
district map and General Plan
Land Use Map.
15
4.1.1
Periodically contact owners of
On -going
affordable units for those
developments listed in Table H12 to
Staff is currently updating
obtain information regarding their
the contact list for affordable
plans for continuing affordability on
units. A survey may be
their properties.
developed and sent out
annually to each contact.
4.1.2
Consult with the property owners
Pending
regarding utilizing CDBG funds and in-
lieu housing funds to maintain
Will be discussed during the
affordable housing opportunities in
AHTF meetings in
those developments listed in
conjunction with Program
Table H12.
2.2.7.
4.1.3
Prepare written communication for
On -going
tenants and other interested parties
about Orange County Housing
Information pamphlets
Authority Section 8 opportunities to
informing prospective
assist tenants and prospective tenants
tenants and landlords about
to acquire additional understanding of
the OCHA Section 8
housing law and related policy issues.
program have been made
available in the public lobby.
In addition, information
about the Section 8 program
has been posted on the City
website.
4.1.4
Investigate availability of federal,
Pending
state, and local programs (including
in -lieu funds) and pursue these
The City will investigate
programs if found feasible, for the
available programs and
preservation of existing low- income
evaluate the feasibility of
housing, especially for preservation of
participating in such
low- income housing that may increase
programs.
to market rates during the next ten
years. A list of these programs,
including sources and funding
amounts, will be identified as part of
this program and maintained on an
on -going basis.
10
4.2.1
Investigate the use of federal funds to
Pending
provide technical and financial
assistance, if necessary, to all eligible
The City will investigate
homeowners and residential rental
available programs and
property owners to rehabilitate
evaluate the feasibility of
existing dwelling units through low-
participating in such
interest loans or potential loans, or
programs.
grants to very low —, low- and
moderate - income, owner - occupants of
residential properties to rehabilitate
existing units.
4.2.2
In accordance with Government Code
On -going
Section 65863.7, require a relocation
impact report as a prerequisite for the
City staff requires special
closure or conversion of an existing
permits for all proposed
mobile home park.
conversions of mobile home
parks. Consistent with state
law, a detailed relocation
impact report is a
requirement for the permit.
4.2.3
Should need arise, consider using a
Pending
portion of its Community Development
Block Grant funds for establishment
Staff will prepare a study to
and implementation of an emergency
analyze whether or not a
home repair program. Energy efficient
need for this program exists.
products shall be required whenever
If it is determined that a
appropriate.
need exists, a program will
be developed.
4.2.4
Participate as a member of the
On -going
Orange County Housing Authority
Advisory Committee and work in
City Staff regularly attends
cooperation with the Orange County
the quarterly meetings of the
Housing Authority to provide Section 8
OCHA Cities Advisory
Rental Housing Assistance to
Committee.
residents of the community. The City
shall, in cooperation with the Housing
In addition, staff continually
Authority, recommend and request
works in cooperation with
use of modified fair market rent limits
the County to provide
to increase number of housing units
Section 8 rental housing
within the City that will be eligible to
assistance to residents.
participate in the program. The
Newport Beach Planning Department
Recently, the City worked
shall prepare and implement a
with the OCHA to help
t�
publicity program to educate and
disseminate information
5.1.1
encourage landlords within the City to
regarding the upcoming
rent their units to Section 8 Certificate
opening of the Section 8
holders and to make very low- income
waiting list.
households aware of availability of the
year 2006 -2007 has been
Section 8 Rental Housing Assistance
A link to the Orange County
Program.
Housing Authority website
has been placed on the City
website to provide
information on the Section 8
program.
4.2.5
Participate in a Joint Powers Authority
Discontinued Indefinitely
and Mercy House.
of Orange County jurisdictions for the
purpose of financing and
Due to potential legal
administering a lease purchase
conflicts, the lease
program for first -time homebuyers.
purchase program has
been discontinued
indefinitely.
t�
5.1.1
Apply for United States Department
On -going
of Urban Development Community
Development Block Grant funds and
The Action Plan for Fiscal
allocate a portion of such funds to
year 2006 -2007 has been
sub - recipients who provide shelter
approved and the City will
and other services for the homeless.
provide funding to the
following organizations to
preserve the supply of
emergency and transitional
housing: Serving People In
Need (SPIN). WISEPIace,
and Mercy House.
The following organization
has been funded to assist
homeless battered women
and children: WISEPIace
t�
5.1.2
Cooperate with the Orange County
Pending
Housing Authority to pursue
establishment of a Senior /Disabled or
The City will conduct an
Limited Income Repair Loan and
analysis of different
Grant Program to underwrite all or
programs and the financial
part of the cost of necessary housing
feasibility or participating in
modifications and repairs.
such programs.
Cooperation with the Orange County
Housing Authority will include
continuing City of Newport Beach
participation in the Orange County
Continuum of Care and continuing to
provide CDBG funding. (Imp 14.3)
5.1.3
Permit, where appropriate,
On -going
development of "granny" units in
single - family areas of the City.
Code Amendment No. 2003-
001 (PA2003 -054) was
approved by City Council on
May 13, 2003 to grant the
Planning Director authority to
approve use permits for
accessory dwelling units.
5.1.4
Consistent with development
On -going
standards in residential and
commercial areas, permit emergency
Emergency shelters and
shelters and transitional housing
transitional housing are
under group housing provisions in its
monitored for compliance
Zoning Code.
with the development
standards regulations
contained in the Zoning
Code.
5.1.5
Work with the City of Santa Ana to
On -going
provide recommendations for the
allocation of HUD Housing
On February 9, 2005, the
Opportunities for Persons with AIDS
City participated in the 2005
( HOPWA) funds within Orange
HOPWA Strategy Meeting
County)
hosted by the City of Santa
Ana, to provide
recommendations for the
allocation of HOPWA funds
for the 2005 program year.
As the most populous city in
Orange County, the City of
Santa Ana receives HOPWA
0
funding from HUD on behalf
of the entire County.
Authorized uses of these
funds include: acquisition,
rehabilitation, conversion, or
lease of facilities to provide
short-term shelter, new
construction, project or
tenant based rental
assistance, short term rent
and utility payments, and
supportive services.
Should the City wish to
partner in the acquisition,
development, or
rehabilitation of affordable
housing for persons with
HIV /AIDS , the City may
request funding at future
HOPWA Strategy meetings.
5.1.6
Maintain a list of "Public and Private
Pending
Resources Available for Housing and
Community Development Activities."
City staff will work to develop
and maintain a list of
resources that are available
for housing and community
development activities
6.1.1
Contract with an appropriate fair
On -going
housing service agency for the
provision of fair housing services for
The City contracts with the
Newport Beach residents. The City
OC Fair Housing Authority
will also work with the fair housing
annually.
service agency to assist with the
periodic update of the Analysis of
The Regional Fair Housing
Impediments to Fair Housing
Impediments Analysis was
document required by HUD. The City
completed in 2000.
will continue to provide pamphlets
containing information related to fair
Pamphlets containing
housing at the Planning Department
information of Fair Housing
counter.
and Dispute Resolution
Services are available at the
public counter.
6.1.2
Support fair housing opportunities by
On -going
using Community Development Block
Grant funds whenever necessary to
For the 2006 -2007 Fiscal
enact federal, state, and City fair
Year, Newport Beach
housing policies.
allocated $13,362 in CDBG
funding to the Fair Housing
Council of Orange County to
assist the City in furthering
fair housing through
education, landlord /tenant
counseling, and legal action
when necessa
7.1.1 As part of its annual General Plan On -going
Review, the City shall report on the
status of all housing programs. The Consistent with State
portion of the Annual Report Housing Element Law, the
discussing Housing Programs is to be City prepares an Annual
distributed to the California Housing Element Progress
Department of Housing and Report for submission to
Community Development in HCD.
accordance with California State Law.
d11
C. MITIGATING GOVERNMENTAL CONSTRAINTS
As part of the City's 2006 General Plan Update, an implementation program was
created to identify a principal set of actions and procedures necessary to carry
out the goals and policies of the General Plan. The plan contains a number of
implementation programs aimed at facilitating the production of a variety of
housing types for all income levels. These programs focus on the removal of
barriers to the production of housing and include code changes to facilitate the
development of affordable housing, development of an affordable housing
ordinance, fee waivers and expedited processing for affordable housing projects,
and other incentives that promote housing development.
A significant part of the recent General Plan update focused identifying areas of
the City where additional housing could be located in order to accommodate the
City's fair share of regional population growth. As a result of the General Plan
Update, opportunities for residential development were created in a number of
the City including Newport Center and the Airport Area. The City is in the process
of updating its zoning code to reflect these changes in the General Plan.
Rezoning of these areas will facilitate the infusion of new housing into these
areas, consistent with the goals of the General Plan Update.
�a