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ADOPT THE 2017 ANNUAL HOUSING ELEMENT PROGRESS REPORT
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RECOMMENDATION
It is recommended that City Council adopt by motion the 2017 Annual Housing Element Progress Report.
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Summary
Presented for the City Council’s review is the 2017 Annual Housing Element Progress Report (Attachment A). Overall, the City permitted 386 new housing units and 54 rehabilitated affordable housing units in 2017. Approximately 50 percent of this unit total (218 units) consisted of very low and low-income housing units. This is beneficial since these income levels represent the greatest housing need in the City’s overall Regional Housing Needs Allocation. The Progress Report was submitted to the State Department of Housing and Community Development and the Governor’s Office of Planning and Research by June 15, 2018, in conformance with the State’s reporting requirements. In the past, Stockton was not required to prepare and submit annual progress reports to the state, under a charter city exemption in the state law. Under new state regulation (effective January 1, 2018), charter cities are obligated to prepare annual progress reports to be eligible for housing funds. The Annual Progress Report is being presented to Council to verify the City’s progress on its implementation of housing programs and the resulting housing unit data as required by State law (Government Code Section 65400) and in accordance with the City’s administrative responsibility for the Housing Element.
DISCUSSION
Background
On April 12, 2016, City Council adopted (Resolution 2016-04-12-1601) the City of Stockton 2015-2023 Housing Element and submitted it to the State Department of Housing and Community Development (HCD) for certification. The Housing Element is the primary chapter of the General Plan that focuses on the City’s housing needs and its share of the greater regional housing needs for San Joaquin County. The Housing Element contains policies and programs to increase the City’s housing stock and assist with the development of affordable housing for households of all income levels.
Under State law (Government Code Section 65400(b)), cities and counties are required to prepare an annual report each year detailing the progress made during the prior year in meeting its Housing Element goals. This report is to be submitted annually to HCD and to the Governor’s Office of
Planning and Research (OPR) by April 15, or not later than June 15 under a time extension allowance by HCD.
Stockton, being a charter city, has not historically been required to prepare annual reports, under a state law exemption. However, the Governor approved two housing bills, Assembly Bill 879 and Senate Bill 35 on September 29, 2017, (effective on January 1, 2018) that collectively obligate charter cities to prepare and submit an annual progress report beginning with the 2017 calendar year report. These reporting requirements are tied to the application and eligibility for participating in housing funding programs.
Present Situation
The City submitted the 2017 Annual Housing Element Progress Report to HCD and OPR by the June 15, 2018 time extension allowed by HCD (Attachment A). Overall the City issued permits for 386 new housing units and 54 rehabilitated affordable housing units in the year 2017. Of this total, 218 housing units consisted of very low and low income (deed-restricted) and the remaining balance consisted of moderate and above-moderate-income housing units. Under the Housing Element requirements, the City needs to identify sufficient sites for and encourage the production of 11,384 housing units by the year 2023.
The City implemented a wide variety of policies and programs over the years to address the challenge of providing affordable housing. These include:
• Rehabilitation of existing housing;
• Affordable housing construction and preservation;
• Infrastructure development;
• Accessible housing;
• First-time homebuyer programs;
The following summarizes the City’s major successes in program implementation to facilitate affordable housing development. More detailed information on the City’s implementation programs can be found in Table C of the Report.
• Issued a Notice of Funding Availability (NOFA) for approximately $1.2 million allocated towards affordable housing units, and $300,000 for permanent housing for the homeless. Four projects were awarded funding:
o $300,000 in Community Development Block Grant (CDBG) funds to Stockton Shelter for the Homeless, Housing Authority of the County of San Joaquin (HACSJ), and S.T.A.N.D. for the Partnership in Housing for the Homeless project, where the HACSJ has allocated $1.4 million for project-based vouchers over 15 years, and the City allocated $300,000 for the down payment of a minimum of 8 units;
o $60,000 in HOME funds to Habitat for Humanity for the home ownership Dream Creek Finalization project, to include new construction of single-family homes;
o $100,000 in HOME/Low and Moderate-Income Housing (LMIHF) funds to LINC Housing Corporation for the Pacific Villas project, to include 86 rehabilitated multi-family units;
o $1,200,000 in HOME/LMIHF to HACSJ for the 100-unit multi-family Sierra Vista Apartments, Phase II project, to include demolition of 63 units to be reconstructed, 36 of which will be Article XXXIV units.
• Continue providing CDBG grants for accessibility modifications to low- and very low-income City residents through the Disability Resource Agency for Independent Living (DRAIL).
• Continue providing low-interest CDBG loans and grants for emergency repairs and homeowner rehabilitation for low to moderate income City residents.
• Continue to offer low-interest CDBG/HOME loans to residents through the Downpayment Assistance Program for first time home buyers.
• Began construction of the 51-unit Anchor Village project, which received $1.2 million in Successor Agency Bond Proceeds through the City’s 2015 Affordable Housing NOFA.
Staff anticipates the preparation of an annual progress report and presentation to Council will become a routine annual process to meet the state’s April 15 reporting obligation. This will allow for better evaluation of the City’s progress in meeting the goals and implementation measures contained in the Housing Element and ensure the City remains eligible for participating in housing funding programs.
FINANCIAL SUMMARY
There is no financial impact associated with accepting this item.
Attachment A - 2017 Annual Housing Element Progress Report