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ADOPT THE 2018 ANNUAL HOUSING ELEMENT PROGRESS REPORT
recommended action
RECOMMENDATION
It is recommended that City Council adopt by motion the 2018 Annual Housing Element Progress Report.
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Summary
Presented for the City Council’s review is the 2018 Annual Housing Element Progress Report (Attachment A). The report provides a status update to the State Department of Housing and Community Development on the City’s efforts to implement its Housing Element and housing funding programs. This report includes a summary of building permit data, affordable housing units pending planning approvals, and implementation of housing funding programs for the previous calendar year. The state monitors these activities to insure the City provides opportunities for the private market to address regional housing needs.
In FY 2017/2018, the City committed $3.6 million to affordable housing projects. This funding will result in preservation of 247 units and 92 new affordable housing units for low-to-moderate income households. The City issued permits for 337 new housing units. Approximately 2 percent (5 units) consisted of low-income housing units. Although construction permits issued for low-income housing units is much lower than last year (164 units), City and County Housing Authority staff attribute the reduced number of low-income housing to the timing of the housing funding cycles and expect significantly more units to be constructed in calendar year 2019. Staff is pleased to report that the five low-income housing units were Accessory Dwelling Units that were approved under new Development Code allowances approved by City Council last year (Ordinance 2018-05-15-15020). The report also identifies 74 very low-income units that are pending planning and building review and approval that are planned for early 2019 construction.
The Progress Report was submitted to the State Department of Housing and Community Development and the Governor’s Office of Planning and Research by April 1, 2019, in compliance with the State’s reporting requirements. This is the second year of reporting annual housing activities to the state departments. In the past, Stockton was not required to prepare and submit annual progress reports, under a charter city exemption in the state law. Effective on January 1, 2018, state regulation obligated charter cities to begin reporting annually to be eligible for participating in housing funding programs. The Annual Progress Report for 2018 is presented to Council to verify the City’s 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.
For clarity, the City is only required under its approved Housing Element to report on activities, provide incentives and opportunity sites for meeting the City’s share of the Regional Housing Needs Assessment target of 11,384 of mixed income level housing units by the year 2023. The City does not have any obligation to construct housing units, as this will occur as a result of the open housing market.
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), 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 1 of each year, covering activities from the previous calendar year.
Historically, Stockton as a charter city was not 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. Stockton submitted its first annual progress report for calendar year 2017.
Present Situation
The City submitted the 2018 Annual Housing Element Progress Report to HCD and OPR by the April 1, 2019 deadline established by HCD (Attachment A). Overall, the City issued building permits for 337 new housing units and performed planning and building reviews for 74 very low income units in the year 2018. Approximately 2 percent of the issued permits were for low income, and consisted of Accessory Dwelling Units. Accessory Dwelling Units under the Stockton Municipal Code (SMC) Chapter 16.240 definition are “An attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as a single-family dwelling unit is situated; further accessory dwelling units are as defined in California Government Code <http://qcode.us/codes/othercode.php?state=ca&code=gov> Section 65852.2.” The remaining balance of units constructed 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.
• In 2018, the City issued a Notice of Funding Availability (NOFA) for approximately $2.148 million allocated towards affordable housing units, and $435,000 for permanent housing for the homeless.
• $435,000 to Central Valley Low Income Housing Corporation (CVLIHC), Housing Authority of County of San Joaquin (Housing Authority), and Stocktonians Taking Action to Neutralize Drugs (S.T.A.N.D.) for the Partnership in Housing for the Homeless project. In 2017, the City committed $300,000 of Community Development Block Grant (CDBG) funds to this project, the City’s total investment in this project is $735,000;
• $450,000 to Domus Development for the Casa Manana Inn project;
• $1,000,000 to Housing Authority of San Joaquin County for the Sierra Vista Apartments, Phase III project.
• Council approved an additional $900,000 to the Housing Authority of San Joaquin of San Joaquin to pay for predevelopment and development costs associated with the 115-unit affordable housing project Sierra Vista Apartments, Phase II. The City’s total investment in the Sierra Vista Apartments, Phase II will be $2,100,000 of HOME Investment Partnerships Program (HOME) and Low to Moderate Income Housing Fund (LMIHF) funds for predevelopment and development costs associated with this project to provide permanent housing for low-income households. Construction is expected to begin in 2019.
• 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.
• Completed 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.
• Began construction of the 34-unit Medici Artist Loft project, which received $2.9 million in HOME Investment Partnership Program, Successor Agency Repayment, Community Development Block Grant through the City’s 2016 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 1 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 - 2018 Annual Housing Element Progress Report