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ADOPT THE 2020 GENERAL PLAN AND HOUSING ELEMENT ANNUAL PROGRESS REPORTS AND AUTHORIZE STAFF TO SEND THE REPORTS TO THE STATE
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RECOMMENDATION
It is recommended that City Council adopt by motion the 2020 Annual Progress Reports (APRs) for the Envision Stockton 2040 General Plan and the 2015-2023 Housing Element and authorize Staff to send the reports to the State of California Department of Housing and Community Development (HCD) and the Office of Planning and Research (OPR) as required by State Law.
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Summary
State Law requires cities that adopt General Plans and Housing Elements to prepare an Annual Progress Report (APR) that identifies the implementation status for the prior calendar year. The APR must be presented to the City Council before submittal to the State of California Department of Housing and Community Development (HCD) and the Office of Planning and Research (OPR) by April 1 of each calendar year.
The 2020 APR summarizes the following actions:
• The City issued building permits for 469 new housing units, inclusive of 36 very-low-income units, 27 low-income units, 14 moderate-income units, and 392 above moderate-income units.
• Numerous Zoning Map and Code amendments were completed to support development of Accessory Dwelling Units (ADUs), increase the Density Bonus allowance for affordable housing units, and lessen parking requirements to encourage housing production.
• Submitted applications for approximately one million dollars for state funds (SB2, LEAP) to assist with housing production.
Following Council’s acceptance, the 2020 APR reports will be submitted to HCD and OPR by April 1, 2021, in compliance with State Law.
Background
California State Law (Government Code Section 65400) requires cities to provide an Annual Progress Report (APR) that provides progress status on implementation of the General Plan and the Housing Element for the prior calendar year 2020. The APR must be presented to the City Council before submittal to the State of California Department of Housing and Community Development (HCD) and the Office of Planning and Research (OPR) by April 1 of each calendar year.
On December 4, 2018, the City Council adopted the Envision Stockton 2040 General Plan (hereafter "2040 General Plan"). The 2040 General Plan is the official long-range policy document for the City of Stockton and is the basis for local government decision-making to achieve the community's overall vision. Various City departments are responsible for implementing these actions throughout the 20-year timeframe established by the General Plan.
In April 2016, the City Council adopted the 2015-2023 Housing Element (hereafter "Housing Element”), which contains policies and programs that enable the City to anticipate and plan for the housing needs of all socioeconomic segments of the community. Tied to the process of updating the Housing Element is the Regional Housing Needs Allocation (“RHNA”). The RHNA is mandated by State Housing Law and quantifies the need for housing within the city during the specified planning cycle.
Using forecasts of growth in population and households, the RHNA is intended to project the future increase in housing stock, or capacity, needed for the region. Locally, the regional San Joaquin Council of Governments (SJCOG) distributes the RHNA “fair share” calculations for each of its seven member cities and the County through an elaborate technical process involving demographers, planners, and community outreach. Each city and county then designates lands that are available for constructing the assigned portion of the regional allocation as part of its Housing Element.
For the 2015-2023 planning cycle, Stockton’s RHNA allocation must anticipate and plan for 11,824 residential units. A portion of the allocation is required to be set aside for affordable housing units, including low, moderate and above-moderate residential units. While the City is not responsible for building residential units, it must document which areas of the City are zoned to accommodate construction of its assigned RHNA allocation. Advancement towards the RHNA is assessed each year of the eight-year planning cycle, with the APRs highlighting progress made each calendar year.
As a charter city, Stockton was exempt from submitting annual progress reports in the past. Effective January 1, 2018, state law obligated charter cities to begin reporting annually to be eligible for participation in housing funding programs.
Current Situation
The sections below identify completed on-going and future actions for the 2040 General Plan and Housing Element.
2040 General Plan
The 2020 APR is the second annual progress report for the 2040 General Plan. These efforts are further detailed in Attachment A. Below is a summary of completed and on-going actions.
Completed
• The City Council passed an Urban Agriculture Ordinance ("Urban Ag") to encourage agricultural use on infill properties.
• The City Council and San Joaquin County Local Agency Formation Commission (LAFCO) approved the updated Sphere of Influence/Municipal Service Review (SOI/MSR) Report. The SOI is the physical boundary and service area that the City is expected to serve. The purpose of the MSR is to provide a comprehensive inventory and analysis of the services provided by local municipalities, service areas, and special districts. LAFCO approved an interim SOI/MSR to allow projects with annexation requests to proceed until a new SOI/MSR can be adopted, reflecting the 2040 General Plan.
• The City applied to the State Department of Housing and Community Development (HCD) for Senate Bill 2 (SB2) and Local Early Action Planning (LEAP) Grants, intended to assist with prioritization of planning activities. These grants will be applied to City efforts that facilitate compliance with the RHNA and accelerate housing production. While the State accepted the SB2 grant application for fund distribution, the LEAP application is currently under review.
• In 2020, the City began amending Title 16 (Development Code) in phases and conducted citywide public workshops to present Zoning Map amendments to fix zoning inconsistencies. The need to fix inconsistencies was prompted by changes to state law, the need for internal consistency with the General Plan vision, and streamlining efforts for priority issues (i.e., housing, social equity, downtown development). The first and second phases of the code amendments were approved by the City Council and the City Council reviewed the first series of map amendments (Rezones) on March 9, 2021.
• In compliance with State Law, the City has prepared a list of available City-owned properties for development.
On-Going
• On March 9, 2021 the series-1 map amendments were presented to City Council, while the series 2 and 3 map amendments and phase-3 code amendments are scheduled for approval by fall 2021. The first series began with straightforward zoning map changes, and will be followed by the second series, requiring additional analysis and outreach. The third series will wrap up the zoning map amendments requiring additional analysis and outreach, paired with Title 16 Development Code text updates.
• An update to the Master Facilities Plan and associate development fees is currently underway. As part of the Capital Improvement Program (CIP) that relies almost exclusively on non-General Fund sources to fund projects, the plan involves maintenance, improvements, and expansion of the City's infrastructure.
• A Development Code Overhaul effort will begin in 2021. This effort will make significant updates to Title 16 of the Stockton Municipal Code (Development Code). In 2004, the City consolidated its zoning and development ordinances into one Development Code for increased clarity and readability. Since 2004 there have been several significant updates. The current overhaul is needed to improve readability and comply with State Law.
2015-2023 Housing Element
The 2020 APR is the fourth annual progress report for the 2015-2023 Housing Element. These efforts are further detailed in Attachment B. Below is a summary of completed and on-going actions that will continue for the 2021 calendar year.
Completed
• In 2020, the City issued building permits for 469 new housing units in the following income categories:
o 36 very-low-income units, 27 low-income units, 14 moderate-income units, and 392 above moderate-income units.
• The City amended Accessory Dwelling Units (ADUs) standards, widening the range of housing types to increase the housing supply, including:
o Eliminate parking requirements, eased setback requirements, simplified review process.
o Waived City of Stockton Public Facility Fees, reducing fees by approximately $20,000.
o Allowed Junior Accessory Dwelling Units (JADUs) in addition to ADUs.
o Offered free standardized building plans for ADUs to streamline the approval process and decrease project costs.
• 2019 APR reports completed and submitted to the State.
• Amendments to the Development Code to:
o Eliminate off-street parking requirements within ¼ mile of the Robert J. Cabral ACE Station, decreasing the cost of developing transit-oriented housing.
o Allowed Density Bonuses of up to 100%, providing an increase in allowed dwelling units, meaning that more housing units can be built.
o New "By-Right" parking reductions for affordable and senior housing projects, bolstering efforts to make affordable housing projects more feasible to finance and develop.
o Allowed Co-Living facilities as a permanent housing type, offering opportunities for a variety of more affordable housing types to accommodate a diverse income mix.
• Completed the first phase of study for fee deferral program for affordable housing projects.
• Issued a Notice of Funding Availability (NOFA) for $8 million in Affordable Housing funding and $3 million in Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and Emergency Solutions Grant CARES Act funding, for a combined $11 million in funding.
• Received nearly $4.3 million in Homekey awards funding for the acquisition, rehabilitation, and on-going operation of a permanent supportive housing project.
• Launched an Essential Support Program, with 1,420 individuals receiving over $1.5 million in support in just two months during COVID-19.
• Launched the Community Support Fund NOFA with $3.7 million to organizations providing programs and services to the homeless and to prevent homelessness.
• Launched the Rental & Mortgage Assistance Program with nearly $5 million provided to 1,280 Stockton households in an effort to prevent homelessness.
• Approved $6,460,265 in Homeless Housing, Assistance and Prevention (HHAP) funding for community-based organizations for homeless housing programs and prevention.
On-Going
• A Housing Gap and Fee analysis is currently underway. This housing analysis will examine Stockton's current housing market and whether an Inclusionary Housing Fee can be supported under current market conditions. The most common alternative would be to implement a fee in lieu of on-site production. In lieu-fees are generally paid into a housing trust fund and used to finance affordable housing developed off site.
• City staff anticipates the Strategic Housing Plan ("Plan") to begin by summer 2021. This Plan will outline City's goal, priority areas, and resources to encourage increased housing production and supportive housing options (e.g., shelters, transitional).
• Funding for Emergency and Affordable Housing Planning
o SB2 planning grant issued by State.
o LEAP planning grant to be issued by State.
o Possible REAP funding through SJCOG.
• HUD Action Plan to Council.
• Issue annual Affordable Housing Loan Program NOFA.
• Issue Community Grants NOFA for CDBG and ESG funds.
• Continue to work collaboratively with the Continuum of Care and San Joaquin County.
• Implementation of the 2020 Homelessness Strategic Plan.
• The City will apply to the State for more than $3 million in Homeless Housing, Assistance, and Prevention funding (HHAP) in 2021.
• Explore a possible Housing Trust Fund, feasibility study on Housing Index Fund, and Displacement study.
• Examine pro-housing policies aimed at increasing housing production.
From 2015 to 2020, the City has averaged approximately 408 new housing units per year, totaling 2,446 units for six years of the eight-year timeframe. Based on this average, it is unlikely that the City will achieve 9,378 new housing units within the next two years to equal the 11,824 mixed-income RHNA allocation by the 2023 calendar year. While the City has made efforts to encourage housing production, private investment and current market conditions are the primary sources for new housing construction. The City does not have any obligation to construct housing units but must maintain the housing capacity outline by the RHNA allocation.
As shown above, the City continues to build upon the policies and actions established by the 2040 General Plan and 2015-2023 Housing Element to encourage increased housing production.
FINANCIAL SUMMARY
This report summarizes past and existing actions and will not have a fiscal impact on the City's Budget.
Attachment A - 2020 Annual Progress Report (APR) for the 2040 General Plan
Attachment B - 2020 Annual Progress Report (APR) for the 2015-2023 Housing Element