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ADOPT THE 2021 GENERAL PLAN AND HOUSING ELEMENT ANNUAL PROGRESS REPORTS AND AUTHORIZE THE CITY MANAGER TO SUBMIT REPORTS TO THE STATE HOUSING DEPARTMENTS
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RECOMMENDATION
It is recommended that City Council adopt by motion the 2021 Annual Progress Reports (APRs) for the Envision Stockton 2040 General Plan and the 2015-2023 Housing Element and authorize the City Manager to submit 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 following are highlighted actions in the 2021 APR:
• The City issued building permits for 888 new housing units, including 86 very-low-income units, 102 low-income units, 6 moderate-income units, and 694 above moderate-income units.
• Council approved series 1 and 2 inconsistency updates to implement General Plan goals and policies, including an increase in housing capacity and production, funded in part with a Senate Bill (SB2) grant.
• Issued an RFP for the Housing Element and Housing Action Plan, funded in part by Local Early Action Planning (LEAP), with a targeted completion in 2023.
• Awarded Regional Early Action Planning (REAP) grant money to assist with neighborhood planning to increase housing production, in addition to technology upgrades for streamlining of development applications, with a targeted completion in 2023.
• Initiated the Development Code overhaul, including updated design standards, particularly for housing types.
Following Council’s acceptance, the 2021 APR reports will be submitted to HCD and OPR by April 1, 2022, in compliance with State Law.
Background
California State Law (Government Code Section 65400) requires cities to provide an Annual Progress Report (APR) that includes progress status on implementation of the General Plan and the Housing Element for the prior calendar year - 2021. 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 its seven member cities and the County through an elaborate technical process involving demographers and planners, and community outreach. Each city and county then designate land 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 are zoned to accommodate the 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 the completed ongoing and future actions for the 2040 General Plan and Housing Element.
2040 General Plan
The 2021 APR is the third annual progress report for the 2040 General Plan. These efforts are further detailed in Attachment A. Below is a summary of completed and ongoing actions.
Completed
• The City issued an RFP to prepare the 6th Cycle Housing Element and a Housing Action Plan funded in part with a State Local Early Action Planning (LEAP) grant. These efforts will facilitate compliance with the City’s Regional Housing Needs Allocation (RHNA) and accelerate housing production.
• The City continued preparing the third of three phases of incremental amendments to Stockton Municipal Code Title 16 (Development Code) 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 third phase of the code amendments and series 3 Zoning Map amendments were presented in a study session on September 9, 2021 and the Planning Commission voted to recommend City Council approval on January 27, 2022.
On-Going
• The series 3 Zoning Map and Phase 3 code amendments will be presented to City Council in spring 2022.
• An update to Master Infrastructure Plans and associated development (impact) fees is underway.
• The Development Code Overhaul effort has kicked off and will begin public outreach in 2022. This effort will significantly update Title 16 of the Stockton Municipal Code (SMC) (Development Code).
2015-2023 Housing Element
The 2021 APR is the fifth annual progress report for the 2015-2023 Housing Element. These efforts are further detailed in Attachment B. Below is a summary of completed and ongoing actions for the 2022 calendar year.
Completed
• In 2021, the City issued building permits for 888 new housing units, including 86 very-low-income units, 102 low-income units, six moderate-income units, and 694 above moderate-income units.
• The City continued to encourage Accessory Dwelling Units (ADUs) to implement policy updates adopted in 2020, with the Building Division issuing certificates of occupancy for 33 move-in-ready ADUs in 2021.
• 2020 APR reports completed and submitted to the State.
• Issued a Notice of Funding Availability (NOFA) for $1.7 million in Affordable Housing funding, $3.4 million in Community Development Block Grant (CDBG) funding, and $290,000 in Emergency Solutions Grant (ESG) funding for a combined $5.39 million in funding.
• Authorized the allocation of $6,050,000 of American Rescue Plan Act of 2021 (ARPA) funding to match the Housing Authority of San Joaquin County’s (HASJC) application for Home Key funding.
• Launched the Emergency Rental Assistance Program (ERAP), disbursing over $35 million on behalf of eligible households for past due rent and utility bills, as well as prospective rent.
• Submitted an application for $3,053,944 in Homeless Housing, Assistance and Prevention (HHAP) Round 2 funding for community-based organizations for homeless housing programs and prevention.
• Approved loans for nine (9) affordable housing developments with over $8 million in HOME Investment Partnership funds
On-Going
• City staff anticipates the Housing Action Plan ("Plan") to kick off in spring 2022. This Plan will outline City's goal, priority areas, and resources to encourage increased housing production and supportive housing options (e.g., shelters, transitional). Additional supportive plans will include a Displacement study.
• Administration of planning grant funds:
o SB2 planning grant issued by State.
o LEAP planning grant to be published by State.
o REAP SJCOG administers funding.
• 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.
• Examine pro-housing policies aimed at increasing housing production.
From 2015 to 2021, the City has averaged approximately 523 new housing units per year, totaling 3,330 units for six years of the eight-year timeframe. Based on this average, it is unlikely that the City will achieve 8,494 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 encouraged 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 outlined 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 - 2021 General Plan APR
Attachment B - 2021 Housing Element APR